hello everybody today I will tell youthe Strategy how to manage your Forex Trade or futures or stocks or any othertrade okay that involves price action trading okay to maximize your profitsor returns before I start I get what is the most common mistake that you evermade when you are trading when you are trading when you are on the desk whatis the most common mistake that you made most of the times I get the email sayingyou know what Ali I am I have taken the best trade in the world but you know itstopped me and then it went higher and it moved like hundred and two hundredpips so what is the wrong thing that you are doing how I am managing my swingForex trade that I can assure you so today I have I have a great example oneuro dollar the most important things when trading forex market is that youhave to be a disciplined trader it's all about the trade management you can takethe best trade in the world as said and you can just choke it okay and you canjust take the worst trade and then you manage it so beautifully keeping risk toreward in your mind okay in your favor and then get out with the with theprofit okay so today I have a nice example on EURUSD it's again a Forexpair let me zoom out a little bit first let's switch to weekly chart oneuro dollar this okay I took this trade on 14th of July right here righthere is my entry and the chart you are watching in front of in your in front ofyour screens is a weekly chart so I've been holding this trade for an aboutits new year its 2018 and now we have almost let's say nine and a half monthsinto the trade I am holding the trade definitely I will share my steps but oneby one what start strategy I use for swing trades to maximizemy profits because forex trading is such a beautiful thing that if you are adiscipline trader okay if you are a disciplined trader market will pay youthe market will pay you huge all you have to do is keep your nerves okay andbe disciplined trader.
Now the question arises that how to be a disciplinedtrader? alright how to be how to manage it for it for like how to wait for ninemonths it's almost we can call it a year now after two three months it will thistrade will be a year trader and I'm still holdingwill i still hold? if the market is dropping yes of course yeah does thisdrop panics me of course not! I have seen a drop of like five hundredand twenty let's suppose five hundred pips so how about this drop this drop isjust four hundred and fifty pips so what have happened okay I saw a drop of whatdo you call it five hundred pips but again I saw a gainof hundred pips a thousand bit sorry this time I'm watching a drop off Idon't know maybe it might drop more maybe 500 pips lets say I might expect one more push to the upside okaymaybe here and I might exit everything out here so where to takeyour profits out where to take your stop-loss where to manage your riskwhere to put your stop-loss maybe if I will be way aggressive I will be stoppedout here I will say you know this is 200-day moving average blah blah blahyou know this is this has closed under the moving average okay so I'm gonnatake a loss I'm gonna take my my position out it has already retracedmore than 50 percent sorry about the color this color looks so ugly okay ! so it has already retraced like 23.
6%left back to zero so should I take it out no I managed it I keep my nervesokay so same thing you have to do first I will disclose why I took this trade oneuro dollar okay and how I managed the same trade for to hold on to like tenmonths so let's get started.
Huge sell-off on Europe if it zoom out a shota little bit we can see huge sell-off for almost a year okay huge sell-off andthen after this sell-off what happened the Euro started to move in a range howat this point of course we will never know if this thing is going to bearranged no of course not but yes when we will beable to know we will be only able to know if this thing is range maybe hereok when we see that this price is rejecting the highs every single timethey rejected the highs here here here and where they're going they're tryingto go lower so this point, at this point at this type of point we know this is a range you candraw anywhere we have a rising support from higher time frames maybe to monthlylevel okay so we have we have rising support we know the price might stophere price stopped here quickly the snap lerdropped new sellers skyrockets back to the highs right we have plenty oftouches in this it that they might stop here as well right this is the time okaywhere the industrial buyers big buyers are putting their orders in but we aresafe traders we don't want to be the first one into the party ok because weare not industry we are just individual traders okay so we have a range okay we have a range here they haverejected the highs many many times here there you go here there you gowe have also range lows okay in the range what do we dolet's suppose if we have a range okay we have a range the price moved reallyaggressively to the downside okay and then do we buy the low exact no ofcourse not we can't just buy here this is way to aggressive to buy okay whatwe do we wait for the confirmation the price goes back upokay the price goes back up to the highs got rejected here okay they got therejection here the price drops again back to the lows so do we buy here ofcourse not at this time we don't know if the price is going to drop further or ifthat's a range that can be just double double bottom and for the third time theprice goes back to the highs and then again closed fails to close above andthen comes back down that point we know okay if the price is coming back down weknow this is a range this is a range so now I can look for buying opportunitiesover here this can be my buying opportunity industrial buyers they'll bebuying down here okay and where will be they're selling they'll be selling thetop right they'll be selling here in range sell the high sell the high sell thehigh sell the high okay buy the lowokay so this is how you trade the range okay so coming back we have nice buyingopportunity down here many many spikes spike the price comes down okay pricecomes down spike goes back spike goes back spike goes back so at this point weknow that they are losing those sellers who've been selling this market eversince they are losing the hope that this price is going to fall I know sometraders who've been selling 1.
