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New Forex Trading Method – Forex Ladder

Last week in the LIVE Forex Training I unveiled a new online forex trading technique that I call “The Forex Ladder.“

We followed 2 currency pairs & made 245 pips profit with ONLY 10 minutes worth of work per day.  I’ll explain how below…

Buy Low Sell High

Any stock trader will tell you how to make money trading. You have to buy low & sell high. You can also sell high & buy low. In the forex the order you do this in isn’t important. It’s all about getting the right price.

The Forex Ladder

I’ve created a system that allows you to buy low & sell high, while simultaneously managing risk & reward. It’s ok to take on more risk if there’s a good enough reward for doing so.

What is the Forex Ladder?

Each day you log into your online forex trading account and place SIX entry orders. You do this at roughly the same time each day. It takes about 10-15 minutes and then you’re completely done until the next day.

Currency Pairs Followed

I’ve been developing the Forex Ladder for several years. For the first time ever, I shared the results with the LIVE Forex Training class that I teach every day on this website.

Last week we followed the USD/JPY & USD/CAD. Here are the results:

USD/JPY Trade Results

On the picture below there is a green line to represent every time I went long and a red line to represent every time I went short. The thicker lines denote having bought or sold twice as many times at that price.

As you can see, there are more green lines lower (buy low) and more red lines higher (sell high). To see the actual profits on this currency pair for the week, please view the trade log below:

As you can see, these trades netted 287 pips profit in just one week of trading. The best part is this happened with only 10 minutes worth of work per day!

USD/CAD Trade Results

We also followed the USD/CAD last week. You can see the prices we bought & sold at in the image below:

This pair didn’t do as well, it actually sustained a small loss as you can see in the trade log below:

This pair lost 44 pips, which is modest compared to the MASSIVE 282 pip gain on the USD/JPY.

Overall Gain

Overall the Forex Ladder trading technique made 245 pips with less than an hour’s work in a week. This would have grown a forex trading account using proper money management techniques by 4.9%, which is fantastic for an hour’s worth of work.

Every trade was posted IN ADVANCE, BEFORE the trades happened, so this is proven to work.

We’re currently trading different currency pairs using the forex ladder technique in the LIVE Forex Training class. This technique is not available anywhere else. I would love to personally teach you this method when you register for the LIVE Training today

Posted in Technical Analysis

Reward vs Risk for Forex Trading EXPLAINED

Lately I’ve been answering alot of questions about reward/risk ratios. This question comes up in the LIVE Forex Training Class, it’s also part of the money management strategy taught in Forex Sailing.

Today I’m going to go a little deeper into this topic because it’ll help you understand online forex trading better.

Reward/Risk Ratio

Any time you place a trade, you should set a stop & limit. If you take the pips you will GAIN (if the trade goes well) and DIVIDE by the pips you can LOSE (if the trade fails), you get the REWARD/RISK Ratio.

This ratio gives you a percentage so you can understand the risk of the trade in a standard way.

Breakeven Analysis

Once you know the Reward/Risk Ratio, you can determine what percentage of the time you need to be correct to breakeven. If you’re right more than that you’ll make money. If you’re wrong more than that, you’ll lose money.

Let’s look at an example:

You find a Forex Sail. You determine that if you place a 100 pip stop and a 170 pip limit, you’ve got you’re trade. If you DIVIDE your potential REWARD by the total RISK you get 170/100 = 170%.

If we did many trades, here’s how we could breakeven:

1. Lose 100 pips 170 times = 17,000 pip loss
2. Gain 170 pips 100 times = 17,000 pip gain
3. Loss = Gain = Breakeven!

In this example there were actually 270 trades. We broke even when we were profitable on 100 of them. If we divide 100/270 (WINNING # of Trades / Total Trades) we get the BREAKEVEN PERCENTAGE.

In this case 100/270 = 37.04% is the BREAKEVEN PERCENTAGE

More About the Breakeven Percentage

If our trade works out more often than the BREAKEVEN PERCENTAGE we’re profitable as traders. In the example above we need to be right more than 37.04% of the time with that Reward/Risk Ratio…

Sounds good, doesn’t sound too hard to be right a little more than 1/3 of the time, right?

There is kind of a catch…a tradeoff really…

Breakeven Percentage Catch-22

The lower the breakeven percentage, the MORE LIKELY you are to be unsuccessful with your trade!

In our example the stop is much closer than the limit. Think about that for a minute…

If your stop is closer than your limit, you’re more likely to get stopped out, right?

The opposite is true. If the limit is closer than your stop, you’re more likely to hit the limit first.

Breakeven Percentage Chart

I’ve created a chart below with a few examples so you can see the pattern of Reward/Risk Ratios & Breakeven Percentages.

When reward = risk, you only need to be right half the time (50%) to breakeven (beige). This is common sense.

If reward < risk, you have to be right more often (light blue).

If reward > risk, you can be wrong more often (purple).

What Does This Mean?

In my next blog post I’ll be sharing more of what this means for making online forex trading decisions. For now, just think about the Reward/Risk ratio, and don’t make a trade without knowing what it is!

Posted in Technical Analysis

Growing Forex BALLS

If you’re interested in successful online forex trading, there’s a reason why you’re not successful trading yet…

Forex trading takes some BALLS!

It’s definitely not an endeavor for sissies. That’s right! In order to succeed at online forex trading, you constantly have to take risks…

You’ve probably heard your whole life not to take risks by some of the people closest to you. Just because you’ve heard this from people that care about you, doesn’t mean it’s completely accurate…

The Truth About Risk

It’s absolutely true that whatever you risk as your stop on a forex trade is money that you can LOSE! If the trade goes against you, you lose that money forever. It’ll never come back…

So you’d think that risking money over and over again is bad, right?

NOT TRUE!

Actually risking a smaller amount of money more times is “less risky” over all.

This is because every time you “risk” money on a trade, you have a chance of being right! So the goal is to play the game long enough to win. This is why forex money management is so important (here’s a free video that shows you how to do good forex money management).

Common Sense Example

What’s riskier? Risking your entire trading account on a single trade? Or Risking 1/20th of your account on a single trade?

The answer is obvious that it’s “safer” to only risk 1/20th of your account on a single trade!

What’s Stopping You?

If you’re not trading forex yet, it’s because you’re afraid of losing money. This is either due to a lack of knowledge, or a lack of confidence with the knowledge you have…

There’s an easy cure for this!

You need to start trading. There’s no way around it!

When you start trading:

• You’ll lose some money
• You’ll make some money
• You’ll get more confident as you learn more
• You’ll get better if you keep trying
• You’ll learn from mistakes
• You’ll become naturally curious about chart movements
• You’ll have new questions that you’ll seek answers to

The REAL Risk?

I don’t suggest for one minute that you risk money you can’t afford to lose. The truth is that you already waste money in various ways.

But don’t let losing a few hundred dollars to learn keep you out of the game. You can start trading with as little $200-$500! This isn’t a ton of money.

There’s an amazing market out there called the Foreign Exchange. It’s there for you to profit from 24 hours a day 5 days a week.

You’re so close to cashing in on it…What are you waiting for?

If you want to become a forex expert, you’re gonna have to grow some balls and take some risks…there’s no way around this fact…nothing ventured, nothing gained!

Posted in Forex Trading Mindset