Trade Like Pro Supply And Demand By Mobirao

This Book Includes:

Identify Supply and Demand Zones

In order to move price on a chart, there must be willing sellers and willing buyers. When you sell a currency pair, let’s say EURUSD you are selling Euro to a buyer or buyers willing to buy Euro from you, and buying the U.S. dollar from a seller or sellers willing to sell it to you. If there are no sellers and no buyers in the market, the price won’t move and no transaction will take place.

There are many players placing trades in the market, which make up the “order flow”. These include retail traders, such as yourself, independent and private traders, institutions, and professional traders.

The institutions and Hedge Fund Managers are very important because they have big money. Professional traders understand how the Financial Markets work. They trade in the opposite way to the way in which retail traders do things. That explains why only 5% of retail traders make money in the Forex market. Because only 5% know how to trade like professional traders. 90% of retail traders do not know how the Financial Markets work. And most importantly, they trade using indicators and robots and they end up operating in the opposite way in which professionals trade.

By learning how to trade the market using supply and demand, you will be
able to enter the market at the same time as professionals and institutions do.
We cannot know with certainty where they are placing their orders, but we
can use supply and demand to locate high-probability areas where a big chunk of order, flows are still unfilled.

Not all the supply and demand zones yield 100% guaranteed winning trades, which is why we use price action and other techniques to select high probability setups.

1. General Trading Rules:

Write down your reasons for trading and the long-term goals that you
aim to achieve. This will help you stay focused and organized.
Keep a trading journal or a trading log with all your trading activities. It
is critical in planning a long-term strategy to be able to view your past
and present trades and also which markets you are been exposed to.
Good money management is an important element of any trading plan.
You need to have a set of rules for managing your money, especially
your risk exposure.

2. Key Questions:

• What is your motivation for trading?
• What is your attitude to risk?
• How much time can you give to trading?
• What is your level of knowledge?

3. What are the benefits of using a trading plan?

The financial market can be volatile at times, and it is at these moments that
you could be prone to erratic trading behaviors that could cost you all your
capital. A trading plan is a vital point of reference in these situations, because
you have taken time to elaborate a plan B in case plan A fails, and therefore,
all you have to do is execute your trading plan that you already have
established in advance. Act according to your plan, rather than make bad
decisions on the spot.

Many traders fail to keep a trading log or a trading journal. It should contain
a record of all your trading activities with a section where you write your
comments. You can use it to get an overview of your trading history and
easily identify successes and mistakes made along the way.
No trading plan is complete without including your risk-reward tolerance. By
quantifying this in advance, you can assess whether a trade is too risky or not.
Your risk-per-trade scale could be like this:

• Low risk 1-2% of total equity,
• Medium risk 2-5% of total equity,
• High risk 5% or more of total equity,

A trading plan can be a constant reminder of your capabilities and your
limitations. Having a written plan is extremely useful for a trader to know
when and where to enter and exit the market, to stay disciplined and loyal to
your trading guidelines.

Supply And Demand Based Trading by Mobirao

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