Frozone Hat
Phase 1 - Introduction To Forex
I heard you tryna make money like me, gang. Start by getting cultivating some key knowledge lol. Allow me to Welcome you to the Phase 1 of The Dojo of SenseiFX, where we're diving into the essentials of achieving financial success. Let's embark on this journey together!
Introduction to Forex
What is Forex?
You might think the stock market is massive, but wait till you hear about the largest financial market in the world where fiat currencies are traded. Let's dive into the basics of forex trading and how you can participate.
What Is Traded In Forex?
In forex trading, the name of the game is currencies. You can buy and sell currencies against each other for short-term trades, long-term investments, or anything in-between.
Buying And Selling Currency Pairs
One essential aspect of forex trading is that currencies are traded in pairs. You cannot buy or sell a currency without involving another currency in the trade.
Forex Market Size And Liquidity
The forex market is enormous, and this size comes with numerous benefits for currency traders due to its high liquidity.
How To Trade Forex
Traders engage in the forex market through various methods, including the spot market, futures, options, and exchange-traded funds.
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How Do You Trade Forex?
Now, let's delve into the practicalities of making money in forex trading.
How to Make Money Trading Forex
Learn the fundamentals of forex trading, how it works, and what you need to get started.
Know When to Buy or Sell a Currency Pair
Understand the factors that influence the value of a currency and when to make buying or selling decisions.
What is a Pip in Forex?
Familiarize yourself with the terms "pips," "pipettes," and "lots" and how they are calculated.
What is a Lot in Forex?
Learn about the different unit sizes of currency trades and their corresponding names.
What is a Spread in Forex Trading?
Discover what a "spread" means in forex trading (hint: it's not about sandwiches).
Cultivate your brain
Master some forex terms to impress your special someone.
Types of Forex Orders
Explore the various types of orders used in forex trading to buy and sell currencies.
Trading Order Types Cheat Sheet
A handy cheat sheet summarizing common order types, their functionalities, and pros and cons.
Demo Trade Your Way to Success
Practice trading on a demo account to avoid common mistakes before risking real capital.
Can You Get Rich By Trading Forex?
While it's possible to achieve wealth through forex trading, it requires skill, experience, and time.
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When Can You Trade Forex?
Learn about the different trading sessions in the forex market and when they offer the most opportunities.
Forex Trading Sessions
Understand the four major trading sessions and when they are active.
When Can You Trade Forex: Tokyo Session
Explore the Asian trading session, which starts the forex market activity each day.
When Can You Trade Forex: London Session
Discover why London is considered the forex capital of the world and its significance in trading.
When Can You Trade Forex: New York Session
Learn about the forex action and opportunities during the New York trading session.
Best Times of Day to Trade Forex
Identify the most dynamic market action and volume-rich periods during the trading day.
Best Days of the Week to Trade Forex
Understand the best and worst days for forex trading.
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Who Trades Forex?
Explore the different participants in the forex market, from banks to individual traders.
Forex Market Structure
Understand the competitive nature of the forex market due to the absence of a centralized exchange.
Forex Market Players
Learn about the five primary groups that make up the forex market.
Know Your Retail Forex History!
Discover the origins of retail forex trading and its evolution.
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Why Trade Forex?
Find out why traders find the forex market attractive.
Why Trade Forex: Advantages Of Forex Trading
Explore the advantages of the forex market, including low transaction costs and high liquidity.
Why Trade Forex: Forex vs. Stocks
Compare forex trading to stock trading, noting the differences in market structure.
Why Trade Forex: Forex vs. Futures
Understand the distinctions between forex trading and futures trading in terms of market size.
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BlackBelt Margin: Understand How Your Margin Account Works
Get a beginner's guide to margin trading to safeguard your trading account.
What is Margin Trading?
Learn the ins and outs of margin trading in the forex market, including margin jargon.
What is Account Balance?
Understand your account balance and the factors that influence its changes.
What is Unrealized P/L and Floating P/L?
Comprehend the concepts of unrealized and floating P/L and their impact on your account balance.
What is Margin?
Explore the concept of margin and its different forms in forex trading.
What is Used Margin?
Learn about used margin, how it differs from required margin, and how it's calculated.
What is Equity?
Understand the significance of account equity and why it requires constant monitoring.
What is Free Margin?
Explore the concept of free margin, its fluctuations, and how to calculate it.
What is Margin Level?
Discover the margin level and its implications for your account, including potential losses.
What is a Margin Call?
Understand the margin call level and its implications for your trading account.
What is a Stop Out Level?
Learn about the stop out level and how it differs from a margin call.
Trading Scenarios: Margin Call Level at 100% and No Separate Stop Out Level
Explore a margin trading scenario with a 100% margin call level and no separate stop out level.
Trading Scenarios: Margin Call Level at 100% and Stop Out Level at 50%
Analyze a margin trading scenario with a 100% margin call level and a 50% stop out level.
Trading Scenario: What Happens If You Trade With Just $100?
Learn about the consequences of trading forex with a $100 margin account.
Warning: Different Forex Brokers Have Different Margin Call and Stop Out Levels
Be aware of varying margin call and stop out levels set by different brokers.
The Relationship Between Margin and Leverage
Understand the connection between margin and leverage and how they differ.
Margin Jargon Cheat Sheet
A quick reference guide to essential margin trading terms.
How to Avoid a Margin Call
Discover five strategies to prevent a margin call while trading forex.
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Forex Dojo Phase 2
Congratulations future trader on achieving the significant milestone of transitioning from a white belt to a yellow belt in the BlackBelt Forex world! Your dedication, perseverance, and hard work have paid off, and it's truly commendable.
Just like in martial arts, the journey in forex requires discipline, patience, and the ability to adapt. By advancing to the yellow belt level, you have proven your skills and gained a deeper understanding of the forex market. You are now better equipped to navigate the complexities and challenges that lie ahead.
Remember, becoming a successful forex trader is an ongoing process, and this achievement is just the beginning of an exciting adventure. As you continue to progress, always keep an open mind to learn, grow, and refine your strategies.
Embrace this moment with pride, but also with humility. Stay curious, stay hungry for knowledge, and keep honing your skills to achieve even greater heights in the forex world. Your dedication to self-improvement will undoubtedly lead you to achieve more colored belts as you continue to master the art of forex trading.
Congratulations once again on your yellow belt achievement! May your future endeavors in the forex world be filled with prosperity and success. Keep pushing forward and remember that the journey is just as rewarding as the destination. Best of luck on your continued journey towards becoming a seasoned forex expert!
~ SenseiFx
Forex Brokers 101
The first step in the real world of forex is opening an account with a forex broker. Here's what you need to before you choose a broker.
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Choosing a forex broker will be the first crucial decision you’ll make as a new trader. Here’s what you need to know.
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How do forex brokers work? Here’s a story that helps explain what forex brokers actually do.
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Is the Forex Broker a Legit Company?
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You are about to open a trading account with a forex broker and deposit your money so you can trade. Can you trust it?
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Is the Forex Broker Licensed and Regulated?
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Is your forex broker licensed and regulated? Learn why you should choose a regulated broker and how to verify its status.
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What Are You Actually Trading In Forex?
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Retail forex traders do not buy or sell actual currencies. If that’s the case, then WHAT are you actually trading?
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Learn how retail traders who trade forex use derivatives called CFDs and rolling spot FX contracts.
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Where Are Retail Forex Traders Actually Trading?
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Retail forex traders do not trade in the “real” FX market. If that’s the case, then WHERE are you actually trading?
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How Forex Brokers Manage Their Risk and Make Money
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Learn how forex brokers make money and manage the risk on the other side of your trades.
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B-Book: How Forex Brokers Manage Their Risk
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Learn how forex brokers take the opposite side of your trade and accept the market risk by using B-Book execution.
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A-Book: How Forex Brokers Manage Their Risk
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Learn how forex brokers transfer their market risk by using A-Book execution.
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Learn how forex brokers who use A-Book execution make money.
