When to ENTER a Trade in Forex - Grand Forex Systems


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When to ENTER a Trade in Forex


Trading is a very, very simple practice. There are only two trades. I always say this: every single there are, a million strategies. There are only two trades, continuation, and reversal, but the art of the game. The really great part is figuring out. You know when to trade one trade, the other, and, more importantly, it's the amplitude. It's like how much of a continuation there will be and how much of a reversal will be.

That's the tough part, that is, it requires constant. You know, monitoring and experience and learning um so on you know, on the face of it, it's super simple uh, but in practice, it requires lots of nuances that I think that's what makes the game so interesting. Yeah. How did you personally learn this? This kind of nuances and how far the move can go, do you learn it by yourself?

Did that take a lot of time, or was it with someone else and faster like in every other discipline? Some people are naturally talented and can pick it up. You know, like you go swimming or you go running. Some people will just run the marathon and the first time in like two and a half hours, and there are other people it's going to take them 20 years to get to that level. It's um part of it is certainly your own ability, but a huge part of it, even if you have a lot of ability um.

This is such a challenging, challenging business that you constantly need. You know the experience, and a lot of it is, you know. A lot of it is all psychological. You know, just it's the ability to control yourself, it's the ability not to repeatedly make the same mistakes, which is something that you know. We all do all the time, um and um.

You know it's my attitudes, my views of how I traded just changed 180 degrees over the last few years. I said, you know it's exciting. I started basically being always a faith trader, a faith trader. Somebody who's always on the opposite side of trend-right, so I would always sell highs by lows, which is very intoxicating and kind of psychologically.

You know a pleasant thing because you're always against the crowd, do you think you're always the smartest guy in the room, but many times you're. Actually the stupidest guy in the room. By doing that, um, and I've had to really reteach myself a huge amount of humble. The single most important lesson I learned in trading was humility, which is tough for anybody to accept.

I mean, really humble where you're not just like giving you lip service, but you actually, you know every single day, don't think you're the smartest guy in the room, but actually think you. You know you need to learn every single day. If you can stay humble, you actually are way ahead of almost everybody else because I think we naturally tend to think.

Oh, I'm the smartest. I know what to do. I have three great trades in a row. You know I'm the king of the hill, and then, of course, everything goes sideways right away, and also, if you're humble, I think you can survive the inevitable string of losses because then you approach the market with a much more realistic sense that you know.

Yes, you know my strategy is designed for continuation, and now the market is in a reversal mode, and I have to accept that instead of trying to fight it and trying to figure out, you know the market is trying to tell the market that it's wrong. You know, um, so there were probably, yeah, a thousand technical skills in many ways.

There's an everybody can learn technical analysis. Everybody can learn fundamental analysis. Everybody can learn various aspects of execution, um, and day trading techniques. But the right mindset to stay in the game forever. That's the key thing. If you can stay in the game forever, you will inevitably um succeed.

You know, um, because everybody else just burnt out I've seen so many people, you know, do great and then burn out all the time, yeah, and that lesson on being humble is like, I think, really big, because I've seen a lot of people that get Really attached to a system or a way to trade. They cannot evolve when things go bad, and that's the big thing. I'm probably sure you've seen that before us in the past.

Oh absolutely, you know, and the thing is that when you like, when, when you have that attitude and when you have the attitude of like listen, there's only really two systems, there's a continuation system and a reversal system.

You don't have that emotional attachment. You know you can say, well, it's failing because obviously it's in the wrong environment, and then I have to decide. Do I want to keep the system going, or do I, you know, turn it off until the environment changes, or do I adjust it because of the wrong environment? Two things can happen in the wrong environment with the system?

So if you're in a continuation, says the long-term trending system and the market is range-bound, you're just you're going to get destroyed right, but the other more nuanced way you can get destroyed in systems is um amplitude. So let's say just for argument's sake. You know you're in a system where you have 100 point stops right and 200 pip targets.

You know, for argument's sake, all of a sudden, the market literally is three times as volatile as what you've set up your system to be; the system is not failing. What's failing is your ability to understand the volatility has changed, so there are always two components: there's the type of market you're in and the kind of volatility imprint it's putting around like right now, you know.

We literally would just you, you could have fallen asleep, broken up, it was the same price right and then yesterday it goes 500 pips right so and today, of course, is you know it's all over the place, and so this whole shift from zero volatility to matt.

To least volatile instrument to most volatile instrument, and this, by the way, is universal. You know you can look at stocks. You can look at everything else. Some stocks will sit dormant for a long time, so you have a system that works on that, and all of a sudden, the stock explodes in volatility that you know idea.

That concept is essential in making sure that you're on the right side of the trade. It's not just the kind of market environment, and it's what kind of volatility um fingerprint it's leaving um as you're in the game and, as you know, it's tough because you got you're. Basically, in the middle of a storm with the weather, conditions are changing, and you have to adjust and say: oh, you know it's no longer nice and sunny it's starting to like rainstorm torrentially on me, and I better adjust um, but that is you know.