FOREX TRADING: Do You Lack Confidence?

FOREX TRADING: Do You Lack Confidence?

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FOREX TRADING: Do You Lack Confidence?

hey traders in today's video we're going to be looking at a structure trading opportunity with an amazing risk reward to it and also talk a little bit about the power of confidence and the effect that it can have on your success as a traitor all that and more in today's forex market preview video [Music] hello traders and welcome back to another edition of the forex market preview I missed you guys last week fortunately Jason gravestone was able to step in and give you guys a fantastic video so it's good to see that no matter what trading coach is able to step in we can keep the ball rolling and continue to give you guys excellent trading content if you guys are brand new to the channel my name is akhil stoked I'm a professional Forex trader as well as the head forex trading coach over at trade empowered calm and well after you're done watching this video in full spend some time on our channel we have hundreds and hundreds and hundreds of free trading videos for you to check out some very old and embarrassing but feel free to venture round I'll tell you what if you like what you see make sure you hit that subscribe button that way you don't miss the next trading video whether it's from myself Jason Stapleton Charles mouth or Jason greystone now in today's video we're going to take a look at a structure trade on the euro yen a trade that had a fantastic a potentially fantastic risk reward on it and then we're also talked a little bit about the power of confidence in the effect that it can have on your trading I had a great conversation with a trading peer of mine about a you know how the markets have been this year and how a lot of traders out there are losing their confidence and really starting to fall off the deep end so we're going to talk a little bit about that so make sure you enjoy this video all the way to the end make sure you share this with the trading friend of yours if you find the content to be worthy and we'll hop right into the charts and uh hopefully give you an opportunity that you can take advantage of on the sunday okay alright so we're here on the euro yen I want to get started looking at the daily charge just to give you some higher time frame perspective of what's going on here and you can see the most recent move and this market was a move from a swing low to a swing high so the market made a pretty big move from down here at about 1 1275 all the way up to about 120 for even and then we start to consolidate you can see that price action started to run out of steam the market went into consolidation which is what we call this sideways movement not for quite a while and then we eventually broke out to the downside right now at this point here's how i look at the market right there are two things that we could be doing here this can simply be an outside return in a bigger overall move right if I go ahead and look left you'll see structure leaves clues if I take an arrow right down to where we came at look left boom we came we retraced right to the top of a previous kind of consolidation pattern this is going to be a little wedge pattern here with this mark being the high of the wedge so this can either be alright just a bigger higher time frame pullback and what could potentially be a continuation up right maybe a one-to-one measured move for an ABCD pattern up or or this could just be the start of a Down trend that comes back to retest our previous level of consolidation the key is we don't know and you know every time we say that you know we get a lot of newer traders that are saying hey well that sounds unprofessional how can you not know what the market is doing and guess what we never know what the market is doing right if we knew exactly what the market was doing we would be right all the time our job is traders isn't to know for sure what the market is doing because one of the biggest mistakes you can make is thinking you know more than the market our job is to do our analysis and try to make the correct predictions and put ourselves in the best situation too I don't say maximize our reward but the best situation is to potentially make profit while only having limited risk and that's exactly what this situation is going to be right here if we go back to the consolidation that price action did up here right you can solid ate it and then we broke to the downside and we started what is a bearish trend right you can see swing high to swing low outside return we have a lower low lower clothes we have another outside return and outside return another word I use for pullback retracement so if that terminology seems weird to think about it as a pullback board retracement and then we follow that up with another new structure low so for you guys that are familiar with trend this is obviously a bearish trend for you guys that may be new to reading a price chart right when we have a series of lower lows one two three in a series of lower highs one two three we call this a bearish trend right so right now when I'm looking at this chart and I'm going through my IP de process that's identify predict aside execute I can identify that we are in a bearish trend so if I'm asking myself if we are in a bearish trend then what is likely to happen next and well that will be a continuation bearish so that would be either a pullback or a continuation excuse me down to our previous structure low and maybe even a potential move lower now again do I know that this is going to happen one hundred percent no I don't if I did I would bet everything I would liquidate all other accounts I'd sell all my real estate I'd get another mortgage on the house I'd slide the kid into the middle of the table and put it all on short but we don't and that's why we want to be cautious with how we attack these situations is my analysis telling me that we're more likely to go bearish them bullish yes but we don't know for sure and what makes this situation good is that if we just look at our risk reward now go down to a lower time frame to the 4-hour chart but just to give you a little bit better perspective right if we just look at our risk reward on this pear and we say hey I want to enter the straw these uh draw our trend back in here that's Beth I you see a little consolidation here market goes sideways a little bit all right little trouble top action there notice look left structure leaves clues right now draw that in later right and we can sing it out with four moves lower right now price action has come right back up to a previous level of resistance is something I like to do in my charts if I like to draw while just a straight line so i take my horizontal line tool i draw it right out our resistance level and i'll say well is there anything interesting at this resistance level is this a level where the market has shown me that it has importance in the past and if we take a look at this look at what has happened at this level this is all adding on to the analysis right not only do we have the market consolidating right at this level here resistance resistance resistance right but before that that same level with previous support support support right so we have a level here where price action you can even look at this consolidation in here as well we have a level right here where price action traded above it came back down and held that support right traded above it came back down we had a little bit of a breakthrough but held at support as we traded above it once again we then come back down we test it support holds we test it again support hold we test it again support holds before finally breaking down to the low side lower low lower clothes breaking out of that consolidation