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Challenges of A-Book Execution
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A-Book execution for forex brokers is not risk-free and comes with its own challenges. Learn how A-Book brokers can end up as a money-losing business.
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STP Execution: How Forex Brokers Manage Their Risk
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Learn about the STP execution model. Forex brokers may use STP and A-Book interchangeably but they are different.
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Internalization: How Forex Brokers Aggregate Orders and Hedge Residual
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Instead of managing the risk of each trade individually, internalization allows a forex broker to aggregate customer trades that are similar so it only has to hedge any excess exposure.
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Learn why forex brokers choose to B-Book even though it exposes themselves to market risk and losing money.
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The “Hybrid Model” Used By Forex Brokers
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A forex broker is not limited to just one form of hedging. It can A-Book, B-Book, or do both. This is known as the Hybrid Model.
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C-Book: How Forex Brokers Manage Their Risk
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Aside from forex brokers who “A-Book” or “B-Book”, you might also come across the term “C-Book”. Learn about this controversial order execution method.
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Know Your Forex Broker’s Hedging Policy
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Make sure you understand your broker’s hedging policy so you can properly assess counterparty risk in dealing with your broker.
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Where Does the Forex Broker’s Price Come From?
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Did you know that your forex broker may show any price it wishes? Are you sure that the prices are the same as the real FX market?
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What is the Forex Broker’s Order Execution Quality?
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There are shady brokers out there that manipulate order execution conditions in their favor. Is your forex broker committed to treating you fairly when it
executes your orders?
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Three Types of Analysis
What's it gonna be? The red pill, the green pill, or the blue pill?
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3 Types of Forex Market Analysis
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There are three basic types of market analysis: technical, fundamental, and market sentiment. Which suits you?
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Technical analysis is the framework in which traders study price movement.
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If you like analyzing social, economic, and political factors that affect currency supply and demand, then fundamental analysis is for you!
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Sometimes it’s not always about the numbers, but how market players feel…how do you figure out and trade forex off of that?
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Which Type of Analysis for Forex Trading is Best?
In order to become a true forex master you will need to know how to effectively use these three types of analysis.
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Types of Charts
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3 Types of Price Charts and How to Read Them
What's your type? PAUSEEEEEEE (By that I mean charts.)
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Forex Dojo Phase 3
"In the realm of forex trading, the trader must embody the spirit of a disciplined sensei in karate, for just as a skilled martial artist hones their techniques through years of patient practice, the forex trader must master the art of patience, persistence, and precision to conquer the ever-changing market landscape. As a sensei imparts wisdom to their students, teaching them to stay focused and calm amidst chaos, the forex trader must embrace knowledge and education, learning from both successes and failures, transforming each trade into a valuable lesson.
Just as a sensei stays humble and respectful, knowing that true power lies not in aggression, but in balance and control, the forex trader must avoid reckless impulsiveness and greed, seeking balance in risk management and prudent decision-making. The sensei emphasizes the importance of self-awareness, to know one's strengths and weaknesses, and the forex trader must likewise understand their risk appetite, trading style, and market approach.
Like a sensei who adapts their techniques to suit different opponents, the forex trader must remain adaptable and flexible, adjusting strategies as the market shifts, understanding that no single approach guarantees success. With the patience of a sensei, the forex trader endures through the rough patches, knowing that perseverance and continuous learning pave the way to mastery.
In the dojo, a sensei instills the value of resilience, encouraging students to rise after each fall, and in the world of forex, the trader must embrace setbacks as opportunities for growth, remaining steadfast on the path to proficiency. As a sensei imparts the virtue of respect for oneself, others, and the art, the forex trader must respect the market, its participants, and the profound intricacies of global finance.
Ultimately, the forex trader who embodies the essence of a sensei karate realizes that success is not a destination, but an endless journey, a pursuit of excellence, where the mind is sharpened, the spirit strengthened, and the wisdom deepened, always striving to achieve a state of harmony with the market and oneself."
~ SenseiFx
Support and Resistance Levels
The first step in the real world of forex is opening an account with a forex broker. Here's what you need to before you choose a broker.
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What is Support and Resistance
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Let’s start with the most basic concept of price action analysis and how to start plotting them.
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Now that you understand trendlines, let’s take it a step further into channels to see opportunities in trends.
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Now that you understand trendlines, let’s take it a step further into channels to see opportunities in trends.
How to trade support and resistance
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Time to learn how to trade the lines using two simple ideas: the Bounce and the Break!
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Learn about these “invisible lines” that can act as support or resistance levels because so many traders are watching them.
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Summary: Trading Support and Resistance
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A quick recap on support and resistance zones, and how to spot potential trading opportunities with them.
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Japanese Candlestick
Quick Shoutout to my nigga Mr. Steve Nison, for "discovering" the art of candlesticks! Gangnem
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What is a Japanese candle stick
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See why reading Japanese candlestick charts is a popular component of technical analysis.
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Just like humans, candlesticks have different body sizes. As forex traders, it’s important to take note of what type of body a candlestick takes!
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Basic Japanese Candlestick Pattern
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What do spinning tops, marubozus, and dojis have in common? They’re all the basic types of candlesticks!
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What the heck is the difference between a hammer and a hanging man? Time to start learning about your basic candlestick patterns!
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They say that trouble comes in twos. Read on to find out how dual candlestick patterns may not necessarily spell double trouble for your account.
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Triple Candlestick Pattern
In the forex market, three’s not always a crowd. Not when you’re talking about morning stars, black crows, and three inside up patterns, that is.
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Japanese Candlestick Cheat Sheet
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Think you’re ready to spot basic candlestick patterns with blindfolds on? If not, don’t worry! Here’s a candlestick pattern cheat sheet just for you.
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Common Mistakes that Most Traders Make with Japanese Candlestick
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Here are five mistakes that new traders often make when using Japanese candlesticks.
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Candlestick with Support and Resistance
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Here’s a rundown of what you need to remember about Japanese candlestick patterns.
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Learn how to trade candlesticks with support and resistance levels.
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Now that you know about the basic Japanese candlestick patterns, why not take it to the next level and learn about the Fibonacci retracement tool?
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No, Fibonacci is not some type of pasta. Learn all about the man behind the concept and what it actually means.
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How to Use Fibonacci Retracements
The first thing you should know about the Fibonacci retracement tool is that it works best when the market is trending.
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Fibonacci Retracements are NOT Foolproof
What happens when Fibonacci fails? Could it be because of your swing highs and lows, or are markets just not responding to it?
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How to Use Fibonacci Retracement with Support and Resistance
In this lesson, we’ll show you how to combine the Fibonacci tool with support and resistance levels.
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How to Use Fibonacci Retracement with Trend Lines
What’s another way to tilt Fibonacci levels in your favor? Combining it with trend lines, of course!
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How to Use Fibonacci Retracement with Japanese Candlesticks
Check out how combining candlestick patterns with Fibonacci levels can improve your trading odds.
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How to Use Fibonacci Extensions to Know When to Take Profit
Fibonacci levels aren’t only used to spot entry areas – they’re also good places to take profit!
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How to Use Fibonacci to Place Your Stop so You Lose Less Money
If you can take profit at Fib levels, then you can definitely place stop losses there too!
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Summary: Fibonacci Trading
Here’s a review of what exactly the Fib levels are, as well as their use in trading.
Moving Averages
Thinking of trading in a trending environment? Try using moving averages!
A moving average is simply a way to smooth out price action over time. Here’s what it looks like.
Simple Moving Average (SMA) Explained
These are calculated by adding up the last “X” period’s closing prices and then dividing it by X. Confused? Don’t worry, we’ll make it crystal clear.
Exponential Moving Average (EMA) Explained
Think an SMA is too easy breezy for you? Try your hand at using EMAs!
Simple vs. Exponential Moving Averages
How does an SMA differ from an EMA? It’s pretty simple, actually.
How to Use Moving Averages to Find the Trend
One sweet way to use moving averages is to determine trends. And that’s just the beginning!