20 handle in order that thinking or hoping that itwill hit euro will hit one point zero zero okay so that's different part ofthe story and now we have rising support here way before it got broken they theyclosed under it okay they closed under it the price came come back to ourbuying territory this is our buying zone price comes back to our buying zone theymakes a new high new lower high there now the price what the price is doingthe price is continuously making lower highs okayprice is continuously making lower highs one lower high here lower highs here andthen we have higher highs higher highs higher highs higher lows higher highs higherlows but now since I am creating a range right and zoom out they have failed sofar to close any weekly bar above this strong level right they came back ofcourse they came back failed to close failed to close failed failed okay andthen here also they failed they came back you know what the buyers aredoing industrial buyers especially okay they are buying down here okay and thenthey are coming higher they're booking their profits that's what happening herethey are booking their profits okay and in case ifthey don't have the faith in the trade they'll book their profit in in in andand if they have faith in the trade okay they will keep it keep it go go gookay so we have nice gap as well on Euro I don't know maybe like 50 60people not 50 maybe 100 200 170 points pips gaps on euro dollar okay so theyfail to close on in our this horizontal support and resistance area okaywhat is support and resistance Area for example if this is a strong support orresistance okay the price comes drop drops sorry the price drops aggressivelyokay now this is a support if the price is up here this is support it dropscomes back to test it okay now this thing has become a resistance now so nowyou look for selling opportunities same thing okay the price is going higherokay price is going higher price comes backaround okay price comes back aroundokay now this thing has turned before it was resistance now this thing is supportis acting as support same thing we see here the price drops aggressively theycame they come back to test it okay they came back to test it failed to close andthen another push to the downside one more leg okay so now this thingis now a resistance the failed they failed a couple of times and now we areseeing a close for the first time in history above our support or resistancelevel here we see finally a close right so whatdo we do so we've definitely loved to buy howmany weeks it has been they haven't closed since 2015 and we are in 2017 theprice failed to close they they had multiple attempts to break but theyevery time they are falling apart for the first time in history we had nothistory but you know in maybe two three years that we see finally a close aboveso what we do we come back to daily chart okay where is the entry today themarket is closed so I don't have to scroll otherwise the chart will moveback and forth okay so this is our entry candle 14th yeah 14th okay this one right here as soon as of course there isa close you guys might think there is a close daily close as well okay so whyhaven't I bought there because this might be again a fake break out whathappened here while you are not paying attention to the weekly chart we have abreak here right and what happened if they even went higher the trap newbuyers and then they are coming back down to complete the cycle of the rainso that's why the weekly chart high timeframes always rocks the swingthat's the beauty of the swing forex trading that you have to watch a charton weekly levels on higher time frames so that you don't you avoid doingmistakes okay it's tough to be disciplined it's tough to wait but yesso you get down to see if this weekly if this weekly candle will close above thishorizontal support or resistance area finally they close it and then we canmove to daily chart to take our entries thedaily candle maybe like I don't know maybe at since I live in Dubai so for mytime this candle will close around one o'clock or two o'clock in the nightdepending if they have a day saving time or whatever so I I can't wait so I willjust wait I'll just put my buy order maybe the candle will close or not so II just took a buy here okay my buy is here I took the Buy where ismy stop then the most important question there is my stop is there enough room totarget what I am going to risk this is the most important question in tradingfor I have a bar here I have a stop of four hundred pips my stop goes under theprevious week low since I'm trading weekly chart my stop is here 400 pips is my stopokay so do we have enough room we will see this swing we have like 250 and in casesince this is these sellers will be taken out because this is huge hugesell-off okay and those traders they might be holding as said a friend of minewas still holding 1.
