0:00 all right welcome to the video this is trading for beginners or trading for dummies as the thumbnail says and the goal of this video is to get you from struggling or zero profits or complete beginner right through to consistently profitable Trader which means it's a comp like complete and comprehensive program all in itself which means it's going to be a long video but my goal is to get you to consistently profitable Trader after watching this video and that's a bold claim but this is something I've been meaning to put out for years and years now because there is so much crap out there and there's so many Educators and fake gurus and scams trying to take your money and not providing any value in return so I had enough of all of that and I thought I'm just going to give everything away for free to the trading Community once and
0:46 for all and I'm going to invite you into my trading office as I walk you through every component you're going to need directionally correct so that you get there as quickly as possible without all the fluff without all the Showmanship and by the end of this program you are going to be the most confident and competent Trader that you could possibly dream of being so if that sounds good to you I encourage you to bookmark this video put it into your favorite subscribe to the channel if you want to and over the sections of this video I'm going to be covering what your expectation should be what you need in terms of the gear the basics how to read price finding your way around a chart understanding what Forex or trading actually is and how to navigate the markets I'm going to teach you how to read price I'm going to teach you how to identify patterns that happen frequently
1:32 in the market and then I'm going to teach you how to build systems out of those patterns and then how to go and test those patterns and then how to go and trade them live I'm going to cover everything from Brokers to gear to platforms to price to markets to everything by the end of this video there's not going to be anything that you're going to need other than to go and practice and become better and better so why am I doing this well some of you might know me some of you might not know me some of you might be subscribed to my channel and over the years I've built a phenomenal community in the trading community and the reason for that is through transparency and vulnerability of sharing my own trading insights my money isn't made from education my money comes from investing my portfolio and making my money work for me since the age of 22 I've been
2:19 investing my money into various Investments buying businesses buying stocks putting them into index funds and ETFs and REITs and speculating and becoming a Trader and basically using my money and putting it to work in a way that allows me to grow it as quickly as possible that provides me with an income and in doing so I became completely financially free by the age of 29 now at the age of 29 when I became financially free no one knew who I was and after seeing all the crap out there online about trading I decided to just let everyone watch me trade let everyone see how a real Trader goes about their day if I was going to be doing it anyway I might as well share it with you guys and that's exactly what I did and in doing so over the years is I've become recognized as one of the most transparent and generous traders in the
3:04 trading education space I've become very close friends with some of the best trading prop firm owners in the world some of the most reputable trading psychologists in the world and I've spoken on some of the most respected trading stages across the globe as well I started sharing my trading routine with the trading Community almost 10 years ago now and in this video I want to combine it and compress it all down so that you walk away feeling as if you've got more value from this one video than you have searching the internet for months and months and months maybe even years so why am I giving a completely comprehensive course away for free well here's the truth over the years there's been many scammers set up accounts there's hundreds of fake accounts of me and what they're doing is they're contacting people trying to scam their money and I don't want people to lose their money if you're going to
3:50 become a good Trader the whole point is that you build wealth and keep money and not blow it and give it away and lose it right you want to build wealth and that's my goal as well so I don't want you to lose your money so how what could be the best move that I could make in order to eliminate those scams well just share my best information so that everyone comes here and then there's no question of what's the real deal and not only that you'll learn so much in this lesson that you won't need to go and give your money and invest with other people because you'll be empowered and you'll be able to do it yourself I've got a much bigger cause to help people and Empower people around their finances and become financially free I believe that when we're free and able to focus on our most meaningful work we become better human beings so my goal is to get
4:37 that message out to as many people as possible and I hope after you've watched this video you're going to get so much value from it you're going to be feel compelled to share this with everyone you know and help me achieve my goals sound fair all right well if that sounds good we're going to get stuck straight in what I would say is make sure you bookmark the video again second of all get a method of taking notes okay commit to this program this is something you're going to want to take seriously don't treat it as another YouTube video this is going to be your textbook for learning how to trade this is going to be your curriculum this is going to be your qualification so make sure you set up some time aside in your diary to keep coming back and revisiting this thing consistently until you get it all complete okay are you ready let's get stuck in all right so hopefully you've
5:22 got a method of taking notes now we're gonna get stuck in but before we get stuck into all of the technical stuff which I I'm going to do in a way that doesn't overwhelm you or confuse you I want to give you some expectations because when you've been clicking on this video before you clicked on this video one of the questions or two of the questions in your head was how much do I need to trade how long is it going to take me to learn to trade you know what you and and some other expectations that are unclear such as what does it involve you know what do I need what am I the Right fit for it so I want to cover some of that stuff off and this is really important because I want to show you um a way to understand and how long it's going to take you how to know how much money you're going to need okay and that's really going to be motivating for
6:08 you because when you see the truth about this stuff you can actually forget about you can forget about it and put it to the side and it will give you the motivation to focus on the actual learning if you're trying to do it in a way where you're really pressurized to make money right now or you're really pressurized to make it work it's going to have an effect on your mental state in fact there was a survey done in Southern India where they tested 56 cities in southern India and they tested the farmers IQs and when there was a drought and there was no no trade and no market and it was all low economy you know the economy wasn't very great their IQ dropped by 30 points and when it raised and it was booming and trade was
