forex training Archives - Professional Forex Trading "Live" With Rob Taylor

The Importance Of Getting Forex Training From A Professional Trader.

February 23, 2018April 7, 2018Rob Taylor

I tell you what really pisses me off. Forex training providers that are taking peoples money and not delivering what they promise.

Like many people I speak to, you may have paid for a Forex training course that has promised to teach you how to become successful but has failed to deliver on that promise.

I was prompted to write this article by someone that contacted me this week, who had paid many 1000’s of pounds for a Forex training course in London that promised to teach him how to trade. When he told me his story I felt sick and very angry to think that he had been conned by this so-called trading academy.

Why are these companies allowed to still be in business when they are teaching people the same old crap that you can get on YouTube for free. It really is past a joke now, something needs to be done to stop these companies taking money from people with false promises.

Some of the largest training companies are the biggest culprits here. There needs to be some regulation in place to stop these people from churning out this crap and taking peoples money.

Ok, rant over.

If you have been a victim of these con men I would like you to email me and tell me your story.
I will not publish or divulge any of the information you share with me, everything will be confidential.

The value of professional training.

You cannot put a price on the value of getting professional Forex training from a professional Forex trader. Everyone I teach is blown away by the quality of the education I give them. It gives me great satisfaction to know that.

One guy I was teaching this week who had been trading almost 10 years, said, after his first lesson with me he just sat there dumbfounded by what I had just taught him. Almost 10 years he had been following retail trading strategies without success, and now he’s on his way to trading with professional trading strategies that do actually work.

People say why do you teach? I say because of the reaction I get from my students when I tell them everything you have been doing for the last 10 years was wrong, and this is what you should have been doing.

Thanks for visiting my site. Have a great weekend.

Is Fundamental Analysis Better Than Technical Analysis?

June 28, 2016Rob Taylor

I am not going to name names here, but i was watching a video from a well respected Forex training provider today, and it prompted me to write this article.

His training course is heavily weighted towards the premise that you will have more success if you use fundamental analysis rather than technical analysis.

The provider stated that professional traders, hedge funds, investment banks etc, are 80% fundamental and 20% technical. All of their trading decisions are based on macroeconomics and they are just using a 20% technical approach to help with market entries.

Now this is all perfectly reasonable, and i teach fundamental as well as technical analysis in my training course, but is fundamental analysis better than technical analysis? I don’t think it is.

Fundamental analysis will only give you an opinion of the market direction, and opinion is subjective. Sometimes your opinion is correct, and sometimes its incorrect. Just because you think something is going to happen, does not mean it will happen.

There has been a strong fundamental case for a number of months now, for the BOJ to expand on monetary easing, but they have not done it as yet. So if you have been buying yen pairs based on that, then you are in a bit of bother right now.

Putting fundamental analysis to the ultimate test.

Now is a great time to put fundamental analysis to the ultimate test. Lets take the Brexit vote for example. Now if Fundamental analysis was the best thing since sliced bread, and you were a hedge fund trader, or an investment bank, you would have been on the right side of the Brexit move.

Now do a search on Google to find out how many of these guys were on the right side of that move. There are 1000’s of hedge funds and investment banks, but it seems only 1 guy made any serious money on the move. And that was Crispin Odey. Crispin is a well respected hedge fund guy and he made 220 million on Brexit. See Brexit buccaneer rakes in £220million.

I would just like to point out that Crispin manages an 8 billion fund. So although he made 220 million, he only made a 2.75% return on that particular trade. Yes i agree its not too shabby, but people need the facts i think.

If the title of the article was “Brexit buccaneer rakes in 2.75%” it would not have the same ring to it now would it. 🙂

Here are a few sentences from that article.

A hedge fund tycoon made more than £220 million for himself and his investors yesterday after betting on Brexit.

As many in the City nursed heavy losses, staunch Leave supporter Crispin Odey declared: ‘I think I may be the winner.’

He is one of a handful of hedge fund bosses to have hit the jackpot after taking big ‘short’ positions on company stocks and sterling, betting on their value falling in the aftermath of a vote to Leave.

