All language subtitles for [English (auto-generated)] The Only Moving Average Trading Video You Will Ever Need... [DownSub.com]

i will never forget

the day i learned about moving averages

i was watching a video online and the

guy was watching said that i needed to

buy

every time price hit the 20 period

moving average

and for some reason i decided to blindly

trust this man that i had never met

before in my life

i took to my charts i placed the 20

period moving average on them

and i bought the next three times price

hit that moving average

i was amazed because all three of those

trades won

i started thinking about the kind of car

i wanted i started thinking about

the kind of house i was gonna buy i

started thinking about how easy it would

be to retire

if i could just win three trades a day

using this magic

20 period moving average

and then tragedy struck

i ended up losing the next six trades in

a row using the same exact moving

average

now why is that why did this happen

well the reason is because there is no

such thing as a magic moving average

there's no such thing as a magic

indicator that's going to

help you win 100 of your trades

but what i found out throughout learning

more about moving averages

and using them correctly is that if used

properly

moving averages can create some

extremely

powerful trading opportunities and that

is why in today's video i want to show

you one

what moving averages are two how you can

use them to help you identify the trend

of any market

three how you can use them as areas of

value to trade from

and how you can use them with confluence

of other technical factors

in order to create some extremely

profitable trading opportunities

and as i normally do in my videos i'm

also

towards the end of the video going to be

showing you a profitable rules-based

strategy around moving averages that you

will hopefully

go back test and put into your own

trading plan

those are extremely important steps and

hopefully

this strategy can help you with your

goal of becoming a consistently

profitable trader so if that sounds good

i need you to do two things for me

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click subscribe if you are not already