6:53 great their R their IQ raised by 30 points which means this when you're in a level of poverty okay okay meaning that you can't quite afford your own personal Comforts your IQ drops now the thing with trading you're going to need to be switched on as you're learning you're going to need to be full focused as you're learning to trade if you've got something eating away at your animal brain uh telling you oh we can't afford to pay the bills this month then that's not going to be the best position for you to learn to trade but by knowing these numbers is going to either give you the the chance to go wow you know that's I can definitely do this or you're going to go well maybe I'll come back to this later so it's really important you understand this stuff so the first really important thing you want to know is how much money do I need
7:38 to get to where I need to be in my trading like what's going to make it worth it and the first answer to that is trading is one of the most powerful ways to accelerate your wealth if you can be consistently profitable because the returns that you get on trading as it's high speculation the returns are greater the more you use your skill to grow your money the greater the returns so the question is well if you're going to put it in a bank you know the bank are going to pay you 1% a year if you're lucky probably 2% at the moment so then it comes down to well do I actually want to trade do I actually want to learn to trade so it my first piece of advice is you're going to have to want to trade like you're going to have to have an interest in it you're going to have to really enjoy looking at the markets because if you don't it's probably not
8:24 going to be worth it for you and the reason I say that is cuz you can go and get better returns focusing on something you really enjoy and love and then or give your money to someone else to look after uh then you go and have to learn something that you really don't want to learn to then grow your money right so that's the first consideration is if I put it in a bank I'm going to get nothing if I learn to trade I'm going to get great returns if I can Master this right so that then comes down to do I actually want to learn to trade but the first starting point I like to tell people is think of a figure that you need to cover with your trading returns so it might be your full income you know if you're earning 2,000 2,500 5,000 a month or whatever that figure might be write that figure down um whatever that might be so you might want to cover your
9:09 whole income your monthly income which might be 2 and a half Grand or you might just want to like bring in an additional £500 a month or something like that right so we'll go with that example for now we'll just say 500 could be dollars pound whatever um and what you're going to do just to kind of get some idea of what sort of returns you will get or or how you can start to approximate that figure is we can play around with some figures so all we need to do is take that figure whatever that figure is and next to that I'm going to write 2% 4% 6% okay and all you do is you divide this figure by 0.2 or 04 or 0. six and what that's going to give us
9:55 is some returns some monthly returns so if I divide 500 by 2% I'm going to get 25,000 if I divide 500 by 4% I'm going to get 12,500 if I divide it by 6% I'm going to get 8,333 what does that mean what does this figure mean well this is the amount that you would need in your account if you were trading it and getting 2% returns per month based on 500 and you was trading you know 25 Grand a month and you was getting 2% per month that would gener generate £500 or dollars if you was had a 122 Grand account and you was getting 4% returns consistently per month on average over a long period of time that would you know that would give you 500 a month same goes for six 6% if
10:43 you was trading 8,333 in your account and you was doing 6% on average over a long period of time that would approximate £500 or dollars per month make sense so have a play around with some figures and put them against some percentages so that you can start to see ah right okay I don't need millions in my account to generate what I need actually I need this much or this much and I need this percentage return now you're not going to know your percentage return right now on average that I see the best Traders get between two and 6% it it varies and uh I've worked with prop firm owners and prop prop firm seven figer Traders on Prop desks and I've seen them get anything from 2% to 6% and yes there's going to
11:29 be times where you're getting 10% you might even get a 20% month but the the point is this you need to focus on returns over a long period of time and I'll talk about that later on in the program now the other thing to pay attention to here is there's going to be other influences like inflation like your lifestyle costs you know your performance all this kind of stuff getting better as a Trader so it's a good place to start but you're also going to want to factor in you're going to want to leave some money in the trading account so that you can grow it and have that uh compounding interest in the account as well right so there's a few other factors that will play into this but this is a great place to start if you're a beginner to visualize how much you'll need to generate a certain return and really the purpose of this exercise is linking the relationship between the two
12:16 now this brings me on to the next point which is time how long will it take me to learn to trade now I can tell you this usually it takes between 12 and 18 months to become consistently profitable as a Trader that's what I've seen working with thousands of Traders over you know many many years and uh I've seen that be the the common kind of Sweet Spot does that mean it's going to take you that long to learn how to trade no it can take 6 months to really learn this and master it in your mind it can take a little bit less or it might take a little bit longer but 6 months to learn and then why does it why does it take 18 months to become consistently pritable well here's why imagine this line here is 18 months okay and about here is 12 months and this is not months
13:03 right in this period here not to six you might learn okay in this period here you're going to want to go out and do some demo trading and what we call paper trading so once you've learned you're going to want to go and put open a demo account which I'm going to show you how to do and you're going to want to be doing some testing okay or some demo trading and then the reason this period is here is because this totals 12 months now why do we give a 12mon period there well the thing is this when we're looking at the profits that we want to return we want to know certain in our mind that we're we're capable of generating those returns right so it's best to take a average 12 Monon period of your trading
13:50 performance before you commit to going well I'm going to give up my weekend job or I'm going to you know give up my job entirely you're going to want to give it a 12- month um period of trading how you've learned how to trade to prove to yourself that you can actually demonstrate those returns over a 12-month period And the reason a 12-month period is good is because you can see all the different seasons all the different holidays the different news events the different inconsistencies within the trading year and then you can take the average performance over a 12-month period and say right I can confidently generate £500 per month based on this return and this is my performance and you have Supreme confidence to go into the following year with a live account so 6
