Blog: Trading Heroes

A lot of things in your life can affect your trading performance. You might have had an argument, or just have many things going on at the same time. The more distracted you are, the more your trading results will suffer. Mediation can help you get into the right mindset before you trade. Watch this video and do the exercises before trading to...

Backtesting a day trading strategy is different than backtesting a swing trading strategy. This tutorial will help you understand the difference and give you the proven process for backtesting an intraday trading strategy. To properly backtest a day trading strategy a trader must...

A great feature in Forex Tester 5 is the ability to install custom indicators. This allows you to use the trade journaling and analysis tools in Forex Tester, while using the same indicators that you would use in live trading with MetaTrader. It really speeds up the backtesting...

A stop loss is one of the most important order types in trading. In this tutorial, I'll go over what a stop loss order is, how to implement it, and I'll answer some frequently asked questions at the end. After you read this tutorial, you'll know everything there is to know about entering a stop loss. What is a Stop Loss Order? All...

One of the best things about TradingView is that you get access to a ton of free indicators created by TradingView and its members. But that's also one of the biggest challenges with using TradingView. You can spend a lot of time searching through all of the indicators, only to not find what you're looking for. It can be frustrating. To make...

A stop loss a vital component of a profitable trading strategy. It limits your risk if you're wrong, and it preserves your capital so you can take advantage of the next opportunity. This complete tutorial will show you how to calculate your risk and position size, based on your maximum risk. Calculate Your Stop Loss The first step to calculating a stop loss...

Spirituality has traditionally been a taboo topic among traders. Many successful traders I've met or know of have a spiritual practice, but wouldn't talk about it openly. I feel that this is because trading has traditionally been a very male dominated profession where feelings are thought of as weak or a liability. However, depending on which study you read, as much as 90%...

Withdrawing money from MetaTrader 4 can be a little confusing when you're a beginner. The important thing to understand is that MT4 is just a trading platform. In other words, it's just a piece of software. Your broker is the one who actually holds your money, not MetaTrader. When you trade, your broker gives you access to the money in their brokerage account...

Most traders will experience a large trading loss at some point in their career. That generally happens in the beginning when they are first learning, but it can also happen later if they become overconfident. The key to coming back after a large loss is to stop trading, review your process, then make the necessary adjustments. After you've made the proper adjustments, start...

This is a common question that new traders ask, but there isn't one simple answer. In this post, I'll break down how to figure out exactly how long you should test a trading system. As a general rule, you should backtest a trading system for as long as it takes for you to have confidence to trade the system with real money. In...

Traders use a trailing stop loss to take advantage of trends and maximize their profit per trade. In reality, nobody knows exactly when a trend will end. Therefore, if you set take profit price, you'll lose out on a lot of profit if price keeps moving in the direction you expected. A trailing stop loss will allow you to flow with the market...

There are many trading strategies available on the internet. But how do you know if a trading strategy is profitable or not? A trading strategy is considered profitable if it has a positive result in backtesting and/or forward testing. The results have to meet the return requirements of the trader, and go through a series of filters to be sure that the results...

There are 2 primary methods of analyzing markets: technical analysis and fundamental analysis. Technical analysis uses the historical price chart of a market to predict future price moves. Fundamental analysis looks at underlying characteristics of a market like news, balance sheets, and other financial reports. Which one should you use? Or should you use both? Let's get into the details of each type...

You don't need to buy a separate indicator or EA to see the risk/reward ratio on every trade. MT5 already has a built-in measurement tool to do that. The Fibonacci Retracement tool in MT5 can be easily altered to show the risk/reward ratio on any trade. Open the settings of the tool, then add risk multiples to the Levels tab. Once you know...

There are several different types of moving averages out there, but my favorite is the Exponential Moving Average (EMA). In this beginner's guide, you'll learn what the EMA is, how it works and the results of a super simple trading strategy that uses the EMA. The Exponential Moving Average shows the average closing price of the previous candles over a specified period...

In my 23 years of trading experience and 15 years of running this website, I've found that backtesting is the absolute best way to figure out if a Forex trading strategy works or not. But many traders think that they need to know programming before they can backtest. That's simply not true,...

Brokers are not in the business of offering analytics. They are in the business of executing trades. So there are zero retail brokers that provide real analytics. I've been trading with Oanda for a long time, and they are great. But even they don't have advanced trading journal reports. That means you're on your own if you want to get useful...

There are many trading strategies that use the Relative Strength Index (RSI) indicator. Traders have come up with creative and profitable ways to use this indicator and it's available on every trading platform. However, what's not available on every platform is the ability to get alerts when RSI hits signal levels. Luckily, there's a great solution....

Two of the best known technical trading setups are the "crosses," or the Golden Cross and the Death Cross. They are used to signal the potential start and end of long-term uptrends and downtrends. This technical analysis method is usually used on the daily chart. A Golden Cross and a Death Cross are opposite signals and occur when the shorter term moving...

Before computers were a thing, traders used to draw their charts by hand. Munehisa Homma is famous for using Japanese Candlesticks to backtest and successfully trade what many consider the first futures market in the world, the Dojima Rice Exchange of Osaka. Fast forward to today, and manual backtesting is still one of the best ways to learn how to trade, and computers...