if you are already subscribed

then welcome back you know what's coming

let's go ahead and get into the video

so what is a moving average

well it's exactly what it sounds like it

is the average

movement of price on a particular

currency pair or

asset based on a certain number of

candles so for the example we have on

the screen now

the line that you see on the chart

that's red is the moving average and it

is a

20 period moving average the reason is

20 periods is because we have

the length or look back period set to 20

we have the source set to close and

what this means is that the moving

average itself is going

to look at the close of the last 20

candles

red candles green candles does not

matter

it's looking at the close of the last 20

candles and it's going to add

all of them together once it adds all of

them together it's then going to divide

that number

by 20 to give us the average of price

and that is how

this line itself is plotted so

to make this extremely easy what i'm

going to do

is change this to a five period moving

average and we're going to do this

calculation ourselves

so with a five period moving average you

can see that our current

indicator value is 1.21223 and the way

you can see that

is right here where it says m a that i'm

pointing at now

so what i'm gonna do is calculate by

adding

the last five candle closes each of

these is the close of one of the

previous five candles

and then i'm gonna divide that number by

five and this is the number we will see

afterwards let's do that right now

so if we add all of those numbers

together we have 6.06114 and if we

divide that

by our five candles we end up with

nearly exactly

one point two one two two three yes we

have

two two eight here but the indicator

rounded it up

by one decimal point which is totally

fine and that

my friends is exactly how a moving

average is calculated no matter what the

number is

so for our last example here if we had a

50-day moving average here

what would the indicator be doing this

indicator itself

set to a 50 period length whatever you

want to call it

would look back at the last 50 candle

closes

and then would divide that number by 50

and that is exactly how

you would get this line no matter what

the number is for your length that is

exactly how it's calculated

so that is what a moving average is now

let's move on to how we can use moving

averages

to help us determine the trend of a

market and i'm going to share with you

three different ways to do so right now

let's head back over to the charts

so there are three moving averages that

i would suggest you use to identify

trend they are the 20

period moving average the 50 period

moving average and the 200 period moving

average these are

the most popular and by far the best for

helping to determine

trend if you want to look for short-term

trends using the 20-period moving

average

would be a viable option if you wanted

to look for medium-term trends

the 50-period moving average would be a

viable option and for long-term trends

using the 200 moving average would be a

good

option for that now you still must

understand the normal concepts of

trend that being that in order for a

market to be in trend we need to be

making

higher highs higher lows higher highs

higher lows

higher highs and once that stops

happening instead of a higher high

or a higher low excuse me now we have a

lower low

so once this starts happening we are out

of trend

whether we are above below beside a

moving average or not so it's extremely

important

that you understand that and don't go

solely based on just a moving average

you need an understanding of trend

itself as well but let's let's talk

about short-term trends

if you were looking for a short-term

type of trend you could say

this is the first way of using the

moving average in order

to define trend you could say that i

only take short trades

when i see space between the 20

moving average and price and then

whenever the market is against the

moving average i take

no trades and when the market is

above with space i look for long trades

that is one way you could use moving

averages to help define

trend now something that helps a lot of

traders

in order to define this trend is to add

another moving average like the 50

period moving average

now why would you want to do that

because with just

one moving average let's leave the 20 on

what you'll find yourself doing is

getting caught

in a lot of situations that look like

this

a lot of consolidation if you are being

caught in this type of consolidation

then your trend trades are going to be

losing

during this entire time and that is why

some people opt