14:37 months to learn 12 months 6 to 12 months to do some real testing tweaking going live and then 18 months to really kind of fine tune and get the confidence to become a consistently profitable Trader and remember you're learning a skill like anything if you went to learn the guitar or the piano or learn to play golf it's going to take a bit of a bit of time and this is another reason why you actually have to have an interest in this and you have to want to make this work because when you think about it the payoff in such a short period of time I mean even if it took you three years that is a blip in your life right uh as to what this can do to to transform your life to get you to your financial goals so I hope that makes sense the next thing I want to touch on is this a lot of Traders they overestimate what's achievable in a very short period of
15:24 time so I've just told you 6 months 12 months you'll be able to trade you know 18 months you'll really start to nail it well that's not a long time but a lot of Traders because of the way it's advertised out there and because of these idiots out there telling you it's easy and they're like telling you that anyone can do it well in your mind you're thinking oh you know this should take a week I could I could go on a two-day trading course which people are selling right and learn to trade in two days well that's rubbish but what happens is they have this unrealistic expectation and they overestimate what's achievable in a very short period of time and then when they come on you know and work with me or you know they get the truth they go oh this is a bit harder than I thought and then they underestimate what's achievable in a you
16:11 know 3 to 5e period which is you know magical really how it can transform your life so I don't want you to be overestimating I don't want you to be underestimating I just want you to commit to this process and I promise you that if you apply what you learn in here between you know in the next 12 to 18 months your life is going to look a lot different when it comes to managing your finances all right the next thing I want to touch on is consistency so if you want to be a consistently profitable Trader the first thing you need to master is being consistent in your trading okay sounds obvious but a lot of people neglect that and they're all over the place jumping from system to system or doing it at different times different time frames and uh they're not consistent think about this when can you consistently dedicate your time to
16:57 learning to trade and dedicate your time to trading is there an hour slot on a Monday morning is there an hour slot on a Saturday is can you do all Saturday is there three-hour slot on a Sunday what you don't want to do is start as you know you want to start as you want mean to go on so what you don't want to do is start trying to do it when you're about to go into a meeting or kids got to do the school run take the bins out or whatever it might be right and you're kind of half in half out you want to allocate blocks of time into your diary so pull up your diary and say right I can do Monday between 800 and 9 I can do Thursday 10:00 p.m. to 11:00 p.m. and I could do a couple of hours on a Sunday and maybe a Saturday afternoon or something like that and once you've got these times blocked into your calendar make that your time even if you're just
17:43 learning at this stage not just looking at trades or taking trades actually um learning how to trade as well because if you can start with that then you can just base everything off of that and when we go forward you can build a trading system that works around that that trading time because if you try and do it outside of those times it's going to make it hard for you think about if you was trying to lose weight and you know you didn't really like running and you didn't like certain foods and then you go to a fitness instructor and they say right you got to run and you got to eat these Foods well that's not going to work for you is it and it's not necessary either quite frankly you can lose weight Building A system that works to your wants and needs and your likes so we'll do the same with the trading so consistency is key and I've got a rule of fun um people say well how long long
18:28 should I spend uh looking at the chart or how long should I spend dedicated to learning if you can get an hour a day on average over the week that's great so if you can get three hours on a Sunday and that averages out you know three across the week well then how can you make up another 4 hours or how can you make up another the more you do the better obviously but an hour a week an hour a day uh what I find it builds momentum and you get motivated because you make progress quicker uh you're treating it more seriously you're putting some time an effort into it so you're committed to it so you're just treating it more as a professional and if you can get an hour a day on average across the week which is 7 hours per week great if you can do less don't worry but make sure it's consistent if you can do more great okay
19:14 so that just leads us on just before we get stuck into learning all of the great technical stuff uh I just want to say one more thing and that's really account around accountability when you're learning to trade there's going to be lots of benefits that you didn't see were there originally so you want to trade primarily to make more money right but there's going to be other benefits like you're going to think more objectively you're going to understand people better you're going to lose fomo and fear of missing out you're going to uh you know focus on long-term success rather than short-term quick wins so there's all of these kind of um benefits these hidden benefits to learning to trade that you're going to benefit from not just making money which is amazing so it's a great place to be it's a great to do but it's very lonely not many
20:01 people you know learn to trade not many people you know are Traders and there's not many people you can talk about about trading um without them thinking it's some kind of scam or you're kind of crazy Gambler for the reasons I just mentioned previously right the way it's advertised and all the scams out there and all the rest of it so what I would do is I would counter that I would get people on board by telling them what you're doing okay and don't be afraid to tell them I'm learning to be a professional Trader if he was learning a guitar you'd say I'm learning to be a professional guitarist and and they wouldn't laugh at you right but you've put it out there so people might laugh smirk and think you're crazy but just go with it and say look if I don't get anywhere in 18 months two years on this then you can you know ridicule me all
20:47 you like but it's probably down to me just figuring out it wasn't for me anyway but just tell them open up tell your family about tell your kids tell your wife tell your husband tell your partner tell your family tell your colleag colleagues tell everyone because it's not a taboo anymore it's something that you're doing you're working on you're becoming a professional Trader and you want to open up about that you want to be you know you want to be open about that and you want to be proud of that so let everyone know get everyone on board and what it also does is it allows them to respect your learning time when you've blocked it into your calendar that's your time dedicated to working on your future you have to put yourself first in this case because if you don't get to where you want to be what good are you you to helping other people you know you're not really living the life that you really want otherwise
