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Forex Trading For Beginners (2025 Full Course) — Transcript

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0:00I've helped over 3,000 traders reach
0:02profitability and build thriving
0:04careers, making $3,000, $5,000 per
0:07month, $10,000, sometimes upwards of
0:09$50,000 in a single month. And I've done
0:12this for hundreds, if not thousands of
0:14people. So, it's safe to say I know what
0:17you need to do to win. And in this
0:19class, I'm going to share everything
0:20that you need in order to reach the same
0:22levels of success as my students. So,
0:25without further ado, let's get started.
0:27So first of all, what is forex? Well,
0:30forex is simply an abbreviation of
0:32foreign exchange. And foreign exchange
0:34is the name given to the largest
0:36financial market in the world where we
0:38trade the value of different currencies.
0:41So if you're familiar with stocks or
0:43shares as they're the most common, it's
0:45similar to the stock market, but instead
0:47of buying shares in a company, we are
0:49instead betting on the value of
0:50different currencies against other
0:52currencies. We'll get to this very soon.
0:54The foreign exchange market is the
0:56biggest financial market by far with a
0:58daily turnover of more than $7 trillion.
1:01Which means every single day that the
1:03market opens, $7 trillion passes hands
1:06between banks and individual traders
1:08like me and you. And there are two key
1:10players in the forex markets. We have
1:13institutional traders and we have retail
1:16traders. So these are the different
1:17participants. Institutional traders are
1:20by far the biggest. They make up around
1:2195% of the overall trading volume. And
1:24these are traders like banks, hedge
1:27funds, trading firms, and large players
1:29like that with hundreds of millions or
1:31even hundreds of billions of dollars to
1:33trade with. Now, the little guy, me and
1:35you, we are retail traders. We are just
1:38individual people stepping into the
1:40market hoping to take some positions and
1:42make some money. We have no bearing on
1:43what the market actually does because
1:45most of the movement is created by the
1:47big banks. But that doesn't mean there
1:49isn't opportunity somewhere in that $7
1:51trillion for us to step in and make a
1:53good living. And that is exactly why we
1:55trade the market. We are just looking to
1:57take good bets inside of the market,
1:59take some good trades, and make some
2:01money at the end of each month, quarter,
2:03and year. So, how exactly do we make
2:05money then? Well, when we're trading the
2:07market, we are essentially making bets.
2:09So, sometimes we're going to be right,
2:11sometimes we're going to be wrong. It's
2:12kind of like gambling, but we have a
2:14significant edge that we can build into
2:16trading that guarantees that we win long
2:18term. Now, what we have to do in order
2:20to make money is either buy or sell a
2:23market before it goes up or down. So, if
2:26we bought a market and it went up, we
2:28would make money because we are buying a
2:30contract now, selling it back later
2:32after it's appreciated. Now, obviously,
2:34if we buy and a market goes down, we
2:36would lose money, which is where the
2:38losses come into the equation. But don't
2:39worry about losses. We control those.
2:41It's all part of the strategy. Losses
2:43are completely normal and I'm going to
2:45show you before this class is over how
2:46to control the losses and create that
2:48positive balance so that you can ensure
2:50you win over the long term. Now, what do
2:53we actually trade in the market then?
2:54Well, as we said, we are trading
2:56currencies. We're not trading stocks.
2:58We're not trading shares. We're not
2:59trading cryptocurrencies or anything of
3:01the like. We are trading the value of
3:03different global currencies. So, things
3:05like the pound, the US dollar, the
3:07Australian dollar, the New Zealand
3:09dollar, the euro or the Japanese yen.
3:11That is what we trade. But in the forex
3:13market, we are not actually buying and
3:15selling physical currencies. We buy
3:18something we call a contract for
3:20difference or a CFD. What a CFD is is
3:23essentially a bet on whether one
3:25currency is going to go up against
3:27another. And every trade that we take in
3:28the forex market includes two different
3:31currencies which make up the very assets
3:33that we trade called currency pairs. So
3:36what is a currency pair? Well, a
3:38currency pair is a collection of two
3:40different currencies. In this example,
3:42we have the euro and the US dollar. And
3:45with this example of EuroUSD, if we were
3:47to buy this asset, we would be expecting
3:49the euro to go up against the US dollar.
3:51And we would make money if the euro went
3:54up against the US dollar. Now, EuroUSD
3:57is far from the only currency pair that
3:59we can trade. There are actually
4:00probably over a hundred different
4:02currency pairs to choose from. They're
4:03broken down into three subsections. We
4:06have major currency pairs, we have minor
4:08currency pairs, and we have exotic
4:10currency pairs. Now, majors are the ones
4:12that you would want to trade. And these
4:14are made up of the major global
4:16currencies. They are the US dollar, the
4:18euro, the British pound, the Japanese
4:21yen, the Swiss frank, the Canadian
4:23dollar, and the Australian and New
4:25Zealand dollars. Now, major currency
4:27pairs are always weighted against the US
4:30dollar as this is the world reserve
4:31currency right now. So it's the most
4:33important currency in the world. It's
4:35the currency that different countries
4:37trade in internationally. So some
4:39examples of major pairs would be
4:41EuroUSD,
4:42GBPUSD,
4:44AUD/USD,
4:45NZDUSD, USD JPY, and
4:49USDCHF. My suggestion to you is that you
4:51focus in on these major pairs only. You
4:54don't really need to be trading minors
4:55or exotics at this point or really at
4:58any point in your trading journey. Now
5:00just to briefly cover what they are.
5:01Minor pairs are major global currencies
5:04disregarding the US dollar. So these
5:06would be pairs like euro GBP, GBP JPY,
5:10Euro JPY or GBP AUD. And exotic currency
5:14pairs are made up of the US dollar along
5:16with developing or emerging world
5:17currencies like the Hong Kong dollar,
5:19the Singapore dollar, the Mexican peso
5:22or the Swedish croner. So you know what
5:24they are, but I still highly recommend
5:25that you just focus on major pairs. Now
5:28to explain currency pairs a little bit
5:30deeper, let's go back to the EuroUSD
5:32example. A currency pair is made up of
5:34two different currencies. We have the
5:36base currency and the quote currency.
5:38The base currency is always the first
5:41currency in the pair and the quote is
5:43always the second. Now the base and the
5:45quote make up the price and basically
5:48the price of a currency pair will be the
5:50value of one base currency versus one
5:53quote currency. So if the price of
5:55eurousd was
5:571.112 that would mean that 1 euro is
5:59equivalent to
6:011.112 that is the price of that currency
6:04pair and it is the difference in value
6:06between the euro and the dollar in the
6:08example of USD JPY which is the dollar
6:11versus the Japanese yen. If the price of
6:13this currency pair was
6:15144.05 that would mean that$1 US is
6:18equivalent in value to
6:20144.05 Japanese yen. So the price is
6:23always the value of the base currency in
6:25the quote currency. So now you
6:26understand the very basics of what the
6:29market is and what we actually trade in
6:31the market and how we make money. But
6:33why do we choose the forex markets over
6:35other markets such as stocks or
6:37cryptocurrencies? There are a couple of
6:39core reasons that when we bring them
6:40together make forex the best market to
6:43trade for individuals like me and you.
6:45The first is liquidity. Now, as we said,
6:48this is the biggest market in the world
6:50by far, which means that there's a lot
6:51of money flowing around. Now, liquidity
6:53simply refers to money, how much money
6:55is flowing around a financial market. If
6:57liquidity is low, sometimes when you get
7:00into a trade, your entry will be way
7:02worse than you wanted it to be, which
7:04gives you a bad price and means what
7:05could have been a winning trade is going
7:07to become a losing trade. The same can
7:09happen for getting out of trades. If
7:11you're trying to get out in profit, but
7:12there isn't much liquidity in the
7:14market, you're actually going to get out
7:15at worse price. So the first is
7:17liquidity. You have more liquidity than
7:19stock and crypto markets, which means
7:21you never get caught in these bad
7:22trades. And the second and probably the
7:24most important is the flexibility. So
7:27crypto markets are arguably the most
7:29flexible cuz they're open 7 days a week,
7:31but they have liquidity problems and
7:33your trading conditions are not going to
7:34be so good. You'll have to pay large
7:36commissions. Your entry and exit prices
7:38aren't going to be brilliant. But in
7:39forex, we get great liquidity plus
7:42almost as much flexibility. See, forex
7:44markets are open 24 hours a day, 5 days
7:47a week. So, they do close for the
7:48weekend, not quite as flexible as
7:50crypto, which is a 24/7 market. But
7:52anytime there isn't, Saturday and
7:54Sunday, we can trade actively in the
7:56forex markets, which makes it a great
7:58market to select. We're not confined to
8:00specific trading hours like we would be
8:02trading the stock market. So, those are
8:04the big two reasons. It's flexible and
8:06we can trade it pretty much anytime we
8:07want. But it's also more liquid than the
8:09other markets, which means our trading
8:11conditions are better. And the odds of
8:12getting caught in those horrible trades
8:14that you just can't escape is massively,
8:16massively lower, pretty much
8:17non-existent. There's also a few other
8:19benefits of trading these CFDs and
8:22trading forex that you don't get
8:23elsewhere. The first is the opportunity
8:25to go long and short. Now, to cover a
8:28bit of terminology here, a long trade or
8:31a long position is simply a buy. So if I
8:34say I'm going long on a market or I'm
8:36long on a market, that means that I'm
8:38buying or I've already bought a market.
