10 FAQ for Forex professional trading course


Hello dear traders, it is Petko Aleksandrov, and in this video I will be answering the FAQ for the professional of
forex trading course. The first question that I frequently receive is, can I use
the strategy on different time frames? Well, I have created this system
particularly on H1 and there is a reason behind that. With my experience I have
noticed that on H1 the indicators that I have selected with the parameters inside
and the values works the best. If you want to change it, you can but you need
to make sure that you observe well the market. You test it out and see if you
will keep the same parameters for the indicators if you go to a lower
time frame for example as M15 or M30. Now, the second question is why I cannot find
EMA indicator in Meta Trader. Well, EMA stands for exponential moving average.
And, actually it is available in Meta Trader. If you look at my screen and if I
go to insert indicators and I go to trend, this is where you will find the
moving averages. Here as moving average method, you can select simple
exponential, which is the EMA smooth it or the weighted. So, if I choose
exponential click on OK, I will have the eighth period of EMA Exponential Moving
Average. So, the Exponential Moving Average, this is just a Moving Average
but the method is exponential. It is available in Meta Trader. The third
question is, can I use the system for cryptocurrency trading?
Of course, this system can be used with many different assets. You can use it, as
well, in cryptocurrency market. It of course, depends again on how you will be
using it. If you want to go for cryptocurrencies, you should again
observe the market well. And see, if these parameters for the indicators give it a
good entry, or the entries are laid there or too early. So, you need to do a little
bit of a job here to see if you will keep the very same parameters for the
indicators or you’re about to change it. But yes, the system is based on price
section which represents the market behavior, the traders behavior, so
obviously it could be used as well on the cryptocurrencies. Now, the fourth
question is: should I choose the entry lot first or the Stop Loss? So, if I place
an example entry, let’s make it right over here above these highs. And then, if
I choose Stop Loss below, this recent low let’s say, this is where I would like to
have a Stop Loss. And, this is a pure example without any analysis just I want
to demonstrate it. So, if you have your entry here and you’re planning to place
your Stop Loss over here because of recent lows and highs or supporting
resistance, or any other, doesn’t matter is it this strategy, this system or
something else. The important thing is that you need to calculate the lots that
you can afford to trade, according to this Stop Loss distance and according to
your money management. It’s a common mistake that traders first decide how
much they are willing to risk from their account. So, let’s say the
trader has $1,000 of account and he’s willing to risk 5%. So, what he can risk
is $50, right? And, he places the trade first and then he places the Stop Loss.
But because he didn’t calculate the distance, it could cost him more, right?
If the Stop Loss with the quantity that he traded cost him $60-$70, he will move
the Stop Loss to unreasonable place. As I say because the Stop Loss should be
where it needs to be. According to the system or according to the strategy that
the trader is following. Doesn’t matter is it the one from the professional
forex trading course or from any other system. The idea is that he will need to
put his Stop Loss on a higher place if he bought or on a lower if he sold. But
he will basically tie this distance to his entry because he decided that he
will not risk more than $50. So, this obviously is a mistake. The trader needs
first to calculate how much is the distance from the place where he wants
to place the Stop Loss. And then, he needs to calculate how much he can afford to
trade in a particular trade to fit in this Stop Loss distance. I hope it’s
clear here because it’s essentially important. The fifth question is: why do
we need three entries? And here, I will try to explain it in a very, very simple
way. Why we diversify the risk and three entries and basically this is the answer
we diversify the risk. So, let’s say we are in an uptrend.
I’m just looking at this chart we avoid everything else. We avoid the indicator
that we have, so I will just remove these Bollinger Bands and the moving average.
So, we have this pure chart and let’s say we are in an uptrend where the EURUSD. But actually, currently we are in a downtrend if you look at that we have
series of lower highs and lower lows. So we’re definitely in a downtrend with the
EURUSD. So, if I just look on the hourly chart and as you can see the
price just pulled back. And now, on hourly chart it is going higher, so if I want to
sell together with the big trend if I want to trade for example one complete
lot what I can do? I can do a pending order or sell position or any type of
order right over here and I will sell one lot. What if the price continues
against me? Now, in this case I will get into a loss, right? But if I divide this
entry to three entries, so here for example I will be entering 0.33 lots.
And, if the price goes higher and I have another entry condition, I will enter
here. And, if the price goes higher and I will enter a little bit higher. And then,
if the price goes into my direction together with the trend, obviously I will
have an average price and it will be much better price than the one over here.
Right? So, the other thing is, if from the first entry right at this level the
price goes together with me if I enter here and then if I enter them one more
time here. Obviously, I will have a worse price but at least I don’t place the
whole position into this level, into this price. So, I diversified, I want to make
sure that the price goes into my direction. If the price goes against me I
enter on a better price and obviously there is the Stop Loss to protect my
capital. So, with the three different entries I want to diversify the risk. If
the price goes against me and I want to confirm the direction of the price if it
goes together with me. OK? So, here I’m using three different entry conditions.
