Trading for Beginners Part 1 - FULL TRADING COURSE TUTORIAL

all right welcome to the video this is trading for beginners or trading for dummies as the thumbnail says and the goal of this video is to get you from struggling or zero profits or complete beginner right through to consistently profitable Trader which means it's a comp like complete and comprehensive program all in itself which means it's going to be a long video but my goal is to get you to consistently profitable Trader after watching this video and that's a bold claim but this is something I've been meaning to put out for years and years now because there is so much crap out there and there's so many Educators and fake gurus and scams trying to take your money and not providing any value in return so I had enough of all of that and I thought I'm just going to give everything away for free to the trading Community once and for all and I'm gonna invite you into my trading office as I walk you through every component you're going to need directionally correct so that you get there as quickly as possible without all the fluff without all the Showmanship and by the end of this program am you are going to be the most confident and competent Trader that you could possibly dream of being so if that sounds good to you I encourage you to bookmark this video put it into your favorites subscribe to the channel if you want to and over the sections of this video I'm going to be covering what your expectation should be what you need in terms of the gear the basics how to read price finding your way around a chart understanding what Forex or trading actually is and how to navigate the markets I'm going to teach you how to read price I'm going to teach you how to identify patterns that happen frequently in the market and then I'm going to teach you how to build systems out of those patterns and then how to go and test those patterns and then how to go and trade them live I'm going to cover everything from Brokers to gear to platforms to price to markets to everything by the end of this video there's not going to be anything that you're going to need other than to go and practice and become better and better so why am I doing this well some of you might know me some of you might not know me some of you might be subscribed to my channel and over the years I've built a phenomenal community in the trading community and the reason for that is through transparency and vulnerability of sharing my own trading insights my money isn't made from education my money comes from investing my portfolio and making my money work for me since the age of 22. I've been investing my money into various Investments buying businesses buying stocks putting it into index funds and ETFs and REITs and speculating and becoming a Trader and basically using my money and putting it to work in a way that allows me to grow it as quickly as possible that provides moving income and in doing so I became completely financially free by the age of 29. now at the age of 29 when I became financially free no one knew who I was and after seeing all the crap out there online about trading I decided to just let everyone watch me trade let everyone see how a real Trader goes about their day if I was going to be doing it anyway I might as well share it with you guys and that's exactly what I did and in doing so over the years I've become recognized as one of the most transparent and generous traders in the trading education space I've become very close friends with some of the best trading prop firm owners in the world some of the most reputable trading psychologists in the world and I've spoken on some of the most respected trading stages across the globe as well I started sharing my trading routine with the trading Community almost 10 years ago now and in this video I want to combine it and compress it all down so that you walk away feeling as if you've got more value from this one video than you have searching the internet for months and months and months maybe even years so why am I giving a completely comprehensive course away for free well here's the truth over the years there's been many scammers set up accounts there's hundreds of fake accounts of me and what they're doing is they're contacting people trying to scam their money and I don't want people to lose their money if you're going to become a good Trader the whole point is that you build wealth and keep money and not blow it and give it away and lose it right you want to build wealth and that's my goal as well so I don't want you to lose your money so how what could be the best move that I could make in order to eliminate those scams well just share my best information so that everyone comes here and then there's no question of what's the real deal and not only that you'll learn so much in this lesson that you won't need to go and give your money and invest with other people because you'll be empowered and you'll be able to do it yourself I've got a much bigger cause to help people and Empower people around their finances and become financially free I believe that when we're free and able to focus on our most meaningful work we become better human beings so my goal is to get that message out to as many people as possible and I hope after you've watched this video you're going to get so much value from it you're going to be feel compelled to share this with everyone you know and help me achieve my goals sound fair all right well if that sounds good we're going to get stuck straight in what I would say is make sure you bookmark the video again second of all get a method of taking notes okay commit to this program this is gonna something you're going to want to take seriously don't treat it as another YouTube video this is going to be your textbook for learning how to trade this is going to be your curriculum this is going to be your qualification so make sure you set up some time aside in your diary to keep coming back and revisiting this thing consistently until you get it all complete okay are you ready let's get stuck in all right so hopefully you've got a method of taking notes now we're going to get stuck in but before we get stuck into all of the technical stuff which I'm going to do in a way that doesn't overwhelm you or confuse you I want to give you some expectations because when you've been clicking on this video before you clicked on this video one of the questions or two the questions in your head was how much do I need to trade how long is it going to take me to learn to trade you know what yeah and some other expectations that are unclear such as what does it involve you know what do I need what am I the Right fit for it so I want to cover some of that stuff off and this is really important because I want to show you um a way to understand how long it's going to take you how to know how much money you're going to need okay and that's really going to be motivating for you because when you see the truth about this stuff you can actually forget about you can forget about it and put it to the side and it will give you the motivation to focus on the actual learning if you're trying to do it in a way where you're really pressurized to make money right now or you're really pressurized to make it work it's going to have an effect on your mental state in fact there was a survey done in Southern India where they tested 56 cities in southern India and they tested the farmers IQs and when there was a drought and there was no no trade and no market and it was all low economy you know the economy wasn't very great their IQ dropped by 30 points and when it raised and it was booming and trade was great their rate their IQ raised by 30 points which means this when you're in a level of poverty okay meaning that you can't quite afford your own personal Comforts your IQ drops now the thing with trading you're going to need to be switched on as you're learning you're going to need to be full Focus as you're learning to trade if you've got something eating away at your animal brain uh telling you oh you can't afford to pay the bills this month then that's not going to be the best position for you to learn to trade but by knowing these numbers is going to either give you the the chance to go wow you know that's I can definitely do this or you're going to go well maybe I'll come back to this later so it's really important you understand this stuff so the first really important thing you want to know is how much money do I need to get to where I need to be in my trading like what's going to make it worth it and the first answer to that is trading is one of the most powerful ways to accelerate your wealth if you can be consistently profitable because the returns that you get on trading as it's high speculation the returns are greater the more you use your skill to grow your money the greater the returns so the question is well if you're going to put it in a bank you know the bank are going to pay you one percent a year if you're lucky probably point two percent at the moment so then it comes down to well do I actually want to trade do I actually want to learn to trade so my first piece of advice is you're going to have to want to trade like you're going to have to have an interest in it you're going to have to really enjoy looking at the markets because if you don't it's probably not going to be worth it for you and the reason I say that is because you can go and get better returns focusing on something you really enjoy and love and then or give your money to someone else to look after the new go and have to learn something that you really don't want to learn to then grow your money right so that's the first consideration is if I put it in a bank I'm going to get nothing if I learn to trade I'm going to get great returns if I can Master this right so that then comes down to do I actually want to learn to trade but the first starting point I like to tell people is think of a figure that you need to cover with your trading returns so it might be your full income you know if you're earning 2 000 2500 5000 a month or whatever that figure might be write that figure down um whatever that might be so you might want to cover your whole income your monthly income which might be two and a half Grand or you might just want to like bring in an additional 500 pounds a month or something like that right so we'll go with that example for now we'll just say 500 it could be dollars pounds whatever and what you're going to do just kind of get some idea of what sort of returns you will get or or how you can start to approximate that figure is we can play around with some figures so all we need to do is take that figure whatever that figure is and next to that I'm going to write two percent four percent six percent okay and all you do is you divide this figure by point zero two or point zero four or point zero six and what that's going to give us is some returns some monthly returns so if I divide 500 by 2 I'm going to get 25 000. if I divide 500 by four percent I'm gonna get twelve thousand five hundred if I divide it by six percent I'm gonna get eight thousand three hundred and thirty three what does that mean what does this figure mean well this is the amount that you would need in your account if you were trading it and getting two percent returns per month based on 500 and he was trading you know 25 Grand a month and he was getting two percent per month that would generate 500 pounds or dollars if he was had a 12 and a half Grand account and you was getting four percent returns consistently per month on average over a long period of time that would you know that would give you 500 a month same goes for six six percent if he was trading 8 333 pounds in your account and you was doing six percent on average over a long period of time that would approximate 500 pounds or dollars per month makes sense so have a play around with some figures and put them against some percentages so that you can start to see ah right okay I don't need millions in my account to generate what I need actually I need this much or this much and I need this percentage return now you're not going to know your percentage return right now on average that I see the best Traders get between two and six percent it varies and I've worked with prop firm owners and prop prop firm seven figure Traders on Prop desks and I've seen them get anything from two percent to six percent and yes there's going to be times where you're getting 10 you might even get a 20 month but the the point is this you need to focus on returns over a long period of time and I'll talk about that later on in the program now the other thing to pay attention to here is there's going to be other influences like inflation like your lifestyle costs you know your performance all this kind of stuff getting better as a Trader so it's a good place to start but you're also going to want to factor in you're going to want to leave some money in the trading account so that you can grow it and have that uh compounding interest in the account as well right so there's a few other factors that will play into this but this is a great place to start if you're a beginner to visualize how much you'll need to generate a certain return and really the purpose of this exercise is linking the relationship between the two now this brings me on to the next point which is time how long will it take me to learn to trade now I can tell you this usually it takes between 12 and 18 months to become consistently profitable as a Trader that's what I've seen working with thousands of Traders over you know many many years and I've seen that be the the common kind of Sweet Spot does that mean it's going to take you that long to learn how to trade no it can take six months to really learn this and master it in your mind it can take a little bit less or it might take a little bit longer but six months to learn and then why does it why does it take 18 months to become consistently profitable well here's why imagine this line here is 18 months okay and about here is 12 months and this is not months right in this period here naught to six you might learn okay in this period here you're going to want to go out and do some demo trading and what we call paper trading so once you've learned you're going to want to go and put open a demo account which I'm going to show you how to do and you're going to want to be doing some testing okay or some demo trading and then the reason this period is here is because this totals 12 months now why do we give a 12 month period there well the thing is this when we're looking at the profits that we want to return we want to know certain in our mind that we're we're capable of generating those returns right so it's best to take an average 12-month period of your trading performance before you commit to going well I'm gonna give up my weekend job or I'm gonna you know give up my job entirely you're going to want to give it a 12 month period of trading how you've learned how to trade to prove to yourself that you can actually demonstrate those returns over at 12-month period And the reason a 12-month period is good is because you can see all the different seasons all the different holidays the different news events the different inconsistencies within the trading year and then you can take the average performance over a 12-month period and say right I can confidently generate 500 pounds per month based on this return and this is my performance and you have Supreme confidence to go into the following year with a live account so six months to learn 12 months 6 to 12 months to do some real testing tweaking going live and then 18 months to really kind of fine tune and get the confidence to become a consistently profitable Trader and remember you're learning a skill like anything if you want to learn the guitar or the piano or learn to play golf it's going to take a bit of a bit of time and this is another reason why you actually have to have an interest in this and you have to want to make this work because when you think about it the payoff in such a short period of time I mean even if it took you three years that is a blip in your life right as to what this can do to to transform your life to get you to your financial goals so I hope that makes sense the next thing I want to touch on is this a lot of Traders they overestimate what's achievable in a very short period of time so I've just told you six months 12 months you'll be able to trade you know 18 months you'll really start to nail it well that's not a long time but a lot of Traders because of the way it's advertised out there and because of these idiots out there telling you it's easy and and they're like telling you that anyone can do it well in your mind you're thinking well you know this should take a week I could look I could go on a two-day trading course which people are selling right and learn to trade in two days well that's rubbish but what happens is they have this unrealistic expectation and they overestimate what's achievable in a very short period of time and then when they come on you know and work with me or like you know they get the truth they go oh this is a bit harder than I thought and then they underestimate what's achievable in a you know three to five year period which is you know magical really for how it can transform your life so I don't want you to be overestimating I don't want you to be underestimating I just want you to commit to this process and I promise you that if you apply what you learn in here between you know in the next 12 to 18 months your life is gonna look a lot different when it comes to managing your finances all right the next thing I want to touch on is consistency so if you want to be a consistently profitable Trader the first thing you