8:40Short is the opposite. It's a sell. Now
8:44what we can do with CFDs is actually
8:46sell before we buy. Now I know this
8:48sounds weird, maybe a little bit
8:50confusing, but it's actually very simple
8:52in practice. We sell a contract with a
8:54promise to buy it back later. So if we
8:56sell the contract and it goes down, we
8:58can buy it back cheaper. We profit from
9:00the difference. When you buy a physical
9:02stock, you can't do this. So, you can
9:04only profit from markets that are going
9:06up. Markets don't go up all the time,
9:09but in forex, we can benefit from the
9:11declines as well. So, if a market is
9:13crashing, we can short, we can sell it,
9:15and we can profit from that down move.
9:17If you hold physical crypto, the only
9:20thing you can do when the market
9:21declines is lose. But in forex, we can
9:23win even if the markets are crashing.
9:25So, to boil down why we choose forex
9:27over other markets, it's more flexible.
9:30We can trade it both ways. We can trade
9:32it pretty much anytime we want
9:33throughout the week. And because of the
9:35liquidity, we have the best trading
9:37conditions and the lowest costs for
9:39trading, meaning the commissions for
9:40getting in and out of trades are
9:42sometimes zero, but always very low.
9:44Throughout this class, you're going to
9:45hear some terminology that might be
9:47completely new to you and might be
9:49confusing. But don't worry, cuz anytime
9:51I mention a jargon term, I will be
9:53covering it and explaining exactly what
9:55it means. So the first one that I really
9:56need to explain now is the concept of
9:58bullish and bearish. So bullish and
10:01bearish are words that are given to
10:03directions in the market or biases
10:05around the market. Now a bias is simply
10:08which way you think a market is going to
10:10go. So if you think a market is going to
10:11go up or if a market is already going
10:14up, this is called a bullish market. You
10:16would say I'm bullish on the market. If
10:18you were in a buy trade or you thought
10:20the market was going to go up, you would
10:21say EuroUSD is bullish if it was already
10:25going up. Bearish is the opposite. So if
10:27you thought a market was going to go
10:29down, you'd say, "I'm bearish on this
10:31market." If Euro USD, for example, was
10:33already falling, Euro USD would be a
10:36bearish market. So these are terms that
10:38you need to know because you'll hear
10:39bullish and bearish quite a lot. Now,
10:41the other thing I want to mention just
10:42real quick is my use of the word
10:44position. A position is a trade and a
10:47trade is whether you've bought or sold a
10:49market. While you are holding a buy or a
10:51sell, you are holding an active trade.
10:53You are holding an active position. So,
10:55just to get that out there, let's move
10:57along. In the forex markets, because
10:59they are flexible, there are many
11:01different ways to trade. The three main
11:03trading styles are swing trading, day
11:06trading, and scalping. Swing trading is
11:09long-term trading, trades that are held
11:11anywhere from more than one day up to
11:13weeks or months. Day trading is trading
11:16that takes place within a single day.
11:18So, a day trader will look to get into
11:20and out of their trades in a matter of
11:22minutes or hours. Scalping is very, very
11:25low time framework where you look to get
11:27in and out of a trade in a matter of
11:29seconds or just a few minutes. Now, all
11:32of these different trading styles can be
11:34viable and can make you a profitable
11:36trader. And most beginners are drawn
11:38towards day trading or scalping because
11:40of the excitement. But I'm going to tell
11:42you now, the easiest way to win as a
11:44trader is swing trading. This is the
11:46fastest way to escape your 9 to5. This
11:49is the fastest way to build up trading
11:51capital and the easiest, most passive,
11:53and least time-conuming way to build a
11:55career in the markets. So I would
11:57suggest you stick with swing trading to
11:59begin with. You can always scale down
12:01and learn day trading and scalping
12:02later. Okay. So we know to make money we
12:05need to be moving with the market. But
12:08to move with a market we need to know
12:10whether the market is bullish going up
12:12or bearish going down. And we call these
12:15up or down movements in the market
12:17trends. Markets move in three trending
12:20phases. We have uptrends where a market
12:22is going up. We have downtrends where a
12:25market is going down. And we have
12:26consolidation where a market is going
12:28sideways and not really doing much at
12:30all. Now, obviously, our plan is to go
12:33long or buy in uptrends, go short or
12:36sell in downtrends, and stay out of the
12:38market during consolidation. When the
12:40market's going sideways, we do not want
12:41to be involved. This is where a lot of
12:43money is lost. But how exactly do we
12:45know which way the market's going to go
12:46cuz we can't see the future, right?
12:48Well, we work out which way we think the
12:50market's going to go and place our bets
12:52accordingly by using analysis. Now
12:55analysis is just methods of reading the
12:57markets to see which way we think the
12:59directions of different currencies are
13:01going to go. There are two core types of
13:04analysis. The first is technical
13:07analysis. This is where we use price
13:09charts to determine whether a market is
13:11going to go up or down. Now, I'm going
13:13to teach you all about these price
13:15charts, what they show, what they mean,
13:17and how to trade them, as well as give
13:18you a strategy you can use a little bit
13:20later on. Fundamental analysis is the
13:23second type of analysis. This is where
13:25we use real-time news, data, economics,
13:28and political information to work out
13:30what's likely to happen in different
13:32currency markets. Fundamentals are
13:35brilliant, but they're not very beginner
13:37friendly. It makes a lot more sense to
13:39focus on the charts because you can
13:40succeed with charts alone. So, in order
13:43to not massively overconfuse you in this
13:45class, we're going to be focused on
13:46technicals. There will be opportunity to
13:48learn more about fundamentals later, but
13:50today we're going to focus on the
13:52charts. So, when it comes to technical
13:54analysis, our goal is to build a
13:56strategy, which is going to be a list of
13:58rules that we can continually apply to
14:00price charts in order to work out
14:02whether the market is going to go up or
14:04down. I'm going to show you a strategy
14:05very soon. But in order to be a winning
14:08trader, analysis alone is not enough.
14:10Earlier on, I told you that we are going
14:12to win and we are going to lose. So,
14:14some of the trades we take will actually
14:15result in lost money. Trading is not a
14:18linear game, meaning we cannot win every
14:20trade we take. And we will never see our
14:22account balances and profits just going
14:23up like this. We're going to have ups
14:25and downs in this market. That is just
14:27the nature of trading. Now, one of the
14:29greatest traders of all time, Peter
14:31Lynch, said this famous quote, "In this
14:33market, if you're good, you're right six
14:35times out of 10. You're never going to
14:37be right nine times out of 10." Now,
14:40keeping that in mind with what I've
14:41said, we obviously then need a way to
14:43balance the wins and losses. And that is
14:45where risk management comes in. Well,
14:47risk management is the process of
14:49holding your winners for as long as
14:51possible to maximize the profit you take
14:53on winning trades and cutting your
14:55losers as fast as possible to make sure
14:57the losing trades you take are
14:58considerably smaller than the winners.
15:00If you do this consistently, your
15:02winners are going to bring you back a
15:04lot of profit, while your losses will
15:06only cause you a small amount of loss
15:08money. We balance big wins with small
15:10losses. And guess what? We make money
15:12long term. So, if you've seen anything
15:14about trading before watching this
15:15video, you might have seen the very
15:17cliche but 100% true and relevant term,
15:20cut losses short, let winners run. That
15:22is the process of risk management. So,
15:24there are two main types of edge that we
15:27can create. An edge is basically our
15:29ability to make money consistently by
15:32weighing probabilities or odds in our
15:34favor. And the two types of edge are win
15:37rates and riskto-reward. Your win rate
15:40is how many trades you win versus how
15:42many trades you lose. So we know that
15:43the average win rate is going to be
15:45around 50 or 60%. Now online, people
15:47will try to sell you a dream. Do not
15:49listen to people telling you they win 9
15:51out of 10 trades consistently. Doesn't
15:53happen. I promise you. Now, because we
15:55know we're not going to win every trade,
15:56we can't really build an edge with win
15:58rates in mind. So, if we have to rely on
16:01winning seven, eight, or nine trades out
16:03of 10 in order to be profitable, we're
16:05not going to be profitable for long
16:06because when we hit a losing streak,
16:08we're just going to lose all the profits
16:09we've made. So, the other type of edge,
16:11and the one that I massively suggest to
16:12you, is a focus on risk versus reward.
