Saturday 29 November 2014

The Market is Never Wrong

Fear and Greed are the two emotions that have been a detriment to mankind.   It is written about again and again.  Yet it still exists.  And even if you control it today, it will lurk it's ugly head again perhaps tomorrow, like those pesky ants that just keep on popping up.  Mosquitos that never seem to stop breeding.

Fear and Greed are alive and well and producing spawn time and time again.   All you can do is keep your emotions in check.  Fight the temptation.  Like on a Friday when your Forex Account has a big fat positive balance.  And you have this urge to trade again.  Out of fear that you will miss out.  Out of greed because you want more.  And out of ego because you have been "right" so many times already this week.

Don't do it.   Just stay away.  Once you go negative then Fear will feed on you.   It can mess with your psychology.  Create doubt.  The fear will grow.  Your natural defense mechanism will kick in and you will want to fight the good fight.  You're right. The market is wrong.  Guess what.

The Market is NEVER Wrong!

Do yourself a favor and just sit out some trades.  It's better to be right and watch then to enter and be wrong.   Already in a bad trade?  Be honest with yourself.  Suck it up.  It's better to stop out now then to weather a loss 5 or 10 times of your current loss.   Do your trend analysis.  Analyze just how bad the situation is.  Go to a smaller time frame and look for exit and entry points.  Maybe stop out and reverse your trade.  Or just wait until the next entry point.    Just know that the market is right. You are wrong.  And if you're in the plus that means like the force, "The Market is With You".
 


Thursday 27 November 2014

Air Forex

There are two types of people.  Leaders and Followers.  Pilots and Passengers.

Sure there is an argument to say that some people "switch" between these roles.  Typically it is the "leaders" that do so...

The point being is that if you are trading the Forex Market you need to be the Pilot and take charge.  If you are reading this Maria, yes I'm talking about you, and kudos for doing your homework!

Maria is one of my students. A pilot from Southern Spain.  Maria has had some struggles doing her homework and following the system that she was taught.   But I am happy to say the last couple months she has been performing well.  In her mind not well enough but that I guess is human greed.  You see when she is successful and makes pips, she looks at the dollar value and says it's not enough.  In the past she took more trades than she should and made impulse trades, and then lost a lot of pips and a lot of dollars.

Maria if you are reading this, your challenge has always been your willingness to take the driver seat.  You know as a pilot you can't expect to do auto-pilot all your work and if you are going to fly a plane, you better not make mistakes. And if you do, then you quickly correct them.

You see that is the thing about Forex, YOU have to take charge.
You are the Pilot to your success.

  1. Practice, Practice, Practice!   Practice is the mother of skill!
  2. Create a Trading Plan
  3. Follow Your Trading Plan
  4. If your System is not profitable then fix it
  5. If you want more profits then improve your system
    OR find another system to add to your Trading Plan
  6. Trend Analysis.  Do It!
  7. Review Your Trades
  8. Learn from Your Trades.  Study them.
  9. Review Your System.  Look for ways to fine tune it.
  10. There is no Auto-Pilot.  No Co-Pilot.   It's You.  Take Charge!

Sunday 23 November 2014

Rice Pudding

I remember as a kid growing up Friday's were always special.  My elementary school in Vienna Austria would have something sweet for lunch.   Rice Pudding was my favorite.  I still haven't found anything like it.  It was thick, creamy, had clumps of goodness and freshly shaved Milka chocolate on top.  I lived for Friday's.

These days I live for Sunday's.  Because that is my "Free Day" and I can eat whatever I want.  Monday to Saturday I stick to very healthy organic home made foods.   So when it comes to cooking, healthy or not, I find myself either buying too many groceries or missing a couple ingredients to perfect that dish I've been looking forward to. 

I have been giving that a lot of food today and that had me thinking back to my childhood and that Rice Pudding that I can't get out of my head.   And I also remembered having a set menu at school.   Friday's were always our sweet days.   Other days were less exciting for me but nonetheless the routine was there.  So I have now adapted it to my cooking at home.   I have my google calendar filled in with what I will cook, thereby making my shopping easy. 

You might think it's boring, but it's actually exciting because I look forward to my meals and I can plan ahead and get all the ingredients I need.

In other words I have streamlined my cooking routine, and made it fun.

What does this have to do with Trading the Forex Market?