to use two moving averages to keep you

out of some of this consolidation now

the downside to this each of them comes

with their upside and down to downside

and this second way of identifying trend

the downside to it

is that you will miss out sometimes on

the initial

reversal in price and the third way

of helping to identify trend using

moving averages

is with three moving averages now i

don't know that i would use the 200

moving average for this

you could use whatever would be larger

than a 50

or lower than a 20. the number really

does not matter

so in this case i would probably do

something

like a non-period moving average and

at this point it's kind of

self-explanatory but what you would be

saying

is when the blue slash

50 ma the 20

ma and the 9

ma all show me that they have space

between them and are pointing to the

downside

and are not touching and clustered up

like this then i'm looking for short

trades

and the opposite would be true once they

fan out

to the upside like we have here all of

these ways are

great in terms of creating objective

rules

for a trading strategy i love moving

averages for that reason they create

completely objective rules that you

cannot mess up

even if you try there is no way you can

say that these three lines

are not fanned out there's no way that

you can say

they are fanned out in this situation

right here

when we have the black line or the

non-moving average pulling below

the 20 moving average so it's a way of

creating objective rules

in a trading strategy but that's all you

need to see moving averages as

and so just as a quick recap you can

either use

one moving average like the 50 or the 20

to determine trend

by saying that candles are below the 50

period moving average

i'm looking for short trades or you

could use two moving averages like the

50 and the 20 and you could say when my

red line is clearly

below my blue line or my 20 below the 50

then i'm looking for short trades and

that's the only time i'm looking for

short trades

vice versa for long trades or you could

go as far as to use three moving

averages and say

when i have space between all three to

the downside

then i'm looking for short trades and

the opposite

is true for the upside looking for

bullish trades when they fan out in this

way

and that's a couple of ways you can use

moving averages in order to help you

determine the trend

of a market this is something that i've

used throughout my entire trading career

i still use moving averages to help me

determine trend to this day

and it's something i definitely would

suggest you trying to

implement into your trading as an

objective role in a trading

strategy so now let's move on to

how can we use moving averages as areas

of value

in order to trade from and how can we

get other confluences

from other technical factors that can

really make for some highly profitable

trading opportunities let's dive into

the charts and talk about that now

so just as with trend in terms of using

moving averages for areas of value

i would absolutely stick to the 20

the 50 and the 200 because these are the

most respected

moving averages by traders around the

world so what you're going to see

is a lot of movement in these areas and

the first way

to identify a moving average as an area

of value

is just simply when the market is in a

heavy

uptrend the 20 period moving average can

act as support

throughout that heavy uptrend until of

course

that trend ends which happens here and

that's why it's important

not to do what i did when i was talking

to you earlier in the video

and just start buying because the

market's touching the 20 moving average

no you need a lot more

confluence and a lot of other factors

coming together

in order to make this into a profitable

strategy such as

entry reasons that make sense like

a hammer candle such as

other factors we're going to be

discussing in just a second let's move

on now

and talk more about the 50 period moving

average so the 50 period moving average

tends to hold up

as support in medium type of trends

but yet again just like with the 20

period moving average when that medium

trend ends

the moving average fails and the 200

moving average which actually acts as

support

quite often happens as support for

long-term trends

so this market had been going up for a

while started to consolidate

and push down once it hit the 200 moving

average we saw a nice spike

to the upside one way to start looking

at moving averages as an objective rule

to a strategy would be

to plot all three of these on your

screen and then say when

the moving averages fan out and align to

the upside

like they are right now we have space

between the 20 and the 50.