16:15Risk versus reward is a concept where
16:17you try to make more money on your wins
16:19than you lose on your losses. So, a
16:21riskreward ratio will be a number like
16:23this, 1:3. In a trade with a one to
16:26three riskreward, we would be risking $1
16:29to make $3 or more back in profit. This
16:32means if we only win half of the trades
16:34we take, we're still making a
16:36significant profit because every time we
16:38take 10 trades with $100 risk, for
16:40example, we win five trades, which would
16:43be a $1,500 return. Then we would lose
16:46five trades with a $100 loss per trade
16:49for a $500 loss. So, with five wins and
16:52five losses, we come out with $1,000 in
16:55profit. Now, you can see if you
16:56consistently do this over the long term,
16:58you're going to make money even though
16:59you're wrong half the time. When you
17:01trade with a riskreward edge, you don't
17:03have to worry about being right on every
17:05trade. You can just weigh the
17:06probabilities in your favor. Trade
17:08without stress and come out on top even
17:10when you take losing trades quite
17:12regularly. So, here is a Monte Carlo
17:14simulation, which is basically just a
17:15portfolio predictor. You can see this
17:18one:one trader with no riskreward edge
17:21is pretty much doomed to fail. The only
17:23way he can win is by using look. But
17:25this trader with a risk-to-reward
17:27focused edge makes money long-term even
17:29when they're wrong half the time as you
17:31can see because when they win, they're
17:32winning significantly more than they
17:34lose. So now you know the basics of
17:36trading and you know what it takes to
17:38win. We've talked about analysis and
17:40risk management and pretty much how you
17:41collect a strategy that's going to give
17:43you an edge and allow you to beat the
17:45market. Now, we can go a step further
17:47and start talking strategy. But quickly
17:49before we do that, I need to set you up
17:51with a few different trading platforms
17:53that you're going to need in order to
17:54start taking trades for yourself so you
17:56can start your learning journey. The
17:58first thing that you're going to need is
17:59a broker. Without a broker, you can't
18:02take trades. So, what is a broker? A
18:04broker is an entity or a company that is
18:07going to facilitate your trades. In
18:09other words, they will be the ones that
18:10take your trades for you. So, you send
18:12your trades through to your broker and
18:14they make sure that those trades
18:15actually happen inside of the markets.
18:17This could be by taking the other side
18:19of your trade or porting it through to a
18:21commercial bank that will take the trade
18:23for you. Now, you simply cannot trade
18:25without a broker. If you don't have a
18:27broker, you can't place trades. No one
18:29is going to fill those trades for you.
18:30So, you need a broker 100% if you want
18:33to trade. A broker nowadays is not an
18:36individual person. It's just a big
18:38company. And everything is done
18:39completely online. So, what you actually
18:41do is link a brokerage account to a
18:43trading platform and then all you have
18:45to do is click buttons and that's going
18:46to take your trades for you. There's
18:47none of this old school getting on the
18:49phone to your broker to get into and out
18:51of your trades. It's a lot easier than
18:52that nowadays. So, if that's what you
18:54had in mind, don't worry. Now, be warned
18:56because picking your broker is a very
18:58big decision. Some brokers are terrible.
19:00It will take you ages to withdraw your
19:02money. The trading conditions you get
19:04will be terrible and that is going to
19:05result in lost money and lost trades,
19:07which we do not want. When we're looking
19:09for a broker, we want a broker that
19:11gives us good customer service, fast
19:13withdrawals, and exceptional trading
19:15conditions. Now, I have a broker that
19:16I've been using for my entire trading
19:18career. There's a link to that in the
19:20description, but there are some others
19:21that I would recommend as well. I like
19:23Icy Markets, Vantage Markets, and
19:26Owander. And if you're based in the US,
19:28Ower is probably the best choice for
19:29you. I've tried many different brokers,
19:31but those three seem to be the best that
19:33I've used. Now, brokers make money in
19:35two main ways. through spreads and
19:38through commissions. And why does it
19:40matter to you how brokers make money?
19:42Well, this is because the broker's
19:43spreads and commissions will directly
19:45affect you. Commission is money you'll
19:47be charged for getting into and out of
19:49trades. And spread is a small price
19:51discrepancy between where you want to
19:53buy and where your trade is actually
19:55filled, which means you will pretty much
19:57enter every trade with a small loss.
19:59This spread is money that the broker
20:01kind of skims off the top in return for
20:03actually opening your trade. So they're
20:04going to make a small amount of money on
20:06the spreads and they'll also make a
20:07small amount of money per trade on
20:08commission. The reason it's important
20:10for you to understand these terms is
20:11because spread will affect your entries
20:13and your exits and commission obviously
20:15is just going to cost you money. So
20:17let's talk deeper about spreads in the
20:19market. We have two different prices for
20:22getting into and out of trades. We have
20:24a bid price and we have an ask price.
20:26The bid price is the price at which a
20:28broker will sell an asset to you. And
20:30the ask price is the price of which a
20:32broker will ask for in order to sell the
20:34asset to you. Now, the bid price is
20:36always going to be a little bit lower
20:37than the ask price. So, they will pretty
20:39much always overcharge you a little bit
20:41and undercut you a little bit when you
20:42want to sell the asset back, which is
20:44annoying, but it's just the cost of
20:45doing business. Now, the difference
20:47between the bid and the ask price is
20:49your spread. Usually, it is very small,
20:51but it's large enough to cost you a
20:53little bit of money when you want to get
20:54into positions. Now, we'll talk a bit
20:56more about how spreads affect individual
20:58trades when we move over to the chart,
21:00but for now, just make sure that you're
21:02trading with a broker who offers
21:03competitive spreads so that it's not
21:05eating up all of the profit on your
21:06trades. If you use one of the three
21:08brokers I listed, you shouldn't have a
21:10problem with spreads at all. Now, some
21:12brokers will charge very small spreads
21:14in return for a commission, which means
21:16they will charge you a dollar amount for
21:18every time you open and close a trade.
21:20Generally, commissions will be
21:21reasonably small and they shouldn't eat
21:23into your profits massively unless
21:24you're taking trades that are way too
21:26big for your account. Once again, if you
21:28use one of the brokers I've suggested to
21:30you, the commissions are very, very
21:32manageable. And now, before we get into
21:33a bit more of the technical jargon
21:35around brokerage and trading accounts,
21:37it's time to choose your trading
21:39account. There are two different types
21:40of trading account that you can choose
21:42from. There is a demo account and a live
21:44account. A demo account is basically a
21:46practice money account where you will
21:48have a trading account with fake money
21:50in. You can trade this, make profit or
21:52lose money and it doesn't matter because
21:54the money is not real. But it's a great
21:56place to begin and a great place to
21:58practice and build your skill set
22:00without having to risk and lose real
22:02money in the process. A live account is
22:04what you would move on to once you've
22:05mastered demo. This is a real money
22:07account. You deposit money into the
22:09account. You trade with that money. The
22:11profits you make are yours, but the
22:13losses you make will also be yours. So,
22:15I highly suggest you stick with demo for
22:16a good few months to master the
22:18strategies before you move on to live
22:20accounts. Okay, so now let's talk about
22:21some terminology related to brokerage
22:24accounts. The first is lot sizes. So, a
22:26lot size simply refers to how big your
22:29trade is. Every trade we take is sized
22:32in lots and they vary anywhere from 0.01
22:35up to hundreds or thousands. So, you
22:38probably won't be trading hundreds or
22:39thousands of lots for a very long time,
22:41if ever. Because to do that, you will
22:43need millions or tens of millions of
22:45dollars. So, the lots that you'll most
22:47likely be trading in your earlier days
22:48of trading will be between 0.01 and one
22:52lot. You need to make sure you're
22:54trading the right lot size for every
22:55trade you take, but you can do that
22:57using a lot size calculator like the one
22:59on the screen here. There's also a link
23:01to this in the description. Basically,
23:03how this works is once you found your
23:05trade, you work out how big your stop
23:07loss is going to be, how big your
23:09trading account is, and how much money
23:10you want to risk on the trade. Then you
23:12click this button, and it will tell you
23:13exactly how many lots your trade should
23:15be. But, as I say, it's going to be very
23:17low to begin with. Now, if the
23:18information on there regarding stop-
23:20losses and risk percentages is
23:21confusing, don't worry, we're getting to
23:23that soon. Okay, so what is leverage?
23:25Now, when you're trading on a CFD
23:28account with a broker, pretty much every
23:29account will have leverage built into
23:31it. Leverage is basically money that a
23:33broker will lend you in order to open
23:35trades. Now, a one lot trade is
23:37equivalent to $100,000 in contracts,
23:40meaning you would need $100,000 just to
23:43open this position. And if price moved
23:44even one pip, you would lose a lot of
23:46the money and your trade would be
23:48closed. So, in order to stop this
23:49problem and in order to make sure you
23:51can trade without needing tens or
23:53hundreds of thousands of dollars,
23:54brokers provide leverage. Leverage will
23:56be a ratio of 1 to a specific number. So
24:00a 1 to30 leverage trading account means
24:02you can open trades with 30 times the
24:04buying power of the capital in your
24:06account. 1 to 500 means you can open
24:08trades 500 times larger than the money
24:10you have available. Now this is
24:12completely pointless. I suggest you
24:14choose a broker account with 1 to 30 or
24:161 to 50 leverage cuz this will stop you
24:18from oversizing trades. Now although
24:19leverage is practically borrowed money,
24:22don't worry. It's not like a loan. It's
24:24not like debt. It is automatically built
24:26into the trading accounts as a useful
24:28tool for you to use. Most accounts
24:30nowadays, especially on all the big
24:31brokers, have negative account
24:33protection. So, if you do go crazy,
24:35massively oversized a trade, and lose
24:36all the money in your trading account,
24:38you're not going to end up in loads of
24:39debt to a broker. Don't worry, they will
24:41just cut your trades off when things go
24:42bad to make sure that you don't go into
24:44the negative. So, what is margin? Well,
24:47margin is directly connected to
24:48leverage. Leverage is how much buying
24:50power your account has in terms of that
24:52ratio. So 1 to30 leverage means you have
24:5530 times the buying power of your
24:56account balance. Margin is the money
24:58that you need available in order to open
25:00these positions. So for example, if you
25:03wanted to open a $30,000 trade with 1
25:05to30 leverage, your margin requirement
25:08would be $1,000. $1,000 *30 $30,000. If
25:13you had a $30,000 position open and your
25:16account size dropped below $1,000, your
25:18trade would be closed because you
25:20wouldn't have enough margin to keep that
25:22trade open. So margins pretty much
25:24collateral for holding open positions.
