The 7 Rules For High Probability A+ Trade - Checklist

The 7 Rules For High Probability A+ Trade - Checklist by www.ForexSchoolOnline.com

www.ForexSchoolOnline.com CHECKLIST 7 Rules to a High Probability A+ Trade - CHECKLIST

The checklist is below; Below the checklist is a detailed explanation of each point. You can also download the checklist by itself at the bottom as a PDF to print off and put beside your computer so that before each trade you can quickly run through the checklist and tick off each box one by one. Make sure you read through to the end of this lesson because I am going to show you how to make your own checklist and the tools you need that easily let you do it.

#1.  Is Price at a Major Support or Resistance Level?
#2   Is There a Compelling Price Action Story to Make the Trade? 
#3   Is Price at a Swing High or Swing Low? 
#4   Is Price in the High Volume Session for this Market or Pair? 
#5   Is This Trigger Signal Buying Low & Selling High or Vice Versa? 
#6   Is This Trigger Signal Large & Commanding? 
#7   Is There Space to Trade Into, and Have You Written Out Your Pre-Trade Plan? 

Like everything I do in my trading, my checklist is no different in that it is both simple and effective. The order that I have built it starts at what I class the most important factors for finding a high probability trade. The reason for that is because if I do not get these really important checks met, then I can just move on. I don’t have to go through all the other checks on the list just to waste my time and work out that the setup is a dud anyway. I can get to point one or two and move on. For example, it is crucial that price forms at a major support or resistance area and that there is a compelling price action story to make the trade. These are points one and two on the list. If however, I have these down at five and six; for example, and my number one point is “Make Sure The Price Action Trigger is Large and Commanding”, then I will find a really great trigger signal that meets all the rules, which is great, but I am not going to work out that it is not at a major level until I have gone through all the other checks and wasted my time. I did not have to even look for a trigger signal. EXPLANATION

EXPLANATION 1. Is Price at a Major Daily Support or Resistance Level?
This, and point two, are the most important factors in hunting any trade for me, and so when looking for a high probability A+ trade setup, this is the first check-box I look to get ticked off. The reason I look for a major daily support or resistance level first, and not the trigger signal, is because where price forms is the key to a really high probability trade setup and price moving in our favor. Whilst the trigger signal is very important to a successful entry, it is only the last candle on a chart that has many candles on it. Price moves because of supply and demand and major support and resistance levels are huge areas of supply and demand. We want to be trading away from these areas where a lot of order flow is going to be giving price a huge boost. Once we have found a major level on a chart, then we can start looking at other factors.

2. Is There a Compelling Price Action Story to Make the Trade? Hand in hand with the major daily support or resistance level is the price action story. What exactly is the “Price Action Story”? The price action story is putting the whole price action chart together to read the overall story. Instead of just reading a pattern or instead of just trading the last candle, we are looking at the whole price action story. What type of things should we look at for the price action story? Basically, everything. You want to look at things such as: Is the market trending? What type of market is it? i.e. is price consolidating or ranging? or is price winding up into a tight box with inside bars? This can be super important for not only finding a trade, but trade management. Is there any Very Big Round Numbers (VBRN’s) around? Is there space for price to trade into when it breaks? Or is there a lot of traffic and minor support and resistance areas? Where price can and cannot close tells us a lot. I have linked a lesson about this at the bottom in the related lessons, but where price closes is very important. What has been happening in the recent price action? i.e. has there been a 1,2,3 reversal? Has there been a lot of strong momentum candles? etc. You can see from the examples above that we are looking at everything and ALL of the price action to put the whole story together. EXPLANATION

EXPLANATION 3. Is Price at a Swing High or Low? 
This is crucial for all reversal trade setups and one of the biggest mistakes traders make with reversals. I cannot stress how important this point is! If a reversal is not played from the correct swing point, then nearly almost every time it will always be trading straight into the recent swing support or resistance and the trader will be entering the market just as the big guys are getting out. This is super important and that is why I go through for you how to make money with reversal trade setups at the correct swing point at: www.forexschoolonline.com/make-money-trading-reversal-signals/

4. Is Price in the High Volume Session for this Market or Pair?
There are far better times to trade certain markets or Forex pairs than others. This is super important to keep in mind when looking to enter a trade setup, especially on the intraday charts because there is the risk of making a trade and having that trade being taken out with a false break. There is not one rule or time for all markets because all markets are slanted toward different countries or zones. For example, it would not be advantageous to trade a Forex pair, such as the EURUSD during the Asian session on the intraday charts because both Europe and the US would be closed and asleep and any trade entered during this time would run the risk of being stopped out when the European market opened. A Forex pair, such as the AUDJPY during the Asian session would be fine to trade however, because both the Aussie and the Japanese trade during this session, and so both are active.

