Hey there. My name is Adam
Wenig And in this quick video, we're going to be talking about seven
Forex trading tips that will instantly improve anyone's Forex trading results. 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
edge 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 will instantly improve
your Forex trading results Hey Everyone! Adam,
again, and in this video, we're going to be talking about seven, Forex trading tips to instantly improve
your Forex trading results. And again, this will be different than most of
the stuff that you're being taught on YouTube. It's different than most 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 channel to help make your trading ELF easy, lucrative, and fun. If you'd
like to make your trading easier, more lucrative and more
fun than like this video. So you get notified next time we have a
new video come out and subscribe to our channel. Okay, so let's go ahead
and let's dive into this right now. Seven tips to instantly improve
your Forex trading results. Okay. The first thing number seven. Okay. We'll go from number 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 people teach some sort of strategy
where you can just set it up and use an RSI or something like a stochastic
indicator in the big problem with these overbought and oversold indicators is, is that you're constantly trying to
catch the tops and trying to catch the bottoms of the market, which means inherently you're
likely trading against the trend, which is one of the biggest pitfalls
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 price. Overbought oversold indicators is
simply telling us what's happened. It's a lagging indicator 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? 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 trend is your friend. Why don't
people do it? Why don't people do it? 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 made it really simple. I use this little tool called
the bank secret indicator. I'll put a link in the descriptions. You can try it for free for seven days
and only pay for it if you really like it. But basically this makes it really easy
to see the timeframes and to see what's happening. If it's blue on these
bars, 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.
trading with the trend, 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 can
see that the H one H four and daily, they're all in an uptrend, which means that I'm only going
to be looking for buy positions. If you're looking for sell positions,
you're shooting yourself in the foot. So don't do that. You want to
trade with the trend? Absolutely. The trend is your friend. This
indicator makes it really, really easy to see that number five
tip 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 look, the reality is if you're trading
these timeframes, like it's stressful, it's hectic, your emotions get involved
too much in these lower timeframes. You make emotional decisions. And on
top of that, it's cloudy. It's muddy. The zones are not really 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 looks. So if you want to be like the smart
money and unlike the 95% of the herd that loses money all the time, then only
trade the H one timeframe or above.
Number four is to use at least a
one-to-one risk to reward ratio. This is a huge flaw among so many Forex
traders is that using skewed risk to reward ratios. Now, let me break this
down for you with actual real data. Now here's the problem. You can see that this data was pulled in
from over 43 million trades that pulled in from different, uh,
retail, Forex traders. And you can see that on the Euro us dollar
here, you can actually see that the, uh, the herd was able to predict
a winning trade 61% of the time, which is great.
I mean, so how, if people are able to predict winning
trades 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 predict 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 trade was 83 pips. And the average winning trade was
48 pips in this 43 million trade simulation. Uh, that was actual trades
that came in 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 reward
ratio is all backwards, like really, really poorly backwards.
Now simply just using a one-to-one
risk reward. Ratio has major, major advantages. If you look
at this graph right here, you can see people that used at least
a one-to-one risk reward ratio versus people that did not. And
according to this data, it shows that 53% of all accounts that
operate at least a one-to-one risk to reward ratio turned a net profit
in this 12 month sample period. And those who operated under a
one-to-one risk reward ratio, a mere 17% of those
accounts were profitable. So look at this simply by using a
one-to-one risk to reward ratio, you'll increase your odds drastically.
You're three times more likely
to be a profitable Forex trader. If you simply use a one-to-one
risk to reward ratio, number three is to trade Contra
crowd. Now, what does that mean? Well, the market's made up of two different
players, right? There's the smart money, which is the banks is the institutional
traders. 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 concept. If we know that the herd is
almost always net losers, why not just do the exact
opposite, what the herd's doing, and if you just did the opposite and you
know, that they lose 95% of the time, the chances are you're actually going
to be able to win simply by trading against what the herd does. So I like
to use this bank's secret indicator. Like I showed you, you
can use it from MyFXbook. I think they have a tool as well, where
it pulls in the market sentiment. Okay. And this is what I like to see here.
So this is basically pulling in data
from hundreds of thousands of retail traders, from MyFXbook, from different
brokers. And it's calculating. So you can see 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, absolutely. That totally makes sense. And you can pull this up on any timeframe
and you can see 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 here, 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 tuned, 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
small losses, but big wins. Okay. And this kind of goes into the same thing
that we're talking about earlier about using a favorable risk to reward ratio.
But the big problem is, is that people, they will essentially
wait their fat tail risk, but they'll cut off
their fast tail rewards.
So let me show you a graph to actually
show you what I'm talking about. Okay? So this little depiction here
shows what actually happens. Most people think that their trading
falls into a normal bell shaped curve. Statistics go back to statistic class, basically anything falls in a bell shaped
curve. If you look at babies 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 normal bell shaped curve, but in the market trading does not. There's what's called fat tails where
this is the chance of you like having a big fat tail reward in your favor.
And this is the chance of you having a
big fat tail loss in against your favor. Uh, and you can see this red line is
what the market actually looks like. These huge fat tails do exist,
and people tend to ignore this. So the problem is, is that
people, when they're trading, they'll allow these fat
tail risks to be there, but they'll cut off their fat tail
rewards. You've ever heard the, you know, people talking about, you can 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 reward ratio
and you don't let your fat tail winners write out, but you let your fat tail losers
drag on and an easy way to do this. If using these sort of Martingale or
cost averaging system where you're continuing to stack on losing positions,
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 big losses normal than
bigger than normal losses.
And also, you know, if you're using a Martingale
or cost averaging system 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 small take
profits in these large stop-losses, this is just a recipe for blow up, it's
going to happen. And again, why is that? So, because you're limiting the fat tail
rewards and you are allowing yourself to have access to the fat tail, uh, losses, the extreme losses that
can happen. So again, the key here is to keep your losses
small and to make your wins big. And how can you do that? One of the best ways that you can possibly
do that is by trading with the trend, having a favorable risk to reward ratio
and actually using trailing stop losses.
If you use a trailing stop
loss, this allows you to trail. And if the market really goes in
your favor on these big trends, which happens as you can
tell what these fat tails, then it allows you to capture the big
fat tail reward end of the spectrum. And the number one tip is to
simply do not try to catch tops and bottoms. And this is it's so aggravating because
this is what the vast majority of people, teachers, they just teach you
okay to buy low and to, to sell high, right? We've been taught that our whole life
has been ingrained in our whole life. But the problem is, is we don't know how low the lows are
going to be and how high the highs are going to be. So trying to time it can
be disastrous for your Forex trading.
And I'll just pull this up
to show you a quick example. If you look at the AUD USD chart here, you can 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 mean? 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 positions, 80% here, the vast majority of
them are trying to sell. And this is why the herd gets
hammered in these sorts of situations. When these trends occurred, they
keep trying to catch the top, keep trying to catch the top, keep trying to catch the top until
eventually they blow their account, 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 keeps you trading with the trend. It allows you to have favorable
risk to reward ratio. 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 results. And again, if you liked this video, then go ahead 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 showed you here, you can get it for free.
include a link in the description below, so you can get that out and check it out
for free and only pay for it if you'd like it. And also at the same
time, when you do sign up, we're actually going to give you access
to our favorite trading algorithms as well as a bonus. So go ahead
and do that. Now. Take action. And we can't wait to see
you on the next video. Okay..