2 Secret TIPS that made me a 7-figure Prop Firm Trader

Summary

In this video, Andrew, a $6 million Fund trader, shares two key strategies that helped him achieve consistent success in Forex trading. The first tip is understanding liquidity—how price moves by taking advantage of retail traders, and how identifying liquidity on different timeframes can lead to better trade entries. The second tip is timing—focusing on trading only during key sessions (London and New York), avoiding overtrading, and waiting for high-probability setups during times of volatility. By applying these principles, traders can improve risk management and overall profitability.

Takeaways

• 📈 Liquidity is crucial in Forex trading; it drives market movement and is required for price action.
• 💡 Retail traders are often used as liquidity for bigger market players like banks and hedge funds.
• 🔍 To identify liquidity, traders should focus on areas like daily highs and lows, trend line liquidity, and session highs and lows.
• ⏳ Timing is key in Forex trading, with two primary moves happening during the London and New York sessions.
• 🚫 Avoid trading between sessions, as volatility is low and it’s easy to enter bad positions or get stopped out.
• 🎯 Focus on trading during specific 'kill zones,' such as the first two hours of London or New York sessions, to increase win rate.
• 📉 Liquidity is found across various timeframes, from daily to 1-minute charts, and needs to be considered before entering a trade.
• 📰 Major news events like NFP, CPI, and FOMC often cause market volatility, making them great opportunities for high-profit trades.
• 💰 By waiting for liquidity to be taken and timing entries during peak volatility, traders can improve their risk management and success rate.
• 🗓️ Patience is essential; waiting for the right market conditions, such as post-news volatility, can lead to larger, more profitable trades.

Q & A

What are the two secret tips that helped the speaker become a successful Forex trader?

The two secret tips are: understanding liquidity in the market and timing when to enter trades.

What is liquidity in the Forex market, according to the speaker?

Liquidity is the availability of buy and sell orders that allow the market to move. It is controlled by big players like banks and hedge funds and usually lies in the retail trading space.

Why do 98-99% of retail traders lose money, based on the speaker's explanation?

Retail traders lose money because they often become the liquidity for larger market players to move the price in the desired direction.

How can traders identify liquidity in the market?

Liquidity can be spotted on time frames like daily, 4-hour, and 1-hour charts. Key liquidity points include daily highs and lows, equal lows or highs, trend line liquidity, and session highs and lows.

What is the importance of timing in the speaker's trading strategy?

Timing is crucial because the market typically makes two moves per day—one during the London session and one during the New York session. Entering trades only in the first two hours of these sessions increases the chances of success.

Why does the speaker avoid trading between the London and New York sessions?

The speaker avoids trading between sessions because there is less volatility, which leads to bad positions and potential losses. Price movement is less predictable during this time.

What advice does the speaker give about overtrading and overleveraging?

The speaker advises traders to avoid overtrading and overleveraging by only taking trades during high-volatility periods (such as session opens) and not forcing trades when the market is ranging.

How does the speaker use news events like CPI or NFP in their trading strategy?

The speaker uses news events like CPI or NFP to anticipate market moves. When the market is ranging in the days leading up to these events, the speaker waits for the news to trigger volatility and then enters trades aligned with their analysis.

What are 'kill zones,' and how does the speaker use them?

Kill zones refer to specific time frames when the market is most active. The speaker uses the first two hours of the London and New York sessions as kill zones to enter trades when price movement is most likely to occur.

How does the speaker use liquidity to plan trade entries and exits?

The speaker waits for liquidity to be taken from certain market areas before entering trades. This helps avoid being trapped as liquidity and improves trade entries. Similarly, liquidity points are used as targets for exiting trades.