pattern the higher time frame now once support is broken what does it then turn to what we we what would be expected to turn to write resistance so you can see after price action trading below it previous structure support turns into resistance resistance holes we get rejected resistance holes we get rejected resistance holds we get rejected and then we have a continuation to the downside now price action has moved its way right back up to that same level and we have I guess we have a decision to make I like calling these decision points right because at this point in the market price is going to tell me what is likely to happen if we hold right so if we fail to break this previous structure of resistance we're likely to continue in that downward trend if we break above and close above and we violate that level then we may have a continuation to the upside I'll actually i'll show you an example of a great trade we had on that over the last few weeks so until we if price action gives me a signal that we're going to hold this level right then i want to be short and here's the cool part part right because we're so far up into this resistance level let's say I put on a short opportunity right where do stops need to be and I'll see you I'll do a poll question in the top right of your screen if you're watching on YouTube answer the question where do stats need to be right right above our previous level of resistance you can have a very very very minimal stop loss and if we're anticipating a continuation in the trend guess what we can look for a move all the way back down to previous structure low some of you maybe even looking for an extension even further I'm not that risky but we can look for a move back to previous structure low is and look at this we're getting essentially a six to one risk/reward that means our potential reward is six times what we're risking in order to get it that is a good situation that you want to put yourself in now for some of you guys you may be looking at this chart tonight that's not the big move akhil that's a big move I don't know if I want to ride that bad boy all the way down there well guess what let's say you're a little bit more cautious you take you want to take targets right in here right this could be a potential Head & Shoulders pattern right I mean you're bringing I know what you guys are thinking right this could be a potential Head & Shoulders pattern where price action puts in the shoulder down here and then stops you out well guess what you're still getting almost a four to one risk/reward llt Oh what about our previous right if you want to take a look at the minor ebbs and flows of price action we have our previous outside return right here again look left structure least clues right price action hits this level as well right here we find support right here right here what if you don't feel comfortable taking a trade past that level well guess what moving on up still almost a two to one risk/reward so no matter how you look at this trade no matter how aggressive right or conservative your target taking is and that's going to be a personal choice up to you as a traitor that's going to vary depending on your trading philosophy you're still getting a pretty decent risk reward and you're in tune with the under I end of the market so this was a pretty decent trading opportunities is a pretty decent trading opportunity we can look for on either to sunday open or form on Monday whatever your first trading is and it reminds me of a situation that we had on the aussie canada pair and i say that because again this is a decision point this is assuming this level does hold right if level or if price action breaks above and closes above then we have a different situation and here's how we handle it now going over to all the note not all d dollar all the canada right here's a trade that we took this past week or two weeks ago and it actually sets up a long time ago so if you've been a frequent of the forex market preview here meaning you've watched this every single week and watched every single episode as i expect that you did right right good right then you remember this trade we had a very nice structure-based trade right here right we looked left as always structure left clues and we had a very nice short riding this down a couple hundred pips before we're tracing back up now as price action retrace back up to this level we had the same type of decision point we had that if then thought process come up in our heads where we said hey Akhil if price action holds at this level then look for shorting opportunity if price action violates our previous level of structure right then look for a long opportunity and you can see that price action came up to this level eventually we broke out so we broke through that level of resistance and our thought process shifted from looking for selling opportunities to looking for buying opportunities right so we weren't we weren't caught up in one way thinking in the market we're not relying on how we feel we're not relying on I talked about it in this week's trading blog video about confirmation bias not relying on what the internet is telling us or Bloomberg or CNBC or CNN is telling us we're relying off what we see on a price chart and what happened here is you go down to the hourly time frame you'll see that after we had that higher high higher closed right right above here is out of looking for a short position we were looking for an opportunity again long and we found that opportunity to get along in the form of an advanced pattern formation we had a move like this click on my tool here we had a move like this swing low to swing high x 2 ay ay to b b to c c to d right down here as a interesting move because we got filled right during a much more for the some announcement from canada i'm not vish my mind can barely remember what happened yesterday so i don't remember what it was we had a news announcement on canada and the market was just we saw canadian strengths and it was it was it was one of those falling knifes right the falling nice that the internet trolls and the trading forum people tell you never to buy well guess what we bought it we bought that falling knife right why because it completed an advanced pattern formation and met all the rules of engagement and we were supposed to be in the tray and that's falling knife that we were supposed to avoid guess what that falling knife did that falling knife rallied up about 200 pips all the way up here right so I got first targets off for about 90 pips we're shooting for a dollar three even for my secondary targets which is a little bit higher and you can see that i did not achieve that level and actually got stopped out on the remainder remainder the second half of my position right down here so i made first target profits and then i got stopped out for trail stops for like another 120 pips right not bad for being stopped outright and loves you guys get stopped out in blow accounts we get stopped out and we gained 120 pips off of it but that wasn't it we then re-entered this this pair last week right off of another advanced pattern formation right cipher formation is time x 2 a.a to be B to C and the CD completion right here again buying into 123456 bearish days six out of seven bearish days or bearish candle and then we got we just got target hits a target once hit on Friday and we're back in this trade again looking for at least I'm looking for extended targets back up to that 103 even handle so a good example of shifting that saw process on the euro yen trade we're looking to get short however let's say we take that tray let's say we get stopped out it's not one of those deals where we run away and we go cry in a corner we reload we take five minutes to Cana relax and settle yourself and we look for the next