How to Use Moving Average Crossovers to Enter Trades
If MA lines cross over one another, it may signal that the trend is about to change soon.
How to Use Moving Averages as Dynamic Support and Resistance Levels
Another way to use moving averages is to use them as non-traditional support and resistance levels. Here’s how:
How to Use Moving Average Envelopes
Learn how to use moving average envelopes (MAE) to help you confirm trends or identify overbought and oversold levels.
How to Analyze Trends With Moving Average Ribbons
What’s a moving average ribbon? Learn how to easily identify bullish or bearish trends using moving average ribbons.
How to Trend Trade with Guppy Multiple Moving Average (GMMA)
The Guppy Multiple Moving Average (GMMA) indicator provides an interesting trading approach using moving average ribbons.
Summary: Using Moving Averages
You may forget your name, but you should never forget the basics of moving averages!
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Popular Chart Indicators
Trading is like building a house--you gotta have the right tool for the job at hand. So let's put more tools in our tool box!
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What better way to start building up your trading toolbox than by reading up on Bollinger Bands!
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The Keltner Channel is a moving average band indicator whose upper and lower bands adapt to changes in volatility. Learn
how the Keltner Channel is used to give overbought and oversold readings and signal possible price breakouts.
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The MACD is used to identify moving averages that indicate a new trend. With a MACD, it’s all about three numbers.
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In trading trending markets, it is equally important to identify when the trend ends. The parabolic SAR might be just what you need!
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How to Use the Stochastic Indicator
Learn how traders use the Stochastic indicator that help determine where a trend might be ending.
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How to Use RSI (Relative Strength Index)
If you find that Stochastic isn’t your cup of tea, then you might want to take a look at the good ol’ RSI.
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How to Use Williams %R (Williams Percent Range)
The Williams %R, or simply “%R”, is a momentum indicator that moves between 0 and -100, providing insight into the weakness or strength of a currency pair. %R is an overbought and oversold technical indicator that may offer potential buy and sell signals.
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How to Use ADX (Average Directional Index)
ADX is typically used to identify whether the market is ranging or starting a new trend. Here’s how traders usually read ADX signals:
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No, “Ichimoku Kinko Hyo” ain’t Japanese for “May the pips be with you,” but it can help you grab those pips nonetheless.
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Trading with Multiple Chart Indicators
Now that you know how some of the most common chart indicators work, you’re ready to get down and dirty with some examples.
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What is the Best Technical Indicator in Forex?
Now on to the good stuff: Just how profitable is each indicator on its own?
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Summary: Popular Chart Indicators
Here’s a recap of the latest trading tools that you’ve learned that will make your momma proud!
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Fibonacci
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Forex Dojo Phase 4
Welcome to Phase 4 of (Subject). Within the complex web of the global financial landscape, the forex market emerges as a hub of unparalleled dynamism and potential. Here, the threads of economies, geopolitical shifts, and human psychology intertwine, creating a rich narrative that unfolds through charts and spreads. As candlesticks rise and fall, they illuminate the path for savvy traders willing to decipher the language of price action.
Amidst the constant fluctuation of currency pairs, a symphony of data points and news events compose a melody that resonates across borders. Central banks orchestrate their monetary moves, political decisions ripple like seismic waves, and economic indicators punctuate the rhythm of trading days. It's a realm where fortunes aren't merely traded, but sculpted through a blend of analysis, strategy, and a touch of artistry.
In this domain, volatility serves as both foe and friend, where risk and reward engage in an age-old dance. Traders, positioned at their terminals, become modern alchemists, converting insights into profit and countless hours of diligence into tangible gains. The forex tapestry is vast, encompassing participants ranging from institutional giants to individual visionaries.
As the sun never sets on the forex market, the quest for knowledge becomes an ongoing journey. Aspiring traders begin as novices, absorbing the wisdom of mentors, delving into technical complexities, and nurturing an intuition in harmony with the market's pulse. It's a journey that extends beyond mere charts, encompassing qualities like discipline, resilience, and an insatiable curiosity.
To those who dare to step onto the forex stage, may your analysis be sharp, your convictions unwavering, and your risk management steadfast. In this arena where currencies intersect, you wield the power to navigate the currents of fortune and mold your financial destiny. Welcome to the expansive and intricate world of forex trading, where each moment offers a chance to learn, adapt, and flourish.
~ SenseiFx
Oscillators and Momentum Indicators
There are two types of charts indicators: leading and lagging. Which one suits you better?
Leading vs. Lagging Indicators
Leading indicators give signals BEFORE a new trend or reversal occurs, while lagging indicators give signals AFTER a trend or reversal. But that’s not all!
How to Use Oscillators to Warn You of the End of a Trend
How do you spot a trend? Maybe lagging indicators can help you out!
How to Use MACD to Confirm a Trend
Is the trend you’re in ready to push forward or sputter out?
Summary: Leading and Lagging Indicators
Now that you know the pros and cons of both the leading and lagging indicators, which one do you think works better for you?
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Grade 7 Important Chart Patterns
Price action can make cool pictures on your chart...and they actually give a clue to market behavior too!
Chart patterns are like that funny feeling you get in your tummy right before you let a fart explode. Here’s why!
How to Trade Double Tops and Double Bottoms
Hey look, doubles isn’t just a tennis term! Read all about double tops and double bottoms!
How to Trade the Head and Shoulders Pattern
A head and shoulders pattern is also a trend reversal formation. And you thought it was something to make your hair silky
smooth and flake-free!
How to Trade Wedge Chart Patterns
If you’re thinking shoes or cheese, then you’ve got another thing coming! Wedges are in your charts too!
How to Use Rectangle Chart Patterns to Trade Breakouts
Now aren’t you glad you paid attention to your shapes when you were just a tot? Who would’ve guessed rectangles are used in trading too?
How to Trade Bearish and Bullish Pennants
Similar to rectangles, pennants are continuation patterns formed after strong moves.
How to Trade Triangle Chart Patterns
Can’t get enough of basic shapes? Feast your eyes on these triangle chart patterns!
Know the 3 Main Groups of Chart Patterns
You might know what the chart patterns are, but do you know when to use them?
If you’re having trouble remembering your new chart patterns, then here’s a cheat sheet just for you!
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Grade 8 Pivot Points
After you're done with this section, Peter Parker won't be the first thing that will come to your mind when you read the abbreviation "PP."
Pivot points can be used in identifying reversal or breakout areas. Read on to find out how to use these support and resistance levels.
Wanna use pivot points in your trading but don’t know how to calculate them? Let us show you how!
How to Use Pivot Points for Range Trading
Check out these examples on how to use pivot points in range trading. Even better, we’ll show you how to combine candlestick analysis with pivot points!
How to Use Pivot Points to Trade Breakouts
As with all support and resistance levels, pivot point levels won’t hold forever. Learn how to make pips when pivot points fail!
How to Use Pivot Points to Measure Market Sentiment
Did you know that pivot points can also help you determine whether traders are more inclined to buy or sell a currency pair?
Know the 3 Other Types of Pivot Points
Most trading platforms can draw’em for ya, but you should also know how to crunch those numbers yourself in case of nuclear war…huh?
Here are some easy-to-memorize tips to help you make the most out of pivot points!
Forex Dojo Phase 5
"Within the intricate tapestry of the global financial ecosystem, the foreign exchange market stands as a nexus of unparalleled dynamism and opportunity. Here, the threads of economies, geopolitics, and human psychology intertwine, weaving a complex narrative that unfolds across charts and spreads. As candlesticks rise and fall, they illuminate the path for astute traders who dare to decipher the language of price action.
Amidst the ebb and flow of currency pairs, a symphony of data points and news events compose a melody that resonates across continents. Central banks conduct their monetary overtures, political decisions reverberate like seismic waves, and economic indicators punctuate the rhythm of trading days. It is a realm where fortunes are not merely traded, but molded through the crucible of analysis, strategy, and a touch of artistry.
