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I Am a Good Forex Trader; What Is My Secret?

I know myself as a good and successful Forex trader, because I have been able to repeat my success every month for several years. I know many traders who started learning forex almost when I did, but they are still learning, testing different systems, and losing money. It is good that they are not disappointed yet, but I don’t know when they will start making money consistently. Why did I started making money after few months of learning and practicing, but these people are still learning? Many of them know a lot more than me, but why they don’t make money? What is the secret of my success?

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I am a good trader, because…

1. My Trading System Is Simple and Easy to Use

I have never tried to invent something new in Forex trading. I never tried to reinvent the wheel. We already have everything we need to trade and make money. All of the tools we need are accessible for free. Why should we make our lives too complicated?

I learned the technical analysis and candlestick signals and patterns. This is what I did as soon as I started learning how to trade Forex. After a while, I almost mastered the technical analysis and candlesticks. I demo traded and came to this conclusion that I should stick to candlesticks and forget about the other things like support/resistance lines and levels, chart patterns, and… because they were somehow too hard, time consuming, and unreliable. I have explained it here.

So I kept everything simple from the first day, and I started getting good results very soon. I did not try different indicators, because I did know that if I wanted to do it, I would have to spend the rest of my life on it. There are zillions of indicators, trading systems, and… . But there are some simple and easy to use tools that have been already tried by thousands of traders, from Japan to USA, and it is proven that they work. So I used those tools and forgot about the others.

2. I Am Disciplined

I simply use what I have learned and the tools I have. I am not looking for anything else. I do not let any emotions interfere and make me decide wrongly. I check the charts and I place the orders if I see a strong signal. It is as simple as that. There is nothing complicated about trading. Everybody can do it.

As a Forex trader, I don’t spend more than 20-30 minutes of my time on checking the chart every day. Professional trading doesn’t mean spending several hours at the computer and analyzing tens of charts and time frames. Checking the daily time frame of the currency pairs and stocks that you follow, is what you have to do every day. If there is any trade setup, you can see it instantly because a strong trade setup yells on you to take it.

You should also check the weekly time frames every weekend and the monthly frames once the new monthly candlestick opens. These are the strongest time frames and the trade setups they form can be so profitable.

Doing all of these, can’t take you more than 20-30 minutes per day. If you are spending more time on analyzing the charts, then I can say that you are not a profitable trader yet. If you are trying to convince yourself that a strong trade setup is formed while you know that it is not a strong, then you still need more time to learn and become a disciplined trader.

3. I Wait for the Best Setups

Some weak trade setups form on the charts every day. Those setups are for the traders who want to lose money. They are not for the professional and experienced traders. So I leave those setups for the others. I wait for the best and strong setups, and fortunately they always form. They form not as frequently as the weak setups. But they are enough to make some profit every now and then.

Having no strong trade setup doesn’t make me upset. It is a long time that I am used to it. We are not supposed to have strong trade setups every day.

4. I Strictly Use a Reasonable Stop Loss

Stop loss is one of the most important things in trading. Those who do not set a stop loss will be out of the game sooner than later. You can easily wipe out a million dollar account with just one position, if you do not set a proper stop loss. I have seen someone who wiped out a 7 million dollar account, because he foolishly did not set any stop loss and a proper risk management, and emphasized that his positions were correct and the market would finally turn around to follow his favorite direction. The market did turn around, but when his account was already blown up.

Your trading system should tell you about the best and most optimum place to set the stop loss, otherwise you should look for another trading system. For each of the positions you take, you should set a proper and reasonable stop loss which is not too tight or wide. You should not widen your stop loss when the price goes against you and is about to hit the stop loss. Also, please note that a too wide stop loss is like having no stop loss. And a too tight stop loss causes you to lose money even when your position is correct.

To stay away from the emotions, I don’t check the charts when I take a position. Checking the charts when you have open positions can trigger the negative and harmful emotions that cause you to make mistakes. When you see your position is losing, you get emotional and you close your position not to lose more, or you will widen your stop loss because you are afraid of losing too early and you want to give your position more time. When your position is making money and you are watching it, your emotions can cause you to close the position, because you think it is possible that the market turns around and you lose the profit your position has made.

I don’t get emotional so easily, however I prefer not to check the charts and my positions. I take the positions, set the stop loss and target and then I come back the next day.

