Forex Reversal Trading vs Trend Trading (Don’t Screw This Up)


Buy low sell high is the shittiest advice you could ever give a Forex trader Should you be a reversal trader or a trend trader? Well, I’ve already pretty much alluded to it But we’re gonna dig into this one pretty deep because if you get this wrong the chances of you ever trading at a pro level are very Very slim if you don’t know me, my name is VP. I’m a professional Forex prop trader here in the States and My goal is to get you to a pro level and get the right fundamentals instilled in you before the game even starts and if you’re a more experienced trader kind of push you back on to the easiest path to become a pro because there is an easy way and a very Very hard way and a lot of it at its core depends on your answer to this question right here so in this video, you’re gonna learn what the right answer is if you haven’t guessed it already and I’m gonna show you everything that is wrong with the wrong answer. I think the majority of you watching this video are probably on the wrong side and You’ve been doing it a while and you believed in it and I am going to in 10 to 15 minutes Do my absolute best to talk you out of it. Because if I can’t then you and I really can’t go much further Alright, so play along at home. What should you be doing? reversal trading or trend trading in forex The answer is trend trading and it’s not even close and I would wager to say that most of you don’t do this I would bet because the numbers already back this up that the majority of you are reversal traders you do try to pick tops and bottoms and I don’t disparage you for this look you heard the whole buy low sell high mantra growing up in investments and you just started out that way and some of you at some point probably did pick a top or a bottom and It made you feel amazing and why wouldn’t it? you went into a Four to five trillion dollar de market and picked exactly when it was going to turn I mean, especially when you’re starting out if that doesn’t make you feel like a god, you know, I don’t know what else does But it’s one of the worst things that can happen to you long term It’s the same thing as going to Las Vegas For the very first time and playing a slot machine for the very first time and hitting a jackpot on your very first pull You know, it’s great. But what it’s going to do is You’re going to allow yourself to just lose and lose over and over and over again until you chase that jackpot And that second jackpot might not ever come but even if it does all you are doing is Focusing on the possibility of another one hitting what you have lost focus on is your bottom line your trading account Where is it? Where is that trading account? Mr. Stud reversal trader guy who picks tops and bottoms at the end of the year What does it look like? Well for over 99% of forex traders out there who trade real money that answer is disappointing that answer is either break even barely profitable or for the majority of people down We just keep chasing that dragon don’t we? in This video I am going to do my best to explain to you why that method of trading was flawed from the start it really wasn’t you it was the way you were shown how to trade and The method that you just stuck with there was a problem. So let’s get into this first off. Let’s start with buy low sell high It’s probably perfectly fine advice in stock trading um a lot of you probably especially if you’re an American learned stock trading or at least, you know, We’re interested in it before you found forex, but it’s just not a good idea in spot forex at all I’m going to talk about this because and this is the biggest thing Understand this before you understand anything else overbought and oversold Does not exist in spot Forex if you have seen anybody utter these words With a straight face when talking about spot forex Run away and never patronize their website ever again because it’s not real and Telling you it is is one of the most dangerous things people can possibly do because currencies are not stocks equities like stocks like commodities like a gold they have real values attached to them stocks have assets and balance sheets and products and you can Factor all those things in to determine a reasonable price for a particular stock And if you feel that number is way too high Okay That stock might be technically. I’m doing air quotes here overbought But currencies aren’t like that. The price of any currency is whatever the big banks decide them to be What do you know about the big banks? Did you wash my big banks video? if You haven’t I’m okay with you pausing this video right now and going and watching and I’m gonna link it down below because it is that important you cannot be a real trader in this market and not understand who the people are that move price up and down and why they do it if You’re even going to be an average trader in this market. That is a Prerequisite and I break it down for you. Really really well in that video But I’ll I’ll give you a kind of an abbreviated version of it here For those who just want stick with this video the big banks of the world and we all know who they are These are four of the major players They have so much controlling equity in the forex market that if they decide prices going one way That’s where it’s going to go. You might think all these news events determine where price goes It doesn’t if it’s a big enough news event, the big banks understand that price will have to go one way But the big banks decide when that change happens not us It’s not like in stocks If a bunch of money all of a sudden floods into the market one way or another that determines where price goes in Currencies and spot forex that determines the opposite of where price goes Let me explain the big banks do this on any given day they have software That can tell where most forex traders have their money and not so much really have their money But where that money is headed So like on the euro dollar if that money for the most part is headed long then all they do is just take it short It is in their best interest to do that. They collect When they go the opposite way they lose when they go the same way that you’re going and by you don’t despair I mean the majority you can be in the minority That’s actually exactly where you want to be and if you can be in the minority more than the majority You’re gonna do just fine but the banks take price the other way and I’m going to show you in this video exact proof of how this happens and they take the money and Redistribute it back into the market and that’s how they are able to make price go up or make price go down so if you didn’t know before You know now and if you are still a bit confused or would like to know more about how this happens That’s where that big banks video comes into play. But let me tell you big banks absolutely, love reversal traders Reversal traders are the big banks oxygen They need you to survive if the big banks fed off trend traders price would never go anywhere But at some point on any given currency pair the big banks are going to want to take price up or down