The following article is related to the videos I recently published on our YouTube Channel. Therefore, it is recommended to watch the video while you also refer to this article to read the explanations and screenshots. Also please don’t forget to Subscribe to Our YouTube Channel not to miss our next videos. They are vital for your success.
The monthly candlestick just closed yesterday and the new monthly candlestick opened. It is the best time to analyze the monthly time frame of different markets to find the long-term directions. If you have been following us, you know that our Forex trading strategy is so strong and profitable.
Indeed, it is not just a Forex trading strategy. It the science of technical analysis and candlestick patterns and signals that can be applied to all markets. Those who follow us know that we analyze all markets, from currencies to stocks, metals and cryptocurrencies.
However, something that has made our trading strategy so profitable is not just the strategy itself. It is our discipline in following the longer time frames and taking the strongest trade setups that has made our trading strategy so profitable, whereas there are so many others who always lose using the same techniques and tools. Many of them can talk about a candlestick pattern for several hours. But they still lose. Why? Because when it comes to trading, picking the trade setups and following what they know, they fail and act like a kid. They can’t control their emotions, and so what they know can’t do anything for them. I strongly recommend you to read the below articles and watch the related videos:
- Still Losing in Forex?
- Become a Profitable Forex Trader in 5 Easy Steps
- Make Your First $100,000 Trading Forex
Before I analyze the markets, I want you to see the account I am using to record my videos since July 25th 2020 that I have started uploading videos to LuckScout’s YouTube Channel.
The account that I am using for my videos is a demo account. Some of you ask about it and they say they want to see the positions that I take. I don’t show my live account(s) balance and pen positions and also the positions that I have already taken (Account History). I think it is illegal to do that but even if it is not, I don’t like to show my live accounts. But I have opened a demo account and I am using it since I have started uploading videos on LuckScout’s YouTube Channel but since I have started recording these videos, I have taken all the trade setups that I have reported with this demo account. It is still a valid demo account. I hope they don’t cancel it, so that I can keep taking positions with this demo account and I won’t have to open a new one, however I want you to see this account and see what positions that I have taken and how the account balance is and what the account has been doing so far.
The following is the demo account that I use for my videos and for presentations it is not my live account, but I take exactly the same positions with my live account but I don’t want to show my live
account positions and also balance in these videos that i’m sharing with public, and I think it is illegal to do that. I’m not sure if it is illegal but even if it is not, I don’t want to show my real accounts and also the positions that I have, however this is a demo account that I use for my videos for the presentations that I have in my videos and any positions and any trade setups that I show in my videos, I take it with this demo account as well.
As you can see on the below screenshot, if you refer to my previous videos, you can see that I have reported the Amazon’s long trade setup that you can see below, and so I took two positions with Amazon last week that are doing great, and also I talked about gold and the long trade setup that it had formed after breaking above a resistance level on the weekly chart, and then retesting of the broken resistance level that is now working as a strong support level, so I took a position when the market the gold market was retesting the broken resistance level last week. You can see my position and my stop loss. As you can see I am in profit for over $7000:
And since I have started recording these videos that you see on LuckScout’s YouTube Channel recently since July 25th 2020, I have been using this account for demonstration and also presentation of the trade setups and my chart analysis and the followings are the other positions that I have taken. One of them was EUR/USD. The other one was USD/CHF and I also took another position with gold last week, but I closed it because I didn’t want to handle two positions at the same time, not to take too much risk. Although it is a demo account, I follow all the rules that I have in my trading and I treat this account exactly as a live account. It doesn’t matter to me whether it is a demo account or a live account I do exactly the same as it was a real $100,000 account. It doesn’t make any difference for me.
After several years of market analysis and trading, now a demo account is exactly the same as a live account for me. I follow the same rules, discipline, and the same trading strategies in both accounts. This is the level that you have to reach too because when you reach to a level that you can trade with a live account and real money exactly the same way that you trade with a demo account, and you can repeat your success that you have been able to repeat with the demo account (you can repeat it with your live account), that means you are now, most probably, a consistently profitable and professional trader, and if you can repeat your success with your live account over and over for several months and at least for two years, and you make money consistently with
your live account, then I can say that you are a consistently profitable trader.