20 handle for a 1.
11 handle he never achieved onepoint one point zero zero sorry okay so those big industrial sellers they'reholding on to it okay and then finally when we see a closed for the first timeabove our horizontal support or resistance area that's a good sign forus the only thing that I see here can be if this swing high plus the EMA the200-day moving average so this is the only thing and then what happened nextweek skyrocket they closed above 200 okay what is the next hurdle thenext hurdle is swing high they closed above ok back-to-back bullsbar Wow two weeks done so let it and now I I start to build faith in the tradethat this trade will work why we had a swing failed we have 200 immediatelythat was my hurdle they closed above that's why the close is important notthe test ok the price comes back test it fails comes back test it fails I wantto see a close ok so the price close above 200 price closes next hurdle thatis swing high over here sorry over here and then now I feel more faith in thetrade that it might work so now I can move my stop if I want to break evenok because I I have seen enough I have taken my profits out from the tradealready ok how much was our risk 400 points we have already achieved 400points here sorry it's forex so it's pips so I have already achieved fourhundred pips so now I can move my stop to break evenok I don't want to see this thing coming back failing at the highs like what itdid earlier okay I don't want one more push to the downside ok so this if thewhole scenario now in front of my mind so should I.
What happened then the pricemoved higher price tested one point two zero handle okay and then they startedto retrace some people started to say this is a trend changing and we arecycling back to the lows because that's what the range traders will do right ifyou are selling here ok the price goes more high you sellmore to send it back right so that at this point when theystarted to break this rising support level okay they started to say you knowthis is a reversal now we are cycling back to the range so actually this isrange expansion okay this is just a range expansion this is the originalrange so you just copy this and paste it here maybe here so this is one range andthat is second range the third range will be again back to the highs that wecan count even so this is like thousand pips range so this is again thousandpips range exactly same to same if this by chance of course not traders arekeeping their eyes on it so we have thousand pip range okay we get thepoint 940 and then from here we have again a thousand pips range and we have aretracement of maybe 500 pips so we expect a five hundred pips retracementthen again we can talk it a range expansion that's different scenario thatthe range trading I will cover that one in the next videos but for now this isthe swing trading okay so swing trading you you don't place your stop way tooclose otherwise you'll be stopped out I'll bestopped out if i place here right I'll be stopped out you know I'll sayyou know what this thing gonna fail as expected they have a closed under samething under the 200 okay that first it was hurdle you remember 200 was a hurdlethey closed under okay and then they have now they are coming they're cyclingback so they might test my entry point so it's okay let them test my entrypoint don't panic don't freak out if you have a stop here take the stop call it adeal so dont put your stop-loss way too close to the price okayand then what happened after two three weeks we have like twin reversal we haveevening or Morning star whatever you guys want to say it but I would I would not never say it evening or morning star because we have like one candle in themiddle of the week okay and then more away it's not happening in the top atthe top or at the bottom so we have nice structure here we have a trendlineresistance coming in we have support coming in okay we have a nice closefinally here we have a nice closed above and then again we are continuing rightwe are continuing so now I can move my stop from where it was breakevenoh sorry from break even to the previous swing low now we have a