The High Probability Trend Pullback Breakout Approach To Trading Forex Video Tutorial

You should watch this 47 minute video tutorial by James Chen on using the high probability trend pullback, breakout approach to trading forex. Did you read the post on how to trade CPI M/M and CPI Y/Y? James Chen is a renowned forex trader who has written a very good book on technical analysis. He is the Director of Technical Research at FXDD. As a forex trader you should watch these videos. These videos can teach you new trading approaches that have the potential of improving your trading strategy. In simple terms, you wait for a new trend to start. When the new trend is in place wait for the pullback and then enter just before the breakout. This is the essence of this approach and almost all pro traders use this approach to trading trends.

Now when you trade, always take risk management very seriously. Risk management is the most important thing in trading. Many new trader don’t take risk management very serious in the beginning. They happily open trades with 50-100 pips stop loss. But after losing a number of times with big stop losses they start feeling the pain.When you keep risk small and go for big moves in the market that make 100-200 pips per trade, you will see your account grow very fast. On the other hand, using a big stop loss is going to kill your account pretty fast. So avoid using a big stop loss at all costs. This is the most important risk management rule that you should never break!

If you are interested you can take a look at our Candlestick Trading Strategy. We use candlestick patterns in an unconventional manner on H4 chart. If you will trade conventional candlestick patterns like the inside bar or the engulfing bar patterns, you will lose a lot. When you focus on candlesticks using our unconventional approach you will start seeing how easy it is to trade with candlestick patterns. We mostly use a stop loss of 10-15 pips. We think that even a stop loss of 20 pips is too big. Keep the stop loss small. Go for big moves in the market. You should  make at least 100 pips per trade. This means you will open a trade with a small stop loss of 10 pips and go for a take profit target of 100 pips. This gives a Reward to Risk ratio of 10:1. This should be your average Reward to Risk ratio per trade.

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