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Johnathon

Members
  • Content count

    17
  • Joined

  • Last visited

1 Follower

Personal Information

  • First Name
    Johnathon Fox
  • Last Name
    Fox
  • City
    Melbourne, Australia
  • Country
    Australia
  • Gender
    Male
  • Occupation
    Professional trader and coach
  • Biography
    Johnathon Fox is a professional Forex and Futures trader who also acts a tutor and mentor to many aspiring traders world wide. Johnathon teaches a very refreshing Forex Price Action method to he's students and has a real knack for helping traders become consistently profitable.

    Learn more at http://www.ForexSchoolOnline.com
  • Interests
    Forex, Futures

Trading Information

  • Vendor
    Coach
  • Favorite Markets
    Forex, Futures
  • Trading Years
    10
  • Trading Platform
    MT4
  1. Why NO Method Can Ever Be 100%

    Many traders, both new and the experienced, fail to understand one of the most important rules to the Forex market. This rule is – “We can never be 100% sure of what anything will do!” Do a quick search in any forum and you will soon see traders the world over looking for a system that is 100% accurate. They want to know exactly what is going to happen, and they even want to know with certainty what the outcome will be! This may seem like a small problem that doesn’t have the potential to hurt a trader’s balance, but when we dig a little deeper we learn that this thinking can severely cripple a trader’s account. To trade the Forex market successfully, a trader needs to have the best mindset possible. This mindset needs to be flexible enough to let the market move and breathe. When a trader is fixated on being right and not losing they will trade attentively and over manage their trades. A trader needs to instead have the mindset knowing anything can happen and whatever is going to happen they don’t have control over. Every Trader is a Market Factor To fully understand why we can never be 100% sure of what is going to happen in the Forex market we need to look at how the markets work. The price of currency pairs go up and down because of traders either bidding the price higher or lower. Every trader that places a trade has the potential to move the market. Because it is others that make the price go up and down, for traders to place a winning trade they rely on other traders agreeing with what they think and acting in the same manner. For example if I was to go short I would be relying on other traders also going short to make the market go short and make me a winner. Because every trader has the potential to move the market we can also look at each and every trader as an individual factor in the market. At any time there could be thousands of individual traders entering and leaving a certain Forex pair. The only way we could know exactly what is going to happen in the market is if we knew exactly what every single trader was going to do at exactly what time and price! To think of it like this makes looking for a certain outcome in the Forex market pretty silly, but this is what people are expecting every time they look for a system that is 100%. Obviously knowing what every trader is going to do is impossible, so therefore knowing for 100% certainty what will happen next in the Forex market is also impossible! Play the Odds After I explain this the next question I tend to get is “How can I make money if I can’t know what all the other traders are doing?” To make money in the Forex market we need 3 things. These are; A logical method Solid Mindset Good Money Management technique When traders have these 3 important tools in place, they give themselves a huge advantage over other traders. What a trader must then learn is to practice their method and ensure it gives them a profitable edge on the market over large sample sizes of trades. Traders tend to get caught up with individual trades. As we now know we can never know for sure what will happen in each trade and because of this we can only measure the success of our trading method over many trades. If we have a profitable edge in the market we will make money over a large sample of trades. Individual trades may lose but over a period of time the profitable edge will put the odds in a traders favour. Money Management At Forex School Online we always stress the important of correct money management and in particular never risking too much on any one trade or trades. As obvious as this may sound many traders still fail to stick to this very basic rule. The next time they see a great setup they either risk far too much money or they hold onto the trade believing it will turn around. Let me just say again no matter how fantastic an individual trade may seem it can fail! The other times a trader can be caught out is when similar setups form on carry trades that have the same country in the pair. For example Pin Bars may form on both the GBPJPY and AUDJPY because they both have the JPY in them. Traders can often see this as a great sign of where price is looking to go on the JPY. Never fall into this and instead of opening up two full trades and risking two full losses on very similar pairs, either split the risk and only risk half on both trades or pick the best setup. DO NOT over risk on any trade or trades! We never know for sure what will happen! Learn Price Action to Gain and Edge Learning a very logical method such as Price Action trading can give traders an edge on the market that can help them become profitable over time. The bonus Price Action gives a trader is they can read what the market and other traders are looking to do by looking at a clear chart only. No fancy indicators or black box systems are needed once traders have learnt to correctly analyse Price Action. Price is always giving hints as to which direction it’s looking to go and a well-educated Price Action trader can pick up on these hints and profit from them. Safe trading, Johnathon Fox Learn Price Action Trading
  2. The Myth That is Risk Reward