trading opportunity because often right often when previous levels of resistance are broken they then turn to support and they offer new trading opportunities and if you're sitting on the bench because you're scared right you're not going to be able to take advantage of the trading opportunities and it's difficult for a lot of traders and what did what it takes is confidence guys you know I've worked with a lot of traders over my ears and we just launched our new trading course about a month ago and we're dealing with a lot of new traders and the main thing that I notice is lack of confidence these traders are going through the course material they know what they're doing they're reading things the right way but they don't have that confidence yet in reading a price chart and when you lack that confidence is easy to find everything in the past right it's easy to look back through historical data and say oh yeah this was that this was that but when it comes time to execute the trade in real life they freeze up right have you guys ever done that I've ever have you ever seen everything and analyzed everything correctly only to freeze up when the opportunity arises yeah that's called the lack of confidence you need to have confidence in your ability to read a price chart right and that confidence is the same thing that you need if you want to be a consistently profitable trader over time I spoke to a trading pyramind good buddy of mine mark said locker works over in the future side here at trade empowered and he trades oil right he's a amazing trader incredible returns however you know we were talking about oil and if you look at oil let's just go to the daily oil has it moved right oil hasn't moved since December right now mark he trades a momentum trading strategy a trend a trend trading strategy so guess what he needs to do to make money he needs the market to move right and with oil goin sideways it's been very frustrating now for us as traders we've both been doing this for a long so we know how to deal with frustrations it stinks we don't like it sometimes you want to get upset and punched a wall kick the cat but guess what we know it's a natural part of trading we've seen it before we've traded out of it things have gone great so we know that we can do it again however for a newer trader that doesn't have that experience for a new trailer that hasn't been in the market that long this can be a devastating time right this could be a time where you lose all confidence in what you're doing and then you start to either bail on your system or you make mistakes and most of you I guess you've probably done this before most of you have traded a system it's worked well for a little bit and then guess what you enter a patch where it doesn't go as good and you bail on right right right and then what happens what always happens as soon as you bail on it right you go to this other system and that new system right that works good for two weeks and then guess what that one stops working as well and then you look back at your old system you're like oh man the old system just started working well as soon as I bailed on it right you have to have confidence in yourself right we had a very rough year to our syndicate the to start things up I'll bring a chart over for you we had a very rough year in our syndicate you see we've been trading about 10 weeks so far this year and just look at the beginning of it right look at the beginning of our curve it is a straight nose dive if you have children watching cover their eyes this is nasty right cover your eyes it was a straight nose dive right and then over the last four weeks right we bottoms off here a little bit and we started making our way up started reestablishing that bullish trend right now this halfway point right that number six that's where most traders will stop they'll get through the first six weeks of the year and they'll be like you know what the first six weeks weren't good right keep in mind there are 52 weeks in a year the first six weeks of the year weren't good to guess what I'm going to quit on my strategy and they quit right there and they never have the chance to see that return we're experienced traders who have been through this before right we have the luxury of experience and you can see in the bigger picture here right those six weeks in the bigger scheme of things not really a big deal at all you can see the equity curve you can see there's pull back after pull back after pull back and what happens after each pull back there's an extension higher and as long as you're doing that guess what you're going to be on the right path as a traitor now the question is how do I go about doing that right if I'm new how do I gain experience right how do I gain that confidence and a great starting point is going to be our website guys go over to trade in power calm there are tons of content tons of educational content over on this site if you click to learn the trade tab there's tons of free training over here i recommend into the gray but guess what if you're looking for more support just not a free training check out our training courses and coaching programs we have everything from your most basic course the complete basics course of forex for those of you that are very very new all the way to our ultimate trader transformation course where you get coached by for traders myself Jason Stapleton yes that's right I said Jason Stapleton he is doing the training in this course Jason gray stone and Charles miles and for those you that maybe don't need a course you're saying you know what I don't need a course I just lacked confidence I need to build that confidence and really trust myself right I recommend spending some time either the live rooms or the syndicate program there's nothing more beneficial than trading with the community and one of the biggest things I get especially from our syndicate members is when they see a video that I post out this ATO I just want to say that I was looking at that pair earlier I was looking at that same type of formation that same setup on there I wasn't sure about taking it but as soon as I saw your video and knew that you were looking at the same thing that gave me the confidence to go in with the trach and I'll tell you what sometimes that's all you need now hopefully you don't need that for life if you need to rely on someone else to give you confidence for the rest of your trading career probably not a good thing but the plan is you stay in the live room you stay in the syndicate until you start to go that confidence and then you spread your wings and go trade on your own all right we have many people that want to stay just because they like the community it keeps them accountable but the goal isn't to have you in these programs forever it's to get in there right accomplish what you need to accomplish whether it's confidence whether it's kind of getting a look at the reality of trading and then go off right go off on your own trading journey so thank you once again for joining us for another forex market preview video if you liked what you saw here show us hit that like button leave a comment and of course share this with a few trader friends of yours and if you continue to do so no doubt that will reach our goal of 100,000 subscribers and that's going to get us more fired up to bring you this free educational trading video each and every week so until then playing a trade trade your plan have a great win traders alright trader so I hope you enjoyed today's video and if you did please show us by hitting that like button and subscribing by clicking the button right below if you're looking for more educational content feel free to head over to our trade in powercom website or also take a look and you'll see more videos available for you have a good one