5. Does This Trigger Signal Meet my Basic Criteria?
This check-box seems like a super simple check-box to have in here, but the reason checklists, trading plans, and standard operating procedures work when built and then followed by those organizations who have them is because they create a system to be followed where success starts to be consistent and ingrained. EXPLANATION EXPLANATION On the other hand, other traders (and other organizations for that matter) are doing things by the fly and the seat of their pants - you have a set system for success. You are not taking a chance that you may accidentally get into a trade that does not meet your rules because in order to put a trade on, you need to have gone through your checklist.

6. Is This Trigger Signal Large & Commanding?
For a reversal to be a high probability A+ trade setup, it needs to be a large, obvious, and a commanding trigger signal. For example, a really obvious pin bar reversal that sticks out and away from all other price or a large engulfing bar. The best trigger signals stick out like a sore thumb, and as soon as you flick to the chart, they just stand out straight away. You should not have to search for them. If you are searching your chart and really trying to find a trigger signal, you really need to question this checkbox.

7. Is There Space to Trade Into, and is the Pre-trade Plan Written Out? 
This is crucial to the success of your trade setup. There have been many, many trades where I have ticked all six previous boxes, and yet because this seventh box cannot be ticked, the trade was not made. If there is no room to trade into; in other words, if there is a support or resistance in the way or lots of them close by that price is trading into, you need to look at the whole price action story, and if you can tick this box to make the trade. Part of this check-box is after working out the support and resistance levels and targets, writing out your pre-trade plan. Your pre-trade plan needs to include exactly how you are going to manage your trade, including your targets, your break-even spot, where your stop is going to go, and if you intend on having any trailing stops at all. Basically, how you are going to manage this trade needs to be put into a mini plan and written out, so all you then need to do is follow the plan. Plan your trade and trade your plan.

EXPLANATION HOMEWORK There are the seven check-box's fully detailed, outlined and explained in-depth for you with how you can use them in your trading and exactly how I use them in my own trading.

You can now download just the checklist by itself here as a clickable PDF checklist: YOUR HOMEWORK TO DO RIGHT NOW You now need to take this example and make a trade checklist of your own. Using your own trading style, your own trading plan and your own trading rules, you need to come up with an actionable checklist that is simple, easy to follow and that will make sure that before every single trade, you are staying within your trading edge and remaining consistent. The best software and free app that I literally use everyday of the year that will also be perfect for you to create your checklist is www.TickTick.com. www.TickTick.com allows you to create checklists and all sorts of other lists and reminders that automatically sync between your PC, phones and other applications. The great thing about this is that you can then print it out and stick it up beside your computer which you need to do so that going through your checklist one by one becomes a habit and ritual. You can also have this checklist on your phone where you literally check each rule off one by one. If you have any questions about this or anything, please just send me an email as I would love to hear from you! All the success, Johnathon http://tinyurl.com/qgacvgq CHECKLIST Is Price at a Major Support or Resistance Level? Is There a Compelling Price Action Story to Make the Trade? Is Price at a Swing High or Swing Low? Is Price in the High Volume Session for this Market or Pair? Is This Trigger Signal Buying Low & Selling High or Vice Versa? Is This Trigger Signal Large & Commanding? Is There Space to Trade Into, and Have You Written Out Your Pre-Trade Plan? 7 Rules to a High Probability A+ Trade Setup - Checklist PDF Copyright © 2015 - www.ForexSchoolOnline.com - All Rights Reserved.

How to get 4 additional winning trades per month

Written by Mark Shawzin  How-to-get-4-additional-winning-trades-per-month/

After working on Wall Street as a trader for 23 years, and managing private client accounts for the past 13 years,  I’ve seen a number of miracles happen over time.
One of my biggest win’s early in my trading career, was a trade back in 1982.
So starting with just a paltry $8,000 to my name, I began buying silver on the futures exchanges.  As it turns out my analysis was spot on, and I ended up running my $8,000 account to a little over $280,000 in only 30 days.

Since that time I have modified my trading strategy  – slightly.
After 120,000 trades, 1,200 trading accounts, and 8 Wall Street Firms – I am going to give you an exact guide to walking away with 4 additional winning trades per month.
Before you read this article you have to agree with the following statements:

• You won’t find a ‘magic pill’ in the markets – the markets will eat you alive if you do.
• The Forex systems churned out by marketers on the internet are just laughable – especially if you think that’s how they make money on Wall Street.
• Forget about making 20%+ per month – that’s how poor people think.

