WHAT TO DO THE MOMENT PRICE COMES BACK TO BREAK THE HORIZONTAL LINE

I said something about selling and buying the moment price breaks your horizontal line after spotting a divergence right? And I also said I will tell you what to do the moment the next candle comes back to break the same line against your direction… its simple; just close trade because at that point you are wrong; remember you can easily be wrong just as being right. It is not an essay thing to do especially when it is a negative outcome; I have also been a victim countless times when trades that seemed to be going well in my direction turn against me in less than minutes. I know you will look helpless and confused after a massive profit turns negative but you don’t have to because it is normal when it comes to this business.

But nevertheless, I will show you with few screenshots what happens when price comes back to break your drawn line but before then you just have to understand that the forex market is not static but dynamic. 

The market doesn’t move in a definite pattern; if it does, no one will be losing money while. But because it is dynamic, dynamic in way that it is been manipulated by human beings like you and I, things tends to change inside the market. Intentions are changed too. Yes you saw a divergence and you took all the steps I gave before entry, intentions can be changed from your anticipated direction. These guys (Market Makers) may intend going shot, and you saw a divergence telling you to shot as well but they can change their intentions at the end and decide to go long.

 This happens when they later get more orders from sellers than buyers at that moment; so they will want to make more money clearing the stop losses of all the sellers by changing direction, and so they come back trading against you. At this time, you do not have to wait for them to automatically stop your trade; manually close it at smaller lose the moment it breaks the line and not waiting for them to hit your main stop loss. The truth is that it doesn’t happen all the time… often times, once they break your line, they continue that direction so do not panic because you can still make profit doing this from other successful entries.

Remember that other traders have to be wrong for you to make money; and so if everyone including you and I are doing the same thing, we are going to be stopped by this guys. But you understanding how they work should not let them get to your stop loss before you, close it manually in a smaller loss and wait for another opportunity where every other person will be wrong just for you to be right. 

The truth is; if 60 traders are going long and 40 are going short, no matter where they intended going, they will end up going short just to clear the stop losses of those that went long, this is the only way they (market makers) can make money. So you shouldn’t at any point be among the majority because it won’t work for you guys.

THE 90:90:90 RULE

I am sure some of us have heard of this rule; the 90-90-90 rule. Well in case you have not heard, let me tell you what the meaning is; this means that 90% of traders will lose 90% of their accounts within 90 days. Am sure you reading this have been a victim to this before right? Yes sure you have! This is quite true. But if you are a newbie who is still less than 90days old in the forex business, you can avoid this. 

The only way is to love forex, this is where it all begins because your love for forex will make you spend more time with your chats which will lead to intensive learning and studying. 

You also have to form the habit of learning from other traders’ mistakes and avoiding them, learn the right things they do and also do them. Read books, watch videos. Forex trading is a career job, a business just like you have doctors, lawyers, engineers etc. You cannot say you want to become a good Doctor or Lawyer without studying and eating materials related to your field. These careers are not meant for intellectually lazy people if not you will end up killing people in your clinic and throwing clients into prison. Forex trading is not for lazy people and also it is not for disobedient people. If you are not the type that sits when asked to sit, you will definitely not go far in the forex business because you alone will end up breaking your own rules which will see making bad results in your trades.

To avoid being among the 90% traders who will lose 90% of their trading accounts within 90 days, you must also not be in a haste to make money. Secondly, you must learn, learn, learn, and make sure you learn something new from every single trader you come across. As a newbie, make your trading charts your best friend, eat it, sleep with it and dream it if possible. 

Another powerful secret is “don’t always trade the direction where the majority of traders are going. You know, in Politic they always give the winner to the one with the highest votes but in forex, the winner goes to that single person that sent the opposite direction. If it were possible, before you trade every day, figure out where the majority of traders are going and go just the opposite; with this, you don’t even need to analyze anything.

But nevertheless, the forex market is willing to make you more successful than your mates within the next 2years if only you are ready to keep learning. Don’t be lazy! If you have ever tested poverty, you will see reasons to be hard working. Poverty starts from your bedroom; you cannot be sleeping 8hours every night as if you are competing with the death and expect to be successful in the land of the living. It just can’t happen! No successful man sleeps 8hours at night, even the doctors who will encourage you to sleep 8hours don’t do it.

Wake up and do study your charts and stop waiting for people to feed you with signals. The person giving you signals to make money has just one head as you do; some of you might even be older than them yet you depend on them for signals. I had people who were ready to give me signals anytime I needed but I never asked for any from anyone. The secret to what they know is in learning so I had to sit down to study and now I provide signals. Nobody will give me signal now and I take if I don’t also find reasons to why I should take it.

Wake up and do something! One word is enough for serious minded people.