HEIKIN ASHI TRADER - Blog

HOW TO BECOME A
PROFITABLE TRADER

Is scalping better than day trading?

9/15/2022

People ask me why I prefer scalping to day trading. After all, with both trading styles you have no open positions at the end of the trading day.

My answer is that scalping is more lucrative.

Day trading is about scanning the markets for opportunities, trading and waiting. The trade can last five minutes, a few hours, or more, but no longer than the end of the trading day.

Trading opportunities in day trading can arise from unusual circumstances, such as an overbought level on the daily time frame.

A scalper, on the other hand, naturally looks at minute charts.

He wants a quick profit, as quick as possible...

For a scalper, the ideal trade would have to take less than a minute.

Get in - take profit - get out.

What about slippage, the day trader may ask in his defense?

Slippage (when you get a worse price than you wanted) is one of the main criticisms of scalping. When the market moves too fast, slippage leads to poor execution. This leads to increased trading costs.

But slippage is a small price to pay in scalping.

Sure, it may cost you a little more here and there, but a scalper loves volatility. Volatility creates opportunity – which is much more important than slippage.

And what about the time spent glued to the screens? Scalping requires constant market watching, perhaps even on multiple screens, and it can be exhausting. That's one argument that opponents use.

No one said you have to trade all markets right away.

Trade 3-4 markets as a scalper. That is enough.

Small tip on the side: Focus on events with increased volatility potential.
For example, when inflation data is released in the United States. It is guaranteed that volatility will increase before, during and after the release.

So, by filtering out important economic events, you gain flexibility.

Wait a minute... Isn’t scalping just a technical trading style?

No.

Scalping works from both a technical and fundamental perspective. All that matters is that the market moves - who cares why?

So yes, I prefer to scalp: in, out – in, out.

What could be better than that?

Free Scalping Workshop

What is the best forex scalping system?

9/15/2022

There are a lot of scalping strategies, but what is the best forex scalping system?

If you trade, you've probably heard of Heikin Ashi C harts (see picture).

Candlestick charts are more popular, but heikin ashi charts are more effective if you want to scale currencies.

Heikin Ashi charts allow a trader to spot emerging trends early. If the color changes from green to red you have a short signal. If the chart changes from red to green, you have a buy signal and you know that you have to close your sell position from before.

If the signal is correct, the risk/reward ratio is usually in favor of the trader.
And that is exactly the advantage you want to have as a scalper.

Rice traders in Japan used heikin ashi charts as early as the 17th century to identify major trends. They filter out the wrong signals.

When scalping, it's a good idea to set yourself modest profit targets that deliver consistent gains.

They should, of course, outweigh losses that will occur from time to time.
To trade with heikin ashi charts you will of course need a trading platform that offers them. Check with your broker to see if they offer heikin ashi charts.

If not, find one that does.

One thing is for sure.

Heikin Ashi charts will dramatically simplify your trader life.

And it's thanks to that simplification that you'll finally become profitable.

Check it out in this free workshop.

Free Scalping Workshop

It is possible to make a consistent profit from scalping and get rich, but the process is not straightforward.

7/22/2022

It is possible to make a consistent profit from scalping and get rich, but the process is not straightforward.

In any financial trading strategy, traders should have strong knowledge about the price behaviour and context. Moreover, institutions and successful traders usually trade on higher timeframes. Therefore, people often consider that it is impossible to get rich scalping, which is absolutely wrong.

Scalping is not a guessing game. Like other trading strategies, it is a systematic approach to making money by following specific rules. However, most of the traders lose money in scalping, but why?

If you go to a lower timeframe and starts trading, you can call yourself a scalper, but it will not make you rich. Getting rich scalping is a process where traders should ensure profitability in every set of trades.

For example, If you have $200 in your trading account and make 10% profit per trade, it will take 20 profitable trades to make 600% profit. Let’s see the performance in a table:

The above example is the theoretical view regarding how you can get rich scalping. But in actual trading, the scenario might be different. There is no guarantee that you will make a profit in every trade. In that case, it may take 30 or 40 sets of trades in actual trading instead of 20, but still, it is worthy of following.

So, in order to get rich from scalping, stop random trading and find a scalping strategy that includes the market context. Practice a lot in a demo account until you find yourself profitable in every 20 trades.

After that, apply the strategy in the real chart but with a smaller deposit. If you are making money from it, you are ready to get rich scalping.

