It is always a good idea to watch videos made by other traders in which they share their trading ideas and strategies. In the video below you can watch Steve explain how he managed to make 417 pips in just 1 single trading day.
Steve talks about the BAT pattern, GARTLEY pattern and the Cypher pattern in his video. You should be familiar with these patterns if you want to understand his trading system. There are many patterns that you can use in your trading system. You should start with candlestick patterns. First master how to trade with candlestick patterns. Watch the video below in which another trader explains how to trade his favorite candlestick pattern. Once you are comfortable trading with candlestick patterns you should move to the next higher pattern and learn how to trade with BAT, GARTLEY, CYPHER patterns etc. These patterns are combination of fibonacci levels with certain ratios. These are complicated patterns and traders take some time to master how to trade with these patterns. You should also read this post on how to trade with 1-2-3 pattern.
Risk Management Is Very Important
When you are trading, the most important thing is risk management. No matter what pattern you are trading, there is always a probability of failure. When we are trading we are dealing with probabilities and the law of large numbers. There will always be a chance the trade is going to fail. How do you deal with it? We will deal with it by taking risk management very seriously. Always make sure that you don’t risk more than 2% of your account equity at any time. If you open multiple trades then make sure that the account cumulative risk is not more than 2% at any moment of time. This will help you a lot in avoiding a big loss. Any thing can happen.
Do you know about the Black Swan event? Black Swan event is something that happens very rarely but when it happens it shakes the market. Think about the 1987 market crash and the many flash crashes that happened all of a sudden destroying thousands of accounts in a small amount of time. There is a probability that this type of an event can happen any time. No matter how small that probability is, there will always be a chance of these type of events happening. So by taking risk management seriously you always reduce your chances of suffering a catastrophic blow. Think of trading like playing cricket match. Every ball has a chance of getting you out. You play safe and avoid risky shots. Just make a few runs each time. Overtime these runs are going to accumulate into a big sum. You should read this post on how to trade with the doji pattern with low risk.