21:34 you wouldn't be watching this video you know that you can do this you you're really interested in this and you absolutely can do this you need to give you know give yourself permission to put yourself first to learn this stuff if it's something you really want to do and then you can serve your family and your friends and your colleagues even better and lastly on that point I want to say just get around other Traders professional Traders stay away from forums and those kind of you know those kind of Discord groups that are like really spammy and everyone's got an opinion uh get around some real professional traders who are all working on the same goal like-minded people and would invite you into my group which is below you can click the link in the description of this video to join my group of professional Traders completely free we're all working on becoming better Traders including myself being
22:20 around other Traders and like-minded people who are working on the same goal gives you that belief transference that confidence and that momentum to continue on your trading Journey Journey all right with that said we're going to get stuck into learning the the cool stuff now so hope you got value so far grab a pen and paper or you might want to pause it and come back when you're ready to start learning all of the technical stuff let's get stuck in all right so before we start digging into finding some of these opportunities and being able to actually Place trades we need to know what we're looking at we need to read the the markets we need to read the charts we need to understand this language and really that starts with understanding price movement now I already mentioned that those candlesticks or bars those indications on that chart um are the the
23:08 movement in price within a certain time period so what I want to show you now is the anatomy of each of those bars or candlesticks and how we read them and what each thing means uh when we're looking at Price relative to time so each one of these candlesticks in front of you here um they look very similar to the ones that on the chart uh but you're probably thinking well some of them were green some of them were red well let's just let's just break that down a little bit the first thing you need to understand is there's four components of a Candlestick okay and that is the open price the close price the high of the session and the low of the session cuz remember one Candlestick can be an hour it can be a day it can be a month it can
23:54 be 15 minutes whatever it's always going to have those four components in other words what that means is let's just say that these candlesticks here in front of you are the hourly candles which means on bang on the hour oock We're going to have the open of a new candle and the close of the previous candle so where is the open on this candle well remember you saw red and green candles on the chart that I explained just that I showed you guys just now um a green candle means what what a green candle means is is that we closed at the end of the hour higher than we opened and when you see a red candle conventionally it doesn't matter what color they are people use different colors for different candles and conventionally
24:39 they were um white and black or they were Hollow and white so but over time usually green is for bullish or up candles and red is for bearish or Down Candles meaning when it's green we close at a higher price than we opened and when it's red we close at a lower price than it open so let's just start by coloring in these candles here so I'm going to color this one here green okay so this is our up candle this means that price closed higher than it opened and we'll have a a red down candle as well and meaning that price closed or the candle closed lower than at the price it opened so where are the how do we identify where it opened and where it closed well
25:25 let's start there so in a green candle we got the four components okay we got this we got this we've got this and we've got this now you probably guessed this will be the open price okay so whatever price this was on the chart uh remember over on the right hand axis we had the price price points down here and we had 13055 that price point will be the price at which that candle opened okay then this will be where the candle closed and then obviously in between that this would be the high of the session meaning the highest price that the market pushed up to during that candle and this would
26:10 be the low and what we're looking at in this one body of a candle is a story of what happened during that hour we can see how high price pushed up how low price pushed down where the Candlestick opened on the hour and where it closed on the hour make sense now on their book on the bearish candle we've got exactly the same points except remember I said price closes lower than it opens so in this case we've got the open here because it opens and then it pushes up to the high or it pushes down to the low and then it closes lower than it opens so this is the close of the candle okay so in actual reality what you'll see in in a real case scenario you wouldn't see this very often unless there was some
26:57 kind of Gap what you would normally see is a green candle like this okay so this would be green let's just color this green and because price has closed up higher you then see the start of the red candle or another green candle whatever color candle comes next uh let's just say this is a green candle for instance right and then you might see obviously we've closed here and opened here so close open and then close open then you might see a red candle and this would be red and that means that we opened and then we pushed down a little bit and close down here make sense hope that makes sense so far now I just want to give you
27:42 an example of how this works on bars as well just so just so you're familiar and you can really get it in your head so let's take a look at bars instead of candles so with bars or what they're commonly referenced to is o h LC bars which is exactly what we've just been speaking about the four components which is open high low close are exactly like a candle in fact you can almost imagine that there's a Candlestick right here okay imagine a Candlestick right here right so imagine these are a candle stick like this we've got exactly the same thing it just looks different that's all so this is the open this is the close this is the this is the close this is the high and this is the low and the same high High open close low okay
28:32 because we open and then we we close higher on the green and then we open and then we close lower on the red so one's red one's green and that's exactly um the same as a Candlestick they just look slightly different it comes down to personal preference these are obviously um preferred by some Traders and candlesticks preferred by others it really doesn't matter whatever takes your fancy I used to use these in my trading when I started Trading all those many years ago and then I transitioned over to candlesticks and then I just became more comfortable and familiar with candlesticks um and it and that's it so it really doesn't matter but hopefully you understand how the anatomy of a Candlestick what I want to talk about now is certain patterns and and kind of
29:17 components of the Candlestick that you'll need to understand in order to develop an edge as a profitable Trader so let's take a look at those all right so what I want to talk about now are two main components of the Candlestick that are going to really give you an edge as a Trader the first one is the close okay so where the close happens and the second thing is this actual Wick what we call the candle wick um which is either the wick to the upside or the wick to the downside and I'll tell you why those are important so you see this candle here this is a relatively um you know normal looking candle a strong uh either buy buy candle a strong bullish candle or a strong bearish candle meaning that