    The Myth of Risk Reward This article today is going to cover one of the biggest myths that Forex traders world over believe in. A lot of traders have many false beliefs when it comes to trading, full stop. However this particular myth hurts traders substantially. The myth we will look at more closely today is Risk Reward. I get numerous emails from traders asking the same question, “Shouldn’t we always aim for 2/1 Risk Reward on each trade” or in other words, should they aim to target a minimum of double their risk per trade they put on. Risk Reward is only half the Equation The problem with traders targeting a random amount such as 2/1 Risk Reward is they are only working out half of the equation. Traders who have a win rate of 25% can be profitable and traders that have a win rate of 85% can be profitable. What will be different for each of these two traders is what Risk Reward they will need to target to be profitable. As traders go for the bigger Risk Reward trades, their win rates, I guarantee will come down substantially, as opposed to the trader that takes profit regularly and should have a much higher win rate. A trader that only wins 25% of their trades is going to need a large Risk Reward each winning trade just to stay in the game. This trader can take many losing trades as long as they have a large Risk Reward trade to make up for their losses. Another trader that averages 85% win rate will need a much smaller Risk Reward per trade as they are not sustaining the same amount of losses as the trader with only a 25% win rate. It does not matter whether you are the trader that has a high win rate or a trader with a low win rate, the goal is being profitable over the journey. For this to be possible the trader needs to work out more than just the random number that they need to target as their Risk Reward for each winning trade. Traders need to work out what trader they are, and the win rate they average. From this number they can then work out what Risk Reward they need minimum per trade to be profitable. This will be different for everybody. I myself like to have a high win rate and bank consistent profits. I personally found that when I began increasing my trade size, I no longer wanted to take large hits to my account and wait for the big Risk Reward trades to cover the losses. Instead I adopted an approach where I bank profits regularly, and because of this, to remain profitable, I need a much smaller Risk Reward per trade as my win rate is high. The Market Does Not Care What You’re Minimum Risk Reward is The main problem with traders entering trades and then setting their targets based on what Risk Reward they want to receive on each trade is, the market does not give two hoots where a traders minimum Risk Reward is. All the market cares about is “supply and demand” and “support and resistance levels”. Traders who set random levels based on Risk Reward will find themselves being stopped out regularly. This is because the market does not care about what Risk Reward you need. If the market hits a supply or demand zone it is going to change direction. Use the Market for Guidance The best way to take profits in the Forex market is to let price be your guide. Price is giving us clues all the time and traders can manage trades according to what the price is telling them. Forex School Online specialises in helping traders learn how to manage trades. The reason Forex School Online concentrates so closely on managing trades is because other educators fail in this area. Even a monkey can open winning trade. I could flip a coin right now and place a winning trade off the toss decision. That does not mean I will be profitable over time. To be profitable over time a trader needs to be able to manage trades consistently and with the same method every time. Without consistency your results will remain all over the place. If you want to find out how you can learn a method for managing trades rather than just setting random Risk Reward targets, the Forex School Online membership is for you. Inside the members area you will be taught a method that you can use for each and every trade using price as guidance. Safe trading, Johnathon Fox Learn Price Action Trading
  3. Price Action - Keep It Simple