Now, if you agree with all three of those statements then I salute you.
You are part of a small group of people who can separate reality from outright dreams and lies. And for that reason you will understand the words in this article better than anyone.
I don’t have time for ‘internet traders’, the ‘Forex forums’, or any other breeding ground for newbies who pretend they really know how the markets work – and neither should you.
This article is going to be simple.
I am going to show you how to get 4 – yes, just 4 – additional winning trades every month.
Don’t be fooled by the goofy EA developers and internet marketers out there.
Having 4 profitable trades per month is more than enough to push you into the big boys club.

Why most people reading this article will NEVER make a single dollar

Most people reading this article won’t make a dime. Not because the content sucks – it is some of the best trading tips in the world (according to me).
It is because people are lazy and don’t implement what they learn.
It is because people lose their shit and take too much risk.
And it is because you might not be able to handle my style. My past results really are no indication of you making any money whatsoever.
You might simply not have what it takes. However, there are a small percentage of people who do. And by following the rules you might be one of them.
There are no guarantees. So read carefully and make sure you examine every word on this page as if your life depends on it. Because it might just change it forever – if you have what it takes.

#1. The last (& only) opportunity for profits in the Forex market

There is this big lie out there that hundreds of thousands of Forex traders believe.
And you may have believed this too at one point.
“The Forex market is the most liquid market in the world and therefore it cannot be manipulated“.
That is plain wrong.
Governments have been cracking down on big banks because of their manipulation of a whole host of markets.
Check out this article on the BBC:

Have a look at this chart they supplied:

Have you ever been knocked out of a trade that just seemed totally random?
Well, chances are somebody rigged it. And chances are… you didn’t confirm your trade with a “2-pattern overlay”. More on that in a little bit.
You and I are small fish who are competing with much MUCH bigger sharks. Sharks who know the waters better than you do.
I used to swim with them. Merrill Lynch was only one of 8 companies I worked for on Wall Street. They did NOT take prisoners.
There are entire teams who’s job it is to cheat the system. And those are some of the brightest minds in the world from the best universities in the world.
You have to accept that you cannot beat them.

That’s why, what I’m about to reveal, is the very last opportunity to profit in the Forex markets.

Forget scraping a few pips off the charts.
Forget taking daily pivot trades, or “snipers”, or FAPTurbos, or whatever else these idiots are selling these days.
You have to stick to simple daily trades that unfold over a period of days, weeks, and sometimes months.
By riding the wave on a boat, you’ll be safe from the sharks on Wall Street.
If you want to get all of my trades for the next 14 days then click here and I’ll email them to you.

#2. How to dominate a currency with profitable trades

That’s a lie. You can never ‘dominate’ a market. That kind of thinking will get your account murdered.
However, you can put the odds severely in your favor by doing one thing.

You can use a simple “2-pattern overlay” before entering a trade

I’ve been using this since the 80s and it still works better than anything.
One million dollar client at EF Hutton & Co (another Wall Street company) dubbed me the “2-pattern wizard”.
Every time I used it he knew he was about to make enough cash to buy another house.
All you do is look for a minimum of two chart patterns to “confirm the trade”.
Now, that doesn’t mean you confirm an entry. You simply confirm that you potentially want to take a trade.
Here’s an example from one of my trades:

I saw a triple “core support bounce”, and then a simple overhead resistance. (If you don’t know how to spot price patterns then don’t worry… I’ll get to that).
DON’T jump into the trade just yet – it isn’t that easy.
You still have to know when to enter. I use a very specific ‘trigger’ that usually means the market is coiled like a spring, ready to burst in the right direction.
Keep reading and you’ll learn all about it.

#3. Use this simple trigger

Most newbies would simply jump into the trade because they saw a “double bottom” or some other pattern.
You and I know better.
You have to wait for the market to form a coil.
There are several different types of market “coils”, however the one I’m about to reveal is the easiest to spot and tends to give me better results.
It is called an “inside day bar”.
So, looking at the daily chart I would wait for this bar to form.

Here’s a real live example from a trade I took a while ago:

Two inside day bars were the beginning of a nice coil. Here’s another example:

#4. Have a tight stop loss and await the coming burst in movement

Remember that silver trade I told you about in the 1980s? It was my first big win.
Even though I turned $8k into $280k the risk was minimal. I did that by scaling into a rocketing market. Despite what people say… NEVER do that.
Not until you understand the true risks involved.
It can take a heavy psychological impact on you. I once saw a guy at Commodities Corp (now a division of Goldman Sachs) throw his computer across the room because he leveraged his position by scaling in too much.
Theres no need to do it.
Simply stick with what I am about to reveal and you could walk away with a handful of winning trades each month.

