Here is what happened in this morning’s market.
Society has us trained to believe there is only one way to make money. We have to get up early, and come home late. Miss our kid’s soccer games, and save up our vacation days to take a 3 day vacation an hour away from home and even then, we need to bring our laptops just so we don’t get too behind on our work load. I am happy to announce, this is only one way (and unfortunately the most common way) to make money. But it isn’t the only way. We don’t all have to be stuck in the same routine. If you want to travel the world, do it! And if you don’t feel well, take the week off! Forex Trading is a great way to make money. You can work while traveling the world or while your kids are in school. As long as you have a computer and access to the internet, you’re in business. This is why Forex Trading is becoming more popular, because it gives you the opportunity to live without having those work strings attached. You have freedom and control over your entire schedule. Sounds dreamy right?
So how do you get started? If you want to start your journey to being a professional trader, you should start at FX365i. The environment is very welcoming and open and the staff is very knowledgeable and experienced. They have an awesome classroom and daily live virtual feed for their students and if you look at their business model, you’d know they want their students to succeed.
Of course, I am speaking from an outside perspective. I am not a professional trader, in fact have not even started my course at FX365i. But, I have been interning for the company for a few months now and can confidently confirm that this institute is a community of genuine people who love what they do. Every time I walk into a room to someone I don’t know, they are more than eager to reach their hand out and have a conversation. What a great environment right!? That’s the kind of environment you want to be in to learn. One where people are friendly and where you feel comfortable to ask questions. And let me tell you, this is the place that meets all those criteria!
I am planning to go through FX365i after I finish school. I cannot wait to finally understand what a pip is and to really understand the market, and, of course I cannot wait to find out why everyone makes a big deal out of the psychology behind trading! I can tell from reading the blogs it’s going to be a long journey full of learning and hard work. But by keeping my goals in mind, hopefully one day I’ll be able to live the dream everyone is talking about!
Good Luck Traders!
What to expect as a new Trader
In this blog I want to explore the topic of actually trading. Imagining the glamour of what it means to do is definitely the easy part; the freedom and money. Strategies aside; what are you actually doing while sitting there watching the charts?
When you sit down to start your trading session, it usually involves quite a bit of mental preparation along with some self-talk. A positive ritual to get into the right frame of mind is essential for profitable trading. For me personally, I usually review my own personal reasons for trading (which is just a simple list of why I need to the best job I can). This is then followed by a purposely quick look (around 30 seconds) at what price has been doing over the last 48 hours. If I am unable to form a coherent understanding of what this means for future price action then I step away for 30 minutes or so and then reevaluate. Wash, rinse, repeat.
Next comes the real analysis of price. This usually includes a lot of measuring and in depth looks at past movement in relationship to current price. By far the most important piece of this is being truly subjective and not convincing yourself of some outlandish trading plan. You have got to devise a trading plan that has got a reasonable entry, stop, and limit, and you have to stick with that. It can be very easy to convince yourself that you’re at a turn, but 9 out of 10 times this simply is not the case. If you’re able to fight off the urge to immediately jump into a trade, then the real test of a trader comes into play… Waiting.
Waiting is what you are going to spend the majority of your time doing as a trader. Nobody told me it could be so boring when I started. Your income is directly tied to your ability to wait so that your timing is good as a result. For those that have not traded before this may not seem like much, but waiting while being intently focused on a moving target can be pretty tricky business. Your mind will constantly be fabricating a less than optimal reason to just jump into the market. At some point of the endless waiting there comes a moment, that given the understanding and screen time, you are presented with an actual entry.
Depending on a few different variables (news, volume, overall movement, etc.), this entry opportunity can last anywhere from 10 seconds to around 20 minutes. It’s typically on the lower side though. This is a fork in the road. Sometimes despite all that patience, you still can’t make yourself get in only to be upset with yourself for the rest of the session. In the event that you do take the trade, you’ll most likely find that for the next while you are going to be hyper sensitive to any movement in the market. This is called “anchoring”, and something you really want to avoid while trading.
After the initial tension of clicking into a trade is over, it is surprisingly followed by a numbness to the price action (especially if you are drastically positive in the trade). Yet again this is a thought process that you will want to avoid. When a trade is working out well, a trader’s risk tolerance is prone to also go up. This is usually how a seemingly competent trader may see a massive profit only to ride through and turn right into a meager profit. That money is not yours until the position is closed and it is sitting in your account.
