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Thank you for choosing Forex Fortitude Academy as your partner on this exciting trading journey! We're thrilled to have you on board and are committed to ensuring your success. With our expert guidance, dedication, and your hard work, progress is inevitable. Get ready to unlock your potential and see the results you've been working towards. We're confident you'll be more than satisfied with your growth as a trader. Let’s go and make it happen!

It’s always important to highlight and know your why factor in your trading as knowing that can help you to avoid 90% of the problems we face as traders. Your factor often influences your decisions and how you think in the market.

As expounded further in the course some of the universal problems we face are Greed, taking random Trades, Trading Signals, Fear of Missing Out ETC>.

For first time traders and often seasoned traders, a lack of self-awareness in this case, for example: Not accepting that most of your trades are fueled by wanting to be validated by showing others big results or wanting to get that million dollar trade will often block out the essentials of what should be practiced ( Risk management & A systematic approach) to try and achieve your unrecognized “WHY”.

What we want as traders is to make money, but the perspective has to change, viewing things in a long-term perspective. Make your “WHY” to be successful and have trading as a tool to help you achieve that. A long-term mindset will be your best friend.

1. Greed – The desire for more profits can lead to taking excessive risks, holding onto losing positions too long, or overtrading.

2. Fear – Fear of losing money can cause hesitation, missed opportunities, or premature exits from trades.

3. Low Confidence – Doubting your trading strategy or decisions can lead to indecision and second-guessing, causing inconsistent results.

4. Overconfidence – Believing you can’t lose, or underestimating risks can lead to poor risk management and large losses.

5. Impatience – Rushing into trades or not waiting for the right setups can result in poor entries or missing better opportunities.

6. Hope – Hoping a losing trade will turn around rather than cutting losses early can lead to bigger losses.

7. Frustration – Emotional frustration after a losing streak can cloud judgment, causing traders to make rash decisions.

8. FOMO (Fear of Missing Out) – The anxiety of missing a potential profit can lead to entering trades impulsively, without proper analysis.

9. Anger – Letting anger from a bad trade influence future decisions can lead to revenge trading or erratic decision-making.

10. Euphoria – Over celebrating a big win can result in taking on excessive risk or becoming too emotionally attached to trades.

These emotional errors can significantly impair decision-making, so it’s important for traders to recognize and manage them effectively.

Having a strong psychology and approaching the market in a systematic way is key to avoiding emotional errors and improving your win rate. Here's how it works:

1.    Emotional Control: When you have strong trading psychology, you can manage emotions like fear, greed, and frustration. A calm, disciplined mindset allows you to stick to your strategy without letting emotions take control. This prevents impulsive decisions, such as overtrading or prematurely exiting trades, which often lead to losses.

1.    Consistency: A systematic approach means you have a clear, defined trading plan based on rules and logic, not emotions. This consistency is crucial because it allows you to make decisions based on analysis rather than feelings. Whether you're experiencing a winning streak or a losing streak, you follow your system, which reduces the risk of emotional swings affecting your trades.

2.    Risk Management: A systematic approach involves setting clear risk management rules, such as stop-losses and position sizing. Knowing exactly how much you're willing to risk on each trade means you're less likely to let fear or greed dictate your decisions. This protects your capital and keeps losses manageable, ultimately leading to more consistent performance.

1.    Objective Decision-Making: With a well-defined strategy, you are not swayed by market noise or the urge to chase quick profits. You follow specific criteria for entries, exits, and stop-loss placements, ensuring that your decisions are based on logic, not emotions. This leads to more calculated, well-timed trades.

3.    Resilience: A strong trading psychology helps you recover from losses without letting them affect future decisions. If a trade doesn't go your way, you're able to stick to your system, learn from your mistakes, and continue executing your plan without becoming discouraged or emotionally driven.

Patience: A systematic trader knows the importance of waiting for the right setup. Instead of jumping into trade due to impatience or FOMO, you focus on quality trades that align with your strategy, leading to higher probability outcomes and better win rates.

