Lesson 1 Flashcards
How many traders lose in Forex?
70-90% of traders lose and end up quitting. This is primarily because the trade the same way. This is as a result of retail methods training being the most accessible on social media.
What is liquidity?
Liquidity is where the orders, in the form of buy and sell stops, is in the market
What makes the market?
Willing buyers and willing sellers at every price point.
What’s the purpose of consolidation?
It creates sentiment in the market, so traders can speculate. This results in orders being placed above and below the consolidation range.
What will you see before a large move?
Before a large move, a high or low will generally be taken out.
Why should we take note of highs and lows that are taken out?
That’s where liquidity is sitting, above old highs is buyside liquidity and below old lows is sellside liquidity.
What makes the market move, or what is the market engineered to do?
It takes liquidity from 1 area and delivers it to anther area; eg buyside to sellside, and vice versa.
What should you look for if you want to sell short?
Wait for an old high to be taken out. This is generally a precursor to a significant move to the downside.
What should you look for if you want to buy long?
Wait for an old low to be taken out. This is generally a precursor to a significant move to the upside.
Where’s the best buying opportunities?
Under old lows
Where’s the best selling opportunities?
Above old highs
What does the market do?
Bring buyers to sellers and sellers to buyers.