It doesn’t matter how much profit you make even as low as 0.5% or 1% per month. If you can repeat it consistently every month, at least for two years, it means you are a professional and consistently profitable trader.
As you see with this account (the screenshot brlow) that I opened for the videos that I am publishing on LuckScout’s YouTube Channel during the past month since July 25th 2020, I have made about 2.5% profit already and currently I have some open positions (the above screenshot) that have made me about over 7% profit on this account. If I close all these positions right now
I will be in profit for the past month for 9% for the past 30 days which is great. I could make a lot more, if instead of taking a one lot position with my currency positions, I would take 2 or 10 lots positions because it is a $100,000 account and it is possible to do this. Many traders are used to open, for example, a $10K or a $5K account with the leverage of 500:1 and then they take ten lots positions with such an account. But even with a $100,000 account, I took only one lot position with currencies. For Amazon, it is impossible to take a one lot position. The minimum position that you can take is 10 lots because it is a stock and it is different from currencies.
So you see that my positions are small and I have made 9% profit so far. If I wanted to take a two lots position, which is not a big deal with such a $100,000 account, now my profit would be 16% and if took 10 lots positions, now I had almost doubled the account and the profit was 80%, but this is wrong. I never do it even with the demo account. This is wrong. You must take a proper risk. In any positions that you take you should only risk maximum 2-3% of your capital, and this is what I do with any account demo or live accounts, with any size. I calculate the risk and I only
take 3% risk in every position:
Regarding this losing position you see above, I was recording a video and was explaining about setting buyer stop orders in a video and I use AUD/CAD chart to set a buy pending order or buy a stop order, but then I focused on the video and preparing it to upload to YouTube, and so I forgot to cancel the my pending order. It triggered the stop loss the next day. Usually I don’t take these kinds of positions at all because I already had a position with EUR/USD and as the direction was the same and these markers are strongly correlated to each other so I am not used to take positions with correlated currency pairs, but this was just for training purposes. I had to cancel and delete it once the video was done, but I forgot to do that and so it caused me to have a losing position on this account.
I’m not saying that I never lose. It sometimes happens, but as I am so disciplined and I only take the strongest trade setups on the longer time frames, and I choose a proper stop-loss, not a too tight or too wide stop-loss orders. I enter the markets only when I am 100% sure that I am taking the right direction. It rarely happens to me that I lose in any positions. I also don’t over trade. It doesn’t matter to me, if I don’t take any positions for several weeks or several months. I wait for the best and the strongest trade setups. So specially during the past several years, it hasn’t really happened to me that I lose in a position. Therefore, that losing position in the above account was supposed to be just an example, and as I said I was recording a video and I had to cancel the pending order which was something that I forgot to do, and then the market triggered the stop loss, otherwise all the positions that I took would be positive.
This means that we have a profitable Forex trading strategy that we have made even more profitable with our discipline.
Forex trading never tells you how much money you are going to make for the month, because as a trader, you should only wait for the markets to form trade setups for you, and it is not clear how many good and strong trade setups you are going to have every month. It is possible that the markets don’t form any trade setups for several weeks or even months. They move strongly, but they don’t give you any chance to enter. Then what should you do, if you want to make a living through Forex trading and you have to makes, for example $10,000 per month???
It makes you over trade to make the money you need, and so you will lose. After having several losing positions in a row, you will lose your confidence and you won’t be able to trade anymore. Fear takes the control and doesn’t allow you to click the buy/sell buttons.
So here in this case, it is not your Forex treading strategy that doesn’t work and is not profitable. It is you who has made a mess with your Forex or stock trading journey.
Forex or stock trading are not full time jobs or businesses. You should not use them to make a living. They are investment opportunities to increase your wealth. They are great opportunities to use a portion of your income to make a lot more money.
So it is your behavior that can turn a profitable Forex trading strategy into a nightmare.
For our monthly analysis, please click on each of the links below to see the video analysis: