Author: ibarnes

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

This blog entry is going to be short, and I hope, sweet.

We all want to maximize our winning PIP count and minimize our losing PIP count for every trade that we take.

After a month of trading with the Market Maker Course software (Smart Money Profile), I’m convinced that limit-profit to stop-loss (reward to risk ratios) can be 4:1 to 6:1 and even higher.  In Market Maker Course language, this means we can often look to capture 20-30 PIP profits with a 5 PIP loss as our risk management number.

HOW can we dare use such a small stop-loss of 5 PIPs?  Because when the SMP charts are showing high probability setups and entries, and you’ve chosen the correct direction to take your trade, the price-action rarely violates by five PIPs or more the significant price levels shown as dots, average price lines, liquidity lines, grid and net lines.

WHY use just 5 PIPs as your stop-loss?  Two huge reasons.  First, the conservative reason.  Simply put,   if you’re wrong three trades in a row, your losses will amount to about fifteen PIPs.  One successful Market Maker Course trade can be well over twenty PIPs, but, let’s keep it at twenty for this example.  Do the arithmetic, one success completely cleans up three losses and even after adding in all the commissions, leaves you about even.  To me this is really smart risk management.

Second, the aggressive reason.  I’m assuming you’re a veteran, seasoned Market Maker Course trader, able to see and act on, mostly, high probability trades when they present themselves.  By practicing conservative five PIP stop-loss trading and adding in an overall winning trade percentage of 70%, I can  see weeks where you will be up ten, twenty or more PIPs over your weekly PIP capture goal.

If you choose, you can decide to go after a big winning trade without endangering your weekly PIP goal count.  An example:  your weekly PIP count is twenty above your goal;  you see a setup/entry opportunity with an 80 PIP target;  allow yourself, on this trade only, a wider 15 PIP stop-loss;  this allows you the luxury of a wider negative drawdown on the way to a possible 80 PIP win.  If you’re right, that’s some nice icing on the cake for the week; if you’re wrong, you’ve still met your week’s PIP goal.

Simply put, the five PIP stop-loss allows you to be a flexible trader, if you choose—in my case, mostly conservative, sometimes aggressive.

 

-Ira Barnes

Fx365i Instructor

ira.barnes@fx365i.com

The SMP (Market Maker course) trading program allows us to use 20-20 hindsight.  That is, the charts don’t change over time as the WealthSmart (Moment in Momentum course) charts did.  I say, “wow!”, because this is big deal;  this really does allow us to use 20-20 hindsight to speed up our learning and earning curves.  Let’s do it guided by the 20-20 words, below:

 

1,2—HOME WORK

Yes, there will be some after trading session work to do.  Spend a few hours a week (weekday evenings or on the weekend) reviewing the charts.  You’ll see setups and entries that you missed during the live trading sessions.

 

3,4—LEARNING CURVE

You are responsible for the pace at which your personal learning curve moves ahead.  I suggest that you not only review charts by yourself, but show and share interesting charts (setups and entries) with your fellow students and instructors.  With the Smart Money Profile program you’re looking at and interpreting market maker content maps (paths to the PIPs).  The more the better to speed up your learning curve.

 

5,6—LOOK LEFT

Oh, by the way, don’t limit yourself to today’s charts and then tomorrow’s ‘today’s charts.’  Look left—scroll your charts to the left to last week’s and last month’s charts.  It’s all good—more market maker content, more setups and entries to identify, more maps to practice reading.

 

7,8—BACK TEST

This process of looking left, using history to advance your learning curve pace is known as back testing.  There’s a wealth of information back there thanks to unchanging charts (20-20 hindsight).

 

9,10—RIGHT EDGE

Now, to best look left and back test I suggest that you make the experience as ‘realtime realistic’ as possible.  You do this by emulating video replay of the price action … 5-minute candle by 5-minute candle and do the same with each 15-minute and 1-hour candle.

 

How?  Put your ‘current candle’ on the right edge (so that you cannot see the future) of your chart  and use the right and left arrows on your keyboard to move into the future or back, again, to replay.  Use your ‘stop action’ to explain what you see developing on the charts.  Talk about speeding up your learning curve, this is it.

 

11,12—QUICKER, FASTER

Next, let’s look at the earning curve part of all this.  It seems to me that we’re looking at simple and straight forward cause and effect happening here.  Speeding up your learning curve means seeing more trade setups and entries sooner rather than later in your student experience.  What follows directly will be distinguishing high quality setups and entries from those that are not so.  You’ll get better, sooner, at reading and interpreting market maker content maps.  Next, more winning trades and less losing trades—this is the cause.  The effect—quicker to the lot ladder and faster up the lot ladder.

 

13,14—LOT LADDER

Yes, the lot ladder—the business spreadsheet that explicitly shows why we only need to capture a modest number (30-40-50 PIPs) of PIPs per week.  Let the lot ladder, by way of reinvesting your profits, do the heavy lifting.  This is the power of account compounding (similar to compounding interest that Albert Einstein called the eighth wonder of the world).  The numbers grow slowly at first, but then take off.

 

15,16—ACCOUNT COMPOUNDING

The direct result is, in not a very long time, dramatic account growth.  Again, straight forward cause and effect.

 

17,18—PIP VALUE

The consequence to this quicker and faster move up the lot ladder by way of your account balance growth is your all important PIP value growth.  This is the ‘biggy’ in your career as a professional Forex  currency trader.  I’ll say it again and I’ll never tire of saying this, it’s not the quantity of PIPs captured, it’s the quality of PIPs captured by way of high probability winning trades as the result of accurate market maker content map reading (identifying high probability setups and entries).