In this realm, volatility is both adversary and ally, where risk and reward engage in a timeless dance. Traders, poised at their terminals, become modern-day alchemists, transforming insights into profit, and hours of diligence into tangible gains. The tapestry of forex is vast, encompassing a spectrum of participants from institutional giants to individual dreamers.
And so, as the sun never sets on the forex market, the pursuit of knowledge is a ceaseless journey. Aspiring traders embark as novices, absorbing the wisdom of mentors, immersing themselves in technical intricacies, and cultivating an intuition that resonates with the market's pulse. It's a journey that unfolds beyond the confines of charts, encompassing discipline, resilience, and a thirst for understanding.
So, to those who dare to step onto the forex stage, may your analysis be sharp, your convictions unwavering, and your risk management unyielding. In this realm where currencies collide, you have the power to navigate the tides of fortune and shape your financial destiny. Welcome to the vast and intricate world of forex trading, where every moment is a chance to learn, adapt, and thrive."
~ SenseiFx
Heikin Ashi
Have you closed out a trade, only to see price keep going in your favor? Heikin Ashi is a different kind of Japanese candlestick chart that rearranges how price is displayed so traders know whether to continue to ride the trend or get out.
Learn what Heikin Ashi is and how this trendy candlestick chart can help traders who like their prices smooth.
Heikin Ashi Candlestick Chart vs. Traditional Japanese Candlestick Chart
Learn the difference between Heikin Ashi candlestick charts versus traditional Japanese candlestick charts.
Learn how Heikin Ashi candlesticks are calculated.
How to Use a Heikin Ashi Chart
How do you use Heikin Ashi? Learn how to use and read a Heikin Ashi candlestick chart.
How to Trade Using Heikin Ashi
How do you trade Heikin Ashi? Learn how to trade forex and other markets using Heikin Ashi charts.
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Heikin Ashi is great for identifying trend direction and trend strength but it does have some weaknesses and limitations.
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Here’s a summary of what you need to remember about Heikin Ashi. We review what Heikin Ashi is, how to calculate Heikin Ashi and the advantages and disadvantages of using it.
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Elliott Wave Theory
Have you ever heard of a charting technique that actually takes into account market psychology? If you haven't, it's time for you to get to know Mr. Ralph Neison Elliott.
Introduction to Elliott Wave Theory
Amidst all the chaos in the market, Mr. Elliott found order. The Elliot Wave Theory gives us a way to identify highly probable points where price is most likely to reverse.
According to Elliot, a trending market moves in a 5-3 pattern. Find out what that means here.
The Zig-Zag, the Flat, and the Triangle are all types of ABC correction wave formations.
Fractals: Elliott Waves Within an Elliott Wave
Always remember that each wave is comprised of smaller wave patterns and that this pattern tends to repeat itself FOREVER.
3 Cardinal Rules of the Elliott Wave Theory
Before you jump right into applying the Elliott Wave Theory to your trading, you must take note of the following three cardinal rules.
How to Trade Forex Using Elliott Waves
Enough jibberjabber – it’s time to see the real thing! Here’s how you can apply Elliott Waves in trading.
Before you test your Elliott Wave skills in trading, make sure you’ve got its basics down to a tee.
Harmonic Price Patterns
If you still think that ABCD and Gartley and the Animals are parts of a nursery rhyme, then you need a lesson on Harmonic Price Patterns!
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Harmonic Price Patterns in the Forex Market
Harmonic price patterns are all about retracements. Let’s jump back into some trends!
With the Fibonacci retracement tool, making pips can be as easy as A-B-C. Seriously!
Learn about a super smart dude’s solution to two of the biggest problems of traders: what and when to buy.
3 Steps to Trading Harmonic Price Patterns
Trading Harmonic Price Patterns is as easy as 1-2-3! Locate the potential price pattern, measure it, and then buy or sell upon its
completion!
Summary: Harmonic Price Patterns
Harmonic price patterns are all about retracements. Let’s jump back into some trends!
Forex Dojo Phase 6
"Within the intricate tapestry of the global financial ecosystem, the foreign exchange market stands as a nexus of unparalleled dynamism and opportunity. Here, the threads of economies, geopolitics, and human psychology intertwine, weaving a complex narrative that unfolds across charts and spreads. As candlesticks rise and fall, they illuminate the path for astute traders who dare to decipher the language of price action.
Amidst the ebb and flow of currency pairs, a symphony of data points and news events compose a melody that resonates across continents. Central banks conduct their monetary overtures, political decisions reverberate like seismic waves, and economic indicators punctuate the rhythm of trading days. It is a realm where fortunes are not merely traded, but molded through the crucible of analysis, strategy, and a touch of artistry.
In this realm, volatility is both adversary and ally, where risk and reward engage in a timeless dance. Traders, poised at their terminals, become modern-day alchemists, transforming insights into profit, and hours of diligence into tangible gains. The tapestry of forex is vast, encompassing a spectrum of participants from institutional giants to individual dreamers.
And so, as the sun never sets on the forex market, the pursuit of knowledge is a ceaseless journey. Aspiring traders embark as novices, absorbing the wisdom of mentors, immersing themselves in technical intricacies, and cultivating an intuition that resonates with the market's pulse. It's a journey that unfolds beyond the confines of charts, encompassing discipline, resilience, and a thirst for understanding.
So, to those who dare to step onto the forex stage, may your analysis be sharp, your convictions unwavering, and your risk management unyielding. In this realm where currencies collide, you have the power to navigate the tides of fortune and shape your financial destiny. Welcome to the vast and intricate world of forex trading, where every moment is a chance to learn, adapt, and thrive."
~ SenseiFx
Trading Divergences
Learn a great way to identify potential market turns and reversals.
Would you believe us if we said there’s a low-risk way to sell near the top and buy near the bottom of a trend? It ain’t voodoo, it’s called divergence trading!
If trading trend reversals are your thing, then you’ll love regular divergences!
Learn to jump into trends by adding the knowledge of hidden divergences to your trading toolbox!
Time to put your newfound knowledge to work! Here are some examples of how to trade divergences!
How to Avoid Entering Too Early When Trading Divergences
You’ll find that trading divergences is actually quite easy once you’ve mastered the tricks of the trade.
9 Rules for Trading Divergences
We listed down the 9 rules for trading divergences just for you. Learn ’em, memorize ’em, live ’em!
It ain’t really cheating, it’s giving yourself an edge! Check out this divergence cheat sheet when you need questions answered on the fly.
Divergences are NOT a Trade Signal
Divergences are awesome confirmation tools, but it wouldn’t be smart to rely solely on them.
Market Environment
Is the market ranging or is it trending? One of the major considerations before you plan you trade.
Trending markets are just like waves. They can move long distances and can take you for a nice, profitable ride!
Trending markets are just like waves. They can move long distances and can take you for a nice, profitable ride!
Sometimes, price bounces between two specific levels for long periods of time. In times like these, we have what we call a “ranging market.”
Trend Retracement or Reversal?
Knowing the difference between the two can spell the difference between a big win and a big loss.
How to Identify Reversals and Retracements
When looking for reversals, you’d best stay on your toes. They can happen anytime!
Protect Yo Self From Reversals
Protect yo self from reversals by using trailing stops and learning to recognize when a trend is losing strength!
Trading Breakouts and Fakeouts
Trading breakouts and fakeouts are strategies that every trader should have in his trading toolbox!
Breakouts in trading can be just as bad as breakouts on your face if you don’t know what to do with them. But treat them right and they could land you massive profits!
As you’ll come to learn, the world of forex is full of tools to help us find breakout trade opportunities.
It’s important to know the difference between continuation and reversal breakouts so you don’t end up on the wrong side of the
trade!
How to Trade Breakouts Using Trend Lines, Channels and Triangles
Unlike breakouts on your face, you don’t need a mirror to spot breakout trading opportunities. It’s a piece of cake, really!
How to Measure the Strength of a Breakout
Measuring the strength of breakouts? We’ve got tools for that too!
A fakeout is exactly what its name implies – a fake breakout!
