Hey there. My name is Adam Wenig And in this quick video, we’re going to be talking about seven Forex trading gratuities that will instant improve anyone’s Forex trading decisions. I don’t care if you’re brand new to trading, or if you’ve been trading a while, or if you’re just looking for your periphery and finally looking to have your breakthrough with your Forex trading. I guarantee you this video is going to give you a lot of huge Epiphanies that are able to instantaneously improve your Forex trading reactions Hey Everyone! Adam, again, and in this video, we’re going to be talking about seven, Forex trading tips to instant improve your Forex trading answers.
And again, this will differ than most of the stuff that you’re being taught on YouTube. It’s different than the majority of members of the retail or what we call the herd trading advice. Now, if you are interested in improving your Forex trading, we come out with videos all the time on this direct to help construct your trading ELF easy, lucrative, and recreation. If you’d like to procreate your trading easier, more lucrative and more entertaining than like this video. So you get advised next time we have a new video come out and subscribe to our path. Okay, so let’s go ahead and let’s dive into this right now. Seven tips-off to instant improve your Forex trading arises. Okay. The first thing number seven. Okay. We’ll disappear from digit seven all the way down to number one. Number seven is to not use overbought and oversold indicators. Hello. This is totally different than what most people do.
Most parties educate some sort of strategy where you can simply given it up and use an RSI or something like a stochastic show in the great problem with these overbought and oversold indicators is, is that you’re forever trying to catch the tops and trying to catch the bottoms of world markets, which makes inherently you’re likely trading against present trends, which is one of the biggest drawbacks among retail traders. And on top of that, there are smart money or the banks and the market makers. They understand that everyone’s looking at these indicators. So that’s why so often you see that these overbought oversold indicators don’t really do anything to tell us about future cost. Overbought oversold indicators is simply telling us what’s happened. It’s a lagging gauge that kind of tells us what’s happened in the past. So if you’ll just stop, I know you may be thinking, well, how can I stop using this my whole straight-shooting? Well, if you’d stop using the overbought and oversold indicators, you’re going to have a lot more success and I’ll tell you what to do instead.
Okay. Number six is to simply trade with the trend, okay. Trading with the trend. You’ve probably heard this a million times. The vogue is your friend. Why don’t people make love? Why don’t beings make love? And I can give you proof that the vast majority of Forex traders don’t do it. Well, I don’t know. Maybe it’s because it’s hard to tell. Is there a trend or whatnot? So we’ve work it real simple. I use this little tool called the bank secret indicator. I’ll settle a associate in the specific characteristics.
You can try it for free for seven days and simply pay for it if you really like it. But basically this originates it really easy to see the timeframes and to see what’s happening. If it’s blue on these forbids, that means that it’s an uptrend. If it’s red, it means that it’s a downtrend. So for example, if I’m trading the H one timeframe, then I’m likely going to make sure that the timeframe above it is at least in the same direction. So I’m trading with present trends, both the H one and the H four. And ideally, if it’s also in the daily, then that’s even a bonus, right? I be noted that the H one H four and daily, they’re all in an uptrend, which be interpreted to mean that I’m only going to be looking for buy arrangements.
If you’re looking for sell plights, you’re shooting yourself in the paw. So don’t do that. You want to trade with the trend? Absolutely. The veer is your friend. This indicator builds it really, really easy to see that number five gratuity is to trade the H one timeframe or above. Why do I tell you to do this? Because this is what the smart money does. The retail traders are what’s called the herd or the uninformed. They like to trade the lower timeframes. Like they’ll try to use the M1 or M5, M15 But examine, the reality is if you’re trading these timeframes, like it’s traumatic, it’s hectic, your ardours get involved too much in these lower timeframes. You originate feelings decisions. And on top of that, it’s cloudy. It’s muddy. The zones are not truly solid. They’re on those lower timeframes as they are in the higher timeframes, like the H one H four and the daily. I have a friend of mine that was a professional Forex bank trader for many years. He says that the banks, they really only look at the H four and the daily timeframe.
