My favorite methods for trading forex, futures or stocks are behavior-based. Human behavior, that is. Humans don't change much, especially as to greed and fear, which is what the markets are all about....
I've not seen this short but pithy volume even mentioned here on BBHF, so I decided to share it. The trading manual is unlike anything you've read recently.
It's a method that finds “100% can't-lose trades”.
Yes, you read that correctly!
I know the guy who wrote it, and he still trades the same methodology he teaches in this compact but amazingly complete trading course.
Below I've attached a chart snap of a trade I took this morning that I've been waiting days for. Using the exact techniques that Lee Sahafi reveals here.
I know there are a good number of Price Action traders (or at least serious aficionados) present on this forum.
I received this manual back in 2006 from the author, Lee Shahafi. Forex forums were “alive” back then, when Forex was still considered NEW and all the quick-buck-artists got their starts.
This material is timeless. The revealed principles worked perfectly in the 1850's in commodity and stock trading – and work perfectly right now in 2018.
But be warned!
This is not set-and-forget trading. You will not be trading every hour or even every day. You will have to be aware of the position of the markets on a consistent basis or this will not work for you. Count on a lot of waiting. Why should you mind when the trades you find are winners?
[Excerpt of page 12 of No-Fail Forex, what to do when indicators don't work and systems fail.]
I recently read a review of an expensive trading system. The reviewer was
enthusiastic, crowing that he was capturing 100 pips per week on average. He
also mentioned he couldn't wait until he could work the system well enough to
capture 200 pips per week. After that, what -- 300 pips?
Obviously, the sky is not the limit with this kind of thinking. At some point -- and
long before 300 pips a week -- the goal becomes totally unrealistic.
Personally, I project my income based on 50 pips a week.
I know that even a poorly performing market will provide enough opportunities
for me to capture at least 50 tips. But unless the market makes me an offer I
can't refuse, I'm not too keen on capturing much more than 50 pips.
That's right. I don't want much more than 50 pips a week. Other than trading
the news, if I capture more than 50 pips in an average week, I see red flags that
warn I may be over trading.
Overtrading is the leading cause of failure in forex.
Despite what you've heard, it's not undercapitalization that results in disaster.
Many people lose thousands and even tens of thousands repeatedly funding their
Forex accounts in an effort to keep the dream alive. They had plenty of money.
What they didn't have was an understanding of how to trade profitably with the
money they had.
The way to riches is not in capturing more pips, because the more pips you try to
capture, the more you increase your risk.
The way to riches is in trading an appropriate number of lots.
With only 50 pips a week, I can make $50 trading one mini lot.
Or $500 trading one standard lot.
Or $5000 trading 10 standard lots.
Yes, you can earn $5000 a week by capturing an average of 10 pips a day in one
or two small, can't lose trades.
Or you can chase after hundreds of pips, taking trades that look good instead of
trades that can't lose, and in the process you will make losses that only increase
the number of pips you must capture in order to reach your goal.
I don't have a pip goal. I've learned from experience that I tend to average 50 -
70 pips a week in a typical market, but I never focus on capturing x number of
pips. I focus only on stalking the 100% can't-lose trade.
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