16 Comments

  1. Stop being dillusional people. Forex trading is bs. Everyone should know that already.

  2. great video Akil. I can definitely identify with this problem. What charting software do you use? It looks way better than MT4. Cheers!

  3. thank u Akil

  4. DANIEL RODRIGUEZ

    thanks for this, gave me some confidence to IPDE

  5. Isn't that a head and shoulder pattern(inverted) @12:55?

  6. nisshobdo niyoti

    This video is great who feel lack of confidence in forex trading. I would like to suggest to watch this video to gain your lost confidence. To be profitable in this market you should be confident with your every step of trading. Also your broker needs to be very much supportive and treat you well. Otherwise you will lose your confidence day by day. I am with ECNCAPITAL who increased my confidence over my trades with their services.

  7. i hope u kno you guys at trade empowered provide by far the best forex education on youtube. thank you for dropping wisdom week after week. we really appreciate it

  8. Fernando Sanchez

    Akil, as allways… FAB!!

  9. thank u so much Akil…

  10. Awesome video and a great help as always.

  11. I'm going live next month and I'm a little nervous, any advice Akil?

  12. Hey Akil – Great info as always. Really enjoyed

  13. magnificence

  14. Great video Akil!

  15. Another amazing video, Akil. I love how you thoroughly explain each trade and the thought process behind it.

  16. Great video

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