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 1)  Read This First

 

 2)  Why SO IMPORTANT To Keep A Trading Journal ?

 

 3)  Why Are You Always Late & Wrong With Trend ?

      

 4)  When You STRUGGLE when Account Is Small ?

     

 5)  Is Using Stop-Loss Really Protecting Your Capital ?

      ( HARD TRUTH ! )

 

 6)  Be " Slightly More Patience Instead " & Win More !

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Forex Trend Strategy – How You Can Determine The Forex Trend More Accurately !

” How You can determine the Forex Trend More Accurately ! “

As trader, You and me know that as long as we are on the ” right ” trend…we can ride on it and grab some nice Profits..

However…most traders ( not just beginners ) are still struggling with identifying the ” right ” TREND to trade most of the time..

It might seem as simple as these :

“…It is an Up-Trend now….I shall BUY ! ”

“…It is an Down-Trend now…I shall SELL ! “

” …It is Sideway now….I shall BUY when Price is at next Support!”

These 3 sentences indeed seem very Simple for anyone to understand…

BUT !

Why is it that most traders are still struggling to even make ” Consistent ” Profits…week after week…month after month then?

Even till the extreme that due to their past ” failures ” …

They have developed a FEAR to enter into the market although the TREND is Obvious…

And as such….these traders would always end up ” Hesitating ” and having too many in-decisive thoughts before entering into a position..

What’s the ” Negative ” result of this FEAR ?

They would ” miss out ” on those good trading opportunities and when that happen…they feel ANGUISH & tend to want to enter the market ON IMPULSE….

With this….it started a very vicious trading cycle & mindset…and the consequence is normally NOT WORTH IT after all…

Recently one of my reader wrote in to me asking about this same problem about identifying a ” Trend ” in the forex market..

She wants to know is there any ” Simple & Safer ” way to determine the Forex Trend more accurately so that she can trade confidently without feeling so ” hesitant or fearful “….

Here’s the exact question from this lady to share with You :

——————————————————————————————————————–

QUESTIONS :

——————————————————————————————————————–

” …Hey Aaron, I have been following your forex tips & newsletters all these while and I really learn a lot from these tips. This is especially so when it is coming from a trader’s real experience..

I have a problem that I have been facing and struggling to overcome but without much success so I thought of dropping you an email seeking for your advice or any solution you can provide.

Here’s my problem :

I am a day trader ( intra-day ) and mainly trade using the 15 mins & 30 mins time-frame…

The thing is that everytime when I see that it is an Up-trend with ” Higher Lows & Higher Highs ” confirmation…I will enter and BUY..

But the sad thing is that out of 10 times I did this…6 would ALWAYS turn against me and hit my Stop-Loss causing yet another losing trade….again and again.

I am very sure it is an Up-trend and even my technical indicators are also showing the Up-Trend signals too..

After so many ” failures ” encountered….I am now sort of feeling FEARFUL and really VERY Hesitant everytime I spotted a trend not knowing whether to enter or not…

Hence…this resulted in me ” Missing Out ” on many good trading opportunities..

Since you are now a full time trader, I am sure with your experience and forex trading knowledge, you can give me some good advice on this.

So is there any Simple & Safer way to determine a trend in the forex market accurately ?

I am rather sick of trapping in this problem …frankly…

Looking forward to hear from you.

Once again…thank you for the tips all these while. Much appreciated !

– Auntie Lim ( via email )

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My ANSWER :

——————————————————————————————————————–

Hi Auntie Lim….thanks for contacting me with your questions..

You are really not alone as this is one of the most common problem most traders ( including intermediate ones ) face…

Even I myself also experience such frustrating problem in my earlier years of forex trading before I go full time…

It is part of learning I suppose…but at least you are willing to do ” something ” about this problem and move on for future success…

I can tell that you are serious and motivated to be successful with your forex trading after all….keep it up ! * smile *

Although you might be feeling very confused and kind of Lost now..

