The forex trading strategy basics

The forex basics

The forex basics

Exchange of a nation’s currency for that of another is Foreign Exchange (FOREX). The foreign exchange market is a largest non-stop financial market in the world where currencies of different nations are traded.

This Forex market is bigger than three times the aggregate amount of the US Equity and Treasury markets combined. This is not the traditional market as there is no physical location or central trading location.

It is operated on a global network of banks, corporations and individuals trading one currency for another. Foreign exchange market conditions can change at any time in response to real-time events.

The purpose of investing in Forex trading is to earn profits from foreign currency movements. Forex trading is always done in currency pairs. Two currencies that make up an exchange rate are called currency pair. Investors who trade currency pairs need very fast buy and sell Forex signals.

Without these Forex trading signals, it is difficult to decide market conditions in terms of entry or exit in the market. These Forex signals and trade alerts will indicate you for going out or coming into the market.

Many Forex companies, who have been involved in this kind of business, have developed forex sms signal services. Several Forex signal providers got a “free test” also that is really beneficial. 

Initial investors don’t go for in details; they often rely upon one or two technical signals to decide when to buy and when to sell a currency pair. When they get a good understanding of Forex market, they start to use Forex signal software to decide when to pick up a forex entry point and forex exit point.

It is not very difficult to find a automatic Forex signal indicating when to buy and when to sell a currency. An investor should compare his investment to alternative options. It is wise to buy currency you expect an increase in value relative to the currency you are selling.

In an open trade, a trader has bought or sold a particular currency pair and has not yet sold or bought back the equivalent amount to close the position.

To gain high profits in a Forex trading, you should use a Multi-Target Exit Strategy. This strategy is based on providing the customers with multiple acquiring profit and stopping losses.  This Forex trading strategy allows you to enter multiple Take Profit and Stop Loss levels. 

This Forex strategy also requires that the trader follows the trade in real time. A Forex trading strategy with a high profit percentage rewards you mentally also as it will boost you up for further trade and will make it enjoyable. A string of profits will increase your morale.

In Forex trading system, it’s not obligatory to buy some currency to sell it later. There are situations for buying and selling any currency without actually having it.

Usually Internet-brokers establish the minimum deposit such as $ 2000, for working in the FOREX market, and grant a leverage of 1:100. The major currencies traded in FOREX, are Euro (EUR), Japanese yen (JPY), British Pound (GBP), and Swiss Franc (CHF).

All of them are traded against the US dollar (USD). A technical analysis is also made that presumes all the information about the market and further fluctuations in prices. They too consider factors, economic, political or psychological

This article was submitted by LegacyFX.

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Key events and releases for next week’s trading

Fed Chair Powell speaks at Jackson Hole Economic Policy Symposium on Friday

The key event next week her until Friday at 10 AM ET/1400 GMT, when Fed Chair Powell is scheduled to speak at the Jackson Hole Economic Policy Symposium.  The title of his speech is “Challenges for Monetary Policy”.  

Chairman Jerome Powell will speak at the Jackson Hole economic policy symposium

The meeting minutes from the last FOMC meeting will be released on Wednesday at 2 PM ET/1800 GMT.   The market is very sensitive to what the Fed might do at their next policy meeting in September. There is a 100% chance for a rate cut, with the market currently pricing in a 32% chance for 50 bps.  

Other key events and releases for the week include: 

Tuesday:

  • RBA monetary policy meeting minutes. 9:30 PM ET (Monday/0130 GMT
  • Canada manufacturing sales.  8:30 AM ET/1230 GMT
  • FOMC member Quarles speaks. 6 PM ET/2200 GMT

Wednesday

  • Canada CPI. 8:30 AM ET/1230 GMT
  • US FOMC meeting minutes.  2 PM ET/1800 GMT

Thursday

  • France flash manufacturing/service PMI.  3:15 AM ET/0715 GMT
  • German flash manufacturing/service PMI.  3:30 AM ET/0730 GMT
  • EU flash manufacturing/service PMI.  4 AM ET/0800 GMT
  • US flash manufacturing PMI. 9:45 AM ET/1345 GMT
  • Jackson Hole economic policy symposium begins. Day 1 

Friday:

  • New Zealand retail sales.  6:45 PM ET/2245 GMT
  • Canada retail sales. 8:30 AM ET/1230 GMT
  • Fed chair Jerome Powell speak. 10 AM ET/1400 GMT
  • Jackson Hole economic policy symposium. Day 2

Saturday:

  • Jackson Hole economic policy symposium. Day 3

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8 things that worsen your trading performance

What are some of the biggest traps you can fall into as a trader?