How far they take it up or down, Depends on how many reversal traders are setting they’re trying to call reversals on the way up or on the way down This is how it works. If you see a currency pair that trended down for a very long period of time it’s because all the way down there were reversal traders trying to call reversals and they just didn’t stop and Only when they all collectively said, okay, we give up. We’re tired of losing all our money. We’re gonna We’re gonna go ahead and bet with the trend that is when the reversal actually occurs. I’m gonna show you this So let’s go to the dollar yen That’s one that trended really good in the last six months or so That’d be a good way to, a good example for you. All right So here we are on the daily chart of the dollar yen. You can see about a six-month sample size here and This is a really good example because this pair had a really nice downtrend here and then made a really pretty little V and went right back up and What I’m going to show you on a tool that I used in my big banks video that pretty much proves Everything I’m saying to you right now Is that the reason why this trend went as far as it did and the reason why this one went as far as it did? Is because money kept going the opposite way They wouldn’t stop trying to pick the bottoms and the big banks said okay, if you’re gonna do that We’re just gonna keep taking price down and take all of your money Alright, so let’s move over to that tool now and here we are. I won’t even bother linking this below you can just go to www.dailyfx.com slash sentiment and it’ll take you right to it. It’s a neat little tool I don’t like it for predicting where price is going to go But I really like it for proving my point when people try to argue with me saying that There are other entities out there that take price up and down. No there isn’t it’s the big banks They are responsible for 99 percent of it and I will show you why let’s go to that dollar yen pair we were looking at Over there. Yeah, so this blue line and it’ll turn red if it gets too low But this is dumb money This is the reversal traders. This is the majority of the traders out there the people who run this have enough evidence enough data as far as what their traders are doing and they have so many traders that if their traders are doing it’s pretty safe to say That most traders around the world are doing the same thing So what they do is they figure out Which way their traders are headed long or short on any given currency pair and then you can see in the background where price? actually went so Kind of starting up here traders said okay, we’re gonna ramp up and try to go long and The banks immediately said okay. We’re gonna go short Trader said we’re gonna try to pick reversals. We’re still gonna go long and all throughout this process Price just kept going down down down down now they stopped going longer but a lot of them stayed long and that’s why this blue line is still so high and so during that whole process Where these reversal traders were sitting there saying okay any day now price just kept going further and further down There’s one time where they kind of all went short and as soon as that happen look, That’s where that retracement happened The banks said okay. You want to go short we’ll just go long Traders are like LOL. Jk, we’re going to go higher like we wanted to and the banks were like oh, okay we will just go lower and Only when did they all together decide to go short and keep going short Did the banks say okay now it’s time to take price Back up Traders all went long and stayed long price kept going down traders switch their pattern and The banks did too all the way up This is how they operate this trend will keep going down as long as traders. Stay long Only when do they all decide to go the other way? Does price go the other way This is how it works and how far a trend goes Depends how many people are sitting there trying to pick that reversal I know there are a lot of reversal traders out there right now, and I know this stings But I hope it’s starting to make sense to you Stop being a pawn for the bank’s because that’s exactly what you are. My logo for no-nonsense. Forex is pawn takes king That’s where we’re aiming for because right now if you’re a reversal trader King is taking pawn Every single time they are using you they are taking your money and they are loving it because people like you will never run out You will always be there to try and pick tops and bottoms You will always be there to lose and just like a Vegas casino They’re gonna give you a little win here and there just to keep you in the game just to make you feel strong and smart but in the end Your account goes down and their account keeps going up and I feel the need to throw this in here – because I’m an indicators Guy, but the indicators that you use any tools that you use to try to pick reversals are only doing you a disservice Because it’s like that first pull on the slot machine. They’re gonna work Sometimes there’s gonna be range bound markets where these things actually look pretty good But as soon as the market starts trending you’re done and let me tell you this – I am an indicators guy even the best Reversal tool out there on the market that I’ve ever seen is really bad So if that’s really bad. These horrible outdated things are even worse. But so many people use them You know how many hits these get on Google how many searches for stochastic sand RSI alone? thousands a month For a tool that even in the reversal world, which is already shitty are Probably the bottom of the barrel in terms of tools because what do they do? They try to find out when a currency is or currency pair is overbought or oversold And there is no such thing. So let’s go ahead and wrap this up in conclusion reversal trading It just makes it way too hard to make consistent money in forex everything is against you in particular the people who move price up and down or against you and that’s really Really bad. I implore you strongly to move over to trend trading It’s much more fun because it’s much more successful and I’m gonna do everything I can To set you up for success here. This channel was built to do that with very easy to follow instructions done in a very brutally honest tone because it’s about time somebody came into that and if you like the message I am sending to you right now if You are frustrated with all the other Twitter feeds and websites and YouTube channels telling you to do the same thing over and over again Seeing how well it works when they do it, but then when you try to do it, it doesn’t work that well This is where you need to be subscribe to this YouTube channel I’m going to springboard you so far ahead of most traders in a very short amount of time if you just go to The FX strategies core concepts playlist and just watch those videos alone. You’re gonna be in a much better place than 95% of spot forex traders in the world and then every single video I put out thereafter is just going to get you that much Closer to exactly where you’ve wanted to be this whole time. All right Until then go get it