need to master is being consistent in your trading okay sounds obvious but a lot of people neglect that and they're all over the place jumping from system to system or doing it at different times different time frames and they're not consistent think of about this when can you consistently dedicate your time to learning to trade and dedicate your time to trading is there an hour slot on a Monday morning is there an hour slot on a Saturday is it can you do all Saturday is there three hour slot on a Sunday what you don't want to do is start as you know you want to start as you want me to go on so what you don't want to do is start trying to do it when you're about to go into a meeting or kids got to do the school run take the bins out or whatever it might be right and you're kind of half in half out you want to allocate blocks of time into your diary so pull up your diary and say right I can do Monday between eight and nine I can do Thursday 10 P.M to 11 p.m and I could do a couple of hours on a Sunday and maybe a Saturday afternoon or something like that and once you've got these times blocked into your calendar make that your time even if you're just learning at this stage not just looking at trades or taking trades actually learning how to trade as well because if you can start with that then you can just base everything off of that and when we go forward you can build a trading system that works around that that trading time because if you try and do it outside of those times it's going to make it hard for you think about if you're trying to lose weight and you know you didn't really like running and you didn't like certain foods and then you go to a fitness instructor and they say right you've got to run and you've got to eat these Foods well that's not going to work for you is it and it's not necessary either quite frankly you can lose weight Building A system that works to your wants and needs and your likes so we'll do the same with the trading so consistency is key and I've got a rule of thumb people say well how long should I spend looking at the chart of how long should I spend dedicated to learning if you can get an hour a day on average over the week that's great so if you can get three hours on a Sunday and that averages out you know free across the week well then how can you make up another four hours or how can you make up another the more you do the better obviously but an hour a week an hour a day what I find it builds momentum and you get motivated because you make progress quicker you're treating it more seriously you're putting some time and effort into it so you're committed to it so you're just treating it more as a professional and if you can get an hour a day on average across the week which is seven hours per week great if you can do less don't worry but make sure it's consistent if you can do more great okay so that just leads us on just before we get stuck into learning all of the great technical stuff I just want to say one more thing and that's really a counter around accountability when you're learning to trade there's going to be lots of benefits that you didn't see were there originally so you want to trade primarily to make more money right but there's going to be other benefits like you're gonna think more objectively you're going to understand people better you're gonna lose fomo and fear of missing out you're gonna you know focus on long-term success rather than short-term quick wins so there's all of these kind of benefits these hidden benefits to learning to trade that you're going to benefit from not just making money which is amazing so it's a great place to be it's a great thing to do but it's very lonely not many people you know learn to trade not many people you know are Traders and there's not many people you can talk about about trading without them thinking it's some kind of scam or you're kind of crazy Gambler for the reasons I just mentioned previously right the way it's advertised and all the scams out there and all the rest of it so what I would do is I would counter that I would get people on board by telling them what you're doing okay and don't be afraid to tell them I'm learning to be a professional Trader if you're learning a guitar you'd say I'm learning to be a professional guitarist and they wouldn't laugh at you right but you've put it out there so people might laugh smirk and think you're crazy but just go with it and say look if I don't get anywhere in 18 months two years on this then you can you know ridicule me all you like but it's probably down to me just figuring out it wasn't for me anyway but just tell them open up tell your family about tell your kids tell your wife tell your husband tell your partner tell your family tell your colleagues tell everyone because it's not a taboo anymore it's something that you're doing you're working on you're becoming a professional Trader and you want to open up about that you want to be you know you want to be open about that and you want to be proud of that so let everyone know get everyone on board and what it also does is it allows them to respect your learning time when you've blocked it into your calendar that's your time dedicated to working on your future you have to put yourself first in this case because if you don't get to where you want to be what good are you to helping other people you know you're not really living the life that you really want otherwise you wouldn't be watching this video you know that you can do this you're really interested in this and you absolutely can do this you need to give you know give yourself permission to put yourself first to learn this stuff if it's something you really want to do and then you can serve your family and your friends and your colleagues even better and lastly on that point I want to say just get around other Traders professional Traders stay away from forums and those kind of you know those kind of Discord groups that are like really spammy and everyone's got an opinion uh get around some real professional traders who are all working on the same goal like-minded people and I'd invite you into my group which is below you can click the link in the description of this video to join my group of professional Traders completely free we're all working on becoming better Traders including myself being around other Traders and like-minded people who are working on the same goal gives you that belief transference that confidence and that momentum to continue on your trading Journey all right with that said we're going to get stuck into learning the cool stuff now so I hope you got value so far grab a pen and paper or you might want to pause it and come back when you're ready to start learning all of the technical stuff let's get stuck in all right so before we start digging into finding some of these opportunities and being able to actually Place trades we need to know what we're looking at we need to read the markets we need to read the charts we need to understand this language and really that starts with understanding price movement now I already mentioned that those candlesticks or bars those indications on that chart um are the the movement in price within a certain time period so what I want to show you now is the anatomy of each of those bars or candlesticks and how we read them and what each thing means uh when we're looking at Price relative to time so each one of these candlesticks in front of you here um they look very similar to the ones that are on the chart uh but you're probably thinking well some of them are green some of them are red well let's just let's just break that down a little bit the first thing you need to understand is there's four components of a Candlestick okay and that is the open price the close price the higher of the session and the low of the session because remember one Candlestick could be an hour it can be a day it can be a month it can be 15 minutes whatever it's always going to have those four components in other words what that means is let's just say that these candlesticks here in front of you are the hourly candles which means on bang on the hour o'clock we're going to have the open of a new candle and the close of the previous candle so where is the open on this candle well remember you saw red and green candles on the chart that I explained just that I showed you guys just now um a green candle means what a green candle means is is that we closed at the end of the hour higher than we opened and when you see a red candle conventionally it doesn't matter what color they are people use different colors for different candles and conventionally they were um white and black or they were Hollow and white so but over time usually screen is for bullish or up candles and red is for bearish or Down Candles meaning when it's green we close at a higher price than we opened and when it's red we close at a lower price than it opens so let's just start by coloring in these candles here so I'm going to color this one here green okay so this is our up candle this means that price closed higher than it opened and we'll have a red down candle as well and meaning that price closed or the candle closed lower than at the price it opened so where are the how do we identify we're open and where it closed well let's start there so in a green candle we've got the four components okay we've got this we've got this we've got this and we've got this now you've probably guessed this will be the open price okay so whatever price this was on the chart uh remember over on the right hand axis we had the price price points down here and we had 1.3055 that price point will be the price at which that candle opened okay then this will be where the candle closed and then obviously in between that this would be the high of the session meaning the highest price that the market pushed up to during that candle and this would be the low and what we're looking at in this one body of a candle is a story of what happened during that hour we can see how high a price pushed up how low price pushed down where the Candlestick opened on the hour and where it closed on the hour makes sense now on the bullet on the bearish candle we've got exactly the same points except remember I said price closes lower than it opens so in this case we've got the open here because it opens and then it pushes up to the high or it pushes down to the low and then it closes lower than it opens so this is the close of the candle okay so in actual reality what you'll see in a real case scenario you wouldn't see this very often unless there was some kind of Gap what you would normally see is a green candle like this okay so this would be green let's just color this green and because prices closed up higher you then see the start of the red candle or another green candle whatever color candle comes next uh let's just say this is a green candle for instance right and then you might see obviously we've closed here and opened here so close open and then close open then you might see a red candle and this would be red and that means that we opened and then we pushed down a little bit and closed down here make sense hope that makes sense so far now I just want to give you an example of how this works on bars as well just so just so you're familiar and you can really get it in your head so let's take a look at bars instead of candles so with bars or what they're commonly referenced to is o h l c bars which is exactly what we've just been speaking about the four components which is open high low close or exactly like a candle in fact you can almost imagine that there's a Candlestick right here okay imagine a Candlestick right here right so imagine these are a Candlestick like this we've got exactly the same thing it just looks different that's all so this is the open this is the close this is the this is the close this is the high and this is the low and the same high open close low okay because we open and then we we close higher on the green and then we open and then we close lower on the red so one's red one's green and that's exactly um the same as a Candlestick they just look slightly different it comes down to personal preference these are obviously um preferred by some Traders and candlesticks prefer by others it really doesn't matter whatever it takes your fancy I used to use these in my trading when I started trading all those many years ago and then I transitioned over to candlesticks and then I just became more comfortable and familiar with candlesticks um and it and that's it so it really doesn't matter but hopefully you understand how the anatomy of a Candlestick what I want to talk about now is certain patterns and and kind of components of the Candlestick that you'll need to understand in order to develop an edge as a profitable Trader so let's take a look at those all right so what I want to talk about now are two main components of the Candlestick that are going to really give you an edge as a Trader the first one is the close okay so where the close happens and the second thing is this actual Wick what we call the candle wick um which is either the wick to the upside or the wick to the downside and I'll tell you why those are important so you see this candle here this is a relatively um normal looking candle a strong uh either buy it by a candle strong bullish candle or a strong bearish candle meaning that we've either opened here and closed here or we've opened here and closed here and you know we've closed predominantly lower or we've closed predominantly higher than we opened depending on what color the candle is which You Now understand now what happens if the Candlestick looks like this which it does you know this is very common to see a Candlestick looks like this meaning that let's just say this is well it doesn't really matter what color it is but let's just say this is a red candle okay so when we start to look at these candles we can start to form stories about what happened using the clothes and the wick so the clothes on the opens here right so this is the open this is the close but look what's actually happened during this session so the close is very very low the close in fact is the low so this is the close and the low even if you had a little Wick here that would be the low it's still a very low close make sense which indicates that it is a it's got strong selling pressure the market is a strong selling pressure uh scenario now what we can also see where the closed tells us who won the battle so in this case it was the sellers we can also look at the wick which also tells us a story of what happened during the session so imagine like a game of tug of war imagine during let's just draw on this candle here for instance let's just say you know we open here so this is the open we closed here but during the session the candle actually pushed up then down then up then down then up then down okay and then we closed here make sense or closed here sorry so there's this kind of tug of war going on bios trying to win sellers trying to win and then in this case we close out kind of roughly in the middle but in this situation here what's actually happened is we've opened here the buyers have tried to push this market right up okay this could be you know 100 Pips it could be 20 Pips it could be 50 Pips in price and then been rejected and slapped right back down um not only back down to here but right back down to here and then we've closed off the session we've closed the hour which shows us that there's a lot of strong selling pressure during this session so now no longer are we just looking at red and green candles and the open and close we're now forming a story of what's been happening during each of those sessions make sense let's take another look at another example let's just say for instance that we've got a Candlestick that looks like this and in this case this is going to be a green candle now these can be green or red to be considered strong buying or selling candles because of where the clothes is and because of how that Wick looks and how we can see what's actually happening during price movement well in this case we've opened here the the Bears or the sellers have tried to push all the way down and then been rejected and then we've closed right here right so in this case what's likely to happen next is we're likely to see a continuation of an upward moving Market all right now don't worry if you're if you're getting a little bit lost I'm gonna cat I'm going to continue this on with candlesticks when I go through the components of a successful strategy and a successful Edge but for now I just want you to understand the anatomy and the open the higher the low the close and then how to look at different components being where the where the candle closed and uh and and the the wick and see that rejection and form a story be able to form a story of what's likely to happen next okay obviously what's likely to happen next isn't going to be enough for you to go and place your money into a trade we're going to want to form uh you know some real confident bias with some backed up uh technical analysis to to Really inform that you know um put some weight behind that decision um but I'm going to show you how to do that but for now I just want you to understand you know the different shapes of candles you can also see a candle that looks like this okay so where the low is the open and the high is the close and there's no Wicks which means if it's a if it's a green candle that is a strong buying candle and the market is in strong momentum to the upside same goes for a bearish candle if we see the open and the high here and the close and the low here and this is a red candle then that is a strong selling candle which is likely to see the market continue down