House of Trading experts in economics, financial analysis and Forex trading delivered a seminar in London on the psychology of trading, including mindset, method and strategies. Please enjoy the presentation from session two at the ActivTrades Trading Psychology event and get in touch with one of the team if you'd like to find out more about how the House of Trading can teach you to trade, make you profitable and set you on a path to a City account in months. www.thehouseoftrading.com

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The Importance of Method
and Strategies

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All financial products traded on margin carry a high degree of risk to your capital. They are not suited to all investors,
please ensure that you fully understand the risks involved, and seek independent advice if necessary.
The thoughts and opinions expressed here are solely those of the speaker and do not necessarily reflect the view of
ActivTrades Plc
This presentation is for information purposes only and should not be considered as an advice or an invitation to trade. The
decision to act on any ideas and suggestions presented in this webinar is at the sole discretion of viewer.
Any forecasts are not a reliable indicator of future performance. Application of the techniques, ideas presented is done at
the viewer’s sole discretion and risk
ActivTrades PLC is authorized and regulated by the Financial Conduct Authority, FCA registration number 434413.
ActivTrades PLC a company registered at N1702A, N1702F, Level 17 Emirates Financial Towers, DIFC, Dubai United Arab
Emirates. ActivTrades PLC is regulated by the Dubai Financial Services Authority under Firm’s reference No. F003511.
Disclaimer

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ENTRY STOP TARGET

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Risk Ratio
• Find previous Support &
Resistance areas
• Decide 1st Target Price
• Calculate Target Distance
• 11043 -10974 = 69 pips
• Calculate Stop Distance
• 10973 -10948 = 25 pips
• Risk Ratio = 69 / 26 = 2.7
Target / Stop
• Find a Trading Opportunity
• Decide Entry Point
• Deicide Stop
• Calculate Stop Distance
• 10974 -10948 = 26 pips
• To Calculate Ratio we need to
decide on a possible Target
• For Targets LOOK LEFT on bigger
Time Frame
Brief “PIP” Explanation
• Price Scale numbers known as
PIPS
• Forget the last digit
• Therefore 1.09000 is 1.0900
• Difference between
• 1.1000 and 1.0900 = 100pips
• Trading £2 per pip a 100pip
move would generate £200
• Focus on number of Pips rather
than Pounds could reduce
Psychological barriers
Think PIPS

5. Click to edit Master title styleTrade Management
• Follow stop 8/21 ema to judge distance (room to breath but never give it all back)
• On Trade Exit immediately re-evaluate/analyse possible re-entry point.
• Stop to Breakeven first goal (free trade)
• Target 20-50 pips each day
• Exit un-performing trade entries (be aware around -10 to -15 pips)
• Stand by all my decisions
• Each new trade I start from zero – no history - no emotional baggage

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How could we become a
Successful Trader?

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Protect Capital at all times!
Maintaining a positive Account Balance keeps you in business !
What is Money Management ?
The amount of Trading Capital you allow to be invested in any one trade
Objectives of Money Management
Longevity of your trading business
Reducing the inherent Psychological barriers to a minimum level

8. Click to edit Master title styleDepending on Trading Experience & Account Size
Recommended 1% to Maximum 3% of Account Size per trade
1% Risk
Advantages/Disadvantages
• Aim for 1% Capital investment on all trades
• Trading Capital £2,000 / Risk investment per trade £20
• Trading Capital £6,000 / Risk investment per trade £60
• No breathing room on Stops for small accounts
• Increases potential longevity
• Small Account Sizes do limit trading opportunities
• Reduces Psychological unbalancing

9. Click to edit Master title styleDepending on Trading Experience & Account Size
Recommended 1% to Maximum 3% of Account Size per trade
3% Risk
Advantages/Disadvantages
• Increased effect of Psychological unbalancing
• Trading Capital £2,000 / Risk investment per trade £60
• Trading Capital £6,000 / Risk investment per trade £180
• More breathing room on Stops
• Decreases potential longevity

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The Trading Plan
The importance of a trading plan for both the good times and the bad

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Learn the skills & Drill the skills
Equipment maintained
Trade to a Plan
Drill the process so it could becomes second nature
Risk/Expenses awareness
Practice, practice, patience & practice!
Re-evaluate yourself constantly
Trading
Basics

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Set your
trading
hours
Set-Up & pre-analysis
UK open / morning session
Lunch Break & education
US open / afternoon session
Journaling & Trade management
06:00
13:00
11:00
07:00
17:00

13. Click to edit Master title styleMake a Daily Plan
Baskets
USD Basket
GBP Basket
EUR Basket
JPY Basket
AUD Basket
CAD Basket
Check Sentiment
Calendar &
Announcements
High Impact
Medium
Impact
Analysis
Pairs Multiple
Time Frame
display
Daily Time
Frame
240 minute
Timeframe
60 Minute
time Frame
Analysis
Strategies
Momentum
Push
Price Action
Pull Back
potential
opportunities
Set Chart
Alarms/Alerts
Major S&R
240/60
Areas of
possible price
reversal

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Make a
Trading Plan
Be patient but alert to opportunities
Monitor Baskets
Opportunity Setting-Up
Set chart alarm
Check analysis
Place order
ENTRY (looking for better price)
STOP (30pip max)
TARGETS (Break even / S&R / max)

15. Click to edit Master title styleMake a
Psychological
Plan
The market
controls the
provision of
opportunities
YOU control
how you
observe the
market and
what action
you take Follow your
Technical
Analysis Rules
on all trades
Trade only
what you see
on the charts
(Viable set-up
YES/NO?) Trade
Probability
HIGH
Not so high
LOW?
I am patient
I am Ready to
take action
(Set price alarms)
I am confident of
my ability to
apply my trading
process

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Tailoring your trading stile to
suit your needs
Profit targets and stops to meet your relationship with risk
Account size and your risk appetite

17. Click to edit Master title styleUnderstanding your personality
• The value of trading is not in any individual trade, it is in the consistent
implementation of your own personal methodology.
• There is no one way to do the job as everyone is different.
• The clear pattern in trading behaviour is this: If you trade in a way that is
not consistent with your own self you could inhibiting your ability to win.
• We all have a natural walk and an authentic voice but we have to find it by
ourselves and for ourselves. You cannot trade like someone else because
you are not someone else! You could trade your way so get used to being
you and get accustomed to trading like you.

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Stick to your plan!