August 2015

 

Since We're Talking Goals by Jessica H.

Talking Goals with Jessica

Since We’re Talking Goals

A riveting discussion is guaranteed at every Wednesday 9:00 AM PST student counsel meeting.  This week’s was no different. One of the most interesting topics we covered was the meaning of goals. It was clear that each FX365i student has their own idea in the matter.

I recall a conversation with one of my mentors that transpired as follows:

 

Mentor: What’s your weekly goal?
Me: 50 pips.What’s yours?
Mentor: 35 pips.
Me: That puzzles me. You’re an amazing trader why isn’t your weekly goal higher? I know you pull over 50 pips a week.
Mentor that always answers a question with a question: When you make 42 pips in a week but your goal in 55, how do you feel?
Me: Ohhhhhh…..
Mentor: Exaaactly…

That conversation led me to think goals beyond what I had previously imagined, to which I arrived at the realization that goals operate both on a fundamental and a technical basis.

Technically Speaking
Technical goals are simple as they are numerical and absolute. Either you made the 55 pips by closing time on Saturday, or you simply did not. There is no grey area.

Goals Fundamentally
But yet there exists another element to this equation. That element is related to  your original intention.

When you made the decision to become a trader, your original intention was likely to fall into one of two categories (or a hybrid of them). I explain below.

“The Freedom-centric”

If you are in this category you became a trader because you understood that it is your opportunity to “buy back your freedom.” Your original intention was to discover a means of supporting yourself (with relatively few hours of work) so that you could spend your time pursuing your other passions.

You understood that if you meet you goals at the end of the week, there is no need to trade any further.  In laments terms, “trade for 2 hours… then go surfing” or “trade for 2 hours…then go knit a sweater” or “trade for 2 hours… then go play catch with your children” –you get the point.

“The Trading Passionate”

Perhaps when you became a trader your original intention was to develop a new skill, as was the case for me. Apart from learning the markets and regaining my freedom I looked to trading as a new hobby. I have an interest in it, my interest is fueled by a deep passion and an ever-growing fascination with the financial markets. Essentially the mantra of the trading passionate is a different. It follows this vein of though: “trade for 2 hours…learn the skill”, “trade for 2 hours…get better”, “trade for 2 hours…ask a question”–you get the point. In some respects, the trading passionate are also the perpetual students that want to know everything about the markets.

My Findings

We have standard goals at our school; it is a weekly 35-pip goal. One of the opinions that I have recently adopted is that all technical goals must be a prime number. On the basis that it must not be divisible by 5, or more specifically, the number of days we actively trade at school each week.

For my peers that don’t have the opportunity to take part in our weekly discussions, the position I expressed during counsel was as follows:

A 35 per week goal is in essence requires a 7-pip trade per day, however, the market isn’t necessarily favorable for 5 days worth of trading.  Advanced traders (whether freedom or passion driven) do not necessarily have to trade everyday. However, if for instance your goal was 33 pips a week, your mindset shifts. Now you’ve created a mindset that you can trade 3 days at 11 pips each and either watch the market for two days (trading passionate) or surf for 2 days (freedom-centric).

In further defense of my position…

A prime number is not divisible by anything. There are no daily requirements to be on track, thus no pressure that carries over into the next day. The only requirement you have is that you make it past the finish line on Friday, emerging at the numerical goal that you intended at the start of the week.

Lastly, Todd wrote a lovely article about goals recently (Smart Goals for Currency Traders). It is great reading that is bound to get you thinking about your own goals.

Until then, Trade Free or Trade Passionate!

Signing Off,

pips and lipstick signature

 

 

 

 

Please feel welcome to share your thoughts in the matter. Are your goals fundamentally or technically based? I’d be delighted to hear more from you.

In time, the four hour work week can be a reality for professional Forex currency traders, especially Forex365 Institute graduates.

Yes, the Forex365 Institute’s Market Maker Course supports a PIP business owner’s goal of capturing 50+ PIPs a week—a number that will allow strong and steady trading account growth and the rise of your PIP value to $100 and beyond.

Imagine, whether you’re an employee or a business owner, reducing your weekly work hours from forty  to sixty or more, down to fifteen (as a Forex365 Institute student), and then down to four (as a seasoned, veteran professional Forex currency trading Forex365 Institute graduate).