following that the close of that candle make sense so there's all these nice little nuances and nice little stories we can form of price when you get familiar of reading these candlesticks so just wanted to touch on that before we move in to the other technical components um if you've got any questions at this point please fire them below and uh and I'll be sure to answer those and if you're getting value from this remember to share this around and make sure that you're you know liking the video and sharing it to people that you think will find valuable as well all right let's get stuck into then the six main components of a successful trading strategy and a trading Edge okay so first things first we want to be able to identify the overall Market condition now you might have heard terms as bullish bearish and that's really what we're looking at we're looking at whether we're looking at an overall upward Market or an overall downward Market or it's just moving sideways and there's four different conditions that I want you to be aware of okay so the first one is bullish and bullish is an upward Market where the market is moving up from bottom left to top right and that's what we call an upward trending Market or a bullish Market the other one is obviously the opposite where we're looking at a bearish market where we're going from top left to bottom right and we're descending down and that is a downward moving Market a bearish market okay then we've got a ranging Market which kind of moves sideways like this okay and that's where the Market's not either bullish or bearish and it's just moving sideways and then we've got like a choppy indecisive Market that's very erratic and it kind of it moves and breaks structure and it doesn't look very nice and it's very choppy and when it's indecisive like that I recommend that you stay away from the market because when we're in those types of environments then we don't really have an edge okay so we're looking at a bullish Market a bearish market or a ranging market and if it's choppy and indecisive and we're not sure then we stay out those are really the four main conditions I want you to be aware of now obviously I've just drawn these out and it all looks lovely when you actually go into the markets let's take a look at the charts right now when you actually go out to the charts it looks you know it can look a little bit more ugly but ultimately what we're looking for is the market condition we're identifying whether it's a bullish Market a bearish market a ranging Market or a choppy indecisive market and you can see this is the dollar Yen okay and this is a chart of the dollar Yen and you can see that in this instance if I just bring on my drawing tools here you can see that we are actually going from bottom left to top right and this is what we'd call a bullish Market an upward trending Market let's take another look now let's take a look at another example in the other direction okay so in this instance we we've got the pound dollar and in this case we are trending downwards we've got top left to bottom right and the condition is bearish in this market okay so this is an example of when the market was ranging so if we bring on our tool here and go at the top and the bottom you can see we've got these nice ranges uh where price action is is bouncing off of the highs and the lows and then finally let's just take a look at some examples with a choppy indecisive market and you can see here that price is very very choppy it's breaking up and breaking down and you know it's it's all over the place so this is really really choppy indecisive scenario so we want to we're going to avoid those as much as possible okay so now we understand identifying the market condition the next step is to identify the market phase so let's take a look at what I mean by that okay so we've in this instance on the dollar Yen we've got a bullish Market condition we've got an upward trending market so the next thing you want to look at is the phase now you can see here we've had this upward phase okay and that's what we call phase one or the Run Okay the extension and then we've had this phase here which is the pullback right and then we've had the next run up and then we've had a pullback and then we've had a run up and then we've had a pullback and each of these uh phases provides different opportunities depending on what we're looking for as a Trader whether we're looking to jump on the trend or we're looking to short the reversal or the you know the the counter move if you like to the trend and there's many ways you know there's different different Traders can trade different ways and we'll talk about strategy development later but these are the phases so we've got a run a pullback a run a pullback a run a pullback and a run is the extension in the direction of the trend and the pullback is the retracement the outside return the the um correction if you like the momentary collect correct before we continue to the upside and of course in a bearish example it would be this in an opposite so let's take a look at that quickly okay so in our pound dollar example here you can see we've got phase one phase two phase three you know downward run pullback extension pullback extension pullback okay so the run and the pullback you need to identify what stage the Market's in right now so first of all we've got the market condition bullish or bearish or in a Range if we're bullish or bearish where are we what what phase are we in are we in the Run phase or the pullback phase and the reason this is important is because you wouldn't want if we were on a bullish chart for example and we wanted and we had a bias that the market was going to go up what we don't want to do is buy it in the middle of these runs that's what rookies do that's what rookie Traders do they buy in and they're in too late and then the market starts to turn back and then they you know they lose is that they get fearful and then they close the position off at no profits what we want to do is identify the pullback and then look to get long then look to buy the market so we get the best possible price now on that topic you're never ever going to catch the bottoms every time and sell at the top anyone telling you you should do that it's ridiculous you know I've never met anyone that's accurately been able to do that over a long period of time consistently ever so don't worry about that but our job as a Trader is to get in the best price as possible and then sell at the best price possible okay so now we've identified our condition and we can identify our phases you can see in this instance we're in the pullback phase and in a bullish Trend that's good because we we could potentially get involved with some uh some trading opportunities now but that's not enough what I want you to do now is understand the power of support and resistance okay so this is another technical indicator technical skill that you can develop and train your eye to identify that will then add even more weight to your case for entry into a trade so let's just take a look at what I mean by that if I just bring on my squiggle tool here you can see that where we've pulled down to here okay in this pullback you can see if I draw a straight line across if I can draw a straight line you can see that previous resistance is whenever we hit something like a ceiling we refer to it as resistance and whenever we hit something as a floor we call it support so on the way up a downward move would be support and an upward move upward ceiling would be resistance so whenever we're rejected from the higher that's resistance whenever we're bouncing off the lows that's support okay hence the names but what we find is when the market is really harmonically moving in Trend this way normally the resistance level which is previous here which is the previous high of the previous run normally becomes a decent support level and I can just draw this on again here if I just do this most recent one here if I can draw a straight line there you can see it again the previous resistance becomes support so that's pretty cool right because now we can start getting excited about piecing this together and forming a real high high probability move because what is a trading strategy a trading strategy is just a series of patterns that happen frequently in the market that we build rules around that gives us a high probability of being right and then when you trade that consistently like a board game set of instructions that is what you're going you know you're gonna come out with a profit okay so that's all trading really is so what we want to do is not just have um maybe it will do this maybe it won't I think it will it's likely to do that what we want is a solid Edge we want something where we have higher confidence in the fact that it's likely very very likely to do what we think it's going to do because we never know what it's going to do definitely all right any Traders out there tell you they know what the Market's going to do run a mile all right so so far we've got the condition the market phase we've got support and resistance and we're using that to our advantage as well so we're saying okay well if we're in a pullback if we're in let's start again on this example identify the market condition we're bullish what are we looking for bullish opportunities buying opportunities okay what phase are we in are we in a run or a pullback when we get somewhere down here there could be a an area that all of the Traders are looking at or the majority of Traders are looking at that will provide a high probability area for me to get in and buy this position well what's the first kind of filter that we can use support and resistance where's previous resistance well price is pushing right down into that support level right now what do we know historically well resistance becomes support there's a clue okay look left structure leaves Clues you might have heard the saying um there's our first clue but we don't want to stop there what we want to look at now is how price behaves once it gets down into that zone so let's take a look at that right now all right before I go into that I just forgot to mention something on the support and resistance so obviously I mentioned support and resistance um you know horizontally but there's also angular support and resistance that we could look at as well so just to give you remember we're trying to think like as many other Traders as possible to pinpoint an area that there's a high probability of a reaction of something likely to happen so that we can then Place orders right um what we're looking at here is if I just bring on my tools here you can see this is a downward Trend this section of the market and we've we've got um our phase phase one uh run our pullback our run okay and then we've got our pullback on the pullback we've also got previous structure support become resistance okay um and we've also got if we just look if we draw a line here you know sometimes what you can see is at the each of the pullbacks if you draw a line from the the close of the candle all the way through the closes of the candles to the most recent one uh you'll find that there is something called angular support or in this case resistance where we're hitting an angular ceiling and when the markets are really in Trend they tend to respect these now again it's not an exact science and it's not a pinpointed price but when we can align all of this together we start getting a real high probability setup in our hands so I just thought I'd share that with you as well now I'm going to go into how we identify when's the right time to start really drilling down and looking at placing orders so let's look at that okay so the next thing I want to talk about is price okay and how that behaves price uh patterns what I'm talking about specifically is deceleration so running out of steam so we want to know when the market is likely to change direction in other words and there's a couple of clues that we could use to do that if we're in a trending Market we can start to remember what I said about the candles and how we had big strong momentum candles and then we started to read the story of how that might be starting to run out of steam or how certain selling pressure was coming into the market or buying pressure depending on what um you know what direction we're going in but we can use that in a trend as well not only can we use it in a trend we can use it at the end of a trend so if the Market's trending and price action starts to show us that it's running out of steam and then we put in a retest or something like that then we can start to go all right okay that's double confirmation that it's likely to stop here this trend and actually go the other direction so so what I'm going to give you is an example here in a trend so you can see on this this is the Aussie New Zealand this example and you can see that we've got our run and our pullback and we've got our run and our pullback and we've got previous structure support become resistance right and we've got angular um resistance as well and prices pull back out and obviously all of these are in hindsight but that's really the only way that I can demonstrate this to you to give you as much value and examples in this beginner's program what we could look for now is in this pullback phase we can see that how we can really drill down and look at Price here so let's just start by bring in uh let's zoom in a little bit here whoops let me just okay what actually happened here is we had this strong bullish candle and then we had another bullish candle then another bullish candle another bullish candle but as you can see they're getting ever so slightly smaller until we get this candle right now this candle here what did I say to you guys before I said this is completely different to this this shows us that although it's green and we open lower than we closed it's still a bearish candle they're still selling pressure because remember the tug of war Story the price pushed up and then pushed all the way back down and closed okay which is completely different to the previous story following this strong momentum and then we run out of steam and then we see this selling pressure kick in so remember we're looking at the condition of the market which is bearish we're looking at the phase of the market which is in a pullback now we're trying to see where price is likely to roll back over to go into the continuation of that downward move and what we're using is support and resistance we're using angular support and resistance we're using um price action now and we're looking at deceleration we're reading the story of price to show us when's a high probability you know entry point because we're never going to catch the top and sell the bottom right it doesn't happen what we want to do is use our technical skills to get in at the best point possible so when I look at this I've now identified some deceleration and I've now identified what we call a Candlestick pattern as well and this Candlestick pattern is known as a high test candle or um some people refer to it as a shooting star or there's many other names for these types of candles but really it doesn't matter what we're looking at is the is the formation of the candle and this is a high test candle now there's other candles that you might pay attention to like low test candle if we're going the other direction just like this one here or this one here but as you can see if you just look at any of these candles anywhere you're not going to have an edge however if you look at them in the right place in the market that's what's going to give you the edge make sense same with doji candles doji is a candle like this one here that just has a very you know opens and closes at the same price it's called indecision where there's no decision and a lot of the times you'll see doji candles that that complete like this where it's right in the middle it's tug of war that hasn't been won by either party and um and again they happen everywhere in the market but if you use them and you identify them at the right place in the market that can be added to your Confluence your confidence and confirmation that that's a good trading decision it adds water to and weight to the decision right so one of the Candlestick patterns which is um we've looked at Market condition Market phases we've looked at support and resistance we've looked at Price action patterns right the other thing that we can look at is Candlestick patterns okay so there's other things like indicators like Fibonacci and exponential moving averages and that but I'm not really going to go too much into detail in this beginner's course you don't really need to know too much about that um not not at this stage anyway basically it's just another way of adding another filter so that you get added confirmation so just give you an example of one of the popular indicators that people use when we're looking for where the retracement's going to end is Fibonacci and is called a Fibonacci retracement tool and you're essentially drag it on from the most recent pullback to the most recent low and what you're looking for is usually one of the popular ratios that people look for is a 382 retracement for a trend and you can see that that 382 retracement is lining up in our Zone here as well okay now some people look for deeper retracements at 618 but really the 382 is the you know the strong the indication of a strong Trend so you can see it's another thing that we can add on now because we've now got our angular and horizontal support resistance lines we've got our um we've got the pullback phase we've got the um the 382 retracement you can also see here that we've got this even handle