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M15 Trading

I wanted to make a page dedicated to the new Rich Lazy Trader M15 scalping method as I consider it the most exciting and profitable trading I have ever done! There are a few scalping systems that actually do produce a profit but none of them have the same confidence inspiring results as this one - and so people tend to give up because winning 50% with the usual 1 to 1.5 SL/TP needs an iron constitution to keep up for more than a day or two. If you have 3 losses in a row, it is difficult to continue following the rules.

The new RichLazyTrend indicator means that I expect to win 4 out of 5 trades with the 1 loss usually being closed before it gits the full SL. Likewise, I close most of my winning trades before they hit the TP because I would rather have a certain $100 and the satisfaction of another winning trade than risk holding on for $150 or $200 when a sudden retrace might give me a loss. Only when we get a strong sustained move in the right direction do I wait for the TP to be hit.

Previously, I have always said 'stick to the rules' and let winning trades run but conditions these days are unpredictably volatile and since our trading is run by our emotions and confidence (or lack of) it is, in my opinion, better to have 4 small winning trades than 2 big ones plus 2 losses - even though the profits may be the same! In any case, with the tight SL and large Lot size used for our M15 trading, even a 3 pip win gives us worthwhile money on our capital. It is important to think long term and just 10 pips a day which might be 5%, compounded over a year would turn $100 in $2 Million! OK, probably not going to happen but I want to impress on you the potential of small steady profits over the long term.

So now let's go into detail about how to get the best results. Firstly, you need to choose which instruments to trade. I would always include Gold and the others depend on your time zone and the current conditions. Europeans should consider the EUR/USD because it has a low spread and a GBP pair because they are usually volatile during the London session. Most will choose the GBP/USD but I prefer the JPY pair, particularly if I already have the USD in the EUR/USD chart. Then any of the Forex Majors will do if they look useful on the M15 chart. US clients are awake for both European pairs and Australasian pairs while Australians are more restricted to what moves well in the Asian session - the EUR/GBP would not be a good choice...

We are looking for some nice waves but be careful - because the MetaTrader chart expands and contracts to fit the price range, so we might have very small moves looking like normal big moves! I've fallen for this, made a trade and then discovered it needed to move two grids before it showed a worthwhile profit because it was really sideways movement enlarged to fill the chart. This can happen early in the European morning before the markets open, for example. Always check the number of pips between grid lines to make sure we have normal movement!

Now let's take a look at some trades where the RichLazyTrend indicator gave us a useful advantage. Remember, it is better to eliminate risky trades even though they may turn out to be winners because our confidence takes a blow every time we have a loss!

So Here we have the M15 EUR/USD and the first large candle changed both Trendlines to indicate a Buy trade at the open of candle 1. However, The RichLazyTrend is still in the middle of the No Trade Zone and while the next two candles do go up a little, candle two has a vicious retrace which would have hit our SL. What looked like a good trade was saved from being a loss.

Next on the open of candle 3, both Trendlines changed to indicate a Sell trade (not, as it now seems, on the open of the previous large candle) and indeed the RichLazyTrend has just gone into the Sell Zone. OK, we open a sell trade but even though the price does go down on the next candle our RLTrend actually comes back up slightly telling us that this is a very weak trade. Sure enough both the 9 Trendline and the RLTrend say to close the trade on the open of candle 4.

Some traders may like to take advantage of longer trends on the M15 chart and this is where the new indicator can be very useful. Once we are in a good winning trade and the RLTrend pushed well into the Buy or Sell Zone (indicating a strong move) we can drag the TP further away and wait to close manually when the RLTrend tells us the move is over.

On the right is the M15 Gold chart and you can see the RLTrend indicates a Buy trade on the open of candle 1. It is well into the Buy zone by the next candle so it looks like a strong move. Sure enough we could have dragged the TP well up and waited from the RLTrend indicator to drop back out of the trade zone - which it does a whopping 63 points later. This would have given us over $300 profit trading the conservative 0.5 Lots on a $1,000 account!

Remember to stick to the basic rules - no trading if there is sideways movement, no trading immediately after an extra large candle, open a trade at the start of a new candle and don't trade during the dead times between markets.

The new RichLazyTrend indicator can greatly improve your profits and reduce your losses. Learn how it moves and what it is telling you and you can much more easily become a successful winning trader. Look at my results in the pdf Guide where I casually made $1,200 from 4 trades in just 16 minutes. This is not exceptional and such opportunities happen most days...