Since I have been getting a lot of messages as of late asking about how I trade the Aussie I have decided to start a thread. Since to com dolls section does not get much activity I figure this is a good place to bring it to bring in more interest to this section. Before I get started there are some things you should know before hand. Although my way of trading is different than most you will not find a single concept in my trading that is not already on babypips somewhere. I have stolen every concept from one thread or another on this forum. Some concepts have been tweaked to fit my style of trading and other concepts were good straight out of the box. I am not going to steal (at least not trying to) any credit for these concepts and will refer you to the other threads from time to time. There are 2 main threads you will need to know of to understand my trading and the concepts used.
The first is a thread by Nikitafx
Pure Price Action For Dummies.
You will need to know and fully understand (if that is even possible) price action. As That is a foundation of my trading. There are other threads popping up lately on price action that have good stuff on it. However I was a contributor to this thread and I like what the thread has to offer. I do not use everything discussed on the thread but it is golden to understanding my trading style.
The second thread and of equal importance is by ICT (Inner Circle Trader)
What Every New & Or Aspiring Forex Trader... Still Wants To Know
On this thread you will get a great head start on the tools I use as reference in my trading. Again I dont use every concept on this thread in my own trading but consider every concept worth there weight in gold. When these concepts are combined with my style of price action results can be amazing.
I only trade 1 pair the Aussie Dollar (AUD/USD) and I only trade in one direction (short). The purpose of this is to keep my life simple. Instead of going through trying to find trade setups and what pair has the best setup and what direction is the pair going. I prefer to keep it simple and just wait for my set up to come to me and then I take it. Keeps my focus in check and zeroed in. Instead of spread out over a wide range. Just like a sniper. A sniper knows his target and hunts it. Snipers care not for any other target but the one they are after. The rest is just a distraction.
Now before we proceed any further I must warn you. If you intend to follow this it will take extreme discipline and extreme patience. I can say that only shorting any market is a loosing strategy and I can tell you that you WILL loose money. Even though I can show you how to profit off a loosing strategy this is not for the faint at heart. If you are that person then look at another thread or take up knitting (recommended). THIS WILL REQUIRE DISCIPLINE LOTS OF IT.
Now this brings me to the first lesson and most important lesson a trader will ever learn in trading. This concept is risk management. I know you all have herd it so lets move on right? Wrong lets take a step back and revisit this. Especially when going short in bull markets. Again the Aussie has been in a bull market for almost 10 years with only a couple retracements along the way. As I have said already shorting bull markets is suicide unless you have impeccable risk management and extreme patience and discipline. So there are 2 videos I want you to watch from ICT that I feel explain what I would try to get across better that I ever could. You will see me refer you to others threads on here all the time. As I am not a mentor, a teacher, or a signal service. I am a trader. I trade not teach but I will go out of my comfort zone and give the people here what was given to me. If I need to slow down or dive deeper into something then please dont be afraid to ask. You help me I help you. Anyhow enough rambling the to videos I want you to check out first are
Forex Risk Management - YouTube
Handling Losses and Inevitable Drawdowns - YouTube
More to come.