Joey P here- consummate forex afficionado.
Need to know more of forex? I’ve personally generated $2000 a day when I was active at the game. My methods are published on the world’s largest Forex Group ForexFactory.com. Feel free to peruse them. Otherwise, find on this page a collection of curated forex material that helped me acquire full mastery over this volatile earning game. Oh and kudos to the forex masters Russell Parayno, Dianne Shayne, Melissa Jenkins, Aubrey Roberts and Mike Tilts for inspiring me to compile this compendium.
My Favorite Forex Tools
I use only Metatrader 4 (both the desktop and mobile app version.)
My setup includes a copy of Megatrend FX which I reviewed on my other wealth blog here as well as a copy of the Accustrength Currency Meter, also reviewed on my sister site. With these two, you need no other and will have a trading accuracy of 99%. Set up both tools with metatrader and apply the succeeding tactics. You’ll be on the road to making thousands of dollars in no time.
Following is a screen cap of the Forex MegatrendFX.
My usage rule is simple.
- For a long position, trade when the green indicator arrow is above 52% and the Exponential Moving Averge (EMA) reflects the same call to action.
- Want to go short? Then wait till the red indicator arrow is above 52% and the EMA slants downward. Click here to download MegatrendFX
The MegatrendFX makes trading extremely easy as it integrates 146 indicators into one master dashboard. Rather than studying a screen full of overlapping charts and tickers, you simply confirm your entry position with a quick glance. The magic rule is a blue arrow at 52% and filled blue bars for a Long Position. A red arrow at 52% with filled red bars indicates a short position.
Hint From the Developer:
The Nitro Mode
There is a total Global Percentage % range of 200. There is a total TITAN III range of 100
From a technical perspective, 50% is the default action level alerting us of possible current inertia opportunities. This 50% ‘possible opportunity’ level coincides with the meter lighting up into NITRO Mode. The 50% opportunity level is not as reliable on charts less than H4 during sessions other than London or New York.
NITRO Mode is alerting current inertia-based opportunities
NITRO Mode LIME or NITRO Mode BLUE for actionable Long Trend
NITRO Mode RED or NITRO Mode BLACKfor actionable Short Trend
50% Global Percentage = 75% of all parameters indicating the same trend bias
75 TITAN III = 75% of T3 parameters indicating the same trend bias
75% of variables all indicating the same trend bias has proven over time through the history of Technical Analysis to be an accepted, reliable level of trend continuity confirmation.
On smaller time frames for Intraday Traders, 50% – 60% Global Percentage is generally the level for possible current inertia opportunities. Percentages above 90% sometimes tend to indicate a possible momentary overbought or oversold area that sometimes may indicate an area to begin considering taking some profit.
In other words from a technical perspective for Intraday Traders, an actionable window of opportunity might sometimes be from 50% thru 100% beginning with London open. The new matriXx overbought oversold feature now helps to assist in this high range when we are considering and pondering taking some profit.
All bets are off for Intraday Traders once the New York Stock Market closes. As mentioned above for 5NITRO+ loaded on 30M charts or less, the following lower volume sessions before London opens again will now render any technical information used by 5NITRO+ drastically less useful and reliable, except for hard S&R levels.
So technically while it is being ignored during theses other sessions, 5N+ is normalizing its internal momentum indications to be ready a
My Personal Trading Bias
For good measure,I like having four dashboards identifying the trend bias of 4 timeframes (M5, M15,M30,H1). If all have 52% Blue or 52% Red, this indicates a strong trend direction. The photo below indicates a confused sideways market I avoid. The Megatrend Tool makes monitoring such data in glance so easy.
If there’s only one tool I recommend for Forex Trading- its the Megatrend. Download it Now.
Wake Up! Here’s The Revenue and Savings That Forex Trading Will Give You
Most people think the stock market is the best place to invest. Far from it. It takes months or years to achieve usable gains from stock trading- unless you’re a huge stock investor. On my first month of forex,I transformed a $400 capital to $3000. A good friend of mine, Russell P transformed $50 into $200 on the same day.
The secret of forex is that you make money regardless of whether the currency pair appreciates or depreciates. You hold long or go short depending on the trend. The profits follow in real time.