    Price Action trading is not rocket science, it’s just a logical way to trade. Everyone that has been reading these articles and watching these videos for a while now will know this whole site is dedicated to helping traders learn to trade Price Action in the Forex markets. Price Action is one of the best tools a trader can have in their trading tool box. Price Action is just looking at what price is doing and what it is telling us. We don’t need to carry a devise when we look a person’s face to see if a person is happy, sad or confused etc. We also don’t need indicators all over our charts to tell us that price is going up, down or sideways. We don’t need indicators or black box systems to show us that price is rejecting a support/resistance line as we can tell by how price behaving if it is respecting a level or not. This article is going to go over some recent setups and exactly how traders could have used the information that was there for all to see in the raw PRICE only. The Aud/Jpy 4 hour chart below shows that price is in a nice down trend. Once again we don’t need moving averages and trend lines to see this. We can tell that from left to right price is falling away. A simple horizontal line at a previous swing high shows us that price pulled back twice to this area and gave us two solid Bearish Engulfing Bars that were both very simple and logical trades. These trades form all the time in the Forex market. Both trades could have given about 2:1 risk reward depending on how you played them. AUDJPY 4HR CHART The next Price Action trade was on the Aud/Chf daily time frame with again another Bearish Engulfing Bar. This pair was in a sustained and very obvious downward spiral. A quick look at the chart tells us that the smart play would be trading in line with the recent down move. A pullback in this down move to a previous support area and the old price action principle of “old support becomes new resistance” comes into play. Again some nice pips to be made on a very logical setup. Price did move against the trader momentarily and this just goes to show that in Forex trading discipline is the key along with the patience to just let the market do its thing. Price eventually moved down allowing the trader to take some profits off the table and move their position to break even. AUDCHF DAILY CHART The last chart I want to highlight is the GBPCAD which has been a gold mine over the previous few months with price respecting levels continually. The daily chart below shows us the psychological round Number 1.6000. Price could not close above this number and gave us a clear story of rejection. The Bearish Engulfing Bar and Bearish Pin Bar on this chart were big clues to Price Action traders that a reversal was about to take place. This chart had no clear trend direction and when trading markets like these trading away from important levels become even more important. Both trades highlighted on this chart gave the trader more than enough chance to take profit and move their positions to free trades. GBPCAD DAILY CHART Price Action trading is the smart and logical way to trade. Just a few simple principles with some patience and discipline and you too will be on the way to being a consistently profitable trader. All these methods and principles have been around for a long time in all forms of trading. Along with sound trading and Money Management plans which are taught at Forex School Online, you can turn your trading around and get on the road to success. Safe trading, Johnathon Fox Price Action Trading
  4. Price Action -The 2 Bar Reversal

    The 2 Bar Reversal is similar to the engulfing bar in that they are both reversal Price Action signals. The main difference between the 2 Bar Reversal and the Engulfing Bar is the 2 Bar Reversal does not have to fully engulf the previous candle or bar where as the Engulfing Bar does have to engulf at least one previous bar. The psychology behind the 2 Bar Reversal is quite simple. For a bearish 2 Bar Reversal the first bar must go up and close near the sessions highs. This makes the rest of the market think that particular pair is breaking out higher, but this is a lie. When the second bar opens it whips back lower and fakes out the market, taking traders stops along the way. The second bar must then close near the session’s lows and preferably below the first bars open. An Example of a Bearish 2 Bar Reversal: 2 Bar Reversals can be found in all markets and all time frames. This does not make all 2 Bar Reversals tradeable however. Not all 2 Bar reversals are created equal. The very best 2 Bar Reversals can be found when a strong trend is in play and a pullback occurs to a logical pullback area. An example of this can be found below: Because 2 Bar Reversals are reversals signals it is critical traders look for them at swing points. When looking to trade short traders must look to trade from swing highs and when looking to go long they must look from swing lows. Failure to follow this rule and to trade 2 Bar Reversals as continuations signals would be a risky move. Quite often you will notice 2 Bar Reversals will be the catalyst for a large change in the trend direction. An example of this can be found below. Notice the trend had been moving very strongly up before a very solid Bearish 2 Bar Reversal formed? Another Example of a Bearish 2 Bar Reversal From Swing High The 2 Bar Reversal is a very easy Price Action formation for Price Action traders to identify on their charts. The next step is for a trader to learn the art of managing the trade correctly once they have been entered. More information on trade management can be found in the Price Action Course. Before trading the 2 Bar Reversal on a live account traders are advised to first perfect their method on a demo account. There is no reason to lose money whilst learning in Forex. Traders should first prove to themselves that they can make money consistently for a period of a minimum of 3 months before attempting trading live. Stick to a demo, perfect your method and then go live. Johnathon Fox Price Action Trading
  5. Trading Forex With Your Gut

