Avoiding the mistakes all "beginners' make!

[Jmerrick]

Consistent Trading for Beginners

Hi Everyone,

My name is James and I'd like to share my experience of Forex trading. I've been in the markets for approximately 3 years. Firstly just messing around with Binary Options and then deciding that Forex was where the real traders played!

I spent a lot of time chart watching and playing around with indicators. Even making my own indicator!! But the biggest problem I faced was 'lack of consistency' and 'over-trading'. Sometimes I'd win for a month, then have a break-even month the following.

Nor did I have a clue about money/risk management! Which led me to research what the most consistent 'set up's were in currency trading. I read an article about Price Action, it highlighted that the market repeated itself time and time again at all the levels it reached as price was traded. So being able to react to certain patterns would provide you with the basis to build consistency.

I then started to strip ALL the indicators from my chart and began applying the PA strategy I learned. The one thing that I noticed is that immediately "set-ups" became more scarce!! Compared to what would have been flagged by indicators! I kinda had an "aha" moment and realised that "indicators" are made to just keep us in the market!!

I recently watched at great You Tube video by Anton Kreil (

) Which pretty much affirmed my thoughts that we're all just being set up exactly where Brokers, Banks ect want us to be!!

So with a bit more research I found an FCA Licensed pro trader and was able to view the trades that he took. This highlighted a massive difference between how a licensed professional traded on the FX market and how retail traders (me and you) traded!

So without completely boring you all to death I am going to create this thread to show the patterns in which I now trade. I'm going to create a small account with £250 and show how a consistent PA strategy and the mentoring of Pro Trader can produce a "Long-Term" successful trading plan.

Thanks for taking the time to read my thread. I'd love people to engage and discuss their problems, successes and general trading experiences. I truly believe I have a potential to share my position with new traders and other traders.

James Merrick

 

[foroom lluzers]

Welcome

We are ready to learn and be influenced by you.

 

[Jmerrick]

Welcome

We are ready to learn and be influenced by you.

Hi Foroom,

Thanks for being the first to post on my thread! Later I will post the PA Break Out strategy that I trade.

It has great consistency and with the mentoring I follow from a Licensed Pro Trader, long term I'll be a profitable trader.

One thing people understand is what the word 'patience' means, but application of patience in relation to execution of trades is completely different. I'm happy net 10-20 Pips a day. That's enough to be in and out of the market, avoiding exposure during these unstable times.

I look forward to you following me on my journey. If I can help you become a consistent and profitable trader I'll feel very happy.

Best regards

James

 

[foroom lluzers]

Hi Foroom,

Thanks for being the first to post on my thread! Later I will post the PA Break Out strategy that I trade.

It has great consistency and with the mentoring I follow from a Licensed Pro Trader, long term I'll be a profitable trader.

One thing people understand is what the word 'patience' means, but application of patience in relation to execution of trades is completely different. I'm happy net 10-20 Pips a day. That's enough to be in and out of the market, avoiding exposure during these unstable times.

I look forward to you following me on my journey. If I can help you become a consistent and profitable trader I'll feel very happy.

Best regards

James

Thank you very much .

Been looking for it for 30 years.

 

[Jmerrick]

Consistent Break Out Strategy

Hi Everyone,

Here is a live trade from AUDUSD

You can see that price formed a two bar reversal at support.

Price then breaks support with a strong bull move. Entry was upon retrace back to support zone.

A swift 10 pip move trading with the trend!

Patience is the key! This might be the only trade I place today. But if you understand that just a 6% Monthly ROI on a £1000 account, would make you a millionaire in 10 years, then that's a pretty good investment from a very minimal starting investment, using a low risk trading strategy and money management.

I will keep posting results and advice that I'm learning from my Mentor, an FCA Licensed Pro Trader. I've found surrounding yourself with success help breed success!

Have a great day

James

 

[Jmerrick]

Winning Break Out Trade

Hi Everyone,

So here is today's second trade completing another 10 Pip Scalp.

This time its a Break out from a two bar reversal, PA rejection to the upside.

Price made a strong bear move (full candle, small shadow). Trade was taken with the Trend.

Entry was at 1.12179 on the retrace to complete a total of 20 pips today. Without over trading or exposing my account to sustained risk.

Trading results Monday 12th June
AUDUSD - WON (10 Pips)
EURUSD - WON (10 Pips)

 

[tomorton]

Attachment didn't show up.

1.1179?

 

[Jmerrick]

Attachment didn't show up.

1.1179?

Sorry my mistake. Entry was 1.12179. Attachment should be there it's showing when I checked.

 

[tomorton]

Cheers.

 

[Dr. Toad]

So here is today's second trade completing another 10 Pip Scalp.

