Discipline in trading is a never-ending discussion. Each of our videos and articles are focused on this topic, because they talk about waiting for the strong and reliable trade setups, and entering the markets only when there is a strong and reliable trade setup: The Discipline of Waiting for a Strong Trade Setup in Forex Trading
While most traders lose, disciplined traders make profit slowly but surely. Most traders are after doubling their accounts every week or every month. But disciplined traders don’t care about making profit. They only care about losing no money. So, they wait for the strongest trade setups, while they don’t risk more than 1-3% of their capital in each trade. So, many of them make as low as 1% profit per month. But they did it consistently. Other traders sometimes double their accounts in one month. But they they wipe out the whole account with all the profit they had made.
If you have a small trading account and you choose to risk a lot of money in each position because you want the profits you make to be reasonably high, at least you must wait for the strongest trade setups. If you do so, you will have a higher chance to win and make profit. But if you enter the markets whenever you sit at the computer, then you will wipe out your account sooner than later.
My last video is focused on the miracle of candlestick signals, and support resistance levels breakouts, and also trading systems like Bollinger Bands Squeeze. That’s why it is related to becoming a discipline trader, because those who follow these signals and systems religiously will be winners. Please make sure to read the below articles carefully to learn how our systems work, if you like to be a disciplined trader:
Candlesticks:
- Candlestick Trading – The Language of Japanese Candlesticks
- Which Candlestick Patterns Are the Best and Most Reliable to Trade?
- Good Examples of the Strong Candlestick Patterns
- Bearish Engulfing Candlestick Pattern As a Strong Sell Signal
- Piercing Line Pattern: A Strong Candlestick Buy Signal
- Candlestick Shadows Explained
Bollinger Bands Squeeze:
- Bollinger Bands Squeeze: What Is It and How to Trade It?
- Bollinger Bands Squeeze Trading Strategy
- Forming Bollinger Bands Squeeze on GBP/USD Daily Chart
Please subscribe to our YouTube Channel and make sure to watch another video that talks about candlestick shadows. You can refer to our Candlestick Shadows Explained article and while you read the article, you watch the video, because the article is linked to the video.
Following the above list will make you much closer to becoming a disciplined trader.
Now, let’s see what the miracle of candlestick signals, and support resistance levels breakouts, and also trading systems like Bollinger Bands Squeeze is.
Before you read the rest of this article, please note that this is NOT a trading or investment advice and we are not trading and investment advisers. We are just sharing chart analysis techniques. You understand that you buy/sell/hold at your own risk. Also, please make sure to read our terms of use and privacy policy.
On Amazon’s stock price chart, a resistance level was formed on the daily chart since 2020.07.13:
Then, the 2020.08.24 daily candlestick tested the resistance level. The upper shadow of this candlestick tested the resistance level but closed below:
Now, if you refer to the chart, you will see that the 2020.08.25 candlestick was trying to break above the resistance level, and it did it and broke above the resistance level.
See what happened! The next candlestick that formed and closed yesterday, went up for over 80 dollars after this resistance level breakout and those who have been following our videos know that we have been waiting for this long trade setup, since several days ago, and when the market was moving below the resistance level:
Same thing had happened several weeks ago:
The conclusion is that as a disciplined trader, you will be rewarded and your patience will be paid off and the trading systems that you follow religiously will give you a strong trade setup that can make hundreds of pips or thousands of pips and thousands of dollars for you. Your patience in waiting for a strong trade setup and also following a strong trading system like what I have taught you in my videos and articles, and on our YouTube channel and on our website can turn you into a consistently profitable and disciplined trader.
While other traders are losing because of over-trading and taking too many positions based on nothing and based on no trade setup, you wait for a strong trade setup based on the trading systems that you are following with us, and then you take positions that make you a lot of money.
EUR/USD:
EUR/USD is doing almost the same on the daily charts. I told you in this article that the last movement on EUR/USD looks almost exactly like Amazon’s last movement. Currently EUR/USD
is also forming a Bollinger Bands Squeeze and a resistance level can be seen at the top of the market now. It is possible that this market goes up, tests and breaks above the resistance, so that we will have a long trade setup here as well:
Gold:
Gold is one of the other markets that we have been following. If you have watched our previous videos, you know that a resistance level breakout happened on the monthly time frame by July’s monthly candlestick, and the current monthly candlestick is retesting the broken resistance level on the weekly chart. A candlestick broke above the same resistance level, and then three other candlesticks retested the broken resistance level. The last one which is the current weekly candlestick is still retesting the broken resistance level, but so far the broken resistance level has worked as a strong support and hasn’t allowed the price to close below. So far this means that gold is going to go higher and even breaks above the highest high it has ever formed. And this is a long trade setup for those who want to buy gold.
I am not giving you any signal to buy gold. I am not suggesting you and I am not advising you. This is just for educational and training purposes and is not a trading advice. I am just showing you how to wait for the forming trade setups to form. I am not advising you to buy gold. It is up to you if you want to do it or not. However, for those who follow the same technical analysis techniques,
what we currently have on the gold’s price chart is a long trade setup as long as the broken resistance level is working as a strong support. They know this as a long-term setup and they can get in this market at any time. However, if a bullish candlestick forms above the broken resistance level, with a bullish body that engulfs the previous candlesticks, and so it forms something like a Piercing Line Candlestick Pattern or Bullish Engulfing Pattern, it is a long trade setup formed by the candlesticks above a broken resistance level, and therefore, many other traders buy gold based on such a signal. For those who are a little more conservative and they want to see a long trade setup formed by candlesticks above the broken resistance level, they have to wait until a bullish
candlestick forms there:
This is how you can become a disciplined trader who waits for the strong trade setups to form.