100 thoughts on “Forex Reversal Trading vs Trend Trading (Don’t Screw This Up)”

  1. this guy is the shiiittt! OMG im so happy.. I just cant stop listening to him! he doesnt know it yet but he is my mentor! ill do my homeworks and will jump in..i will pay it forward! free infos!? im not use to that! wow!! what a blessing THANK YOU VP!

  2. I'm loving these videos mate. I've always thought the whole market was rigged (or at least completely random) and that all the stuff that EVERYONE teaches is just bullshit. A couple weeks ago I made contact with someone who showed me the light and confirmed to me what I was thinking. Now I find your vids giving me the same confirmation. Thanks mate, I'll go through every one of these and hopefully get to my goal of being a prop trader. BIG thumbs up!

  3. I question that the central banks sole purpose is to go after the forex retail market since it only comprises of a quarter of the market. We have no influence on forex; we just go along for the ride.

    The other issue is geopolitical economics. A country may want to lower their currency evaluations to stimulate their own economy.

    VP says some good things but many experienced traders say the same thing—go with the trend.

  4. I have been binge watching your videos and realize I have been successful in spite of myself, using really common indicators, etc.. You have hit the nail on the head. One of the worst things that can happen to a man is winning a big bet early in life.

  5. I just started today with this series, I am wondering if banks are doing the same thing in crypto
    Is there anything specific to crypto that i should exclude from this tutorial

  6. Hey man, wouldn't you be a reversal trader anyways if you are a trend trader? By trying to get in to the trend?.. Please explain,

  7. Great advice, and I think this is crucial. Forex can go up or down like crazy, going through all support resistance. In my experience, this is the number 1 way how people blow their accounts. I also learned the hard way.

  8. True words👍in the beginning of my traiding i try to use all of these indicators, but how you simply say…they doesent work! I was realy wondering why every trader use them. It was very confusing, because I even think thats my fault and that i use them wrong! Now i know it better💪
    I think i am right here on your channel😀

  9. VP YOU ARE TRULY AN EXTRAORDINARY MAN WITH A MAGNIFICENT GENEROUS AND HELPING SPIRIT.
    May God Bless U in all your endeavors, as you truly stand above with integrity, honesty, and excellence and expertise with a heart and soul that God longs to find in us and you are among the few. May HE keep you in HIs thoughts and bless you and shine upon u and your loved ones. Thank you for all your efforts to share all of your hard work. Please Don't stop. The hope, insight, education will definitely help many who struggle to have fruitful and successful lives. I look forward to learn from such a Magnificent Champion.

  10. The last time I binged on several videos in one night was when Breaking Bad was released on Netflix…..doing it again now with No Nonsense Forex videos!! Lol

    Thank you VP for all the knowledge you are sharing. Lives will be changed for the better as a result. 👊🏻🏆👍

  11. As a complete beginner who has never even demo traded, is learning to scalp worth it or a waste of time? I have taken a few free online courses so I am familiar with the basic terminology of forex.

