Hey hey: what's up my friends, so in today's training you will discover the four golden rules that you can't ignore when it comes to swing trading, because here's the thing right have you ever, you know put on a trade right and the market somehow always reaches for Your stop loss first right before you reverse back in in your favor, or how about this right you every time you enter a trade right. You set your target profit, but somehow the market never seems to be able to reach your target profit or even if it does right, it ends up reaching your stock loss first before reaching your target profit right. If that sounds familiar to you, then today's training is for you, because i'm going to share with you the four golden rules that you can't ignore when it comes to swing trading. So let's get started rule number one.

Is this straight from an area of value? You might be thinking right now, what's an area of value, so an area of value is simply an area on your chart right where buying or selling pressure could step in right and push the price further in your direction. So, for example, an aerial value - let's say in an uptrend, could be at this previous resistance, which could become support. This is an area of value, because this is an area of resistance which could become support. So now why do you want to be trading from an area of value? So two reasons number one you're entering at a location on the chart right where buying pressure could possibly come in and help you push the price higher, because this is an area of support and, as you know, right, an area of support is where buying pressure could Possibly come in and push the price higher, that's the first reason second reason is this: is that when you're trading from an area of value, you can set your stop loss right? That gives you kind of like a natural protection right from the market, so, for example, if you see over here, this is an area of support where this blue purple box that i've drawn this is where previous resistance could become support.

This is like a natural barrier. In the market, because if you were to set your stop loss, let's say a distance below it somewhere here you can see that the market would have to break below this area of support before it reaches for your stop-loss. So the market has to work hard to reach your stop-loss, and this is what we want right. We don't want the market to easily hit our stop-loss.

We want to make the market work damn damn hard before it reaches our stop-loss. That's what we want so in this case, when you trade from an area of value, it gives you a natural barrier, a protection right to prevent the market from you know, hitting your stop-loss prematurely, make sense. Okay, so moving on number two have a reasonable target. So here's the thing right have you ever you know put on a trade and let's say you know you, you risk ten dollars right, but your target is, let's say a hundred dollars away.

What's going to happen is more like most likely. You will end up getting your stop. Loss triggered before the market could reach your target. At the same time, right you don't have a stop loss of 10 and have a target profit of like 50 cents, because you know one loss right will wipe out all the little gains that you have accumulated.

So this is why, as a swing trader, you want to have a reasonable target, but how do you define what's a reasonable target? So a simple guideline i have for you: is this set your stop? I mean your target profit right just before the nearest swing high or low. So, for example, let's say you are buying in an uptrend market is in an uptrend okay, let's say you buy the pullback. You buy the deep you buy over here and, let's say the market does reverse back in your favor up here at this point: where do you take profit? Where is a reasonable target? If you ask me, a reasonable target could be just before this recent swing high over here. Why? Because this is a level where potential selling pressure could come in this is a swing high.

Some traders might think. Okay, man. This is a level. Let me show right.

The market will have difficulty breaking above the highest. Let me go shop this market, so there might be selling pressure lurking around down there. So, as a trader who is looking to capture that one swing in the market, you want to have pretty much a good odds right of exiting with a profit. Then you want to exit your trade just before this recent swing hike, because this will give you a good chance right of exiting your trade with a profit right, because you are not exiting your trade right just before the selling pressure comes in just before the selling Pressure comes in over here, let's say around here right and push the price down lower, so you exit right before the price reverses against you.

So this, if you ask me, is a reasonable level right to set your target profit just before the nearest swing high for long trades or just before the nearest swing low for short trades. Moving on number three: is this right know the market behavior? So, for example, the u.s stock market, okay, strong stocks right, they are likely to continue higher in the u.s stock market, for example right. Why is this true? Because you know strong performing stocks right? They are trending up higher for one of three reasons: number one strong earnings right, consistent earnings. So this is why the stock is in an uptrend number two strong sentiments.

Maybe stock like tesla. They may not be making a lot of money, but the sentiments behind the stock is very strong, that's possible as well on number three. The stock is backed by strong fundamental stocks. Like you know, coca-cola mcdonald's, right, very well-run company.

