Doomed Live Forex Trade Video -35 Pips on EUR/USD

I took a bad trade.

A member of the advanced course asked me on Tuesday if they should trade a reversal set up that was forming on the EUR/USD 4hr and 8hr chart.

The reversal looked ok but there was a major flaw with the set up.

I told my student not to enter the trade as it was doomed to fail.

…and then

I entered the trade and shot a live trade video.

I took the trade in order to show you why it was a horrible set up and why it was doomed to fail.

You should watch the video below right through to the end as I reveal a lot of price action goodies in the last five minutes.

This is a HD youtube video, so click the gear icon to turn on 720p and watch at full screen.

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38 thoughts on “Doomed Live Forex Trade Video -35 Pips on EUR/USD
  1. nice educational video Nick!
    like your trading style and your free training!
    i’m still on the side line not actively trading yet,


    1. Hope you start trading soon Vanistendaeld. Give it a shot it is the only way you will learn.

      Thanks for commenting!

    1. Considering I closed the trade at around the 9 min mark that would have been tough.

      Anyway, a large portion of visitors do not have English as a first language. So I need to ‘labour’ a point for them.

      If I do not explain my point several times over in many different ways I end up with a lot of requests for clarification. 

      I can understand how it may seem repetitive to a British person such as yourself. However, to somebody in the Philippines, for example, repetitiveness may be appreciated.

  2. This should re-inforce the point that you never Buy into Resistance or Sell into Support…
    Of course these S/R areas vary, depending on your Time Frame and Targets, but the concept is valid regardless…Keeping an Edge in Trading, is extremely important…
    Good Video Nick..!!

    1. They vary to an extent. For example I use the same support and resistance on the 1hr, 4hr and 8hr charts. I use the same support and resistance on the daily as I do on the aforementioned charts but I do prune out the weaker ones.

  3. Nick – this is a first class training video and a great addition to your set of training materials. I don’t think that you over-work the information – even the most efficient learners benefit from hearing the same material in a variety of ways. 

  4. Hi Nick..just came across your site and love the videos keep up the good work for us poor newbies ;)

  5. What a great lesson! I was really taken with the graphics of the bears lined up at resistance and the bulls lined up at support with the playing field between them. Unfortunately, I have made trades like this too many times. Having a reward less than the risk is never a good idea. I have made a note card with the bears and bulls lined up and put it on the cupboard so I can see it as a contemplate trades. It will remind me not to buy into resistance or sell into support. Thanks for the great lesson, Nick. Going over it many times is not a bad thing.

    1. Vinomaker, thanks for the comment.

      It is pretty cool that you actually printed it out! I am glad this post has helped you out man.

  6. Hey Nick – What a great idea;  recording a student’s trade suggestion which you analzed as a bad trade idea and then following the price action as it materialized. Your explanations on supply and demand are excellent. Thanks for your desire over the years to help new traders develop in this business.

  7. The problem is… how to spot where the bulls and bears are. Every candle from the right side to the left of the chart shows a different level and so there are too many levels (sup/res), on a chart where price can and will reverse. Which level is safe to enter is anyone guess and that is why traders eventually will loose all their account. Like playing slot machines. 

    1. I have fixed support and resistance that has been sitting in the same place for months. I trade in between my fixed support and resistance.

      Your ‘problem’ is not valid once a trader learns to spot and place proper support and resistance areas.

      The areas you identify to the left and right are minor support and resistance. These areas are safe to trade through as long as the candles show bear/bull strength.You cannot compare Forex to slot machines simply because you don’t know how to trade it.

      Here is my guide to spotting support and resistance:

  8. Wow, I haven’t watch the video but only few traders can honestly post their losing trade. Good on you Nick

    1. You should probably watch the video. I entered this trade on a demo account knowing it would fail.

      That being said, when I shoot a video of a bad trade I always post it. Go to the ‘live trade videos’ section there are a few losing trades there.

  9. Thanks nick, support and resistance lines are a great way of visualizing the Forex… 

    Question?Do you know many other successful FX Traders?  at one point in my life I believed that the Forex Trading was a hokes, because I was not sure if anyone really made money…

    1. Sorry Jabania, I seem to have missed your comment the other day.

      I know several successful traders. I speak to them daily in the advanced course and I know a few others on Skype. My girlfriend is also a succesful trader.

  10. Good video of resistance levels in action, Nick. Close proximity resistance levels make for short corrections more often than not.

    1. Definitely, this one was extremely precise. Usually price sinks into resistance a but before reversing but this one barley touched before rocketing down.

  11. Thanks Nick,  For me looking back at failed trades, or what would have been failed, is usually more educational then looking at those that went right.

    1. For me too. I learn more from my failures than my successes. Thanks for reading and commenting PipRanger.

  12. Great video and explains a lot.  Im looking at the 8hour chart now and considering a possible long trade at the 1.2540 mark as its looking as if its possibly going to start a reversal.  My question would be, would you wait for the new candle to start above the current or get in before hand?

    1. Sorry about the late reply mooch. 

      I can certainly see why you wanted to enter that trade. It was a great spot, I was going to enter it too.

      I would get in as soon as my trigger line is broken by a few pips. Sometimes I wait for a retrace so I can get a better entry.

      I see one problem with your entry…

      1.2550 is a psychological level. You should always pick the psychological level as your entry if it is nearby. It might seem trivial but the 1.2550 was the safer entry.

  13. This is ridiculous. Nick a TRADER.
    Wants to show as predicted a doomed trade which is bound to fail asked his student not to take it but he still opens a trade and loses over a $1000.

    Nick where is the wisdom in that. this is pure gambling.



    1. erm… it was a demo account to give a tutorial as why not to take a trade, did you even watch it before commenting?

    2. As Mooch said, this was a DEMO trade.

      Watch the video at the 00:50 mark.

      Congratulations on making an idiot out of yourself on a blog read by 10,000 people.

  14. Good vid post Nick. Personally, I think that lack of appreciation of support and resistance levels  is one of the major reasons why inexperienced traders fail.

    Identify these key levels, trade in between them using the magnetic attraction of these levels on price and only take trades when the Reward:Risk stacks up in your favour.

    Pretty simple really…;-)

    1. Yes, that is what I always say. Price action is simple in concept. Obviously in practice you will hit some bumps. However, trading is not as hard as many make it out to be. All that is needed is a solid understanding of price.

  15. Yeeeeup it happens I took a trade on NFP last week that I shouldn’t have taken either.

    Quick question: How many trades on avg do you take? I’ve slowed down my trading in the sense that I look for one single pattern across a few pairs, on 4 hr and 60 min charts and now I take between 1-4 set ups a week. Its a lot slower than what I’m used to, and I like it bc you can see set ups forming way n advance, and your not glued to the screen, so you actually have a life. But sometimes like last week its tooo slow, and I took that trade out of boredom more than anything else.