30:03 we've either opened here and closed here or we've opened here and closed here and you know we've closed predominantly lower or we've closed predominantly higher than we opened depending on what color the candle is which You Now understand now what happens if the Candlestick looks like this which it does you know this is very common to see a Candlestick looks like this meaning that let's just say this is is well it doesn't really matter what color it is but let's just say this is a red candle okay so when we start to look at these candles we can start to form stories about what happened using the close and the wick so the close on the opens here right so this is the open this is the close but look what's actually happened during this session so the close is very
30:50 very low the close in fact is the low so this is the close and the low even if you had a little Wick here that would be the low it's still very low close make sense which indicates that it is a it's got strong selling pressure the market is in a strong selling pressure uh scenario now what we can also see where the close tells us who won the battle so in this CL case it was the sellers we can also look at the wick which also tells us a story of what happened during the session so imagine like a game of tug OFW imagine during let's just draw on this candle here for instance let's just say you know we opened here so this was the open we closed here but during
31:37 the session the candle actually pushed up then down then up then down then up then down okay and then we closed here make sense we closed here sorry so there's this kind of tug of war going on buyers trying to win sellers trying to win and then in this case we close out kind of roughly in the middle but in this situation here what's actually happened is we've opened here the buyers have tried to push this market right up okay this could be you know 100 Pips it could be 20 Pips it could be 50 Pips in price and then been rejected and slapped right back down um not only back down to here but right back down to here and then we've closed off the session we've closed the hour which shows us that there's a lot of
32:22 strong selling pressure during this session so now no longer are we just looking at red and green candles and the open and close we're now forming a story of what's been happening during each of those sessions make sense let's take another look at another example let's just say for instance that we've got a Candlestick that looks like this and in this case this is going to be a green candle now these can be green or red to be considered um strong buying or selling candles because of where the close is and because of how that Wick looks and how we can see what's actually happening during price movement uh well in this case we've opened here the the Bears or the sellers have tried to push all the way down and then been rejected
33:09 and then we've closed right here right so in this case what's likely to happen next is we're likely to see a continuation of an upward moving Market all right now don't worry if you're if you're getting a little bit lost I'm going to C I'm going to continue this on with candlesticks when I go through the components of a successful strategy and and a successful Edge but for now I just want you to understand the anatomy and the open the high the low the close and then how to look at different components being where the where the candle closed and uh and and the the wick and see that rejection and form a story be able to form a story of what's likely to happen next okay obviously what's likely to happen next isn't going to be enough for
33:55 you to go and place your money into a trade we're going to want to form uh you know some real confident bias with some backed up uh technical analysis to to Really inform that you know um put some weight behind that decision um but I'm going to show you how to do that but for now I just want you to understand you know the different shapes of candles um you could also see a candle that looks like this okay so where the low is the open and the high is the close and there's no Wicks which means if it's a if it's a green candle that is a strong buying candle and the market is in strong momentum to the upside same goes for a bearish candle if we see the open and the high here and the close and the
34:41 low here and this is a red candle then that is a strong selling candle which is likely to see the market continue down following that the close of that candle make sense so there's all these nice little nuances and nice little stories we can form of price when you get familiar with reading these candlesticks so just wanted to touch on that before we move in to the other technical components um if you've got any questions at this point please fire them below and uh and I'll be sure to answer those and if you're getting value from this remember to share this around and make sure that you're you know liking the video and sharing it to people that you think will find valuable as well all right let's get stuck into then the six main components of a successful Trading
35:27 strategy and a trading Edge okay so first things first we want to be able to identify the overall Market condition now you might have heard terms as bullish bearish um and that's really what we're looking at we're looking at whether we're looking at an overall upward Market or an overall downward Market or it's just moving sideways and there's four different conditions that I want you to be aware of okay so the first one is bullish and bullish is an upward Market where the market is moving up from bottom left to top right and that's what we call an upward trending Market or a bullish Market the other one is obviously the opposite where we're looking at a bearish market where we're going from top left to bottom right and
36:13 we're descending down and that is a a downward moving Market a bearish market okay then we've got a ranging Market which kind of moves sideways like this okay and that's where the Market's not either bullish or bearish and it's just moving sideways and then we've got like a choppy indecisive Market that's very erratic and it kind of it moves and breaks structure and it doesn't look very nice and it's very choppy and when it's indecisive like that I recommend that you stay away uh from the market because when we're in those types of environments then we don't really have an edge okay so we're looking at a bullish Market a bearish market or a ranging market and if it's choppy and indecisive and not sure then we stay out
36:59 those are really the four main conditions I want you to be aware of now obviously I've just drawn these out and it all looks lovely when you actually go into the markets let's take a look at the charts right now when you actually go out to the charts it looks you know it can look a little bit more ugly but ultimately what we're looking for is the market condition we're identifying whether it's a bullish Market a bearish market a ranging Market or a choppy indecisive market and you can see this is the dollar Yen okay and this is a chart of the dollar Yen and you can see that in this instance if I just bring on my drawing tools here you can see that we are actually going from bottom left to top right and this is what we would call a bullish Market an upward trending Market let's take another look now let's