Now please pay attention to the words “a handful”. So out of the 1000’s of investment bankers and hedge funds a handful got it right.

If you actually looked at all the trades that were taken in the hours of the Brexit vote, you would probably find that traders that rely solely on technical analysis, did far better from that move than the fundamental guys did.

Mr Odey also revealed his trading position had left him in line for huge losses if financial markets had risen, and he had lost his gamble.

So he picked a side, and gambled his investors money, and was correct. Do you think we would have been told about his huge losses if the gamble had gone against him? Well you are not hearing about the other hedge fund guys who gambled the wrong way are you.

Can i just make a point here that i do not like the word gamble, as trading is not about gambling. You take calculated risks based on high probability, and the higher the probability, the more success you will have.

So why do hedge funds and investment banks rely heavily on fundamental analysis and not on technical analysis?

The main reason is, they are managing huge sums of money, and they cannot enter and exit the market as a retail trader would. They have to build up a position, and an opinion over time, they add or subtract from that position as the fundamentals change.

To enter and exit the market with one trade would not only spook the market, it would also leave them in a vulnerable position should the market move against them. They have to hedge in and out of the market, building up an average price for their holdings, hence the term hedge fund. This strategy leaves them less exposed to currency fluctuations than they would be if they were all in, all out.

Retail traders can trade this way too if they know how to do it, but it does not mean that this way is better. It does not mean that fundamental analysis is any better than technical analysis, its just a safer way to trade large sums of money.

How i trade the Forex market?

I personally trade 70% technical and 30% fundamental. And when i say technical i am talking about reading a chart rather than reading a news story. People get technical analysis confused with indicators. They think that technical analysis is putting moving averages on your chart and waiting until they cross.

I trade by reading a chart correctly, and understanding what makes the market move. If you look at my article on the Brexit trade, you will see that the trade was purely based on chart reading. No fundamentals were involved at all in that trade.

Almost everyone that trades fundamentals got that trade wrong, but if you had been trading primarily from a technical standpoint, you would have had a much better chance of success.

So to all the trading providers out there that are telling people the reason they are losing money in the market is because they are trading technical analysis i say this.

The reason they are losing money is because they do not know how to trade.

It has nothing to do with fundamental or technical analysis. You do not need to know anything at all about fundamental analysis to make money in the Forex market, and that’s 100% true and i can prove it.

Fundamental analysis is not the answer to consistent profitability.

So if you are a technical trader that is losing money, and you are considering paying some of these training providers to teach you how to trade fundamentals like hedge funds and investment banks, just think about the Brexit trade. I am not saying what they teach is not going to help you, but its not the answer to consistent profitability that they make it out to be.

Courses that offer to teach you the fundamentals of trading are the in thing at the moment, and a lot of training providers are jumping on the bandwagon to offer this because of the failings of traditional technical based training providers.

Some retail traders think that by taking a course on fundamental analysis they will find the holy grail, but this is not the case. Fundamental analysis is just one approach to trading, and it does not guarantee you trading success. I make a lot more money in a lot less time with my chart reading skills, than i could ever make by following fundamentals.

I know what these guys teach, but they do not know what i teach. So just think about that, when you are considering whether to pay these guys, or to pay me to teach you how to trade.

You get the best of both worlds with my training course. 🙂

How To Identify Supply And Demand Areas

August 3, 2014December 28, 2014Rob Taylor

Knowing how to identify supply and demand areas on a chart will help you to make more informed trading decisions.

What are supply and demand areas?

Supply and demand areas are all over a chart on every time frame, supply and demand makes the market work, as it creates an imbalance in the market, and that imbalance is what makes the price go up and down.

For example: Prices move up and down on perceived value. Say Euro Dollar is trading at 13500. Some people may think that is expensive, some people may think that is cheap. The people that think its cheap are buying, and the people that think its expensive are selling.