Before You Begin: Use the Stop Loss Always
I’ve seen friends lose $10,000 overnight because they forgot the Stop Loss function of Metatrader. This is simply a preset order limiting the possible losses in case of negative market movements. Stop loss is deployed with open market positions. As market conditions not favorable for a trader develop, and the price has reached the level of the “Stop loss”, the deal is closed automatically.
Therefore, Stop loss aids the trader to manage losses and in case of failures to keep safe at least part of his deposit. The stop loss is vital especially when you trade more than two full lots.
If a trader does not use Stop loss orders, the position is closed by the broker when the sum of losses is equal to the sum of the deposit. In sum- you lose everything.
Understand that there are 3 categories of Stop loss functions: fixed Stop loss, sliding Stop loss and combined Stop loss. Fixed Stop losses are set before opening market positions. They cannot be modified till the deal is closed. Sliding stop losses, on the other hand, can be modified any time depending on the price movement. Another name for sliding Stop loss is Trailing stop, that can be modified either manually or automatically based on the traders’ settings.
The Best Forex Brokers – My Recommendation
Playing the forex game is awesome when you have the right technical and fundamental tools to jump in and out trade. But remember- a forex house controls a lot of your profit. Choose a broker with a tendency for slippage or wide spreads and chances are you will lose none-stop. To date, I have tried several brokers and settled upon a set of five reputable establishments. You can’t go wrong with the list I curated. Choose from these good guys.
Forex News Trading
Technical and Fundamental Traders spend a lot of time watching pip movements. For lazy people like myself, I merely logon to Forex Factory and await big news days. A big news day for me is one marked by a red flag such as seen on the following image. What I’d do is set two positions 5 minutes prior to the news release- a buy stop and a sell stop to take advantage of massive 100 to 200 pip movements. When the news release is triggered, the priceline shoots in one direction earning you massive revenues.
But Wait- Whats All This Buy Stop Buy Limit Etc
Difference of Buy Stop and Buy Limit
If you place a buy pending order above the market price, that order is known as “Buy Stop”. For example, EUR/USD current price is 1.0495 and you want to buy EUR/USD if the price goes higher and reaches 1.0515. Therefore, you have to set a buy stop order at 1.0515.
If you place a buy pending order below the market price, that order is known as “Buy Limit”. For example, EUR/USD current price is 1.0495 and you want to buy EUR/USD if the price goes lower and reaches 1.0480. Therefore, you have to set a buy limit order at 1.0480.
Difference of Sell Stop and Sell Limit
If you place a sell pending order above the market price, that order is known as “Sell Limit”. For example, EUR/USD current price is 1.0495 and you want to sell EUR/USD if the price goes higher and reaches 1.0515. Therefore, you have to set a sell limit order at 1.0515.
If you place a sell pending order below the market price, that order is known as “Sell Stop”. For example, EUR/USD current price is 1.0495 and you want to sell EUR/USD if the price goes lower and reaches 1.0480. Therefore, you have to set a sell stop order at 1.0480.
Forex Strategy Guides: Your Path to Proficiency
Ready to hit the ground running? The succeeding Forex strategy e-books provide quick insights in illustrated format on key trading strategies as well as the use of particular Forex trading instruments. Basic knowledge of Forex trading is required to correctly understand and use these strategies.
Almost all Forex e-books are in .pdf format. You’ll need Adobe Acrobat Reader to open these e-books.
Facing issues with the guides and you are using Google Chrome? Simply right-clicking a book download link and choose ‘Save link as…’
Several of these guides have been developed by myself, my associates and independent traders I look up to. It’s your time to assimilate- and shine!
The Yellow Dummies Guide – Yes- I admit to learning the first steps in forex with this yellow book everyone knows. Understand the basics before the advanced tactics I developed.
1-2-3 System — a no-brainer pattern trading system by Mr. Crisp. Keeps your screen free of clutter.
Bollinger Bandit Trading Strategy — a trading system based on Bollinger bands indicator by Jenkins
Value Area — renowned on the ForexFactory. Find the Magic Window where trades will be profitable.
Fibonacci Autotrader Platform – Developed by a Fortune 1000 company, a free platform that autotrades your funds- generate about $200 an hour
The Dynamic Breakout II — by Robert, a friend. Identifies key points when a currency flow pattern will reverse.
Ghost Trader Trading Strategy — by Jake, a friend. Uses very few indicators- but solid 80% of thetime.
