First watch this 22 minute video-Trading Power Levels For 100+ Pip Move that shows how to use the power levels to catch a 100+ pip move in the market with a small 3-5 pips stop loss. Then watch this 5 minute NZDUSD Power Level Live Trade Example video plus you can try the Forex Mentor PRO program for 7 days for $1 and watch many more forex training videos FREE that can take your forex trading to the next higher level. For 7 days, you also get full access to the 2 forex systems used by these Forex Mentor PRO people for trading on H4 timeframe. Both these systems are real simple and demonstrate once again that simple systems are the best systems. There is a forum as well where you can interact with other members. This forum is moderated by professional traders and joining this forum can help you a lot in your trading. You can ask any trading questions and get them answered by professional traders in the forum. I highly recommend that you take the $1 trial for 7 days. Go through the systems plus the videos and also join the forum. If you like Forex Mentor PRO program, you can continue for a small price of $49/month.
Suppose you have a forex strategy that can make 100 pips on average with a stop loss of 20 pips. You only need to win 2 times in a series of 10 trades to make 200 pips and lose 160 pips making a net profit of 40 pips. But suppose your winrate is 70%. In this case you will be winning 7 trades and making 700 pips while losing only 60 pips making a net profit of 640 pips. So you can see it is essential that you have a forex strategy that catches big moves with a small stop loss.
If you want to learn how to catch a big 100+ pip move with a small drawdown of 3-5 pips then you must watch these 2 FREE Forex Trading Videos. The first one is a 22 minute video that will show you how to use the power levels with deadly accuracy. The second video is not long perhaps it is of 5 minutes duration only. In the second video you are going to see a practical example of NZDUSD power level live trade example. Don’t know what are power levels, these videos are going to show you how to identify these power levels. Image making 80 pips with a small stop loss of 6 pips. This gives you a reward to risk ratio of 13:1 which is very good. This is what the pro trader do. They manage the risk first. Only then they think about the profit. Don’t miss watching these two power level trading videos that can take your forex trading to the next higher level.
Catching the big moves in the market with a very small drawdown is what the pro traders do. They wait for the market to come to them and only enter into a trade when the reward to risk ratio is very good. What you should be doing is always look for very low risk trades as suggested above. Suppose you always look for a low risk trade that has a reward to risk ratio of 10:1 using these power levels. Also suppose the stop loss is always 10 pips and the take profit target is 100 pips. Suppose once again that your win rate is only 50% meaning in a series of 10 trades you lose 5 times and you win 5 times. So if you lose 5 times, you are only going to lose around 50 pips if you are using a stop loss of only 10 pips. In the same manner if you make 100 pips on average and win 5 times, you are going to make 500 pips. So you can see yourself the importance of having a good reward to risk ratio when you choose a trade.
A high reward to risk ratio ensures that you stay profitable and the drawdown is small. Imagine you only make 10 trades in a month. The winrate is 50% and the average size of the win is 100+ pips while the average size of the loss is only 10 pips. You will make on average 500 pips with a small drawdown of only 50 pips. Finding these 10 low risk trades is not difficult. A trade takes time to develop especially on the higher timeframe. If you are trading EUR/USD and the GBP/USD pairs, you can catch these 100+ pip moves in the market at least 2-3 times in a week. So you get ample of opportunity to identify these low risk power level trades on the different currency pairs.