Now, if you have an equal number of buyers and sellers on both sides, then price will stay at 13500. The currency has reached its fair value according to buyers and sellers. Price will stay at fair value until an new imbalance of buyers and sellers is found. As new buyers and sellers are continually coming into the market, fair value can last a few seconds, or price can literally trade around the fair value area for ever in theory. Until a new imbalance comes into the market, the price will not move from the 13500 area.

Its not just about the buyers and the sellers.

Now consider this, its not just about the buyers and the sellers in the market, its also about the price.

Price is the most important thing in Forex trading, and you should never forget that.

To create an imbalance you must have more buyers at a higher price than the current price, or more sellers at a lower price than the current price. You may have more buyers than sellers in the market, but the price could still go down. Or you may have more sellers than buyers in the market but the price could still go up. How does that work then? I will try to explain.

Say you have 1000 sellers around the 13500 area, but you have 100 buyers that are buying from 13480 up to 13520. Sellers out number buyers 10 to 1, but if the cumulative value of their sell orders, are not larger than the cumulative value of the 100 buyers orders, then price will still go up. The total value of the buy orders, are worth more than the total value of the sell orders, so the demand for Euro Dollar is outstripping supply, so the price continues to go up.

When the last of the buy orders are filled at 13520, and just another 50 sellers come back into the market at 13520, and the cumulative number of sell orders is outstripping the now very small amount of cumulative buy orders, you then have more supply than demand and the price will do down. So to recap, more cumulative supply and the price goes down, more cumulative demand and the price goes up.

How to identify supply and demand areas.

Now this is the tricky bit. How do you know when supply is outstripping demand or vise versa? And more importantly, how do you know when fair value has been reached? and how do you know when supply will change to demand, or demand will change to supply?

This is the holy grail as far as Forex trading is concerned. If you can identify when price will switch from supply to demand, or demand to supply, you are effectively identifying key reversal levels in the market. And if you can identify these reversal levels in the market with high probability, then you have a license to print money. A lot of what i teach in my Forex training course is about how to identify key reversal levels in the market.

Identifying these reversal levels is not as easy as it may look though. Well unless you have access to every brokers order book, which you don’t. So in the absence of every brokers order book, you have to study the chart to identify possible supply and demand areas from which to buy and sell. I cannot go in to detail about what i teach in my course, and how i identify reversal levels in the market, but you can use previous areas of supply and demand, as possible new areas of supply and demand, rather like a trader would use previous support and resistance levels, as possible areas to buy and sell.

The chart below shows you how previous supply and demand areas are respected, and how trading long and short from those areas would have produced nice profitable trades.

Rather like support and resistance levels, sometimes old supply and demand areas produce some nice trades, but also like SR levels they don’t always work. The skill is in knowing which ones will work, and which ones will fail, and i can teach you how to identify the supply and demand areas that will work, which will enable you to take high probability profitable trades from those areas.

What Is Advanced Price Action Forex Trading?

March 2, 2014January 10, 2020Rob Taylor

What i trade and what i teach is advanced price action Forex trading. There is lots of free information online about price action trading, some good some not so good. I have some free info on here about price action set ups like how to trade pin bars or how to trade outside bars, but its just basic stuff that you can find on many free sites. Don’t get me wrong this information will help you in your trading, but it will not enable you to make money consistently, week in week out from your trading. To be consistent you need to understand advanced price action Forex trading.

So what is advanced price action Forex trading?

Advanced learning by its nature is to learn something at a higher level, so you are learning price action trading at a much higher level than the majority of price action traders. Every candle on a chart is a representation of price action over a set period of time. A daily candle is made of six h4 candles, 24 h1 candles, 96 15 min candles, or 288 5 min candles. To really understand what is happening in a daily candle, you have to understand what has happened on the lower time frame candles. This is part of advanced price action Forex trading as i see it. We break every candle down, and understand what is happening on the smallest time frames, to give us an indication on which way price is most likely to move.

