Forex Reversal Trading vs Trend Trading (Don't Screw This Up)

Forex Reversal Trading vs Trend Trading (Don't Screw This Up)


Buy low sell high is the shittiest advice you could ever give a Forex trader Should you be a reversal trader or a trend trader? Well, I've already pretty much alluded to it But we're gonna dig into this one pretty deep because if you get this wrong the chances of you ever trading at a pro level are very Very slim if you don't know me, my name is VP. I'm a professional Forex prop trader here in the States and My goal is to get you to a pro level and get the right fundamentals instilled in you before the game even starts and if you're a more experienced trader kind of push you back on to the easiest path to become a pro because there is an easy way and a very Very hard way and a lot of it at its core depends on your answer to this question right here so in this video, you're gonna learn what the right answer is if you haven't guessed it already and I'm gonna show you everything that is wrong with the wrong answer. I think the majority of you watching this video are probably on the wrong side and You've been doing it a while and you believed in it and I am going to in 10 to 15 minutes Do my absolute best to talk you out of it.

Because if I can't then you and I really can't go much further Alright, so play along at home. What should you be doing? reversal trading or trend trading in forex The answer is trend trading and it's not even close and I would wager to say that most of you don't do this I would bet because the numbers already back this up that the majority of you are reversal traders you do try to pick tops and bottoms and I don't disparage you for this look you heard the whole buy low sell high mantra growing up in investments and you just started out that way and some of you at some point probably did pick a top or a bottom and It made you feel amazing and why wouldn't it? you went into a Four to five trillion dollar de market and picked exactly when it was going to turn I mean, especially when you're starting out if that doesn't make you feel like a god, you know, I don't know what else does But it's one of the worst things that can happen to you long term It's the same thing as going to Las Vegas For the very first time and playing a slot machine for the very first time and hitting a jackpot on your very first pull You know, it's great.

But what it's going to do is You're going to allow yourself to just lose and lose over and over and over again until you chase that jackpot And that second jackpot might not ever come but even if it does all you are doing is Focusing on the possibility of another one hitting what you have lost focus on is your bottom line your trading account Where is it? Where is that trading account? Mr. Stud reversal trader guy who picks tops and bottoms at the end of the year What does it look like? Well for over 99% of forex traders out there who trade real money that answer is disappointing that answer is either break even barely profitable or for the majority of people down We just keep chasing that dragon don't we? in This video I am going to do my best to explain to you why that method of trading was flawed from the start it really wasn't you it was the way you were shown how to trade and The method that you just stuck with there was a problem.

So let's get into this first off. Let's start with buy low sell high It's probably perfectly fine advice in stock trading um a lot of you probably especially if you're an American learned stock trading or at least, you know, We're interested in it before you found forex, but it's just not a good idea in spot forex at all I'm going to talk about this because and this is the biggest thing Understand this before you understand anything else overbought and oversold Does not exist in spot Forex if you have seen anybody utter these words With a straight face when talking about spot forex Run away and never patronize their website ever again because it's not real and Telling you it is is one of the most dangerous things people can possibly do because currencies are not stocks equities like stocks like commodities like a gold they have real values attached to them stocks have assets and balance sheets and products and you can Factor all those things in to determine a reasonable price for a particular stock And if you feel that number is way too high Okay That stock might be technically.

I'm doing air quotes here overbought But currencies aren't like that. The price of any currency is whatever the big banks decide them to be What do you know about the big banks? Did you wash my big banks video? if You haven't I'm okay with you pausing this video right now and going and watching and I'm gonna link it down below because it is that important you cannot be a real trader in this market and not understand who the people are that move price up and down and why they do it if You're even going to be an average trader in this market. That is a Prerequisite and I break it down for you. Really really well in that video But I'll I'll give you a kind of an abbreviated version of it here For those who just want stick with this video the big banks of the world and we all know who they are These are four of the major players They have so much controlling equity in the forex market that if they decide prices going one way That's where it's going to go.

You might think all these news events determine where price goes It doesn't if it's a big enough news event, the big banks understand that price will have to go one way But the big banks decide when that change happens not us It's not like in stocks If a bunch of money all of a sudden floods into the market one way or another that determines where price goes in Currencies and spot forex that determines the opposite of where price goes Let me explain the big banks do this on any given day they have software That can tell where most forex traders have their money and not so much really have their money But where that money is headed So like on the euro dollar if that money for the most part is headed long then all they do is just take it short It is in their best interest to do that.

They collect When they go the opposite way they lose when they go the same way that you're going and by you don't despair I mean the majority you can be in the minority That's actually exactly where you want to be and if you can be in the minority more than the majority You're gonna do just fine but the banks take price the other way and I'm going to show you in this video exact proof of how this happens and they take the money and Redistribute it back into the market and that's how they are able to make price go up or make price go down so if you didn't know before You know now and if you are still a bit confused or would like to know more about how this happens That's where that big banks video comes into play.

But let me tell you big banks absolutely, love reversal traders Reversal traders are the big banks oxygen They need you to survive if the big banks fed off trend traders price would never go anywhere But at some point on any given currency pair the big banks are going to want to take price up or down How far they take it up or down, Depends on how many reversal traders are setting they're trying to call reversals on the way up or on the way down This is how it works.