This is why you know such uh. Strong stocks right, they are likely to continue higher one of these three reasons, or maybe a multiple of these three reasons. Who knows who cares right, but whatever the case is right, if you see strong performing stocks right, they are likely to continue higher. So this is why stocks that break out of all-time high stocks that break out of 52 high two-week high.

They are much higher to continue higher compared to stocks that, let's say, break hit the 52-week low. Those stocks are pretty much stocks that you want to avoid. So it's very important to to know right the behavior of the markets that you're trading, for example, if you trade bitcoin, what pattern does it exhibit? If you ask me a bitcoin kind of exhibit this, be this pattern over here right on a daily timeframe. It gets sleepy over here, low low volatility environment.

Then boom right after the boom, it's followed by a bus right collapse down lower. Then it goes sleepy again boom right, then it busts and it gets quiet again low volatility. So this is kind of like the behavior of bitcoin. What about the forex market so forex markets? They have their own behavior as well currency pairs of let's say, aussie, canadian.

It has a mean, reverting behavior, aussie canadian, whenever you retest the previous week high. It has a tendency of reversing lower from there currency pairs like the dollar against the chinese. It has a tendency to continue trending right after a strong momentum. So again know the market behavior, because this is like you know like going after a girl right, if you know the likes and dislikes of the girl that you are going after you have a better chance of you know of getting with her to do.

You know to go steady with her right, so same thing down here. Know your market behavior, if you want to you, know, increase the odds of your trade working out, and then this brings me to point number four: is this look for confluence? What is confluence confluence is simply means right, multiple factors coming together to sweeten the trade. So let me give you an example of how confluence works right so for swing trading, right uh, let's say the stock markets. This is a thing i look for.

Oh sorry, for the forex market, so number one you can look for is trend right. Whether the trend is heating up higher or lower. So let's say the market is in a downtrend. Then you can look for an area of value.

Area of value could be something like resistance market behavior right. This could be things like what is the statistical behavior of this market, for example, aussie, canadian right, statistically speaking right? It has a tendency to reverse at a previous week high or the previous week low. Not always right, but a good chance right that it does that an entry trigger could be simply like a price pattern to get you into a trade. To tell you that, hey, you know it's time to enter the trade.

So let me give you one shot. Example, to show you what i mean so, for example over here, you can look at this chart over here. This is aussie canadian. What is the trend? The trend is heading down: lower okay, so one thing is the trend heading down lower number: two: is it trading from an area of value you can see over here? The price is at this previous resistance, which could becomes sorry previous support, which could become resistance.

Number three: what's the market behavior, let's call it mb over here so market behavior, so aussie, canadian, as i've mentioned earlier, it has a tendency to reverse at the previous week high or low, and if you see this orange line, which i've highlighted over here, this is Actually, the previous week high, so there's confluence coming in right this previous week, high, is at the confluence of this area of resistance. So again we have this market behavior in our favor and number four. What about entry trigger? We have this. What we call this black arrow, which i shared over here, is a bearish encountering pattern, so you can see that this particular trading setup right has many things working in your favor number, one you're trading in the direction of the trend.

Number two is from an area of value number three right: you're aligned with the market, behavior of this currency pair and number four there's a bearish engulfing pattern right to kind of like signal hey it's time to go short right now, because there is selling pressure right At this area right, that's why you, the market, actually reversed down lower on this candle? Okay, so i'm not gon na show you the outcome of this trip, because i think the top process right. The concepts which i'm sharing with you over here is what matters and by the way, if you want to learn more about market behavior in the forex markets, you want to learn more about price action, support resistance, candlestick patterns. You can get this copy of this book called price action trading secrets. We cover all this and more in this 140 page full color trading book i'll, put the link somewhere below this video.

So you can get your copy right, just pay, shipping, printing and shipping, and that's it and with that said right, i hope you got value out of this. Today's training wish you good luck. Good trading! I will talk to you soon. Once again, the link is below this video to claim your copy of the book.

Talk to you soon.