number you see this 1.1000 now another thing that you could use to your discretion is even and handle numbers anything that's on the flat or 500 or even numbers with 50 in them they seem to be respected more often than not so you can see that we've got 1.1 flat that is a flat even handle number you know when you go to the petrol station and you put the Petrol in your car and you squeeze the pump and you try and get it on the Zero that same psychology is is represented in the markets believe it or not and for whatever reason these psychological numbers are respected lots of people take their orders or profits at these levels which means we see movement in the market so great 1.1 flat we've got all this Confluence all of this uh going in our favor so all we need to do now is place an order right so we just want to place an order and what I'm looking for is the Candlestick formation as my as my signal to say right now we're ready to place an order and I've already got my candle signal right here okay so let's just take off this Fibonacci because it's a little bit it's cluttering the um clutter in the chart so all I'm going to do now is place an order just below the low of this High test Wick okay and I'm going to be placing a cell stop order I'm going to go for orders in just a moment but for now all I'm if we go from the mindset of I'm just testing this out okay so I just want to see what happens so all I'm going to do is I'm going to place a um I'm going to place an order here just below this low and I'm going to put my stop loss up here and don't worry you don't know what stop loss is at the moment but I'm going to explain what it is whoops what's going on here okay so my stop loss is going to go above this High the entry is going to go above below the low and then what I'm basically saying is to my broker I'm saying if price action pushes Beyond below this line I want to get in at this price and I want to get out at a predetermined price um maybe down at the lows okay so I'm going to say right in this instance I'm going to test getting out down here at the lows right at the lows great let's see what happens so we just let the market play out we get triggered into the trade and there's a high probability move and look not only did we get our high test candle wick here we got a lower low lower close than the previous low this is called a three bar reversal okay and uh we also got another rejection here so added confirmation even if you didn't get in here and waited for this candle you got even more confirmation because you could see not only did we get another rejection we also closed even lower than the previous low so then you could have placed your order here and got in make sense so I hope you understand how we use that kind of multi-factor approach to looking at different components on price to really drill down and see where the high probability setups are and forming a story of price allows us to predict what's likely to happen next then all we've got to do is go and test this historically so a case of literally just going back in time and every time you get this set up practicing the moves um and you know going through it one bar at a time in real time as if like right what we're in the run or the pullback run on the pullback okay great what am I looking for now support resistance etc etc and you want to have a go at doing that and you might want to pause the video to go and practice some of that and what I'm going to go through now is what you're going to want to do know in order to actually place an order but before we do that we have to understand the importance of testing this and how to test it so let's do that first all right so from here before we get stuck into the business side of things which is going to be really important in terms of testing profitability you know making sure that you've got got a solid system and then looking at strategies and things like that we first of all have to address something that's kind of the elephant in a room here and that is orders placing orders and what they mean you know what are they um so first of all I'm going to talk about the different types of orders and then I'm going to talk about how you calculate your position size and then how you know exactly what order to place and where and when and why and how much risk you've got at stake and all the kind of all that kind of good stuff so okay so what I want to start by giving you first is the terminology and the references used to describe different order types okay and I'm going to write them out first of all so write these down we've got a buy limit we've got a cell limit we've got a buy stop we've got a cell stop okay and we've got at Market now whoops at Market now those are the references those are the terms that you might have heard when it comes to order placement now I want to give you a a you know a reference or a kind of description of each of these because they can all be used in different ways right so some of you might be familiar with the term stop loss okay well a stop loss is a the way we use any of these orders okay so a stop loss is the way that you're using these orders not exactly so a sell stop and a buy stop isn't a stop loss a buy limit can be a stop loss A sell limit can be a stop loss an app market order can be a stop loss if you if you've got a mental level that you're actively watching and I'll explain more in a moment right so forget stop loss at the moment I explain that in a moment but these are the types of orders a buy limit is um a limit order where you're telling your broker your each of these orders are instructions to your broker by the way so first things first a lot of people think that when they place an order on the chart that that is the exact level that they should be filled in uh but it's not it's actually an instruction to your broker to then fill your position at the nearest possible price okay I want you to understand that because I don't want you to be one of these people that blame Brokers and things like that for you know not giving not honoring your your order and all this right it happens it happens and when you blame orders or things when you blame Brokers for things like that it just shows the lack of lack of knowledge on Brokers now there is obviously things that go on underhanded by some Brokers which is why I use trade Nation where they change spread values and things like that I hate all that um and I would say if you if you ever experience that get rid um but just understand that when you place an order on your chart it's an instruction to your broker great good so a buy limit is a buy limit order is telling your broker that if price pushes down below what we're trading at at the moment and we hit a certain limit whatever price you specify to be that limit so let's just say for instance that we're trading here okay and um you're you're telling your broker so let's just let's just do this in a um you know uh chart fashion so we're trading at this price and you tell your broker actually if we push down to here I want to set a buy limit order which means if we hit that limit I want to buy the currency okay so basically it's an instruction to your broker to say if we hit this level below where we're trading at the moment whatever you predetermine that to be I want to buy x amount of position all right and don't worry about position sizing just yet so when we so we set a limit order down here and if price pushes down your broker will then trigger will buy you will put you in a long position make sense now cell limit works the other way so we're telling the broker if price pushes up to this predetermined limit that I'm going to tell you uh above what we're trading at at the moment I want to sell the position okay so again exactly the same thing we're trading at this value and uh you're saying I want to set a cell limit up here okay this is a buy limit there's a sell limit and if price pushes up to this level you want to sell and they'll put you in a sell position a short position right a buy stop order is kind of the other way around so let's just say we're trading at this level you're basically a buy stop order is saying to your broker if we hit this level above what we're trading I want to buy okay so let's just say that we're trading here and you say if we push up to this level I want you to put me into a long position I want to buy at this level so this is a buy stop order meaning that you're thinking that the price is going to go up and a sell stop order is the other way so again if a sell stop order is an order to your broker to say if price pushes down below what we're trading at the moment to this predetermined level please sell me put me in a short position okay I want to I want to sell so you place your order down here which is be a sell stop and then you're thinking that you know your your bias is that Market's going to continue going down make sense so we've covered by limit we've covered cell limit we've covered by stop and we've covered sales stop and that market order is just you watching the charts live and clicking buy or sell and giving your broker an an instant instruction as soon as possible to get you into that direction whatever that might be whether it's a buy buy at Market or sell-up market so you can buy or sell at market and that is you know get me in now sell now buy now make sense now all of these are orders and they can all be used for Target positioning or they can also be used for getting into a trade and they can also be used for stop loss so now we've covered the references of each of these let's cover the three different ways we use these okay so basically it's a stop loss a entry order and a Target or a profit Target or whatever you want to call it right profit Target and you can have multiple profit targets but we're just going to stick with this for Simplicity right now okay now first thing I want you to get clear in your mind is every order is an order what do I mean by that every order is an order and what I mean by that is a lot of Traders we see out there they put so much emphasis and attention and you know effort and energy into trying to pinpoint the most accurate place for entry which we was doing earlier right but when you think about it your entry could be someone's stop loss your target could be someone's entry and your target could be someone's stop loss right so it's they're all orders they all behave the same way so you want to think about putting as much effort and attention into every one of these orders not just your entry but your stop loss and your target so you want to give the stop-loss breathing room you want to give your target enough you know you want a decent sized Target but not too greedy in some situations um and your entry obviously needs to be precision as well so you get that best probable um move so any of these orders that I've just been through here buy limit sell limit buy stop sell stop or at Market can be used as stop loss entry and Target okay depending on how you get in so I'm going to give you an example of this on the chart in just a moment but a stop loss can be a buy limit a sell limit an app market right or it can be a buy stop or a sales stop okay a stop order is not re is not related to stop loss it's stop loss is just a term for how we use the order does that make sense um an entry can be a buy limit a cell limit an app market a buy stop whoops and a sell stop if I could write a Target can be a buy limit sell limit at Market buy stock sell stock so let me give you an example of each of these a stop loss if markets starts going against where we um you know where we we we we thought the market would go and we want to get out of there we could set a buy stop order let's just say for instance we thought the market was going to go down let's give you an example of this right so here's the chart let's just say that the Market's trending and we get in a short position here okay so we set our order and we we set a cell limit order here because we got we made the prediction here and we said right if we push up to that level that's previous support should become resistance I've got enough you know enough Confluence there I'm happy to place a sell limit order and I'm going to tell my broker to just put an order there you set it you forget it that's called a sell limit and your idea is that the Market's going to push down and re-test these lows and you're going to place a buy limit here sell limit here by limit here because you're telling remember you're telling your broker if price pushes down below the current price that we're trading at I want to buy back my position and of course this this order here won't be active until this order's active okay but what if Market goes against you against your prediction right so you've put a sell limit order in you're now you've sold the position and Market's going against you okay well what you would use here so I remember what I said about the broker if it goes above the price we're trading at how you you've already sold so how do you buy it back okay well you want to buy stop order here okay so it's just a case of how you're getting in the market how you're placing orders how that relates to um you know the how we're using the order and then how the actual order works and it only comes down to these six things or five things here right so you've just got to memorize this you've got to really understand this and then you've got to know how you're using each of those five things and then you've got to understand how you place the orders on the chart so let's go over to the chart and I'll just make this really really clear by giving you some examples on there okay so in real time let's take a look at some of the examples that we could give on some of these orders all right so we're currently trading at 22 913 okay and what I'm looking at is different orders that I might place so if I was looking to sell this right now okay for whatever reason I would place a at Market order right at Market order and I would get in at market right here and we're selling a place in that market order I've told my broker I want to sell um and we're in now in order to cover my position so basically I need to set a profit Target and a stop loss and I could use any of those orders that I just showed you for that but they are specific to depending on what order you your entry order is okay so if I've you know if I've placed a sell order I don't want to place a sell order for my stop loss it has to be a buy order I have to buy back if you're selling you have to buy back at your stop loss if you're buying you have to sell back at your stop loss Okay so if I've set a app market sell order here my stop loss order is going to be at a position where I I want to be out of it because I know that I'm wrong I've accepted that I'm wrong and I want to be out as minimal minimal loss so I predetermine a percentage of my account I want to risk on this which is all that all happens before we place the first order I'm going to show you how to do that in just a moment but the stop loss let's just say we're going to place the stop loss above this structure level okay so the stop loss is going to go here and the stop loss for this particular order is I want to place it now so I'm going to get in the trade at Market I'm sure now I just want to cover my position and I want to place a buyer stop order here okay so a buy stop order and that's going to be used as my stop loss now why can't we use a buy limit order well we can't use a buy limit order because remember what I said about buy limit order a buy limit order is an instruction to your broker to get in at a price that's lower than we're currently trading all right so that wouldn't be lower than we're currently trading would it so it would be a buy stop order so just by figuring out and remembering what I said about each of those orders the unique characteristics of those orders you can work out all right okay yeah it couldn't be that one so it really only isolates it down to the right one now for my target order let's just say that I want to get in down here I want to buy back down here a profit now that could be an app market because I could sit here watching it and I could just do an app market order it couldn't be a sell stop because we're already selling it needs to be a buy okay and it can't be a buy stop because a buy stop order is getting in and buying more above where we're currently trading so it has to be a buy limit make sense so I know it's a lot to take in but if you re-watch and get it in your head you'll understand so I've sold at Market I've got a buy limit for my Target order and I've got a cell uh buy stop for my stop loss right Let's uh let's give you another example let's just say this time um if price pushes down to here let's just say if price pushes down to here I want to buy this okay so if price pushes down I'm going to tell my broker that at this level here whatever this level is 22 60 70 or something I want to buy at this level okay well I could either wait here and buy it if it pushes down or I can just set a buy limit order which is telling my broker that if we push down below where we're trading now to this level buy me in okay and then once I get in there I need to set a stop loss and I always want you to remember this entry stop loss Target entry stop loss Target so as soon as you get in you think about your risk and then you think about your Target and always do it in that order so for this one it's just an order saying well if we get if price pushes down lower than what we're trading at the moment I want to sell which is a sell stop so this is a sell stop okay so stop this is a buy limit okay and then for the Target which let's just say we put our Target back up here where we were so