Keep the initial stop loss tight, and then keep it loose…

The initial stop loss is very tight. I anchor it close to the previous bar.
If you’ve established the correct price action and trigger bar, you should see it shoot off in the right direction.
Only 1 out of 2 trades tends to linger around. If they turn, then it means the trade is a dud and your stop loss will kick you out quickly.
However, when it goes… it goes.
Here’s an example of a good trade I took.

I made a fat 5.2% in about one week.
This example shows how it immediately jumped in my favor. That means I spotted a good coil.
By the way… those are actual trades. My trading platform marks them with those little circled arrows.
Here’s another example:
EURGBP immediately jumped after a trigger coil for a 2.5% gain in just one day.

I don’t usually exit trades in the same day, however, 2.5% is a lot of money in my world.
You don’t often see 2.5% days. If everyday was like that my account would grow by a billion every month.
So when it happens… I take it.

#5. Exiting the trade for a fat profit

This is how you get 4 additional winning trades.
If you get the coil right. Your trade should shoot out of the block like Usain Bolt.
This allows you to have a tight stop loss. It puts you in a great position to make huge gains with a tiny risk.
If your stop loss was far away from your initial entry then your risk would be greater and you’ll have to reduce your position size.
Therefore, I would recommend a hard and fast 3:1 risk reward ratio.
If your stop loss is 35 pips away, your profit target will be 105 pips (three times the stop loss).
Now, admittedly I use a way more complicated process for my exits. I could write an entire book on it.
However, when I looked back at my last 300 trades, I noticed that if I used THIS exit strategy I would still have made a great return.
It is simple and it takes psychology out of the equation.

#6. How to ‘never’ lose

I learned this while working at Bridgewater Associates (they manage about $170 billion) from a funny looking Irishman.
Back in 2011/2012 I forgot this rule and I duly got slaughtered.
There is a story inside of the book ‘Marketing Wizzards’. It talks about a great trader who locks himself in a room with no distractions. No windows. No TV. No Computer.
He has his assistant bring him his chart-book without the instruments named.
So he doesn’t know if he’s trading pork bellies or gold. He doesn’t care.
All he cares about is the price and the fact that he has no distractions. It means he ‘never loses’.
My rule gives me the same sort of piece of mind.

Before I let you in on it you must know what I mean by ‘never’ lose.

When you lose a trade – you aren’t ‘losing’. It is simply part of the process. It is the equivalent of a business expense.
You will always lose trades. However, when you lose your mind and you don’t follow your own rules. That’s when you truly lose.
So here are the exact rules you need to follow to NEVER lose, always stick to your rules, and always win in the long run.
Do not share your trading results
I did once. And only once.
It was a huge mistake.
All of the sudden I was answerable to thousands of people who happen to stumble across my profile. This doesn’t work when you are a trader.
I lost focus. I kept fussing about whether a trade was a winner or a loser. I didn’t focus on whether it followed the rules or not.
As long as you follow the rules… you are winning.
When you don’t follow the rules – you are losing (even when you make a profit).
Systems and routines are the only thing that make you profitable in the long run.
It is the only thing that’ll protect you against the sharks.
So whatever you do – don’t share you trading results. Not even with your husband or wife.
It’ll put external pressures on you.
Don’t even mention a winning trade or a losing trade. Simply tell them you’re winning because you followed the rules.

#7. How to make $1m from trading

Do you want to know the real secret?
The one that most people ignore, because they don’t really take their trading seriously?
Well, it is a system of recording and documenting your trades in detail.
I call it a trade journal. Super original right?
Every single time I am about to take a trade, I stop.
I take a snapshot of the chart, I write out my analysis (the reason WHY), and then I enter the order.
90% of my orders are pending orders, which means they only enter when the market reaches a specific price.

This is an example of three pages inside of my journal.

By doing this with your trading you’ll be able to get a lot more focussed.
When you look at the markets you will feel excited. You will get a rush of adrenaline.
Stop. Take a deep breath and start recording the trade before it happens.
It gives you the breathing room you need to make rational decisions. It helps you to be a winner every time by following the rules.
I have taken over 120,000 trades in my life. And the only times when I was consistently profitable was when I kept a journal.
If you want to receive my journal for the next 14 days then click here and I’ll send it to you.
Seriously. Get my journal. It’ll show you how you should structure yours for maximum results.
You’ll also get a better feel for the way I trade.