  12. Amazing ! i can't tell you how grateful i am for the so fantastic job you've done , i was about to give up after YEARS of learning ,reading,analysing,all the bullshit you describe so well , i have tested all those crap indicators , and the light has come from you , all the things i was smelling without being able to clearly see , thanks you so much for my new eyes , i feel like a blind person who can see the light !!! you are on the path of Ray Diallo . If one day you come in France , i am living close to Bordeaux , between lakes and ocean ,do not hesitate to contact me , i have a little house in the country side where you can stay with your friends for free of course …

  13. trend in one timeframe could be reversal on another. isnt there merit for some diversification in strategies? not to mention markets are range bound most of the time (if you are focusing on one timeframe)

  14. Millions thanks VP. I should have been a victim of USDCAD, AUDUSD failed reversal this week if i went with the major traders (popular) sentiment.😂😂😂

  15. i haven’t binged watched a youtube channel/podcast and blog…at the same time…until now….#mindblown…this is by far the best christmas gift i’ve ever given myself…VPtheGOAT. grateful for you sir

  16. the least I can do, is to like and comment on your videos! I have been trading for 15 years and from I start to follow you, I have increase in my wins with over 40%. So THANX!!!

  17. truth, these big econ. data are being priced in, calculated to go towards a favorable way, then discarded out. just look at brexit, interest rate hikes and QE

  18. Hey man, I'm completely new to forex trading, and I'm hoping you can instill good practices and beliefs into this blank book. The first 4 trades I made, I blew out significant money, so I am taking a step back to prepare myself as much as possible. Your videos are an extremely interesting resource. Thanks

  19. so lets say when entering a trade my broker account says that there is 80% buyers and 20% sellers. would you say i should sell even if my indicators show that i should buy???

  20. i heard similar vision: trader from singapore with 20 y of experience told that following the trend is better than all other things.

  21. I feel like he's talking directly to me. I started forex trading years ago and I've been encouraged to give this a 2nd go. I made just about every mistake he's mentioned up until now. I only looked at USD trades, only did 2-3 pairs, traded on news events, over leveraged myself due to greed, and the list goes on. Taking a deep breath, figuring out how to make a plan that works on demo and will move back into real trading when I think I'm ready. I'm also going in this time with the purpose of getting better at just trading and tossing the idea that I'll get rich out the door.

  22. VP thank you, everyone knows what is Reversal Trading but I have no idea on how Trend Trading is working when you decide to get in a trade? what is Trend Trading?

  23. 1 Do you ever use range bar chart? 2 do you ever use Multi time frame indicators? 3 do you use Divergent indicators? Do you use Renko charts?

  24. This video bears significant weight. Most traders (me included) spent obscene amounts of time learning how to trade – reversals – because , well, that's the way we're taught and many of the indicators out there are designed to try and call tops/bottoms. For realz…it's a losing battle. Sure, you may get lucky once in awhile…but in the long run – your account is gonna get killed and you'll suffer financially and emotionally for it (been there). There's nothing like staring at a chart with pivot points, fibonacci and support/resistance levels, and whatever else you can dig up to give you a Denny's menu amount of choices to figure out where price is going to. If you don't choose wisely, you'll most likely get stopped out because it never hit your target – especially on a fast chart. Keep it simple (and logical)…abandon the fodder elsewhere and stick around here. Just say'in…

  25. Another Excellent gem of lessons, Thank YOU VP.. hope I can buy you a beer one day…(or coffee..if you don't drink) Cheers.

  26. One big problem I am facing with this trend trading thing is roll, or overnight fees. They are KILLING my profits. Maybe prop firms don't have this issue but to us normal blokes this is a serious concern…..

  27. Been watching almost all your videos. I learned how to trade on YouTube and learn “how to trade” they’re all pretty much reversals. 2 years into learning I feel like I have to start learning from the beginning. I wish you would do a simple tutorial how to trend trade. Thank you.

  28. Well you are right to some degree. Trend trading gives by far most chances to win the game but there are many traders who make a lot of money ( more than trend traders) . Guys like Jimmy Balodimas who is well described in Hedge Fund Market Wizards book chapter titled steping in front of a train. Nice title by the way:) That guy adds to losers and fades big moves yet he is the best trader in his proprietary firm.

    I can sense you are a technical logical person so for you indicators are great. You follow the trend well that's what suits you. Ricgard Dennis who made 100 millions in 10 years following trend once said even if he would describe all his rules in the most famous newspaper in U.S. poeople who had read it would not make a penny, why? Because they would not have the patience to follow the trend. He admited he takes many losses before trend starts but for most people taking 10 losses in a row and still keep going is not possible. Therefore they would not trust the system and stop trading it. Same would happen if you expose your algorithm people would not follow what it says due too impatience and untrust.

    Check out turtle way by the way.

    System should be chosen by a trader individually. I am going to continue watching your vid coz I am a strong believer that everyone is unique and therefore I take little from everyone to build my own unique system.

