So far I have shown you how we use support & resistance for entries, stops and targets. However the primary goal as a trader as Warren Buffet famously said ” The first rule is not to lose. The second rule is do not forget rule number one”!
to do list be a winner not a loser In this article I show you how you can use your new found skills to keep you out of losing trades.
Often traders miss what is staring them in the face when placing trades. As you will know by now forex appears to be amazingly simple with the benefit of hindsight.
TIP: before taking a trade, make a list of the reasons why you think the trade will succeed. Then make a separate list of all the reasons why it might fail.
Is there a major ema or trend line in the way that might kill your trade? What about whole numbers eg €1.3000 on the Euro at the time of writing is a MAJOR area where price is likely to bounce, at least initially. Therefore deciding to short a few pips above it would be highly risky/not recommended.
What would be a much better option is to wait for these major areas to break. Candles to close and then wait for a pull back entry. Only then should you take a trade. If you have a question or would like to comment please do so in the box at the bottom of the page.
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