But I can confidently tell you that this is actually a very easy problem for you to overcome…

Firstly…you must not fully rely on the so called ” Textbook technical indicators ” to gauge the trend anymore if you want to overcome this…

That’s because technical indicators are always Lagging BEHIND the current Price and the Patterns formed

When You rely on these lagging indicators…you also enter into a trend later too…..which is definitely disadvantage to you.

I am very sure when the trend already started….the technical indicators would not show you the entry signal until after sometime….

And that’s lagging

That probably explains why ” when ” you are right about the trend but because these indicators are lagging…you enter late and the market turn against you soon after…

In order for you to determine a trend more accurately…I have another 3 steps method for you too….very easy to use and proven to work.

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3-Steps method to gauge the ” Right” Trend the SAFER Way :

——————————————————————————————————————-
1)  You need to look at the DAILY time-frame for the ” Big Picture ” that’s happening CURRENTLY in the forex market now..

And if it is a Up-Trend now with the previous 2 candles’ closed also Bullish….then there’s a ” High Probability ” that it would be good to trade Up-Trend for the day!

Upon checking the ” over-all ” trend on the DAILY time frame, if it is also an Up-Trend ( this you can use moving averages to help you confirm )…then the Up-Trend ” Probability ” would be even
higher…

2)   Next….You need to switch to the 4 Hour time-frame to see is it an Up-Trend too…

If it is also an Up-trend…then the Probability is really High..

3)  Do the same for the 1 Hour time-frame…

And if it is ALSO Up-Trend…then you can be sure that the Probability is INDEED High!

This would boost Your Confidence significantly too as all the time-frames are showing the same direction….

So to enter into a BUY trade….open a position ONLY if it offers GOOD Reward/Risk ratio… ( very important ! )

Here’s why :

You might be ” right ” about the trend direction but if there’s a SPIKE ( long shadow….fake movement ) and hit your Stop-Loss causing you a losing trade…

But only to see the trend resume again after that..

You can ” re-enter ” again and since You are entering with a GOOD Reward/Risk ratio…..

You will WIN end of the day ! * coolz *

Since you are trading on the 15 mins and 30 mins time frame…

Then it is good that you follow the 3 -steps method to determine the ” big picture “…

This allows you to see the trend more clearly whereas in a smaller time frame….it is not accurate

If the 3 time frames are NOT Inline….then maybe you can choose to stand aside and watch …

OR…

You can go and scan other currency pairs which are INLINE as there are just so many pairs for you to choose from !

Hope you are getting the whole idea now…

Lastly…..do remember what I told you about technical indicators…they are simple Lagging and not accurate..

Use Price action strategies instead and you will be glad thatyou did just like I do…

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Trading Forex and winning ” Consistently ” is indeed not hard after all I must say…

You might be thinking that because I am trading full time now and so I can confidently say this…

But do remember that I was ” once in YOUR position ” too…

Feeling LOSE and FRUSTRATED while trying to figure out how to really make ” Consistent Profits ” every month…

And one thing for sure is that as long as you have some proven trading strategies to follow…

Combined with the ” right ” trading psychology….

You can literally start with an account size with relatively small capital and build it into a rather
” BIG ” one in no time…

That’s because forex is a leverage tool…and it is VERY POWERFUL….if You know how to trade profitably.

If you are still not getting satisfactory results ( profits ) from Your current forex trading strategies….

Or even struggling to break-even every single month…

Then it is really time You treat this entire forex thingy seriously if You really want to succeed with it..

Learning Price Action Forex Strategies indeed give me tremendous trading success…and help me to grow my account exponentially..

And if you are still NOT using Price Action yet….

You’re indeed leaving a lot of profits on the table

Why not check out the Top 3 Price Action Forex Resources that I have reviewed and also made 30+ readers saying a big ” Thank You ” to me for recommending them here :

=> http://www.forextradingempire.com/Top3ForexReview/

( You gonna love these strategies especially the #1 choice ! )

To Your FOREX Success,

Aaron Tan ( your trading friend )

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