Now you have two choices

I should congratulate you. You’ve read the entire article.
However, this is just the start. You now face two choices.
Choice #1
Forget what I told you and keep doing what everybody else is doing.
It is easier to follow the herd after all. Some of the things I talked about aren’t easy. Some of them are plain boring.
Yet this is what it takes. And I think you know that, which is why you’ll probably go for…
Choice #2
This is the choice smart Forex traders go for.
You grit your teeth and follow the rules.
So that you can finally break away from the ‘internet heard’ and actually start taking pride in being a trader.

Be the person that “actually makes money”. How nice would that feel for a change?

Compound Interest is The Holy Grail of making money?

Compound interest is a mathematical principle that creates those staggering growth curves we have all seen. Understanding compound interest is of great importance as a trader because it teaches you many lessons that are critical to internalize if you want to stay on top of your game.

Compound interest 101

Compound interest works so well because you let your money work for you. The graphic below illustrates the power of compound interest. The starting point is a trading account with $10,000 and a trading system with a winrate of 55%, an average position size of 2% and the average Reward:Risk ratio (or R-multiple) is 2. If you multiply these figures out, you get a trading system with a trade expectancy of 1.3% – this means that every trade has an expected outcome of 1.3% over the long-term.

Recap – expectancy calculation:

General Formula: (Winrate * Position Size * Reward:Risk ) – [ (1 – Winrate) * Position Size] = Trade Expectancy

So with a trading account of $10,000 the first trade has an expected outcome of +$130. After some more trades, your account has grown to $15,000 – at this point, the 1.3% are +$195 per trade. Although the change from $130 per trade to $195 per trade doesn’t seem big, but keep in mind, you don’t have to do much different; you are still trading the same system with the same metrics. 

After some more trades, your account is now at $20,000 and the 1.3% are now worth $260. This is still the “slow growth” period for your trading account and the toughest period for any trader.

After making it through the slow growth period, things start to get interesting. After 200 trades, the 1.3% will be worth almost $1700 per trade – following the same trading routine. This is when exponential growth really starts to kick in. After 500 trades, the 1.3% are worth an incredible $81,000 per trade.

“Compound interest is the eighth wonder of the world. He who understands it, earns it ... he who…CLICK TO TWEET

Word of caution: Although exponential growth is not a theory but a mathematical principle that is irrefutable, you have to be aware of some trading specific issues. As your trading account growths, you will experience some “size-related issues”, meaning that getting a fill might become harder and entering a trade with one large position will become increasingly difficult. 

The lessons of compound interest

Patience

Developing patience is the most important factor when it comes to using the principle of compound interest. Most amateur traders make some calculations and then get too excited about where they could be in 100, 200 or 500 trades. But back in reality they get frustrated because their $2,000 account is not producing the returns they are after.

90% of your trading journey will be slow and “boring” because compound interest only really kicks in once your trading account reaches a certain size. Thus, most traders will never get there because they give up too early and change trading systems, hoping to find something that will generate greater returns faster. Can you accept to make little money for the next few years in exchange for a potentially high reward at some point far in the future?

The graphic below shows a simulation of a trading account with relatively conservative metrics (winrate 50% and an average Reward:Risk ratio of 1.5). Most traders will only look at the right and only see how much the account grew. But they don’t understand that it took years of low returns to get there (this simulator is available in the Edgewonk trading journal).

Consistency

Once you have understood that you need to be patient, it comes down to applying consistency to your performance. Everything significant that has ever been achieved is based on the principle of consistency. The tallest building in the world started with one brick and by consistently laying brick upon brick. Arnold Schwarzenegger became the best body builder of all times because he consistently worked out every single day, building his body little by little. The Fortune500 companies got to the top by making customers happy – one at a time – and by continuously making small improvements.

As a trader, you have to bring your best game every single day. And even if it looks as if your trading account will never amount to anything meaningful, keep in mind that the principle of compound interest is irrefutable and it works every single time without exception – it’s a law of nature.

http://www.tradeciety.com/compound-interest-trading-holy-grail/

Floored: Into The Pit - Epic Trader Movie!

https://www.youtube.com/watch?v=tCcxr-fyF4Q

Potential Takeover Target Stocks

Stock price as at 2Apr15

联合工业（United Industrial Corp）$3.44 、大东方控股(Great Eastern Holdings) $24.91、会德丰产业(Wheelock Properties) $1.87、永泰控股(Wing Tai Holdings)、和美置地(Ho Bee Land) $2.16 及鸿福实业(Hong Fok Corp) $0.895。

What to Invest? Follow Temasek

If you don't know what to invest, then just follow Temasek portfolio.

http://www.temasek.com.sg/portfolio/portfolio_highlights/majorportfoliocompanies

Currency Strength Chart

http://finviz.com/forex.ashx