With a different impact, because I put different values on each one depending
on the indicators that i will be using. And you will see this in the course.
The idea one more time is we diversify the risk and we don’t want to place all
of the trading amount that we have decided to use into a single trade into
a single position on a single level. I hope it’s clear here. The next question
is how long time it took you to create the system? Very interesting question. Actually I have created the system long time ago when I was studying in London.
It took me I can say about three months so this system was the
presentation that I had in the end of my education there. It turned out to be
a very useful system and I’m still using it. Of course, I took it from many
different traders I can say, I took the best things that I could possibly take
from the traders that I met in London. And, it turned out to be a great actually,
a great Forex professional trading system. All right? Now, the next question is
how long time to practice the system before trading it on a real account? Well,
that is really a personal choice. It depends on you, it depends how long time
you are practicing the system. Obviously if one is practicing a few hours a day
it’s one thing, if other trader practice is let’s say 8 hours or 10 hours a day,
he will get used to the system much faster. Now, the best thing is to put some
rule for yourself. Let’s say if you’re trading it one month on demo account and
you have made a target of 10%. Well, if you reach it with the system that is
great because you have accomplished your target. So, you can give it a try on a
real account. The most important thing as I always says is when you are
comfortable trading at, when you feel safe trading a system. Then it means you
are ready to practice it as well on a live account. I’ll suggest you to go with
a really small account in the beginning just to get used to avoid emotions that
are involved into live trading account. Now, the next question that I frequently
receive is: do you wait the Bar to close in order to open the trade? Yes, that’s a very nice question – the closing of the bar. Well, there is something I need to
clarify here. The closing of the bar is the very same thing as the opening of
the next bar because this is the very, very same moment especially with the
Forex market. When one bar closes the next one opens and this is the very same
level. Closing of the bar is a nice confirmation but sometimes when we have
really impulsive break and you will learn this in the course. When we have
an impulsive break for example the counter trend line if you’re waiting for
the close of the bar. It could be too late, it could be up with 20 with 50 pips,
you will be too late to enter into the position. And you will miss the profit, so
what I do personally if I see impulsive movement? I would enter on the break and
I will wait and see if it goes higher by some chance it pulls back. And, I see
that it was a dramatic break or a false break, I can see, well I can close the
position and get out. Right? But, if I enter in the right moment and by the end
of the bar I could be already on a profit. So,
sometimes I wait for confirmation. But sometimes I prefer to enter into the
trade when I see the break, so I will not miss the move. So, when I see impulsive
movement, I prefer to enter into the trade. If I see it was false then I would
exit the trade. All right? The next question is: can I trade the system on
different platform than the one shown in the professional Forex trading course?
Well, obviously guys, you can trade the system with any platform that you like
to use. The important thing is to have many drawing tools, not to be limited. Because many platforms place limitation of drawing tools and it’s
really hard to order or to arrange your charts and your screen. So, make sure you
keep it simple. Make sure you don’t place too many monitors. Actually, I can share
with you that with the time I would use the monitors before I used to have 8 to
10 monitors on my table. And, I realized that with the time the more complicated
you make it the more difficult it will be for you to follow everything. And it’s really exhausting, so just make it simple. If you have 1-2 monitors with a
single platform and you just follow it it is just enough and you will get
used to it, so don’t try to make it complicated. Choose a system and a
platform that is suitable for your trading style and that it will be easy
for you. The next question actually, the last one, this is the tenth
question is should I do the whole analysis to enter
in the trade? Well, I do the whole analysis when I’m entering manually into
the trade. Obviously, don’t try to make compromises because I have seen this so
many times in traders. When they’re doing compromises for one thing, for example if
you’re following five things from your system let’s say Moving Averages, MACDs,
Fibonacci, support and resistance, Counter Trend line. And because when
beginner traders start to trade they’re very eager to trade. They want to trade
so much, they sit in front of the computer. And they’re just ready to trade
and they want to trade and they have decided that they will trade at this
moment. If they see only three or four things they’ll say: “okay I have four of
the things, I want to get in I will jump into the trade.” And they ignore the last
one which is really a mistake. So, if you don’t see your set up, if something is
missing take it easy, go out, relax, come back in
few hours and see if we have your set up. Or look at the other currency pairs to
see if you have your set up. Don’t make compromises to skip some of the analysis
that you’re making or to skip some of the entry rules that you want to see for
your trading system. All right, guys? This were the ten most frequently asked
questions that I receive in the course Professional Forex Trading. If you have
more questions, obviously I’m here to answer you. Let me know and I will be
glad to assist you. Have safe trading and always have a great day!

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