Lastly, one thing that can ensure your profitability is your trade management skill. The financial market unpredictable, and if you can reduce your loss and maximize profit, you can earn a lifetime profit from trading.

Free Scalping Workshop

Is it possible to earn $100 a day with scalping?

7/22/2022

The simple answer: Sure.

A more accurate answer: On average, yes.

Trading newbies often make the mistake of comparing the stock market with a normal job.

In a job, you get a salary. It might bring you $2000 or $3000 net. And you can rely on this sum, which your employer transfers to your account every month.

So, it is understandable that the newcomer to the stock market wants to "earn" a similar sum by trading as quickly as possible. That is why there are such frequently asked questions as, "Can I earn $100 a day on the stock market?"

The first thing the novice trader must learn is that there is no guaranteed income as soon as you enter the stock market. This seems obvious, and anyone you explain it to, should understand it.

However, it is my experience that you cannot easily get rid of this "employee mentality." If you have been used to getting a fixed salary for years, often decades, your unconscious mind tries to replace it with your "new activity."

The truth is: on the stock market you can earn much more than $100 a day.

Or much less...

And as we all know, you can also lose money.

Theoretically, everyone understands this.

But your "inner system" doesn't readily accept this banal truth.

So, you first have to learn to accept that on some days you can earn a lot, and on other days very little.

And here we come to the heart of the matter.

Yes, of course you can earn $100 a day with scalping.

Just not every day.

On Monday, you might make $40, on Tuesday, $ 450, on Wednesday, you lose $150, and on Thursday you make $160.

And on Friday, you might ask?

A little tip on the side: do not trade on Fridays.

If you've done the math, you'll have earned a total of $500 from Monday to Thursday. With five trading days (including Friday), that would be exactly $100 per day on average.

Exactly what you wanted.

So, take your $100 a day and skip the Friday trading session.

(I have met quite a few traders who have lost everything on Friday that they had earned through hard work from Monday until Thursday).

Maybe you are the exception that proves the rule?

What you need to learn is that profits in the stock market come in an asymmetric way.

That is, sometimes your trades bring $1000 in 5 minutes, and on other days, despite hours of effort nothing (or worse...).

Difficult, isn't it?

Exactly.

And the real learning curve, to a large degree, is to learn when it's a bonanza day for you (the big win), and when you had better keep your fingers still.

The last one is the hardest thing for a stock market newbie to learn: to do nothing.

You've just enthusiastically learned a new method. Maybe you've read a book, or picked something up on the Internet, and now you want to try it out.

Unfortunately, you don't yet have that inner gauge of when it's time to scalp, and when it's better not to.

How would you know? You have to learn that first, and you can't learn it in a book.

You can only get this experience by doing.

You have to lose all of your weekly gains on Friday a few times before you have the discipline to walk the dog that day instead of trading.

This kind of self-reward over achievement is important.

Because, as we all know, one of the hardest things to do with money is to keep it.

Ask someone who has inherited a certain amount of money. How much is left of it after 5 years?

The same question applies to trading: How much of your weekly profit do you take into the weekend?

And this is the big difference to a regular job. Here you are allowed to keep (or spend) everything you have earned.

That's why stock market trading is so hard. The difference is that, one day, you might not "earn" $100, but $1000 a day…

Free Scalping Workshop

The ideal beginner in trading

7/22/2022

Is there such a thing as the ideal beginner in trading?

“What a stupid question,” you might think...

But, for me, there is.

What do almost all beginners do when they start trading?

They start reading books, attending courses, or visiting stock market specialists.

In short: they search on the outside.

They look everywhere, except where they should be looking.

Namely, something right in front of their nose: a stock market chart.

The charts tell you everything.

For me, the ideal beginner would be the one who never reads a book about trading, never searches the internet for tips, and never takes a course on technical analysis.

(I know, I’m not exactly advertising for the stock market industry here...).

The ideal beginner would be the one who doesn't give a damn about any of this.

He would be like a kid looking at charts and being handed a demo account. And then there would be a red button (sell) and a green button (buy).

Immediately the child starts trading without having any knowledge about technical analysis and without any help.

And, of course, the child would have only losses at first.

But every now and then, he would make a fat profit.

Just by chance.

And the child would like it, this game with the red and the green button.

The child would want to sit down in front of the PC every day and play this game.

And, because children learn quickly, they would learn to do certain things less often (things that lead to losses), and to do certain things more often (things that lead to wins).

Because the child wants to win the game.

Children learn quickly.

