If you’re having a hard time making consistent profits in the forex market, there’s probably a very good reason for that.
That’s because most forex traders have been sold a pack of lies that cause them to lose money. Here are the three biggest ones:
You need lots of indicators on your charts.
Short term charts are the best way to make money in currency trading.
Taking a steady stream of small profits is the surest way of getting rich in forex “because you can’t go broke by taking a profit.”
By “short term”, I’m talking about 5, 10 and 15-minute (or even one hour) charts where traders try and take 5, 10, or 15 pips from an individual trade.
I’m sorry to say that entire mindset is all wrong.
That’s because the real money is made in the longer term charts.
If you’re trying to take 10 or 15 pips out of an individual trade on a short term chart, you have to risk 10 pips or 15 pips to do it. This is a 1:1 risk/reward ratio. And it means you must win at least 3 trades from 4 day in and day out.
As you’ve probably discovered by now, a 75% win rate (or better) is very difficult if not statistically impossible in most cases.
And quite frankly I think this is why over 90% of traders lose their entire account in their first 3 months of trading. They’re simply taking the wrong approach.
The short-term “carve out trade” trap only puts you in a fight with your broker. A fight your broker is going to win every time thanks to the spread, commission and random high volatility which can take you right out of an otherwise good trade.
(When making lots of small trades, you also suffer from decision fatigue because you’re making so many decisions that your mental alertness suffers over time.)
Wouldn’t it be much better to win big by taking the longer view?
Me and hundreds of my Pattern Trader Elite members around the world pocketed 1,726 pips last November alone. For every one lot contract that means about $17,260 in your account.
From longer term trades, we closed out 3,357 pips in just one week.
And for 2017 as a whole, we bagged more than 9,000 pips all together. For every one lot contract that’s $90,000 in profit. (Even small accounts could have brought in $9,000 or more.)
These aren’t trades I made off 15 minute or even one hour charts.
That’s because I look at the long term with daily and weekly charts. That’s where the real money is in forex trading.
I target trades with at least a 3:1 risk/reward ratio. That means if I’m risking 50 pips, I need to see at least a 150 pip reward. The math will show you that you can lose on 50% of your trades and STILL be a big winner.
My winning track record proves my contention that unless you can find and capitalize on bigger trades, it’s very improbable you’re going to be successful. Lots of little winners just won’t cut it because sooner or later you’re going to hit a losing streak and wipe out.
Big trades can make you profitable over the long run despite multiple losses.
So would you like to know the one currency pair in particular that accounted for the lion’s share of those huge profits from last year?
Especially since I think it’s due for another big run or two this year too? (We’re already getting into some early long positions in this one again.)
It’s the British pound against the New Zealand dollar currency pair (GPDNZD).
I’ve been hot on this pair for awhile. In fact, ever since October 2016 I predicted a massive reversal higher in the British pound against the New Zealand dollar currency pair (GPDNZD).
It was a very profitable prediction because GBPNZD rocketed from 170 to almost 199 in 2017 and then back to 190 where it is right now in early 2018.
Let me show you how a couple of 2017 winning trades worked so you’ll see how I expect the next ones to play out …
As you can see, we made two separate entries at 1.7509 and 1.7931.
Even with 388 pips gained on the first position before we got into the second one, I knew GBPNZD was ready for a big run. It was just building and building off the double bottom it had established a few weeks earlier.
And soon enough it had a huge week to the upside I was expecting. That final long blue bar pushed the price all the way to previous resistance. We closed out both trades together for over 1,500 pips between them.
That’s around $15,000 per lot traded in just two months. It was just the start too, as my track record above proves. GBPNZD has been a profit factory for me and my subscribers.
By now you maybe wondering how I decided when to get in and when to get out of this pair.
Here’s the current GBPNZD chart right how:
October 2016 is where we had an initial bottom in GBPNZD. That long red bad followed by several inside bars and then a long blue bar piqued my interest in a big way.
That’s because the small inside bars represented stored energy — just like a coiled spring. When that spring went up (the long blue bar in that first bottom), I knew something significant was in the works.
Then we established the second bottom, and I had the confidence to recommend and profit from those two trades for 1,500 pips I showed you earlier in this article.
Since then GBPNZD has continued a wildly profitable ride for us. It’s passed through the neckline that joined the two bottoms and established another rounding bottom and a successful retest of the neckline.
It’s been “game on” for GBPNZD ever since I first spotted it and in fact, there aren’t many bigger trades than going long GBPNZD … again.
I expect 2018 to be just as profitable in this pair as 2017 proved to be.
That’s why me and my Pattern Trader Elite members are already long GBPNZD at 1.8977 and why we’re looking to get another position too.
That’s because a break-out above the recent “rising channel” price pattern should generate continued momentum to the upside. And the very recent, very bullish key reversal bars are pointing the way up. They’re hammering out another bottom and pointing the way for future bullish gains.
That’s why I’m hotter than ever on GBPNZD. I think that this market still has a long way to go. Never mind hundreds of pips …
Thousands more are on the way!
GBPNZD is far from finished and we’re going to see some very big ranges as it truly gets rolling. We could have 1,000+ pip weekly ranges going forward. In fact, I expect this market to hit 205 and then 215 and perhaps even 235.
That’s thousands of pips from where we are right now.
Just be cautious. The ranges are likely to become huge and you could get stopped out by the volatility if you set your stops too tight.
There’s a science and an art to getting your stop losses positioned correctly in a market like GBPNZD.
So if you’re a bit worried about how to trade a mega-move like this, then let me help.
I’m preparing an event to show you exactly how it’s done.
My LIVE 2-Day Bootcamp is where I’ll demonstrate exactly how to make currency trades just like the ones I’ve outlined here, including my “Lazy Trader’s” 5-step execution plan that’s pulled in more than 9,000 pips in 2017.