Ivan Zhigalov
It is crucial for any Forex trader to differentiate between shady and decent trading opportunities. You certainly have to know the approximate potential of any trade you open (whether it is 20 pips or 200 pips). Indeed, it is very irritating when you close the trade and the price keeps moving forward in your direction while you are realizing how much more you could have earned but for the premature closure.
By the way experienced traders say that underperformance is as bad for your trading results as losing trades. A natural question arises: How to tell a 20-pip move form a 200-pip move? Well, let’s ask Masterforex-V Academy about it…
Moneymaking Tips
As you probably know, Forex traders make money by speculating currency exchange rates. They try to buy cheap and sell expensive. Consequently, the key thing is to be able to anticipate price behaviors in order to follow the price. According to Ilya Pressler (a leading trading expert from Masterforex-V Academy), it is crucial to make decent fundamental and technical analysis to make weighted trading decisions.
Fundamental analysis usually shows us how currencies react to various macroeconomic situations and events, including economic reports, major announcements and speeches made by top-ranking officials, central bank meetings, economic, political and financial news etc.
At the same time, technical analysis is based on 3 axioms:
The price takes everything into account, including various macroeconomic factors sited above.
History repeats itself, i.e. price moves are cyclical and directional.
All of this is reflected by price charts, which means they contain everything needed to make highly probable predictions.
These days, most retail traders are intraday traders. They predict prices for the next few hours within a day. Fewer traders actually make mid-term and long-term predictions. Indeed, those, who speculate currencies, are not obliged to find out what will be the exchange rate of, say, EURUSD in 4 weeks. It is more interesting and beneficial to trade intraday to open more trades within a month and consequently make more money in the long run.
Timing is another major thing to consider and master! You can make a correct forecast but if you are late to open a trade, you can lose money in the long run by purchasing at the top or selling at the bottom when it is to late and the move is about to be completed.
Risk management is another major factor to consider since it is vital to be able to defend your capital during times of uncertainty and excessive volatility.
All of this turns into a trading system that should be followed strictly without any major deviation. Staying emotionless and logical is also very important in trading.
Now let’s have a closer look at the moneymaking tips given by Masterforex-V Academy…
Market Leader interviewed Mr. Pressler and asked him to share his winning tips with all of us…
Market Leader:
Is it worth trying to capture 200 pips at a time? Isn’t it easier to capture 20pips 10 times?
Mr. Pressler:
Indeed, it looks much easier. Still, my own experience tells me that such a trading approach is less effective. It is an illusion that any time you can take 20 pips you actually take this amount! In reality no trader can show 100% efficiency. My best students show 50% to 60%. A lot of trading opportunities is missed for many reasons. This means that only 6 out of 10 potential trades will actually be made. Some of those trades can eventually turn into losers, which means that in 10 trades you will actually make 50-60 pips instead of 200 pips.
Now consider the fact that you spent much more time and effort to open maintain and close those trades. Therefore, any trader who wants to succeed in the long run should get used to ratios when the potential profit is 10 or more times as high as the potential risk.
Market Leader:
When such trades are possible? How can you anticipate such price moves?
Mr. Pressler:
Apparently, you cannot know for sure and there is no point in trying to guess. Still, we can always count on certain volatility. For example, my department (a part of Masterforex-V Academy) is responsible for studying the volatility of currency markets. Any price fluctuation belongs to a certain level and each of them occurs within a certain market environment under certain conditions. These conditions can increase or decrease the volatility of a certain market. For example, the charts below show us the correlation between level 2 waves (or secondary waves) and primary (major) momentums. When the price reverses, the amplitude of secondary wave gets higher (the volatility on smaller-scale time frames increases). Apparently, when a trader is aware of the fact and knows where his/her trade is at within these fluctuations, he/she can count on certain price moves.
Market Leader:
Can you please cite an example of such a trade made by our students?
Mr. Pressler:
Of course, I can. The charts below indicate such a trade. There are 2 price charts – M5 and H1. The first one shows a wave count that indicates an ongoing bearish move represented by wave 3. Then we analyze the M1 chart to identify the local wave count and to find a suitable entry point with low risks. If I’m not mistaken, the stop-loss is placed just 10 pips away from the deal. Meanwhile, the expected amplitude of the forthcoming move has come close to 100 pips.
Market Leader:
If your students are capable of opening such trades, what are their results?
Mr. Pressler:
Well, results may differ from student to student. They are humans and are subject to emotions, which usually affect their trading performance. Still, we always have a lot to boast. In other words, most students are capable of doubling up (or at least making +50%) within 4 weeks. The chart above is the performance shown by a relatively young student (just 8 lessons).
Market Leader:
Where can people get acquainted with your trading strategy? How can they become your students?
Mr. Pressler:
You can find us by visiting Masterforex-V Academy’s forum for traders and investors. By the way, we usually conduct free webinars and online workshops, so you are welcome to participate! Good luck!
Ivan Zhigalov