By combining strong psychological discipline with a systematic approach, you're less likely to fall victim to common emotional errors, leading to a more consistent, higher win rate in the long run. This mindset helps you stay focused, make objective decisions, and weather the inevitable ups and downs of the market with confidence.

In trading, it's essential to remain in a constant state of psychological awareness. The human mind naturally tends to revert to emotional patterns such as fear, greed, impatience, and overconfidence—traits that are part of the normal human experience but highly detrimental to trading success.

To combat this, traders must actively and consistently remind themselves of the mindset required for peak performance. This involves deliberately staying in “trading mode,” where decisions are made based on logic, discipline, and strategy—not emotions.

Practical Ways to Maintain Psychological Discipline:

1. Consume Psychological Content Regularly
Listening to YouTube podcasts or watching interviews with experienced traders and psychologists can reinforce mental principles and keep you aligned with the mindset of professional performance.

2. Read Books on Trading Psychology
Reading material that focuses on trading psychology helps you internalize essential concepts such as emotional regulation, cognitive biases, and mental discipline.

3. Journal Past Mistakes and Learn from Them
Keeping a journal of your trades—especially your psychological state during them—allows you to reflect on what went wrong and what improved. It serves as a mental mirror that helps you stay out of destructive emotional patterns.

By integrating these habits into your routine, you can train your mind to resist slipping back into counterproductive emotional behaviors, staying in control and focused on long-term consistency.

Now that we’ve passed the Fundamental Psychological points lets dive into the technical of trading. What are the “Technical aspects of Trading”

From the point of view of a technical analyst, each candle, each line, each number and trend play a part in telling the story of deciding in if he will Buy or Sell price.

So lets now explain fluently, the fundamentals of what you need to understand.

News events are scheduled or unscheduled events that release important economic or geopolitical information, such as government reports, earnings announcements, or natural disasters. These events can significantly impact financial markets, including Forex.

1.    Market Volatility: News events often cause sharp price movements because they provide new information that can change market sentiment. For example, a surprise interest rate hike can lead to quick moves in a currency pair as traders react to the news.

2.    Expectations vs. Reality: The market often moves based on expectations of news, so if the actual news is different from what traders anticipated, it can cause a sharp reaction. For instance, if a central bank announces a rate cut, but the market expected no change, the currency may drop rapidly.

3.    Increased Risk: News events can create higher uncertainty and risk in the market, making it more difficult to predict price movements. This is why some traders avoid trading around major news events to avoid the unpredictability.

In short, news events are key drivers of volatility and can cause significant market shifts. They often move the market based on new information, whether it's an unexpected report or data release, and can increase risk for traders if not handled carefully.

What is a pip?

A pip in forex trading stands for "percentage in point" or "price interest point," and it is the smallest unit of price movement in a currency pair. It represents the change in value between two currencies in a pair. For most currency pairs, a pip is typically the last decimal place of the price. For example, in the EUR/USD pair, if the price moves from 1.1050 to 1.1051, that is a 1-pip movement.

Pips are important because they help traders measure and compare price movements, as well as calculate potential profit or loss in their trades. Understanding pips is essential for managing risk and determining how much profit or loss you might make from a particular trade.

What is a lot ?

In forex trading, a lot refers to the size or quantity of a trade. It is a standardized unit that determines how much of a currency you are buying or selling. There are different types of lots:

A pip (percentage in point) is the smallest unit of price movement, typically equal to 0.0001 for most currency pairs. It is used to measure the change in exchange rates.

Larger lot sizes mean greater exposure to potential profit or loss, while smaller lot sizes are more manageable for those starting out or looking to take less risk.

What is a candle?

In forex trading, a candle (or candlestick) is a graphical representation of price movement within a specific time period. Each candle shows four key points: the opening price, the closing price, the highest price, and the lowest price during that time frame.

What is a Candle?

A candle consists of a "body" (the area between the open and close prices) and "wicks" or "shadows" (lines extending above and below the body that show the highest and lowest prices). If the closing price is higher than the opening price, the candle is typically colored green or white, indicating a rise in price. If the closing price is lower, the candle is red or black, indicating a drop in price.

Candles are used in technical analysis to identify patterns and trends, helping traders make decisions based on past price movements.

