July 2016

Sometimes, taking the time to continue mastering trading is frustrating.  Early mornings, little to no initial return, doubt, frustration… why keep going?

If for no other reason, for the power of part time.

Depending on each of our socio-economic status’s, we all have a number in mind that would help supplement our lifestyle or create financial independence.  This is why we start a project like learning to trade.

Almost all of us however, come to the table with some type of linear income formula that we have developed from working traditional jobs for most of our lives.

So we start trading optimistically, and after a while, based off of our linear income formula, we start to question if this is a good exchange of time after a few weeks or months.

In the traditional environment of earning income, 40, 60, sometimes even 80 hours a week is an adequate work load.  This is because of the way that due compensation for skills & or labor are compensated in the marketplace.  In order to meet the monetary necessities of life, it requires sacrificing that much time to get to the bottom line.

However, if a boss of yours said, ‘I only have 15 hours of work per week for you.  The first year, I can’t pay you, you actually have to pay me.  The second year, I can pay you back what you paid me the first year.  Every next year after that, I will double the previous years pay with no limit.’

If understood correctly, this is a proposition any rational person would take.  It would mean almost guaranteed riches inside of a decade.

If you take a step back for a moment, realize that this is exactly the proposition you have in front of you with learning to trade.  The only difference is that the ‘boss,’ is actually you.  And there is no guarantee, just like life.

So the real question is, are you putting forth the type of energy and effort with the enthusiasm that you would have if you were showing up to work for the boss with the guarantee?

Part-time or full-time, if not by doing this, how do you anticipate getting to a point where you can ever earn income in quantities greater than the hours you are investing?

To learn more, visit www.Forex365institute.com and follow us on instagram @forex365institute

If you are making a decision as to whether you want to learn how to trade currencies, or if you are even at the point of where you are trying to make a decision as to whether you want to continue learning to trade currencies, look for light at the end of the tunnel.

This is where the need for accurate and specific reporting is necessary in your trading.  Different people use different utilities to do so, one 3rd party reporting tool that we here at the Institute find to be useful is myfxbook.  You can sync your trading account directly to it and utilize a plethora of interesting and useful reporting tools.

Recently, I was enduring a bit of a frustrating stretch in my own personal trading.  It caused me to question just about everything.  I’m told this happens to everyone.

However, in my efforts to get to the bottom of some of my issues, I stumbled upon a number that was very much light at the end of the tunnel.  60%.  What is the significance of this number?  This is my YTD win rate.  You may have heard our lead instructor LaCurtis say at some point, ‘you can be wrong half the time and still get paid…’

Well, all of a sudden I went from destitute and pessimistic to hopeful and optimistic!  More exciting than that, was that my win rate in 2015 was around 33%.  This was a huge improvement!  Even more light at the end of the tunnel.

Now there are more things I certainly need to learn to do better in my trading.  2 of which are learning how to cut out of my losses earlier and overall have a tighter capital management strategy, but the point of the story is that you may be closer to where you want to go than you think you are.  This is certainly true for me.

Until next time, happy pipping.

To learn to trade with us, visit www.forex365institute.com and for more fun & motivation, follow us on Instagram @forex365institute


If you were a soldier in the battle field, entering a known war zone where enemy land-mines had been planted, wouldn’t it be very important to you to gather as much information as possible on the whereabouts of known landmines?  On top of that, even if your outfit had strong intel, do you think you would continue to exercise some caution as you stepped out on the battle field?

The importance of this analogy can be related to your journey as a student here with the Fx365institute.  The instructors, the founders, and graduated students have all been in the ‘battlefield,’ observing and recording many known landmines.  The analogy works even further because although these guys have been through many things that you don’t necessarily HAVE to go through yourself, the likelihood is that you will want to learn some of the hard lessons for yourself.

While this doesn’t cover everything, there are a few key things that tend to be the rule, not the exception when learning how to be a PROFESSIONAL CURRENCY TRADER.

#1 – Have patience for the process.  Its been said before, it needs to be repeated endlessly.  Trading is not get rich quick.  In fact, its not even make money very quickly…in the beginning.  What if it took 18 months before you could consistently generate profits? But then after 18 months you have a mechanism that can effectively act as a part time ATM.

#2 – Have concrete entries.  When you are starting out trading, one of the great illusions is the feeling that in order to be a ‘trader,’ you have to be ‘IN’ a trade all of the time.  In reality, the best traders don’t actually place trades all that often.  On top of that, the best traders have a trading plan.  They don’t get in on a hunch, they don’t get in just because the charts ‘look’ like they are going somewhere.  They have a specific direction they want to trade in, a specific price point they want to buy/sell at, and a specific price level they will exit the trade for loss & profit.

#3 – Trading Rules, HONOR Them.  There are some trading rules that you will likely develop as you learn how to trade.  These will be different for each individual, but one rule that seems to be relevant to most is a rule for total trades taken in each week.  For example Shane Guth, one of our instructors likes to abide by the #10.  Another that has merit in my own trading is a rule adopted by Rob Guth.  This rule says that if anytime you take 2 consecutive losing trades in a week, you are cut off from trading for the rest of the week.  The power of trading rules has less to do with the rules themselves, but more about honoring them.  The sooner you honor your own rules, the sooner you will trust yourself with a large enough account to make money with.

#4 – You can do it.  Trading tends to have this mystique of absolutes that surrounds it.  When you’re up you feel like you ‘got it,’ and when you’re down it can feel like you will never ‘get it.’  You will.  Keep going.  If you need any reminders that the result is worth it, revisit the blog Steve Wolf wrote about the day he made $1200 bucks in profit, surfed epic waves and got engaged in a foreign country.  What other business offers that potential?

Happy trading everyone, here’s to you avoiding landmines.

It has come to my attention recently that most people who embark on the journey of trading, provided that they learn a sound methodology like what we teach here at the Fx365 Institute, successfully learn how to trade the screen that is in front of them.

 

What actually becomes the challenge for people to overcome, is not the ability to get themselves into positive trades, or in the words of our Director of Education, Mr. LaCurtis Mayes, ‘I ain’t worried about being able to pull no pips…’ but instead, the ability to manage themselves emotionally at a large enough pip value to actually make their trading profits meaningful.

 

As the adage says, 100 pips at a $1 a pip is not the same as 20 pips at $10 dollars a pip.

 

I don’t know about any of my fellow traders, but if you are anything like me, you may react differently in your trading as you move up the lot ladder in dollar amounts.

 

This is where the exercise of emotional weight-lifting comes into play.  For me, trading the same lot size for months at a time did very little for me emotionally.  But what I did find, was that when I multiplied my lot size by 20x I was confronted with a whole new set of emotional challenges.

 

After quite frankly being generally discouraged by my performance at this elevated size, I reduced my pip value by 15x and found that I now was trading very well, virtually emotionless, and making quality decisions.  The upside was that now I was trading without emotion, at a lot size that was 5x my original lot size.

 

If you are feeling very stuck with moving forward with your trading, it may be time to experiment with stretching yourself emotionally.  Remember, as the FXCM disclaimer states,

‘trading can be potentially risky and do not risk more capital than you may be comfortable losing.’  Having said that, if you push yourself into a lot size that is uncomfortable to you, even if you return later to a smaller lot size, you will likely end up trading with indifference at a lot size that is greater than where you first started.

 

Eventually, we can achieve the destination of being able to trade a $100+ pip with indifference.

 

Again in the words of Mr. LaCurtis, ‘if you are going along trading a dollar, 2 dollars and think you are going to make money at this, you’re fooling yourself.’

 

So here is to emotionally weightlifting and breaking through plateaus!

 

By Payton Parnegg