Sometimes, you can make mad money by trading in the opposite direction of the breakout. Some call it being crazy, but we call it fading the breakout!
The pros know how to do it… You can learn, too!
Summary: Trading Breakouts and Fakeouts
Time to wrap up everything you’ve learned about breakouts and fakeouts!
Fundamental Analysis
We already touched upon fundamental analysis in Kindergarten. Now it's time to dig a little deeper!
If you like analyzing social, economic, and political factors that affect supply and demand, fundamental analysis is for you!
Why Interest Rates Matter to Forex Traders
Interest rates changes are one of the biggest fundamental catalyts out there. Heck, you could even say that they make the forex world go ’round!
How Monetary Policy Affects the Forex Market
Your mama may have brought you up to believe that honesty is the best policy, but in forex trading, monetary policy rules!
Hawkish vs Dovish: Differences Between Monetary Policies
Central banks are like puppeteers. They have full control over monetary policies and their words can move markets in an instant.
Fundamental Factors That Affect Currency Values
As with personal relationships, it’s important to consider long-term factors in trading. They may hold the key to your happiness!
Where to Find Forex News and Market Data
In forex trading, you’ve got to keep up to date with the latest news and market data to stay alive. Be in the know by checking out these market info tools!
Market Expectations of News and Their Impact on Currencies
A super duper important report just came out… Now what?!
Currency Crosses
Even though the Dollar is the current king, you don't have to trade it if you don't want to. You can trade non-dollar pairs called currency cross pairs!
What is a Currency Cross Pair?
You can do pretty much anything you want in the world of forex. You don’t even have to trade the dollar if you don’t want to. You can trade non-dollar pairs called currency cross pairs!
More options means more opportunities to bag them pips!
You may be surprised to find that currency crosses offer smoother rides than dollar pairs.
Trade Interest Rate Differentials
One of the coolest things about trading currency crosses is you can make a huge profit from interest rate differentials.
Be Careful Trading Obscure Currency Crosses
You can mix and match just about any two currencies. Just take a look at these obscure crosses!
How to Trade Fundamentals With Currency Crosses
You can even design currency pairs to maximize profits in light of a change in news and fundamentals.
How to Trade a Synthetic Currency Pair and Why You Probably Shouldn’t
Did you know that you can create certain currency crosses by trading dollar pairs? Introducing, synthetic pairs!
Trading the Euro and Yen Crosses
The euro and the yen are two of the most popular choices for currency crosses.
How to Use Currency Crosses to Trade the Majors
Crosses can also help you make better trading decisions when it comes to trading dollar pairs.
How Cross Currency Pairs Affect Dollar Pairs
Dollar pairs can affect price action on cross currency pairs. But can crosses also affect price action on dollar pairs?
Before we move on, let’s make sure we’ve covered all the bases with cross currency pairs!
Multiple Time Frame Analysis
Multiple time frame analysis can be confusing for newbies. But we here at SenseiFx dojo aren't about to let you graduate without knowing how to use it to your advantage!
How to Trade Using Multiple Time Frame Analysis
Multiple time frame analysis is exactly what its name implies: the process of looking at the same currency pair on different time frames.
What Time Frame Should I Trade?
The weekly, the daily, or the hourly? So many time frames to choose from! Which one should you trade?
What Time Frame Is Best for Trading?
Here’s a short guide to help you weigh the advantages and disadvantages of each time frame!
Why You Should Look at Multiple Time Frames When Trading Forex
Sometimes, performing multiple time frame analysis is all you need to do to figure out whether you should buy, sell, or do nothing.
How to Use Multiple Time Frame Analysis to Find Better Entry and Exit Points
Time for a mashup! Let us show you how to go through different time frames to make smart trading decisions!
Trading With Three Time Frames
We here at Blackbeltfx.ca recommend using three time frames when conducting your analysis.
Summary: Multiple Time Frame Analysis
As long as you can remember these key reminders, you can add multiple time frame analysis to your trading tool box!
Forex Dojo Phase 7
"Within the intricate tapestry of the global financial ecosystem, the foreign exchange market stands as a nexus of unparalleled dynamism and opportunity. Here, the threads of economies, geopolitics, and human psychology intertwine, weaving a complex narrative that unfolds across charts and spreads. As candlesticks rise and fall, they illuminate the path for astute traders who dare to decipher the language of price action.
Amidst the ebb and flow of currency pairs, a symphony of data points and news events compose a melody that resonates across continents. Central banks conduct their monetary overtures, political decisions reverberate like seismic waves, and economic indicators punctuate the rhythm of trading days. It is a realm where fortunes are not merely traded, but molded through the crucible of analysis, strategy, and a touch of artistry.
In this realm, volatility is both adversary and ally, where risk and reward engage in a timeless dance. Traders, poised at their terminals, become modern-day alchemists, transforming insights into profit, and hours of diligence into tangible gains. The tapestry of forex is vast, encompassing a spectrum of participants from institutional giants to individual dreamers.
And so, as the sun never sets on the forex market, the pursuit of knowledge is a ceaseless journey. Aspiring traders embark as novices, absorbing the wisdom of mentors, immersing themselves in technical intricacies, and cultivating an intuition that resonates with the market's pulse. It's a journey that unfolds beyond the confines of charts, encompassing discipline, resilience, and a thirst for understanding.
So, to those who dare to step onto the forex stage, may your analysis be sharp, your convictions unwavering, and your risk management unyielding. In this realm where currencies collide, you have the power to navigate the tides of fortune and shape your financial destiny. Welcome to the vast and intricate world of forex trading, where every moment is a chance to learn, adapt, and thrive."
~ SenseiFx
Market Sentiment
The market has feelings too, you know. Get ready to learn all about market sentiment!
Every trader has his own opinion about the market. The combined feeling that market participants have, that’s what you call market sentiment, young Padawan.
Gauging market sentiment may not be as difficult as you think. The Commitment of Traders (COT) report can be a clue on whether the market is bearish or bullish.
Now let’s get to the juicy part. How do you get a hold of the COT report? It’s as easy as 1-2-3, baby!
Meet the different playas in the futures trading field: hedgers, large speculators, and small speculators!
How to Use the COT Report for Trading
The COT report looks like a giant gobbled-up block of text. But don’t fret! There’s actually a pretty simple way to use it.
How to Pick Tops and Bottoms With the COT Report
When the market sentiment shifts, should you go with the speculators or the hedgers?
How to Create Your Own COT Trading Indicator
Studying Sensei knowledge is about to get sweeter! Are you ready to create your very own COT indicator?
How to Interpret the COT Report
Put your thinking caps on because we’re gonna get down and dirty with the numbers to calculate for the percentage of speculative positions!
Keep in mind that although the COT report is a spankin’ sweet tool to use in gauging market sentiment, it does not always correlate to reversals.
Trading the News
Extra! Extra! Reading up on the news reports may just reel you in a handful of pips!
News Makes the Forex Market Move
Like how things are in the world of Star Wars, there is always fundamental force behind each movement in the market.
Beginner’s Guide to Forex News Trading
Trading the news is a double-edged sword. Sure, you can earn a lot of money by doing it but you also stand to lose a lot in times of increased volatility!
How to Trade Forex on News Releases
The most-watched news reports are from the U.S. Can you guess why?
“Buy the rumor, sell the news.” What the heck does that exactly mean?
How to Trade the News With a Directional Bias
Let’s take a look at an example on deciding whether to go long or short before a report is released.
How to Trade the News Using the Straddle Trade Strategy
Okay, you already know which market-moving report to trade. What do you do next if you want to let the market decide which side to take?
You could get burned a couple of times by trading the news so practice, practice, practice! It will be very rewarding once you get the hand of it.
Carry Trade
Did you know that you can actually still make money in forex without doing anything? Yep! You just have to keep your fingers crossed that price stays the same for a long period of time.
Carry trades involve buying higher-yielding currencies and selling lower-yielding ones.
What is a Currency Carry Trade?