37:46 take a look at another example in the other direction okay so in this instance we've got the pound dollar and in this case we are trending downwards we've got top left to bottom right and the condition is bearish in this market okay so this is an example of when the market was ranging so if we bring on our tool here and go at the top and the bottom you can see we've got these nice ranges uh where price action is is bouncing off of the highs and the lows and then finally let's just take a look at some examples with a choppy indecisive market and you can see here that price is very very choppy it's breaking up and breaking down and you know it's it's all over the place so this is really really choppy indecisive uh scenario so we want to we want to avoid those as much as possible okay so now we understand
38:33 identifying the market condition the next step is to identify the market phase so let's take a look at what I mean by that okay so we've in this instance on the dollar Yen we've got a bullish Market condition we've got an upward trending market so the next thing you want to look at is the phase now you can see here we've had this upward phase okay and that's what we call phase one or the Run Okay the extend extension and then we've had this phase here which is the pullback right and then we've had the next run up and then we've had a pullback and then we've had a run up and then we've had a pullback and each of these uh phases provides different opportunities depending on what we're looking for as a Trader whether we're looking to jump on the trend or we're
39:20 looking to short the reversal or the you know the the counter move if you like to the trend and there's many ways you know there's different different Traders can trade different ways and we'll talk about strategy development later but these are the phases so we've got a run a pullback a run a pullback a run a pullback and a run is the extension in the direction of the trend and the pullback is the retracement the outside return the the um correction if you like the momentary cor correction before we continue to the upside and of course in a bearish example it would be this in an opposite so let's take a look at that quickly Okay so in our pound dollar example here you can see we got phase one phase two phase three you know downward run pullback extension pullback
40:08 extension pullback okay so the run and the pullback you need to identify what stage the Market's in right now so first of all we've got the market condition bullish or bearish or in a Range if we're bullish or bearish where are we what what phase are we in are we in the Run phase or the pullback phase and the reason this is important is because you wouldn't want if we were on a bullish chart for example and we wanted and we had a bias that the market was going to go up what we don't want to do is buy in the middle of these runs that's what rookies do that's what rookie Traders do they buy in and they're in too late and then the market starts to turn back and then they you know they they lose their they get fearful and then they close the position off at no profits what we want
40:54 to do is identify the pullback and then look to get long then look to buy the market so we get the best possible price now on that topic you're never ever going to catch the bottoms every time and sell at the top anyone telling you you should do that it's ridiculous you know I've never met anyone that's accurately been able to do that over a long period of time consistently ever so don't worry about that but our job as a Trader is to get in the best prices possible and then sell at the best price possible okay so now we've identified our condition and we can identify our phases you can see in this in since we're in the pullback phase and in a bullish Trend that's good because we we could potentially get involved with some uh some trading opportunities now but that's not enough what I want you to do now is understand the power of support
41:40 and resistance okay so this is another technical indicator a technical um skill that you can develop and train your eye to identify that will then add even more weight to your case for entry into a trade so let's just take a look at what I mean by that if I just bring on my squiggle tool here you can see that where we've pulled down to here okay in this pullback you can see if I draw a straight line across if I can draw a straight line you can see that previous resistance is whenever we hit something like a ceiling we refer to it as resistance and whenever we hit something as a floor we call it support so on the way up a downward move would be support and an upward Mo upward ceiling would be
42:26 resistance so whenever we're rejected from the high that's resistance whenever we're bouncing off the lows that's support okay hence the names but what we find is when the market is really harmonically moving in Trend this way normally the resistance level which is previous here which is the previous high of the previous run normally becomes a decent support level and I can just draw this on again here if I just do this most recent one here if I can draw a straight line there you can see it again previous resistance become support so that's pretty cool right because now we can start getting excited about piecing this together and forming a real high high probability move because what is a trading strategy a trading strategy is
43:12 just a series of patterns that happen frequently in the market that we build rules around that gives us a high probability of being right and then when you trade that consistently like a board game set of instructions that is what you're going you know you're going to come out with a profit okay so that's all trading really is so what we want to do is not just have uh maybe it will do this maybe it won't I think it will it's it's likely to do that what we want is a solid Edge we want something where we have high confidence in the fact that it's likely very very likely to do what we think it's going to do because we never know what it's going to do definitely all right any Traders out there tell you they know what the Market's going to do run a mile all right so
43:57 so far we've got the condition the market phase we've got support and resistance and we're using that to our advantage as well so we're saying okay well if we're in a pullback if we're in let's start again on this example identify the market condition we're bullish what are we looking for bullish opportunities buying opportunities okay what phase are we in are we in a run or a pullback when we get somewhere down here there could be an an area that all of the Traders are looking at or the majority of Traders are looking at that will provide a high probability area for me to get in and buy this position well what's the first kind of filter that we can use support and resistance where's previous resistance well price is pushing right down into that support level right now
44:44 what do we know historically well resistance becomes support there's a clue okay look left structure leaves Clues you might have heard the saying um there's our first clue but we don't want to stop there what we want to look at now is how price behaves once it gets down into that zone so let's take a look at that right now all right before I go into that I just forgot to mention something on the support and resistance so obviously I mentioned support and resistance um you know horizontally but there's also angular support and resistance that we could look at as well so just to give you remember we're trying to think like as many other Traders as possible to pinpoint an area that that there's a high probability of a reaction of something likely to happen so that we can then Place orders right