This time its a Break out from a two bar reversal, PA rejection to the upside.

Price made a strong bear move (full candle, small shadow). Trade was taken with the Trend.

Your second trade is quite impressive. Even though you have posted the chart of it, I am still unable to see any trend before your entry. I am also curious as to why your stop loss was set lower than the highest price rejection (high of two or three candles prior to entry). Also...not sure why you entered when you did either since I wouldn't have considered it a breakout before it broke below the chop...somewhere just below the low of the strong bearish bar...even that looks a bit dicey to me though. Guess that is why I don't make money.

 

[foroom lluzers]

Hi Everyone,

So here is today's second trade completing another 10 Pip Scalp.

This time its a Break out from a two bar reversal, PA rejection to the upside.

Price made a strong bear move (full candle, small shadow). Trade was taken with the Trend.

Entry was at 1.12179 on the retrace to complete a total of 20 pips today. Without over trading or exposing my account to sustained risk.

Trading results Monday 12th June
AUDUSD - WON (10 Pips)
EURUSD - WON (10 Pips)

View attachment 240976

These are hindsight results , call some live trades in advance.This exercise is meaningless.

 

[Dr. Toad]

These are hindsight results , call some live trades in advance.This exercise is meaningless.

I am quite certain it is impossible to post this style of trading in advance...even I am not that daft.

 

[tomorton]

Haven't yet seen enough here to understand the set-ups are being lined up for trading.

 

[Jmerrick]

Your second trade is quite impressive. Even though you have posted the chart of it, I am still unable to see any trend before your entry. I am also curious as to why your stop loss was set lower than the highest price rejection (high of two or three candles prior to entry). Also...not sure why you entered when you did either since I wouldn't have considered it a breakout before it broke below the chop...somewhere just below the low of the strong bearish bar...even that looks a bit dicey to me though. Guess that is why I don't make money.

If you look at the PA, the market is consolidating. Price is making LH's indicating a move to the downside. This was confirmed by a large rejection. The break out candle below the entry point indicated a potential bear move. Thus when price retracted back entry was made. Any stop loss can be hit, but here with the strong rejection and breakout it was placed conservatively above price. Limiting losses if the market did swing.

 

[Jmerrick]

These are hindsight results , call some live trades in advance.This exercise is meaningless.

Firstly, I am highlighting a strategy that others could learn and follow. I am not providing a signal service here?

If its meaningless then perhaps you already trade successfully and don't need to comment in a manner that add no benefit to this thread or beginners that might want to learn

 

[Jmerrick]

I am quite certain it is impossible to post this style of trading in advance...even I am not that daft.

Correct, this strategy requires live assessment for the validity of a set up. I could maybe call a potential trade set up, but this is Price Action, the market determines whether or not a trade is entered.

 

[Jmerrick]

Haven't yet seen enough here to understand the set-ups are being lined up for trading.

I will continue to explain how these set ups form and the advice that I am learning from my Mentor.

This is a Price Action strategy, that performs very well if applied correctly. I just hope to give beginners alike the opportunity to learn a method that has been consistent.

Thanks

James

 

[Jmerrick]

USDCHF - 10 Pip win

Hi All,

Firstly I just want to say that I did not take this trade today as I was not trading. However, USDCHF gave us a great example of the Break Out Strategy.

Analysis.

1. Previous price action had given us two 2bar reversals off of the support zone (highlighted by the blue box).

2. At 7:30am (BST) we saw a large bearish breakout candle.

3. The next candle gave us the retraction to the support zone (now resistance)

4. Entry would have been at 0.96905 when price had reached the bottom of the 2 bar reversal candles.

5. This secured a 10 Pip win. You can also see that price dropped further, however previous PA indicated a level that price could have reversed off, so it's safer to limit risk for smaller gains.

 

[tomorton]

I'm not sure I'm seeing what you're describing. Are your times an hour out maybe?

So, anyway, for a new trading day, what would be the ideal set-up?

 

[Jmerrick]

Consistent break out strategy

I'm not sure I'm seeing what you're describing. Are your times an hour out maybe?

So, anyway, for a new trading day, what would be the ideal set-up?

I'm UK based, so yes maybe that is the case depending on your tomezone.

For a trading day I'm looking for two bar reversals at a s/r level. Here I place a zone that covers the shadows of the candles. You can see that in the trades above. Then you must wait for the break out candle to push past this level. By at least 30% of the candle body. If this occurs then I wait to see if the next candle retracts back to the support/Resistance zone, placing a trade entry ideally at the low of the 2 bar reversal.

I avoid trades that are close to previous day Highs/Lows as these levels potentially have stronger resistance. You want price to be able to move in the direction of the established trend. Always trade with the trend!

I'll keep on posting set up/trades for education

Thanks
James