January 2016

In case you’ve been living under a rock for the last decade, technology is changing the world at a more rapid rate than ever before.  For hundreds of thousands of people, the changes technology has brought has created a time of uncertainty, turmoil and desperation; and for others, a time of hope, gain & prosperity.

 

The age old adage, ‘when the going gets tough, the tough get going,’ has never been truer. However, as things have changed more and faster, at steeper curves of progression, many have found that their efforts of working harder has done little more for them than coming up short.   If it hasn’t crossed your mind before, it may be time to look at a way to work smarter, instead of working harder.  While people have been saying that phrase to me for years, I never really understood it until I was introduced to the concept of leverage.

 

If you are a forward thinking individual, you have crossed a time when you’ve looked at someone who has achieved high levels of financial success in their life and thought to yourself, ‘they can’t be THAT much better than me; they can’t be THAT much harder working than me.’  If you’ve thought that, I’m here to tell you that you are absolutely right. They most certainly are probably neither.  What they are doing better than you though, is playing a different game. And if you ever try to race a Ferrari on a bicycle, no matter how strong you might be, that is a losing proposition.

 

The person who has leverage however, has found a way to earn money not based off of an exchange of their own time, but from the time of others, a business system that reaches a much bigger group than they can themselves, or by leveraging their own money.  Unfortunately for most, in times of trial and tribulation, few people tend to rethink everything they know and usually try to find a higher hourly exchange for something they already have experience with or think they could do.

 

If you’ve been scratching your head looking for a way to beat the game you have been playing, it’s time for you to learn a skill set that can offer you massive leverage.  Enter, “trading Foreign Currency”, or “the FOREX  ”.   Without providing an over the top education in this blog about what it is and how it all works, just understand that people buy and sell money to each other all over the world every single day. As a result, this market behaves in a certain way, and by investing your time in getting a proper education in this market, you can learn a skill set that maybe for the first time in your life, can provide you massive leverage.

 

Just the other night, using the methodology that I have learned as a student at the fx365 Institute, I was able to identify an economic news event before it happened (1. 00 AM PST). I set an appointment with myself to evaluate the market at that time (I jumped on about 30 minutes prior), created a trading strategy, and in about an hour from the time I opened my computer, I closed my trading station with 1 trade; a profit of 9.8 pips. Now you’re probably asking yourself what a pip is and what that means to you.  A pip is an increment by which the forex market is measured in.  Anytime you enter and exit a trade, your profit or loss will be measured in pips.  Here is the important part: When you learn the skill set of trading, your quest for pips remains exactly the same.  However, the amount of money that they are worth to you changes over time.  In fact, you can assign as much or as little value to a pip as you are comfortable with or that your account margin will allow.

 

paytons pic

 

Recognize here that the skill set that you are learning never changes.  And here is where leverage enters. That 9.8 pip trade for me on that night was worth $0.98. For many, to wake up in the middle of the night, learn something completely foreign and new, earn just shy of a dollar and to be pleased with it is laughable. The fun part however, is soon that denomination will be worth $9.80. Great, you just bought yourself lunch, maybe.  Well what about $98 dollars?  $98.00 for an hours’ worth of work starts to be a bit more of an entertaining proposition.  What about $980.00?  Could that put a dent in some of your bills each month?  As you become a more competent trader, you can trade; 10 pip, a $1 pip, a $10 pip, a $100 pip and so on.

 

Where else can you learning a skillset that over time you could put hundreds of dollars an hour into your pocket? On top of that, a skill set that can be used from anywhere that you have a secure internet connection.

 

While this is only the tip of the iceberg, and of course, there comes inherent risk and fear that surrounds the financial markets, with the appropriate education and an approach similar to what one might go through to become say a licensed massage therapist, a nurse, a welder, trading the forex might just be worth a look. The fx365 institute is the only school in the world where they trade live with you every day, year round via a professional broadcast with professional traders. It’s your best bet to work smarter instead of harder.

 

Best of Luck!