5. I Do Not Add to My Bad Positions (Averaging Down)

Instead of trading and making money, some people always try to prove that they are right, or they try to break the others’ records. Therefore, when they take a position and it goes against them, they take more positions probably to hit the market turning point finally. However, in most cases the forex market keeps on following the same direction and these traders will lose all they have in their accounts. This is not trading. It is gambling.

A good trader is not someone who doubles his account every month. You can double or triple your account by averaging down if the market turns around finally and you close all your positions with profit. However, you will wipe out your account the next time that you repeat this method because the market is not supposed to turn around every day. Strong trends can be continued even for years. A good trader is someone who properly follows the markets strong movements and trends. That is the key secret.

6. I Do Not Over-Trade

Over-trading is another syndrome I see among novice Forex traders. Over-trading does not help you make more money. It causes you to lose your money faster. It is possible that you double your account within a short time through over-trading, but you will wipe out your account the next day, because you are not going to be lucky every day. If you trade based on luck, one day you win, and the other day you lose all you have already made.

7. I Do Not Risk Too Much Money

I am not greedy at all. I do not try to become multi millionaire and make millions of dollars every month. It is possible to make millions on the paper and with the demo account, but live trading is different.

I never open a big account to make my broker greedy. I trade with a small amount of money, raise it into some reasonable amount, and then withdraw most part of it and leave a small amount in my account again. I always do this.

I enjoy growing a small account. I do not like to have a million dollar account and make $50k every month, withdraw the profit and leave my capital there. This is too hard when you trade through retail brokers.

After several years of working and gaining experiences, my trading buddies and me came to this conclusion that we’d better to grow small accounts, instead of having a big account. This is much safer, and besides, it eliminates the harmful emotions, specially fear.

You can save your profit and turn it into a huge capital after a while. Then you trade through a bank account. This is what professional traders do. You have to be happy with a small account and small profit while you have to trade through the retail brokers.

8. I Do Not Compete with the Other Traders

In Forex trading, it is ridiculous to compete with the other traders, because any trader has a different style. Any trader looks at the market from a different angle, so traders can not compete with each other.

While a conservative trader makes only 100 pips profit per month, another trader makes 800 pips. Both of them are great, and one can never say which one is better, because both of them are disciplined enough to follow their own trading system and style, which is what a professional trader has to do.

I know myself as a good trader, and I do not try to compete with a friend who trades more than me and makes more money. We are both good, but just our trading style is different. Trading style has a direct relationship with personality. As everybody has a different personality, no one can compete with another trader in trading.

9. I Do Not Try to Make a Living Through Trading

This is the most important secret my mentor taught me the first day. You can’t make money through Forex or any other kind of trading when you HAVE TO make money. Trading is an investment opportunity to grow your wealth, not a good way to make a living. Learn more here: Trading Strategies Don’t Work If You Don’t Choose the Right Living Strategy

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47 thoughts on “I Am a Good Forex Trader; What Is My Secret?
  1. Oumid says:

    Hi, I have been reading your articles on bollinger bands and candlesticks including the doji articles. I completely understand how to set stop loss and where to enter but I am unsure as to what my profit should be in terms of where I set it. I want to ensure that I hit my profit wherein I do not set my profit too high that I make a loss before I make a profit. How would I go about this?

    • Kamel says:

      If you set a “reasonable” stop loss, then your target should be at least x1 of your stop loss size. If the trade setup is strong, then your target can be even x3 of the stop loss.

  2. Ayobami says:

    I do enjoy all your article, every bit of it has always been motivating and inspiring me to learn better. Thanks for helping me as a trader. May God bless you.

  3. Any says:

    Hi,
    What currency pairs do you analyse with this system?
    Thanks.

    • Kamel says:

      19 pairs plus gold.

      EURUSD, GBPUSD, USDCHF, USDJPY, GBPJPY, EURJPY, USDCAD, AUDUSD, NZDUSD, EURGBP, GBPAUD, GBPCAD, GBPCHF, EURAUD, EURCAD, CHFJPY, AUDJPY, CADJPY, AUDCAD, Gold.

  4. Vinod says:

    Dear sir , Kamel has really got the point what i was looking for. sir will u please tell me which time frame should we use for trading commodities.

  5. Joshua says:

    What is a healthy number of trades to place for an experienced trader after analysing 20 currency pair?