swing low thisis known as a swing low okay so now I move my stop to the swing low got it sothis is my stop the price goes price is here one week to week three four fivesix weeks six back-to-back closes above the highs so closes at the highs nearthe highs close makes a new high okay but then again comes back around closesabove the previous week high this is good for us because what I want to see isprice closing above from where it opened okay and if it is it is closing abovethe previous week high that is even more good better okay and then we haveresistance coming in from higher time frames the price started from here so wecan name it an X okay you can call it X sorry you can call it X price starts itfrom here they stopped here and then there is higher probability again tostop here and notice now that they haven't they aren't able to close nowabove this resistance area moreover we have like trendline resistance frommonthly level from monthly level from like 2008 2014 and 2018 now okay thatthis thing can turn down so weekly level where my stop my stop isstill sitting at the previous swing low I want to give it a maximum room that Ican of course I have taken my profits out for example my my risk was fourhundred pips so first I take four hundred pips out okay now my trade isone to one I have gained what I had risked so now my target will be eighthundred pips there you go I hit my eight hundred pips on this week like January2018 I hit my.
My eight hundred pips andthen price moves like thousand pips so I have gained eight hundred plus fourhundred how many there one thousand and two hundred pips already from the tradeand now this is my bonus my runner let let it run how far this can go I was I'mstill expecting of one more push to the upside okay i am expecting a buying zonesomewhere between actually here okay anything here looks goodI've I haven't placed my buy orders here because I was looking for a trap back tolike one point two zero handle and the break of this area break off our strong supportand resistance area same thing what happened here lets see we have againstrong support or resistance we have rejection of the highs rejection theprice close never comes back to test it and now that we are testing it so thatbefore it was resistance and now it is support right and now we are seeing somebullish momentum from the buyers on EURO so this thing can definitely skyrocketback to one point two three handle but at least back to mid of this range youcan call it like one point two two so this will be for day trading not forswing trading for swing trading you have to wait for right time you might getlike ten trades in one year maybe five trades in one year but that one trade orthat five trades we'll be equal to that trader who istrading hundred lots in one year or you will be gaining more the trade traiderwill be paying spreads commissioned every single thing of course in thisswing trading you only have one disadvantage of the swaps so I have aswap for like $300 now so you have to make a deal with your broker of coursethere are some swap free accounts as well you can look for look into them ifyou are swing trader you can make sure that the swaps are in your favor okay soif swaps are in your favour you can even look for more quantity youcan hold on for more longer period because swaps are filtering you in mycase euro dollar since I have a buy on euro and have shorted US dollar thisthis is how the forex market works if you have euro dollar this means like ifyou have where is it euro dollar okay and this means you are selling theEuro if you are buying sorry if you have a buy it in my case I have a buyI'm expecting Euro to go higher and I'm expecting the dollar to drop sorryabout this to drop okay so now I'm expecting your to go higher so I amfavoring Euro right so I have a favor on euro so euro have negative swapsbecause I am buying euro I have to pay the swaps so you can discuss this withyour broker you can ask him or they have a whole spreadsheet you can even look inthe empty for section in Euro may be specification you can see how muchthey're charging swaps like long swaps are – 2 short short swaps are2.