A few things.  First off you need to establish a routine.  You need to make that routine enjoyable and learn to love it.  You need to plan ahead.  And you need to give yourself something to look forward to, like Rice Pudding, or perhaps a nice meal out.  A beer.  Whatever gets you excited.

You need to review your calendar.  Set alarms if you have to, to remind you.  For example for FOMC, NFP, ECB, etc.  I use an Android App for that.   Sometimes as I'm trading or doing whatever it is that's on my agenda, I want to ensure I don't forget about an upcoming news event.

I also like to have a routine that gets me into trading on Monday and gets me to slow down on Friday.   Tuesday, Wednesday, Thursday are my prime trading days.

And as for all those other todos and things you have on the go?  Do yourself a favor and start planning for those too.  An organized person makes a great trader.  When your personal life is in order then trading becomes a breeze because you can focus on it.  Like a professional athlete that needs to be ready for the big match. No distractions.  Focused. In the zone.   His sh!t in order and ready to rock.

Get organized and enjoy the week ahead!

Thursday 20 November 2014

Forex for a Good Cause

My mom's birthday is coming up. She passed away a few months ago and it's a sad time of the year.  She loved animals so when I saw this ad on Facebook I quickly signed up and donated for this good cause. "Soi Dogs".  I will also donate 100% of my Forex Trading Audit to this cause for the next year.

 



About Soi Dogs - Stop Dog Meat Trade

The dog meat trade in Southeast Asia is the most disgusting form of cruelty that humans inflict on animals.  Yet most Thai people don’t even know it is going on in their beautiful country.  And if they did, they would help stop it.

I know this first hand because many of my friends weren't aware of the dog meat trade in Thailand. 

Will you please buy a billboard to tell them about it, and recruit them in the global campaign to shut down this horrific trade?

Better yet, Sign Up to my Forex Trading Audit and I will buy 5 Billboards in your name!



Translation
To report dog or cat snatcher trucks, areas where dogs are collected or slaughterhouses call the Hotline 088-302-7556 open 24 hours a day.
You can stop the illegal dog and cat meat trade!
Reward of 5,000 baht for information leading to an arrest.
When making a report please:
  1. If possible photograph the vehicle, including the registration plates.
  2. Provide vehicle registration number, type of vehicle (brand/model), location and estimated number of dogs or cats involved.
Eating or killing cats and dogs is ILLEGAL!


More information about the campaign:
https://savedogs.soidog.org/billboards

The majority of Thai people would be shocked and appalled if they knew what was happing in their beautiful country.

But they don’t know because dog meat traders usually do their deadly business in secret. And they’re getting better and better at hiding it.

That’s why these billboards are so important. They not only alert local people to the horrible trade, they tell them what to look out for, and what to do if they see suspicious activity.

The billboards also advertise a 5,000 Thai Baht reward for information leading to arrests.
It’s a really practical, effective and low-cost way to squeeze dog meat traders out of business.

With your help, we can buy more billboards to go up on major trade routes through Thailand, and in the towns where dogs are often stolen from.

It doesn’t cost a lot by our standards to buy a billboard, but this strategy can make a big impact – in the short term by leading to arrests, and in the long term by educating tens of thousands of people.
Ultimately, the biggest impact is on the dogs that will be spared from disgusting and unnecessary cruelty.
 
Take your care for animals to the streets of Thailand.


Tuesday 18 November 2014

The Trading Game

In some ways Trading is a Game, with serious consequences that is.  Nonetheless there are times you need to treat the Market like a game.   For example when you're trying to figure out how to win.  You need to put on your thinking hat, do lots and lots of research, for fundamental traders that means studying the economic news calendar and past releases; for technical traders that means chart analysis with their favorite indicators.   The only way to win the game is to figure out your strategy.  You can copy someone else, but that will only get you so far.

The Serious Part of the "Game" is the money part.  If you've got money to blow and you don't care about seeing it ever again then great.   If however you are taking it serious and are wanting to make money then that changes everything.  Trading can quickly turn from Game to Nightmare.   Money has a funny way of influencing you.   Aside from relationships I would say money is likely the cause for severe stress. 

