Take profit exit strategy

4 take profit exit strategies to make you a better trader

Every day, you spend hours looking for the best setups. Analysing the markets, looking for price action patterns, cross-checking fundamental news, drawing support and resistance on the charts.

 

Finally, you find the perfect trade. It’s a beautiful, triple-A setup! At exactly the right time, you enter an order.

 

But what happens when you’re in a trade? Is your work done?

 

Start on the trade

 

Of course not! It has just started! Trade management and exit strategies are an overlooked part of trading, but so important. It’s something my Trade Advisor students and I pay a lot of attention to because I believe it’s even more important than your entry.

 

Exits can make or break your trading strategy.

 

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Forex price action secrets

Price action trading: the untold secrets

I know a lot of traders who try to become profitable using a multitude of indicators (or a combination thereof). Hell, it was my strategy for about a full year when I was starting out trading! It didn’t work for me. While indicators are not inherently bad, there’s a good chance that it didn’t work out for you too. If it did, a lot more than the 10% of traders that are said to be profitable in this business would make a killing, but they don’t.

 

Gradually though, I started to change the way I approached trading and immersed myself in price action trading. By now, price action is my main way of trading and my Trade Advisor students can attest to how effective it is.

 

But… Price action is a whole other beast.

 

Different species. Stands apart from all the other technical analysis tools.

 

And a lot of traders don’t understand how to trade it.

 

It’s understandable though.

 

It’s not an indicator in the traditional sense. You can’t read price action in the unambiguous way you can know if the RSI indicator has crossed the 70 mark. It’s the reason beginning traders flock to indicators you can quantify easily. RSI, MACD, Stochastic, ATR. The list could go on. While these indicators have their use, they’re not something I solely base my trading ideas on. Most of them are lagging and just plain not working as a trading strategy.

 

Believe me, I’ve built trading robots based on about every popular indicator (or combination of indicators) you can find. It’s a trap for beginning traders and every single one of them loses money on it.

 

Indicators money trap
Money trap

 

Instead, learning about price action is the best way to become a profitable trader.

 

And I’m going to tell you the price action secrets that matter. The ones you need to make the best trades. But first, we need some background.

 

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What to do on weekends to improve forex skills

How to improve your forex skills on weekends

I have a confession to make.

 

I’m completely addicted to trading.

 

I just love the charts. Regardless if I’m winning or losing. I love analysing price action, testing strategies and finding trading opportunities.

 

Sounds familiar, you say?

 

It’s not uncommon. We forex traders are a passionate breed. However, after 5 days of trading, the retail forex markets close. Time to relax and spend time with friends and family. But weekends are also the perfect time to sharpen your forex skills! It’s when most of us actually have some time to research, learn and improve.

 

 

The three great essentials to achieve anything worthwhile are, first, hard work; second, stick-to-itiveness; third, common sense.

― Thomas A. Edison

 

 

“But the markets are closed! What is there left to do?”

 

Actually, there’s plenty to do in weekends if you want to sharpen your forex skills! Here are my top 5 tips to improve my forex knowledge in weekends.

 

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Reasons why most traders lose money

5 critical reasons why most traders lose money

“Why do I keep losing money?”

 

This question used to keep me up at night.

 

Have you ever wondered this too? I have, over and over again.

 

Losing traderWhen I was still struggling to become a profitable forex trader, I was desperate for the answer. Not only that, I wanted to identify the various pain points that made forex traders lose money. Find a structured way to tackle them. I wasn’t going to be a losing trader forever, no way. So I started researching.

 

 

Why do traders lose out?

 

The short answer is of course because it’s really hard to be consistently profitable.

 

But why? There are enough traders with a proven track record, so it must be possible. During my search, I’ve identified 5 of the most important reasons why traders lose out. I’m pretty sure that at one point or another, I’ve been through them all. But once I started working on them, I noticed a real turnaround in my trading performance! I couldn’t believe this, it really worked.

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Forex FOMO

Battle Forex FOMO, the fear of missing out

FOMO – Fear Of Missing Out.

(Go straight to the 5-step battle plan)

 

Wikipedia says that FOMO is “a pervasive apprehension that others might be having rewarding experiences from which one is absent”. In other words: the nagging feeling that other traders are making big profits and you’re letting the trading opportunities slip through your fingers. To counter this feeling, you enter trades way too quickly.