45 okay three days swap so every Wednesday whatever so every broker havedifferent stuff on this one so so that's how you manage you wait okay you waityou put your stop at right place a stop right stop placement initially my stopwas here when the price moved higher okay when I got my t1 or t2 whateverokay I moved it to break even now if the tough tough part okay thingsI got my t1 t2 where should I exit the t3 or t4 t5 okay I will exit the t3 maybeat the highs maybe you know I know now that wehave a strong resistance area coming in to play so I have to look at least booksomething here right also we know that this is range expansion 100 pips here sorry1000 pips here 1000 pips here so we call it a deal thousand pips okay so where do Iplace my stop then because when the okay this this phase when the price moveshigher and then come back around I have achieved the first phase now startingnow this is the starting of the second phase okaynow they started to move in daily wedge okay or weekly wedge sorry that's a weeklywedge and then they moved higher so that's okay I can move my stop here they movedone more high if I'm trading it on a daily chart remember this stop will bedepending on the daily chart okay if you have a time frame thatyou're trading if you have a daily trade then you take it on a daily chart okayyou move you manage your stop on daily levels okay if your trade if you havetaken a trade on weekly levels then you manage it on weekly level okay so wehave a new high the stop goes here okay so new high new retracement we have new highhere alright new retracement here then I move my stop herewe have a new high okay now I've booked my profit why as saidI'm expecting a reversal from this point from this trendline area trendlineresistance area we have nice rejection here they might reject here as well andI don't want to sit in the pain of like 500 and 600 pips again so better to takeout my profits so taking my profits out here makes sense right now where is mystop my stop goes under here okay there is a rising support now so better to putit under right let me draw it again so rising support the stop goes under thisrising support we have horizontal support we have buying area buying zoneat you can call it like one point to zero so this is the buying zone soexpect a bounce from here so should i so initially my stop was for under 200day moving average but I just put it way under the price way far from the pricebecause I'm expecting a one more leg to the upside so it's all about the trademanagement discipline wait for the right time wait for the wait for theresistance area wait for the support area let the price do it thing letthe market do it thing whatever it is doing you wanna book profit here ofcourse you can okay I am I will not take the profit here wehave nice huge rally to the upside with this this thing might have a leg to theupside one more push okay and the best thing to take your profit out if only Ican see at the resistance area now we are approaching into our buying zone youcan say that again same scenario we have rising support we had a rising supportrising support got broken rising support got broken okay and then now in this onewe had like support support support let's see if we can find support here aswell no not nothing so far so we have we have still like enoughroom like hundred pips for the price to go and then we can look for buyingopportunities here as well so that's why that's a buying zone so same to samepattern structure same structure this is the same structure same structure ishappening here we have rising support we have rising support rising support gotbroken okay rising support got broken okay and then now same thing we had thisone I have to calculate maybe we have 500 pips of the retracement we have like460 so almost five hundred pips of the retracement same thing okay everythingis pointing to the upside we can also draw RSI okay okay RSI finally starting to go higherso that will favor us okay so what is where is MAC D okay so still like sellingmomentum but nothing no divergence so far everything looks okay but MACD looksbad okay doesn't look good to buy so but these indicators are laggy as you knowokay so we can look for buying opportunity at this area around 200-daymoving average EMA or exponential day moving average and we have a support wehave our support buying a zone okay we have our rising support broken and thenwe have horizontal support as well so many thing pointing up same same levelhere okay so I wanted to have in a conservative entries so maybe around 1.
2098 this one looks good to me the price came backmaybe maybe missed it by like 10 pips nevermind, we'll see how the next week will go I have still buy at 1.
14 handle I'm still makinglike 600 pips already on the runner on the target for five forever you can sayI have already achieved my targets on this euro dollar pair and then next weekon the next video I will share GBPUSD because I have also also madelike thousand pips I don't know if I had already made but I don't know if thatwas a long video so sorry about the long video hope you learn from this video andthey do let me know in the comment section or you can email me directly atthe supportatforextradingcity.
Com andI will definitely reply you guys so be a discipline trader wait for the rightopportunities okay and then when there is a right opportunities go all in okaygo in with your maximum because right by that time when you are waiting for theopportunity according to your trading plan you are seeing that this is whatyou have to do and then when the opportunity is there just grab it andthat way you will have more faith in yourself more encouragement that yesthis is what I was looking for this is what I have gained and now I have theopportunity to grab it so grab it and then enjoy your life thank you so muchfor watching it so see you next time bye bye.