Money isn't everything but it sure helps a lot.  When you are faced with living pay cheque to pay cheque, or worse, you don't have a pay cheque, then your "world" can quickly change.  Psychology is fascinating.  One day you have full on confidence and then... BOOM...  your life can be in turmoil and your confidence changes as the world around you changes. Yet all that's changes is perhaps your bank account balance, your employment status, or service to debt ratio.  And the thing is you will have (just as some of you are now) said to yourself "That won't happen to me. And if it does, I will bounce back...."    The reality is, there are things outside of your control that can change everything you know.  In other words, the game will suddenly become very very real. So keep your risk and exposure in check and practice practice practice.

Trading is a Game.  Sure.  It can be.  Life can be a game.  What matters is that you come out ahead and figure out just how to beat the odds and win with minimal risk and exposure.

Thursday 13 November 2014

NO Water Cooler Talk

It's 1:30am and I'm beating myself up because I've done it once again....   I chatted with a good friend who happens to trade Forex too...  and everytime I do it's the same old thing.... 

We compare analysis.... he wants to go long... I see it as a short opportunity and before you know it I'm going long because in the back of my mind I keep hearing my friend tell me to go long and how he's aiming to make a couple hundred pips....      maybe he does... maybe he doesn't...

The thing is...  When you're trading it's somewhat lonely and you feel like sharing what you're doing. Talking about your successes.  Comparing Notes.  You miss that "water cooler talk".

You're better off WITHOUT the water cooler talk!

What I have found time and time again, that sharing trades with other traders is the worst thing to do.   The good traders usually keep to themselves.  The ones that talk a lot are like the empty can that rattles the most.

Don't get me wrong, my friend can make money at the market.  BUT his style is totally different.  I don't like to wait for hours or days for my setup to go in the right direction with a huge draw down. 

The other issue I have is that my friend will always pry on my trades.  "Got any trades open?"  "How many lots?" "Where did you enter?"   I remember visiting him in my home city of Vienna Austria and I happened to be in a bad USDJPY trade.  Analyzing the market however I knew it would just take some time to come around.  So while I was busy exploring the city for a few days all he would do is tell me how far in the minus I am... and that it will come around again.  Gee Thanks!  Despite me telling him not to worry about it and not to update me.....  Painful... 3 days.... I finally closed in the plus and was able to get BOTH monkeys of my back.

You're better off keeping to yourself!

The thing is when it comes to trading you need to just keep to yourself.  Do It Your Way!

Well my rant is over and (hopefully) I have learnt my lesson.

Ultimately it's my fault for letting it come to this.  I should have just put my foot down and not gotten into a trading conversation.  It's best to just put the instant messages on ignore and change the subject, talk about something else, and after the air has cleared tell your trading friends that you trade better on your own, completely focused on trading.

Monday 10 November 2014

Manic Mondays

For most people, Monday's are Manic.   It's "back to the grind" for many.  Off to work.  The weekend (and all the fun) is over.  Time to be serious again. Meetings. Things To Do.  All those "I'll do it later" items catching up with you.

Even though I don't have a "J.O.B."  (J.ust O.ver B.roke) anymore, I can still relate.  In fact for quite a while I felt just as manic.  With all that free time, suddenly having to trade again, and all these things I had to do.... like get passport pictures done, make travel plans, shop for a new badminton racket.  Different problems.  Good problems.  None the less...  it used to stress me out a little.

The best way to tackle Manic Monday's as a Forex Trader is to ease into the market.  Ease into trading and...

Plan for the Week Ahead

I have written about this before.  Here is a different spin on it....
  1. Use Google Calendar to Plan Out Your Week.  What does Monday, Tuesday, Wednesday, Thursday, Friday look like....  what are the plans for the weekend.  What preparations do you have to make and when.  
    1. Your to-do's
    2. Your commitments
    3. Important Economic Events
    4. You Time!!  
  2. Don't plan to trade on Mondays.   It's better to trade because you have the time than it is to feel beat up because you couldn't get to it.  Besides Monday's can be the direction setter for the week ahead.
  3. Start Small.  I started scalping again and I ease into it with a small lot size and then start doubling up and before you know it I'm using a lot or two.   It's like a warm-up at the gym.
  4. Be Realistic.  I have written about S.M.A.R.T. goals before.    The biggest problem is that people bite off more than they can chew.   Give yourself lots of wiggle room.   If you can scratch all those to-do's off your list quicker, great.  No need to overcommit and then feel bad about it.  Pace yourself.  Bite-Size-Junks!
It's 1pm Bangkok time and I only glimpsed at the charts.  Didn't see anything interested.  Moved on.  Did yoga in the morning.  Some laundry.  Studied Thai.   Talked to a couple Thai friends.  Lunch is cooking in my rice cooker.  And I'm about to check on the Yogurt I'm making and get some water.   I'll likely start analyzing more in depth in an hour or so.  Maybe I won't get around to it till Europe opens at 3pm Bangkok time.  Maybe I won't get to it until the US Open at 8pm.    It's okay.  I'm getting things done.