we want the market to push down then we want to push back up and hit our targets right well what's this going to be this could be an app market because we're sitting there watching it or it can be a sell limit order okay sell limit order so you kind of get the gist right now is there anything that I haven't done here yes there's a couple of ways you know you could do at Market orders for everything you could I highly recommend you don't use at Market orders for stop losses because that's not a good idea but I want you to just really get your head around the different types of orders and then how we use the different types of orders and commit to memory those different differentiators that I just went through you know instructions to your broker if price is above or below where we're at at the moment you buy or sell and if you get your head around that then we can move on to calculating position size and getting in on the entries so let's do that now okay so just to get your head around risk and Order placement and risk management at a very very basic level let's just say that we are in a trending Market okay and we're looking to get in around this level here we're gonna buy the market right and I'm not so interested in the profit Target for this example I just want to get you to understand risk and position sizing a basic fundamental level so let's just say that the price we want to get in at is 0. I don't know eight five fifty okay now we're gonna get in with a limit order or an app market order or you know buy limit whatever it might be and we're going to predict that the Market's gonna go up now to cover our position we also need to put in a stop loss where we want to get out and accept that we're wrong with minimal risk okay minimal loss sorry so let's just say that to keep it the numbers easy that this is 8 500. so here between here and here is a 50 pip Gap right so there's 50 Pips between our entry and our stop loss now one thing I forgot to mention earlier is we're looking at the fourth decimal point the only time that that that isn't the case is on any pair that contains the Yen if we have the Japanese Yen in any of the pairs we're just looking at the second decimal point so you might see something like one three one twenty well this will be the one unit and this will be the 10 unit okay so all the pairs we're looking at the fourth decimal point uh except for the pound gem we're looking at the second decimal point or the dollar Yen any pair of the yen in it all right so back to the example so we've got a 50 pip risk limit make sense so far now let's just say that we've got a 10 000 account that's our total account size okay and I'm just really just keeping the numbers you might have a thousand dollar account you might have a 500 account you might have a million account right but ten thousand dollars let's just go with X it's nice and round and let's just say we want to risk no more than one percent on any trade any given trade okay so first thing I'm going to do is divide this by a hundred and that will give me a hundred okay so a hundred dollars makes sense so far so ten thousand divided by a hundred that gives us one percent of our account or you can multiply it by point zero zero one and get the same answer and we've got a hundred dollars now what we want to do is take that that's our risk and we want to work out how many you know how we put that into the order so we've got a 50 pip risk in space okay in price and we've got a hundred dollars allocated to that 50 bit risk of our account size right so all we need to do is take the 100 that we've got to allocate to risk and divide it by 50 and that will give us two and what is two two dollars per pip so let's just say that this here is a two to one move meaning we're risking one but we're going to gain two that means if we're risking a hundred and we've got two dollars per pip on our on every every pip the market moves we're gaining two dollars or losing two as if it's below our entry that means that if this is a hundred this is 200 so we're risking 100 to gain what two hundred dollars which is a two to one risk reward profile now I'm not going to go into um lot size and everything just yet because the the way that we buy currency is in units some you know depending on the broker or the platform that you're using the charting package it will give you the option to put in a a dollar figure per trade or per risk per pip and some of you will be looking at lot size so standard lot mini lot micro lot and that will all be calculated based on similar principles but I'm not going to go into that just now I'm going to go into that later on when we get in depth with the you know with the numbers and and real detailed stuff but for now I just want you to understand kind of all right okay so I'm allocating one percent of my account to split across the amount of risk where my stop loss is going to go and my entry is and then I can work out what my profit Target will be because it will be the same value per pip and then there's all leverage and all the rest of it you know how you can access how you can control a bigger portion of the market using leverage from the broker occur and all of that I'll go through when I talk about Brokers but for now I just wanted to cover this so that you understand risk management position sizing to a degree and how it's all relative to you know the potential profit that you can make on any one trade okay so based on what we've learned so far in terms of a little bit about order placement a little bit about orders a little bit about um this kind of six things we look for um to approach a decent trading setup the condition the phase the the um you know price action patterns indicators support and resistance Candlestick patterns what I want to do now is just kind of do some practical stuff and I'm going to set you guys uh some homework as well so you might want to pause the video after this section if you haven't already paused it multiple times already it's a bit of a big one um and what I want to do is just pull out a kind of makeshift strategy if you like a trading strategy I wanna I wanna help you understand that a trading strategy is a series of events that happen frequently a pattern that happens frequently and if we're able to build rules around it we can um consistently trade those rules or test those rules to find it if it has a positive Edge a profitable you know if it's profitable over time and then we can go and trade it right now before I do that I want you to understand everything I've taught you so far can be applied depending on what type of Trader you are whether you're looking for Trends whether you're looking for reversals the ends of Trends whether you're looking for ranging markets all of those things that I've taught you so far can be used to approach strategies and setups in multiple different market conditions okay that's the first thing second thing what's a great exercise to do is let's just say that I bring on my horizontal line tool here which you can find right here and uh just a good thing to practice is just scrunch up a chart if you've played around the chart already you can use the link below to open a free account with with trade nation and so your charts look like this and then just practice going through and just put in horizontal lines on support and resistance levels okay and what you're going to see is that magic take place right where we see look at this so we've got previous resistance resistance become support and then we've got resistance becomes support resistance becomes support resistance becomes support right and so on and so on and so on and although it doesn't always respect it does most of the time you know when we see these really nice harmonically trending markets support becomes resistant so just doing this little exercise will one get your eye used to identifying structure you know your support and resistance from your eyes and uh two giving you confidence and and you know helping you see how powerful some of this stuff really is so let's uh let's take a let's make up a strategy and then what we're going to do is use that strategy to firstly show you what a strategy is made of and then second of all get you out your head around the idea of oh right I just need to go and test that now to see how it performs and that will give me the confidence then to give me the probability of what it's likely to do going forward right so let's do that so first things first this is all going to be in hindsight I have no other way of demonstrating it in an efficient way for this video so that you can you know otherwise we'll be waiting here I'll be taking days and days and days to film this thing and I want to give it to you right now so I'm going to kind of give you something in hindsight I've just pulled up a chart randomly I haven't really checked through too much here I've just seen a couple of things I think we could use and I'm just going to create a trading strategy now before I do that some of you might be thinking well when is the best time to trade when is the best what's the best time frame to use what you know do I use the daily the four hour the hourly and I would say this if you can only remember what I said about consistency you have to be consistent so when can you consistently be in front of the charts every day to do the routine whatever that might be okay you don't want to be interrupted by meetings School run you know take it and bins out all this kind of thing right that I say uh or having a shower bath or someone gives you a call right so if you can only see like if you can consistently check the charts at the same time every day once a day you want to be trading on The Daily time frame okay so each of these candles is one day if you can do it two times maybe three times a day where then you can consider the four hour but remember those times have to be consistent there's no point chopping and changing and missing stuff and then trying to catch up and that's not going to work for you because Traders have a tiny Edge small Edge all right so if you miss a trade that can potentially cost you a couple of weeks of of profit yeah or keeping you at break even so you want to be consistent and if you can if you can check the charts more than four times a day three times a day then maybe consider the hourly but look this has been a ginner course and if you've watched this long we've got probably two hours in now you're probably gonna want to be a beginner which means you want as less time at the charts as possible because you won't be able to handle as much going on so I would say start with the daily time frame all right and for this example I'm going to show you on the daily time frame so what I want you to do is first of all I'm going to give you a strategy and then I'm going to say right what I want you to do is go and test this strategy and go and test it using all the different filters that we gave you in the before when I said look at angular support resistance look at horizontal support resistance look at even handle numbers look at indicators look at Price action patterns look at um price Candlestick formations okay and I'll give you a couple more countless informations to look at so let's make a start right first things first I'm going to look at this as a this is a bearish trend okay we're going to say right we've identified the market condition is bearish top left the bottom right we're putting in lower lows lower lows lower lows lower lows okay and we're in a bearish trend for this part and what I'm looking for is a continuation setup okay so I'm looking for Market to go to the pullback phase and then I'm looking to sell so that I can short the market and come out a profit down here I can buy back my position down here at a profit okay so look let's uh let's bring on my squiggle tool I'm going to draw all over this chart so make sure you take notes now let's just say that this was our last run and then this was our last pullback okay now what I'm looking for is when we get the pullback I'm looking for the first lower low lower closed candle so we're just going to assume for this one that we've pulled back into previous structure support um and it becomes resistance and we're in that zone just like we did before and what I'm looking for in is a lower low lower closed candle and what that is is a candle that closes lower than the previous low candle in other words we close lower today than we did yesterday makes sense because this is remember this is hindsight but this is a live in real time this is a live example so this candle here can you see this candle here right this red candle that candle closed lower than the previous low let me just remove that off so you can see it this was the previous candle right and this is the candle that's just closed below the low of the previous candle makes sense okay and what I'm going to do once I see one of those candles is I'm going to place a cell order just below the low two Pips below the low and I'm going to work out my stop loss and I'm going to put that two Pips above the highest high and then what I'm going to do is I'm going to shoot for the lowest close for my target now of course this is in hindsight but this is a good example of showing you the power of structure and the power of putting as much emphasis into your target taking and stop loss as you do your entry and what you can see here is I was triggered into the trade on this next Green candle then we pushed up a little bit because in real time you know that is a whole day put your mind in the whole day of what's happening in this green candle here we've pushed down triggered into the trade we've then pushed all the way up and we've gone into the red about 50 into our stop loss okay imagine that imagine your your mindset right then we've closed up here higher than we closed like the previous day high so that's it that's it for the night we've closed then we open again at 10 o'clock in the UK or five one minute past five in the in the US or whatever right and uh we're on to the next candle now the next candle starts to push down and we close down here great but we're still like what our entry right and then the next candle we have a big bearish momentum candle then another one then another one okay and then six days later or seven days six days later we actually hit the target but look what happens when we hit the target we respect that level because it's previous structure support and we hit it we pause and then the market Rockets rallies straight up so this is the importance of putting an emphasis into where you take your targets don't be greedy as it is this is like a three to one reward to risk profile which is amazing because if we risked uh a hundred dollars we've just gained 300 on this trade right um but in real time will you have the mental ability and the psychological kind of strength to stay in this trade and capture those targets or would you take targets early and if you if your answer is I'd take targets early you're not ready to trade you know that's something you really have to master you have to let your profits run and cut your losses early you don't want to cut your losses early uh cut your profits early because you you know you have to be if you do that you have to be right a hell of a lot of the time make sense the the shorter your Target and the shorter your reward to risk profile the more trade you need to be you know right on if you're right 50 of the time and you've got a one to one you're not going to be profitable make sense so in this one it worked out but I just wanted to walk you through you know that whole process of visualizing being in this trade in real time this one worked out so remember the rules we wait for the pullback phase we wait for it to you know get to previous support resistance or we just wait for the pullback we we identify where it's likely to end and then we look for the first lower low lower closed candle all right now let's go again so we put in our new low we start to pull back we start to see deceleration here at previous support and we put in a lower low lower candle right here okay so we enter a couple of Pips below the low we put out and when we get triggered in we put our stop above the highest high and you can see in this case start started to push down but if our Target was down at the lowest close this was more than a one to one probably a one and a half to one but we actually triggered into the trade and then got stopped out see that we got stopped out so we had to use our stop loss we had to trigger our stop loss order to get out of the trade at a loss so in this instance we've gained 300 and we've lost a hundred dollars we're up two hundred dollars make sense cool all being one percent per per trade and of course that one percent is going to change very slightly as we get get gain more uh as we grow our account um but I'm using it for this example okay but what happens here is we continue to push up then we see more deceleration which is still a valid pullback still a valid um retracement still valid phase two okay uh pullback and then we see Market decelerating here and then we get another lower low lower closed candle right so we place our order two Pips below the low we put our stop loss two Pips above the high and then we get triggered into the trade on the next day and then we have a bit of a doji candle which means indecision okay and then nothing happens and then the next day we get lower low lower close and guess what we're going to put our Target back down here again okay lowest close and boom we've got what two and a half to one on this so now we're up 450 or 500 500 great and then we wait for the new low so we don't take another trade until we break and close below this low and then