FBS 1

Trading is a process that is different for every participant: a great deal of success depends on personal qualities and strengths. And yet, a number of things are universal – the similar challenges everyone goes through and the common traps that at some point await all traders.

In this article, we have gathered the potential killers of trading success as well as the recommendations on how to eliminate them or turn the situation around in case you are already suffering.

#1: Being too lazy to test things

It can be tempting to just start using a new trading strategy right away to bear monetary fruits as soon as possible. However, launching into the unknown is not the best idea. Practice makes perfect and it’s always better to test things first.

As a result, use the potential provided by demo accounts to its most: test the services provided by your broker, test a new strategy, work on your risk management and position sizing.

#2: Extreme emphasis on the result

A lot of traders expect to see the mind-blowing amounts of profit literally in no time. Others get fixated on the idea that every trade should be profitable.

We won’t argue that trading should be to your benefit, that goes without saying. However, obsession with rewards alone won’t do you any good. After all, the rewards won’t achieve themselves.

All important things – analysis, strategy, risk management – are the elements of the trading process. So, while it’s absolutely necessary to have a goal (a reasonable one, for sure), once the goal is set, you should throw all your strengths and attention to the process of trading.

Learn from each trade you make – your own experience of observing and dealing with the market is your most precious asset. Focus on the key elements of trading mentioned above and try to improve your skills in each of them.

#3: Lack of proper money and risk management

The reasons for this misstep may be different: laziness that we have already mentioned before, ignorance, the lack of patience. Bear in mind that professional trading is not a game and that every time you put your money at stake, not just some abstract numbers you see on the screen.

In addition, be always aware that by nature people are inclined to underestimate probabilities of bad events. Accept the idea that there will be losses and your job is to make sure that they don’t put devour your deposit. Be prepared: don’t risk too much and use Stop Loss orders.

#4: Forgetting bigger timeframes

Some intraday traders – beginners – perceive timeframes from daily and bigger as something remote and unrelated to what they are doing. Yet, bigger timeframes show the bigger picture.

Although fractals we see on the smaller timeframes are the first to show a change in the market, they may always be just ripples that don’t mean a new trend.

As a result, make sure that you consult large timeframes on a regular basis to ensure that your short-term trades don’t clash with some important long-term support/resistance levels.

#5: Constant hurry

Ask yourself a question: are you a patient person? Do you have this urge to open a trading order, no matter buy or sell, right after you have turned on your trading software just for the sake of doing something?

Such a hurry to start trading is quite common these days when the process of setting up a trade is swift and easy. Another form of the illness is when a person sees a rapid movement of the price and has a sudden panic attack, seized by the fear of missing out (FOMO) a trade of a lifetime.

The problem is that if you are in a hurry, you will probably cut yourself a lot of slack in market analysis and get into something you shouldn’t have got into. The odds are that by doing so you will forgo risk management.

In order to avoid such situations, try to consciously monitor your psychological condition during every trade. Make it a routine checkup: every time you feel that you are moving too fast, slam on the brakes, take a deep breath and think some more.

#6: Not understanding the essence and logic of the market

Often enough traders look at a chart but don’t really see it. Remember that the price action is a result of the activity of all market participants or that a pullback comes after every big move. It’s also worth noting that a lower high in an uptrend is a worrying sign for bulls or that breakouts of important levels may be false.

Furthermore, candlesticks and their patterns can tell you stories about what happened with the price; that technical indicators don’t bring new information but are derived from the price; that fundamental economic disparities shape the longer-term trends and the market is driven by expectations in a greater deal than by events themselves, etc.

To become better at reading the market, make your forecasts for the instruments you do not trade and see how the situation turns out. Watch the price’s reaction to economic releases. Apply every bit of the knowledge you get to practice.

#7: Overanalzying

Regrettably, there may just be too much of a good thing. You should always be able to see the price chart below all the lines you have drawn and all the indicators you have applied – no jokes!

To be honest, it’s hard to see how you may need more than 3-4 indicators: there is little point in applying indicators that have similar functions. In addition, a bigger number of indicators will simply make a trading strategy bulky and dysfunctional.

As a result, cut the excessive things and use the remaining ones efficiently.

#8: Poor planning and organization

In some endeavors, it pays off to be spontaneous. However, trading is rarely one of them. It doesn’t mean that trading is not creative, but that it requires disciplined execution on many levels.

