Hi, Lots of you made incredible pips last week. Some of you are relatively new to forex and yet are reporting gains of 500/600 pips in a week. Well done. The Lmt formula has been incredibly successful for me for the last 10 days +5000 pips on demo and 1950 on a live micro account.
You will not achieve these results all the time. These must surely be exceptional. My aim is to make 15/20 pips a day as a minimum. My results this year have been well above this at 50+ per day, but I have been trading for over 5 years. Please do not get carried away.
Stick to the advanced trading rules that I sent you and follow correct money management. I have emailed my followers a cautionary note for how to trade the LMT forex formula this coming week. Things are likely to be a bit tricky for the next few days, make sure you read it !
How to Plan your trades.
I have had lots of questions asking me how do I decide which trades to take and just as important, those to leave alone. As you will have discovered by now, it is not unheard of to get signals on 6 or more pairs all at the same time on the 4 hour charts.
Plan The trade. Trade The Plan
My method for planning my trades is the same on the daily and 4 hours charts. A point to remember; If you are only able to trade the daily charts there is a possiblity of a 4 hour trade even if there isn’t a daily one. Make sure you check the 4 hour charts as well at the close of the daily.
- 3o minutes before a candle is due to close go to each chart and look to see which pairs have the possibilty of a trade. Ignore those that won’t qualify due to the rules ie If there haven’t been enough red candles followed by a closing green, then no long trade is possible and vice versa for a short trade.
- Have a look at the size of the candles. Is the trend correct etc etc
- Lets say we now have 5 possible trades.
- Now take the possibles and see which pairs correlate (explained in the advanced rules). For example if there is a possible trade on the NZD/$ and AUD/$, these 2 pairs go in the same direction 80%+ of the time so its almost an identical bet. Similarly the chf and the euro/$ go in the opposite direction 80%+.
Don’t take them both at the same time. Decide which one has the chance to make the biggest gain; smallish candles preceeding candles, no major psychological level near eg gbp coming up to 2.00 would be less likely to break. - Now we have narrowed it down to 3 possibles from 5.
- Wait for the candle to close and the signal to arrive. It is very tempting to get in early before the candle closes and make some extra pips. Don’t do it. I never enter a trade just before the close of a 4 hour candle. Often a candle will race in the opposite direction in the last 5 minutes.
- Now we have a signal for 3 pairs. We have already decided which ones we will take (if the signal arrives). Take it. Place your stops and 1st target. Open the other 2 as quickly as possible.
- If by the time you have placed the 1st trade the price has moved more than a few pips on the 2nd and 3rd trades. Leave them alone. What I do is keep watching the 15 minute chart to see if price pulls back to this area. Then get in if it does. You can also place a forward order to get in at this pre determined price.
- Manage the trade by the rules. If the signal says 25 pips profit take 25 from the signal. If you got in 5 pips too late, only take 20.
- Take the rest of the day off. If you have made your minimum 20 pips target and stop is to break even on the 2nd. Chill
For those of you in my LMT support group I have emailed you my analysis for the week ahead. Trade carefully for the next few days whilst some of the pairs decide whether thay are changing direction or just pulling back.
If you would like to know more about the LMT Formula and how to trade it successfully, check out mine and members reviews here;
http://forex-fxtrader.com/blog/?p=389 Those of you who join through links on this site are invited to receive a free copy of my “advanced rules,” trading advice and regular emails and updates. Join Here
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