In time (which you can speed up) you’ll arrive at the number one destination found on all of the market maker maps—the $100 and bigger PIP value.

 

19,20—EARNING CURVE

Do as I’ve suggested, above, and I expect all of our earning curves will eventually go straight providing to each of us the earning power to live the good life.

 

Ira Barnes

Fx365i Instructor

ira.barnes@fx365i.com

(Editor’s Note: For those who may not be familiar, WealthSmart was Fx365i’s original Forex training platform for the first few years of its existence.  In October, 2014, following two years of development, the institute released a beta version of a new platform called Smart Money Profile (SMP).  Due to the unprecedented levels of success that the majority of SMP students experienced, Fx365i began exclusively teaching with SMP in July, 2015.)

WealthSmart asks traders to wait for direction and momentum and then trade.  Wait for a bus to come flying through the intersection at 90 miles an hour and jump on and get your PIPs.  Who cares about the intersection street names; and, who cares about where the bus came from and where it’s going.  Just as long as it can’t easily make a U-turn or a sharp right turn, climb on board that bus and capture your PIPs and get off.   Where you get off, what street you’re on, who cares … you’ve got your PIPs, done, end of subject.  The trouble is that you don’t always know what kind of neighborhood you’re in.  There might have been a roadblock barrier just beyond the intersection that the bus blew through.  There might have been a big old sinkhole there.

Smart Money Profile—now the Market Maker course—asks traders to know not only what direction the market’s moving, but also, WHY is it moving in that direction?  THEN, AND ONLY THEN, should you trade!

Why is ‘why’ so important?  Because it tells you where the Market Makers are going and the destination.  You choose whether or not to go along for the ride and pick up your PIPs.  So, pull out your Market Maker content map and survey the landscape.  Generally, to protect yourself and your PIPs, decline rides in accumulation areas; always be ready to jump on board a profit release journey; and, selectively pick manipulation rides.

The long and the short of it is that by using your Market Maker map, you’ll more self assuredly and confidently capture more PIPs and higher probability PIPs because you’ll know what neighborhood you’re in.

In real estate and in Forex trading, using the Market Maker course, it’s ‘location, location, location.’  So, get your map out and learn how to use it; that is, REALLY learn how to use it.  After all, it’s the map to the gold.

Finally, be sure to wave to the vast majority of mapless Forex traders who are struggling and bumbling as you pass them by.

 

-Ira Barnes

Fx365i Instructor

ira.barnes@fx365i.com

First and foremost, the following vision for the FX365 Institute and its students is wholly my personal view as a student and instructor.

Why the change from two trading products to one?  In my opinion, the answer is simple—to more  quickly than ever before bring all of our students to higher levels of success as professional Forex currency traders.

Technically, the school’s reinvigorated mission statement is to get our students into real money accounts sooner, and, up the lot ladder faster.  Ideally, by the end of year one, we’d like to see our students earning at least $1,000 a month in their Forex trading accounts and be on their way to $100 PIPs and beyond in year two.

So, what can our students expect as they are taught the Market Maker course employing the SMP trading software?

Certainly, we WealthSmart traders will, no doubt at first, go through a period of adjustment and uncomfortableness.  It’s sort of like putting on a new high collar dress shirt and shiny new shoes.  Initially, the collar might cause a little neck irritation and the shoes might feel a bit stiff to the feet; but, in time, these sartorial changes can ‘make you look like a million dollars.’  With the changeover to SMP, I believe it will not ‘make you look like a million dollars’ … but … perhaps … ‘make you a million dollars.’

What else?  Certainly SMP offers more trading choices.  As a major advocate of WealthSmart’s moment in momentum trading, I want to assure everyone that you can do precision moment in momentum trading with SMP, and, if you choose, you can extend your trades because SMP helps you see the Market Maker’s price targets and you may decide to go along for the ride.  Taking SMP trading one step further, you can even decide to go beyond intra-day trading and do inter-day swing trading if that suits you.  More choices, that’s a good thing.

Finally, as I see it, two really big game changers.  First, with the SMP software, we now have a map with which to see each Market Maker business cycle play out.  Many retail traders, by placing entry orders, provide the Market Makers with a map of where their entries, stops and profit-limits are located.  We now get to turn the table on the Market Makers and to some degree get to see their entries, stops and profit-limits.  This is a game changer.

The second game changer, as I see it, gives us the ability to speed up our learning curve.  How?  WealthSmart did not allow hindsight or historical studies of the charts because its indicators are signals that change size, color, shape and location.  SMP does allow hindsight, that is, historical studies of the charts because it uses locations to provide information on Market Maker actions.  Locations on a map don’t change.

I say … WOW!  If we choose, we can do some homework called ‘back testing (looking left).’ We can invoke ‘hindsight is 20/20’ and look back at prior Market Maker business cycles of  accumulation, manipulation and profit release using SMP’s location tools (boxes, dots, average price, best price, liquidity lines, grid lines).  We can learn to read Market Maker maps that will help us find the gold.

So, let’s see … more choices in our trading, a map to help us navigate the Market Maker landscape, and the ability to personally speed up our learning process.  The ‘long and short of it’ is clear—the school’s getting better at what we teach so that our students get better at trading.  This is a win-win outcome.

Ira Barnes

ira.barnes@fx365i.com