 

Payton

So my last blog entry was about the need to make a plan——So I revisited the “lot ladder” and really looked at how I am going to “make money” at this business. If you don’t have the excel spread sheet—THE LOT LADDER– I highly recommend you ask your enrollment counselor to create one for you. This is the business plan—the “way” to see how over time you will create a monthly income. It makes the unknowable and the undoable—knowable and doable. Well at least on paper. Now this plan will not execute itself. It is up to me to make this happen. This “way” is not magical or a pipe dream. This “way” entails an investment of time, an acquisition of real skills and most importantly a realistic outlook. I know what it took for me to make what I make at my current job—the time invested in learning and making mistakes and making more mistakes and I have to be prepared to do the same.
The LOT LADDER provides me an end result I can aspire to. I know that each of us has a different set of “life situations” so the ladder might take longer than mapped out, but at least I will know that it will be up to me to do the work. If life says “distraction over here Andrew” or “better opportunity over here Andrew”, then I know it’s not that “the plan” isn’t working out…I am not working the plan!!! The great aspect about owning your own business (and I have owned my own my entire life) is that I get to call the shots. I get to focus when I choose to focus and I have the power to make as much money as I want only when I want to invest my time and life energy.
Next up- time to build my skills…….till next time….

Andrew Bisaha

It’s that time of year again! Gyms will be over-run with temporarily zealous fit freaks, and life-changing resolutions are declared around the world. With the New Year upon us, it is, in my opinion, important to cast some direction and intention over the year ahead, as well as use the natural tide of change that rises upon humanity this time of year to our favor.  Having said that, whether you are a new student with the fx365i, or one of our more seasoned students who wants to write a new chapter in their own history book this year, there are a handful of thoughts that I have had reflecting on the first 7 months of my trading career.

As the great Jim Rohn famously said, “any two years you can change your life forever.  18-20, 30-32, 68-70… Any two years.” To go along with these words he added, “for things to change, you have to change [and] for things to get better, you have to get better.”

I start with that thought because each of us arrived at the fx365institute with the belief that every successful entrepreneur has…

-a better future than their present

-has the absolute power to make it so

 

And with that, here are 7 things that will help you reach your goals:

#1) Why?

Before you start on your journey, take the time to have a clear and defined written explanation as to why you have chosen to take the time and energy to learn to successfully trade the forex. Of course the obvious answer is to make money, but the reason why is what is going to pull you through the frustrating times you will have. The stronger and clearer this reason is, the easier it will be to work through your inevitable shortcomings as a trader and remain solution oriented rather than obstacle focused.

 

#2) Do not measure your progress in pips.

The immediate trading cliché that didn’t take me long to realize is that in Forex trading “You either win or learn.”  As much as I would’ve liked to be a trading prodigy and had an alarming win rate from the beginning, the reality is that I learned almost nothing from a winning trade.  At no point that I can remember did I take a positive trade and dissect my own screen shot to figure out where I went wrong. You can practice bad behavior and in the short term you can be up, however the market will expose your mistakes, and it’s ok.  Instead measure yourself by the activities you are doing.  Study the Virtual Classroom, read the Forex book, engage daily in fxlive, take and archive your screen shots, your trading journal, learn what all of the basic signals are on your charts, and measure your progress off of how well you are doing those things.

 

#3) Have a realistic expectation for how long this is going to take

One of the immediate shortcomings that I had was that I felt like I had uncovered Pandora ’s Box when I learned about the way that the market works and how we trade alongside the market makers.  This caused me to believe this would insulate me from losing and that I would be well on my way right up the lot ladder fast.  Here’s what I would tell myself now.  Look at the lot ladder, get excited about the lot ladder. It’s real, and it’s not out of reach…however, before you get to start up it, you have to learn how to trade, so give yourself time. Cutty told me in our first conversation that he anticipated taking a year to learn to trade and a year to build up his trading account, which I promptly dismissed because admittedly, I’m young and overconfident. Turns out, from where I sit now, that’s not a bad business plan. Can it be done faster? Of course, but let’s get serious, there’s a reason Jim Rohn says, ‘any two years can change your life.’

 

#4) Be a good student.  