In forex trading, a trend refers to the general direction in which the price of a currency pair is moving over a period. Trends can be classified into three main types:

1. Uptrend ( Bullish): When the price is consistently rising, forming higher highs and higher lows.

2. Downtrend ( Bearish ): When the price is consistently falling, forming lower highs and lower lows.

3. Sideways/Range-bound trend (Consolidation): When the price moves within a horizontal range, neither rising nor falling significantly.

Recognizing trends is important for traders because it helps them make informed decisions, such as whether to buy (in an uptrend) or sell (in a downtrend), or wait for a breakout when the price is in a sideways trend.

Break of structure: A break of structure in forex trading occurs when the price moves beyond a key support or resistance level, signaling a potential continuation or change in the market's trend. It can indicate that the previous trend or pattern has been broken, and a new market direction may be starting.

Higher high : A higher high in forex trading refers to a price point that is higher than the previous peak in an uptrend. It indicates that the market is continuing to move upward, with each new peak surpassing the last, signaling strength in the current trend.

Higher low: A higher low in forex trading refers to a price point that is higher than the previous trough in an uptrend. It indicates that the market is continuing to move upward, with each new low being higher than the last, suggesting strength and potential continuation of the uptrend.

Lower high: A lower high in forex trading refers to a price point that is lower than the previous peak in a downtrend. It indicates that the market is continuing to move downward, with each new peak being lower than the last, signaling weakness in the current trend.

Lower low: A lower low in forex trading refers to a price point that is lower than the previous trough in a downtrend. It indicates that the market is continuing to move downward, with each new low being lower than the last, signaling a strengthening downtrend.

In forex trading, currency pairs are two currencies traded against each other. The first currency in the pair is called the base currency, and the second is the quote currency.

For example, in the EUR/USD pair, the EUR (euro) is the base currency, and the USD (U.S. dollar) is the quote currency. If the price of the pair is 1.1500, it means that 1 euro is worth 1.15 U.S. dollars.

Currency pairs are classified into three categories:

1. Major pairs: The most traded pairs, such as EUR/USD, GBP/USD, and USD/JPY.

2. Minor pairs: Pairs that don’t include the U.S. dollar, like EUR/GBP or AUD/JPY.

3. Exotic pairs: Pairs involving a major currency and a currency from an emerging market, such as USD/TRY (U.S. dollar/Turkish lira).

Traders buy or sell currency pairs based on how they expect the value of one currency will move relative to the other.

Trading sessions in forex refer to the different periods of the day when major financial markets around the world are open for trading. These sessions are based on the opening and closing times of key financial centers, and each session has varying levels of market activity and volatility.

Here are the main trading sessions Kill Zones:

1. Asian Session (Tokyo):

o   Time: 7:00 PM - 10:00 PM (GMT-4 New York).

2. European Session (London):

o   Time: 2:00 AM - 5:00 AM

3. North American Session (New York):

o   Time: 7 AM - 10:00 AM

The kill zones refer to the specific time periods during each session when market activity and volume are highest, offering more trading opportunities and potential for bigger price moves.

Trading theories are sets of concepts and strategies that guide traders in analyzing and predicting market behavior. These theories provide frameworks for understanding price movements, market psychology, and trends. Some common trading theories include technical analysis (studying past price movements), fundamental analysis (analyzing economic and financial factors), and price action (focusing on price patterns and market structure). They help traders make informed decisions about when to enter or exit trades.

The premium and discount theory of trading can be explained using the analogy of a retail store owner buying and selling goods.

Imagine a store owner who buys goods at a low price to make a profit when selling them at a higher price. In this analogy:

• Discount (Buying cheap): When the goods are on sale or priced lower, the store owner sees this as an opportunity to buy more stock at a discount. The store owner knows that buying low means they can sell it later at a higher price for a profit. In trading, this could be compared to identifying a discounted price in the market where the price is low, and the trader expects it to rise in the future.

• Premium (Selling high): When the goods are priced higher, the store owner decides it’s time to sell and make a profit. This is the point when the goods are more expensive, and the store owner capitalizes on the higher price. In trading, this would be when the price is at a premium, and a trader may decide to sell, expecting the price to fall from its high point.