we have space between the 200 and the 50

when i get

a touch of my 20 period moving average

and let's say a close above candle like

this right here

that's when i want to place a long trade

now you're starting to add confluence

with a nice entry reason and with

multiple

moving averages fanning out in order to

show you that this market

in fact is in an uptrend so you would

have to make your own rules for that

that's not the strategy that i'm

teaching today but i'm just trying to

give you an idea as to how you would

start using moving averages

as an objective role in a strategy let's

see if we can get something else here

here we have another situation where we

have fanned out moving averages

and a nice hammer candle right here so

there are

plenty of ways to do this your options

are unlimited and it's only

limited by your imagination in terms of

how you use

these moving averages to make those

objective rules for a strategy but now

let's talk about confluence so as i

stated earlier

using moving averages by themselves as

an area of value

yes it can help you create a profitable

trading strategy but the more confluence

you add to moving averages the better

off you're going to be the more accurate

those trades are going to become

and so what i'm going to do now is show

you some of my favorite ways to add

confluence to moving averages

in order to create some of the most

profitable trading opportunities

possible and some of the most accurate

trading opportunities that you could

possibly

get using let's dive into the charts and

talk about it

this is how i like to add confluence

with moving averages and

quite frankly one of my favorite ways to

trade using moving averages

is to do this i wait for the market to

touch the moving average at the time we

are looking at the chart

right now this is the 200

period moving average once i touch the

200 period moving average

and i'm gonna show you a live trade of

me actually doing this today i had three

trades doing this one loss

and two wins i'll show you in just a

second but once we touch that moving

average

i'm gonna put a horizontal line there

and actually i'm gonna make this a zone

because support and resistance are not

zones right but if i look

left from this zone that i have what do

you see

this is not only the market hitting an

area of

value because of the fact that we are at

the 200 period moving average

we also have that lining up

with previous major structure resistance

and support

so one of my favorite ways to add

confluence to

moving averages is to say i will not

trade

the 200 period moving average unless

when the market hits the 200 period

moving average

it also lines up with structure looking

left and then you i'm going to start

talking a little bit about the strategy

now

i'll go into full detail after i'd let

you take a look at those live trades but

let's talk about the strategy a little

bit right now we know we're in an area

of value because of the 200 moving

average

we know we're in an area of value

because of this confluence

with our previous level of resistance

that was support in the past as well

now what i would be waiting on in this

specific case

is a candlestick pattern

or some type of selling pressure like we

just saw

right there in order to enter the market

so what i mean by selling pressure

well if you do not see the selling

pressure here then you got to go get

yourself some glasses

this is a long and large wick that came

out of our area sucked all the way back

down

that to me is showing selling pressure

that would be an entry candle when i say

selling pressure

again i'm going to talk a little bit

more about a rules based strategy

after i show you the live trades from

today but you could set yourself up

something like this

with a 1.41 reward to risk on that with

our stop-loss above

that wick and you can see what happens i

say 1.4

obviously pick and choose your targets

the way you would like to for me 1.4 is

my first target

then i manage the position on the way

down and that is how i like to use

confluence

with moving averages and structure

levels in order to point out some of the

most powerful

trading opportunities that exist and

with that being said

what i'm going to do now is let you take

a look at a couple of live trades i had

day trades earlier today using this

exact

type of strategy and then we're going to

dive deep into an actual rules-based

strategy

you can come away from this video with a

way of trading

that is rules-based objective and that

if done correctly

can help you to gain an edge over the

market

so with that said take a look at these

live trades i will be

right back so as we were just talking

about another way i like to use this

type of confluence is with chart

patterns so if you look on the screen

you can see that we have a double bottom

but what's different about this double

bottom

well this double bottom is happening at

the 50 period moving average so when you

have

an area of value you can combine this

price

pattern with it can really increase the

odds of this being a winning trade so

with that being the case this is a trade

we're also going to go ahead and take

today chances are i'll probably end up

losing one of these but

i did want to give you guys examples of

both of these in live trades let's go

ahead and risk

i might use 0.5 on this one just because

of the margin level

that it allows it only allows for a 25

to 1. only canada swiss for owanda so

i'm going to use 0.5 so that i'm not

super leveraged here

and i'm ready to go so we are involved

in this trade and now what i want to do

is show you guys another trade that's

actually on my radar right now

using the same exact strategy so let's

take a look at that

live trade as well here we have another

example of

using a price pattern at an area value

that area value being the moving average

so as we discussed our rules for this

type of price pattern this is an example

going short and for this example we're

looking at a double top so

we have our first stop and the rule

would be on that second test of that

resistance level

you would want to see that second test

at least touch the 50 period moving

average and you don't want to see

candles

with space above it this is just how you

would make a rules-based system around

this

what i mean by space above it is you say

you get a green candle that looks like

this

if there's nothing touching the 50

moving average not even a wick

then you don't want to take that as a

double top trade and expect the market

to head lower because that's telling you

that we've made it above our area of

value

but if candles are clustered around on

that second top or

if a candle just touches with the wick

like we have here then that's a pretty

good indication

that we could see a fall out of this

market and with that being the case

let's see if i can get an entry here on

this trade as well

and let's go with our stop loss which is

going to be

about four pips above our stop above

this level over here

because we do have a pretty nice

distance down to our level of support

if this market continues in this

downtrend so we're gonna look for 1.4 on

initial targets

and there we go we are entered into this

trade i'll keep you guys updated as it

plays out

i am going to go ahead and close out our

euro yen position here we are

at a nice level of support that i was

looking at for targets and

we are going to exit this position for

around a two to one

reward to risk ratio nice trade hey guys

i'm going to go ahead and jump out of

this canada swiss position it's 4 58

right now and the spread's starting to

go

up just a little hint if you are going

to day trade make sure if you're on a

five minute chart that you're not

trading on a pair

that has a large spread at five o'clock

p.m you will be stopped out by nothing

more than the spread alone

so with that being the case i'm going to

close this position for a profit of a

hundred

and ten dollars so in order to

turn a moving average into a reliable

rules-based strategy i use a process and

a phrase i call

c e s t this stands for

conditions entries

stops and targets if you have all of

these as rules and a trading plan then

you will have a rules-based trading plan

that will be easy to follow so

for conditions all this means is that

these are the things we look for before

we look for an entry so in the case of

the strategy you're learning right now

what are the conditions for this

strategy simply put we are trading price

action patterns like double bottoms and

double tops

that form at a moving average so

with that being the case the first thing

we're going to look for in our c

e s t is the conditions which are going

to be

we want to see the market above the 50

moving average this is for a buy trade

okay everything would be backwards for a

sale trade before buy trade we want to

see the market above the 50.