But wait- is all this information overload? Check out an autotrading platform that makes things so easy- It worked for me:
King Keltner Trading Strategy — byCassandra, a friend
Scalp Trading Methods — by Kevin Ho.
LSS – An Introduction to the 3-Day Cycle Method — by George Angell.
Market Turns And Continuation Moves With The Tick Index — by Tim Ord.
The Money Manager Trading Strategy — by Melissa, a friend
Picking Tops And Bottoms With The Tick Index — by Tim Ord.
The Super Combo Day Trading Strategy — by unknown author.
The Eleven Elliott Wave Patterns — by unknown author.
The Thermostat Trading Strategy — by unknown author.
Intraday trading with the TICK — by Christopher Terry.
Traders Trick Entry — by Traders Educators of Traders University.
Fibonacci Trader Journal — a famous trading technique based on Fibonacci indicators, by Robert Krausz. 12 comprehensive issues.
Rapid Forex — an arsenal of aggressive Forex trading strategies (Rapid Forex) by Robert Borowski and Stephen A. Pierce.
Microtrading the 1 M Chart — I love M1 scalping. Who doesn’t?
BunnyGirl Forex Trading Strategy Rules and FAQ —The WMA crossing can be your ticket to awesome profits.
The Daily Fozzy Method — by Michael Dunbar.
Forex Trader’s Cheat Sheet — solid Forex cheat sheet for position entry times/conditions backed by a decade of research
Offset Trading — a basic Forex news trading range breakout system. I do this all the time.
How to Trade Both Trend and Range Markets by Single Strategy? — by S.A. Ghafari.
A Practical Guide to Technical Indicators; Moving Averages — perhaps the most practical method for absolute beginners.
FX Wizard — Rules you can’t live without
FX Destroyer — Throw in involving moving averages, parabolic SAR and ADX indicators and you demolish the forex market
A Practical Guide to Swing Trading — Developed by who else- Larry Swing
Practical Fibonacci Methods for Forex Trading — practical guide to Fibonacci levels with the real trade examples of the Forex strategy based on these levels, by Ken Marshall and Rob Moubray.
Using The Heikin-Ashi Technique — I use Heikin-Ashi charting with my MegaTrendFX indicator. Never lost a trade
The Day Trade Forex System — an indicator-based strategy including 6 chart tools. Ignore for now- I abandoned this.
5/13/62 — a revised and updated EMA-based Forex trading strategy in language even your seven year old with comprehend.
KobasFX Strategy — a simple MA+MACD Forex trading strategy. Good for those 9am US Open trades.
Killer Patterns — Killer in simplicity- awesome in profits.
3D Trading — a detailed description of a trading strategy that employs Elliott Waves, price & time patters, Gann rules, Williams’ Percentage Range and MACD indicators; You’ll feel you’re in the matrix with this one.
4 Hour MACD Forex Strategy — a set of rules and recommendations for the 4-hour MACD strategy that also uses moving averages and horizontal lines; developed by an ex girlfriend.
WRB Analysis Tutorial — the first three chapters of the WRB Analysis Tutorials by TheStrategyLab.com. It covers the basics of the Wide Range Bars and Hidden Gaps chart formations.
Consolidation Breakout Signals on the Forex Market — an introduction to consolidation patterns breakouts by Duane Shepherd.
The Impact of Economic News on Financial Markets — a study of effect some important US economic news have on currency pairs. Once you understand the basics of News Straddles, you’ll see why I trade almost exclusively on triple flag days such as this:
If you can’t afford the MegaTrendFx or the Currency Meter
All is not lost. Another mainstay I use when to compare trading results is the dolly indicator. The indicator is extremely comprehensive and the backbone of Binary Trading Platforms. When used on Forex, you experience almost 98% win results.
The screenshots below illustrate the Dolly Interface on Metatrader.
If you are to ignore all the data on the left hand control panel, simply look at the bar chart.
If you’re BUYING, Open a long position when the chart crosses the Buy area line. Close and Take profit before the bar chart hits 100%
If you are SELLING, Open a short position when the bar chart dips below the sell area. Close and Take profit before the bar chart exceeds 100%. Note that the levels here correspond to Fibonacci medians.
The Dolly Indicator is so powerful, it sums up virtually all the tactics in the aforementioned forex guides. A full version (free) of Dolly had been integrated into the HFT Web Platform. Try it here.