The four hour work week concept is simple—exclusively trade high news where we normally expect the most price action volatility and movement.  With smart (emotionally intelligent),  high probability trades using the full complement of Smart Money Profile tools (the Market Maker Course software package), capturing 50+ PIPs a week is exceedingly doable for all disciplined, responsible and determined (never day die—failure is not an option) students.

In the image above, my five-minute chart shows an example of high news trading.  In this case, it was on Wednesday, August 19, 2015 at 11:00 am PST—Federal Reserve FOMC meeting/minutes release.

I did five trades over the course of about two and a half hours.  The first three trades were shorts and the last two trades were long.  A quick summary of the five trades follows:

  1. This trade came before the news when the fifteen-minute chart printed a manipulation wick long and a turn short avoiding taking out a blue liquidity line.
  2. This trade came after a breath on the five-minute chart, also short and before the news hit.
  3. This trade came after the news hit and the momentum was still short—I exited as the price action approached a set of net lines.
  4. Now, the aftermath of the news shows the price action settling down and I took a quick long as the price action continued to move away from the same set of net lines mentioned in trade 3.
  5. This last trade (long) came after the price action moved away from a grid line and back through a five-minute chart dot.

The trading consisted of five trades for a total of 113 PIPs in a two and a half hour time frame.  To me, this is the ultimate in PIP business ownership as a professional Forex currency trader.  I still have a ways to go to do this consistently, but I’m on my way.  The good news is that this is available to all my fellow instructors and students at the Forex365 Institute.

 

-Ira Barnes

Fx365i Instructor

Having goals in life and in trading improves your chances of success by creating direction, motivation and focus. However, goals can be ineffective or even hurtful if made carelessly. We students all have the “goal” to be financially free. I would venture to say that most people want to be free but because each of us has made it our “goal”, we joined FX365I. Our goal gave us the mandate (direction) to find some way to gain more income than we currently do. Because of the possibilities that financial freedom can bring (travel, less stress, security, etc.) we are motivated to invest time and energy. Again, most people probably want financial freedom but if it’s not a goal they let the cares of life distract them; they lose focus and end up making no progress.

But can goals be ineffective or even worse, hurtful? Let’s take a hypothetical example of the average Joe who wants to get in shape. He begins by lifting dumbbells every day. After a while he looks in the mirror and isn’t happy with the results. So he adds some push-ups and sit-ups to his routine. A while later, he looks in the mirror and again is not happy. So he joins a gym and goes there when he can. Finally when he doesn’t see the results he was hoping for, he gives up. You can see that his goal of getting in shape was an ineffective goal.  This experience could discourage him from ever trying to get in shape again.

Let’s take a look at the acronym SMART for some help.

  • S stands for Specific. The term “in shape” is very general. How about, “My goal is to lose 50 lbs and have six pack abs.” This creates a better picture in your mind of what achieving your goal will look like.
  • M stands for measurable. Can you see how stepping on the scale every week might point our Joe to making changes in his diet?
  • A stands for attainable. Attainability refers to limits of nature. Joe’s body type may not be capable of a 32” waist.
  • R stands for realistic. Losing 50 lbs. may be attainable for Joe…but not by next week.
  • T stands for timely. When you put a time frame around your goals, you’ve set your unconscious mind into motion to begin working on the goal.* It creates a sense of urgency.

Here are my goals for the next 3 weeks: 1) only trade if I have measured and believe that the “bus stop” is logical. 2) Make less than 10 trades a week 3) only enter a trade if I know my risk out. Are these smart goals?

Specific? – Very.

Measurable? – check.

Attainable? – Definitely.

Realistic? – If I’m disciplined.

Timely? – 3 weeks.

These 3 goals are based on advice from fellow students and instructors that I believe will help me achieve my goal of becoming a master trader.

In my next post I will share how I’ve used goals (and a more important aspect of goals) to achieve success in my life and how I have used the same system to improve my trading.