45:31 um what we're looking at here is if I just bring on my tools here you can see this is a downward Trend this section of the market and we' we've got um our phase phase one our run our pullback our run okay and then we've got our pullback on the pullback we've also got previous structure support become resistance okay um and we've also got if we just look if we draw a line here you know sometimes what you can see is at the each of the pullbacks if you draw a line from the the close of the candle all the way through the closes of the candles to the most recent one uh you'll find that there is um something called angular support or in this case resistance where we're hitting an angular ceiling and
46:18 when the markets are really in Trend they tend to respect these now again it's not an exact science and it's not a pinpointed price but when we we can align all of this together we start getting a real high probability setup in our hands so I just sort of share that with you as well now I'm going to go into how we identify when's the right time to start really drilling down and looking at placing orders so let's look at that okay so the next thing I want to talk about is price okay and how that behaves price uh patterns what I'm talking about specifically is deceleration so running out of steam so we want to know when the market is likely to change direction in other words and there's a couple of clues that
47:03 we could use to do that if we're in a trending Market we can start to remember what I said about the candles and how we had big strong momentum candles and then we started to read the story of how that might be starting to run out of steam or how certain selling pressure was coming into the market or buying pressure depending on what um you know what direction we're going in but we can use that in a trend as well not only can we use it in a trend we can use it at the end of a trend so if the Market's trending and price action starts to show us that it's running out of steam and then we put in a retest or something like that then we can start to go all right okay that's double confirmation that it's likely to stop here this trend and actually go the other direction so what I'm going to give you is an example here in a trend so you can see on this
47:50 uh this is the Aussie New Zealand this example and you can see that we've got our run and our pullback and we've got we got our run and our pullback and we've got previous structure support become resistance right and we've got angular um resistance as well and prices pull back out um obviously all of these are in hindsight but that's really the only way that I can demonstrate this to you to give you as much value and and examples in this uh beginners program um what we could look for now is in this pullback phase we can see that how we can really drill down and look at Price here so let's just start by bringing uh let's zoom in a little bit here whoops let me just okay what actually happened here is we had this strong bullish
48:36 candle and then we had another bullish candle then another bullish candle another bullish candle but as you can see they're getting ever so slightly smaller until we get this candle right now this candle here what did I say to you guys before I said this is completely different to this this shows us that although it's green and we open lower than we closed it's still a bearish candle there's still selling pressure cuz remember the tug-of war Story the price pushed up and then pushed all the way back down and closed okay which is completely different to the previous story following this strong momentum and then we run out of steam and then we see this selling pressure kick in so remember we're looking at the condition of the market which is bearish we're looking at the phase of the market
49:23 which is in a pullback now we're trying to see where price is like to roll back over to go into the continuation of that downward move and what we're using is support and resistance we're using angular support and resistance we're using um price action now and we're looking at deceleration we're reading the story of price to show us when's a high probability you know entry point because we're never going to catch the top and sell the bottom right that doesn't happen what we want to do is use our technical skills to get in at the best point possible so when I look at this I'm I've now identified some deceleration and I've now identified what we call a Candlestick pattern as well and this Candlestick pattern is known as a high test candle or um some people refer to it as a shooting star or there's many
50:09 other names for these types of candles uh but really it doesn't matter what we're looking at is the is the formation of the candle and this is a high test candle now there's other candles that you might pay attention to like low test candle if we go in the other direction just like this one here or this one here but as you can see if you just look any of these candles anywhere you're not going to have an edge however if you look at them in the right place in the market that's what's going to give you the edge make sense same with dogee candles dogee is a candle like this one here that just has a very you know opens and closes at the same price it's called indecision where there's no decision and a lot of the times you'll see dogee candles that that complete like this where it's right in the middle it's tug of war that hasn't been won by either party and um and again they have happen
50:56 everywhere in the market but if you use them and you identify them at the right place in the market that can be added to your Confluence your confidence and confirmation that that's a good trading decision it adds water to and weight to the decision right so one of the Candlestick patterns which is um we we've looked at Market condition Market phases we've looked at um support and resistance we've looked at Price action patterns right the other thing that we can look at is Candlestick patterns okay so there's other things like indicators like Fibonacci and exponential moving averages and that but I'm not really going to go too much into detail in this beginner's course uh you don't really need to know too much about that um not not at this stage anyway
51:41 basically it's just another way of adding another filter so that you get added confirmation so just give you an example of one of the popular indicators that people use when we're looking for where the retracement is going to end is Fibonacci um it's called a Fibonacci retracement tool and essentially uh drag it on from the most recent pullback to the most recent low and what you're looking for is usually one of the popular ratios that people look for is a 382 retracement for a trend and you can see that that 382 retracement is lining up in our Zone here as well okay now some people look for deeper retracements at a 618 but really the 382 is the you know the strong the indication of a strong Trend so you can can see it's
52:27 another thing that we can add on now because we've now got our angular and horizontal um supp resistance lines we've got our um we've got the pullback phase we've got the um the 382 retracement you can also see here that we've got this even handle number you see this 1.10 now another thing that you could use to your discretion is even handle numbers anything that's on flat or 500 or even numbers with 50 in them they seem to be respected more often than not so you can see that we've got 1.1 flat that is a flat even handle number you know when you go to the petrol station and you put the Petrol in your car and