If we notice a price action set up on a higher time frame, we can also use the lower time frames to give us a great entry point. Traders that trade the daily and weekly time frames have massive stop losses, we can enter the same trade at a precision entry, and have a much tighter stop than they have. By studying the lower time frames, we will also know if the trade is going to fail before they do. Whats the point of being stopped out for 200 pips. If you know the trade is going to fail, you can take a much smaller hit instead, many times you can get out with breakeven.

Why so many Forex traders lose money.

As you are probably aware the majority of Forex traders lose money in the markets, and the reason for this is that they only have a basic understanding of Forex trading. To be a consistently profitable trader, you have to have a complete understanding of what is happening to price on every time frame, from the 1 min chart, right up to the monthly chart. When you have this understanding, and you know what makes the market move, you can enter and exit the market safely, and make profits consistently.

What the experts say, lol.

Many so called experts will tell you that you cannot make money trading the lower time frames, because price is too volatile. You need to trade the daily and above to be successful. This is complete rubbish, and anyone that says this does not fully understand advanced price action. There are many well respected price action traders, that sell their courses to people on the understanding that this is a fact. The only good thing about trading the higher time frames, is it takes longer for you to lose your money, as the set ups on the higher time frames are less frequent. This is great for the people that sell these courses, as they will have more time to fob you off, and you are less likely to demand your money back if it takes you 12 months to realise their stuff don’t work.

What other websites are saying.

A lot of websites make bold claims that they can teach you advanced price action Forex trading, but they are mostly teaching you how to trade pin bars off support and resistance levels, or doji’s or engulfing candles of the same levels. They are teaching you how to read price action after it has happened. Anyone can teach reversal signals on daily and weekly time frames, but how many people can teach you how to get in right at the top of a pin bar, or an engulfing candle, before the candle has even formed? That’s what I’m talking about when i talk about advanced price action trading. Identifying pin point entries and exits on the chart, whether you are trend trading, or counter trend trading, that’s real advanced price action trading.

Many paid Forex training courses are a complete waste of money.

The majority of paid Forex training courses are a complete waste of time and money to be honest, and there are many experts that claim to be able to teach you how to trade, but they will only teach you basic stuff that you can find online for free at babypips or similar sites. They will not teach you how to really trade, because they do not know how to really trade themselves.

Before paying these people ask yourself “if this guy can trade why is he selling me a course for a few hundred bucks” and you will get your answer. The reason my course costs almost 4k is because its worth a 100k. I am a professional Forex trader, and what i can teach you will transform your trading and change your life. If you want the same old rubbish that you can get online for free, keep throwing away your few hundred bucks, plus all the time and money you are losing while you are testing this rubbish, before you find out its the same old stuff yet again that does not work.

Don’t get me wrong just because you pay 1000s for a training course, does not mean it will be the real deal. There are also many companies that charge a lot more than i do, and their training courses are just as bad, if not worse that the ones you can get for a few 100 bucks. These big Forex training organizations have huge marketing budgets, and they can make it sound like Forex is they key to making a fortune very quickly. You need to be really careful of these companies. I have heard stories of people that have paid these companies 25k and they still cant make money. How these companies are still allowed to operate their businesses is beyond me.

Forex Trading is not easy at first, and you need the right education.

I will be honest with you, Forex trading is not easy at first, and you are not going to make big money from it right away. Its a hard job that has to be learned fully if you want to be successful consistently. I can give you the right education, but its up to you to put in the time required to make yourself successful. What i teach is not a get rich quick scheme. If you can imagine Forex trading as a journey. I can take you 80% of the way very quickly, by teaching you stuff that could take you 5 or even 10 years to learn on your own, stuff you really need to know in order to be successful, but you need to invest chart time and practice what i teach, to complete the rest of the journey. With my support of course. 🙂

If you are prepared for a little hard work initially, then Forex trading will become a lot easier as you progress.

So if you are reading this and thinking “how do i know that you are not another con artist that is going to take my money and give me the same old rubbish i have paid 300 bucks for”. Well the short answer is you don’t. But you are welcome to contact any of my students for a review of what i offer, and they will tell you i am the real deal, and what i teach is true advanced price action Forex trading.

As Morpheus says. All I’m offering is the truth. Nothing more.