Seems too good to be true? Oh, but carry trades are true! Check out how they work in real life in the forex market!
Know When Carry Trades Work and When They Don’t
Carry trades work well when risk aversion is low. Why?
There are only two things to consider when you pick a pair to do a carry trade, but that simplicity doesn’t make it any less easy.
Simply put, carry trades can work by making moolah out of the interest rate differentials of two currencies.
Forex Dojo Phase 8
"Standing at this milestone in your forex journey, it's clear that your dedication and hard work have led you to a pivotal juncture. Just as a skilled captain navigates a ship through changing tides, you've steered your way through the intricacies of the forex market, and now, the journey is about to become even more captivating.
The chapters that unfold from hereon will be filled with twists, turns, and moments that test your mettle. Just as a protagonist in a gripping tale faces challenges that shape their character, you're on the brink of encountering scenarios that will further refine your trading skills and deepen your understanding of the market's nuances.
Consider this part of your journey as the unveiling of a treasure map, where each pip and every chart pattern are clues leading you to the ultimate prize of success. The excitement lies not just in the destination, but in the path you carve to reach it. The forex market is known for its unpredictability, but with your growing expertise, you're prepared to decode its secrets and make calculated moves that could yield remarkable outcomes.
As you step into this captivating phase, remember that you've already proven your ability to adapt, learn, and persevere. The future holds exciting possibilities and valuable lessons. Embrace the challenges with open arms, for they are the stepping stones to becoming a master of the forex landscape. Here's to the enthralling journey that lies ahead!"
~ SenseiFx
The U.S. Dollar Index
If U.S. stocks have an index, so does the U.S. dollar! Read up on the dollar index and learn how you can use it in your trading!
The Global Role of the U.S. Dollar
Learn the key aspects of the dollar’s global role and explore the factors that contribute to its enduring appeal.
What is the US Dollar Index (USDX)?
The dollar index is made up of six foreign currencies and includes 24 countries.
How to Read the US Dollar Index
Be as awesome as Queen Cleopiptra and learn how to read the U.S. dollar index!
How to Use the USDX for Forex Trading
Whenever you feel doubtful of the market outlook for the U.S. dollar, look no further than the U.S. dollar index because it will provide a clearer picture!
The Fed wanted to measure the dollar’s value more accurately so they came up with the Trade-weighted dollar index. How is it different from the U.S. dollar index?
The Bloomberg Dollar Spot Index (BBDXY) tracks the performance of a basket of 10 global currencies against the U.S. dollar.
Have you ever wondered why the dollar rallies in the good times and in the bad? Smile! You’re about to find out why.
Intermarket Correlations
Just because you're a piptastic forex trader, that doesn't mean you should only keep tabs on the currency market. Learn how the commodities, bonds, and equities markets affect forex!
How Gold Affects AUD/USD and USD/CHF
Some currencies share a positive relationship with gold; the dollar usually doesn’t. Why is this?
Get the lowdown on why investors “Go Loonie” when oil prices shoot up!
The U.S. Dollar And Oil Relationship Is Changing
The U.S. dollar has historically been inversely correlated to movements in the oil price, but this relationship is now changing.
How Bond Yields Affect Currency Movements
What do you call “IOU” statements that countries issue when they need to borrow money? They’re bonds… government bonds.
How Bond Spreads Between Two Countries Affect Their Exchange Rate
Did you know that you can also pull off carry trades on bonds?
How Fixed Income Securities Affect Currency Movements
What are Euribors and gilts? (Clue: They are not fancy medieval weapons.)
Using Equities to Trade FX
Equities are like crystal balls - they can help you predict the future of currencies.
Forex and Global Equity Markets
Learn all about the Dow, S&P500, NASDAQ, and other major global equity indices!
The Relationship Between Stocks and Forex
Does the equity market lead the currency market or is it the other way around?
How the Stock Market Affects the Forex Market
Just like many people on your friends list, the relationship status of USD/JPY to the Dow and Nikkei can be complicated. But only a little bit.
How to Use EUR/JPY as a Leading Indicator for Stocks
EUR/JPY tends to rise when confidence in the global economy is up and falls when confidence is down. Don’t believe us?
Check out these spankin’ charts!
Intermarket Analysis Cheat Sheet
Everything you need to know about intermarket correlations in this neat cheat sheet!
Country Profiles
Get ready to go around the world… (hopefully) in less than 80 days! Learn about the economies of the 8 major currencies!
The Forex Trader’s Guide to Major Economies
More important than the geeky facts and figures, you’ll learn about trading tactics–along with a few bits of cool trivia that you can use on awkward dates.
Ever wonder why the dollar is called the “buck?” Wonder no more!
Quick! Can you name the countries that make up the Euroland? Clue: There are seventeen of them.
The U.K. has the bragging right in having the oldest central bank in the world. Word.
Japan made it up the list of the most advanced economies because of its massive exports. Can you imagine a world without karaoke, the Gameboy, or the Prius? That’s right, we didn’t think so.
Unlike other central banks, the Bank of Canada doesn’t have a set schedule to make changes on its policies. Canadian central bankers can alter monetary policy whenever they want. Like a boss!
If you’re scratching your head for a good currency to use on a carry trade, look no further than the Aussie!
New Zealand’s economy may be small, but it’s a big playa in international trade! Get to know more about the pocket rocket of the bunch!
Swiss watches are popular for a reason. Trivia question: Did you know that watches contribute a huge chunk to Switzerland’s GDP?
From sports, to space travel, to economic might, China is slowly crawling its way up the leader boards!
Forex Dojo Phase 9
"Congratulations on your progress in the forex realm! Your commitment and resilience have carried you to this significant juncture, where the plot thickens and the adventure intensifies. Like a skilled artisan shaping clay into a masterpiece, you've molded your trading skills, and now, you're poised to sculpt even more remarkable outcomes.
Think of this phase as a captivating chapter in a grand saga. Just as a protagonist faces trials that forge their destiny, you're about to engage with market fluctuations that will shape your trading narrative. The currency pairs become your characters, each with their own story to tell, waiting for you to decipher their motives and unravel their potential.
With every candlestick's dance and every news release's proclamation, you're authoring a narrative that's uniquely yours. The thrill lies not only in the profits but in the insights you'll gather and the strategies you'll develop. This is your time to showcase your expertise, like a master painter revealing layers of brilliance with each brushstroke.
So brace yourself for the unfolding drama, for this is the phase where your trading acumen truly shines. Just as a skilled conductor harmonizes an orchestra, you'll orchestrate your trades with finesse, crafting a symphony of success. As you embark on this riveting chapter, remember that every challenge is an opportunity, every setback a stepping stone. Here's to the enthralling voyage ahead, where the plot thickens and your forex story becomes ever more captivating!"
~ SenseiFx
Developing Your Own Trading Plan
All the great conquerors we know of never went to war without a plan; neither should a great trader.
In creating a trading plan, make sure it answers four questions: What? Why? When? How?
Why Do Forex Traders Need A Trading Plan?
Simple. Failing to plan is planning to fail. Remember, 90% of new traders don’t survive their first year of trading.
Why Trading Discipline is the Key to Consistent Profitability
Contrary to popular belief, the end doesn’t justify the means. Let us explain why profiting despite deviating from your trading plan is still a loss.
How To Find A Trading Style That Suits Your Personality
Yeah, it may sound like a question on a Facebook quiz, but knowing yourself is critical in finding the right system.
What is Your Motivation to Be a Forex Trader?
Good goals should be specific and realistic. Why?
What Is Your Risk Capital? How Much Money Can You Afford To Lose?
How much money can you trade with? Can you afford to lose all of it? You don’t want to risk what you can’t afford to lose!
How Much Time Can You Dedicate To Forex Trading?
Your time availability will determine your trading style. How much time per day can you dedicate to trading?
Which Kind Of Returns Do You Expect To Make From Forex Trading?
Figuring out what kind of returns you expect to make plays a role in determining what type of trading strategy you should implement.
What Is Your Daily Pre-Trading Routine?