    I am glad you liked it!
  6. Trading Forex With Your Gut

    Trading With Your Gut Quite often you will hear traders or trading coaches explain part of their trading as “trading from the gut” or “It was just a feeling I had about that trade”. What the trader or coach can never explain is “what trading from the gut is” or how and why they got a feeling about a particular trade. As Price Action traders we spend a lot of time watching charts and perfecting our craft. Over the many months and years of watching charts our subconscious brain is picking up on all different kinds of information and locking it away. Generally we are not consciously aware that this analysis is going on, or that we are noticing these different patterns and scenarios. The Subconscious Brain The subconscious brain is picking up and storing information such as the outcomes of trades, what happened when price hit a certain level and the particular trades that did not work out. The subconscious brain is very powerful and can store incredible amounts information that our conscious brain cannot. The problem with the subconscious brain is that it cannot remember the many different scenarios exactly or the particulars of trades gone by, over many years. Even though we cannot consciously remember exactly how price played out in the many trade examples of the past, the subconscious brain can give us warning signals. These warning signals come in the form of a feeling in the gut. These feelings could be a worried and cautious feeling or a feeling of excitement and positivity. We may not be able to interpret why we are receiving these feelings but they are very real and are happening because of a reason. These feelings in the gut serve a purpose, and if listened too, and obeyed, can help you in your trading. Listening to Your Gut Over many years a well exercised trader will watch many Price Action setups come and go. Every time these setups occur the subconscious brain is taking notice. The subconscious brain stores this analysis away and keeps it for anytime the trader may need it. The next time a trader looks to get into a trade the subconscious brain will carry out its analysis and give the trader a feeling. The trader is often confused with this feeling and where it came from. The subconscious brain is either trying to warn the trader that it has seen this scenario or pattern, and it didn’t work out well, or that in the past similar setups have worked out great. This feeling in the gut is always there for a reason, even though the trader may not be consciously aware of why they are experiencing that feeling. It is there to help the trader make a decision. Novice traders will often get this feeling and deliberately ignore it and try to make it go away. The novice will feel puzzled and will enter the trade regardless, even if they are experiencing a feeling of caution. Gaining Experience Traders can learn to harness these feelings from the gut and use them to their advantage. The more experience and time a trader has had in front of the charts the better and stronger the feelings in the gut are going to be. This is because the subconscious brain has more analysis from which to draw upon. As the trader gains more and more experience they will also begin to notice which feelings they receive in certain situations. Learning to listen and obey these feeling is vital to be the best trader you can be. When traders learn to trade using both the conscious and subconscious parts of their brain they will be able to feel and trade with the flow of the market. This experience is often referred to as “being in the zone”. Being in the zone is when a trader can logically select and manage their trades, and is also aware of their “feeling in the gut” and then acts accordingly. The Human Touch Computers in this day and age are incredible. Computers can work out the hardest of mathematical equations in seconds, which would take man hours to do manually. In trading with computers and in particular trading indicators have taken the retail trading market by storm, 4 out of 5 traders are either using indicators or looking for an indicator to use. As impressive as some of these indicators may seem they do not have that human element. To become a master trader both the conscious and subconscious brain must be harnessed and accessed. Computers will never be able to replace the human touch that helps traders to feel when things are not quite right, or when something irregular may be about to occur. I hope you have enjoyed this article and can use this information in your trading. Safe trading, Johnathon Fox Forex School Online
  7. How To Get Started in Price Action Trading