    • Kamel says:

      It is impossible to give an exact answer to this question. On some days I take no positions. Sometimes I take a few. I mean 1 to 3 positions.

  6. Vinod says:

    dear kamel you said that you take ur position after daily candelstics closed . what does this mean . we in india have different time schedule . which is better to trade in time period or our time period. kindly suggest

    • Kamel says:

      The best time for the daily candle close is 5pm EST. You should use the platforms that their daily candle closes at 5pm EST. The reason is that at that time all the markets, specially New York and London market are closed and the formed candle reflects both of these markets movements.

  7. kamen says:

    dear Kamel, could you explain better with some examples when you enter the market after the daily candle close and when you place a pending order ? For example, when you see an engulfing pattern you enter just after the daily close or you place a pending order ?

  8. Alejandro O, Bastida says:

    Chris and Kamel thanks for the inputs and guidance…….

  9. Zeeshan says:

    Stop-loss is a shit thing. In my experience, as every one knows history repeats itself, at least by not setting a SL you can wait for market retracement and can make your loss minimum as market reverses itself. But putting a SL, a definite thing that you can going to loose money. and what if a candlestick has a long shadow that touches you SL?..LOL..and then market goes into that direction for that you have set a TP..then what..to cry over split milk..Warren Buffet and other famous traders never used any Stop Loss in their entire career.So they should be loss all of their money,but they are billionaire……………….

    • Chris says:

      Sounds familiar. I heard this in a video by a so called millionaire:
      1. Set no stop loss, because Warren Buffet and Goldman Sachs also don’t set any stop loss.
      2. History doesn’t repeat itself.

      Are you sure that if you set no stop loss the price will turn around and you can get out with no loss? Those who wipe out their accounts think like this?

      Let’s say Warren Buffet and other famous traders set no stop loss. Does it have anything to do with the retail traders with a $1000 account? Can they trade like Warren Buffet? Do they know what Warren Buffet and his financial and investment consultants know?

      If you want to experience how trading without a stop loss can wipe out your account, then open a demo account and take positions without stop loss.

      If you like to see how history repeats itself, then open another demo account and trade without stop loss, after your first demo account got wiped out.

      Don’t believe anything you hear or read over the Internet.

      • Zeeshan says:

        I agree with you Chris Sir, I did not said that history does not repeat itself. Personally I think that there is a criteria for SL. If you are using 1 lot size or lower, then no need to use SL/TP, I use same strategy in my accounts. I did not said that you cant have any loss by putting no SL. I said that you can minimize your loss, but SL is a definite thing that you have to loss.In one of your blog you say that you hate technical indicators you do not have a valid point that where to set support or resistance or tp or sl… I am totally agreed with you on this.In other words. lets you out you SL 10 pips above your current buy/sell level and you have certain idea that market will go up/down.then what if a news come and market hit back your SL. while market trend changes and it goes to your TP side,where is your profit? No profit because your SL is hit and your oder is close.so you will open another position? while when we have price action strategy and some indicators like RSI/stochastic then we can have an idea that what is going to happen in market should I close my order or I have to wait, because I have no tp/sl……that’s what I want to say.. Please guide me. I will very thankful to you Sir

  10. Juhl says:

    Awesome! Thank you, I’ve lost sooo much money trying to find the “secret” to trading. Finding your site has been a Miracle!

  11. Peter Wagner says:

    Hi Chris
    Thanks for the continued support and repeat instruction.
    Would you please make an article on ‘What is Overtrading’?

    Using the LuckScout system while being disciplined in applying account risk %, I see that under normal market conditions it is almost impossible to ‘overtrade’. But under some market conditions it is possible that more trade setups can appear suddenly on one day after many days of no setups. 30 pairs may mean sometimes 6 setups appear. 6 setups means 12 positions (2 per setup.) (I do not think that as a novice I could manage that many BTW). At 2% each it is 24% of the account at risk – but the setups would be strong under the system and viable. I know that this scenario is hypothetical and that you only trade up 5 trades per month – but how does all this fit into the question of overtrading and the point “when the position is too-strong, I take it”? Sorry if I am unclear here.
    I have seen the term ‘overtrading’ mentioned many times in browsing the internet and in your articles, but I think I have not understood it fully yet.

    • Chris says:

      Hi Peter,

      You are clear enough.

      You are right. If we really follow our trading system and wait for too strong setups, we cannot overtrade. Overtrding happens when traders take weak setups and misuse their account leverage.