we break and close below this low so now we're down into the run again now we can wait for the pullback and we can look again so here would be the next one right so we go into previous structure support become resistance we get our lower low lower closed candle which is right here and then we start to look again so hopefully you understand the kind of um whoops help if you could see that let me just move that so you can see that right support becomes resistance we put in our new run and then we pull back up we get our lower low lower closed candle right here okay so you know the rules pull back look for deceleration look for a lower low lower closed candle and then targets uh entries sell stop order below the low uh stop loss is a buy stop order of two Pips above the highest high targets at the lowest close from the previous run now I know that sounds like a lot but just rewind it back get what I'm saying it's not difficult and you can look in a bearish market and you look at this in a bullish Market okay and what we're going to do is we're going to do some testing on this and I'm going to show you how to test I'm going to show you what to do but when you're testing it I want you to pay attention to bullish Market bearish Market okay do one for bullish one for bearish you can do the same pair same same Market but what I want you to make a note of is making sure you've got the right Market condition making making sure you've got the right you know phase the pullback phase and then I want you to take note of whether there's deceleration in price action maybe use a Fibonacci indicator just to monitor where it pulled back to on the Fibonacci maybe um look at um support and resistance and then how many touches of support and resistance previously and did you have angular support uh resistance in a shorting Market or angular support in a bullish market and then did you see price decelerate was there a pattern in price there or was there a Candlestick pattern was there a high test canned Wick or was there a doji or was there a lower low lower close okay of course there's a lower low low close because that's the one we're using for this particular strategy but notice if there was any other Clues like a an indecision candle just before like we had on this one um or where was it where we had it on this one um was there one just before it or was there any other clues that you can glean so I want you to have a go at that I'm going to show you now how to you know have a little spreadsheet set out so you can go and test them what to record so that you can efficiently start to get excited about you know these strategy developments and how you can really use these patterns you know we've just found a few there just without it really looking and and you can go and test these and the beautiful thing is this everyone says trading's risky well it's actually the least riskiest business I know because what other business is one just you so there's no other external factors that can play a part in whether you make profit or not two you've got historical data research like this that gives you certainty and what's likely to happen next before you even spent a penny in the markets you know you could really sit here for six months developing and testing systems before you've even spent a penny in the market and then go do you know what I've got 67 strike rate you know this is going to potentially generate a uh 28 return per year on this one strategy amazing now I'm going to start funding my account and you have the confidence to do that then most Traders they the first question is oh how much do I need to trade to start or or let me let me just get in on this trade and they don't know what they're doing there's no need to do that that's why it's got a bad name that's why it's seen as risky I don't want you guys to do that so let's build a little spreadsheet so that we can test this I'll use this example and I'll show you what we're going to record on the spreadsheets let's do that all right so now what we're going to do is we're going to take what we just learned and we're going to try and do some testing all right now there's no wrong or right way of doing this if it's your first attempt I just want to open your mind to this stuff I just want you to understand the process that Traders have to go through to get a profitable system and have confidence in their system and then go and trade live right and I just want to reinforce again and say this is all we've got to go on as Traders the only thing we need is mental strength to trade a system where there's no real knowing of what's going to happen in the market any of these Traders out there tell you that you can make a set amount of Pips per week or set amount of money per week it's rubbish no one knows what's going to happen next the income comes in sporadically we're focused on overtime profits okay so with that being said all we've got to go on is historical data to give us that the calmness of the probabilities of what's likely to happen and the importance of doing this stuff you know is firstly we need to know what's likely to happen next okay because that's all we got to go on two when was our you know longest drawdown period when did we not make money for the you know how long did that last or what was the most amount of money we lost in any one time what was the biggest gain that we got in any one time and all of this information feeds our brain with information that keeps us calm because if things aren't going well and you've just taken three losers in a row you can look back at this and say well actually you know every August this seems to happen so this is perfectly normal and it keeps you calm and you just continue to trade the plan because the moment you break the plan when you're trading is when you lose consistency and that's when you're you're not going to come out on top the other reason it's important to test is because this is a business trading is a business and I know a lot of people don't see it like that but with most businesses you sell something and you get a unit profit right and a unit overhead cost and the rest is is profit and the you know you you make the sale you pay the overheads you get the profit with trading it's exactly the same except the overheads are broker fees platform costs losses uh and the and the sale price is the wins okay and that doesn't come on a unit trade by trade basis you don't win every trade so it goes over a monthly annually period where you're going right okay well I might have 10 winners and then three losers and then eight losers and five winners and it's very sporadic so we have to have a plan that at least gives us a policy for making profit that we can look to refer to and go right okay this is this is what I need to keep doing because this is normal right so that's the power of back testing and anyone that tells you that back testing you don't need to do it I would ask awesomeness why wouldn't you do it and I've in all my years of trading asking that question I've never had someone reply to me or give me an answer not even attempt to give me an answer because there isn't one okay so look what I've got here is a very basic spreadsheet we've got fantastic spreadsheets that we've created for some of you know my Traders and our Traders have created amazing spreadsheets better than the ones I've used but there's nothing wrong this is Google Sheets this is a back testing spreadsheet and all I've got is an entry date or NT date got an entry day entry time is Handy to know when the date was that you got in so when you reference back you can find those trades quickly to see all did this happen did that happen because you're going to have ideas you're going to have other ideas to test and you know you you can really go down a rabbit hole here the entry time that's important to know if you're trading on the on the daily chart obviously the time is going to be the same all the time because the open and the close of the candle is it 5 p.m Eastern Standard Time or 10 pm UK time and it's going to be the same every day but if you're trading the hourly charts or the four hour charts it could be you know up to four times a day or you know 12 6 24 times a day right so it could to be either currency pair what Market it is Titan I recommend you trade you just test one pair completely before you move on to any others time frame trading so time frame is the daily or the four hours Sixty Minute trading system so this is going to be what like Trend um counter Trend reversal ranging you know all that kind of stuff we're going to look at trend for this example type of entry in this case we're using a lower low lower closed candle okay so we use that can be and then these are the notes set up so you identify the condition tick phase tick um support and resistance you could put a score here so you look back and see how many times it touched and then you you count them up and then angular you just add as another one okay or you could add two points for an angular and that's your scoring system for for monitoring support and resistance because you might find at the end of this that you know all of the winners actually had five touches of support and resistance okay and you might just say well do you know what unless they're five touches of support and resistance and angular I'm not going to bother if it doesn't have five I won't bother makes sense and then that increases your strike rate you get better quality trades I'm not saying that will happen I'm just saying that's an example of why we take these notes indicators make note of Fibonacci or any indicators that you might use or was it a 382 retracement was it a 618 retracement you can start to get patterns and every time you see a winning batch you go Ah that's interesting they all hit the 382. right whereas the ones that hit the 618 they they lost they didn't they didn't generate a return price deceleration is there a price deceleration so like smaller candles right was there um was there a Candlestick like a high test candle wick or a doji right so were they there so you're making notes of those and then you want to make notice note of the entry price which is going to be two Pips below the low of the lower low lower close the stop loss price which is going to be two Pips above the highest high um or the lowest low if we're going in the other direction and then Target position which is going to be at the lowest close I've put Target two and three in case you want to test and take it that far I'm not going to do that for this example and then the close date close time and um where you exited the trade okay so because you could exit at the stop loss or you can exit at the uh at the Target and then you could use this to calculate total profit all right great we've got our system so what I can do now is I can bring this out and just pop this over here and um I'll pop this over here whoops pop this over here and now we've got our system okay so we can just start populating this and I'm not going to do loads I'm just going to show you guys how to do it and I'm going to leave you guys to that right so let's go so let's just say on this one we um let's let's start on this one here okay because that's I think you can see that on the screen there you go so we've got the pullback phase all right now you can make these as um you can put that in here or you can put check boxes to tick tick tick whatever you want to do I'm going to say pull back condition is bare bearish or downtrend whatever you want to write support and resistance now we could count that out I'm not going to in this case because I'm going to have to scroll through the charts but look just put a horizontal line in where the um so you get the horizontal line tool put it in where we're looking and then scroll back and see whoops scroll back and see how many times that's been tested and whether or not we have angular as well and you can count those up put the figure in here let's just say that that's five tests indicators you can bring on a Fibonacci retracement as I did before and you could go from the low at the higher to the low and see uh uh if we hit the um 618 so we hit the 618 there so that's that you'd put six one eight in there okay so six or sixty one point eight percent I should say I got in a habit of saying six six one eight it's actually Thirty um 38.2 of that move is the 382. 618 is 61.8 percent of that move uh is is the 618. so we just make a note of that and again we're just making notes just making notes Let me just clear some of this stuff off um what else um type of Entry so we're going to put lower low lower close candle trading system is going to be trend and the time frame is going to be the one day and you can just copy all this stuff down as well by the way I haven't got like sit here type in every everything out currency pair is going to be Aussie dollar entry time okay so now we're looking at the entries right so if we just get our um tool here just get across here right uh if you get the cross here on trade Nation it shows you all of the cool date and time on there anyway so you just have to hover over here and we'll see that the entry would have been actually not on this candle because we would have waited for this to close it would actually have been on this candle which the open and the close will be the same time okay so it's going to be 10 p.m in the UK because it's a daily chart and but we technically um it would be this day candle okay so the 16th of August 2022 okay would be when we enter uh into the trade because remember we're setting our sell stop order two Pips below this low so two Pips below the low you look at where the low is if you hover the hover the Crosshair over the candle and look at the low lows at 0.7011 so that means that the sell stop order will be two Pips below that at 0.7009 okay so we can we can write that in right now so uh let's just go entry uh date is the I think there's a 16th of the 8th 2022 okay entry time is going to be um we'll put 2200 okay and then let's see what we've got here let's see on the order info so the entry price is going to be what did I say 0.7009 I think I said didn't I just uh double check seven zero zero nine yep that is the entry price the stop loss is going to go two Pips above the highest highest so look this candle here the high of this candle 71.37 so we're going to be at 71.39 so 0.7 uh what was it seven higher is seven one thirty seven so seven one where are we where's the highest high highest high seven one thirty seven so seven one thirty five sorry seven one thirty five would be the stop loss Target is going to be at the lowest close okay so let me just remove uh all of these drawing tools let's just get rid of all of this get rid of this get rid of this get rid of this and uh I'll show you where the lowest closes so bring on the cross here here's the lowest uh close right here the close of this candle was 67.35 now we're going to go two Pips above that all right and that's allowing for something called front running which is just a common practice to make sure that you get filled because there's a little spread there and the broker might you know not fill your order so we want to make sure that we get filled so the close price is 67.35 we're going to go at 67.39 so 0.6739 and that's it okay now where do we close out so the next information is all about the exit info um so the closed date well let's let's have a look what we're looking for is when we hit uh 6739 okay so I'll just put a horizontal line in here and six seven uh three nine or six seven three five whatever it might be uh you can see that we hit here on this candle here so if I bring back my Crosshair you can see this candle right here took us out hit the Hit the Target and we hit that on the 6th of September so six 9th 2022 so we got in on the 18th or 16th of August and we got out on the 6th of September so that's three weeks in a trade okay again think about what that is actually like in real time three weeks in one trade on this one pair now you can trade multiple Pairs and you can test multiple Pairs and you'll have much more activity but this is just this one that's three weeks for the trade close time is going to be 10 p.m okay so 2200 and then the position one exit is going to be at that price so we just want the price uh of of that so it's going to be the target 67.39 okay so at 0.6739 and then you can put a little sum down here to calculate whether it was positive or negative and you can calculate total Pips total profit Etc I'm not going to do that here um I can do that later on but that is basically it so now if I just bring this across you can see that we've got our entry date entry time pair the time frame the trend this type of system which is a trend in in direction of the trend type of Entry was a lower low lower closed candle we've got a bearish condition yep tick we've got the phase pullback tick we've got the five tests of support and resistance just as notes we've got the 618 was tested interestingly price deceleration you can make a note of that Candlestick you know you can make a note of that if you've got a A doji or a high test candle wick or whatever you want to call you know shooting star some of you might be familiar with different Channel names just observations tweezer tops and then did you see price deceleration yes or no and then the entry price stop loss Target close date close time position exit job done so you can go and do this now I'm not going to go through tons of these things because it's quite quite time consuming I don't want to this video is already about three days long so you go and have a go at this let me know you get on in the comments let me know if you've got any questions and what we're going to get on to next is really just