A lot of people have dreams of making a fortune in the forex markets. For most the dreams never come true. For others, the order flow, global macro, and news traders the chances of success are far higher, for you are dealing with the very foundations of what makes the market move. Foundations of Order Flow, Liquidity, and Volatility.
But there is a much bigger difference between traders that actually achieve the goals they are looking for and the ones that fail. The answer lies in the question what series of trades are you looking for? What series of trades do you expect to place that will attain the profit you desire? How big are the moves that you will be expecting? How big are you stops? How much do you risk? How do you manage the trade? What scenario do you expect to play out for the trade to succeed? How will you handle draw downs in the series of trades? Most people are clueless to what series of trades they are expecting to profit from.
In fact most people can’t answer the question. They don’t know what to look for. They can’t imagine the trade playing out inside of their head. They can’t imagine the particular scenario playing out. They can’t imagine the different market participants battling it out. They can’t imagine the global macro scenario playing out.
For most people in the technical indicator cycle, the series of trades consists of looking for moving average crossovers, or divergence, etc. That is their definition for the “What Series Of Trades” question. It is a poor answer. And thus they get poor results.
The person looking to turn $10,000 into $50,000 in six months can’t answer the question “What Series Of Trades are you looking for? If they do answer it, it may be some fanciful situation where the market moves 5,000 pips in one week or something. Something truly imaginative but unrealistic.
Be imaginative, but be imaginative of the things that can generate order flow. Imaginative of the global macro scenarios that can play out. Imaginative of the order flow generators that can actually move the market.
When I trade I always know what series of trades I am looking for. I know what global macro environment I am trading in and know where the potential stresses and fractures can occur. I know generally how much the market can move in a certain direction if different scenarios play out. Some of the scenarios never come to fruition during a certain week. That is fine. I just recalibrate the mindset and order flow system to take into account any new order flow generators, market sentiment, market sensitivity, if it changed, and ask myself the question again. What series of trades?
Well, what series of trades are you looking for? And what are you doing today to help you capture those movements?
The better your answers to those questions, the better the answers rooted in order flow, rooted in the order flow generators that can move the market, the more money you will make.