 Hey guys, so in this video I'm going to be talking about the best practices for forex traders. So what this simply means is what are the top six things that you should always do as a profitable forex, or at least if you want to become a profitable trader. So I'm going to be dropping six bullet points, things that you should always do while trading forex. So guys, if you want to find out more about this, I suggest you stick around to the very end of this video. Now guys, let's go over to the video. Hey guys and welcome back to my YouTube channel. My name is Dapo Willis. Once again, it's amazing to have you guys back here. As always, now guys, like I was saying earlier today, I want to talk about the six best practices when it comes to trading forex. So I've made a list, because I was doing a little thinking. I was thinking to myself, okay, so what are the, you know, I always like to come on here and give you guys tips, okay, try to help you guys as much as possible. So I'm thinking, what are the, you know, top six or top five things that, you know, could actually help my viewers, you guys that watch my content, what are the top five to six things that I feel could really help you guys so that every time it is you're getting into a trade or every time you're reviewing the market or you're doing your analysis, you know, it will kind of like guide you just being in your mind. So and you always know, guys, I always like to drop this in what step by step format in bullet points. So guys, let us see what's cracking today. Now before I get into the nitty gritty of this video, I need you guys to do me one little favor, smash that subscribe button right there and drop this video a like and don't forget to comment on this video. This is exactly how the videos get exposure. And we can obviously help more forex traders. You have to understand that I am on a mission. I am on a mission to help a million forex traders. Yes, the reason is because a lot of forex traders are just suffering. They're sick, tired, they're stressed out, they're absolutely suffering. And we need to change that more people need to be able to make money from the forex market and not just the broker. So guys, let's jump into the nitty gritties of this video. All right, guys, so the number one thing when it comes to, you know, best practices as a forex trader, number one thing that I encourage you guys to always do is to first of all, it's quite simple and basic, but a lot of people just don't know how to go about it. The very first thing is you want to define the market structure. For me, this is paramount. This is the very first thing I do. And I usually always do this on the monthly time frame. So what exactly is market structure? What direction is this market heading in? Are we going up? Are we going down? Or are we going simply going sideways? Now, once I'm able to determine whatever the what the hell this market is doing in the first place on the monthly timeframe or a weekly timeframe, then I give an example. Let's say as of the time I'm shooting this video, let me look at a pair and see what direction a pair is moving in at the moment. So from what I can see at the moment, AUD, USD seems to be very bearish, especially on the monthly timeframe. So I would simply go on the monthly timeframe and identify the direction, the flow of the river, what direction is this market heading to in the first place on a higher timeframe? Okay. First things first, I want to know what exactly is this market doing? What on a higher timeframe? So once I can identify what the market is doing on a higher timeframe, only then I will then, you know, imprint this in my brain. Only then will I scale down to a lower timeframe and trade in that direction. So market structures are very important. Like if you scroll down my YouTube channel, you'll notice the very first thing I always ask myself is what the hell is this market doing in the first place? All I'm asking myself there is what is the market structure? This will then guide your trading decision on lower timeframes. Okay. This will then guide your trading decisions on lower timeframes because once I can identify if this market is moving south, once I scale down to lower timeframe, my brain, my whole mind is just looking for sell opportunities. This way, if I see buy opportunities on lower timeframes, but the higher timeframe has told me sell, I would know that, okay, this buy opportunity will either be a losing trade or very temporary. Okay. So this is the hack. Okay. Higher timeframe direction of the market. What is the structure? And if the higher timeframe is moving sideways, then I know that on lower timeframes, I shouldn't really be expecting big moves. Because if the higher timeframe is ranging, for instance, the market isn't going to be trending, you know, 500, 600, it's just going to be going in a little, in a big range, right? So I will know that, okay, if I get in, I shouldn't be expecting to make anything more than 80 to 100 pips. So understanding market structure is actually very key and it should be the very first thing you should even think about whenever it is you open a what a forex chart. All right guys, so the second best practice you guys should always do whenever it is you're analyzing and trading forex market is once you've been able to identify the structure of the market, the second thing you should always do is try and identify areas of value. Now, I do, I analyze my areas of value on weekly timeframes. That's where you see me and this is where you see me come and plot my key levels. So areas of value are nothing more than areas whereby the market has respected a lot in the past. Now, why should we always trade from areas of value? It's because the market has told us historically that that level has been quite difficult to break in the past. And chances are that in the future, it's also gonna give us some headache. I'll take that again. The market has told us that this level is a significant level because it has reversed from this level previously. So how do you use areas of value to make profitable trading? How do we use areas of value to make profitable trading decisions? It's very simple. Personally, what I like to use my area of value for two things. So once I plot my levels, my key levels on weekly timeframes, I use it to first of all, identify profit targets. Because a lot of people might buy or sell and just because of the fact that they cannot identify the key areas of value, they can be holding a profitable trade and then the market gets to that area of value and then the market reverses and they go from having a winning trade to a losing trade. And one thing about traders is if the market probably gives you 350 pips and then the market starts reversing against you, most traders