This is where the smart money examines. So if you want to be like the smart money and unlike the 95% of the herd that loses fund all the time, then merely transactions the H one timeframe or above. Number four is to use at least a one-to-one risk to reinforce fraction. This is a huge flaw among so many Forex buyers is that using skewed jeopardy to reward rates. Now, let me break this down for you with actual real data. Now here’s the problem. You can see that this data was gathered in from over 43 million swaps that pulled in from various, uh, retail, Forex sellers. And you can see that on the Euro us dollar now, you can actually be understood that the, uh, the herd was able to predict a prevail transaction 61% of the time, which is great.
I intend, so how, if people are able to predict earning commerce’s the majority of the time, how come they’re not actually profitable? We know that the herd is 95% unprofitable or net losers. If they prophesy it more than half the time, how come they’re actual losers. And the answer is, is because the losses were 70% bigger than their wins. The average losing transaction was 83 pips. And the average winning trade was 48 pips in this 43 million business pretending. Uh, that was actual trades that “re coming back” from retail traders. And you can see here, this is the average loser versus the average winner. And you can see that the risk to reinforce fraction is all backwards, like genuinely, actually inadequately backwards.
Now simply precisely applying a one-to-one risk reward. Ratio has major, major advantages. If you look at this graph right here, “you’re seeing” parties that used at least a one-to-one risk reward fraction versus beings that did not. And according to this data, it has indicated that 53% of all accounts that operate at least a one-to-one risk to reward fraction turned a net profit in this 12 month test date. And those who operated under a one-to-one risk reward fraction, a mere 17% of those notes were productive. So look at this simply by means of a one-to-one risk to reward ratio, you’ll increase your peculiars drastically.
You’re three times more likely to be a profitable Forex trader. If you simply use a one-to-one risk to honor ratio, amount three is to trade Contra crowd. Now, what does that planned? Well, the market’s made up of two different participates, right? There’s the smart money, which is the banks is the institutional buyers. This is the hedge funds. These are the, uh, the smart money, the people that are winning the majority of the time. And then the other side there’s, what’s called the herd or retail traders. And as we know, 95% of the herd are actual net losers. So here’s an interesting theory. If we know that the herd is almost always net losers, why not only do the exact opposite, what the herd’s doing, and if you time did the opposite and you are well aware, that they lose 95% of the time, the likelihoods are you’re actually going to be able to earn simply by trading against what the herd does. So I like to use this bank’s confidential benchmark. Like I testified you, you can use it from MyFXbook.
I think they have a implement as well, where it gathers in the market sentiment. Okay. And “its what” I like to see here. So this is basically pulling in data from hundreds of thousands of retail traders, from MyFXbook, from different agents. And it’s calculating. So “you’re seeing” what the herd is doing. So in this scenario, you can see that the herd is 88% short and 12% long. Now, if we know that the herd is vastly wrong, the vast majority of the times, then would it make sense that we’d only want to look for buy positions. Well, yes, perfectly. That altogether represents gumption. And you can pull this up on any timeframe and “you’re seeing” what the herd is doing in this scenario. You can see that the herd is short, right? You can see that the herd is shorts at 80% versus long 20%. Okay. And it doesn’t really make sense considering if you look at all the blue bars now, I mean, it’s pretty much in an uptrend on everything besides the monthly.
So why would they be short? It doesn’t make any sense. And I’m going to talk about this and the number one tip. So make sure that you stay aria, but this is number three is to simply trade contract Crowd or against what the herd is doing, because automatically you’re going to align yourself with the smart money. Number two is to trade with tiny loss, but big wins. Okay. And this kind of goes into the same thing that we’re talking about earlier about employing a positive likelihood to reward rate. But the great problem is, is that people, they will virtually wait their solid rush gamble, but they’ll cut off their fast rush reinforces. So let me show you a diagram to actually show you what I’m talking about. Okay? So this little depiction here shows what actually happens. Most parties think that their trading falls into a normal bell shaped curve.