That's what it's all about.  Getting things done.  Do Now. Do Later. or Forget About It.

Enjoy your week ahead!

Friday 7 November 2014

Stretch Much?

If you do any kind of sports you likely stretch and warm up.  If you don't you should.  And if you're trading the Forex Market then you should consider doing the same.

As I mentioned the other day I started scalping again.  First with 0.1 lots, then 0.2, then 0.5, then 1 lot.   That used to be my routine when scalping.

Warm up with a small lot size. Get a feel for the market.  If I'm wrong (ie. something hurts while you're stretching) then you take it easy.  And on days where the warm up isn't feeling good all together then I don't play.  In other words if I flunk out with a small lot size, I stay there. Flunk out again then call it a day.  If I however get into the swing of things then I start increasing my lots size.

Give it a try.  In your demo account of course! :)

Thursday 6 November 2014

44 Day Thai Alphabet Song Challenge


Every day study, remember, and practice a new Thai consonant, its pronunciation, and its Alphabet Song Line.  Before you know it you'll remember the Alphabet and Alphabet Song.


What does this have to do with trading?  You know those times you are just waiting for a setup and you want to keep busy? This is what I do...  I practice Thai.






  • Use Google Translate to listen to the sentence or use the video above.
  • Colors
    • Low Class Consonants
    • Mid Class Consonants
    • High Class Consonants

44 Day Thai Alphabet Song Challenge

Day 1
ก เอ๋ย ก ไก่

A chicken.
Day 2
ข ไข่ ใน เล้า
The eggs are in the henhouse.
Day 3
ฃ ขวด ของ เรา
The bottles belong to us.
Day 4
ค ควาย เข้า นา
The buffalo goes to the field.
Day 5
ฅ ฅน ขึงขัง
A serious person.

Day 6
ฆ ระฆัง ข้าง ฝา
A bell beside a wall.
Day 7
ง งู ใจ กล้า
A brave snake.
Day 8
จ จาน ใช้ ดี
A good plate to use.
Day 9
ฉ ฉิ่ง ตี ดัง
The handbells ring loud.
Day 10
ช ช้าง วิ่ง หนี
The elephant runs away.
Day 11
ซ โซ่ ล่าม ที
The chain ties.
Day 12
ฌ กะ เฌอ คู่ กัน
A pair of trees.
Day 13
ญ หญิง โส ภา
A pretty girl.
Day 14
ฎ ชะฎา สวม พลัน
Put on the dancer’s crown.
Day 15
ฏ ปะ ฏัก หุน หัน
The rapid spear
Day 16
ฐ ฐาน เข้า มา รอง
The base suppports.
Day 17
ฑ มณ โฑ หน้า ขาว
Mrs. Montho has a white face.
Day 18
ฒ ผู้ เฒ่า เดิน ย่อง
The old person walks hunched over.
Day 19
ณ เณร ไม่ มอง
The novice does not look.
Day 20
ด เด็ก ต้อง นิมนต์
The children must invite.
Day 21
ต เต่า หลัง ตุง
The turtle has a humped back.
Day 22
ถ ถุง แบก ขน
The bag carries.
Day 23
ท หทาร อด ทน
The soldier is patient.
Day 24
ธ ธง คน นิยม
The people’s favourite flag.
Day 25
น หนู ขวัก ไขว่
The rats run around.
Day 26
บ ใบ ไม ้ทับ ถม
The leaves pile on each other.
Day 27
ป ปลา ตา กลม
The fish has round eyes
Day 28
ผ ผึ้ง ทำ รัง
The bees make their hive.
Day 29
ฝ ฝา ทน ทาน
The lid is strong.
Day 30
พ พาน วาง ตั้ง
The tray is placed.
Day 31
ฟ ฟัน สะอาด จัง
The teeth are very clean.