feel that, okay, I've made 350 pips, this market must give me back my 350 pips and then what happens is they end up holding that trade longer than they should. Happens to the best traders, it used to happen to me in the past. So area of value will save you from holding on to trades longer than you should hold on to them for. And the second way you can use areas of value, I like to use areas of value is when I scale down to lower timeframes and I want to enter a trade, I don't enter a trade at key levels, areas of value. I don't trade at those areas of values. I like to look for bounces. So let me put everything together in a clear perspective. I've been able to identify the market structure on a monthly timeframe and then I scale down to weekly timeframe and then I need to plot my key levels, my areas of value. So what I can do is, for instance, AUDUSD is bearish at the moment on a higher timeframe. I'm gonna wait for the market to bounce off of a resistant level, bounce off of a resistant level. Not, I'm not gonna be selling at the resistance level. I'm going to be trading the bounce off the level. Why? Because one thing about areas of value is, especially on lower timeframes, don't forget we analyze on higher, Forex mastery students, you know this. Forex mastery students, you know this. We don't trade at key levels. We trade the bounce of key levels because guys, one thing about areas of value is the fact that especially on lower timeframes, it is subject to a lot of market manipulation. Brokers, I wouldn't say brokers. Let's call them the people who move the market. I don't wanna cast a gate broker. So the people who move the market, they know that a lot of retail traders have orders at key levels. They know that a lot of them want to sell if it's at a resistance or they wanna buy at support. So what they usually do is they go and fake out the level. So I like the market to go and fake out all the, I call them dumb money traders. I consider myself a smart money trader and I consider all my students on the Forex mastery course. I consider us smart money traders. So guys, on module five, I speak about market manipulation. This is very important, very important module because I remember back in the days I used to get victim for this. I'll put my sell order, sell limit at key levels and expect that the market will get there and bounce off and then come down and make me all this profit. However, what used to happen was the market would get there, fake out the level, take my stop loss out and then start falling back down. So how you should use your key levels is wait for the bounce, always wait for the bounce off of these areas of value. So that's the second point. Use areas of value to your advantage. First thing I use area of value for is to enter my trade. I wait for the bounce, reject it. Go and run all the stops and then reject it. Send it back down like, aha, now you're ready to go. Number one, number two, I use areas of value to what set my profit target. So guys, obviously I'm going through these points bit by bit. I don't have my chance to explain all this, but on the forex mastery course, I actually go into this in detail, okay? Detail as to how you can plot these areas of value, how you can use the bounties and how you can plot the levels and actually anticipate profit targets up to 1,000 to 2,000 pips is madness. You think I'm joking? Scroll down my YouTube channel, you see me. I'm projecting thousands of pips. Speak to the students, they love this. This is the first time they've been able to project and some traders have never been able to project 500 pips into the future. These first some traders are actually coming in and actually seeing that, listen, I can actually project thousands of pips into the future, but I'm not gonna dwell on that too much. Let's go over to the next point. All right guys, so the third point when it comes to market best practices out of our top six is being able to identify reversals. So this is so key because point number one, we covered market structure, okay? You have to know where the market is going. Point number two, areas of value, take profit and entries and kind of like how to get into the market. Point number three, you need to be able to identify reversals. Now, a lot of people struggle when it comes to identifying reversals because I've seen a lot of situations whereby people are in trades and then there's probably like a lot of pips in profit and then for some strange reason, the market just turns around. Now, the question is how do you really identify reversals? Now, a lot of, so there's a module on the Forex Mastery course where I speak about is dedicated to reversals, but I'm gonna give you guys kind of like the ideology, the idea behind how you can identify reversals in the market. Now, for those of you who wanna grab the course, the link is gonna be down in the description as always. Now, for me, how I identify my reversals and from what is very important is, I always like to look, so reversals on higher timeframes, for instance, the weekly, if I see a double top on the weekly timeframe, I know that this whole bigger strain is about to change. Now, on lower timeframes, how do you identify reversals? I identify reversals on lower timeframes. I'll give you an example. Let's say I'm in a cell trade on GBP-USD on a one-hour timeframe and the market is collapsing, coming down, coming down, coming down. And then I notice that the market comes into not a major level of support, but I can see that there's a, that level is kind of like a support level, but it's a minor support level, right? And I see the market coming to that level. Ideally, I'm expecting that the market should break the level because the momentum is massive. We have an overall 1,000 PIP to run. Let's say we've done our analysis and we have 1,000 PIPs to look into. We've done our analysis, we're heading for 1,000, we're heading for the home run. But then I notice that as the market is selling off on a lower timeframe, I notice that obviously on lower timeframes, you can see minor support levels, right? And then I notice that on a one-hour timeframe, the market gets to a minor support level. We get there, we struggle around that area for a bit, and then the market bounces off of that level. I'm like, all right, cool. And then the market attempts that level again. Now, if on a one-hour timeframe, I see that we put it a double top at a level, sorry, a double bottom, okay? A double bottom at that level. What I'll most likely do is I'll most likely move my stop losses from where they are, slightly past break even. Now, what does all of this mean? On lower timeframes, if you want to identify market reversals, it has to occur at a level. However, on higher timeframes, reversals don't have to