25:26And it can be way smaller than the
25:27trades you actually take because of the
25:29leverage that the broker provides to
25:30you. My advice with leverage and margin
25:33is just to make sure you don't oversize
25:35trades. Keep your risk small to around
25:370.5 to 1% of your account balance. And
25:40trade with a leverage of 1 to 30 or 1 to
25:4350, no higher. You don't need higher
25:45leverage. And if you follow those rules,
25:47your margin should never cause a
25:48problem. Now, if your margin does get
25:50out of hand, you will get what is called
25:52a margin call. Generally, you're just
25:53going to get a notification or an email
25:55telling you to put more money into your
25:57account or the trades will be closed.
25:59This only happens if you oversize
26:01trades. So, if you follow my advice, you
26:02should never run into that sticky
26:04situation. So, now it's time for you to
26:06open your first trading account. I
26:08highly suggest that you open a demo
26:09account first of all. So, go over to the
26:11broker's website, set up an account with
26:13them, and then choose demo. If you
26:15choose live, you're going to lose
26:17hundreds or thousands of dollars. You
26:19may as well practice with fake money
26:20first cuz right now, you don't have the
26:22skill to make money. I promise you. So,
26:24congrats, you have your first trading
26:26account. But a broker is only half of
26:28the puzzle because you can't actually
26:30send trades directly through a brokerage
26:32account. You need a trading platform to
26:35send your orders through to your broker.
26:37Now, the trading platform that I suggest
26:39to you, the most popular one in the
26:41trading space, has been for many, many
26:43years, is MetaTrader. There are two
26:45variations, MetaTrader 4 and MetaTrader
26:485. They're both very similar. It doesn't
26:50really matter which one you select. Most
26:52brokers allow both. I choose MetaTrader
26:545 cuz it's a bit nicer, more refined,
26:56and more modern, but both will work.
26:58They're both available as desktop apps
27:00and mobile apps. I'd say get the mobile
27:02apps for now. Easier, more refined, and
27:04actually I do the majority of my trading
27:06on the mobile app still, even after
27:08eight years of trading. So once you have
27:10the app downloaded, you can go into
27:12there. You can log into your brokerage
27:14account using the credentials that they
27:16sent you when you set up your demo
27:17account with your broker. And here you
27:20have price charts, which we'll discuss
27:21soon. And you can actually take trades
27:23inside of this platform. So this is
27:25where the trading takes place. And now
27:27that you have a trading account and a
27:29brokerage account and a platform to
27:31actually send orders on, I think it's
27:33time that we talk about entry orders,
27:34stop-loss orders, and take profit
27:36orders. So, the first type of order that
27:38we need to talk about is the entry
27:40order. And this is what you use to get
27:42into positions once you found a trade.
27:44Now, we'll talk about the strategy of
27:46finding trades very soon. But first of
27:48all, once you found a position, this is
27:50what you need to know. So there are five
27:52different entry orders that we can use
27:54as traders to get into buy or sell long
27:56or short positions in the market. The
27:58first is a market execution. This is
28:01probably the most common way to trade
28:03and it is an immediate buy or sell in
28:05the market. So if you wanted to get in
28:07right this second, you would open your
28:08app, select market execution, click buy
28:11or sell, and you'd immediately be thrown
28:14into a buy or sell trade. The second
28:16order entry type is a buy stop. So a buy
28:19stop order is an order that goes above
28:21price and when price trades into that
28:23level it will trigger you into a buy
28:25which means if the market goes up
28:27through your buy stop and then continues
28:28going up you will be bought into the
28:30market and you will make a profit. Now
28:32the opposite of this is a sell stop.
28:34This is an order that goes beneath price
28:36and when the market trades into it, it
28:38triggers a sell trade or a short
28:40position. So you would place this below
28:41price. If price declines through the
28:43sell stop, it will trigger you into a
28:45sell and you'll profit from a price
28:46decline. The next type of order is a buy
28:48limit similar to the buy stop but it
28:51goes beneath price. So you would place a
28:52buy limit under price and when the
28:54market falls down into that level it
28:56will trigger you into a buy. So the idea
28:58is you want the price to come down to
29:00your buy limit level and then reverse
29:02and you will make profit from that buy.
29:03Now a sell limit is simply the opposite
29:05of that. It is a sell order placed above
29:08price and when the market comes into
29:09that level it sells you into the market
29:11and you will profit if the market then
29:13declines. So, those are the five
29:14different ways to get into positions in
29:16the market. Now, once we're in, we need
29:18ways to get out. And as you know, we
29:20have to manage our risk. Meaning, we
29:22want to let our winners run and cut our
29:25losses short. Now, we can actually use
29:27automatic orders to do both of these
29:29things so that we don't have to be
29:30constantly staring at the charts every
29:32time we're in a trade. This is what
29:33makes trading passive and allows you to
29:35go and live your life around the charts
29:37instead of having to be staring at the
29:38computer screen 24/7. So, the first is a
29:41stop-loss order. So, if you enter a buy
29:43at one level and the market goes down,
29:46you can place a stop-loss order ahead of
29:47time that will automatically close your
29:49trade before your loss gets too big. So,
29:51you can predefine how much money you
29:53would want to risk before you get into a
29:55position. And then, if you're wrong on
29:56that trade, it will take you out without
29:58your loss getting out of hand. A
30:00take-profit order is simply the
30:01opposite. It will automatically take
30:03your profits. So, if you buy, your
30:05take-profit is going to be somewhere
30:07above price. And once the market
30:08triggers that take-profit level, your
30:10trade will automatically be closed for a
30:12profit. So, you can actually cut your
30:14losses short and let your winners run
30:16automatically. You don't have to be
30:17around to actively manage the trade
30:1924/7. Stop-loss orders and take-profit
30:22orders are crucial. They are completely
30:24essential for balancing your
30:25risk-to-reward and making sure you have
30:27a riskmanaged strategy that gives you an
30:30edge in the markets. We're going to talk
30:31about this in the strategy section very
30:33soon and I'll show you how we use stop-
30:35losses and take profits to build out our
30:37trading edge. So now you are ready to
30:39take your first trade. But a big
30:41question that might be on your mind is
30:43how much money do you actually need to
30:44trade? You might see that your demo
30:46accounts come with $10,000, $50,000,
30:49$100,000 or more. This is a lot of money
30:52and most people don't have access to
30:53this. But unfortunately, if you want to
30:55make a living in trading, realistically,
30:57you need a minimum of $100,000 in
30:59trading capital. Anything less than this
31:01and you'll be working too hard to make
31:03substandard returns. And the money you
31:05generate really won't be as much as you
31:07could just make working a job. So, you
31:09are going to need 100 to 200, maybe even
31:12$500,000 if you want to make some
31:14serious money trading. But don't worry,
31:16because I know this is out of reach for
31:1799% of people. Saving this kind of money
31:20is impossible. I wouldn't have been able
31:22to do it myself as I'm sure the majority
31:24of you watching won't either. It is a
31:26large amount of money. But nowadays we
31:29have an industry called proprietary
31:30trading firms. They've been around for
31:32quite a while. But in the past few years
31:34they've really blown up and became very
31:36very popular in the trading space. Now a
31:38proprietary trading firm, also known as
31:40a prop firm, is just a company that has
31:43access to funds and they will give you
31:45either simulated or real funds to trade
31:48with and then you will trade with that
31:50money. make a return and then you get to
31:52keep a specific percentage of the
31:53profits. Generally, the process with a
31:55prop firm is number one, you prove that
31:57you can trade and make profit without
31:59losing loads of money. Number two, once
32:02you've done that, they give you access
32:03to a trading account. You then trade
32:05that account. And number three,
32:07providing that you make profit and you
32:08don't break their risk rules, they will
32:10pay you out generally around 70 to 80%
32:12of any of the profits that you make.
32:14These prop firms can give you massive
32:16buying power. Here's an account that
32:17I've got right now. This is $400,000 in
32:20simulated funds, but the profits I make
32:22on this account will be paid to me in
32:23real cash. Prop firm evaluations can be
32:26accessed anywhere from around $100 to
32:28$1,000. So, you don't need to worry
32:30about having hundreds of thousands or
32:32millions of dollars to trade with, you
32:34can get access to this. And the best
32:35thing is it's risk-free. Don't rush into
32:37prop firms just yet, though, because
32:39without the skill, they can become quite
32:40the money pit. All right, so you know
32:42the basics. You've got your trading
32:44account set up. You've got a broker. and
32:46you know that you need a good strategy
32:48if you want to become a winning trader.
