This is probably one of the biggest tips i can give here at Forex Reviews Dot Info. That is the art on reading the Charts, the Meditation of Forex, I am sure you have heard the theories and gone over one of them or two of them and each time you have found difficulty. Heck we all go though this. Did you know that most successful Forex Traders fail for there first 2 to 3 years before they make wealth from this business. Why, you may ask is because they all read the charts wrong for a long period of time. This is key in this business, you cannot and i stress cannot make money in Forex by guessing price movements, the charts say it all always and you can never argue with the market, you can only ever react to it. That is the underlying truth to anything in life really. You can either do it half or partly, put in a small effort and fail numerous times or you can stop and look at yourself in the mirror and take action. Because there is nothing wrong with the Forex market, there is only something wrong with how you are reading it.
To me, this was the hardest step for me as well, we all go through it and we either lose money or we break even. Well, that is what this post is about, how i and you can break through all these fear and doubt barriers and how you too can achieve success every month. It really is not that hard a change but to many it may seem hard.
This I call the “Zen Meditation of Forex Trading”.
Why would I call it that? Well, because Meditation is about focusing the mind and about controlling fear to help see beyond what others can see. This is much the same with a successful Forex Trader. Below are the tips that helped me move to the next level and I hope it will help you also.
- Firstly open up the 1 hour chart on your favorite currency, then change it to 4 hour, then to daily and weekly. Spend time with the Chart, weeks at a time, looking at it getting a feel of the movement. It may seem boring, but this is where the money is.. Look at Candle Formations such as pin bars, where did the market reverse, and why..? What support and resistance areas from the past are respected. Set alarms at certain prices that you feel the market could turn. Do not trade, just watch. Get a feel for it. Then watch some more, let the weeks go by, take time off work, start to look at Forex like a business. Sit and wait some more, relax and watch the Charts, move between the time frames, look at the 5 minute, do you notice the micro supports and resistances, because they are everywhere. Do you want to trade that? Well, it depends, do you want losses..? If you are okay with losses then by all means trade it or instead you could wait for daily resistances and support and then take over 200 to 300 pips from a single trade. So look at the higher time frames, relax and meditate on that some more and assess how much you would like to risk, be aware the higher the time frame the more likely you are right and the more likely on each trade you will make more money..
- Now that you have done that, relax and realize you need to except losses sometimes, they happen, not often, but they do happen. If you can hedge a bad trade, or wait, then keep you cool because that is how the market is.
- No point in getting upset, the market makes money by your fear and your fear alone so look at yourself. Maybe you should risk less and trade off the most highest probability trades only? How you trade is up to you, but for a Zen Master surely it would make sense to only trade at a currencies lowest or highest points on the higher time frame charts.
- Meditate some more on it, spend up to one to two months looking over the charts, ask yourself do you want to make money from this business and if so then look at them some more. When you can see more clearly on the charts, literally trade opportunities will pop up everywhere on all currencies and all time frames.
- Once you feel confident and feel you have done you Chart time, then now is the time to trade.