From the Diary of a Forex Tutor
During my many being as a FX TA Tutor many students have the same dream, become financially independent using the Forex Market, but most had different, albeit failed methods of achieving these goals. I don’t stop to be amazed at the high obstruction rate of the aspirant day trader s.
As a Tutor it is incumbent upon me to identify and rectify this for them. To individualise set ups and systems for each trader separately is not a task that would end in my lifespan. We all know that no two persons are alike. I had to develop a “one for all” which of necessity took me back to basics.
These are to know and know the reason for market movement, seen purely from a chartist’s point of view. These are not hard to identify.
There are four “pillars” (pardon inventing the word tower of strength in this context); let’s call these “pillars” that hold up and go this market.
- Action – these are the Bulls and the Bears export and selling making volume
- Volume – Excellent volume emanating from this action in turn provides a price movement
- Price movement will result in one of three directional price moves
- Ranging market
- Upward price go
- Downward price go
Armed with this knowledge we should be able to identify excellent access points, provided we have something to indicate extremities.
Having said all this there is a very certain need for a trader to be able to “read” his charts. If you cannot read a chart; calling a excellent access point will become a hit and miss affair, a small like predicting the weather by looking at the sky, sometimes right but more often than not you’ll miss the boat. Let’s agree that your prediction would be more accurate if you were a trained meteorologist. So it is with charts and signals – they must turn into a certain action- a choice of 2 only STAY OUT –or ENTER. This is only achievable if you are able to turn signals into action.
Over a digit of being as a trader and tutor I have evolved system that gives my students answers to the above four pointers, straightforwardly providing profitable trade entries. It now remains for me to show my students only one valuable lesson, HOW TO READ A CHART.
To complete my Epistle, let me add that I am always aware of news announcement SOME OF WHICH HAVE a tendency to go the Forex market. Dredge up that these bring action etc. etc.
Finally I want to make an excuse for all who do not have success trading the market, the fact is that there are many “not so excellent” systems out there which lure the unsuspecting would be trader into a fake sense of security – these sellers know that most buyers of their product will not have sufficient knowledge to identify a scam.
Simply place, the unsuspecting Aspirant trader does not know that he does not know makes them simple prey.
As a last anecdote let me add that most traders with small capital place their SL to close and see the trade closed and shortly after wards really reach the original profit target he/she set.
Needless to say this has taken some work to provide a Draw Down eliminating access signal.
By: Hans
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