Now that you have closed your position out for better or worse, you are faced with another challenge; avoiding overtrading. Overtrading is one of the top account killers in Forex. If you have ever had an experience in a casino that ended in a personal resolution to never go back, you might have experienced something similar to overtrading. As much as many (myself included) wish it wasn’t the case, there is usually only 1 good opportunity per session with about 2 far less optimal variations on that same trade. Taking more than 1-2 well thought out trades in a session is a surefire way to dramatically increase the risk you take on. Needless to say it usually doesn’t end well for anyone but the Broker and Bank.
While this all may seem very daunting for someone that has never traded before, rest assured, pulling off a great trading session is one of the most rewarding feelings that you can experience. The wins (and losses) are yours and yours alone. Getting to the other side of learning to trade is an eye opening experience that forces you to look at yourself and become the best that you can be.
Thanks for reading and be sure to subscribe for more emotional and technical analysis of Forex Trading.
Have you ever gotten a chance to look at the ‘lot ladder?’ I’ll bet that you have, and I’ll bet that if you are at ALL a driven person, or motivated by profit, then you probably got very excited.
Now did you ever get a chance to look at the ‘Traders Cog?’ Again, I’ll bet that if you are a motivated, driven person, you probably glanced at it and either subconsciously or consciously dismissed it a little bit. I get it, you are better than average, you have probably excelled at other endeavors in your life and usually don’t get held up by the same things ‘others’ do.
So, here’s the thing. That sequence of events may be one of the things, if not THE thing that is holding you back from where you want to go. What most student traders seem to do is to see the lot ladder, get started as a student, get really REALLY excited about all of the potential change that they are going to experience in their life, and then WHAM. Reality hits. Trading seems to be one of those things that requires a completely new skill set. It requires a technical & emotional skill set, and also happens to be something that doesn’t really care that much about how good you’ve been at anything in the past.
What happens now, is that over time, the enthusiasm wanes. Suddenly you are months and months into your trading career and you are less and less optimistic. Doubt enters the mind. The imagination starts to entertain other more ‘viable’ income options. And here in lies the GREAT MISTAKE. All the while, whether you can tell or not, your skills are improving. Amidst the doubt, you actually probably know how to trade for profit, and even if your account doesn’t say so right now, you are dangerously close to your personal breakthrough.
How do I know all this? Because it happened to me, and as special as I tend to think I am, I’m not that different from you. HOWEVER, I am making it to the other side, and I can now tell you this.
HERE is when you should start getting VERY excited about your FOREX trading.
You should start getting VERY excited about your trading when you have made it through the bottom of the ‘Traders COG.’ Because NOW, you can start your march up the ‘lot ladder,’ AND by waiting until then to start getting VERY excited, you will save yourself a lot of frustration that will NOT accelerate your learning curve.
Remember, anything that compounds in nature will accelerate over time. So while everyone else is being impatient, frustrated, disappointed, and maybe even looking for yet another shiny new thing, be the person that understands that years 3 & 4 can and will dramatically outpace years 1 & 2, AND a trader that earns 30-40 pips per week with control, scales their pips accordingly, and endures enough time, will earn remarkable returns.
Until next time, happy ‘pip’ing!
By Payton Parnegg
If you are thinking about trying your hand at currency trading, then there are a couple natural talents and or interests that people who make great traders have. As you read through the 7 signs and find that you are a match, then that natural ability coupled with the correct training will give you a clear advantage when it comes to trading the markets!
Here is the list:
Now if you found that you met 4 out of 7 signs, don’t fret, you are still in luck. Things like emotional stability, work ethic, and humility can be learned over time as long as you are willing to put in the work to learn.
Here at the FX365 Institute, we specialize in teaching everyday folks how to become ninja traders in the market. We have found that when a student is willing to do what ever it takes to learn to trade, we as an institution can help get them across the finish line.
Think of it like this, if you are trying to get in shape, hire the best trainer and nutritionist to plan your meals and help you work out correctly you will have all of the tools you need to get in shape. If you never show up to the gym and eat correctly, you will never see the results.
Learning to become a profitable trader is exactly the same. We can provide you software, instruction, mentorship, access to our trading community but at the end of the day, if you don’t show up and put in screen time, you will never make it even if you have matched all 7 signs!