Day 32
ภ สำเภา กาง ใบ
The junk spreads its sails
Day 33
ม ม้า คึก คัก
The horse chomps at the bit.
Day 34
ย ยัก ษ์เขี้ยว ใหญ่
The giant has big fangs.
Day 35
ร เรือ พาย ไป
The boat rows past.
Day 36
ล ลิง ไต่ ราว
The monkey climbs the railing.
Day 37
ว แหวน ลง ยา
The ring is in lacquer.
Day 38
ศ ศาลา เงียบ เหงา
The pavilion is lonely and quiet.
Day 39
ษ ฤา ษี หนวด ยาว
The forest hermit has a long mustache.
Day 40
ส เเสือ ดาว คะ นอง
A tiger leopard.
Day 41
ห หีบ ใส่ ผ้า
A trunk of clothes.
Day 42
ฬ จุฬา ท่า ผยอง
The chula kite poised to attack.
Day 43
อ อ่าง เนือง นอง
A full basin.
Day 44
ฮ นกฮูก ตา โต
The owl has big eyes.



ก เอ๋ย ก ไก่ ข ไข่ ใน เล้า ฃ ขวด ของ เรา ค ควาย เข้า นา ฅ ฅน ขึงขัง ฆ ระฆัง ข้าง ฝา ง งู ใจ กล้า จ จาน ใช้ ดี ฉ ฉิ่ง ตี ดัง ช ช้าง วิ่ง หนี ซ โซ่ ล่าม ที ฌ กะ เฌอ คู่ กัน ญ หญิง โส ภา ฎ ชะฎา สวม พลัน ฏ ปะ ฏัก หุน หัน ฐ ฐาน เข้า มา รอง ฑ มน โฑ หน้า ขาว ฒ ผู้ เฒ่า เดิน ย่อง ณ เณร ไม่ มอง ด เด็ก ต้อง นิมนต์ ต เต่า หลัง ตุง ถ ถุง แบก ขน ท หทาร อด ทน ธ ธง คน นิยม น หนู ขวัก ไขว่ บ ใบ ไม ทับ ถม ป ปลา ตา กลม ผ ผึ้ง ทำ รัง ฝ ฝา ทน ทาน พ พาน วาง ตั้ง ฟ ฟัน สะอาด จัง ภ สำเภา กาง ใบ ม ม้า คึก คัก ย ยัก ษ์เขี้ยว ใหญ่ ร เรือ พาย ไป ล ลิง ไต่ ราว ว แหวน ลง ยา ศ ศาลา เงียบ เหงา ษ ฤา ษี หนวด ยาว ส เสือ ดาว คะ นอง ห หีบ ใส่ ผ้า ฬ จุฬา ท่า ผยอง อ อ่าง เนือง นอง ฮ นกฮูก ตา โต


Gor er-ee gor gài. Kor kài nai láo. Kor kuat kŏng rao. Kor kwaai kâo naa. Kor kon kĕung kăng. Kor rá-kang kâang făa. Nor ngoo jai glâa. Jor jaan chái dee. Chor chìng dtee dang. Chor cháang wîng nĕe. Sor sôh lâam tee. Chor gà cher kôo gan. Yor yĭng soh paa. Dor chá-daa sŭam plan. Dtor bpà tak hŏon hăn. Thor tăan kâo maa rong. Thor mon-tho náa kăao. Thor pôo tâo dern yông. Nor nen mâi mong. Dor dèk dtông ni-mon. Dtor dtào lăng dtoong. Tor tŏong bàek kŏn. Tor ta-haan òt ton. Tor tong kon ní-yom. Nor nŏo kwuk kwài. Bor bai máai táp tŏm. Bor bplaa dtaa glom. Por peung tam rang. For făa ton taan. Por paan waang dtâng. For fan sà-àat jang. Por săm-pao gaang bai. Mor máa kéuk-kuk. Yor yák kîeow yài. Ror reua paai bpai. Lor ling dtài raao. Wor wăen long yaa. Sor săa-laa ngîap ngăo. Sor reu see nùat yaao. Sor sĕua daao ká nong. Hor hèep sài pâa. Lor jòo-laa tâa pà-yŏng. Or àang neuang nong. Hor nók hôok dtaa dtoh.

Wednesday 5 November 2014

There Are All Types

Today I did something I haven't done in a long time...  I scalped the EURUSD, 11 trades in about 2 hours...  I used the minute chart and went in the direction of the major trend.  EURUSD has been a short for a while.