  • Shane & the Guth family have put an extraordinary amount of time, learning, trading and energy into creating the course content for the class we signed up for.  Take the time to read it.  Study it.  Pretend that you will be tested on it, and eventually be ready to teach it.  Shane is thoughtful, smart, and efficient.  If it isn’t relevant to your goal of trading the markets competently and consciously, it has been weeded out.  To disregard or overlook the course content is a disservice to yourself.  Watch Wade’s videos repeatedly.
  • Do your trading log. Every trade. If there is a silver bullet, it’s this combined with your own personal screenshots as well as your weekly progress report.
  • Take them and archive them.
  • Analyze your own trading.  It won’t take you that long to start understanding the majority of the important information that the charts show us, but it may take a while to understand what actions you are taking based off of that information.  It’s not always clear in the moment but it almost always is in hindsight.  Plan, do, Review.
  • Show Up Consistently with a good attitude.  Ira happens to be not only one of our great instructors but a great trader. When I asked Steve about Ira, he told me that “Ira has been relentlessly consistent at this…” Doesn’t seem like a coincidence to me.
  • Find a battle buddy.  The community at the institute is one of the most amazing things about it, and there are people of every age, background, and level of student that you could want.  Meet the people, interact daily on fxlive and roll up your sleeves and jump in… Like anything I’ve been a part of, you get what you put in.
  • Read the books!  ‘The Forex Mindset” is a tremendous resource as is another book called “Mindset”. Treat these books biblically during your tenure as a student.  Review them, re-review them.  Each time I have read ‘The Forex Mindset,’ I have gathered different insight and in some cases understood things I had already read differently.
  • The Traders Cog is real.  When I first saw the traders cog, I decided I was just going to skip it.  As it turns out, I’m 31 weeks in and right on schedule.  Maybe you can skip it, but if you don’t, some smart people that have been down this road made it up… and it’s pretty accurate.

 

#5) You will probably ask yourself all of these questions…

  • Am I ever going to get this? Yes
  • Does anybody actually make money consistently at this? Yes ( a lot do)
  • Are we sure this Market Makers thing is real? Yes
  • Is this a total pipe dream? No
  • Am I destined to be one of the failed 95% of retail traders? No
  • Am I wasting my time? No you have a current plan for financial freedom that’s working? If no, then no
  • Are there real fx365i students who have learned how to do this and are profitable? Yes
  • If people are doing so well how come no one talks about money? Because its the skill set you’re after.  If you can consistently pull pips for profit, you can get free financially.

 

#6) Play to Win

There is a saying that says ‘if you mess up once it’s a mistake, if you mess up the same thing a second time, it’s a decision.’

While it’s likely in your trading you will make the same mistake more than once, make the commitment to yourself to understand the mistakes your making, take a pro-active approach to each step of your trading.  Analyze, discuss, review, try again and dig in… Anything that can deliver the leverage and exponential returns the way that successfully trading the forex can is going to be a challenge, and of course is going to be worth it.

 

#7) Have Faith

‘The difference between belief and faith’

Years ago there were two friends.  One day one of the friends decided he wanted to do something exciting, so he took up tight rope walking.  After practicing for months and months walking carefully back and forth on a line strung feet above the ground, he began to feel the urge to accomplish something spectacular.  He began to craft an exhibition where he would walk a stretched cable between two rooftops, high enough that if he fell it would result in death.  To make his feat all the more impressive, he decided that he would not only walk the tight rope, but he would push a wheelbarrow across it with him.

He practiced and practiced while his friend watched on, impressed with his determination and relentlessness.  After perfecting the stunt over and over again and arranging for the big day and exhibition, the time had finally come.

The two friends stood atop the skyscraper eyeing the cable stretched tight between the rooftops.  Time seemed to stand still.  The sound of chatter amongst the crowd standing below, although constant, faded away to the ears of the two men.

In the final moment as the tight rope walker draped his feet over the cable and steadied his grip on the wheelbarrow handles, the friend was faced with the choice of belief, or faith.   His belief led him to have the utmost confidence that his friend would complete the exhibition, but it was his faith, that caused him to get in the wheelbarrow.

 

In closing, have faith in the journey, the frustrations you will face, the institute, and yourself.  Have fun, and in a few years when you are living your ‘Why’, look back on this time as a distinct moment where you went for it 100%…

 

Payton Parnegg

Well it’s 2016, and another year has gone by. New Years resolutions have begun, gym memberships are sky rocketing and everyone is motivated to become more fit, drop a bad habit, pick-up a new hobby, or set new budgets. Although I have never been convinced that the dawn of a new year gives you any advantage of actually accomplishing any goal, what I do believe is that by writing out your goal on paper and establishing a date, will give you a much better chance of completing it.

One thing I have looked at for myself in the past couple years is a specific Money Management philosophy in my trading. At the end of each year, I take stock of how well (or horribly) I have traded for the year and make sure that my strategy is sound and still valid. This is an exercise I wish I learned my first day trading because it would have not only made me more money, but it would have substantially mitigated a good percent of my total losses in my first year. So what I am going to share with you now is a very simple philosophy I follow that has helped my trading massively.