And the child would quickly learn that, if he does certain things, he will succeed.

He would quickly learn (from his own observation) that certain things work well, and others just don't.

That would be my ideal beginner.

Is this a dream? An unattainable ideal?

Maybe.

But the problem is, after you have immersed yourself in technical analysis, you will never again look at a chart the same way that you looked at it the first time you saw it.

Never again.

You inevitably see resistances, flags, shoulder-head-shoulders, and whatever all those weird concepts are called.

Does technical analysis help you?

Do you make money with it?

If the answer is yes, all the better.

If not, you may have to become like that kid again and forget everything you ever learned.Is that even possible?

I don't know.

Why don't you give it a try?

Turn the demo game back on and do nothing for now.

Then maybe start buying where you never would have bought before.

And then try to sell where you would never have gone short.

Free Scalping Workshop

Finally become an adult on the stock exchange

7/22/2022

Most traders are insecure.

(A small consolation: the vast majority of people are insecure...).

Traders are no exception.

That's why they seek contact with other traders (for example, in trading forums).

Or they look everywhere on the internet for confirmation of their method.

Or for their current position.

They want to know if "the others" also think like them.

This is human, but wrong.

As long as you are looking for confirmation (or help), you will not be successful.

Why?

Because the masses are mostly wrong.

(This is the case in politics, in society, and also in trading).

As long as you cannot form your own opinion, you are still like a child who looks up to his parents and searches for confirmation.

As long as you see the stock market with the eyes of a child, you will lose.

Why?

Because only adults are on the stock market.

Being an adult means forming your own opinion (right or wrong) and bearing the consequences.

This is the only way to learn.

As long as you chase gurus, you are not an adult.

A small consolation: the vast majority of so-called adults are not.

(Otherwise they wouldn't be doing their stupid jobs).

Becoming an adult means not accepting a boss anymore.

That means no more stock market guru, no more newsletters, and no more external leadership.

Growing up means: relying only on your own judgment.

In other words: you have to leave the world of children behind.

Does that hurt? Yes.

Is there anyone to help you with this? No.

Are there any books, YouTube channels, or gurus to support you through this? No.

You have to do it yourself.

Without any help.

You have to make your own observations.

And stop following the observations of others.

You must learn to observe stock market charts on your own without bias.

And then, maybe... one day you will discover some patterns.

Your patterns.

You can trade them or scalp them.

Either way.

And then, you will start making money on the stock market.

Because they are YOUR observations (however crazy they are).

Because they are YOUR decisions.

Because you didn't ask anyone to let you do it.

Because you decided for yourself: here I buy (although all the world is short).

And here I sell (although the whole world is long).

Or whatever you have discovered for yourself.

It does not matter.

Do what you think is right.

And a tip: don't share this discovery with anyone.

Keep it to yourself.

That's how you grow up.

Free Scalping Workshop

Why you should be determined when trading

7/22/2022

Trading is a game of patience and perseverance.

With these two qualities, you can go far.

However, your success in trading depends on another crucial factor - your attitude. The way you handle your trades has a huge impact on your success rate.

Most beginners I have met consider trading a hobby. With this attitude, of course, they can't possibly make profits, and even if they do, the results are never consistent.

According to experts in stock market psychology, the typical trader prefers not to follow fixed rules when trading. He does not want to be responsible for the outcome of his trades.

He continually shirks responsibility by making excuses and blaming his losses on external factors such as market conditions, problems with the broker, etc.

The fact is, every time you look for an external excuse, you will feel more indecisive.

If you trade decisively, on the other hand, you take full responsibility for the trades you place. When you have control over your own actions, you can easily assess the risks, analyze your performance, and identify your strengths and weaknesses.

Professional traders are those who know exactly what they can and cannot control. And they achieve this by being decisive in everything they do!

But why is determination so important?

You should have so much confidence in your strategy that there is absolutely no room for hesitation, fear or doubt. As a determined trader, you react to what you see as soon as you see it.

When you are decisive and determined in your trading, you will feel empowered. When you know that you are in control of your trading activities, you develop a positive attitude, which is crucial for a trader.

I wish you the best of success!

Free Scalping Workshop

How to trade without stressing out

7/22/2022

Keeping track of the markets is amongst the more stressful jobs around. And believe me, job stress is pretty common. Amongst the most cited trigger of job stress is the lack of workplace predictability. Since trading is all about unpredictability, the stress is natural.