*http://topachievement.com/smart.html

 

-Todd Carson

Fx 365i Student

todd.carson@fx365i.com

Hi guys.  This is a very simple post.  I’m just sharing my completely unedited personal journal entry with everyone today.  I’m hoping that reading it might help others start working on making better decisions day in and day out.  The screen shot above is my screen shot for the day.  If you read the notes in the screenshot about my lousy trading session, you’ll get an idea of where I was at by the end of session.  About 30 minutes later, I wrote the following:

What can I take away from today?  How I can open my mind, have a growth mindset, and use today to make me a better trader tomorrow.  HERE IS WHAT I MUST TAKE AWAY FROM TODAY IF I’M GOING TO A) BE BETTER TOMORROW THAN I AM TODAY, AND B) STEADILY MOVE UP THE LOT LADDER:
1.Days like today – specifically days when there is an overwhelming, strong and clear DB – are the only days I should take trades.  I am not some ninja trader and I’m nowhere near a good enough range trader to be able to pull some pips here and there when there is no overwhelming DB.  We had such an clear and overwhelming DB today that when I finally got good entry into the trade, I had very little anxiety about needing to get out when I was up about 10 and the market stalled before the oil news hit.  I was 95+% sure that when the oil news hit, it was going to push the market considerably long.  That is exactly what trading should feel like: You feel like you absolutely KNOW the direction and then you just search for and do everything you can to absolutely NAIL a great entry.  This is the first time in a long time I’ve had that feeling and it reminds me how trading should feel.

2. An old lesson proves to be true yet again: DON’T CHASE TRADES.  There is too much risk.  If I miss my entry, then maybe I’ll get another chance later in the run to get solid entry.  Maybe the opportunity won’t come until later in the week, or maybe not even until the week after that.  It doesn’t matter.  Making the turn from being a terrible trader to a consistent winner who moves up the lot ladder and creates an amazing financial life is a matter of CONSISTENTLY, SESSION AFTER SESSION AFTER SESSION AFTER SESSION AFTER SESSION AFTER SESSION AFTER SESSION, ALWAYS MAKING NON-EMOTIONAL, GREAT / SOUND DECISIONS.  Chasing is a weak-minded loser, FOMO mentality.  Not only did it cost me 25+ net pips on two trades, but those trades then somewhat forced me to take profit prematurely on the +25.  I had great entry on the winning trade, but because of the large losses, I had to take profit as soon as it started breathing – even though I was quite confident it would continue to run.  Obviously I want to cover 25’s, so I have to make sound decisions about banking profits, but this was one trade that seemed highly likely to keep running.

I don’t know exactly why, but I hope / feel like this little nugget might resonate and help a couple of my fellow traders out there.  If it does, or if you have anything you’d like to discuss, please reach out to me at pipaddict73@gmail.com.

Yours in trading,

-Cyrus Sidhwa

In my last post about my prolonged summer slump, I discussed the importance of finding the right balance between trading too large and too small of a lot size. In reality, Forex trading is very much like walking a tightrope 500 feet in the air with winds swirling in all directions.  Choosing the right lot size is like a tightrope walker choosing a pair of shoes that fit properly.  Sure, it’s important, but there’s a heck of lot more work to be done.  Here are 12 competing interests that Forex traders have to balance against each other at all times:

 

Versus Table

 

 

If you have been trading for even a month or two, I’m willing to bet you have run into most, if not all of these dilemmas we face on a daily basis.  Heck, we could easily add a ton more examples to the table.  We could spend hours discussing the nuances involved discussing the different issues we must balance in our trading.  For now, I think it is important to remember that becoming a successful trader is not a matter of pulling a huge trade or having a great week where you’re up 100+ pips.  Yes, of course you have to be able to read the market and pull positive trades.  However, a truly successful trader is someone who repeatedly and consistently makes great decisions day in and day out.

When you consider the dozens of subtle twists and turns that we must successfully navigate during every session, it is no wonder that most people fall off the tightrope and never get back up.  However, we have some tremendous advantages over the general public.  Unlike 99% of retail traders:  we are taught to understand and follow the market makers’ business model… we have the virtual classroom at our fingertips… we receive incredible support from the Fx365i instructors… we are welcomed and encouraged by the community development team… and of course we have great support from our fellow traders at the institute.   As someone who has been struggling mightily as of late, I am taking a deep breath and focusing on making great decisions.  As long as I’m still up here on this tightrope, I’m going to keep working on becoming more nimble in my decision making and stabilizing my balance.

 

I absolutely love hearing from my fellow traders.  Please reach out to me at pipaddict73@gmail.com if there’s ever anything you’d like to discuss.

-Cyrus Sidhwa

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