How To Stop Losing Money In The Forex Market.

August 31, 2013January 10, 2020Rob Taylor

Why do Forex traders lose money? There are many reasons why Forex traders lose money, but in this article i will give you 10 top tips on how to stop losing money in the Forex market.

Knowledge is power.

The most important thing that you need to be a successful Forex trader is knowledge. Knowledge is everything in Forex trading. The more you know about the market the more successful you will become at trading.

There are many websites available online that will give you a certain degree of knowledge to enable you to trade Forex, but 95% of these websites are run by marketing companies, or failed traders, so the knowledge you get from these websites will enable you to trade, but they will not give you the understanding you need to enable you to make money from Forex trading every week.

Its a fact that 95% of Forex traders consistently lose money. And the main reason for this is they do not understand how the market really works, because they have never been educated by a professional Forex trader. I am a professional Forex trader and i can teach you how to trade Forex, and make consistent profits week in week out from trading, but my time is limited so i cannot teach you for free. For more information on my Forex training course please click on the link.

If you do not have the funds available to pay me to teach you how to trade Forex, here are 10 top tips you can use to enable you to cut down on your losses.

1. Don’t trade with more money than you can afford to lose.

Putting pressure on yourself will cause you to make the wrong trading decisions, and trading with more money than you can afford to lose will add to that pressure.

2. Don’t over trade.

Over trading can lead to an emotional roller coaster. If you are taking too many trades you are trading emotionally. Trading should be as mechanical as possible. Emotional trading will lead to big losses.

3. Don’t be greedy.

If you have had a couple of nice trades and banked some pips enjoy them. Don’t think you are on a roll and chase after more pips. This often leads to more risk taking and you end up giving back the pips you made, and some.

4. Don’t revenge trade.

Getting back into a position straight after a losing trade is called revenge trading. When you trade this way you are trading purely on emotion, and you are chasing those lost pips. If you have a losing trade, just sit back and relax, and take some time out to re focus your mind.

5. Don’t over expose yourself to a losing position.

Chasing after a losing position is probably one of the worst things you can do in trading. Adding to a losing trade in the hope that the market will come back will cost you big time. Just admit that you got it wrong and close your trade, and move on.

6. Keep a record of all your trades.

Keeping a record of all your trades may give you some insight into your trading habits. Do you trade better in the morning, or in the evening? What is your average win loss ratio? How many trades are you taking per day? How long are you holding your trades for? Understanding your trading habits will enable you to become a better trader.

7. Trade with a lot size that you are comfortable with.

This is a mistake that a lot of traders can make that will dramatically effect their trading performance. If your lot size is too big, you are anxious when you trade, so you close trades too early, and you stop yourself out of trades too soon. If your lot size is too small the reverse happens. So you need to trade with a lot size that feels comfortable, but not too comfortable.

8. Devise a rules based trading method and have a reason for entering and exiting trades.

You have to have a method. You cannot blindly enter the market in the hope that you will get a winning trade. You have to trade based on a rules based method that has been tested over time and is proven to work.

9. Be patient and wait for the set ups.

When you have your rules based method in place, stick to it. Wait for qualified set ups before entering the market.

10. Don’t rely on indicators to give you trading signals.

The majority of Forex traders rely on indicators to give them trading signals. If trading was that easy everyone would be making fortunes from trading, but that’s not the reality is it. If you want to be successful in Forex trading you have to learn to read price action. Price is the most important thing in trading and it always will be. If you understand price action you will be a much more successful trader.

If you enjoyed this article and you think it would benefit other traders, please like it on Facebook share it on Twitter, or bookmark it using the buttons below. Thanks for visiting my blog and have a great trading day.

Can You Use Price Action Trading For Scalping The Forex Markets?

August 10, 2013January 10, 2020Rob Taylor

I am a great scalper, and price action trading can be a very successful way of scalping the Forex markets.

What is scalping the Forex markets?

