Day Trading Forex Live – Advanced Forex Bank Trading Strategies

Part 3 – Habits Of Successful Forex Traders: Forex Trading Strategy

June 26
04:46 2012

Over the last few weeks we have broken down the habits for successful forex traders. In part one we covered risk/reward and its importance to profitable trading. Last week we discussed patience, and selectivity as a second mark of all profitable traders. In the final part of this forex training series we will break down forex trading strategies. After all how can one determine risk/reward or selectivity without an exact trading strategy in place?

The Consequences Of Following The Pack

Have you ever played the game Lemmings? Essentially one lemming follows the rest and your goal is to guide them through a course without leading them off the cliff. If the leader falls the rest follow. Retail forex traders unfortunately follow the mold of lemmings, and do so nearly without exception. Figuratively speaking the lemmings are falling off the cliff in the forex market, and every retail trader has to make a choice for themselves! Either follow the path of those who came before you or blaze a new path few learn to follow?

Its important to think logically when dicussing something as important as the forex trading strategy you plan to use. In an effort to gain a clearer picture lets answer a few questions.

1.) Is it logical to think that hundreds of thousands of forex traders are “doing it wrong”? Or would it make more sense that the few mainstream trading strategies are failing them?

2.) Retail strategies rely on the market going up to trigger a buy, and on the market going down to trigger a sell. On the other hand smart money pushes the market down to induce selling pressure to buy into, and drives the market up to trigger buying pressure to sell into. How can retail traders ever expect to succeed when the strategies they use put them in direct conflict with the banks that actually drive the forex market?

I believe every retail trader knows knows deep down the mainstream strategies are failing them. Time after time traders follow the pack because they simple do not know another way. Your reading this probably thinking about all the promising strategies and systems you have used over the years. What do they all have in common? They all try to apply rules to a market you don’t control. The banks control the forex market, and it is their strategy we must learn. When we do so everything else falls into place.

Forex Trading Strategies Of Profitable Traders

Eventually everyone must come to realize that its not the hundreds of thousands of forex traders who are doing something wrong, but rather its the mainstream strategies that fail traders. Every profitable forex trader has come to this realization and has thus broken the mold. As we all know the banks rule the forex market, as just 10 banks control well over 50% of the daily volume. Knowing this we can come to one simple conclusion. The banks MUST fight for liquidity every day and this is seen in the form of manipulation.

This manipulation gives us exact trade setups we look for and a trade plan we can follow. If we stick to this it forces us to remain patient and wait for the banks to reveal their hand before taking the entry. Lack of a clear decisive forex trading plan kills many traders. It leads to a lack of confidence when taking trades, and an inability to pull the trigger at the opportune time.

It is also important to note that trading with smart money automatically puts us in high risk/reward trades. Smart money accumulates positions over the course of time and as such it takes a period of time for them to exit that position. Therefore once we have identified the  manipulation we have a high probability of seeing the market trend as it will take time and serious price improvment for them to exit the position profitably. This allows us to often see 2 or 3 times the reward over our risk after a trade is taken.

Your Plan Of Action

I want to end this article series with a bit of a personal message. Hopefully everyone reading this has gone through at least some of the site. If not we strongly urge you to do so. One thing you will quickly realize is that we only put content on the site that we feel benefits our readers.

I urge you to think about the information within this training series. Examine your trades and the risk reward you use. Have you had any success with the mainstream strategies everyone else is using? Do you have an exact trading strategy your confident it? Without these fundamental building blocks in place failure is as sure as the sun rising tomorrow. Trading can be simple. Learn to track the activity of those who actually drive the forex market. Trying to apply rules to a market that we do not control is a foolish undertaking. Smart money searches for the orders of retail traders every day and we can either learn to trade with them or continue to provide them with profit. If you would like to learn more we urge you to check out our smart money forex trading course and member forex forum here.

If your a current member reading this article make sure your making use of the daily support we give members….listen to the daily market review/preview, post your trades in the forum, join the live training room if your schedule allows, chat with others in the live member chat. If your not a member and have questions why don’t you send us an email? We would love to hear from you!

If you didn’t read part two you can check it out here – Part 2 – Habits Of Successful Forex Traders: Developing Patience


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  1. Ironn
    Ironn June 26, 06:27

    Thanks Sterling, all 3 articles were excellent, and very insightful!

    Reply to this comment
  2. Michael Sterling
    Michael Sterling June 26, 09:12

    I will be retiring from my present position near the end of September of this year, and moving into full time Forex trading. I will be joining your site as a member fairly soon to finish rounding out my thinking process. My trading is fairly profitable, but I am always looking for answers to my next questions that float down to me like leaves from a tree. 🙂
    I look forward to your insights and becoming a member.

    Reply to this comment

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