learning to trade forex with martin cole.

Trading successfully is not difficult. BUT you will need to face some facts. These are:

Are you ready to make the break and take control of your trading once and for all?

Lets now look at the PAT charts and how this was traded for a net +112 pips gain (Watch above video first)

NOTE* The "Belief" bar in PAT is the short HORIZONTAL bar that sits on each vertical bar.

Bar A, appears with an increase of PVol (Pvol is short for PAT Volume) Yes I know the forex market does not have volume, but hey! it does if you spend enough money looking and then programming to display it.

So back to A, Pvol increases and then you see the belief bars after this start to step up. This tells me that the market as started to "lay out its stall" and test the currently held beliefs. The stepping up tells me that this "test" produced some buying.

B then sees the belief line fall right through the test area of A. Ok lets see how the market responds to that. Mmmm the belief bars following this lift again. Another test would be nice and then to see the result of that test.

C is another test and "IMMEDIATE" response at D. At this point I am happy to buy the market on a retrace that we see happening just after D. (I was not around at this time otherwise I would have bought on that retrace)

Whoa!!! hold on I hear you cry, you SOLD the market later, here you are talking of BUYING! What is going on?

Well markets change and tests are only tests. The first warning sign that this may not be a LONG market is after the increase in volume at D. This was at this stage the highest volume of the day and it resulted in a retrace, however still nothing glaringly wrong in this and I would have been happy to buy on that retrace for a long trade.

Then the market hits the top of the floating zone. (This is a PAT indicator and has nothing to do with bollinger bands or the like.) What happens then is another test. Most traders at this point will have forgotten about "D" and that high volume. Notice how the test down probes into the the level of the BELEF bar on D. This is doing nothing more then "testing" the beliefs of the market. The market lifts back from this test but very unconvincingly (look a the volume and the belief bars to see what I mean when I say "unconvincingly"

Basically we can say without doubt that the test back into D area failed to show any real commitment to higher prices.

As far as I am now concerned, the market stall has been laid out with all the fruit, the demand has been assessed, let the games begin.

E produces an increase in volume and and a drop back, however after E we do seem a little "power" to the upside develop again.

I am confused! tests both ways, no real commitment, I am receiving very "mixed" signals from this market. I need a clear sign if I am to act. I will wait and see what emerges from this mixed signal market.

Then at F the market wakes up and puts in some high volume, now I pay attention.

I sell the market at 17962 with a 30 pip stop loss, bit wide for me but this time I think its ok and will bring it lower when I can.

The market rises at G on the highest volume of the day and stops me out for a -30 loss on the G bar. Mmmm.

Then the belief bar on the bar following G is lower. This market is not going up, not at this stage anyway. Stop loss orders have been deliberately targeted and I was a victim. This is GOOD! no this is GREAT! because IF stoploss orders were targeted this is more evidence of a downward moving market to come.

I sell the market again and this time I am filled at 17965 with a 30 pip stop loss.

Well that was it, off it went and just kept on adding up the money. But wait where is the exit. You cant make any money trading if you don't have an exit, and to even "think" of entering a market without an exit is in my mind a clear sign of lunacy!

Here in this chart we see the level at which I placed my short trade. The orange lines that you see with a price on the left hand side of 1.7995 is the top line of the PAT Trade Range Finder Tool, This tool is used to find high probability exit levels. Note how the market reacted at B when it hit this line.

The reason I did not close this trade and take my profits at 1.7905 was because of the earlier "Stop Take Out Move" Again many traders forget past market action as they focus on the leading edge to much. That take out told me that this market would be highly likely to move a good distance.

Then at C we had a power up, mmmmmm I may have got this wrong, but then after all that power the next two belief bars are down...Mmmm again!

Then I believe at D some news came out and the market became very volatile, but then the bar following D is down again! "Gotcha! now we gona see some action and I am with it all the way.

Just before we look at the exit, note how after B the market rises back to where I entered, near to the pip at 1.7965 and then falls. Why is that significant? Well this is how a lot of traders get stopped our for a small win and then miss out on the rest of the move.

Let me explain. You see traders are obsessed with locking in profits, so as they sell at A and the market starts to move down giving them good profits they then move down their stop loss orders to "lock" in profits. Another way of doing this is with the "automated" trailing stop loss (Another one of those "sound good in practice" trading tools that are about as useful as a rubber beak on a woodpecker!)

Of course they move the stops down, to say break even or to even lock in a few pips, the market rises, stops them out and then proceeds to move 150 odd pips lower.

Well all that leaves us to do is work out where we want to exit this trade for maximum gain. For this I drop on a double helping of the PAT Trade Range Finder Tool giving me an overall range of 180 pips

I make the exit a few pips above the 1.7814 line so as to allow for spread on the brokers dealing platform. I am automatically taken out of the trade at 1.7823 for a +142 pip win. Less my earlier loss of - 30 pips. I finish the day on +112 pips. What's that worth in real terms, well however much you staked per pip, it could be as low as 50p if you are just learning the ropes. When you know what you are doing then it could be enough to say "buy a dam nice boat" Mmmmm talking of boats.

If you are REALLY interested in learning how to trade like this, then you should consider taking the last trading course you will ever need. You can find out more details here. Yes I am interested it trading this way.

Whoops! Nearly forgot to show you contract note. Here you go (Personal details blanked out)