32:50So now it's time to teach you about the
32:52charts. This is a price chart. And if
32:55you're going to be becoming a trader,
32:57you better get used to these because
32:58you're going to spend a lot of time
32:59looking at them, especially in the early
33:02days when you're studying and learning
33:03your strategy. So I am going to take you
33:06through the platform that we're using
33:07here, which is called Trading View. But
33:09first, I want to get you familiar with
33:11price charts and explain how they work
33:13and how we read them. So, first of all,
33:16I've just marked off two things. First,
33:17up here in the corner, this is where our
33:20asset is. So, when you're looking at a
33:22price chart, it's always going to be a
33:23price chart for a specific asset or
33:25currency pair. In this instance, we can
33:27see it is euro versus US dollar. So,
33:30this is the EuroUSD currency pair. Now,
33:33over to the right here, we have a price
33:36level. Okay, we have a price bar. And
33:38what we can see here is basically the
33:40price of an asset. Now, where the gray
33:42box is is exactly where price is right
33:44now. So, what this chart shows us is
33:47that this market Euro USD is trading at
33:511.11765. Now, this will fluctuate every
33:53couple of seconds as you're going to see
33:55because this is how markets move.
33:57There'll be small fluctuations in price.
33:59And this line here, all of this, this is
34:02the price reading. So, when we're
34:04looking at a price chart, it is simply
34:06showing us the readings of price
34:07movements. So we can see right now the
34:09price is at
34:111.11764. But we can see when we were
34:13down at this level here, the market was
34:15trading at
34:161.11431. Okay, just there. Now that's
34:20all this line is. It is just a line that
34:21shows us what the price is at any given
34:23moment and that will change accordingly.
34:25So we get a big messy line just like
34:28this. Now this price chart is what we
34:30read when we are doing technical
34:32analysis. And technical analysis is
34:34going to be pretty core to your
34:35strategy. and the main thing that you're
34:37focusing on in the early days compared
34:39to fundamental or macroeconomic
34:41analysis. Now, one interesting thing
34:43about this when we're looking at price
34:44charts, we are basically never going to
34:46be looking at line charts like the one
34:48you can see here on the screen. Instead,
34:50we will be looking at candlestick
34:52charts. So, this that you can see here
34:55is a candlestick chart and this is where
34:57we do our technical analysis. Now, the
34:59reason for this is when we're looking at
35:01a line chart, we don't really have much
35:02information. The only information that
35:04this chart gives us is what price is
35:06right now or what price has been in the
35:09past. But we can't actually see the
35:10buying and the selling. And we don't get
35:12any information from this chart except
35:14for the direct price. Now, when we're
35:16looking at a candlestick chart, each of
35:18these little blocks is called a
35:20candlestick. And each of these
35:21candlesticks gives us a significant
35:24amount of information as to who is in
35:26control, whether it's the buying or the
35:28selling that is taking control of the
35:30market. And we need to know this
35:31information because if the buyers are in
35:32control, we want to buy and if the
35:35sellers are in control, then we want to
35:37sell. So now let's break down what a
35:40candlestick is. This is the anatomy of a
35:42candlestick. We have two candlesticks
35:45here. The candlestick on the left is a
35:47bullish candlestick and the candlestick
35:49on the right is a bearish candlestick.
35:52Now, as we said in the terminology,
35:54bullish is the name we give to a market
35:56that is going up. Bearish is the name
35:58that we give to a market that is going
36:00down. So when we see a bullish candle,
36:02this is a candle that has closed higher
36:05than it opened. Now a candle, one of
36:07these here, indicates price movements
36:09over a given time frame. Now I'm going
36:12to explain time frames a bit more in
36:13depth, but we're going to call this the
36:151h hour candle for now, which means this
36:18candle is giving us 1 hour worth of
36:20price information. And every candle we
36:22look at will be showing us 1 hour of
36:24price action. Now the candle is made up
36:25of two parts. a body. And then we also
36:28have wicks, which are these sticks that
36:31come off the candle. As you might recall
36:33seeing just a moment ago when I showed
36:35you the candlestick chart, a candlestick
36:37that is bullish has an open price that
36:39is lower than the close price. So the
36:42open price is the price level that the
36:44market was at at the start of that
36:46specified time frame. So with this being
36:48the hourly, this would be at the start
36:50of 1 hour, price was trading at this
36:52level. For example, if we look over
36:54there to the price bar,
36:571.13166 would be the open price for this
36:59market. The close price is then where
37:01the market closed that specific time
37:03frame at, in this case, 1 hour. So, we
37:04can see once again looking over here to
37:06the right, the price bar is showing a
37:08reading of
37:091.13848. So, that means this bullish
37:11candle opened at this price level,
37:14pushed up throughout this hour, and
37:16closed at this price level. Now, a
37:17bearish candle would show the opposite.
37:19The open price is at the top of the
37:21candle. Then the candle moved down
37:23throughout the given time frame and
37:25closed lower. Now, generally when you
37:26are trading with candlesticks, you will
37:28mark them as different colors. You can
37:29see the bullish candle here is blue and
37:31the bearish candle here is gray. These
37:33are the colors I use because they're
37:35pretty, but it just differentiates which
37:37candles are bullish and which candles
37:39are bearish. Now, the candle body and
37:41the open and close price shows confirmed
37:43price movement within the given time
37:45frame. the wicks. So these little sticks
37:48up here and down at the bottom as well,
37:51these show rejected price action. So
37:54this is where we get a lot more
37:55information from these candlestick
37:57charts than we get from line charts. So
37:59basically confirmed price action is the
38:02hour started here, the hour closed here.
38:04This is a confirmed price movement. The
38:07hour started here and it closed down
38:09here. So this is a confirmed price
38:11movement. So the body is showing
38:12confirmed price moves. But the market
38:15may and pretty much always does move
38:18further out of the bounds of the open
38:20and close price. Meaning at some point
38:22within this specified hour, the market
38:24traded higher and it traded lower. But
38:27it only managed to close here. So this
38:29is what we see as wicks. And these wicks
38:32therefore show rejected price action. It
38:35shows a movement of where the market
38:37attempted to go higher. So at one point
38:39the candlestick would have looked like
38:41this. But before the hour was up, the
38:43market came back down and closed here.
38:45So the wick is rejected price action. It
38:48also shows that the market at some point
38:50was bearish and attempted to go down to
38:53pretty much that level down there at the
38:54bottom of the wick. But before the hour
38:56was up, we had a price movement up and
38:59obviously then we got the price move
39:00closing here. So the body is confirmed
39:03price action, the wicks are rejected.
39:05Now these candles and wicks show us
39:08different things. They show us the
39:09strength in buying and selling. So with
39:12this bearish candle, we see a market
39:14that the sellers were definitely in
39:15control because the market was able to
39:17move down from this price level to this
39:19price level. The rejected prices show us
39:21a bit more insight into what the market
39:23attempted to do. Now, the fact we have
39:25this wick up here shows us that the
39:27market did attempt to go higher. So much
39:30like what I just showed you, at one
39:31point this would have been a bullish
39:33candle, but eventually it came back down
39:35and rejected those higher prices. So
39:38when we're looking at the candles like
39:40this with wicks either side, we get a
39:42lot of information. It shows us the
39:43buyers attempted to go higher but then
39:45they failed and they attempted to go
39:47even lower but then some buying must
39:50have commenced in the market which kind
39:51of equalized the market and brought it
39:53back up a little bit so that it didn't
39:54close incredibly bearish. An important
39:56element to understanding these
39:58candlesticks is the concept of momentum
40:00and strength between buyers and sellers.
40:03So, when we're looking at a chart, the
40:04market is basically a massive picture
40:07that is drawn showing us market
40:08psychology. When we have incredibly
40:10bullish candles, like a candle like this
40:13that has little to no wicks, especially
40:15at the top, this shows us that buyers
40:17are clearly in control. Now, when there
40:19is more buying than selling taking
40:21place, markets go up. And when there's
40:23more selling than buying taking place,
40:25markets move down. So, to read momentum,
40:27we want to look at the candle bodies and
40:29the candle wicks. A strong candle body
40:32with little to no wicks like this shows
40:34strong momentum. So in this instance
40:37where we have a bullish candle where the
40:39open price is down here and the close
40:41price is all the way up here with little
40:43to no wicks. This shows uninterrupted
40:46buying. So we saw a massive influx of
40:48buyers driving the market up through
40:50that specified time frame. Now this
40:53obviously shows us buyers in control.
