Forex Technical Analysis GBPUSD 16 AUG

Forex Technical Analysis GBPUSD 16 AUG

This is one of my favorite trade setups.  Selling resistance on the upper parallel of a channel.  Watch as I discuss this precise entry at the convergence of multiple resistance levels in a tight zone.  Risking 15 pips to make 80-90 pips.  Another low risk high probability setup for your educational purposes.  

Enjoy!  

Gregory King

What is the best forex trading method in existence

What is the best forex trading method in existence

It’s a silly question really – ‘what is the best trading method?’ – because to each trader and each situation, the answer is going to have a number of different options. There is not simply a single method which constitutes the best trading method, because the fact is there are several out there each as successful as each other in different ways. The secret is sticking to your trading method and planning for the worst. These two points constitute the best trading method around, because they are going to make you a successful trader in the long run.  Many traders disregard the benefits to be gained from planning for the worst, with the mistaken belief that the best trading methods derive from focussing on the best. Planning for the worst will cover your winning trades and your losing trades. Here’s how.

Why it’s good to plan for the worst

Why plan for the worst? A lot of traders have the potential to do great things with their skill, but are hindered by one major error which renders even the best trading method pointless: planning for the best.

The fact is, we all want the best outcome. You’d be daft not to. But here’s the clincher: If the best outcome falls into place, then providing you’re sticking to your foreign currency trading system then there is nothing you need to do. Why would you make plans based on an eventuality which, if it comes about, would require you to do nothing?

Your best option is to plan for the worst. Nobody wants the worst to happen – and this is what makes planning for the worst so difficult. By planning for the worst, it is almost like allowing yourself to believe that it might happen. But the best trading methods out there always plan for the worst, because it will benefit you as follows:

• If the best outcome occurs, you’re a winner

• If the worst outcome occurs, you’re prepared and able to deal with it

But isn’t the best trading method all about numbers, figures and facts?

This fact is absolutely true – but the best trading method is useless if you can’t follow it. If you focus on the winning points and neglect the losing points, it’s those which are going to rise out of the darkness and snap you up when you least expect it – when in reality, you should have expected it, should have anticipated it and should have been equipped and prepared to deal with it.

The wins come from the consistent application of a solid trading system. The success comes from your ability to follow such system. These two points combined make the best trading method any trader could possess.

The Best Forex Trading Method – Is Trading In Your Emotions

The Best Forex Trading Method – Is Trading In Your Emotions

It’s been said by so many successful traders that to become a successful FX trader you have to become effectively emotionless. It’s not always an easy task, but if you allow your emotional mindset to influence your decisions, you could have the best trading method going but it is still going to end up failing you.

How to separate your emotional mindset from your logical mindset

Some traders are lucky enough to have a more logical mindset inbuilt into their brain, and it’s these traders who are generally more successful. But providing you can separate your emotional mindset from your logical mindset, you have the ability to turn a good trading method into the best trading method – because the best trading method after all is your ability to sever ties with your emotional mindset.

Here’s a useful point to dwell on, and by repeating it to yourself often you can help your brain to understand the need to only apply logic and method to your trades:

The market will do what it does. Nothing you can say or do will change that. Regardless of what you do, the market will do what it does.

As such, the most important thing you can do is not cross your fingers and hope for the most desired outcome, but rather plan for every eventuality.

Many foreign currency traders have fallen into the pit (whether consciously or subconsciously) of almost believing that they can change what the market does. They can’t. Not even the best trading method has an influence on what the foreign currency trading market will do. The only way to face this pit and get over it, is to have the best trading method possible which will plan for every eventuality:

You cannot control the outcome, but you can be ready for whatever happens.

Traders who cannot separate emotion

If you are the kind of foreign currency trader who has difficulty separating logic from emotion, then this piece of advice probably won’t rest kindly on your ears, but it is absolutely true:

You are better off working another trade.

The fact is, many traders know that the method they are using is wrong. They know what it is letting them down, they know the best trading method to use – but because the best trading method in their particular circumstance doesn’t feel quite right, they can’t bring themselves to implement it, and as such continue to trade in a manner which is driven by emotion and instinct.

Emotion and instinct will hold you as a slave, and until you can learn the best ways to break free of their spell, you will never find the best trading method and have very hard time to make a consistent and successful foreign currency trader.