the second condition we want to see is a

double

bottom now the third condition

is that that double bottom at least

touches the 50 period moving average

with one of the bottoms whether that be

the first bottom or the second bottom is

irrelevant but we want the double bottom

to at least touch the 50 period moving

average

once all of those conditions are met we

are ready to work on the entry

so those are all the conditions for our

strategy that's what we need to see

before we can try to enter the market

before we can look for an actual entry

reason

and for me using price action patterns

like double bottoms

what i like to use for an entry is just

a confirmation candle

in the case of a double bottom that

would be a green candle

so i'd be looking for a green candle and

also i want that candle

to close above the 50 period

moving average so just a quick overview

we're looking for the market to be

over the 50 period moving average we're

looking for a double bottom we're

looking

for one of the bottoms of the double

bottom to touch

the 50 period moving average once that

happens we are looking for a green

candle and the entry candle itself

must close above the 50 period moving

average so all of our conditions and

entries are set

at this point how easy does that make

trading no more

confusion whenever you look at a chart

you're thinking to yourself man should i

actually trade this

or not we're at support i want to click

the buy button should i do it

no at this point you wait for every

condition to be met

you ask yourself is the market above the

50 period moving average

the answer is yes awesome you ask

yourself did we just create a double

bottom we're going to talk about the

rules

for a double bottom in a second you ask

yourself though did we create a double

bottom

yes did one of the bottoms of that

double bottom touch the 50 period moving

average

if the answer is yes you continue the

process looking for entries

if you find the entry which is a green

candle you ask yourself

did this green candle close above the 50

period moving average

if the answer to all of your questions

is yes you are now ready to

enter the market on a rules-based system

no more confusion at all this is

something that's so powerful and

literally the reason and this is what

took me

from being an inconsistent losing trader

to someone who is consistently

profitable is using the cest now you're

ready to get in the market after all

your conditions and entry is met

as long as you know the next two which

is stops

and targets now for stops and targets

because i'm not gonna have a lot of time

to dive deep into them in this video

what i'm going to do

is just do a very simple stop of one a

t r below the swing

low and our target is going to be a 1.4

to 1 reward to risk profile based on

that stop-loss atr for any of you that

do not know

is the average true range what it does

is measures the volatility of the market

based on the last 14 candles i will put

a video i did

on the atr that explains it in full to

the top right

side of your screen but now that you

know the conditions entry reason stops

and targets

we are using with today's strategy let's

take a look at this canada swiss trade

we had earlier

let's ask ourselves the questions that

are necessary first

is price above the 50 period moving

average yes it is

first condition met do we have a double

bottom well not yet here is the rules

for my double bottoms all i do

very very simply is i place a box

on the lowest body of the first bottom

and on the lowest wick of the first

bottom

this box is considered my termination

point what i want to see

is a candle at least touch this box with

a wick the body of the candle can close

in this box

the wick of a candle can go below this

box what i do not want to see

is a candle that closes below this box

at that point

it's signaling trend continuation to the

downside and i do not want to buy

when i'm thinking trend continuation to

the downside so let's take a look at how

this played out as we push down

do we have a double bottom now yes we do

we have the touch

of our box that classifies as a double

bottom for me what are we looking for

now we have all of our conditions met

right

we're above the 50 we have a double

bottom the double bottom

is touching the 50 period moving average

next

is our entry what is our entry a green

candle that closes above the 50 period

moving average

so let's see if that's something we get

during this trading opportunity

and guess what if it's not we don't

place the trade

that's how easy this is if we get what

we're looking for

in terms of the green candle that closes

above the 50 moving average

with all of our other conditions met

then we place the trade

and if we don't then we do not place the

trade

super super easy is that a green candle

pretty easy to recognize right

yes that is a green candle so at this

point

i would be entering the trade on the

close of that candle or the open of the

next one

they're normally the same thing in the

forex market but

at that point what is our stops one atr

below the swing low

of the double bottom right here's the

swing low of the double bottom atr

at this candle is three pips so three

plus four

is a seven pip stop loss

what is our target reward to risk and

our trade is set up now

i want you to think again about how easy

this is once all your rules are met you

just enter the trade

and how much easier trading is going to

be without just

guessing every time you place a trade

right how much easier is it going to be

to have rules

like this conditions entries stops and

targets every single time you place a

trade let's see

how this specific trade played out

played around a bit near the entry and

eventually pushed up hitting targets

again if this trade looks familiar it's