The pressure of making quick and multiple decisions in a day can take its toll on our brains, and when the chances of those decisions being wrong are high, then the stress starts to multiply.

One of the best ways to deal with stress while trading is to acknowledge that unpredictability is as much a part of the job as the stock market is!

Once you have that fit into your thought process, start to filter out which elements of trading are in your control and which are not. Market fluctuations are beyond anyone’s control, but your trades, and whether you book gains or losses are in your control to some extent. Once you accept the cause of the stress as part of the trading cycle, you will be able to cope

Coping will require that you make boundaries to specify what is possible for you to do and what you can't do. For example, if the market drops 50 points, you can't control that, but how will such a drop affect your trades? Work it out on your spreadsheet. Use this knowledge to improve your strategy.

Make scenarios of things that cause you to stress and see how it affects your trading goals. By focusing on the bottom line and what you can control (and what you can't) you can redirect your nervous energies towards making the most out of your stressors.

Acknowledging that stress will always be a part of your trading routine will help you address it healthily and positively.

Free Scalping Workshop

Common Mistakes Traders Make During Volatile Markets

7/22/2022

Market volatility is a phenomenon that can make the most experienced trader make a mistake in the heat of the moment. However, taking a moment to assess if you are making any of these mistakes should help you avoid making losing trades.

Increase your trade size: many novice traders get carried away by market movements and increase their trade size in the expectation of increased profits.

Deviating from your trading plan: it is easy to get sidetracked during sudden market movements from your trading strategy. Just run through your plan before you book any trade in volatile markets.

Get greedy: the markets seem to be favoring a sector that you didn't want to get into earlier, and you feel that your portfolio performance can improve by going into the industry. Think it through, see how the trade will fit into your portfolio if the volatility trend reverses. If you can ride out the reversal, then go for it. If not, sit tight and ignore!

Ignoring trade time frames: This is like the point above. If a trade in a sector you timed for a certain period is doing well, don't give it any extensions. If it hasn't yielded your expected returns so far, the chances are that it won't after you extend it.

Getting tunnel vision: it is easy for traders to develop tunnel vision, particularly if a specific company or a sector is gaining. Jumping on the buying or selling bandwagon is usually a bad decision.

Not booking Losses: it is usually wiser to book a small loss and exit a trade instead of continuing it and growing your losses. Volatility or positive movements can be a trap that will eat up your capital.

Not Taking Profit: if a trade has made you a profit, don't extend it. Stick to your strategy, and don't get trapped by volatile trends.

Free Scalping Workshop

Keeping Clarity Every Day

7/22/2022

The unique demands of trading can leave most traders feeling stressed and overwhelmed. Even if you may not feel it, it is helpful to apply tactics for unwinding from the rigors of extended trading periods and recharge your mind to maintain and improve your mental focus.

This is essential as trading has its unique set of pressures that need a sharp mind to handle them.

Keeping a clean and tidy workspace and a starting and ending routine helps train your brain to focus and unwind from its work modes. Some of the tips given below may not work for you, and maybe they will all work. We are all unique and need to know what works and doesn't work for us.

Mental relaxation and focus exercises:

Trading logs are highly recommended for traders to determine and follow strategy. They also assist in improving mental focus. To maintain clarity, try doing mental exercises and mindfulness workouts to clear your brain from distractions and help focus.

Keeping Distractions at Bay:

It is easy to get diverted by various distractions. Many traders blame cell phones for being a disturbance. It is sensible to put your phone on work mode and limit all notifications during your workday or even workweek to just the essentials. The same goes for non-work emails and phone calls.

Recharge Your Brain:

It is also a great idea to take short breaks all through the day. Extensive periods of focus can affect our mental and physical health, and taking short breaks helps relax our bodies. These breaks will help to release some pressure and relax your mind a little. Do some stretches, read a book, listen to some music, do a crossword puzzle, talk a short walk, or whatever works to relax and boost up your mood.

You need to figure out what helps you more and what is not so helpful. However, it is a good practice to keep some physical routine to remain active and healthy.

It is easy to lose focus on the end goals and trading strategies if a routine of refreshing and reviewing them is not followed. Following these practices allows our brains to keep a clear focus on what is needed and how we need to go about it.

Free Scalping Workshop

He traded for a hedge fund and then went on his own. He specializes in scalping and fast day trading. His scalping book "Scalping Is Fun!" is an international bestseller and has been sold more than 30.000 times. His books have been translated into 11 languages.

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