The FX Bootcamp Guide to Strategic and Tactical Forex Trading

SECOND CHANCES IN FOREX

The wonderful thing about forex is that there is always another trade. You don’t have to catch all of them, and you don’t need to capture every pip in each of them. You should focus on catching the bulk of the logical trades, what I call “repeatable” trades. Since these kinds of trades occur over and over, they can be planned for in advance. Soon you will become a confident trader, as you will recognize the trade setups and how to trade them. This is an inevitable result of planning your trades.

Technical analysis of charts is a form of fractal geometry or pattern recognition. In the beginning, you will find that some patterns are easier to find than others.

For example, most new traders can see head and shoulders patterns without too much trouble, but many cannot see upside down head and shoulders reversal patterns for downtrending markets. You would think they would be just as easy to spot, but inevitably they are not. However, over time, they will get easier to see, easier to plan for and eventually, easier to trade.

With this in mind, as you gain experience strategically and tactically planning your trades in advance, you will find that your successful plans are very similar to each other. Naturally, you are better at seeing some patterns than others and therefore your anticipation of the results of these patterns proves successful in your planning. As you gain experience, you will slowly add other patterns to your trading repertoire.

If you ...