Statistics go back to statistic class, basically anything transgressions in a bell shaped curve. If you look at children Heights, the vast majority of Heights will fall in within, you know, one to two standard deviations away from what the median is here, right? Uh, if you look at incomes, it’s the same thing. Pretty much everything in life follows a regular bell shaped curve, but in the market trading does not. There’s what’s called solid rushes where this is the chance of you like having a big solid posterior reinforce in your spare. And this is the chance of you having a big fat tail loss in against your spare. Uh, and you can see this red line is what the market actually looks like. These big overweight fannies do exist, and parties tend to ignore this. So their own problems is, is that beings, when they’re trading, they’ll stand these fatty fanny risks happening there, but they’ll cut off their fat tail reinforces.
You’ve ever heard the, you are well aware, people talking about, you are eligible to never go broke taking a profit. And the answer is, yeah, you actually could go broke taking a profit. If you have a poor risk to reinforce rate and you don’t let your solid tush wins write out, but you let your solid posterior losers drag out and an easy way to do this. If expending these sort of Martingale or cost averaging structure where you’re continuing to stack on losing slots, when a trade is going against you, then you’re opening up this ability to lose fat, like to lose the, you know, have these large-scale losses regular than bigger than ordinary loss.
And also, you are well aware, if you’re using a Martingale or cost averaging structure use, you’re just trying to get a little bit of profit, right? Or you’re just scalping a little bit of profit. And again, if you have these big give revenues in these massive stop losses, this is just a recipe for “blow ones stack”, it’s going to happen. And again, why is that? So, because you’re limiting the solid fanny wages and you are allowing yourself to have access to the fatty posterior, uh, damages, the extreme loss that can happen. So again, the key here is to keep your losses small and to obligate your winnings large-scale. And how can you do that? One of the best ways that you can possibly do that is by trading with present trends, having a favorable probability to reward rate and actually exercising chase stop damages.
If you use a drag stop loss, this allows you to trail. And if the market genuinely goes in your regard on these big-hearted veers, which happens as you can tell what these overweight posteriors, then it allows you to capture the large-hearted overweight fanny wage dissolve of the range. And the number one tip is to simply do not try to catch transcends and rushes. And this is it’s so aggravating because this is what the vast majority of beings, teaches, they just teach you okay to buy low-grade and to, to sell high-pitched, right? We’ve been taught that our whole life has been ingrained in our whole life.
But their own problems is, is we don’t know how low-toned the lows are going to be and how high the highs are going to be. So trying to time it can be ruinous for your Forex trading. And I’ll precisely draw this up to show you a immediate example. If you look at the AUD USD chart here, you are eligible to simply see that this isn’t an uptrend. It’s a very clear uptrend on the M one M five and 15 and 30 H one four eight for our daily, weekly. It’s all in an uptrend.
But what is the herd trying to do? As you can tell, the herd is 80% short. What does that aim? The herd is thinking that the market has overextended and, uh, the market is overbought. So they’re trying to sell, as you can see their short-lived standings, 80% now, the largest part of them are trying to sell. And this is why the herd comes hammered in these sorts of situations. When these trends appeared, they keep trying to catch the top, keep trying to catch the top, keep trying to catch the top until eventually they blow their history, or they have a huge loss that they incur. So simply not trying to catch the tops. And the bottoms is an amazing idea because it stops you transactions with the trend. It allows you to have positive peril to reward fraction.
And, uh, it’s just something that’s automatically going to align you with the smart money. Okay? So these are seven tips to instantly improve your Forex trading decisions. And again, if you liked this video, then is moving forward and consider subscribing and watching some of our other videos. Also, if you wanted to get access to the bank’s secret indicator that I demo you here, you can get it for free. I’ll include a tie-in in the description below, so you can get that out and check it out free of charge and only pay for it if you’d like it. And too at the same time, when you do sign up, we’re actually going to give you be made available to our favorite trading algorithms as well as a bonus. So go ahead and do that. Now. Taking any decision. And we can’t wait to see you on the next video.
Learn How To Trade Forex Click Here
Read More: The Most Important Skill In Trading Compounding Money