Your pre-market routine is critical to your success as a trader. Think of it as a warm up before you start going after those pips!
What Forex Trading Software, Hardware, And Other Tools Will You Use?
What software, hardware, and other tools will you use for trading? Don’t forget to think of your backups as well.
21 Questions You Should Answer In Your Trading Plan
Don’t plan to fail. Here are critical questions that you should have an answer to as part of your trading plan.
Your trading plan should be tailor-fit to your goals, risk tolerance, and lifestyle. Stick to it at all times!
Summary: Developing a Trading Plan
No matter how good your trading plan is, it won’t work if you don’t follow it. Check out the benefits of having a trading plan.
Which Type of Trader Are You?
Scalper, Day Trader, Swing Trader, or Position Trader. What are you?
Know The Different Types Of Trading Styles
No two traders are alike. Our unique personalities will lead us to trade differently from one another.
Scalping requires laser-sharp focus, the ability to thrive in fast environments, and high tolerance for stress. Do you have what it takes?
Do you think day trading is for you? Check out the things to consider before day trading.
If you like holding on to trades for more than a few days, swing trading could be for you.
Position trading requires patience to hold on to trades for months or even years. Is it for you?
Make sure that your trading style matches your unique personality. Here are the characteristics of each type of trader.
Create Your Own Trading System
After learning how to develop your own trading plan and discovering what type of trader you are, it's now time to create your very own trading system!
How To Create A Mechanical Trading System
Mechanical systems generate signals under a certain set of predetermined conditions. The first step is to figure out the goals of your system.
Design Your Trading System in 6 Steps
Need help creating a mechanical system? Here are six easy steps for you to follow.
Build Your Trading System in 3 Steps
Here’s a simple example of how you can build your mechanical system. It’s as easy as pie!
What Time Frame Should You Trade?
What time frame should you trade your system on? The smaller the timeframe, the more difficult it is to develop a successful
system. In other words, developing a system to trade on a 5-minute chart is more difficult than developing a system that trades on a daily chart. There is a lot more noise on …
The “So Easy It’s Ridiculous” Trading System
Check out our simple mechanical trading system in action. Always remember to stick to your rules!
Summary: Creating Your Own Mechanical Trading System
After setting the goals for your system, build it in six simple steps. Oh, and stick to the rules!
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Keeping a Trading Journal
Journaling isn't just for silly, infatuated high school girls. Believe us. The most hardcore traders out there have journals too!
Why You Need A Trading Journal
There has to be a way for you to track, measure, and analyze your performance. A trade journal will do the trick!
5 Reasons To Keep A Forex Trading Journal
A well-kept detailed trading journal is just as good as having a trading coach to mentor you. Here’s why…
5 Things You Must Have In Your Trading Journal
Your trading performance is determined by how well you analyze the markets so make sure you have all these elements in your
trade journal.
Your potential trading area is where you will have a high probability of scoring profits. How exactly can you reach this?
Once price is in the potential trading area, you need to figure out when you will pull the trigger.
How much are you willing to risk per trade? Proper position sizing is crucial in determining whether you’ll live to trade another day.
Figure out what you plan to do for every possible outcome even before you enter the trade. You don’t want to get caught without a game plan.
Here are some questions you can ask yourself as you review how your recent trade went.
Trading Performance Statistics
Make sure you look at these “vital statistics” to find out how you can improve your overall trading performance.
Reviewing Your Trading Journal
Find out what works and keep doing it. Find out what doesn’t work and stop doing it.
Keeping A Trading Journal Is Hard But It’s Worth It
It’s tough to keep a trade journal but your hard work will eventually pay off. In fact, it’s equivalent to an athlete’s practice!
Summary: Keeping a Trade Journal
It takes a lot of discipline to stick to your trading plan and a trade journal can help you do just that! Here’s a reminder of why trade journals work.
Forex Dojo Phase 10
"Congratulations on nearing the culmination of this leg of your forex expedition! Your dedication, perseverance, and unwavering focus have propelled you to the threshold of achievement. Just as a traveler approaches the final steps of a challenging climb, you're about to reach a vantage point that promises a panoramic view of your trading accomplishments.
Think of this stage as the grand finale of a spectacular performance. Like a masterful magician revealing their most astonishing trick, you're preparing to unveil the culmination of your trading prowess. Every chart analyzed, every trend identified, has been leading you to this point—a point where the pieces of the forex puzzle start to come together in a mesmerizing display.
With each pip counted and every trade executed, you're scripting the concluding paragraphs of this chapter. The currency market, like a captivating novel, is about to reveal its closing twists and revelations. And as you near the finish line, remember that every decision you've made, every lesson you've learned, has brought you to this threshold of achievement.
So hold your head high, for you're almost there. The finish line is within sight, and the sense of accomplishment that awaits is the sweet reward for your hard work. As you stride confidently towards this final stretch, remember that your journey doesn't end here; it merely evolves into a new phase of growth and opportunities. Here's to the thrilling conclusion of this chapter and the exciting adventures that lie just beyond!"
~ SenseiFx
Risk Management
Be a trader, not a gambler! Read on to find out the difference between the two.
Risk management is one of the most overlooked areas of trading but it is one of the most crucial for success. Here’s why…
How Much Trading Capital Do You Need For Forex Trading?
Here are a few things you should consider when figuring out how much money you should allot for trading.
Drawdown and Maximum Drawdown Explained
What would happen if you didn’t follow your risk management rules? You can find out the hard way, or you can read this example.
Never Risk More Than 2% Per Trade
Still trying to figure out how much you should risk per trade? Here’s an illustration that could help you with your risk management rules.
Wanna learn a great way to increase your profitability? You can start by improving your reward-to-risk ratio.
Study Your Losses to Realize Gains
Why scrutinizing your losing trades can help you realize more gains.
Make sure that your risk management rules are in place and that you follow them at all times. You don’t want to lose your shirt!
The Number 1 Cause of Death of Forex Traders
Just because brokers allow you to open an account with only 25 USD doesn't mean you should. That is, unless you want to fail.
Ignoring Leverage: Why Most New Forex Traders Fail
What exactly is leverage and how does it work? Make sure you get this concept down pat so you don’t get any surprises!
What is the difference between leverage and margin? You don’t want to confuse those two terms and wreck your account.
Everyone fears the dreaded margin call. What does this mean and what happens after you get it? Read on to find out!
Make sure you fully understand how margin and leverage work in order to avoid getting a margin call. Here’s how you can do that:
See How Leverage Can Quickly Wipe Out Your Account
Check out this concrete example of a trader whose account got blown by the negative effects of leverage.
Low Leverage Allows New Forex Traders To Survive
The more leverage you use, the less breathing room you have for the market to move before you get a margin call. Here’s an
example to illustrate.
How Leverage Affects Transaction Costs
Not only does leverage amplify your losses, it also amplifies your transaction costs as a percentage of your account. Check out this illustration.
Understand when to take advantage of leverage and when it can damage your account. Here are some things to take note of.
Position Sizing
Position sizing is setting the correct amount of units of a currency pair to buy or sell.
Knowing how to properly calculate your position size is crucial in risk management. Here’s what you need to calculate your position size.
Here are some examples on how to calculate your position size whether your account denomination is the same as the base currency or not.
How to Calculate Your Position Size in Different Forex Pairs and Account Currencies
In this lesson, you will learn how to calculate your position size when your account denomination isn’t one of the currencies in the pair currency pair that you wanna trade.
No time to crunch the numbers yourself? Check out our position size calculator tool that can help you manage your risk well.
Setting Stop Losses
Stop losses not only help you limit your losses and help you move on, they also eliminate the anxiety caused by losing on an unplanned trade.
Thinking where to place stop losses is one of the most important things that you should do before even entering a trade. “Live to trade another day,” is something you should always remember in trading.
How To Set A Stop Loss Based On A Percentage Of Your Account
Never ever set stops based solely on the amount you’re willing to lose. Setting stops based on your account balance is a sure fire way to lose!