40:55That means the market is bullish. So we
40:57would therefore want to be buying. Now
41:00another thing that can show strength
41:02from buyers is the wicks. So let's say
41:05we have this market which started out
41:08bearish. Okay? So we have a candle where
41:11we've had a wick above and then we've
41:12had a lot of selling pressure commencing
41:14inside of this market. The market's
41:16attempted to get considerably lower
41:17pushing all the way down to here. But
41:19before the specified time frame, in this
41:21case 1 hour is up. If the market pushed
41:24up and ended up closing like this, this
41:27would be an incredibly bullish sign
41:29because what it shows us is that
41:31although the market attempted to go
41:32considerably lower, we saw an influx of
41:35buyers down here, which drove the market
41:37all the way back up, not just to the
41:39open price, but higher to form a higher
41:42closing price. What this tells us is
41:45that somewhere within this price action,
41:48buyers have taken this market by storm
41:50and injected a massive amount of buying
41:52pressure into it, driving us all the way
41:54back up, further than the price that we
41:56opened the time frame at. So, if we see
41:59a candle like this with a very large
42:01wick, this is also a big indication of
42:04strong bullish momentum. Now, the same
42:06goes the other way round. If we had a
42:08bullish candle that looked like this,
42:10but it ended up closing all the way down
42:12here, that would actually be a bearish
42:15signal because we've seen at some point
42:17within this time frame up here, the
42:19sellers took control and they not only
42:21drove the market back down to the open
42:22price, but they pushed it all the way
42:24into a considerably lower closing price.
42:27So with your new understanding of
42:29candlesticks and the momentum and the
42:31different characteristics of
42:32candlesticks along with the information
42:34they give us, now let's take a look at a
42:36chart and I'll show you how we can read
42:38the price movements of a chart with the
42:40information we've got. So this is Euro
42:42USD. You can see the time frame here.
42:45Okay, just there it is the 1 hour time
42:47frame. Now we could change the interval,
42:49but we're going to keep it at the 1 hour
42:51time frame for the duration of this
42:53small trading.
42:54So each one of these candlesticks,
42:56meaning each of these little boxes, is
42:58showing one hour of price action. Okay?
43:00So inside of each one of these candles,
43:02if we were to drop the time frame, we
43:04can drop through multiple different
43:05increments to the 15minute, for example.
43:08Each one of these 1 hour candles,
43:1060-minute candle, would have four
43:12smaller candles within it. Right? So you
43:14can actually trade in different ways.
43:16Now, let me just block one off real
43:18quick. We'll block off the latest
43:20candle. So we're going to push that
43:22down. Now I'm going to drop to the
43:2415minut time frame. So if we go here, we
43:27go to 15, you can see that we have
43:30multiple smaller candles. Okay? So we
43:32have 1 2 3 4 5 6 because we have around
43:35an hour and a half of price action
43:36captured just there. Now if we went even
43:39lower to the 5minut time frame, you can
43:41see that the amount of candles triples
43:42once again because we've now got 1 2 3 4
43:445 6 7 8 9 10 11 12 13 14 15. Okay, so
43:48there's more candles within each of the
43:50larger candles we look at. Now, we could
43:52also go up and look at a daily time
43:54frame. Now, everything we've just looked
43:55at is pretty much just going to dissolve
43:57into one individual candlestick, which
44:00is going to be the candlestick just
44:01here. Now, on the hourly time frame,
44:03we're going to have around 24 individual
44:05candles inside of each day. Okay, nice
44:08and simple. So, with time frames out the
44:10way, then let's have a look at the
44:11momentum that we've just discussed. So,
44:13obviously, one of the core things we
44:15want to do when we're trading a market
44:17is work out if a market is bullish or
44:20bearish. If a market is bullish or going
44:23up, then we would want to buy. If a
44:26market is bearish and going down, we
44:29would want to sell. Markets will change
44:32quite a lot, but we can get different
44:34trends. We can see the different
44:35directions of the market across
44:37different time frames. I'm going to
44:38teach you a couple of concepts and a
44:39very basic strategy that you can start
44:41to practice with. But first of all,
44:43let's just look at some of the
44:44individual areas of candlesticks. So we
44:46discussed the concept of momentum. When
44:48we have strong candles with little to no
44:50wicks, we know that that market is
44:52either bullish or bearish. Now in this
44:54instance, we have many blue candles. You
44:56can see on these blue candles, we don't
44:58have many wicks at the top. Okay? So
45:00wicks at the top just like this one here
45:02show some rejections. Wicks at the top
45:04here can indicate selling. But you can
45:06see that apart from this candle, we
45:07really have a lot of strong candles with
45:09very small or no wicks at the top. These
45:12candles are strong. They don't have many
45:13wicks. This is showing uninterrupted
45:15buying. So in a market like this one, we
45:19would be looking to buy. If we take a
45:21look at some of the downward price
45:23action, let's take a look at this area.
45:26Once we see some strong bearish candles,
45:28so we see these large sell candles with
45:32only little or no wicks underneath them.
45:35This is a market that is moving down. So
45:37this is a market of which we would want
45:39to sell. Okay, it's going to be a
45:41bearish market when we're in a market
45:43like that. Our focus is on selling. Now,
45:45there's a bit more to it than that
45:46because of course, as you can see, the
45:48selling didn't last forever. And as you
45:49can see, the buying didn't last forever.
45:51And we do need to find opportunities to
45:52buy or sell. We can't just guess our way
45:54into buys and sells. Eventually, each
45:55movement will come to an end. I'm going
45:57to show you two concepts very soon which
45:59will help you to start understanding how
46:00we can work out which way the market's
46:02going and then how we can start to get
46:03in and get out with a profit. But for
46:06now, just understanding this initial
46:08candle theory where we've got strong
46:10bullish candles and strong bearish
46:12candles and we always want to buy when
46:13we see these bullish candles and we want
46:15to sell when we see these bearish
46:16candles is the first step to
46:18understanding things. So that is it.
46:20That is the first step into reading
46:22candlesticks. Okay. So as we said
46:24previously, one of the biggest things we
46:25want to do when we're trading a market
46:27is identify the direction. We need to
46:29know the trend. Now we have three
46:31phases. I briefly covered this earlier
46:33in the class. We have uptrends,
46:35downtrends, and consolidation. Now, an
46:38uptrend is when a market is clearly
46:39going up. A consolidation is when it's
46:41going sideways, and a downtrend is when
46:43the market is going down. Through
46:45uptrends, we want to buy. This is where
46:47buying opportunities present themselves
46:49and where we make the most profit from
46:50long positions. In downtrends, we want
46:52to sell. This is where profit is made,
46:54going short in the market. Consolidation
46:56is pretty much just a place where money
46:58gets eaten. We want to practically avoid
47:00trading all consolidations. There are a
47:02few strategies you can use that I use
47:04myself, but it's a bit more advanced.
47:05So, for now, we're going to focus on the
47:07trends. This is all you're going to need
47:08to really get started and make some
47:10money trading. Under this market
47:11structure theory, we are reading the
47:13market through highs and lows. So, we
47:16are always looking for higher highs and
47:18higher lows in an uptrend. And in a
47:21downtrend, we are looking for lower lows
47:24and lower highs. I've marked on here HH
47:27and HL. This is higher high and higher
47:30low. here is LH and LL. This is lower
47:33low and lower high. So, focusing in on
47:36this uptrend, first of all, then when we
47:38see a market that is forming higher
47:39highs and higher lows, we know that this
47:41is a buying scenario that we want to buy
47:43through. Now, a higher high is literally
47:46just a high in the market printed in
47:47price that is higher than the previous
47:49high that was printed. Okay? So, every
47:52time we get a high form like this in a
47:54market, then we have this market
47:56pullback. When the market pushes through
47:58to a new high, we have a higher high and
48:00we have a validated previous higher
48:02high. So if the market is continually
48:04printing upward movements like this, we
48:07know that this is a buying scenario. And
48:09providing the market stays above the
48:11higher lows, it will remain a buying
48:13scenario until things change. So in the
48:16case of the downtrend, it's the
48:17opposite. Every low that the market
48:19prints is lower than the previous low.
48:22and every high that the market prints is
48:24also lower than the previous high. As
48:27long as that stays true, the market will
48:29continue to be a selling opportunity.
48:31So, we only want to sell here and we
48:33only want to buy here. Now, eventually
48:35the market will shift. So, let's focus
48:37in on this example here. Every time we
48:40form a lower high, this becomes an
48:42important point of structure. So, we
48:44could mark these highs out like this.
48:47And basically, if this breaks, that will
48:49be a change in the trend. So to
48:52determine where a downtrend is ending
48:53and an uptrend is beginning, we would
48:55want to see price action like this where
48:57the market stops forming lower lows and
48:59lower highs and breaks up to form a
49:01higher high. If we push up here and we
49:04form a higher high in this market, this
49:06is a market that has now changed
49:07direction. And instead of expecting to
49:09sell, we should now be interested in
49:12buying because we expect following a
49:14higher high that a higher low is going
49:16to form, which would be this price point
49:19here. And this realistically is where we
49:21as traders want to try and get into this
49:23market. The same is true for uptrends.
49:27So if we clear this consolidation from
49:29the chart real quick, we would see this
49:32higher low would be our interesting
49:34point of structure. And if the market
49:36continues to trade above this higher
49:38low, that's fine. We continue buying.