    Thanks for your wisdom VP

    You are doing a great job here.

    Happy trading everyone 🙂

  29. VP, my friend recently started talking to me about FOREX trading and I was intrigued immediately. He was telling me about a friend who was having a class for $150 and I thought well I want to learn a little myself before putting $150 to something I may actually not like or understand. So I began searching for podcasts and stumbled across a few without it really grasping me. Then I saw yours and I was instantly hooked! Not only have I been binging on the podcast, I’ve also started binging videos. Thanks VP because I know with your guidance and Tips I can have the upper hand on people who don’t listen to you.

  30. Smart reversal traders don`t enter on the trending market , if you analyse the chart a smart reversal , trader would have entered two times or three times , supported by the structures , great information thou…..i love your attitude you are a true liberator

  31. Wait, you know the Core Concepts stuff? I have that book here in my living room. Were you in the author's discord?

  32. Is not an alternative interpretation of the IG client sentiment graphs simply that lots of traders are trying to pick tops and bottoms but are doing a bad job of it? Would that not give you the same chart? Or do you believe that top and bottom pickers could not possibly be that bad at foretelling the future unless bigger players were gaming them?

  33. Thank goodness. Found something I did right when trading a live account Yayyy. Was taught Don't Buck The Trend. It was getting all the other stuff wrong that did me in and never even got around to learning about reversals and how to spot them

  34. VP, my heartfelt thanks for this video. i have no idea on why the candlestick reversal patterns work some of the time and don't work most of the time, and i have been working tirelessly to find out how to avoid the false reversal signals. I have been thinking and searching for a way to stay out of the false signals. Listening to this video for the fist time gave me the insight and knowledge on the why, the big bank why. Thanks again. Now, i follow your word – being a trend trader. Watching and listening to the same video by your goodself more than once help me to see the workings of a forex trader – learning how to swim with the sharky big banks and stay alive and reap good rewards in forex trading. Yes, i want to say "Thank you."

  35. Why is your goal… to get us to make money… for free… It just doesnt make sense to me, you may be giving sound adivce, but you are in it for the £$ ad rev or affiliate or somethig. No one helps people for ffree.

  36. please tell me does this apply to bitcoins/altcoins cause they r currency too (sort off). And r u going to do videos like these for cryptos?

  37. So if they know where the forex traders have their money then

    Whats the point of following the trend coz everyone is following the trend

    Wouldn’t the big banks change trend,

  38. This happend to EurAud shorts a couple of weeks ago. I kept telling my peers to stop shorting and they lost every time.

  39. Could we theoretically use the reversal tools and take the contrarian position which would put us in the minority position which would tilt the odds of the trade winning in our favor? Lol

  40. There’s a diff way to use rsi though. Don’t use it as overbought/oversold. Use it as a breakout indication… to identify trend . ☝️

  41. I have one very simple question: if the banks can do whatever they want with the prices and this is what drives the market, how can your indicators possible work? Can they penetrate in the head of these big boys? I see some contracdition here… And if there is one single indicator in the world that can do it, RSI and all the ”crap” indicators out there may well be able to perform a little better than you claim…

  42. What I don't understand about the thesis here is that retail traders represent a small share of overall volume; why would the "big banks" make their decisions based on retail traders' decisions? Seems implausible.

  43. I have been studying FX for 1 1/2 years full time and have never traded live, and for the past six months not even traded a demo acct. From the beginning, I have had a difficult time not trusting the trend and know it's the psychology within myself. Brought up by a low income single mother and learned early to find bargains and get good deals. This video confirms what I already know. Until I get my psychology right and can finally trust the trend, I have no business trading with real money or even a demo account. I have been trying to put together a trading plan with extra indicators that will confirm the trend so I can learn to trust it. I think I am getting close. So frustrating! I thought I would have been trading a year ago. Allot more to the story but bottom line is that I am really enjoying and binging on your videos. I just hope I am not one of those that just learn and learn and never end up trading.

  44. if thats the real interpretation of that site the client sentiment then i dont have a problem believing, but the question is that most of the big banks are on hedge position is;nt it?

  45. VP,
    I watched a lot of your vids and I love the way you make things clear. But eventually, I'm confused.
    You say :
    – Big Banks screw us (I think you're right);
    – Indicators are garbage (I'm sure you're right);
    – Moving Average Cross doesn't work (I KNOW you're right).
    What the hell can we do then ?

  46. VP: There is nobody else but the big banks, they are pretty much 99% of what drives the prices.

    The 1%: Are we a joke to you ?

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