If you see a currency pair that trended down for a very long period of time it's because all the way down there were reversal traders trying to call reversals and they just didn't stop and Only when they all collectively said, okay, we give up. We're tired of losing all our money. We're gonna We're gonna go ahead and bet with the trend that is when the reversal actually occurs. I'm gonna show you this So let's go to the dollar yen That's one that trended really good in the last six months or so That'd be a good way to, a good example for you.

All right So here we are on the daily chart of the dollar yen. You can see about a six-month sample size here and This is a really good example because this pair had a really nice downtrend here and then made a really pretty little V and went right back up and What I'm going to show you on a tool that I used in my big banks video that pretty much proves Everything I'm saying to you right now Is that the reason why this trend went as far as it did and the reason why this one went as far as it did? Is because money kept going the opposite way They wouldn't stop trying to pick the bottoms and the big banks said okay, if you're gonna do that We're just gonna keep taking price down and take all of your money Alright, so let's move over to that tool now and here we are.

I won't even bother linking this below you can just go to www.dailyfx.com slash sentiment and it'll take you right to it. It's a neat little tool I don't like it for predicting where price is going to go But I really like it for proving my point when people try to argue with me saying that There are other entities out there that take price up and down. No there isn't it's the big banks They are responsible for 99 percent of it and I will show you why let's go to that dollar yen pair we were looking at Over there. Yeah, so this blue line and it'll turn red if it gets too low But this is dumb money This is the reversal traders. This is the majority of the traders out there the people who run this have enough evidence enough data as far as what their traders are doing and they have so many traders that if their traders are doing it's pretty safe to say That most traders around the world are doing the same thing So what they do is they figure out Which way their traders are headed long or short on any given currency pair and then you can see in the background where price? actually went so Kind of starting up here traders said okay, we're gonna ramp up and try to go long and The banks immediately said okay.

We're gonna go short Trader said we're gonna try to pick reversals. We're still gonna go long and all throughout this process Price just kept going down down down down now they stopped going longer but a lot of them stayed long and that's why this blue line is still so high and so during that whole process Where these reversal traders were sitting there saying okay any day now price just kept going further and further down There's one time where they kind of all went short and as soon as that happen look, That's where that retracement happened The banks said okay. You want to go short we'll just go long Traders are like LOL. Jk, we're going to go higher like we wanted to and the banks were like oh, okay we will just go lower and Only when did they all together decide to go short and keep going short Did the banks say okay now it's time to take price Back up Traders all went long and stayed long price kept going down traders switch their pattern and The banks did too all the way up This is how they operate this trend will keep going down as long as traders.

Stay long Only when do they all decide to go the other way? Does price go the other way This is how it works and how far a trend goes Depends how many people are sitting there trying to pick that reversal I know there are a lot of reversal traders out there right now, and I know this stings But I hope it's starting to make sense to you Stop being a pawn for the bank's because that's exactly what you are. My logo for no-nonsense. Forex is pawn takes king That's where we're aiming for because right now if you're a reversal trader King is taking pawn Every single time they are using you they are taking your money and they are loving it because people like you will never run out You will always be there to try and pick tops and bottoms You will always be there to lose and just like a Vegas casino They're gonna give you a little win here and there just to keep you in the game just to make you feel strong and smart but in the end Your account goes down and their account keeps going up and I feel the need to throw this in here - because I'm an indicators Guy, but the indicators that you use any tools that you use to try to pick reversals are only doing you a disservice Because it's like that first pull on the slot machine.

They're gonna work Sometimes there's gonna be range bound markets where these things actually look pretty good But as soon as the market starts trending you're done and let me tell you this - I am an indicators guy even the best Reversal tool out there on the market that I've ever seen is really bad So if that's really bad. These horrible outdated things are even worse. But so many people use them You know how many hits these get on Google how many searches for stochastic sand RSI alone? thousands a month For a tool that even in the reversal world, which is already shitty are Probably the bottom of the barrel in terms of tools because what do they do? They try to find out when a currency is or currency pair is overbought or oversold And there is no such thing. So let's go ahead and wrap this up in conclusion reversal trading It just makes it way too hard to make consistent money in forex everything is against you in particular the people who move price up and down or against you and that's really Really bad.

I implore you strongly to move over to trend trading It's much more fun because it's much more successful and I'm gonna do everything I can To set you up for success here. This channel was built to do that with very easy to follow instructions done in a very brutally honest tone because it's about time somebody came into that and if you like the message I am sending to you right now if You are frustrated with all the other Twitter feeds and websites and YouTube channels telling you to do the same thing over and over again Seeing how well it works when they do it, but then when you try to do it, it doesn't work that well This is where you need to be subscribe to this YouTube channel I'm going to springboard you so far ahead of most traders in a very short amount of time if you just go to The FX strategies core concepts playlist and just watch those videos alone. You're gonna be in a much better place than 95% of spot forex traders in the world and then every single video I put out thereafter is just going to get you that much Closer to exactly where you've wanted to be this whole time.

All right Until then go get it .


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