49:40But if the market breaks down and forms
49:42a lower low just here, this becomes a
49:45market of which we should now be looking
49:47to sell. we can anticipate that the
49:49market is going to form a lower high and
49:51continue trading into new lower lows. So
49:53this just here is the crossover point
49:56where we stop being bullish and we start
49:58being bearish and we would then expect
50:00the market to move into a bearish phase
50:02like this. Now you understand the basics
50:05of price charts. Let's talk about
50:07strategy. Now there are many different
50:09technical analysis methods you can use
50:11to analyze charts, but the best is price
50:14action. Many beginner traders focus
50:16instead on indicators, but there is a
50:19big problem with indicators and that is
50:20that they lag and they show past
50:22information. Now, there are many
50:24different subsections of price action
50:26trading. What the best method is is
50:28subjective and down to personal
50:30preference and the findings of each
50:32individual trader. But from my 8 years
50:34of experience and what I found works
50:36best for me, as well as the thousands of
50:38students who have used my systems to
50:39find success, I use and I'm going to
50:41teach you a set of concepts that I call
50:44logic-based concepts. And don't worry,
50:46for this class, we're going to keep it
50:47very simple, but I'm going to outline a
50:49strategy that you can use to start
50:51winning. So, let's have a look at some
50:52of those concepts now. So, remember I
50:54said in order to make money, we need to
50:56be moving with the trend. Whether it's
50:58an uptrend or a downtrend, we need to
50:59know which way the market's going. Well,
51:01the best concept that we can use to do
51:03this and to make sure that we are always
51:05moving with the trend is market
51:07structure. Now, we're going to take a
51:08look at a real market and I'm going to
51:10break down that structure concept I just
51:12showed you, but in real time on a real
51:14price chart. So, we're looking at Euro
51:17AUD, which is the Euro versus the
51:18Australian dollar. We're looking at the
51:20hourly time frame, just keeping it
51:21relevant to everything we've covered so
51:23far. We're going to start by drawing the
51:24trend. Now if we take a look initially
51:27at this phase from this low up to this
51:30high we can see that this is evidently
51:32an uptrend. So let's mark this out using
51:35the higher high higher low format. So we
51:38have initially our low in the market
51:41which is here. From there we have this
51:43push up and we form this high. The
51:46market then comes up and forms a lower
51:49low at this level just here. And then we
51:52get a push up to form a new higher high.
51:56Then we pull back. We form a higher low.
51:59And we continue to do this all the way
52:01through this trending move. Okay? So
52:03every time the market pushes up and
52:05forms a new higher high and then forms a
52:07new lower low, we basically validate a
52:10continuation of the trend, which means
52:12we should expect the market to continue
52:14moving up. Now we would then look for
52:16opportunities to buy throughout this
52:18uptrend. Now, obviously for entries, for
52:21actual opportunities to get into trades,
52:23we're going to need new concepts, which
52:25I'm going to teach you very soon. But
52:27you would only be looking to buy while
52:29the market is continually forming these
52:30highs, higher highs and higher lows.
52:32Okay? Now, then we push up into this
52:36second phase. This area here, this is
52:39what we call the consolidation. So, you
52:41can see at this point, the market is not
52:43really making any movements. It's just
52:45going sideways. Then we have a pull down
52:48lower and this is where we begin a new
52:51downtrend. So as we can see the higher
52:54low that we should keep in mind is going
52:56to be this one just here. This is the
52:58final higher low in this uptrend. So to
53:00draw it out we can pretty much simplify
53:03this to we've got this high, we've got
53:05this higher low, we've got a higher
53:06high, we've got a higher low, higher
53:08high, higher low, and then we have this
53:10higher high. Higher low, higher high.
53:12Okay, that is the simplified structure.
53:14Now, you can see it's messier in person
53:16than it is in the trading examples,
53:17which is why I'm showing you this. Then,
53:19we move into consolidation where the
53:21market doesn't form any new highs or any
53:23new lows. We do this for quite some time
53:25to be honest. As you can see all the way
53:26through this price move as well, we
53:28pretty much are just consolidating at
53:30this point. Now, there would be
53:31opportunity for trades on some of the
53:33lower time frames like the 15minut, the
53:3430 minute, the 10-minute, but on this
53:37hourly, we are just consolidating. Okay.
53:40When the market then reaches this level
53:43just here, we shift into a downtrend.
53:47So, we've actually stopped forming
53:48higher highs and higher lows and instead
53:51we've now ended the consolidation with a
53:53break to the downside. So, because we
53:56formed a lower low here, we would then
53:58anticipate the same formation the other
54:00way. We have a lower high. Then we come
54:03down and we form a lower low. Then we
54:06form this lower high. Then we form this
54:10lower low. Then we have a lower high
54:13once again at this level. And then we
54:15continue to creep down in this lower low
54:17lower high format. Okay. So that is how
54:20we identify trends. Now as I've said it
54:22is a lot less neat in real time than it
54:25is when you are taking a look at a
54:27example. Right? But you need to
54:29understand that it is very simple in
54:31reality. Even if a market is messy,
54:33we're always just going to be looking
54:35for where those highs and those lows in
54:37the market are printed. And wherever the
54:39low forms, the meaningful low in an
54:41uptrend, you want to buy above that
54:43level. And when it breaks, that is when
54:45you start shifting into this lower low
54:48lower high format, which provides
54:50selling opportunities much like what
54:52we've seen here. So, in line with those
54:54examples I showed you before, we have
54:56this uptrend, we have a consolidation,
54:59and then we have a downtrend. As we have
55:01said, we want to buy through uptrends.
55:04We want to stay out during
55:06consolidation. So, take no trades
55:08through this unless we're working with
55:09lower time frames, which as a beginner,
55:11I would suggest you don't do. And then
55:13in the downtrend, we would look for
55:15selling opportunities or shorts. So,
55:17uptrends for longs, downtrends for
55:18shorts, consolidations for just taking a
55:21day off. Once you've worked out which
55:23way the market's going by identifying
55:24the trend using those market structure
55:26concepts, you obviously need to find
55:28places to get in and out of the markets.
55:30And this is where supply and demand
55:32comes in. Now, let me quickly explain
55:34the theory behind this. It's very
55:36interesting and it's also very
55:37important. So, market structure is
55:39excellent for working out the direction
55:41of trades. We want to buy in uptrends,
55:43sell in downtrends. But now, we have to
55:45actually find opportunity to get into
55:48positions. And this is where supply and
55:50demand theory comes in. So with this
55:53simple concept supply and demand paired
55:55with market structure, you will have a
55:57simple trading strategy that you can
55:59start to apply. Now to explain the
56:01theory of supply and demand, then when
56:03we have an upward trending market like
56:05this, the market is going to form
56:07consolidation areas within. This is
56:09known as a demand zone. Now, I'm going
56:11to show you what this looks like on a
56:12chart in just one moment and how to plot
56:14it. But basically, the market is going
56:16to stall out and then continue moving.
56:19The same happens in a downtrend. The
56:20market during its downward moves will
56:22stall out at some point before it
56:24continues selling. And that is going to
56:26form a supply zone. Okay? So, supply and
56:30demand is basically referring to zones
56:32in the market. And basically how it
56:35works is an auction theory. when we see
56:38a place in the market where price has
56:41stalled out before a large rally, it
56:43shows us buyers happy to buy at this
56:45level. Okay? And if we see the same on
56:48the selling side, it simply means
56:50sellers are happy to sell at this price
56:52level. Now, if we think about what a
56:54price chart shows us, it is showing us
56:56the price of an asset. Right? This price
56:59B here shows us the price of an asset.
57:01So in this example of the supply then if
57:04we seen the market stall out here and
57:06then continue to push down into a large
57:08selling phase from this price area this
57:11would be around
57:131.70900 to
57:151.70500. That price range just there is
57:18seen as a price area or a range in price
57:21that sellers were happy to sell at. Now
57:23the reason we know that is because the
57:25market's driven by selling and buying,
57:27right? which means if we've seen a large
57:29fast selling movement coming from an
57:31area of consolidation or sideways price
57:32action supply zone that shows us that a
57:35lot of selling took place at that level.
57:37Now the concept then is if the market's
57:39now pretty cheap it's not going to be a
57:41good level for people to sell at.
57:43Traders would want to see a premium
57:44price to sell from. So they'd be looking
57:46for a pullback towards an area that was
57:48previously seen as a premium. When the
57:51market pulls back and trades into this
57:53premium price area, that is therefore
57:55going to be an area where selling will
57:57take place again simply because if
57:59people saw this as a premium before,
58:01they are going to see it as a premium
58:02now when the market is even cheaper.
58:04Take a look at that from a buying
58:05perspective. If the market pulls back to
58:08a demand, this is seen as a discount.
58:10Let's say you wanted to buy a car and it
58:12was a reasonable price and you were
58:14happy to buy it, but you didn't. Then
58:16the price of that car goes up
58:18dramatically. Well, then if the price of
58:19that car comes back down to a reasonable
58:22level where it was previously that you
58:24already saw as a reasonable price,
58:26you're going to buy that car or you're
58:27more likely to do that than you would be
58:30if you were buying at a premium. So this
58:32is the theory of supply and demand. When
58:34there is demand for an asset, the market
58:36is going to continue to go up and demand
58:38comes in at these favorable discount
58:40price levels. The same happens with
58:41supply. Supply of an asset will enter a
58:44market as people sell into the market
58:46when the market gets to a premium price
58:48point. And this supply and demand is
58:51exactly how we are going to get into
58:53trades. That's a solid beginner strategy
58:56for you to use. But in order to do your
58:59analysis, you need to have an account
59:01with tradingview.com so you can access
59:03this charting software. For the next
59:05couple minutes, I'm just going to
59:06introduce you to this platform. I'm not
59:07sponsored, but it's pretty much what
59:08every trader uses nowadays. Uh including
59:11myself. have used it a very long time.