      When our trading system forms several strong positions at the same time, we can simply pick a couple of setups that look stronger. We can easily choose a proper position size, not to risk too much.

      • Venky says:

        Hello Chris/Peter,

        In the above discussion, it is mentioned that for a single trade setup 2 positions can be taken. (6 setups & 12 positions). I couldn’t understand it clearly.

        For a single trade setup, I believed only 1 position can be taken (either long or short depending on the trade setup). How is it possible to take 2 positions for a single trade setup?

        You mean either 2 long or 2 short positions? if so, logically aren’t they are same? what is the advantage of taking 2 positions in a single trade setup.

        Venky

  12. Nejc says:

    Hello Chris, i was wondering how many cca trades per month you open with candlestick pattern and Bollinger band strategy
    Sorry for my bad english.
    Regards Nejc

  13. Bob says:

    Kamel,

    I really enjoy your trading articles. I love the LuckScout web site. I know a lot of people ask you to post more articles about your method. I dont want to bother, but I hope you choose to go into depth about your method. Chris has provided so much information. So so many gems. I love what he has given to us. I would love to hear more about what you look for on a day to day basis. God bless all of you. I am so thankful for all of the knowledge you have shared!
    Bob

  14. TJ says:

    Very inspiring Kamel, this sounds like a prayer to my ears.
    I will put all those good words on my wall in order to make sure to remember when time comes, It will be in my daily routine to go through it.
    I feel privileged to have found, LuckScout.
    Many, many thanks to share your experience and your wisdom with us.

  15. Steve Edwards says:

    Very informative and eye opening…!!

    Thanks for your contribution Kamel..:)

  16. Valdas Ly says:

    Many, many thanks for priceless article!

    I wish you health and success, dear Chris and dear Kamel!

  17. John Dato says:

    Hi Chris,
    Firstly I would like to thank you and the team at LuckScout very much for what you are doing for us, especially for “newbies” like me and I am sure many others as well.

    Recently you had an article on how to move the charts candlestick one at a time for practicing Candlestics/B.B. Trading plan.

    I run my MT4 on an Apple computer and those instructions work for P.C. but not Apple. Can anyone in the LuckScout community have any tips on how to do this on Apple?
    My MacMT4 runs on Apple via something called “wine” and “wine server”,not sure what it is, but it works. I downloaded it free off the internet when searching “how to run MT4 on Apple Mac”

    Any advice would be greatly appreciated

    Again ,many thanks

    John

  18. muhaimin mahfudz says:

    perfect

  19. fawaz bamakrait says:

    thanks chris ,
    i’m personally so much happy with the strategy i have learn here .great results by using BB & CANDLES BREAKOUT,also with dbb and kamel as well .so thanks for that. it’s more then enough.

  20. Mei Shooker says:

    Hi Kemal

    I understand the importance of discipline as a trader, especially starting with a small account, but do you have a different trading system when big events approaching? (for example, Brexit and the US elections in the past or the coming elections in France and the Netherlands).

    What is the best way to profit when the market reacts drastically to the news? Should we still risk up to 2%? Should we still set a Stop Loss or follow the market live?

    Thanks!

    • LuckScout says:

      Hi Mei,

      We can still wait for the candlesticks to form the signals based on the big event and on the long time frames. Such events usually make spikes that we can easily trade and make a lot of profit from them while the dust is already settled and there is no risk. Chris has explained this clearly here:
      https://www.luckscout.com/ -spike-trading/

      Yes, you should always risk 2-3% or less.

  21. Joshua Chan says:

    Thanks for great articles Chris
    So many traders using EA indicators..to recognize candlestick pattern..maybe that can be used by me or other novice traders..because it is diffilcult to see what you see on the same chart..
    thanks

  22. Joshua Chan says:

    I agree with you Chris.

    Long time a go before this web change its name to luckscout I found EA DBB indicator pattern that made by your team who was a programmer do you remember?? Did the EA still existing? I can not find it In your new web.

  23. Maurice Parchment says:

    Great article, thanks a bunch for sharing 🙂

  24. Jennifer A. says:

    You say: “You can save your profit and turn it into a huge capital after a while. Then you trade through a bank account.”

    What do you mean by “trade through a bank account.” ?

    Thanks!

  25. pintu says:

    Dear kamel, how to download your indicator.