In trading, the concept is similar: traders look to buy when prices are at a discount (low) and sell when prices are at a premium (high), much like the store owner buys low and sells high to make a profit. This aligns with price action, where traders analyze the market to identify opportunities for buying at lower prices and selling at higher ones.

Order Blocks are candles which contain a substantial amount of volume [Buy Orders or Sell orders] which cause prices to surge in an upwards or downwards direction based upon the trend, which subsequently breaks market structure. Price then retraces to the Order Block to pick up additional Buy or Sell Orders followed by a continuation of the Trend.

Order Blocks can be categorized as Bullish or Bearish.

A Bullish Order Block is the Last Down Closed candle before price surges upwards.

A Bearish Order Block is the Last Up Closed candle before price surges downwards 

A fair value gap in trading refers to an area on the chart where price has moved too quickly, leaving an imbalance between supply and demand. These gaps occur when price makes a sharp move, often due to high momentum, and leaves behind a void or space where no trading has occurred. Traders view these gaps as potential areas where price may return to "fill" the gap, as the market tends to correct imbalances. Essentially, fair value gaps represent regions where price has moved too fast, and the market may revisit these areas to establish a balance in price action.

 These areas can be used as confluence or confirmation for entry on continuation of price action in your identified direction.

FAIR VALUE GAP IN USE IN A BEARISH MARKET

Keynote: Price Did Not Close Over 50% Of Gap Signifying It Being Respected And That Price Is Willing to Turn Around From There. When price goes over 50% of any structure it a bad sign that price may not respect it

In trading, a strong high/low and a weak high/low refer to price levels where the market has either proven or failed to prove significant price movement. Here's an explanation using the analogy of volume and break of structure:

A strong high or low is a price level where enough volume has been traded to cause a break of structure, meaning the price has decisively moved past a key support or resistance level, often leading to a shift in market sentiment. When this happens, the price has "damaged" the structure, and sellers or buyers who were involved at that level have typically made their mark in the market. As a result, these areas tend to be trusted by market participants when prices later revisit them. Buyers and sellers will often sit confidently at these levels, ready to take positions when the price is retraced, because they know the previous damage (break of structure) is likely to hold as support or resistance. Essentially, these levels have "earned" their credibility due to the strong movement and volume behind them.

On the other hand, a weak high or low is a price level that failed to cause a break of structure, meaning the price couldn’t push past key support or resistance significantly. These levels haven’t seen enough volume or momentum to create real damage, so when the price returns to them, they typically disrespect the area, and prices are likely to push through or fail to hold. This is because these structures didn't result in any meaningful shift in market behavior. Weak levels are not trusted, and traders generally avoid taking positions there because the price is less likely to hold, leading to potential stop losses getting hit.

Identifying strong and weak highs/lows is crucial for trading. A strong high or low is an area where you can confidently take trades, knowing that previous price action has shown the market's commitment to that level. However, failing to recognize weak highs or lows can result in poor trade entries and getting caught in false breakouts, where price doesn't hold, and stops are triggered.

In summary, strong highs and lows offer reliable support and resistance because they've proven their power to move the market, while weak highs and lows are often unreliable, leading to unnecessary risk if you enter a trade without considering these differences. Identifying these structures helps you avoid buying or selling at the wrong levels, preventing unnecessary losses.

When analyzing price action, it's important to focus on how the market treats the high or low you're watching. A break of structure (BOS) is only confirmed when the price closes beyond the high or low, not just when it briefly pushes past it with wicks. Price can easily spike above or below a level, but if the body of the candle closes inside the region, this means the high or low is still holding strong—it hasn’t actually been broken. This is important because a wick pushing past a high or low doesn't necessarily signal a true break of structure.

If only the wicks push through, but the body closes within the same region, it shows that the attempt to break the level has failed, and the market is still respecting that high or low. In this case, the high or low remains a weak structure because it didn’t result in a meaningful shift in market direction.