    Your more than welcome. I hope you can further your education in Price Action! To see some free videos and articles on Price Action go here: Price Action Videos
  8. Price Action trading is one of the most powerful methods a trader can use to trade the Forex Market. Price Action trading is using the information that is presented to a trader in the form of raw data such as candles or bars that form trade ideas. Price Action is the most clear and uncluttered method a trader can use as it involves using only key levels in the markets with proven Price Action formations to signal a trade setup. Although Price Action can look at times to be a simple method to trade the markets with, there is much a trader will need to learn and perfect before they can begin making consistent profits. Strip Your Charts of ALL Indicators The first thing a trader interested in Price Action trading needs to do is take of all the indicators and clean up their charts. One very common false belief new traders have is that the more indicators they have on their charts the more chance they will have of accurately predicting what price will do. This is simply wrong. Start watching Raw Price and the patterns that price tends to create and repeat. Price gives all the information traders need to know to assess the markets. Stop Obsessing Over the News and Fundamentals Price Action candles are thought to already have the news and fundamentals of a currency pair factored into them. In other words whatever the news does it is already showing us on our charts. Of course at times new announcements will make price react a little more than usual, however price in most cases will already be showing us the way it before the news release. As the little guys in the huge market that is Forex we do not have anywhere near the knowledge of the big guys so give up on trying to trade based on what the news is telling you. By the time you have found out what the news has done the banks and big players have made their millions (if not trillions) and closed their positions. All the while your are still working out whether you want to go long or short based on the new announcement! Forget it! The Price Action will reflect exactly what has happened in the news, so as long as you know how to trade price you will never have to worry about following the news announcement or fundamentals. Learn To Read Price and Price Action Signals It is very important you learn to read price and get an understanding of how price reacts at certain levels in the markets. Learning to spot if a market is trending or in a range is also vital to your success as trading with the trend is a much easier play than range trading. By learning some key Price Action signals such as a Pin Bar or Engulfing Bar and knowing where to trade them from will also increase your chances of placing winning trades. All this knowledge can be found in just a raw price chart without any indicators whatsoever. Learning through an online course such as Forex School Online’s Advanced Price Action Course can teach you all you need to know about becoming a Price Action trader, and also let you learn in your own time no matter how fast or slow. Don’t Try and Do it All At Once! Don’t try to trade every setup all at once. Learn just one Price Action signal such as the Pin Bar and perfect it so you know what to do in every situation. Instead of being average at all the Price Action setups, be a master of one signal at a time and perfect it in every scenario the market can throw at you. This will put you at a much better advantage than the majority of the traders who are making the mistake of over trading and trading Price Action signals they don't fully understand. The same goes for trading in different time frames. Start with the longer time frames such as the daily or weekly chart and trade on it only. Until you have mastered that one setup on the daily or weekly chart do not go scanning down on the lower time frames just to enter rubbish setups. Until you have perfected trading on the daily time frame you have no hope of trading on the smaller time frames. Trading smaller time frames such as the 1hr will just cost you money until you know what you are doing. Smaller time frames tend to be more volatile and can have large whipsaws that can knock you out unless you have practiced and perfected first trading on the larger time frames. This doesn’t mean that in time you can’t learn to trade all the signals on any time frame you want. You can, however learning and practicing one setup at a time, on one time frame at a time, will greatly increase your chances of being successful and making money consistently. Demo trade We are very lucky as Forex traders as we can practice on demo accounts with the same scenario as if we were trading live. We can practise with the same leverage and spreads in place. There is absolutely no reason to lose money whilst learning to trade Price Action. Demo until you have been profitable for a period of a minimum 3 months. After this point you may want to go live but keep in mind you don’t need to go from demo to risking large amounts of money. Trading live will throw up completely new challenges such as how you deal with greed and fear so take your time and DON’T bet the farm! As you start to get more comfortable with your tradining and your making money consistently you may want to increase your trade size but never risk more than 3% of your trading account. Safe trading to all, Johnathon
  9. Trade Forex and Keep Your Job