understanding how we put all this together so let's get on to that now all right so now you should have had a play in the charts and you should have done some testing and you should have some figures populated in your spreadsheet okay so if you haven't done that I recommend doing that unless you're going to go through this again but now we've done that what we want to do is establish one main thing right is the system profitable and although you know we gave you a demonstration of what to go and test that's a bit of fun that's not an actual strategy that I have any idea that will produce a profit it was just getting you into the way of thinking about strategy development how they're developed okay because if this is the only way you're going to make money is to develop a system all right you can't buy strategies off the shelf and then go and trade them into the sunset you need to know this stuff so that you can tweak them optimize them and make them fit your personality okay otherwise you're not going to make money trading them I know you could give the most profitable trading system to two people one will make money in one way all right so you need to know this stuff so now what we want to do is is it profitable we just want to know if it's profitable now you've probably got a rough idea you've counted up all of the kind of Pips uh negative you know and taking the negative from the positive and you've got a figure of positive Pips for the period of time that you've tested which is fantastic and there's some other data that you can get from this like how often you're right and how often you're wrong and your strike rate and things like that right but I want to kind of give you a little formula here that I think is going to serve you well going forward particularly if you're going to start really developing this stuff and I've got some really cool stuff that I want to share with you at the end of this as well that I think is going to help you so first of all let's do a positive expectancy formula now not many people know about this not many people share this sort of stuff unless you're inside a prop firm or something like that all right so grab a pen and paper and write this down first of all we're going to do a bracket and then we're going to do one plus Open Bracket W divided by L close bracket close off that as well times P minus one now this here is a formula and you're probably thinking well bloody hell what does that mean well you've got all of this information on your sheet potentially now so uh I'll explain what each of these mean p is going to be um your strike rate how how often you're right okay W is your average win and L is your average loss okay so it's really as simple as that so let's just say for example that um our average winner was two hundred dollars and our average loser was 170 because we was just over a one to one if we plug that into here now so let's just go one plus uh 200 divided by 170. close that off times P minus one we've now got those figures inside of our formula right well now let's start to work through this so let's write this out again one plus um 200 divided by 170 is 1.18 okay close that off times P minus one we've now got the next stage in the formula so we've now done we now know average win over our average loss makes sense great now we need to do is add one right okay so we want to add one this one here to the 1.8 which gives us 2.18 pretty simple and then we can times this by P minus one now p is your strike rate so when you go through all of the wins and the losses you might see well actually I'm right fifty percent of the time you might write think well I'm right seventy percent of the time or you might be 55 of the time okay so let's just say 55 of the time so now we've got 2.18 times 55 or 0.55 because it will be a percentage and then minus one okay which then gives us 2.18 times 0.55 is 1.2 minus 1 equals 0.2 okay now 0.2 is your positive expectancy that is your positive expectancy now here's the thing on this as long as that is above zero it's POS it's profitable okay now the further above zero the better okay so now you know this this is how you're going to analyze all of your testing that we're going to do from here on out right and I don't want you to get bogged down with a math or you know or anything like that I just want you to understand this is how you work out if your system has a positive expectancy or not and we're aiming for one above zero higher the better okay now what I want to do now is go through some demo trades because now we've tested we still don't want to place any money at risk because why would we we want to then go and iron out any kind of user errors in the demo market so that we can understand how to place orders I'm going to show you how to place orders in real time I'm going to show you how to open a proper practice account a demo account so that we can actually have something there as a solid tool for our business that we can go and use so that we give get certainty over our future returns and our future results as a Trader based on our performance so let's do that now all right so before we place a trade you're going to need a platform and I'm going to talk to you a little bit about the platform that I'm using here and whilst this video isn't to kind of be biased towards a broker or a platform or anything like that because you're brand new um I've had quite a few broker accounts and platforms over the years and over the years I've come to you know like certain features and really respect certain qualities of Brokers so the best thing I can do at this stage is just share with you what those are and I'll start with the broker so I use trade Nation you can find a link below this video to open up a demo account and if you contact the guys there they'll actually allow you to set the amount that you want in the demo account it's only fake money but the good thing about that is is because you can set a realistic kind of um you know a realistic figure that you can really you know feel like it's it's real and it's realistic and that will give you some really cool motivation because it will be kind of as close to your personal situation as possible right you can see here I've got a 10 uh ten thousand dollar account this is based on and this is a practice account it's a demo account and when you open the account it will look just like this and you can choose all the different markets before I go into the the charts and show you how to place orders and all the rest of it um I want to just say a couple of things about brokers if you're picking a broker I've done many videos on this in fact I did a whole video on my YouTube channel um showing you how to analyze Brokers and do your investigations and do your research there's certain things that Brokers are um a known for and got a bad rep for some you know that isn't Justified to be honest and some that is Justified so why it's not justified is Brokers make money off of you trading okay they want you to trade they want you to open an account they want you to trade because they make money on that spread remember I said that when you go to the airport they'll buy from one price and they'll sell to you another price and you never get what when you come back and exchange it back you never quite get you never make money on it or you rarely do from those kiosks because they're making money the the difference on the price the bid and the ask the buy and the sell and Brokers make their money from that okay and there's nothing wrong with that and that is their model now the reason that is kind of got a bit of a bad rip is because you know people try and flog Brokers and they link to Brokers and they say open an account with this broker and you don't know where the the intention is you know you don't know where the motive is and you don't know whether they've got your best uh best intention at heart um so let me let me share with you a little insight one there's two really main important things that I really think are really important with Brokers one is that you've got a good communication path and good lines of communication to the broker so the last thing you want is to have to ring up go for a ton of security questions and get put on hold and then go through to support and you're trying to close a trade and you have to go through all security and everything like that you want to be able to just pick up the phone and talk to someone an account manager and trade nation and provide me with an account manager that I know I can ring up I also know some of the Senior Management at trade Nation now throughout developing relationships because they're you know in my opinion a great broker so that's really important having a direct contact there that you can you can call if anything goes wrong second of all I like to see um the the kind of agenda on you know what they're promoting and if the if the broker is really promoting quality education and things like that uh then they're they're probably going to be half decent right if they're just you know putting out Facebook ads to sign up for accounts and they're taking your money they're not really they don't even care if you know about the markets or not that's that's kind of you know that's that's not really a great approach um but that was the kind of a bonus point the second real main one is spreads okay so it has been known that Brokers um change their spreads and uh during the Asia session you'll place a trade or you'll you'll get it you'll post a limit order and during the Asia session which is the session after the New York session so you have London session New York session and Asia session uh during that session the spreads become a little bit volatile and they change the spread and for some reason you might not get filled and then you'll have arguments with them and then you'll notice that that actually they changed the spread and they didn't honor the spread they didn't honor what they said uh they didn't fill your order at what it was when you placed it which is you know to me and big No-No right now the reason I like trade nation is because they uh they guarantee fixed spreads and I've done a test on this on my YouTube channel and I monitored six different Brokers and we looked through the times after the Asia session and it just stayed on point right whilst all the others were fluctuating I did that live in front of everyone so that just proves a point right that I just like to have fixed spreads so that I know um what I'm getting in at what I'm getting out at what I can project my profit at and not only that my back testing is more accurate I can actually back test stuff with certainty because I don't have to allow for that fluctuation in spread that sort of stuff you can't test but with with a fixed spread you can you can factor that in and you can kind of go right okay you can get more accurate figures so anyway enough about brokers um one other thing that you should know is there are Brokers that have a a book B book right all Brokers have an A but B book and they're kind of um if they think that your most Traders aren't good okay so what the broker will do is take the opposite position to your trade they won't actually put your money through to um the you know the interbank market they'll actually just keep the money and place the opposite side of the trade betting that you'll lose over time and they'll come out on top if they do think that you're pretty good then they'll put you on the uh the a book right and that's where they'll you know take you a bit more seriously but all this kind of stuff goes on inside brokerages which is another reason why I like to have personal communication with uh with the broker but anyway we don't have to worry about all that just yet because we just want to know how to place a trade so I don't know what broker account or platform you guys are going to use I would say go and you know do your research if you're not going to use trade Nation but make sure you pick one that's reputable or go and watch my video that I did on how to pick a good broker if you do open a demo account just for the sake of this training this is what you'll see you'll see a nice little dashboard here you can see I've got a practice account here of ten thousand dollars and I've got all the different markets down the left hand side okay and uh we're gonna do FX because I'm primarily an fx Trader I invest in stocks but I don't trade stocks and I trade some other indices and stuff but I'm going to focus on Forex because that's what we've been focusing on for this this program so I'm gonna go you know we've got the Euro pairs pound pairs dollar pairs all the kind of major different um or the three biggest major cross uh Pairs and then we've got the list of those there so let's just go for pound dollar and you can see some information like the buy and sell price you've got the um the date the the change the daily change in price okay so we're up to at the moment um whether it's down a percent or half a percent at the low and the high of the day so far okay so you know all this stuff now you've got a trade button which is going to be relevant for app market orders and then you've got an order button which is for limits and stop orders not stop loss stop uh buy stop sell stock remember those are orders above and below price and limit orders are orders above and below price and then that market order is just trade now so that's how you need to remember it orders are for later trade is for now okay very easy um and then you've got some you know you can put notifications on you've got button here some more information about the pair and then you can also add these to watch lists and things like that so great so what we're going to do now is click on the chart button and I'm going to show you guys how to place a demo trade and we're going to give you an example using the strategy that we did yesterday and we'll I'll walk you through step by step on how to place a trade and what all of the little uh what it all means so let's let's do that all right so now we're going to walk you through placing a trade okay and we're gonna just take an example of what we looked at previously as in strategy wise and we're going to take a look at the Euro Aussie so the first things first when you're on this this page or whatever your platform you're using you want to click on the actual Market that you're looking to trade or to analyze and in this case it's the Euro Aussie okay so what you do is you go over to this little chart symbol here hit that button and it will pull up a new chart and then you can expand that out and you can do that multiple times another reason I love this is because you have multiple charts which you've seen me you know my other videos and stuff it's very very convenient to have multiple charts laid out so that you can just glance between them anyway we're going to say we've had our phase in our run our pullback our run okay and our pull back and what we're looking to do is get that higher higher higher close I'm just going to pretend that we've done all the analysis we've had all the major tests of structure and we've got all the deceleration in price because this isn't about that this is about showing you how to place the trades okay so I'm going to leave all of the analysis to you guys otherwise I'll be a long time analyzing all the markets to try and find the perfect setup and then demonstrate that for you if I was going to do a live trade maybe we'll do that but this is a demo trade okay so this is how you place a demo trade so look right away uh we can see that we've got our higher higher higher close here right so if I just um if I bring on the cross here just you can see that we closed this candle closed Above This High okay so this candle closed at 1.55.71 and um what we want to do is place an order a couple of Pips above the high of that candle and of course because it's above where we're trading at at the moment we want to um use a buy stop order okay which is an order not a trade if if I wanted to place a trade right now um I'd be using the trade function where I just place an app market order and get and execute my trade as soon as the broke like as soon as possible okay but because I want to place it above that's going to be a sales a buyer stop order which means we're going to place an order so let me show you how we do that right so just before we go over to the orders you can see we're going to place a trade at 56 uh 33 Okay so we're going to go over here and and you can also bring this up on the chart as well so if you hit this button here you can see that the trade uh the trade thing comes up here but I'm going to show you that in a minute um so where were we won uh 5633 so we're going to go over to here uh Aussie Euro Aussie and we're going to hit order and you'll see this order right um and basically this this accounts in dollars so we're trading one dollar uh per pip okay but I'll show you how to set that right now um so we're gonna be buying all right so you set whether it's a buy or a sell order and the order level is going to be uh what did we say it was 150 156 33 so 156 33 okay and uh what I'm going to do is I'm just going to extend this bit down so if you hit this stop limit because obviously we could we could just hit uh buy right now or submit sorry and that would put that order in but what we don't have is a stop loss and a Target the broker doesn't know where you want to buy your position back if you're wrong or where you want to sell your position out when you if you win okay so we need to tell them that so I'm going to do all of that in one you don't have to do it all in one you can submit it and then edit the order um to put in the stop loss and the and the um Target after but I'm just going