My name is Zan and I am going to teach you and explain the basic top-down approach of the BecomingTraderFX Academy trading system. To become a successful forex trader you need 3 fundamentals: Trading Strategy , Trading Mindset and Risk Management rules. The basic trading system is based on technical analysis and easy to understand.
If you understand how it works you will figure out how profitable trading the Forex market can be, but without the positive attitude, focus and correct money management it will be as useless as every other system out there. Welcome to this trading strategy , style video where do the simple but powerful top-down approach to identify market behaviour, direction. Simple trading strategy, approach with powerful money management rules and simple trading rules combined with right trading mindset, psychology is the key to long-term success in trading forex.
Risk management rules and correct trading psychology is our best trading edge, once we learnt to read the price action and market behaviour. Before we will go into our entry and exit trading rules, we will cover our top-down approach. Top-down approach simply means that we start on high timeframes first, and then go to lower time frames. Before you try to look for possible trading opportunities you need to understand the general market direction and market behaviour based on the price action and support & resistance zones.
My trading style is swing trading which means trading based on the higher timeframes in the direction of the major trend. In Uptrend we want to look for buying opportunities. In Downtrend we want to look for short opportunities. I am using Weekly, Daily and 4-Hourly charts to prepare myself for every trading day. Trades are taken from 4-Hourly charts. Please note you can also use 1 Hourly charts when it makes sense and if you like trading lower time frames. On a daily basis I focus on bullish or bearish candlesticks Price action found around Support & Resistance Levels, and in Trend Direction. By mastering our trading approach you will be able to find a lot of trading opportunities, but that does not mean you should try to trade and catch every single market move.
Try to limit your number of trades taken every week or month, by picking only “great looking” opportunities that look good in terms of price action context and make sense in terms of approx. Risk:Reward ratio. I prefer to trade less, and better than overtrade to lose money. I believe not trading in bad market conditions is making money too. But, I must make sure that every trading idea looks good and makes sense. Our trading strategy relies only on technical information. I do not care about the news and predictions about the economy. I believe all fundamentals and news are in charts already. The Price is only a real indication of the market. I do not listen, watch or analyse the fundamentals and news.
Forex trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the fx market. Don’t trade with money you can’t afford to lose. You must be aware of the risks of investing in forex and be willing to accept them in order to trade in these markets. Forex trading involves substantial risk of loss and is not suitable for all investors. Please do not trade with borrowed money or money you cannot afford to lose. We will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information. Weekly forex outlook opinions on this page are for informational purposes only and are not investment advice. You should do your own research before making any investment decisions and take full responsibility for your own results, performance.
Editors’ Picks
EUR/USD trades weak below 1.0800 amid Good Friday lull, ahead of US PCE
EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair keenly awaits the US PCE inflation data and Fed Chair Powell's speech for fresh hints on next week's price action.
GBP/USD holds steady above 1.2600 as markets stay calm on Good Friday
GBP/USD trades sideways above 1.2600 amid a typical Good Friday trading lull. A broadly firmer US Dollar could keep any upside attempts limited in the pair ahead of the US PCE inflation data and Fed Chair Powell's appearance.
Gold price sits at all-time highs above $2,230, US PCE eyed
Gold price hit all-time highs at $2,236 on Thursday to finish Q1 2024 with a bang. Most major world markets, including the US are closed due to Holy Friday, leaving volatility around Gold price highly subdued. US PCE inflation and Powell are awaited.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.
Key events in developed markets next week
Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.
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