Money Management

The difference between a new trader and a professional trader is this: A new trader thinks about how much money they can make, while a Professional Trader thinks about how much money they can lose. Do you see the difference? The moral of this story is that trading is risky, and although it is fun to think about all of the money you could potentially make, most new traders seldom like to think about the fact that one bad day of trading can cut their account in half, or how a misunderstanding in risk reward ratio can lead to taking far greater losses than positive gains. The market doesn’t care about how much money I have, what I lose or what I win. The market itself is pure and emotionless, but is driven by the emotions and beliefs of the people who participate in it.

This allows me to have a clear advantage over most traders if I can follow these simple rules while trading:

  1. Never risk more than 5% of my total account balance at any time
  2. Identify Profit target and risk out before getting in to any trade ever
  3. Never trade without a stop loss
  4. Use 1:2 risk/reward ration

(I will explain these concepts now)

  1. Never risk more than 5% of your account Balance!

This is very simple math and this will keep you from not only having a really bad day trading, but also helps prevent you from biting off more than you can chew. It answers a very simple question of what lot size should I be trading? Here is an Example:

If I have an account balance of $1,000, then 5% of that is $50. So, if I am trading a lot size equating to $1, then a -50 pip stop out would reduce my account by 5%. This means that the most I am ever willing to lose on any one trade is 5% of my total account. Now I am not advocating take a -50, but you get the idea. The dollar figure and lots size is proportional to your account balance.

  1. Identify Profit Target and Risk Out before getting in to any trade ever!

This is the mark of a professional trader and for me, this was a huge milestone in my personal trading. In order to understand what my risk and profit target is getting in to a trade I needed to really understand how the market works. When I can comprehend what I am looking at on my screen and I can say to myself (or anyone else) “this is good entry because….. and as a result of this I will know this trade is behaving when it does X and I will know it’s time to dump it if it does X,” then I am on my way to making some money in FOREX. This is how you make money. There is no luck involved. It comes down to being able to identify a trade set up and being able to pull the trigger. In actuality, this is the easy part. Let’s talk about where things really get hard…

  1. Never Trade Without a Stop-Loss

If I am trading from a place of indifference all the time, why would I ever need to run a stop-loss? The answer is that we are a human beings and no matter how emotionally stable we think we are there will come a day where the market spins you out and makes you feel like you know NOTHING about trading. Any long time traders know this to be true, no one is immune from taking losses. The mark of a true professional is how clever we can be, and gracefully we can lose (I’ll cover this in the next section). To protect ourselves from ourselves, we need to preset a stop-loss when going into any trade that is automatically set the moment I click in. It is there to serve as a safety net to ensure that my emotions will not get the best of me in the event that things go wrong, which they will.

  1. Using a 1:2 Risk / Reward Ratio

As I mentioned above when explaining the importance of a stop-loss, the next logical question is “what should my stop-loss be.” For me I use a 1:2 risk reward ratio. I will explain how this works. If my target PIP goal is 50 pips, then my stop should be set to -25. This way if I am making smart trades and my win Ratio is 50%, then I am profitable in my account. I’ll give you this analogy: If you flip a coin, you have a 50/50 chance of calling it correctly. Simple right? Trading should be no different and here is why: If I am only winning 50% of the time but I make 50 pips every time I am correct and lose on half that (-25) when I am wrong, then over a long period of time I am going to remain profitable in my account. This is what I meant when I was referring to losing cleverly and gracefully. Obviously, I don’t advocate blindly trading your account but I love the simplicity of this because you can become a profitable trader with a 50% win rate! Awesome.

Conclusion

An experienced trader trusts their methodology. If any strategy is going to be successful, you need to give it enough time to work. In the first year for me, it was all about gaining experience and trying not to lose money in my account. Every year after that has not become about how much money I can make, but about how little I am going to lose. My experience has shown me that the more I can depend on high probability averages (like a 50% win/loss rate on my trade) and trust them to be true, the more confident I become in the methodology. When a trader combines a sound methodology with experience, and solid foundation in Money Management and risk mitigation, then you are well on your way to becoming a Professional Currency trader.

Happy 2016!

Steve Wolf

Director of Enrollment

FX365 Institute.