For those of you that are not aware of what scalping is, its basically the process of entering and exiting trades very quickly for just a few pips profit. Scalping trades can last anything from a few seconds to a few minutes. Scalping can be a really effective way of making money from Forex trading very quickly, but it can also be a very high risk strategy if you do not know what you are doing.

Many traders end up as scalpers, as they do not really understand the markets, so they try to jump in and out of trades quickly, and make a few pips on each trade. When you do not understand how to scalp effectively it becomes a very high risk Forex trading strategy, as scalpers tend to have much larger stop losses than other traders, some scalpers even trade without stop losses.

If a bad scalper enters the market at the wrong time, price can quickly move against them, and a series of half a dozen winning scalping trades, can be wiped out with one single losing trade.

How can price action trading be useful in scalping?

Price action trading is all about understanding price, and predicting with high probability what will happen next. To be a successful scalper you need to have a complete understanding of price action trading, this will enable you to enter and exit the markets with precision and take your pips effectively, rather than just jumping in and out, and hoping you make some pips. This type of reckless trading is very stressful and can be very costly, and should be avoided at all times. Trading should be relaxed and calm, and you should be entering the trade logically, and with a complete understanding of what price is likely to do.

Can you teach me how to be a successful scalper?

The short answer is yes. I teach advanced price action trading. What i can teach you is as close as you will get to a perfect trading strategy. That is a bold claim i know, but i am 100% confident in what i do, and my strategy if followed correctly will produce a 90% plus win rate, so if you want to be a scalper following my strategy will make you a great scalper, if that is what you want to do.

When you have completed my Forex training course you can trade how you want to trade. So if you want to be a scalper, you can do that, if you want to be a swing trader, you can do that. Whatever trading style you have, or wish to have, you can apply it to what i teach.

I like to trade based on what the market is giving me. If there is an opportunity to make 50 pips i will take them, if the opportunity is there to only make 10 pips i will take them too. I trade logically, and i take what the market gives me, and to trade that way you need to have a complete understanding of advanced price action trading, which is what i teach.

So yes you can use price action trading for scalping the Forex markets, and in my opinion you do have to have that knowledge to be a successful scalper, but when you do have a complete understanding of price action Forex trading, why would you want to be a scalper and take 3 or 4 pips from a trade when you can take 50? 🙂

If you enjoyed this article please like it on Facebook share it on Twitter, or bookmark it using the buttons below. Thanks for visiting my blog and have a great trading day.

What Is The Best Time Frame To Trade When Forex Trading?

June 30, 2013January 10, 2020Rob Taylor

This is a question many new Forex traders ask, but the answer is not as simple as the question.

The best time frame to trade when Forex trading can be down to what each trader is comfortable with.

If you know how to trade Forex correctly you can trade any time frame, from the 1 minute chart, up to the monthly chart. My preferred time frame is the 15 minute chart, but a lot of price action Forex traders like to trade the higher time frame charts, 4 hour and daily mainly, and 1 hour occasionally.

There are pros and cons to every time time frame. For example, your stops and your profit targets will be much bigger on the higher time frames, and the trades will take longer to set up. You can sometimes wait a few days for a set up on a 4 hour time frame, but the same set up on a 5 min chart will come around many times throughout the day. The smaller time frames are more profitable in my opinion, as you can take more trades, and your stops are much tighter.

How reliable are the set ups on the smaller time frame charts?

The price action strategies i teach work on any time frame chart, but a lot of Forex traders only trade the higher time frame charts, as they think that the set ups are less reliable on the smaller time frames. This is a myth, if you are trading advanced price action, the way i teach you to trade, you can trade on any time frame, and the set ups are just as reliable.

The only thing you have to be aware of when trading the smaller time frame charts, is high impact news. If you are trading 4 hour and daily charts, then a news announcement will be less of a problem to a trade on that time frame, but on a 1 minute, or a 5 minute trade, you will more than likely get stopped out by a news announcement.

So if you are trading the lower time frame charts, do not trade them when news is imminent. I have an economic calendar on the home page of the site, which shows the latest news announcements for each country, and their potential impact on Forex prices. If you bookmark the page you can come back throughout the day to check on what news is coming up.