to do it all in one because I want to show you uh how this works so basically we know that we've got a ten thousand dollar account here right now to work out one percent of that we know we divide that by a hundred and or times it by point zero zero one and you'll get a hundred dollars so we want hundred dollar risk on this one trade right now if we go out to the Chart um and work out where our stop needs to go so our stop needs to go right down here okay so our stop needs to go two Pips below the low of this candle so if we've got a hundred dollars at risk we want to know where our entry is which is 56.33 and now stop loss is going to go a couple of Pips below this low which is going to be if the low is 53.86 it means we're going to be at 53.84. so when you take away 55 5633 from uh 53.84. that is 249 Okay so we've got 249 Pips so if we just divide that 100 divided by 2 4 9 we get 0.40 so basically all we can risk on this if we're risking one percent is 40 cents per pip now that is a problem that you might run into when you've got these bigger broader zones um because you know because it's such a big Zone and this is um this has got the Aussie dollar and the Euro you get bigger bigger bigger pairs than this something called the average true range the ATR and that basically is the average movement in price on these pairs and the bigger the ATR the bigger these you know the bigger the profit and the losses on some of these moves so we've got 249 Pips okay we can afford 40 cents per pip right so if we just go back to here we just change this from one to point four okay and we're gonna put a stop loss of uh you can either set it in points away from your entry right which we know is 249 or you can put the actual price right so it doesn't really matter I could put 249 here and you can see we're risking a hundred dollars see so just under a hundred dollars there or thereabouts um 100 you can put and you can see that's put 53.84 right in there so that's bang on the limit um is the so the stop is the stop loss okay we've placed a buy stop order to get in a stop loss and the limit order will be the sell limit which needs to go at the highest so let me just draw those out for you so you'll be 100 sure here is our entry with a prediction that we're going to push to the upside and this is going to be a buyer stop order okay if that gets triggered and we move down and get stopped out okay this will be a sell stop order all right um if we push up to this high we will want to place remember if price is going to be above and we need to sell back we want to sell limit order so that will be a sell limit order up here and we're going to go for the highest close so in this case if I bring on the uh Crosshair here let's bring on the cross here go over to this highest close and the close of this was 59 10 we're going to go two Pips below that so 159.08 15908 and this time I'll put it as price so 1.59.08 all right and you can see we're risking 100 to gain 110 so just over a one to one and if you if you look at that profile there you'll see that that's that's about right right so just to check through this we are buying 40 cents per pip okay we want whoops 56.33 needs to be the uh order level we need to put a stop loss 249 Pips away or at 153.84 our Target is a sell limit order at 159.08 and that is 275 Pips away we're risking just under 100 to gain 110. we want to make sure it says good till canceled and then we're going to hit submit okay with the demo account that I'm using here the minimum that we can enter on is 50 cents per pip okay so it's just changed it slightly um which you'll need to double check check but this is just an example demonstrate on how to place the orders okay and obviously when we've got those big zones that might be a problem so you might need to only take trades when uh you can take above 50 cents per pip and stick to your one percent risk so just to give you the demonstration of of placing the order that's all done now uh we can hit you know we can close that off uh we can go and edit this so if we just go to open orders you can see our order here which we can amend we can change if we need to and if we go to the Chart now and hit our trade button you can see that our trades now here and it prints the orders on the chart which is really handy because at a glance you can see where we're at if we're in if we're out Etc right so really really cool that's how you place orders and although my demonstration hasn't been like it as accurate as as uh you know it's really going to be in real time I just wanted to show you how to place the orders that's how it works and uh just to give you another demonstration here if we just go to um I don't know euro dollar okay we'll take a look at the euro dollar expand that out uh let's just say on the on this one for instance for whatever reason we wanted to sell at Market so we wanted to sell this time euro dollar uh what you do is you go down to here and instead of hitting order you'd hit trade and uh it would automatically you know you put your pip value in let's just say it's 0.5 again um or you could say a dollar whatever your one percent is depending on where you've worked out your stop loss needs to go Etc and uh we just hit sell okay and submit and then that will put us straight into a position there on the euro dollar where we are short so we are now short the euro dollar on this practice account on this uh on this account here and then you can go and set your stop loss and your targets because you can just go and edit it so you just go and edit the uh edit the order I'll just go to open positions amend and you can go and set all the stops and the and the targets that way so that's how you place orders and I just want to reinforce the importance of of demo you know ironing out any issues with demo because when I went to college I trained to be an electrical electrician and when I went in to do the Practical you went into these booths and they're all set up and installed by like the the professionals and everything was perfect you know everything was like plug and play and it was all designed to be very safe and it all just worked um however when I went on to the building sites that's when you see the nuances right that's when you step on the water pipe in the Riser and you put a screw for a cable and you get a belt off of a neutral and you you know all this kind of crazy stuff happens and that's what you're finding out in the field right and and electrical apprenticeship unfortunately you're doing it at your cost uh whereas in trading you don't have to you've got a demo account to find out all those nuances so making sure that you can you're oh Faye with the order placement you're okay with um understanding what type of order and witnessing that spread and you know just playing around with it for free so that you don't risk anything so I'd encourage you to go and practice placing some demo trades once you've got your results and you've got a strategy go and practice using some demo trades and see how you get on iron out any of those user mistakes that you can't test and then when you're confident in your system and you're confident that you can actually do this consistently then you can consider funding a real account you know over a small bit of money at first I'd recommend and then it's exactly the same process so just before we get into the really really really good stuff if this wasn't good enough I just want to cover leverage and margin because that's important so let's talk about that quick all right so in a minute I'm going to give you my own challenge but just on this last piece here I want you to be aware of Lots margin leverage you might have heard these terms banded around and they're really really important and the reason I wanted to cover them last is because I wanted you to not approach learning to trade with this in mind okay I kind of wanted you to learn what trading is really about and the fundamentals of trading and then how you can use this to really accelerate your returns and I didn't want you to be swayed either way emotionally because of of what I'm about to share with you so the way I think about um leverage let's talk about leverage first of all so think about when you buy a house okay most of the time when you buy a house you'll go to a bank and you will borrow some money for the mortgage right and what you put down into the property Market might be 10 of that house value maybe even less maybe a little bit more right but let's just say that we've got this kind of um seesaw here okay and I always like to draw it like this and let's just say that you've put in 10 000 and you bought a hundred thousand house I know that's not realistic in today's uh day and age but let's just say you know you're controlling 100 100 K's worth of the property Market by just putting 10k of your own liquidity into the market right and then when you sell that house you get to keep the growth the equity uh and the profit on the capital gains of the house and then you give that you know you give whatever's left that you owe back to the bank and then you keep the rest right and that's basically leverage we're leveraging a mortgage product in the housing market now where this is uh similar in trading is the broker will lend you money to place a trade to control a much larger portion of the Forex Market or you know stock market and you might have seen some horror stories on Leverage in the in the you know of Game Stop and all these kind of horror stories where um you know people got washed out of the market because they were getting Margin Call and I'm going to talk about that in a moment but this is this is essentially how it works Forex Trading for instance is traded in specific um amounts called Lots okay so a hundred thousand a standard lot is a hundred thousand units of Base currency a mini lot is 10 000 units of Base currency and then a micro lot is one thousand units of Base currency so let's just say that we were trading two mini Lots on the Aussie dollar okay and that the notational value of that trade is twenty thousand dollars okay if the Leverage is one to one that means you just have to put up twenty thousand dollars to let's just say that it moves a hundred Pips let's just say that you get a two hundred dollar profit on that 100 pip move okay well not everyone's got twenty thousand dollars in their account and not only that would you want to put twenty thousand dollars at risk just at work just to gain a two hundred dollar profit well Brokers recognize this and they know that everyone's got a twenty thousand dollar account or even ten thousand dollar account so what they'll do is offer some leverage and what the Leverage is is the same thing as a mortgage they're they're borrowing you the rest okay so that you can place the trade control a bigger portion of the market and then get a profit and then pay them back what they're owed and then you keep the rest okay so if the Leverage is a hundred to one which is is known to be that same trade example that I just gave you instead of having to put up 20 000 for the trade to gain a 200 profit you now only have to put up two hundred dollars and you'll end up with the same profit if we get 100 Pips profit now the reason this is a double-edged sword and you need to approach this with with caution is yes we can earn much more money and we can uh you know the profits are great and uh we can use it to our advantage but it's also a double-edged sword because if it goes in in a you know against us you know we can also lose a lot of money and the way that Brokers manage this much of the time is something through called a margin okay so basically when you get into a trade the bit that you put up and the bit that they put up the bit that they put up is called the margin okay and they say okay we'll put up this much and we'll match we'll match you say and uh and if you go below that amount you need to either put more in your account to match out match you know to make up for our part of the the the the deal or we'll close your trade and a lot of Brokers they just close off trades without you even knowing they just that's called a margin call okay when you get notified and sometimes they just close off your trade the reason it's dangerous is because this could be infinite you know if you keep funding the account and it keeps going against you and you keep finding your account that's where you end up in a situation like what happened with GameStop you know and uh it's called a short squeeze in the stock market where all the Traders are you know the Market's going against them and they've borrowed money to short the market and now they've got to keep funding it uh covering their position with the broker uh or they'll go you know until they go bust and that is a that's a major major problem it's it's infinite downside so you just need to be aware of that and one make sure you've always got a calculated stop loss that's uh you know a fraction percentage of your entire account use risk management rules well make sure that your broker does uh have your back and closes off your order and your stop losses and fixes those spreads make sure that you understand what you're getting yourself into when you're using leverage okay and uh and just you know approach it like a professional if you if you approach it like a professional you are going to have better long-term results sustainable results that won't get you in a bit of a pickle all right so over the course of this beginner program we've been through what to expect your expectations what you need in terms of the gear we've looked at charts we've looked at platforms we've looked at Brokers we've also looked at strategy development you understand what a strategy is how to develop one how to test one how to really make it your own and then we went into risk management and we went into navigating around charts and placing orders and hopefully by now you have a much greater professional understanding of how to approach trading so that you can end up on the minority side of being a consistently profitable Trader but now I want to set you a challenge because you might have seen all these crazy trading challenges around where they've got some kind of underhanded agenda to take your money and give you no real value with the promise that they're going to fund your account and you pay to get in and they know that most people don't make it as a Trader because they don't teach you anything and you know they know that ninety percent of Traders fail so and then they put pressure on you to actually make money in a set amount of time which is completely against everything that you need to do as a professional Trader and every professional Trader understands that so I was looking at all these challenges and I thought I want to set my own challenge I am so confident looking around at all the crap that I can take especially after you doing this that I can take someone off of the street and I can get them trading consistently profitable on a live account within 30 days now what's more valuable punting your money into some broke into some broker and some prop desk challenge with the hope of being able to get through and then replicate that going forward or ensuring that you know how to be a professional Trader and you're ready to trade live after just 30 days so I'm gonna host the 30 day challenge and not only are you going to get around a mentor which is one of the most beneficial things any person can do to be handheld through their new endeavor you're also going to learn about how to develop strategies that really suit you what other indicators that I use that you can use to implement into your strategy to give you an enhanced Edge I'm going to talk about the buying and selling and who you're actually buying and selling from and the Dynamics of that so you understand that better I'm going to delve deep into the platform and all the features and functions so that you understand how to use the tools that you've got at your disposal like a professional and then I'm going to talk to you about all of my strategies I'm going to give you all of my strategies all my templates all my watch lists and I'm going to show you how I trade in Trend ranging markets and reversal markets as well as using multi-time frame analysis to give me an even more enhanced Edge and I'm going to show you how I build my watch list how you choose balance sets of pairs of markets and my goal is to get you trading live in 30 days are you up for it if you got value from this the 30-day Trader challenge is just going to blow your mind and it's an absolute no-brainer and if you've watched this far this is definitely for you right we can both agree on that so get signed up it's not going to be one of those crazy things where they charge you thousands of dollars it's a tiny entrance fee you're going to come and work with me and the other guys going through the challenge and I promise you this you'll learn more and be more professional in that 30 days than you will anywhere else how do I know because I've seen it all so I hope you found this program valuable if you've got any questions at all fire them in and if you're ready for the challenge click on the link below get signed up and I'll see you on day one can't wait [Applause] thank you foreign

Channel: Jason Graystone

Views: 3,973,149

Keywords: Forex Trading, fx trader, how to trade forex, learn to trade, jason graystone, how much money can i make trading forex, options trading, how to trade bitcoin, knowledge to action, how much money do i need to trade forex, is trading a scam, financial freedom, earn money online, money, Trading for beginners, how to trade basics, free trading course

Id: _YVQN6_nkfs

Length: 146min 39sec (8799 seconds)

Published: Sun Jan 15 2023