Here we stress not only the necessity of a trading plan with the technical details of your trades but also the need to have a daily routine in place. Make sure you organize your activity carefully. Assign defined periods of time to trading and make sure you stick to them.

Conclusion

Our most sincere advice is for you to try and actually apply the recommended solutions. As it often happens in trading, things listed above may seem like banality and easy stuff.

Still, many traders put off amending the situation and forget about the simple steps that can make their trading life much better. What if a time to become a mindful trader has finally come?

This article was submitted by FBS.

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Inside bar: Your new friend in trading

A technical signpost to watch for

A technical signpost to watch for

There are a lot of candlestick patterns. Some are more distinctive, some are less. It’s easy to be on the lookout for pin bars – candlesticks with long upper or lower wicks that indicate a reversal.

However, such candlesticks, though quite common, do not appear all the time. Plus, there are other patterns worth paying attention to, for example, ‘inside bars’. Monitoring inside bars is much less intuitive.

Yet, inside bars can be no less helpful and provide traders with trade ideas that have a big probability of success. In this article, we have gathered some useful tips about inside bars.

What is an inside bar?

As you can deduct from the name of this pattern, an inside bar is a 2-candlestick pattern, in which the second candlestick is completely engulfed by the first one. The first candlestick is called ‘mother bar’, while the second one bears the name of the pattern itself.

The color of the inside bar is not important. The difference between an inside bar and harami is that with an inside bar, the highs and lows are considered while the real body is ignored.

An inside bar forms after a large move in the market and represents a period of consolidation. It indicates that the market is seized by indecision: neither bulls nor bears can swing the price in their favor.

The idea is that after consolidation the price tends to make a strong directional move. As a result, if a trader spots a moment of calm (i.e. an inside bar), he/she will be able to trade on the breakout of the consolidation range.

If an inside bar formed within a strong trend, the odds are that the breakout will occur in the direction of this trend.

Insider bar 2 education

A string of inside bars during an uptrend

All in all, the smaller the inside bar relative to the mother bar, the greater the possibility of a profitable trade setup. Plus, the best case is when an inside bar forms within the upper or lower half of the mother bar.

All of this shows that the preceding trend is still strong and hence likely to continue, so an entry in its direction will pay off nicely. Stop loss orders are usually placed at the opposite end of the mother bar or around its middle if the mother bar is bigger than average.

Insider bar 3 candlestick

An inside bar followed by a strong breakout. Check the place where the inside bar formed: is there a strong resistance? This may explain why the price reversed down

Another tip: keep track of inside bars on the daily chart and bigger timeframes. Lower timeframes contain huge amounts of “noise” and thus may give false signals.

In addition, there may be several inside bars within the mother bar (i.e. 2, 3 or even 4). This simply means that consolidation will take longer, and the odds are that a resulting breakout will be stronger. 

Inside bar and fakey

So, trading inside bars is all about breakouts. However, it’s common knowledge that breakout may turn out to be false. A “fakey” pattern represents a false breakout of an inside bar.

In other words, it’s when the price breaks out an inside bar but is unable to continue moving in that direction and quickly gets back. A fakey is a strong reversal signal.

Fakey may consist of one candlestick (in this case it will be a pin bar) or two candlesticks (the second candlestick will erase the progress of the first one). The most important characteristic is that a false break of the pin bar should be obvious and clearly visible at the chart.

Insider bar 4 fakey

An example of a 2-candlestick fakey

Insider bar technical analysis

An example of a pin bar fakey

It’s wise to pick up a trade signal provided by a fakey if it forms near an important support/resistance level.

Conclusion

A thing to like about inside bar trading strategy is that it revolves entirely around the price action. Inside bar is not the most popular type of pattern but it can enhance your understanding of the market several-fold.

Don’t forget to monitor trends and support/resistance levels to distinguish the continuation inside bars from potential reversal ones/fakeys. Finally, once a fakey is identified, it’s a great hint of a new price swing and may be used as an entry cue as well.  

This article was submitted by FBS.

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Automated trading using forex signals

A look into the use of forex trading signals

UBCFX 24-06
ForexLive

Many forex brokers and independent companies have developed trading systems that offer forex signals telling the user when to buy and sell. The execution of a trade could be as simple as pressing a button or making a telephone call.

Forex trading signals usually operate on a mathematical formula and when parameters are met, a signal is sent out via e-mail or phone. Once the signal is received, it’s up to the user to decide whether or not to take the signal.

There are a lot of mixed reviews on forex signal service providers. To be truthful most signal services work, it’s the individual that fails to follow the system.