Can your price action training course teach me how to trade the smaller time frame charts.

Yes if that is what you want to do. My Forex training course will teach you how to trade any currency pair, on any time frame, at any time of the day or night.

Any professional Forex trader worth his salt should be able to trade any time frame. If you are paying good money for Forex training then you should get what you pay for.

All my students agree that what i teach, is worth far more than what i am charging for it, but i have to be realistic with my pricing. I try to make my training course affordable to the majority of successful people, that wish to learn Forex trading.

I am not really interested in teaching my stuff to the world. I am just looking for a select group of traders that can all trade together, and help each other achieve their trading goals. Forex trading is not an easy job, but if you have a good support network around you, you will do very well indeed.

So if you are serious about learning to trade Forex, and you wish to be part of my group of successful traders, please give me a call or drop me an email. I currently have 2 spots available for my one to one training and mentoring program. When they are sold out i will not be taking on any new students until August or September 2013 at the earliest. My Forex training course is sold on a first come first served basis.

Can You Make Money Day Trading Forex?

June 7, 2013January 10, 2020Rob Taylor

Can you make money day trading Forex?

This is a question that has a very simple answer as far as i am concerned. And its a big fat YES.

There are many well respected Forex traders that say the Forex markets are too volatile, and its impossible to make money consistently from day trading Forex, and you should trade the higher time frames, daily, weekly, and monthly charts, if you want to be successful.

What a load of rubbish. If you are a good trader you can trade any time frame from the 1 minute chart right up to up to the monthly.

People that say you cannot make money day trading Forex, don’t know how to trade, its as simple as that.

My preferred time frame is the 15 minute chart, but i can trade the 5 minute and the 1 minute chart very successfully. I can also trade h1, h4, and daily. I can basically trade anything, and anyone that tells you its not possible to trade the smaller time frames is just a poor trader.

Day trading Forex is what i do. I am a professional Forex day trader and i make 1000s of pips every month day trading the 15 minute time frame. Why do i trade the 15 minute time frame? because that is the most profitable time frame to trade.

Trading daily and weekly time frames? You must be crazy.

When you are trading daily and weekly time frames you have to wait so long for a set up, and your stop loss is so big, its just not worth the hassle to be honest. I take 2 to 3 high probability trades every day. I make my money, and i get on with my life. I am not going to wait for 2 weeks for a set up on the larger time frame chart, and have a 100 pip stop. Whats the point? If you are a great Forex trader, you should be able to trade any time frame.

Yes, but trading the smaller time frames is too stressful? Rubbish.

Some traders say trading the smaller time frames is too stressful. Yes it is if you do not know what you are doing, and you get into a trade and it goes 30 pips in the red. Yes i agree, that is very stressful, that is why my entries are very cleverly worked out in advance, and i enter the market with precision, so my trades go into profit very quickly, which takes the stress out of trading. A lot of my trades are over in less than 30 minutes. I get in, i take my pips, and i get out. That’s not stressful, that’s just great trading.

So yes you can make money day trading Forex, and anyone that tells you otherwise, just doesn’t know how to trade. For more information on how you can learn to day trade Forex, please consider my Forex trading course.

Stop Press. One of my students made 87 pips today off 2 trades, after just 5 weeks of training with me. Stop wasting your time with the 95%, and get into the 5%. Supercharge your trading, and change your life. 🙂

How To Trade Pin Bars Or Hammer Candles.

March 14, 2013January 10, 2020Rob Taylor

How to trade pin bars or hammer candles as they are also called. Pin bars or hammers can be traded successfully on any time frame, but they tend to be more reliable on higher time frame charts, such as 4 hour and daily charts. Pin bar reversal candles are great price action set ups when traded correctly.

I personally don’t take trades based solely on pin bars or hammer candles, as my trading style is based on other factors, but lots of traders do trade them, and they do make up a large part of price action Forex trading.

I do however take notice of when pin bar set ups present themselves, as it gives me extra confirmation that i am in the correct trade, and it also helps me define a logical exit for my trades.