    The wonderful thing about Forex trading over trading so many other markets is that traders can make good money and only trade at the end of the day or the end of the New York session. This allows traders to keep their job and trade successfully at the same time. Many people have jobs they love or to be honest, cannot just leave at the drop of the hat. That doesn’t mean these people can’t trade and make good money also. In fact I advise traders when learning to trade to only trade the daily charts, and to only trade the end of session in New York. I am personally a massive fan of trading the close of New York setups. The reason so many traders like trading the daily charts are; - Daily candles do not have the noise that the intraday charts have. By trading the daily time frame we can more accurately predict the flow and trend of the market. Markets tend to be very choppy on the intraday time frames. By trading the daily charts we don’t have to deal with this volatility or market noise. - Lifestyle. Many traders come to Forex to enhance their lives, not to have Forex running it. This is a huge factor for traders trading the daily charts. Trading the daily charts takes anywhere from 5-20 minutes depending on whether there is a set up to trade or not. If there is a trade, the trader can place the trade and then come back and manage at the next close of the candle in 24 hours time. - People can keep their jobs and still trade. Obviously if traders are trading the daily timeframes they can place trades and then hop of to work or come in from work and check the market depending on which country and time zone they live. - Simplicity. Trading the markets on the daily charts offers a much simpler way to trade than sitting and watching computer screens all day long! Learn to Trade the Daily Charts I advise all new traders to Price Action to first start learning to trade on the Daily time frame. Once they have perfected their trading method on the daily time frame they can then begin to explore possible trading opportunities on the intraday charts. I recommend progressing in this manner because the daily charts are lot easier and less complicated to navigate. The intraday time frames tend to be more choppy and volatile. Traders have to learn to deal with noise and fast market movement when they move down the time frames. Many traders find that after trading the daily time frame and becoming consistently profitable they have no need to trade any of the lower time frames. They realise they can have the best of both worlds of having a busy and happy life and still being able to trade successfully. Perfect Your Method When learning to trade Forex there is no need to rush. The majority of traders do not make money in their trading careers and you don’t want to be one of these! When learning to trade the daily charts take your time and perfect your method. Before going live you want to be completely confident in your trading method. You can build this confidence by trading on a demo account. There is no set time frame a trader should be profitable on a demo account before going live, however I would definitely recommend being profitable for at least three months before putting any skin in the game and risking money. Moving Down to Intraday Charts As I said earlier a lot of traders find that after trading daily charts and becoming profitable they see no need to trade any other time frame. If you do want to trade the smaller charts such as the 1hr and 4hr charts you don’t just want to jump into the deep end. After moving from the demo account on the daily charts and becoming profitable on a live account you need to repeat the process. Your next step would be to move down to the 4hr charts and begin practising on the demo account. Once profitable on the demo account for a period of minimum three months you could consider also beginning to trade the 4hr charts live along with your daily setups. To trade the 1hr charts or anything smaller you should repeat the process. There is no need to lose money when learning to trade. If the majority of people trading do not make money you should start doing the exact opposite of what they do. The majority of traders will not learn on a demo and perfect their method. They will go straight to a live account and lose money. If you want to have things that most people don’t have, you must start behaving differently then how most people behave! Do not follow the crowd as nearly all the people in the crowd are losing money. Be smarter than the rest and start doing the exact opposite of what most traders are doing! Safe trading this week, Johnathon Fox Forex School Online
  10. The Best Mindset For Trading Forex

    Yes, a lot of traders fall into the trap of thinking that the more trading they can find and fit in the better. Just because the market doesn't close doesn't mean we have to sit and watch it 24/7. Having times to scan for trades that are set and in a routine can help traders a lot! Regards, Johnathon
  11. New Guy Question

    Open an account that allows you to trade risking only a few dollars. You can demo trade and be a consistent winner month after month but when it comes to involving cash your mindset changes. Traders don't fail because they don't have a method that works. They fail because of the way they look at the markets and can't handle the mental challenges involved with risking money. The trader with the average method but correct frame of mind will flog the trader with a killer method but horrible psychology. Find a basic method that is not complicated and then work on your money management and trading psychology. You won't do this as nearly all traders are concerned with finding the holy grail that doesn't exist. Then again most traders consistently lose also. Good luck on your journey and I wish you all the success, Johnathon
  12. The Best Mindset For Trading Forex

