David Aw| http://www.TradeForex4Freedom.com |Page 1

PrologueProfit From Emotions

Whenever I see chart, I rarely see emotion of traders negotiating if not

fighting for a region between supply and demand. However after I have read

some of Lance Beggs’ YTC Price Action Trader series he has change the

way I look at price action and the meaning behind the formation of

candlestick.

Why does certain candlestick form and why price move the way it move? It

has a meaning to it, some argued because of frenzy buying and selling that

cause price to move, others claimed that it is because of traders taking profit

or cutting losses that create sharp spike.

While Steve Mauro claim that it is those market makers that are hunting

stops, clearing you out for putting your stops to near obvious levels.

Whichever it is these are the places and emotions that plague even the best

of traders and how you can profit from it.

David Aw| http://www.TradeForex4Freedom.com |Page 2

10 Ways To ProfitFrom

Traders Who Are Trapped

David Aw| http://www.TradeForex4Freedom.com |Page 3

1. Fear ThatYou Might Be Wrong

I believe this is on the minds of every traders whenever a position is made,

would the market lead them or go against them.

A consistent but small candlesticks or ticks when form are a sign of caution

and hesitation while large chunks of wide body candlestick are sentiments

form in greed and fear.

Identify your reason for entering the position in the first place and if the first

sign occurs which is against the trend, you be well assured your direction is

in tally with the trend.

However if the second sign occurs against the trend, then it could be a sign

of profit taking or stop hunting. Either way get out.

David Aw| http://www.TradeForex4Freedom.com |Page 4

2. Fear ThatYour Profits Will Vanish

They say successful traders are merely traders who hold on to profits longer

then they hold on to losses.

They are impatience when the market goes against them but are extremely

patience when it lead them. Where to take profit and holding on to your

trade while watching profits diminish as market does a pullback, is what

separates the haves and the have not.

Identify the session when market pullback, is it Tokyo closing or London

open? Is it New York news release or New York closes?

Are you a day trader or a swing trader? If you are unsure, take the profits or

at least partial and protect the rest.

You can’t go broke taking profits but you are a fool turning profits to losses.

David Aw| http://www.TradeForex4Freedom.com |Page 5

3. Hope ThatPrice Returns To Breakeven

How many times have you try to close a trade just to break even but the

market breakaway just inches of your initial entry point?

How many times have you close your trade to break even because it went

against you only to have the market jump to your direction later and more?

Sometimes is good to have no losses because you waited for price to return

to your initial entry, while other times it is better just to take a small loss and

re enter if the direction has not changed.

It is better to have substantial capital left to claim another winner then to

have little or no capital at all to claim no chance of winning.

David Aw| http://www.TradeForex4Freedom.com |Page 6

4. Hope ThatMarket Gives Back Profits

Ever sense a peak in the rally which you had bought but you were hesitant

to close for profits? Most profit taking happens in the flash, with big chunks

of candlestick reverse in seconds.

This could be a pullback where those who had missed the rally could get on

it pushing price back to where it was or even further. The market would at

times give second chances to traders who game enough for more.

Look for sign of a double top or a triple top and also look out for which

session a pullback has occurs, most breakout occurs where volume and

liquidity are thriving.

So if it occurs upon London or New York close it is better to take the profit

and trade another day.

David Aw| http://www.TradeForex4Freedom.com |Page 7

5. Hope ThatMarket Gives More Profits

This is where greed meets regret. The way new traders make their losses big

is moving their stoploss beyond their initial expectation thereby giving more

room for market to go against them.

However the same move that professional traders tend to make is their profit

target. They will give more room for profits to run thereby adding more

buck to their time invested.

Where to take profit and where to cut your losses has to be made before

staking your capital in the trade. All emotions and rational thoughts are put

aside when it is done this way.

You got to have a mechanical way of taking profit and losses consistently so

that at the end of the day you could analyze what went wrong.

If you don’t plan to win, you plan to lose.

David Aw| http://www.TradeForex4Freedom.com |Page 8

Trading Resource Guide

Post Referenced

Self Discipline In Forex 101

7 Surefire Signs That You’ll Be Successful Trading Forex

21 Unusual But Achievable Ways To Trade Forex With Massive Success

21 Signs You Are Not Taking Your Trading Seriously

David Aw| http://www.TradeForex4Freedom.com |Page 9

About MeDavid Aw

David is an aspiring trader with a particular interest in

making a full time income trading forex for only 2 hours

per day. He runs TradeForex4Freedom a blog that

educates you about following the trails of the smart

money and how to profit from it.

10 Ways To Profit From Trapped Traders

Whenever I see chart, I rarely see emotion of

traders negotiating if not fighting for a region between

supply and demand. However after I have read some of

Lance Beggs’ YTC Price Action Trader series he has

change the way I look at price action and the meaning

behind the formation of candlestick. Why does certain

candlestick form and why price move the way it …