How to trade pin bars or hammer candles.

There are 2 possible entries when trading pin bars or hammer set ups. You can take a breakout entry trade, or you can take a retrace entry trade.

The chart on the right shows how to trade a pin bar breakout entry trade. You enter the trade on the breakout of the low, or the nose as its sometimes called.

The low (nose) is marked by the line, and as soon as the low is broken you will enter the trade short.

Now lets look at a how to take a retrace entry trade. A retrace entry trade is when you enter the trade on a retrace of the pin bar.

The most common retrace that Forex traders take is the 50% retrace.

If you measure the height of the pin bar, pin to pin, and divide it by 2 you will get your 50% retrace entry target.

You enter the trade short, when the price moves up 50% of the height of the pin bar, as shown by the chart on the right. The line marks the 50% retrace entry point.

Both of these trades show short set ups, but both can be applied to long set ups too. The candles are just inverted for a long set up.

It is important to know how to trade pin bars or hammer candles, as a lot of traders do trade them, and they do work very well if they present themselves at the correct point on the chart.

This is just basic price action trading. What i trade and teach is high probability price action trading. If you wish to learn this type of trading please consider my Forex training course.

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Why Do Pin Bar Reversal Candles Fail?

February 23, 2013January 10, 2020Rob Taylor

If you read my article on the pin bar rejection candle, you should know what one is. But not all pin bar reversal candles, or rejection candles work out. Why do some pin bar reversal candles fail, while others pay out?

Here are 3 reasons why pin bar reversal candles could fail.

1. A news release.

A classic reason for a pin bar reversal failure is a news release. I do not trade through news, but news can dramatically affect the likelihood of a successful outcome of a pin bar reversal set up. As a Forex trader you should always be aware of news releases, to make sure you are not either in a trade when news is coming up, or are about to get into a trade when news is pending. I subscribe to a news feed called Talking Forex that keeps me updated on any price sensitive news no matter how small it may be.

2. The components of the pin bar reversal candles.

How the candle is made up can also affect how successful the set up will be. The ideal components of pin bar reversal candles are a long pin, or wick as some people call it, and a small body. If the body is too large, or the pin is too small the likelihood is it will not work.

The picture on the right is a great example of a bearish pin bar reversal candle. You can see the wick is nice and large, and the body is small. It is also beneficial that the body is red if its a bearish candle, as this one is, or that it is green in the case of a bullish reversal candle.

You can see how successful this bearish pin bar set up is by the strong move down on the candle to the right of the pin bar. A lot of Forex traders would have recognized this great pin bar set up and quickly jumped into short positions to promote the aggressive move down in price that we can see.

3. The location of the pin bar reversal candles.

The location of the pin bar is a common reason for a pin bar set up to fail. If the pin bar is located at the wrong position within a trend it will fail. Pin bars work best when they are located at a swing high or swing low within a trend.

If a pin bar is located between 2 candles there is also a likelihood that it will fail. The pin bar set up works better when the pin bar is protruding from the 2 candles either side of it.

The chart above shows a number of pin bar set ups. Two that have failed and one that has worked out nicely. The two that have failed are marked with arrows.

You can clearly see from left to right that the first pin bar has failed for 2 reasons. The first reason was the size of the body. The second reason is the location within the trend. Also the body is bullish (green) and it should ideally be bearish (red).

The second pin bar set up worked out nicely for 4 reasons. The pin bar has a nice small body, that is the correct colour for a bearish set up (red), and its at the swing high within the down trend, and it is protruding from the candles around it.

The third pin bar failed because of its location within the trend and the candles either side of it. You can see that the pin bar has a nice wick and a very small almost non existent body, which is very good, but its totally in the wrong position within the move down, it is positioned at a swing low, and it is overpowered by the 2 candles either side of it.

Pin bar reversal candles work very well when the correct set up presents itself. This article covers basic price action set ups. What i teach is advanced price action trading. If you wish to learn how to trade Forex using advanced high probability price action Forex trading, please consider my Forex training course.