because this is the trade we had earlier

and i ended up exiting the trade

because it was 5 p.m for like 110

or so now this is all well and good but

one of the most important parts of

having these rules beyond

it helping you stay consistent to your

plan

is you using these rules to take them in

historic data

and test them and practice the strategy

this is a process called back testing

the rules you just got the cest we just

discussed

can easily be written down on a piece of

paper you can put that piece of paper

beside your computer

beside your keyboard and you can go

through historic data

to pass 100 times that those rules were

all met

i'm talking conditions entries stops and

targets go through

a specific currency pair on a specific

time frame

let's say the canada swiss five-minute

chart whatever you want to go through

whatever your favorite pair and time

frame is and test

those rules the last one time 100 times

that they happened on a chart

out of those 100 times did this strategy

make a profit and if it did

great that means it's likely to make a

profit in the future there is no

guarantees in forex but

it's likely to and if it did not then

that means it's likely not

to make a profit in the future and you

have no need to continue trying to trade

something

that's not likely to give you an edge

not likely to make you profit

over time so the reasons we have all of

these rules in place

the conditions the entries the stops and

targets is not just so we can stay

consistent to the strategy because it's

based around a set of rules

but it's also so we can take those rules

and test them

to make sure that the strategy we're

trading does produce

a profit over a long period of time so

now that i've talked about that and went

on my little rant let's dive back into

the charts

and take a look at a bearish version of

the same exact strategy

all right so for a bearish version what

are we going to be looking for

the opposite of what we were just

looking at right we want to see that

price is below the 50 moving average we

want to see a double top this time

instead of a double bottom

we want to see that one of these

tops touches the 50

moving average as long as one of the

tops touch the 50 moving average

our third condition is met and then we

start looking for entries

on a double top it's going to be a red

candle and that red candle needs to

close

below the 50 moving

average so let's see how that plays out

on our screen

right now do we have our first condition

met is the market below the 50 moving

average

yes of course it is very easy to tell

that because we're below the blue line

next let's see if we get a double top

there we have it a double top does that

meet all of our rules so

far it does because this double top

similar to how the double bottom was

the box just goes from the top of the

bodies of the first stop

to the top of the wick and this is the

same termination termination point

we don't want to see a candle that

closes above

this termination point but we can have a

wick

above it and we can have a body that

closes

inside of it so would that be the case

let's push the market forward because

we only have two conditions met we have

a double top that's below

the 50 moving average but our third

condition is that the second top

must touch the 50 moving average which

has not happened yet

so let's continue and there we have it

is this still following my rules

for a double top we don't have a close

above this line so yes it is

is this touching the 50 moving average

yes it is

so right now we have all three of our

conditions met and we're looking for

that entry

which is a red candle that closes below

the 50 moving average

move forward my oh my would you look at

that with that being the case do we have

a moment where we can enter the market

based on this rules-based plan this

objective plan

that we've created so far in this video

yes we do we enter the market

we have a three pip stop-loss here as

well and above our swing high which is

one

i'm gonna do four so that's gonna be

about five pips

actually four pips is fine and a 1.41

reward to risk ratio

right there we have it now let's see how

this specific trade plays out

boom immediately pushing down and of

course all trades will not immediately

go to profit all trades won't

even win this is just a way of combining

technical factors

getting your confluence and then turning

that confluence

into a rules-based trading plan that's

what i wanted to teach you

here at the end of this video is how to

turn any technical confluence

like moving averages combined with price

action patterns

into a rules-based trading strategy

you can actually implement you can go

back test you can see if it'll work in

your trading plan

and then decide whether or not you would

like to and if this trade looks familiar

it is also because it's the euro yen

trade we had where we took profits right

down here

just because it was such a beautiful

trade let's go ahead and let the market

run

there we go we had our targets at about

i think i ended up getting almost a

three to one i think i said two to one

earlier in the video but i got almost a

three to one on this one and

with that being the case what i ended up

having was these were all about

a 500 risk so i had 500

times three ish so 1500 on this trade i

had a negative 500

on the aussie canada trade bring me to a

thousand

plus i had the 110 dollar win because of

the 5 p.m

candle on the cat twist bringing my

grand total using this

to a thousand one hundred and ten

dollars now that is not

again any guarantee i just wanted to add

it up on the screen to show you the

power of

just winning two trades out of three and

having a decent reward to risk

ratio lastly we are going to take a look

at the losing trade