 

Afraid to miss the next big move.

 

 

Stanford research has shown that what investors fear the most is not the risk of a loss per se, but the risk that they may do poorly relative to their peers.

 

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forex trading gear

Essential Gear for Forex Traders

Linux, raspberry pi, gadgets; the whole nine yards.

 

I confess. I’m a technology geek.

 

While forex trading is my passion, I’ll be sure to surround myself with all the tech to be as productive as can be. It probably shouldn’t come as a surprise that over the years, many equipment setups have been put to the test: different gear, tools, software and hardware.

 

gear on table

 

The best equipment allows you to focus on what’s important to you: trading. It doesn’t get in the way, and instead helps you to achieve the best work you can. This essential gear makes the life of a forex trader easier.

 

The best equipment to be most productive as a forex trader.

 

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How cognitive biases will affect your trading

More than anything, trading emotions can hurt your account balance.

 

Or, as the famous trader Jack D. Schwager said in Market Wizards:

The key to trading success is emotional discipline. If intelligence were the key, a lot more people would be making money.

 

The wave of trading emotions

Emotions make us enter the markets at the wrong time. Exit at the wrong time. There’s the fear of missing out (FOMO). Emotions probably make us take wrong decisions in between as well. It is the reason we lose out, even when our trading strategy is solid. We are bound to make the wrong errors over and over again, unless we are aware of what’s working against us.

 

Trading cyclus

 

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Best forex sites of 2016

Forex sites of 2016: the shortlist

“So, what kind of forex sites do you visit?”

 

This question got me thinking. My RSS reader has a “Forex” category that is positively bulking out. I mean, next to a list of great forex books, these are the resources I use to learn, share knowledge, read insightful forex analysis and connect with other traders.

 

I’m always on the lookout for the best forex resources. Analysis, price action, fundamental news, forums, automated trading, communities and so on. Unfortunately, I’m often coming across sites that haven’t been updated in recent years or are just not available anymore, so I’ve decided to share my up to date list of the best forex sites of 2016.

 

Of course, this is a quite an opinionated list. It should be! I believe my collection has a bigger focus on personal forex sites with useful insights and less on the bigger news sites or portals with entire editorial teams. Which means it’s more likely you’ll find some sites here that you haven’t come across yet! So without further ado…

 

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Turtle traders rules

A free turtle traders forex expert advisor

Ah, the turtle traders. The legendary experiment.

 

The stuff that makes the hearts of all traders tingle with excitement. No? Well, it makes me excited at least, don’t judge 🙂

 

The Turtle Traders Experiment

 

“We’re going to raise traders just like they raise turtles in Singapore.”

 

Set in the 1980s, Richard Dennis (one of the most successful traders back then) strongly believed that trading could be taught. When he started out his plans to teach a group of 23 people to become great traders, many were sceptical though. This is how it worked: he gathered a small group of traders – the Turtles – and gave them a 2-week training course on a simple trend following system. With these clear instructions, the turtles were given a trading account and had to trade the rules they were taught for one month. After the month, the ones that were successful were given a larger trading account from Richard’s own money to trade.

 

Money

 

Fast-forward 5 years and his turtles had earned an aggregate profit of $175 million. The experiment was an enormous success and showed that given a simple set of rules, anyone could be made a successful trader. Some of the original turtles went on to keep trading under their own accounts and were incredibly successful at it.

 

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sustainable profits trading forex

Is it possible to make sustainable profits trading forex?

Can I make sustainable profits trading forex? Anyone who’s been trading forex for longer than a couple of weeks has asked this question. I certainly have in the beginning of my forex career!

 

How about you?

 

Everyone does.

I enjoy teaching others how to trade forex and how to become profitable in forex. That is the exact reason why I started Smart Forex Learning. Another way that I often try to help people, is on the social Q&A site Quora. If the questions I’m asked there are any indication, people are quite doubtful about forex:

 

I get this question a lot.

 

It usually stems multiple things. People expect quick riches, but without actually putting in the hours. Research has shown that 80% of the day traders quit within the first 2 years. Usually, at a certain point they’ve lost too much money and either quit or (even worse) go shopping for a magical forex trading system.  Then they lose some more. People feel lost.

 

It doesn’t have to be this way.

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