Hi, I am a professional Forex trader and also a Forex educator and mentor. I hear a lot of beginner trader ask me about what is the best technique.
Honestly for myself, I try to put all the odds of trading on my side, so I don’t trade according to one pattern or technique that can be used on different timeframe.
Forex trading, it’s not easy and every detail could effect your trade. If you don’t do things the right way or forget something, a winning trade can become a losing trade.
People try to find the perfect technique with high efficiency close to 100%. It doesn’t exits, I read a report that say that in average professional traders have a efficiency of 60%. That is enough to make a lot of money. There is not only the efficiency that is important, the win versus loss ratio it’s probably more important. Most profitable traders are those who have a high win versus loss ratio. You could have a 40% efficiency, but you have a 3/1 win/lost ratio. What’s that mean.
• You will win 4 out of 10 trades with 300$ each trade. For a total of 1200$ profit
• You will loses 6 out of 10 trades with 100$ each trade. For a total of - 600$.
• You see your in profit of 600$ with a efficiency of 40%
Just below a share a technique that is based on hedging. It’s free and if you want to start trading that is a good technique to start with.
For myself I don’t used hedging, I know I to read the market and take advantage of it. But for beginner there is a lot to learn to get to that point, so that technique can help you start trading and have a good win/lost ratio.
For myself and my student my approach is different than regular technique or pattern.
It’s in 3 steps:
- Identify clear trend on all cross currency pairs (26 pairs)
- Focus on the one whit clear trend and identify a good level of entry
- When the level of entry is reach wait for a pattern to form to confirm the direction.
There is more thing to consider, most trader just used the third step. Trading it’s about putting odds on our side, with our 3 steps we improve the odds a lot.
Enjoy the next video