okay another bearish trade here so let's

count out what we need to do for

our c e s t

what conditions do we need price below

the 50 is that happening yes

do we have a double top not yet so we

would have to sit on our hands in this

case we're using replay mode so we can

just push the market forward which is

very very easy now

until we get a double top do we have a

double top now well if i put my box i

don't actually have to do this

because i've been trading this type of

strategy for so long

but i'll put the box on here for those

of you who need it and if i put that box

on the previous high then you can see

that yes

we do have a double top does this double

top

touch my 50 period moving average yes it

does with that being the case are all of

my conditions met

yes they are so what i'm looking for now

that all my conditions are met

is a red candle that closes below the 50

period moving average let's check that

out

a couple of candles later or one candle

later we end up getting that entry

let's go with a position as soon as that

entry happens our stop loss

is going to be three pips above the

swing high four or actually that's about

five five plus three is going to be

eight

eight with a one point four to one risk

reward looks something like this and

check out what happens

well consolidation mostly and then

oh my steven this trade lost

yeah the trade lost guess what it

happens in trading

and i know it sucks it's not fun to deal

with trust me i didn't want to lose

500 but that's going to be a part of

trading and that's why

the third step in becoming a profitable

trader is so important

actually it's the second step in my

triangle of trading success

i'll put a screenshot of that somewhere

and the second step is having a solid

risk management plan

these losses are going to happen no

matter what kind of trading plan you

have

no matter what kind of guru you're

following no matter what kind of trades

you're placing

you will have losses your job as a

professional trader treating as trading

like a business

is to make sure those losses do not

affect your emotions in a way

that you can no longer stay consistent

to a strategy that otherwise

would have made you money over a long

period of time so

let's take this for example you take

this strategy you go out in the aussie

canada five-minute chart and you see

that out of the past 100 trades

it made money i just a relevant amount

let's say it made money

and it made enough money to where you

want to put this into your trading plan

so you do so

and now you're trading it with live

money and then

the day comes that you need a little

extra money for gas you need some beer

money you need whatever

the money is you need it for that's your

business not mine

but you need money so you decide okay

well today instead of taking a normal

one percent risk or maybe two percent

risk whatever you're used to

you decide you're going to risk 10

percent because you need extra money

and risking that 10 percent that trade

loses because it happens

right losses do occur and now

you are sitting there 10 percent down

after one trade because you did not

stick to a risk management plan that was

solid

even worse than that what if you risk 10

every single trade the strategy like

this

might have five losses in a row or more

five losses in a row

risking ten percent per trade which is

what a lot of beginners do

because they're in that get rich quick

mindset and they're just ready

to make money and trust me i get it i

came in in the same exact way

and it's not necessarily your fault

there's nothing wrong with wanting to

make money

but forex is a market

that doesn't have sympathy

it will take every bit of the money you

are willing to give it and if you're

sitting there

risking too much per trade then that is

you willing to give the market your

money and i don't want to see you doing

that so be sure

that you not only back test this to see

and ensure that it actually makes a

profit

over time but also that you have a

solid risk management plan inside of

your trading plan

so if that was interesting and you

enjoyed this video we do have some space

available

in our more advanced content which is

the eap training program that is linked

in the description

labeled eap training program in that

program i show you every strategy

that i personally use every single day i

also

am going to be coming at you with a

video every single monday of what i call

my best

setups of the week and these are areas

in the market i'm paying attention to

for possible trading opportunities and

using the strategies

you learn in the course at these areas

in the market

so with that being the case you're set

up throughout the week because you have

the strategies i'm using plus the areas

i'm looking at

to use those strategies in it also comes

with three to five email alerts per week

not meant as signals but meant to help

you understand

exactly how i am using the strategies

you're learning in

real markets and even beyond that this

program comes with what i call

priority email it is a mentor program

and this is

your access to yours truly at any point

that you have questions it will be me

answering those trading related

questions for you last but not least the

program comes with a 60 day money back

guarantee

if you for any reason feel as though you

did not get value out of the program

worth at least what you paid just shoot

us an email and my support team

will send you a full refund kind of a

risk-free offer there if you're

interested in some more advanced

training if not

totally fine not a big deal go ahead

make sure you smash that like button for

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have this in your trading plan and be

making

a hell of a lot of money i'll see y'all

later