Even though you are not deciding when it’s a good time to buy or sell, your emotions can still get in the way if you are coming off of a losing streak. It is however possible to weed out a lot of the losing signals if you are able to identify the overall trend.

Some companies claim to make 20% per month using automated trading systems. I’ll be the first to say that these systems do exist; it’s just a matter of testing the different trading software’s out there to see which ones work and which ones do not.

When seeking out a reliable source of forex signals be sure that their data is back tested and the company has a proven track record. Most systems will offer a trail period that enables you to test the system before committing to their service completely. 

Prices for these systems can range anywhere from $ 15 to $ 500 per month depending on the quality of the signals.

If a novice trader is lucky enough to find a personal forex trader that manages a small group of people and their money this can sometimes be even more profitable then the large forex signal service providers. 

However, finding reliable forex traders and trusting them with your funds are hard to come by.

In our opinion, there is nothing wrong with using forex signal providers given you do not have time to trade for yourself. However, taking a bit of time to learn how the forex market reacts to news and events will greatly enhance you trading profits.

This article was submitted by UBCFX.

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NZD trading higher

NZ news has been the trade balance that came out earlier.

It showed a bigger surplus than expected, which is a positive but I am reluctant to ascribe this move to that. Which leaves me empty handed. Other currencies (and gold) are up against the USD in early Asia also.

There was an OECD report on the NZ economy issue earlier, some of the usual concerns from the group and again no smoking gun.

Of course, there is the RBNZ still to come this week – non hold expected:

NZ news has been the trade balance that came out earlier.

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Trading mistake#5: Revenge trading

Beware taking revenge on the markets

Beware taking revenge on the markets

Revenge is one of the most poisonous emotions we can feel, acting on it brings a cycle of destruction into our lives in life and in trading. However, whereas a person may not take revenge in their general day to day living, they may do when it comes to trading. So, this next article is designed to help us recognise and stop revenge trading. Here are three situations when we are more likely to seek to get revenge : 

  • Immediately after a losing trade. Your stop was hit by 1 point overnight after which price soared in your desired direction. You are furious and incredulous in equal measure. When you are angry after a losing trade. Depending on your constitution you express your anger, either a clenched fist that bangs the desk, a revised eyebrow, or maybe merely the increase of tour heart rate. Regardless of your temperament you are ticked. You scan the news feeds furiously looking for another trade. You find one and you are stopped out. You are even angrier, and you increase your leverage and take another trade. You get the picture. 

  

  • After a period of drawdown. Mentally you were prepared to accept X% of drawdown. Then that X% of drawdown is exceeded. You are angry, disappointed and frustrated. You feel that you have let down your family, your fund, your loved ones. You feel a failure. You read an internet troll who insulted your reasoning, called you a son of a donkey and, horror of horrors you actually believe him ;-). You now think , well what does it matter I may as well max out the leverage and try and make it back on one big all or nothing trade. You have mentally crumbled and believed a tissue of lies that is leading you to to lose discipline, focus and perspective. 
FX Trading lessons
  • Due to stubborn pride. Well, it went like this. Let’s imagine a hypothetical example. You had this public argument on a forum with a trader humbly calling himself , ‘Forexgenius 789’ .He called you a ‘dirty rat’ (shock, horror) because you were shorting the EUR/USD pair. It created a small ripple on the forum and two other people ‘liked his comment’. One of whom was a guy whose AUD/USD position you questioned three months ago. You gave four reasons to short the EUR, all of which made sense, but ‘Forexgenius 789’ says only chumps short the EURUSD pair and that you are ignorant, naive and probably are a born loser (you see ‘Forexgenius 789’ is a natural encourager and the life and soul of the party). Of course, he never comment on our site ;-). The problem is that, this time, he is right. You are the wrong side of the trade and you did miss a critical part in your analysis. You are not a ‘dirty rat’, nor are you a born loser. However, you are wrong on this occasion. It happens to every trader. Now, you know that you should immediately close your position when you know you are wrong.However, you don’t. You hold on out of pride. You keep arguing with ‘forexgenius’ about your position. This is stubborn pride an it can trigger a waterfall of revenge trading. Don’t be proud. Be humble. Take the loss, learn the lesson and let ‘Forexgenius 789′ have his moment in the sun and make a note to yourself, not to goad him next time he takes his turn in the rain’

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Trading mistake#4: Over trading

How much is too much?

How much is too much?