To avoid confusion, remember that a true BOS happens when the body of the candle closes outside the structure level, not just when the wicks briefly surpass it. This helps ensure you’re correctly identifying strong vs. weak levels, preventing you from mistaking a false breakout for a valid shift in trend.

In trading, liquidity can be thought of as a kind of "gold" in the market—liquidity is the money trapped in stop-loss orders, which sit at the wick highs and wick lows on the price chart. These are the points where traders, especially those who don’t know better, set their stop losses, usually just beyond recent highs or lows.

The market, in its movement, is constantly seeking these stop losses. Think of it like a magnet pulling price toward these areas where stop orders are clustered. When the price moves in a certain direction, it’s often rushing to "capture" these stop losses, which provides liquidity for the next move in the market. If you're aware of where these liquidity zones are and you're on the right side of the market, it's like easy money—you can take advantage of the price moving quickly in your favor.

This process works especially well when you understand the trend. If you know which direction the market is moving, you can predict where the liquidity is, as these stop orders are often set in areas where the price is likely to reverse, like at recent highs or lows. So, knowing the trend of the higher timeframe is key—it gives you insight into which wick highs or wick lows to focus on.

Imagine the market as a plane moving in one direction, with magnets pulling it toward specific wick highs or lows. By understanding this, you can anticipate where the market is likely to go next, giving you an advantage when trading.

In short, the market moves quickly to take out stop losses at liquidity zones (wick highs and lows). By following the trend and knowing where these liquidity points are, you can make better decisions and trade more effectively.

In trading, low resistance liquidity refers to the idea that failure swings in any trend often become easy targets for prices to move through. To understand this, let’s break it down with the analogy of a bullish trend:

In a bullish trend, the market typically creates higher highs and higher lows. After each break of structure (when price pushes higher), it often retraces and attempts to break the previous low. If it fails to do so, it creates a higher low, and the trend continues upward, making another higher high. This pattern of failure swings—where price tries and fails to break the low, then continues higher—is a common characteristic in uptrends.

Now, these failure swing lows are important because they become targets when the market decides to reverse or sell. Remember, the market often seeks out liquidity—which, in this case, is the stop losses placed just below these failure swing lows (where traders expect price to reverse). When price comes back to these levels, it may "take out" the stops and invalidate the previous structure, pushing past these lows quickly.

To identify these lows, one helpful method is to use a trendline tool. In a bullish market, if you draw a trendline connecting these failure swing lows, you’ll notice that price often makes contact with the trendline multiple times. The same concept applies to a bearish trend, where price creates lower highs and lower lows.

In summary, failure swings are key points in any trend. These are areas where price attempts to break structure but fails, creating opportunities for price to return and "take out" stop losses. By understanding this, you can better identify low resistance liquidity areas and anticipate potential market moves.

Tips and tricks to know!

Higher Timeframe determines market direction so always analyze from the higher timeframe before having a bias:

In Forex trading, always start by analyzing the higher timeframes (like the weekly or daily charts) to understand the market's bigger picture before forming any bias. Here’s why:

1. Market Direction: The higher timeframe shows the overall trend. If the weekly chart shows an uptrend, the market is likely to continue moving up. If it's in a downtrend, expect the market to keep moving down.

2. Trend Confirmation: Analyzing the higher timeframe helps you confirm the bigger trend. This prevents trading against the major trend. For example, in an uptrend on the weekly chart, focus on buying opportunities on lower timeframes.

3. Movement Expectation: The weekly chart gives you an idea of the expected movement on lower timeframes. A strong uptrend may mean pullbacks on lower timeframes, while a sideways market suggests a choppy or ranging market.

In short, the higher timeframe provides a roadmap for the market's direction, helping you make more informed decisions on lower timeframes. Always start with the bigger picture to avoid trading against the trend and making poor decisions.

Price respecting 50% of any structure of interest is a green light, most times if it goes over and closes with the body of the candle its signs that it might fail

Here’s why:

When price respects the 50% level of any structure (like a recent high or low), it's usually a good sign that the level will hold. If price pushes past this 50% level and closes with the body of the candle beyond it, it suggests the level might fail, and the market could be reversing or breaking through that structure.