How To Set A Stop Loss Based On Support And Resistance From Charts
One of the best ways to set stops is based on charts. Find the places where prices can’t seem to push or break and then decide where to place your stop.
How To Set A Stop Loss Based On Price Volatility
Did you know that you can set stops based on the volatility of a certain pair? Knowing how much a currency pair tends to move can help avoid being prematurely taken out of a trade by the random movements of price.
How To Set A Stop Loss Based On A Time Limit
Time is of the essence, even when trading forex. Set up a time limit to cut off those dead-weight trades so your free to move on to new opportunities.
4 Big Mistakes Traders Make When Setting Stops
There are a lot of mistakes traders make when setting stops. Here’s a list of the most common ones.
3 Rules To Follow When Using Stop Loss Orders
Often times, the market doesn’t move in accordance with your expectations. You have to know the times that you should stick to your pre-determined limit orders or make stop adjustments on-the-fly.
Like anything else in trading, setting stop losses is a skill. If you continually practice the correct way to set stops, you’ll be one step closer to becoming a professional risk manager!
Scaling In and Out
Don't worry! We won't tell you to weigh yourselves before and after your trades. Instead, this section will teach you how to get creative when making pips!
Scaling In And Out Of Positions
Scaling is one of the most important strategies in risk management that you need to learn to be consistently profitable. It can help you adjust your overall risk, lock in profits, and maximize your profit
potential.
“I’m winning. Should I keep my trade open or should I close it?” The answer doesn’t need to be just one of those… Sometimes, you can actually choose to do both!
Adding to a losing position is considered as a no-no by many traders, but it’s possible to do safely. Learn how.
How To Add To Winning Positions
While it may lead to a higher level of risk sometimes, if done correctly, adding to an open winning position gives you the ability to increase your maximum profit.
Summary: Scaling In and Out Trades
Knowing the correct way of scaling in and out of trades is essential. Manage your trade properly and sooner or later, you will catch that one move that will bank you some serious money!
Currency Correlations
Have you ever noticed that when a certain currency pair rises, another currency pair falls? Somehow, they're all connected.
Currency Correlation Explained
Simply put, currency correlation tells us whether two currency pairs move in the same, opposite, or totally random directions.
How To Read Currency Correlation Tables
Take a look at the strength (or weakness) of correlations between the most popular currency pairs over various time frames!
Are You Doubling Your Risk Without Knowing It?
When you are simultaneously trading multiple currency pairs in your trading account, you should always make sure that you’re aware of your total risk exposure.
5 Reasons Why Factoring In Currency Correlations Help You Trade Better
You’re probably wondering how using currency correlations can improve your trading. Well, wonder no more because we know the answer!
Be Careful! Currency Correlations Change!
Although correlations between currency pairs are strong (or weak) for days, weeks, months, or even years, they may eventually change–sometimes when you least expect it!
Keep going man you're almost done
Trust the journey.
Summary: Currency Correlations
Like synchronized swimmers, some currency pairs move in tandem with each other. And like magnets of the same poles, other currency pairs move in opposite directions.
Forex Dojo Phase Final (Black Belt Grade)
Offering my heartfelt congratulations on your remarkable journey towards completing Sensei FX's theory dojo. Your dedication and hard work have brought you so close to the finish line, showcasing your unwavering commitment to mastering the intricacies of FX theory. May the final steps of this journey be as rewarding as the path you've traversed so far. Here's to your impressive accomplishment and the knowledge you've gained along the way. Best wishes for your imminent triumph!
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A big congratulations on your remarkable progress in mastering Sensei FX's theory dojo! Your dedication to honing your skills and delving deep into the world of FX theory is truly inspiring. As you approach the final stages of this journey, remember that it's not just about the destination, but also about the growth and learning that have taken place along the way. Your commitment and hard work are a testament to your passion for excellence. Keep up the fantastic work, and may your continued efforts bring you even greater insights and achievements in the world of FX theory and beyond. BIG MAN TINNGG EHH
~ SenseiFx
The Most Common Trading Mistakes New Traders Make
Making mistakes is part of the learning process when it comes to trading. Here are the most common mistakes that beginner traders make.
The 5 Deadly O’s of Trading: What Traders Do To Guarantee Their Own Failure
The 5 O’s of trading are fatal for traders. Your success depends on avoiding these mistakes. Learn what they are before it’s too late and you end up blowing your account!
How to Lose All the Money in Your Trading Account in 10 Days (or Less)
Do you want to learn how to make all the money you just deposited in your trading account quickly vanish?
Tips for Forex Trading Beginners
Here are some trading tips every forex trader should keep in mind before trading currencies.
What separates good traders from bad traders?
Forex Trading Scams
As awesome as the world of trading is, we can't deny the fact that there are a lot of trading scams out there, so read through this section carefully!
Would you entrust your hard-earned money to a complete stranger? If you answered “yes,” then account managers are for you!
The forex market can be very exciting and a way to build wealth, which unfortunately means it attracts the less desirable sort who will try to take advantage of others. Don’t be a sucka…learn their tricks here!
In the forex world, a “robot” or an “expert adivsor” is a program that strictly uses technical signals to enter in trades
automatically. Sometimes the robots work, but usually they don’t!
Ever thought about subscribing to a forex trading signal service? Before you do, make sure you really know what it is all about!
Did you know that certain brokers are actually scammers? Believe it or not, there are some brokers who “cheat” their clients.
If you’re in the US, you’re not alone to fight the battle against forex scams. Read more to see who has your back!
Don’t worry if your broker is not U.S. based. Other countries also have their own regulatory agencies!
How To Protect Yourself From Forex Scams
Scams are real. Let’s close out this section with the six most frequently asked questions about them!
Personality Quizzes
Get to know yourself first before doing anything else in your FX journey. Give the quizzes a shot and find out more about the budding trader in you.
Quiz: Which Trading Style Is Best For You?
Each trader is unique, which means each trader needs his own trading style. Are you a scalper, day trader, swing trader, or
position trader?
Quiz: Which Currencies Should You Trade?
Picking which currency pair to trade is just as important as finding your own trading style. You have to find a currency pair that you are most comfortable trading.
Quiz: What Is Your Level of Trading Experience?
Are you a newbie or a pro? Your level of trading experience will determine whether you should trade live or stick to demo for a while.
Quiz: What Is Your Trading Style? Discretionary? Mechanical? Both?
Some traders rely heavily on indicators while others merely look at price action for a trade. Which style do you prefer?
Quiz: What Kind Of Mechanical System Suits Your Personality?
Should you go with a trend-following mechanical trading system or a reversal-spotting one? Find out what kind suits your
personality better by taking this quiz!
Quiz: What Is Your Attitude Towards Risk?
While taking risks is inherent in trading, each trader has his own risk comfort level. Some are completely fine with betting half their balance, while others prefer extremely safe trades.
Quiz: What Kind Of Stop Suits Your Trading Style?
There are four main kinds of stops. Based on your personality and methods, which one should you use?
Graduation Speech
"You're finally done with the School of Pipsology. But the truth is, you've barely scratched the surface. There are a lot more things to learn!"
They say all good things come to an end. Now that you’re about to enter the real forex trading world, you have be ready to dive in and wrestle with the biggest sharks.
Time Is Your Most Important Investment As A Trader
Time is the best investment you can make as a trader. Every single day should be taken as a learning opportunity.
Forex trading is a zero-sum game which is why trading like a forex dealer works to your advantage.
Why you shouldn’t always jump in when you see the forex market making sudden moves.
Focus on the Process. Not on the Profits.
In the beginning, the process of learning forex trading properly and consistent deliberate practice should be your main focus,
NOT the profits.
There's no 100% success rate indicator
Nobody can perfectly predict the market every single time. So, sorry to burst your bubble of 100% success trading systems because it doesn’t exist.
As a new trader, your main goal should be to make good trading decisions and SURVIVING!
Love The Forex Game
Like any other profession or craft, to be truly successful, you must love what you do.