This is one of those frustrating questions to answer because there are not an evenly distributed assortment of trading opportunities. Some weeks have more obvious trading opportunities than others. This means that in theory you can keep taking the trades as long as they present themselves. However, this can also there are times it is hard to spot when you are overtrading. Some traders try to limit themselves to a certain number of trades per week. Other traders have an equity loss limit for the week, when that is hit they head to the weekend early. The answer that people find to this question is different, but one thing is key, make sure you have a response when you notice that you are overtrading.

How to recognise it?

This it something that is easier to experience than necessarily articulate. There can be a fine line between overtrading and being active in the market. However, here are a few key things that you can recognise: 

  1. You have lots of positions open and you are changing your mind on them a lot, e.g long USD in the AM, but change your mind for no real reason in the PM
  2. You are placing trades indiscriminately – you sell at a big support level here, a key option expiry there, you read a blog on the strength of the Yen and open a few small positions.
  3. You are losing equity – This is a good sign that you are overtrading, since the indecision and changing around is hurting your bottom line

How to stop it?

  1. Withdraw from the markets. Take an early weekend, a week off trading. Anything to slow down pulling the trigger
  2. If you are still struggling, then reduce your risk and widen your stops. Consider averaging into positions in order to avoid emotional attachment to any one trade in particular. 
  3. Become accountable to a trading partner. Someone who you can share your monthly results with. Do not do this on a public forum as it will not benefit you as much as sharing results privately. If your results are good you’ll be pumped up as a ‘trading master’, if your results are bad you’ll be beaten down as a ‘trading failure’. Neither are good for your development, so find someone who can help with your accountability. 

Over now to our seasoned readership, what tips do you have on stopping overtrading?  

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5 trading mistakes to avoid: Mistake #2 The Spectator’s Guilt

I’m just posting this up on behalf of Giles, all credit goes to him for this series

Spectator

On a recent weekend I spent the afternoon watching a dramatisation of Charles Dicken’s novel, Little Dorrit. Writing in the mid 19th Century Charles Dickens spoke of an age old problem; namely that of Speculator’s Guilt. The lesson that ‘Speculator’s guilt’ provides can be learnt in one of two ways. The easy way or the hard way. The easy way is to identify it and avoid it, while the hard way is to experience it and vow never to repeat it.

The novel Little Dorrit revolves around the key theme of financial impropriety in 19th Century London. In the book there is a financier called Mr Merdle and he is known as the ‘phenomena of the age’, a financial ‘genius’ who is trumpeted and adored for his financial acumen. His fund is large and grows at a phenomenal rate. In fact, his fame grows so large, that investors from a variety of sources flock to give all their income to the ‘man of the age’. Of course, my trading buddies here know how the rest of this story goes. Mr Merdle becomes overstretched. He makes some errors and, in a bid to hide them, he uses funds from one fund to finance another until it all comes crashing down. (A kind of Ponsi scheme light). The result of course is that many, many people lose all their money. 

Then, in a gently probing manner, Dickens explores the question, who is to blame? Is it Mr Merdle for his fraud (yes, of course). Is it the individual firms who invested all their money in Mr Merdle’s fund? (Yes, of course). Is it the people who convinced others to invest on the soundness of the venture? (Arguably,at least partly). And so here we have a myriad of varying parties who all share what can be summarised as, ‘Speculator’s Guilt’. The interesting thing that Dickens draws out is that there is something peculiarly intoxicating about backing one sure fire winner that beguiles all sense. The risking it all for one throw of the dice that is attractive. One hit and I am done. One trade and I solve my financial tight spot. Not only a ‘get rich’ desire, but a solve most of my present problems in one go. One trade and we can buy that house, go to that school, clear that debt, make that phenomenal return etc etc.  We saw this in January 2015 when the Swiss National Bank removed their floor on the EUR/CHF pair. EUR/CHF fell 40% in minutes and with it more money than I care to think. Fund crashed, brokers went bust, individuals lost a life changing amount of money. For some people the experience made them. For others it broke them. However all of them stood humbled before the intoxicating power of Speculator’s Guilt. 

So, learn this lesson and don’t repeat it:
There is no sure fire winner in financial trading, despite what people may say. The more people stress that this is ‘the investment to make’, be the more alert. Never bet it all on one shot, ever. Even if you think you can rebuild it all again, others around you may not want to hang around and wait. You can lose close family relationships by risking it all with Speculator’s Guilt.

