Is your Income keeping up with your life? So here we go. In the 40’s, 50’s, 60’s, economically, life was good for the ‘middle class.’ It was common to learn a trade that would be of value to your community, and, provided you stayed healthy and could work, this gave you some financial security. Many people also realized that if they sold their time and skill to a corporation during the advent of the union, the ‘company man,’ pensions and retirements could also create some economic certainty for them in their personal life. But alas, the world changed. Somewhere we went wrong. The masses soon became fixated on the notion that in order for things to be OK, the model of ‘success’ and ‘security’ that they were accustomed to needed to be repaired and preserved. I propose that the question that needed to be asked instead was not, ‘how can we go back to what worked?’ but ‘how can I develop a new income producing skill, one that could have an even higher level of security, flexibility & freedom?’ This is where trading FOREX enters. I can make no promises regarding the future of any economy having long-term sustainability. Anyone that is at all in ‘the know’ these days understands that ‘safe is the new risky.’ So you look at the idea of trading FOREX, and start to consider some of the factors of why this unconventional business endeavor could actually be your new SAFE. If ANY economy in the world crashes, it doesn’t matter to a FOREX trader, in fact it creates volatility and volatility creates opportunity. If there was an entire economic collapse in a country to the point where there was a true depression, no worries, the FOREX as a market is not reliant on one country the way that say the NYSE is. Worst case, you could just move to another country of your choosing and provided that they have internet and you have your software, you could open a foreign trading account and go on making money, business as usual. In fact, about the only scenario that would derail this interesting and misunderstood market, is the total collapse of the use of money at all anywhere in the world. We would have to revert to a complete world of trade and barter with no currency at all for that to happen. Or the internet would have to end. If that happens, I think its safe to say, we’ve got bigger issues. Now in our lifetimes is it likely that the economic landscape of countries as we know them presently could shift dramatically? Absolutely. Is it likely that money altogether is just going to end; along with computers and the internet? Very unlikely. So what would it mean to you in your life if you took the time to learn a new skill set that could create a new level of security? And while we’re at it, what if this skill set could compensate you geometrically so that inflation was no longer a threat to your quality of life? Is that something that would be worth the energy and effort? I say yes. Visit www.Forex365Institute.com to learn the new skill you could start earning with today!
What is passive trading?
When most people hear the word passive, they think of something that can be negative. For me, having a passive attitude in trading has been a really positive thing. Some of my best trading days and weeks have been during times when I have a passive attitude in how I enter trades. To better describe this, my thought going into a trading session with a passive attitude is “I might enter a trade, and I might not.” Some of the worst trading days for me are when I wake up thinking “Boy, I can’t wait to get into a trade and pull some pips!”
What I have found is quite fascinating, it is almost as if I take power away from the market, and the Market Makers when I trade passively. Truthfully, that is exactly what happens when you trade more passively and less emotionally. The market makers make their money by fooling retail traders into entering positions, so the more emotionally you trade, the more you become a puppet on a string. The more passively you trade, the less power and control they have over you. It’s a beautiful thing!
After I talked to Steve, and read his blog post, I started to see the bigger picture, and I started to understand what was going on with my trading. At this same time, there was a period of a couple of weeks where I was really busy. I had to travel to California for work, I had a busy schedule each day, and I was starting work at 6AM, so there was really no way for me to trade during session. I almost tried to, I even brought my laptop with me. But I decided that I would take the week off. I was pretty busy the following week also, so I went almost 2 weeks without trading. This turned out to be a really good thing for me.
Taking time off from trading, accompanied with new ideas and a fresh mindset really helped me to turn things around. Does this mean that I’m pulling hundreds of pips a week? Nope. In fact I think that I’m at 18 pips for the week so far, but I’m ok with that. Slow and steady wins the race. The tortoise wins, every time.
I had always heard Rob G. say that whenever he loses two trades in a row, he takes the rest of the week off (I’m pretty sure he said that). I always thought “Why would he take the rest of the week off? Can’t he just start fresh the next day?” I think I’ve learned a good lesson here. Time off can be a powerful thing. If you find yourself spun out in your trading, take a few days or a week off. I’d bet that you come back with a new perspective. Taking a few steps back is a great way to get a better view of whats really happening.
My recent trades
Since this transition I have been doing much better. Once again, I’m not rich, nor am I slaying hundreds of pips but I’m in control and my trading is relaxed. This is such a stark contrast to the cortisol-fueled, greedy, upset, hunched over, anxious, money losing trader that I was a few weeks ago, “gargoyled” over my laptop, hoping and wishing that the market makers would let me have just one little piece of profit. Recently my trading has been much more enjoyable. I am managing my account by keeping a reasonable lot size. I am calm. I sleep in until 5:30 if I want to. I realize that I don’t have to trade. I no longer have to fight myself and make up all sorts of rules because I see the big picture.
My intention in saying all of this is not to boast or sound like I have it all figured out, but to just point out that we often make things a lot harder than they need to be. Sometimes all it takes is a slight change in attitude, or a simple shift in how we view trading to turn things around. I had taken something fun and made it stressful by focusing in the wrong things in my trading, then adding rules and more stress to correct it. That all went away (for now) when I started focusing on taking things slow and keeping things simple.
I encourage anyone who is having a hard time to remember that you have plenty of time to learn to trade (that’s another thing Steve said). Take it easy. It can be challenging but it should also be fun. If you find yourself stressed out, chill. Take a break. (Side note: taking a break helped me a lot, but I think that it is important to note that it wouldn’t have been such a powerful time if it wasn’t for the fact that I got some good advice). With that being said, ask someone for help! Get some advice. Participate and ask questions on the webinar. Read books. Use all of the tools at your disposal. Don’t be greedy. Keep the dangers of the market in perspective. Keep it simple and relaxed. The reason we learn to trade is to take stress out of life, not to add it.
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….
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:
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.
#5) You will probably ask yourself all of these questions…
#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%…