occur on any level. If I see a double top on a weekly timeframe, best believe my entire bias is changing. Now, when it comes to lower timeframes, if I see a double bottom or a double top, whichever the case may be, I will know that the market wants to go for a retracement. This doesn't mean that the entire market is reversing. It simply means that a retracement wants to occur. I'm going to take this again. On lower timeframes, when chat patterns occur like double tops and double bottoms, the entire trend isn't changing. It simply means that that market wants to stop falling temporarily and we want to go for a retracement to continue heading back in that direction. However, if I see a chat pattern be a double top, double bottom, head and shoulder and inverse head and shoulder, if I see that form on a weekly timeframe or a monthly timeframe, I don't need it to form at any key level. Once I see that bam, it simply means that the whole trend is about to change. So guys, this is exactly how you go about deciphering, but I see a lot of people make big trading decisions just because a one hour timeframe showed you a double bottom. I've seen double bottoms form on one hour timeframes and the market comes back and crushes that support level that was holding that market previously. You get what I mean? So this is the difference. One hour timeframes don't really hold that much strength. You get what I mean? Lower timeframes don't really hold that much strength. So I usually like to do my analysis on higher timeframes and then execute the trade on lower timeframes. So all I'm gonna be looking at on lower timeframes as for those little, I call them speed breakers, right? They're speed breakers. Doesn't mean that the car is gonna stop going in the direction. It just means that the car just wanna slow down, climb the bump and continue going. However, at that time, I will then start locking in profit because the market might want to go for an even bigger retracement that might stop me out in the process. So this is the difference. Lower timeframes, chat patterns don't change trends. Higher timeframe chat patterns change what the trend. So guys, once again, like I'm saying, I'm sorry I can't break this down into little chunks. The Forex Mastery course will be able to help you do this and the link is gonna be down below. All right guys, so the last tip I'm gonna leave you guys with before I have to run off. I've already been recording for about 17 minutes is please don't get distracted by the news. I remember starting off in the Forex market I remember I used to watch the news on Bloomberg. I used to check Forex factory every now and then I was so like zoomed into the news and I just used to wait for them to say something serious and then I want to trade that in the Forex market. The news only accounts for just 5% of market movement. I'll tell you what actually happens in the Forex market when it comes to news. There are only two news events that actually really move the market per se, okay? Overall, like if you prorate it based on how many times the news releases have come out and how many times the markets have really, really more significantly, you find out that there are only two major news events that actually get the market shaking. That's non-farm payroll and FOMC. Now, when it comes to the news, what I like to do is because I know that the news is nothing but a distraction, right? I simply just don't trade on non-farm payroll Fridays. What I do is I wait for non-farm payroll figures to come out and then I execute my trade. Technicals will always win in this market. The overall trend will always win. There are several times whereby the market has been, let's say, bearish and then non-farm payroll figures came out, it was really good, the market spiked back up and then three to four days later, I noticed that the market corrected all the way back to its original trend. So what I'm trying to say here in essence is don't be shook. The only traders that are really shook by these news releases are traders that are always looking at lower timeframes. If you're always looking at lower timeframes to make your trading decisions, it's gonna shake you. But if you, for instance, like the Forex Mastery students, you have the bird's eye view of the market. You can see exactly where the market is going to, okay? It's just like a farmer that is probably looking at a particular season to harvest his crops or plant his crop, whichever the case may be. And he knows that, I give you guys an example, in the UK we have winter from, we go winter in the UK from October all the way up till March, okay? And then summer comes around late April all the way back till September, okay? So you know these are the fixed seasons. You know these are the fixed, okay? These are the key levels, you know? And then let's say sometime in summer it now snows. You already know that the next day or next three, four days you can't wear a winter jacket to go out because it's gonna be, the weather is gonna go back to status quo because this is the season. Same thing in Niger as well. We know raining season is between April to October. So we know that and then we know dry season starts in around after October, is it October to April? Can't remember what the seasons are. Anyways, we all know that in December in Nigeria if it rains in December on one day we know that, okay, it's rained but we know subsequent days is gonna get dry and very dry and very cold, okay? Cause it's the hammered hand season. So this is the same thing with news releases. It's just a distraction, focus on the key trend, focus on the bigger picture. So guys, ladies and gentlemen, I wanted to say big thank you for staying to the very end. I don't know if I covered up to five points but I've actually written a lot more than this but I think these ones are actually the best ones. So I'm just gonna quickly recap, right? So first one is define market structure before you get into any trade. First thing is you wanna define market structure. Second thing, identify the areas of value. Like I said, the Forex Mastery course is gonna teach you guys how to do these things properly. Pay attention to reversal signs, especially on higher time frames but on lower time frames, if they occur on minor support and resistance levels, best believe that that market was going for retracement. And yeah, don't get fooled by the news events. They're nothing but a distraction. Thank you for sticking around till the end of this video guys. I wanna say big thank you. It's been 21 minutes, the long last video. Thank you for staying to the very end. Don't forget to drop me a like and subscribe. Once again, the link to the Forex Mastery course is gonna be down below. Guys, I'll catch you later. Take it easy and peace out.