53:12 you squeeze the the pump and you try and get it on the Zero that same psychology is is represented in the markets believe it or not and for whatever reason these psychological numbers are resp Ed lots of people take their orders or profits at these levels which means we see movement in the market so great 1.1 flat we've got all this Confluence all of this uh going in our favor so all we need to do now is place an order right so we just want to place an order and what I'm looking for is the Candlestick formation as my as my signal to say right now we're ready to place an order and I've already got my candle signal right here okay so let's just take off uh this Fibonacci CU it's a little bit
53:59 uh it's cluttering the um cluttering the chart so all I'm going to do now is place an order just below the low of this High test Wick okay and I'm going to be placing a sell stop order I'm going to go through orders in just a moment um but for now all I'm if we go from the mindset of I'm just testing this out okay so I just want to see what happens so all I'm going to do is I'm going to place a um I'm going to place an order here just below this low and I'm going to put my stop loss up here and don't worry you don't know what stop loss is at the moment but I'm I'm going to explain what it is whoops what's going on here okay so my stop loss is going to go above this High the entry is going to go above below the low and then what I'm basically saying is to my broker I'm saying if price action pushes Beyond below this line I want to get in
54:45 at this price and I want to get out at a predetermined price um maybe down at the lows okay so I'm going to say right in this instance I'm going to test getting out down here at the lows right at the lows great let's see what happens so we we just let the market play out we get triggered into the trade and there's a high probability move and look not only did we get our high test candle wick here we got a lower low lower close than the previous low this is called a three bar reversal okay and uh we also got another rejection here so added confirmation even if you didn't get in here and waited for this candle you got even more confirmation because you could see see not only did we get another rejection we also closed even lower than
55:31 the previous low so then you could have placed your order here and got in make sense so I hope you understand how we use that kind of multiactor approach to looking at different components on price to really drill down and see where the high probability setups are and forming a story of price allows us to predict what's likely to happen next then all we've got to do is go and test this historically so a case of literally just going back in time and every time you get this set up practicing the moves um and you know going through it one bar at a time in real time as if like right what we're in the run or the pullback run or the pullback okay great what am I looking for now support resistance etc etc and you want to have a go at doing
56:16 that and you might want to pause the video to go and practice some of that and what I'm going to go through now is what you're going to want to um do know in order to actually place an order but before we do that we have to understand the importance of testing this and how to test it so let's do that first all right so from here before we get stuck into the business side of things which is going to be really important in terms of testing profitability you know making sure that you've got a solid system and then looking at strategies and things like that we first of all have to address something that's kind of the elephant in the room here and that is orders placing orders and what they mean you know what are they um so first of all I'm going to talk about the different types of orders and then I'm going to talk about um how you calculate
57:03 uh your position size and then how you know exactly what order to place and where and when and why and how much risk you've got at stake and all the kind of all that kind of good stuff so okay so what I want to start by giving you first is the terminology and the references used to describe different order types okay and I'm going to write them out first of all so write these down we've got a buy limit we've got a sell limit we've got a buy stop we've got a sell stop okay and we've got at market now whoops at market now those are the references
57:49 those are the terms that you might have heard um when it comes to order placement now I want to give you a a you know a reference or a kind of description of each of these because they can all be used in different ways right so some of you might be familiar with the term stoploss okay well a stoploss is a the way we use any of these orders okay so a stoploss uh is the way that you're using these orders not exactly so a sell stop and a buy stop isn't a stop- loss a buy limit can be a stop loss A sell limit can be a stop loss and at Market Market order can be a stop loss if you if you've got a mental level that you're actively watching and I explain more in a moment right so forget stop loss at the moment I explain that in a moment but these are
58:36 the types of orders a buy limit is um a limit order where you're telling your broker your in each of these orders are instructions to your broker by the way so first things first a lot of people think that when they place an order on the chart that that is the exact level that they should be filled in but it's not it's actually an instruction to your broker to then fill your position at the nearest possible price okay I want you to understand that because I don't want you to be one of these people that blame Brokers and things like that for you know not giving not honoring your your order and all this right it happens it happens and when you blame orders for things when you blame Brokers for things like that it just shows the lack of lack of knowledge uh on Brokers now there is
59:21 obviously things that go on underhanded by some Brokers which is why I use trade ation where they change spread values and things like that I hate all that um and I would say if you if you ever experienced that get rid um but just understand that when you place an order on your chart it's an instruction to your broker great good so a buy limit is a buy limit order is telling your broker that if price pushes down below what we're trading at at the moment and we hit a certain limit whatever price you specify to be that limit um so let's just say say for instance that we're trading here okay and um you're you're telling your broker so let's just let's just do this in a um you know chart
1:00:06 fashion so we're trading at this price and you tell your broker actually if we push down to here I want to set a buy limit order which means if we hit that limit I want to buy the currency okay so basically it's an instruction to your broker to say if we hit this level below where we're trading it at the moment whatever you predetermine that to be I want to buy x amount of position all right and don't worry about position sizing just yet so when we so we set a limit order down here and if price pushes down your broker will then trigger will buy you will put you in a long position make sense now sell limit works the other way so we're telling the broker if price pushes up to this predetermined limit that I'm going to tell you uh above what we're trading at
1:00:53 at the moment I want to sell the position okay so again exactly the same thing we're trading at this value and uh you're saying I want to set a sell limit up here okay uh this was a buy limit this is a sell limit and if price pushes
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