FOREX MONKS COMPANY LTD

  The Real Effects of Overtrading Overtrading is one of the biggest reasons traders fail, not because they don’t know how to analyze the market, but because they don’t know how to control themselves. Many of the greatest trading books ever written highlight a simple truth: a trader’s worst enemy isn’t the market; it’s the trader’s own behavior. And nothing exposes that weakness faster than overtrading. Let’s break it down in a simple, school-friendly way so every trader can understand exactly why overtrading destroys accounts, confidence, and long-term success. 1. What Exactly Is Overtrading? Overtrading happens when you enter too many trades: Because you’re impatient Because you’re emotional Because you “feel like you can make back what you lost” Because you think the opportunity will disappear if you don’t jump in It’s not a technical problem. It’s a self-control problem. And as the classic trading books teach, lack of self-control always leads to the same ...

Why does the week often start with manipulation? At the start of the trading week (Monday and early sessions), you’ll often see price activity that looks erratic: false breakouts, whipsaws, range expansions and contractions without much follow-through. That isn’t noise by chance; it’s manipulation, and it serves a purpose. 1. Liquidity gathering and stop-triggering. Big players (institutions, market makers) need to fill large orders with minimal slippage and minimal cost. That means they must find pockets of liquidity, clusters of orders, and stop-losses lying around key levels. The early week is an especially good setup for this: many traders are positioning, stops are placed, the market is transitioning from weekend news, fewer participants may be active, and so major participants can sweep liquidity quietly. By triggering stops or fake breakouts, they create the volume and movement necessary to fill their orders, then the manipulated move reverses or stalls. This is why you'l...

  SUMMARY OF THE FOREX TRADING FORMULAE Part One: Understanding Market Phases The forex market moves in three main phases : bullish (uptrend) , bearish (downtrend) , and ranging (sideways) markets. While trends often catch traders’ attention, it’s important to realize that price spends nearly 90% of its time moving within ranges  areas where buyers and sellers are in balance, causing sideways movement. Only a small percentage of the time does the market break out into a strong uptrend or downtrend. Key Insight: Before trying to master trend trading, the first step is to understand how price behaves within ranges,  how it accumulates, distributes, and prepares for the next big move. This foundation is essential because all major breakouts and reversals begin within a range. Part Two: Mastering Market Ranges In technical analysis, a range represents a period of market consolidation, where price moves sideways between two clear boundaries : Support: the lower level...