Watch little Dorrit and imbibe this lesson through a decent narrative. By the way, if you just watch for it’s financial lesson, it has a decent love story thrown in (to keep the Mrs happy) , some unforgettable characters, and a financial story that you can enjoy which others may not be even aware is being taught. e.g. it’s not like asking your family to watch Bloomberg news. My good lady can take me talking shop for a maximum of about 90 seconds. ;-). I might share this post with her and see if she comments!

Thank you Mr Dickens for teaching us this lesson of ‘Speculator’s Guilt’. Learn it boys and girls, or repeat it. The choice, as they say, is ours to make.
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Trading mistake#3: Not being accountable

Hooray! My tech problems yesterday are resolved, so I am able to post again. A big thank you to Justin for jumping in and posting part 2 of our 5 part trading mistake series. As a recap, the series looks like this: 

Today we are on Mistake #3, the mistake of not being accountable. Having spoken to a group of around 70 or so traders and aspiring traders over the last three days in Dubai I have been once again convinced of the value of this site. Understanding fundamentals is so key to trading and the breakout in Gold, which was clearly signalled with the Fed’s leaning towards a cut last night, was a trade I was pointing out to the group I was speaking to last night. The fundamentals, not the technicals, were going to lead the breakout or otherwise of Gold on the 1350 level.  This is where ForexLive.com is so valuable, the constant fundamental analysis of the team here and not to mention our regular contributors who add their valuable market wisdom to our proverbial pot. It was good to be flying the Forexlive.com flag as a free, fundamental resource for retail FX traders. 

When trading becomes gambling

I was also convinced of this trading lesson, the mistake of not being accountable. From the person who was many thousands out of pocket on open wheat positions to the person long and loaded into Gold, before the Fed meeting. Both asking me for direction and advice with a slight frenzied feel. It was uncomfortable to witness people under strain with large positions they are not sure to hold, but are unequally unsure about whether to close. When trading becomes gambling then hopetimism followed by the inevitable crash. Now, don’t think I am one to pour scorn on those who have made these errors. Oh no, I feel the pain and I have been there. I am just a voice in the desert saying, put your trading house in order. Let me show you how. And today, here is lesson three, find some accountability.

Mistake #3 Not being accountable

When I started learning to trade, back in 2009, I did it from the internet. It was a nightmare of a process. You would be hit by a barrage of multiple factors: trading robots, internet forums with ‘experts’ telling you how to trade, people insulting other people, and internet marketers touting for your business more than your progress. It can take a while for the fog to clear. In fact, you may still be in that confusing position. One of the lessons that I have learnt during that time is that accountability is a great tool in helping your progress as a trader. There is something strangely powerful in just having to articulate your current trading state to another person. It makes you own your mistakes in a personal way, puts perspective on your success and provides greater clarity on your solutions too. So, can I encourage you to keep greater accountability with your trading? Here are four ways: 

  1. Find a FX trader who you can be accountable to. Why not go through each other’s trades in the last month and ask each other questions about that record. Articulating your trading can help flag a problem and reinforce good habits that are working. Ideally this will be a person who has years pf experience in the market and can teach you how to marry fundamentals, technical and sentiment together. 
  2. If you can’t find someone to help you in this way, keep a trade journal and then make some comments after each trade. I find this less effective than speaking to another person, but you will know your own best learning methods
  3. This will depend on the nature of your finances and personal relationships, but have a close friend or family member you are accountable to if you are struggling with blowing up your trading accounts. Why not give them an equity figure you will start demo trading with if you hit a certain level. Having a ‘think-again’ equity level could help stop the rot before it eats too much capital
  4. Consider getting a group of FX traders to meet in your area. Could you have a coffee shop meet up once a month or once a quarter? Learning online is good, but there is no replacement for face to face contact. I don’t know about you, but when I meet someone face to face I find that a far more helpful experience than just meeting someone online. 
trading mistakes

One gentleman brought his wife along to our seminar last night as his own accountability partner. I confess that I was jealous as this good lady sat through 3 hours of me talking about intermarket analysis, option levels , flash crashes and a trading routine; all for her husband so he could involve her as his accountability partner. A true  labour of love ! Here was a man prepared to be honest with his trading, himself, and his family. I am confident for him. He has made a good start to being accountable. What accountability do you have? How are you going to get it? I have a number of traders who I invite to contact me and let me know about their progress. Why? Simply because the articulation of our trading can sometimes be the first step to addressing, changing and ultimately overcoming our challenges. All without the trolls, weirdo’s and closest psychopaths who like to jump out of the shadows behind the privacy of their keyboards and a wifi protected world. Tomorrow, is lesson 4 and I hope not to have any more technological problems then !

 

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