    Today's article is going to touch on a subject most traders never even consider working on improving. Ironically this is the very same thing that always with out a doubt stops them from creating consistent profits from the market. I am talking of course about trading psychology and the mistakes traders commonly make. Common emotions Professional traders know trading is very much a matter of having control over one’s mind and emotions. Some of the more common psychological mistakes are; - Fear: of losing, being wrong, missing out etc - Greed - Boredom - Revenge trading Fear Traders experience fear in a lot of their trading experience. Fear can be brought in by simply placing a trade or when a trade goes into negative territory. This fear can be crippling for a trader and can lead to that trader being frozen. Normally fear is a result of the trader either risking too much money or not having a sound trading plan. Traders that risk too much will tend to always worry with fear as they know it is only a matter of time before their account is crippled. Fear can be hard to banish. Traders can get rid of this awful feeling by learning a solid trading method as well as very sound money management techniques. Traders are less likely to be in fear mode if they are risking only a few % of their accounts and they know they will be able to trade another day. Trading with only money that a trader can afford to lose is also likely to limit the affect fear has on a trader’s mental state. Never ever trade with money that is supposed to be for something else such as rent or food! Anything can happen in the Forex markets and trading with money that one cannot afford to lose is a sure way to being frozen with fear. Greed Greed is trait that brings many traders undone. The feeling of making a lot of money in a short amount of time appeals to a lot of people. This then increases the trader’s appetite to risk too much, on too many trades and bingo their account is crippled! Another all too common situation is the trader in the winning position and is up a tidy sum of money. Instead of taking the money when the market makes it available the trader hangs on looking for more and more! You can guess what happens……… Yep the market turns and the trader is left with a loss. I have a motto and that is “Always leave some for the next guy”. I never look to pick the bottom or the top instead looking for a logical place price will turn. I place my take profit a few pips above or below this level as to make the chances of my target getting hit a lot higher. When the market makes profit available to you, take it and move on to the next trade. There will always be another trade! Boredom Forex trading is not a form of entertainment. It is a business! When new traders are bored they will quite often turn to the markets for excitement. This in turn tends to lead to over trading. They want to feel the rush of being in a trade so they place just any old trade. Do not fall into this trap. Have set times that you scan the markets for setups. As soon as your done, turn the computer off and do something else. Do not look to the market to fill the feeling of boredom. Revenge Trading Quite often when amateur traders lose a trade and money, they will look to make that money back straight away. This is regardless of whether there is a viable trade to be placed or not. This then leads to the trader losing more money and on the cycle goes. Trading is a random event. No matter how good the setups look you just don’t know which trades will be the winners or losers. If you have a proven edge on the market you know that over a large sample size of taking only the viable setups you will be up. Do not take average trades as they decrease your edge on the market. When you place a losing trade move on and look to the next trade. You should definitely learn from the trade but start to look at the market as a random event. Two traders can have the exact same method with all the same equipment. One trader makes money consistently and the other losers. Why is this? It’s because the trader that makes money has mastered their beliefs and frame of mind. They have learnt to deal with the problems detailed in this article. Trading is all about dealing with your emotions and subconscious beliefs. If you can start to work on your state of mind whilst trading you will increase your edge in the market. I hope you have enjoyed this article and can implement some of the thoughts and strategies into your own trading. Safe trading, Johnathon Fox
  13. Where Many New Traders Go Wrong