59:12Competition does not exist. It's just so
59:15good. So, tradingview.com, you need to
59:17go there, make an account. I believe
59:19they have free accounts. They also have
59:20paid accounts. You only need a cheap one
59:22if you are going to get into this.
59:24Seriously, you don't need the super
59:25expensive packages to begin with. This
59:27is a platform simply for charting. Okay?
59:30So, this is where we do our technical
59:32analysis. I'm going to show you how to
59:34set it up and how it works so that you
59:36can go and do this for yourself uh in a
59:38short while. So, we've got first of all
59:40your asset. This is where you choose the
59:42asset that you want to trade. You can
59:44type in any asset here. EuroUSD. That's
59:47going to take you to EuroUSD chart.
59:49Here's a trade I'm in right now. Uh then
59:51we could go to
59:52GBPUSD. This is going to take you to the
59:54pound versus the US dollar. You could
59:56type in anything, right? Gold XUSD.
59:59That's going to take you to the gold
1:00:00chart. Now, past that, we go on to time
1:00:02frames. You can highlight time frames
1:00:04that you like to use quite often. this
1:00:06example here. Uh, I've got my 1 minute,
1:00:092 minute, 5 minute, 10 minute, 30, 1
1:00:10hour, 4 hour, daily, weekly, monthly.
1:00:12So, I've actually probably got too many
1:00:14highlighted that I don't I don't
1:00:16particularly use these on every single
1:00:17trade I'm looking at, but it's always
1:00:19just good to have them there. Now, when
1:00:21you choose a time frame, it's going to
1:00:22take you to the chart for that time
1:00:25frame, right? So, the 4hour time frame
1:00:26here, you can see this is kind of a
1:00:27zoomed out look where we have less
1:00:29candles and a more averaged out picture.
1:00:32If we go to the 1 hour, we see we're
1:00:34actually looking at the same information
1:00:36but broken down. Uh there's now four
1:00:38candles for every one candle on the
1:00:39hourly time frame. We go to the weekly,
1:00:41things completely change because
1:00:43obviously on the weekly we are looking
1:00:44at significantly different price action.
1:00:46All right. Now, once you've done that,
1:00:48you've got your asset and your time
1:00:49frame, you could start doing analysis.
1:00:52Now, first things first, we also want to
1:00:53make sure we're on the candle chart. So,
1:00:55you can favorite that. I'm going to
1:00:56favorite that now. You don't need line.
1:00:58You don't need none of this drama. It's
1:01:00all very weird. uh candles. It's just
1:01:02nice and simple. Now, if you want to
1:01:03customize the way your candlestick chart
1:01:04looks, you can just doubleclick the
1:01:06candles. Then you have canvas and you
1:01:08can change the colors. Okay, you can
1:01:10pick any colors you want to make up the
1:01:12chart so that you've got specific colors
1:01:15that you want personalized to you. I use
1:01:17this blue and this gray. There they are.
1:01:19If you want to copy mine, I know a lot
1:01:21of people do use this one um after
1:01:23watching my videos. Once you've got your
1:01:25chart set up how you want it, now we
1:01:27need to move over to these tools. So
1:01:29when you're doing your analysis, as
1:01:30we've just done, you're going to be
1:01:32focusing on market structure and supply
1:01:34and demand. So for this, we just really
1:01:36need the trend line tool. That is this
1:01:38tool just here. I wouldn't recommend
1:01:39using it for trend lines because trend
1:01:41line trading is not a great way to
1:01:42trade. You know, head and shoulders,
1:01:44chart patterns, trend lines, wedges,
1:01:46triangles. I would avoid all of that
1:01:47stuff, okay? But you can use this trend
1:01:49line tool to mark out structure. So once
1:01:51you've got your trend line tool, you
1:01:53would just use it to mark highs and lows
1:01:54in the market. Uh when the market forms
1:01:56a new high, that's going to be your
1:01:57higher high. can mark that with a line.
1:01:59When that breaks again, that's going to
1:02:00validate you either want to buy or for
1:02:02example, if the market breaks a lower
1:02:04low, you would know then you want to
1:02:06start selling. Okay, so that's one tool
1:02:08that you're going to need is the trend
1:02:10line tool. Past that to mark supply and
1:02:12demand zones, you want to use this
1:02:13little rectangle tool. Nice and simple.
1:02:15You just then find your areas of supply
1:02:17or demand, mark them on the chart using
1:02:19this rectangle tool that's going to line
1:02:21you up with your demand, right? So from
1:02:24this analysis, we would have our breaker
1:02:26structure there. Because the market
1:02:27broke structure, we could place our
1:02:29demand. If the market comes back to this
1:02:30level, we might want to buy here. Okay?
1:02:32So we could be looking for the market to
1:02:33pull back and then continue trading
1:02:36higher. Realistically, the only tools
1:02:38you're actually going to need right now
1:02:40are these, the trend line tool and the
1:02:42rectangle tool. You don't actually need
1:02:43the majority of the rest. You could use
1:02:45this path tool just to kind of forecast
1:02:47things, but aside from the structure and
1:02:49supply and demand, that's where you're
1:02:50beginning now. This is all you need. And
1:02:52I want to tell you now, you really do
1:02:54not need none of these indicators. Uh I
1:02:55use this one for sessions, which shows
1:02:57us different times of day to trade at.
1:02:59Um but that's the only thing I use,
1:03:01right? So you're going to see if you're
1:03:02getting into trading, you're probably
1:03:03going to get a lot of BS information
1:03:06about things like Ballinger bands, RSIs,
1:03:08MACD's. You don't need none of that
1:03:10stuff, okay? It is counterproductive. It
1:03:12will keep you losing for a while. Focus
1:03:14on the price action like I've taught
1:03:16you. Now, the only other thing you're
1:03:18then going to need is your trade setup
1:03:22tool. So, if we click on this tab just
1:03:24here, we have long position and short
1:03:27position. These are the only things we
1:03:28really need. Going back to this idea, if
1:03:31we wanted to buy here, we can use this
1:03:33to work out how big our stop loss is and
1:03:35things like that. Then, we can use a
1:03:37risk calculator, uh, like the myxbook
1:03:40one to work out how much we want to risk
1:03:42on a trade, right? So, if we wanted to
1:03:44risk $100 on this trade, we could mark
1:03:45this up. Now, this 76.742 tells us this
1:03:48is a 76 pips stop loss. So, then we
1:03:51would go onto our calculator. We would
1:03:53type in 76 pips, $100 risk, and then it
1:03:56would tell us exactly what size our
1:03:57trade should be. Then, we can use that
1:03:59to place our trade. And then, of course,
1:04:02as we can see with the 9.66, that's
1:04:05showing us how much of a return we'll
1:04:06make. So, for a trade like this, we know
1:04:09we were going to make $9.66 for every $1
1:04:12we risk if this trade wins, right? So,
1:04:14if we risk $100, this would make just
1:04:17under $1,000 back in return if the trade
1:04:19won. And if it loses, we lose $100. But
1:04:22that's it. Long position and the short
1:04:24position tool, both completely the same.
1:04:26You just amend those to wherever you
1:04:28find your trades using market structure,
1:04:30which we can mark with this trend line
1:04:32tool, and supply and demand, which we
1:04:34can mark with this rectangle tool. H you
1:04:36can favorite all those as well if you
1:04:37want to. And then go on a favorites bar
1:04:39like this. And past that, that's
1:04:41everything you're going to need. So,
1:04:42that is how you set up Trading View.
1:04:44That's the chart platform I highly
1:04:45suggest you start to use so that you can
1:04:47do some practice work. So now I've
1:04:49taught you all of the basics, but there
1:04:51is still a lot more to learn. There are
1:04:54a few ways we can do this. First is a
1:04:56free course that I have. This is going
1:04:58to help you to build your first trading
1:05:00system. Simplify trading from day one so
1:05:02you can improve your trades before you
1:05:04even begin and find success in trading.
1:05:07There is a link at the top of the
1:05:09description for this. The second way is
1:05:11in my full trading academy which is a
1:05:13fullyfledged complete educational
1:05:15program. I have live calls and classes,
1:05:17a global community and a massive course
1:05:19for you to go through where I teach you
1:05:21the frameworks and systems that get me
1:05:23results like this on a yearly basis and
1:05:26got my students results like these.
1:05:28These are all real money results,
1:05:30profits made by students using the
1:05:33systems that I've taught them. And
1:05:35alongside the learning, you can make
1:05:36money as well. This is a trade call that
1:05:38I recently sent which actually created a
1:05:4075% return in just 1 month. So, if
1:05:43you're interested in a full education,
1:05:45use the second link in the description
1:05:47to check that out. And if you don't
1:05:49think you're ready for the free course
1:05:51or the academy just yet, head over to my
1:05:53YouTube channel because there is so much
1:05:55to learn there. I've posted hundreds of
1:05:57videos by this point, all of which can
1:05:59help you to change your trading for the
1:06:01better. So, thank you for watching. I'll
1:06:03see you in the next video.

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