(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.
“If someone offers you an amazing opportunity and you’re not sure you can do it, say yes – then learn how to do it later.” -Richard Branson
As many of you know, there are some groundbreaking changes taking place at the institute this month. Most noteworthy of all is that the institute will now be using Smart Money Profile (SMP) as the school’s primary platform for instruction.
Before I share my list of concepts that Wealth Smart students need to know about the SMP platform, I would like to take a moment to celebrate Wade and Shane Guth for their amazing work developing and fine tuning the revolutionary SMP software. Additionally, due to Shane’s skillful and dedicated teachings, every SMP trader I know absolutely loves the platform. Kudos gentlemen!
I have been an SMP student for three months. With that in mind, here are the things you’ll need to know as a new student making the jump into the SMP program.
When a person first opens the SMP software to trade it for the first time, it may be a little intimidating. The multi-colored candles, lines, dots, boxes and the ever fluctuating rate indicator can easily create a sensory overload for newcomers.
Although the task at hand may appear difficult, once you understand the Market Makers business model, you will understand the genius and simplicity of the SMP software. By helping you discern what the Market Makers are doing, the SMP platform allows you to make predictive and logical assumptions about potential trading opportunities. As you learn to recognize the best trading opportunities, your win rate can soar into the 70 and 80 percent range.
From time to time, cross-traders at the institute (those that trade SMP and WealthSmart) explain that one of the greatest advantages of the SMP software is that the exit points for SMP trades are clear. The SMP platform is a map. As part of that map, the software clearly shows you points where the market may turn or possibly take a large breath. Once price approaches one of these points, it is easy to see your exit and book your profit.
Additionally, as you gain experience with the software, you will learn to finesse your entries so that you have less and less risk in your trades. Of course every trade is unique, so there is no rule that says, for example, “Keep every stop loss set at 6 pips.” However, within a relatively short amount of time, you will likely be able to keep your risk at a minimum as you enter into high probability trades. The ability to combine high probability entries with clear profit targets and low risk exits is a magical combination that can lead to long term trading success.
When you first get involved in the SMP program, you will find there is quite a bit of subjectivity to everything happening in the SMP arena. Some students may see the market preparing to go long, and others see it preparing to head in the opposite direction. No matter what you see on a particular day we encourage you to share it!
There are no guarantees in trading, but if we are able to gather our information together, we all benefit from the opportunity to make good, well-informed trading decisions.
For anyone who may be worried about making the transition from WealthSmart to SMP, fear not! You have already furnished great skills as a Wealth Smart student. Although the change may be uncomfortable at first, you will be surprised at how well you will adapt and become proficient with this truly phenomenal software.
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.
Most Traders are lured into the market by promises of gaining financial freedom quick and without effort. These traders think that they are simply going to purchase a system where all they have to do is follow the signals and they will become rich. While this is very appealing, it follows the same premise that if it looks too good to be true then it probably is.
The Reality: While you can make a great deal of money relatively quickly trading the markets, you will only do so by understanding the real business model behind the facade of the chart and trading by its rules.
Most Traders never make the turn into profitability when trading due to this common pitfall. We call it the Trader’s Prison.
The Trader’s prison shows how a trader can become caught up in a never ending cycle of system development. The main reason this happens is due to all the misinformation out there given to and accepted by new traders. They are taught that in order to succeed in the financial markets they need to develop a trading system that works for them and their personality. The trader will then develop their system within the same parameters that almost every other trader uses, price averages, general support and resistance, price patterns and supply and demand (aka over bought and over sold). They are then taught to formulate rules around their system that they are to strictly follow. They believe that this is what will create predictability and consistency in their trading.
The Reality: These traders do not understand that Smart Money purposely moves the markets within different cycles. The general terms used by retail traders to describe these markets is trending and ranging. Once the majority of traders calibrate their system to fit the current market environment Smart Money will intentionally change the market cycle so their business can operate at its maximum profitability level. This will in turn make most of all the retail trading systems lose money in the new coming market condition. This will then force these outside traders back into system development and put them into a never ending cycle that is emotionally and financially draining. Not to mention a total waste of time.
There are an overwhelmingly huge number of trader who subscribe to trading signal services designed to send you signals when you should buy or sell a given market. The traders that go down this path still fall under the 95% failure rate and for the most part never make sustainable money. Why is this?
The Reality: These traders never make it due to two reasons.
Reason 1- When you do not do your own homework on the market you are trading you lose touch with the pulse of the market and most likely will not be able to carry through the confidence needed to manage the trade into profitability and exit the trade in a repeatable and sound way.
Reason 2- The signal you are getting was probably formulated by someone who is no better at reading the market than you are and they have most likely designed the system they are trading with complete ignorance to the real business model of the market. The business model that turns the 95% chance of failure into a 95% chance of success.
Traders trade more money than their current skill is qualified to deal with. They increase their lot size when they are winning (which is ok). When they are losing they still increase their lot size to make up for past losses.
The Reality: Even if you have the money to fund a hefty trading account, you cannot buy skills. Skills are earned. Someone who is trading $100 per pip without proven consistency is a worse trader than someone who is trading $0.10 per pip that has proven consistency in their trading. The big difference is the educational cost of the person who will not put in the discipline of building or funding an account based on skill and consistency. It will potentially cost them thousands of unnecessary dollars learning that there trading account size has nothing to do with making a sustainable living trading Forex until their skill is proven.
Most people look at the trading screen as if it is them against price. The believe by incorporating different indicators and algorithms into their trading decisions it will allow them to effectively navigate the market and make huge amounts of money trading. They believe that the markets are price driven by supply and demand only and that anyone who is disciplined enough to follow a rules based system can make money in the markets.
The Reality: The markets are belief driven and there for the benefit of a very few who are versed in reading beliefs in the market. Think about it for a second. If you are a trader and are looking to enter a trade, you will not enter that trade until something happens, a belief is born in you that the trade you are entering will WIN. You will not place a trade if you think you will lose. This is true for every person trading the financial markets. 95% of retail traders make their trading decisions based on a belief created by technical indicators or fundamental reasons and 95% of them lose money. This leads to the fact the real edge in trading the market is not found in being an expert in reading technical indicators but becoming an expert in reading beliefs in the market. When you can read the beliefs behind the market you can set yourself up to profit the very same way Smart Money profits, by taking advantage of the completely predictable behavior of the 95% of traders that lose all their money.
To learn more about this type of Trading Methodology call and ask about the Pro Trader Program.