    Often new traders come to the market with many false beliefs about what is needed to make money consistently in the markets. This article will explore some of those false beliefs and how you can fix them to become a successful trader. False Belief 1 – I need to watch the markets as much as possible This is a very common belief that many new traders find themselves falling into. Quite simply trading does not have to involve long hours staring at the screen and many traders actually find that once they begin to cut back their screen time their success rate climbs. Traders need to identify when is the best time to place trades and then step away from the screen. An example of this might be a trader that trades off the 4hr chart. They may choose to look at the charts and scan for trades during the US and UK sessions when the 4hr candle closes. If they find a trade they place it and set stops and targets and then turn the computer off until the next 4hr bar closes. If there is no trade to place they simply turn the computer off until the next 4hr bar closes and they scan again for trades. Watching the markets endlessly will not produce any more trades for you to enter compared to scanning at a set time. Continually watching the markets will wear you down and make you a lot more likely to over trade. The feeling of wanting to be in a trade just for the sake of it is hard to fight when you are just watching the market endlessly. False Belief 2 – The more indicators and junk I can place on my chart the more likely I am to predicting the direction of the market Many traders believe that placing indicators on their charts give them a great chance of picking the right side of the market. The problem with this is indicators are built off what price has done or off old price data. What does this mean? It means traders who use any indicators at all, are using old price to predict what may happen in the future. This may sound crazy but it’s true! All that’s needed to trade successfully and to consistently make money is simple Price Action. Price Action is the key to all moves in Forex. Price Action is people’s behaviour placed on a chart for us to analyse. As all indicators are made of old price information, it makes sense to use the current live price information to base our trading around. False Belief 3 – I can’t be wrong Traders often look at trading as a matter of being right or wrong on each particular trade they take. I prefer to look at the market as a random event. I can never know for sure no matter how good the setup looks that it will work! I try to take only the best setups but does that mean they are all winners? No, the outcomes are random! I make money consistently month after month because I know I have an edge on the market that produces more winning trades than losers over a span of time. I may lose 3 trades in a row but I know over 30 or 40 trades I will always be up. Start forgetting and stressing over this trade and the trade the just went past. You are not right or wrong. Trading Forex will always produce a random result. False Belief 4 - I have to analyse every little thing and know everything inside out Whilst it is good to be a master at the method you trade you do not need to know about every little thing. People often come unstuck falling into analysis paralysis. They can never believe that things can be simple and more than that, making things simple is the way to success and profitability. SIMPLE is the way to go. Pick just one method to trade with such as Price Action and perfect it. Do not try to involve 100 methods with 10,000 indicators and just as many timeframes! Keep it simple and perfect you’re one chosen craft! I hope you enjoyed this article, Johnathon Fox
  14. Johnathon Fox is a professional Forex and Futures trader who also acts a tutor and mentor to many aspiring traders world wide. Johnathon teaches a very refreshing Forex Price Action method to he's students and has a real knack for helping traders become consistently profitable.

     

    Learn more at Forex School Online

  15. The Truth About Forex Trading

    Many traders come to trading with dollar signs in their eyes and dreams of a yacht docking at the Bahamas. Whilst this dream is not unattainable the percentage of traders that are ever going to make that type of money is extremely small. What can be realistically achieved? What you will be able to gain out of the market is largely based on the amount of money your trading account has. Someone with $1,000 is going to struggle make decent living and ride out what are inevitable losses that will come, compared to someone with $100,000 who is going to have a far better chance. It is simple maths that the more money in the trading account the less percentage that the trader has to make, to make a decent living. Are you kidding yourself? Are you expecting to open an account with $10,000 and quit your job? If so I think you need to realistically asses your situation. Example: Let’s say that you need to make $50,000 per year to make a living. Account balance A= $10,000 to make $50,000 profit = 500% per annum Account balance B= $200,000 to make $50,000profit = 25% per annum As you can see from the above example trader A needs to make 500% yearly to make a living, whilst trader B only needs 25%. This is obviously not including compound interest from within that year however trading on the assumption that you need to make any more that 5% a month is very risky. Some people will say "only 5% a month". Well 5% a month is 60% per year, and if you add compound interest with the growth of your account it is 80% per year! If you can make 80% per year growth you are doing very well! How does having unrealistic expectation hurt my account? Getting rid of unrealistic goals will help you with the mental application of your trading plan. Traders that are trying to reach trading percentages that are large will in most cases do two things; 1. Over trade 2. Risk too much money per trade Overtrading is a very common mistake made by many traders who are unrealistic in what they can achieve. They operate on the assumption that trading more will make them more. This is in fact is the complete opposite. Trading more will lead them to taking setups that are not worth taking and they will begin to lose. Risking too much will in most cases lead to an account being blown. Occasionally a trader will get lucky and pull off a large winner. Over time however the same trader can’t keep it up and when the losses come their account is crippled. What is needed to become consistently profitable? To become profitable a trader needs to realistically asses their situation. Every trader is different. How they trade and what method they will use will vary greatly from trader to trader. Learning a method such as Price Action trading and perfecting that method will greatly increase the chance a trader will have of making consistent returns in the market. If a trader can learn to trade Price Action and start using strict money management principles they will set themselves apart from the pack and give themselves a good chance of becoming consistently profitable. I hope you enjoy this article. It is designed to show you what is possible but at the same time bring you into the correct mindset that is needed in such a competitive market such as Forex. Safe trading, Johnathon Fox
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