Over the last month or so I have studied a lot about Forex trading, stock charts and crypto currencies. Being as the crypto currency market is slowing dropping its market cap i started to focus on using what I learned to trade crypto's and apply that to either the stock market or Forex market.
I ended up deciding to take on the Forex market because it is the biggest market in the world and out of 300 currencies in the world, 10 of them do 80 % of the daily volume. It is a mature market especially compared to the crypto world, which had its bull run in the last year or so.
The Forex market is so well established and also has essentially natural demand in a global economy because large companies are selling products to other countries and having to pay their employees in the local currency, as well as many of the local suppliers.
So I learned about candle sticks, what they mean in the traditional sense and also how to read the well known basic patterns of trends and channels. All of this was great but it still required lots of paying attention to the market which is quite time consuming and also mentally exhausting to process.
There had to be a better way
This is where I started searching the internet for strategies that are beyond reading one candle at a time and mixing that with RSI (relative strength index) and MACD (moving averages). Sure these indicators are of some use, but they model the past up to the present moment and the whole idea to making a good trade is to be able to predict with relative certainty which way the price is going to move in the next hour, 4 hours, 12 hours or even the next day.
So how was I going to figure all this out, on my own with the information that I learned that was freely available online? The first step was to find someone that was a pro trader with a lot of experience and had an excellent trade win % and then learn from him/her.
I ended up coming across a video on youtube from a guy that taught the stuff. I looked further into what he was selling and found he had training packages from $29 USD to $1000 USD on his website and he held webinars on a regular basis.
I started to watch his webinars that are also recorded and posted on Youtube and distinctly noticed what he was teaching was way different than the traditional information taught. So I gave it a chance and learned a couple very good strategies that limit the risk of trading to a very small amount while increasing the reward of trading.
Essentially the pro traders will call this Risk Management. Where it sort of makes sense that you want to make a trade with a potential for say a 5% return in one day while only risking a 1% loss for the day. As long as you won 50% of the time you would be consistently making a 2.5% return on a daily basis. And if this could be a reality than that is enough for almost anyone to trade daily and make enough money to make the time involved worth while. After all, a 2.5% return each day has a very good compounding effect (doubles money fast) as seen in this chart below for a $100 investment:
As you can see in the image above, a 2.5% daily return turns into a huge amount when compounded daily. So is this even possible? I am going to find out...and share the journey with you on this blog post.
So after over a month of studying and learning and making some good trades and bad trades here is the first video of me making the trades based on pro strategy (and also black towers strategy).