It's been a few years since I scalped.   I remember when I first started trading it brought me great joy.  There is an argument to say that's the kind of person I am.  Get in, get out. Rest easy.   That's how I like to exercise, that's how I like to shop, and that's how I like to date. hehe

There are all types of Traders...
So the question is, what kind of Trader are you?

Scalper
  • Typically in and out within minutes or even seconds.
  • Never leaves a position open overnight.
  • Goes for as little as a pip.  Typically not more than 10 pips.
  • Trades the minute and 5 minute chart.
  • Given the small Take Profit, currency pairs with the best spreads are favored. 
  • News times are typically avoided.

Day Trader
  • Stays in the trade only for the day.  Closes (even at a loss) at the end of the day.
  • Trades the 15 minute, 30 minute, and 1 hour chart.
  • Take Profit is between 10 and 50 pips.
  • Some Day Traders love trading the news, the majority will wait till after the news release and volatility has settled.
Swing Traders
  • Hold Trades beyond a day but never beyond a week.
  • Trades the 1 hour and 4 hour charts.
  • Take Profit is between 50 and 200 pips.
  • Wait for several confirmation signals.  Requires a lot of patience!
  • Extremely technical traders.
  • News is considered noise.
Position Traders
  • Trades can last weeks, months or even a year.
  • Trades the monthly, weekly, and daily charts.
  • Well versed in the financial market and it's long term direction.
  • Not concerned with short or mid term market conditions.
  • Requires some serious balls in my opinion.   Emotions can run wild and patience is a virtue.
Robot Traders
  • Technical Traders that have programmed their software platform to trade automatically for them.
  • Backtest their trading plan and adjusts their code on a regular interval (monthly at a minimum).
  • Hands-free trading while the computer trades for them.
  • Somewhat dangerous as the Robot is only as good as it has been programmed to behave.
  • Often successful for a short period of time before suffering major drawbacks.
  • Many accounts have been wiped out for these "Holy Grails".

What kind of trader are you?  Well that might not be an easy answer.  If you have done any type of personality test then you might know that the results change over time.  As you grow, your personality adapts.  As you trade, your trading style adapts.

I used to Scalp all the time.  Then I started day trading, and swing trading, and then meddling between all 3 styles.   While I feel comfortable as a Day Trader, I'm starting to feel like Scalping again for a period of time.

As the market changes, your trading style may change.  Same goes for your lifestyle.  

It's like golf really.   As you get better with some clubs, you end up not using the others as much.  But you've had lots of practice with them.   As the course changes and your four-some changes, you adapt.

If you haven't done so already, try each approach, on a demo account of course, and see which one you are happy with the most.

Monday 3 November 2014

30 Day Forex Challenge

You've seen them before... The 30 Day Challenge

30 Day Yoga Challenge
30 Day Gym Challenge
30 Day Abs Challenge
...and so on

30 Day Challenge

These challenges are great for beginners and those looking to get back into the game.  If you already have abs of steel then pick another body part...  but no matter what your ability to pull off just 5 crunches on day 1, it's not about the amount, but the muscle memory, on day 2 you will find that the exercises from day 1 have given you more energy and a new zest for exercise.  Doing is believing!

So how can you apply the concept to Forex?   READ ON
Get Ready for...

The 30 Day Forex Challenge



Notes: 
  • Use a DEMO Account
  • Feel free to adjust the pips as you see fit
  • You are allowed to skip volatile heavy news days for example FOMC, ECB, NFP
  • Don't force yourself to trade.  Look for a setup.  Don't see one?  Check again later.
  • You are not allowed to skip chart analysis.  Every day your goal is to find a setup.
    If and only if you have done your best to find a setup and have not found one, meaning the risk is too great then you are allowed to skip that day.
  • Bad Trade?  No Problem.  You tried.  Skip that Day and continue with the next.
  • Can't always be there when a trade takes place?  Place an entry order!
Remember, it's not about making tons of pips.  It's about making pips, period.  It's about creating a habit, a routine, similar to "muscle memory",  you are training your brain to make trades and feel good from small successes.  Before you know it you'll have big successes!

Start on a Monday (Day 1)

Day 1      1 Pip
Day 2      2 Pips
Day 3      3 Pips
Day 4      4 Pips
Day 5      5 Pips
Day 6      Rest
Day 7      Rest

Day 8      6 Pips
Day 9      7 Pips
Day 10    8 Pips
Day 11    9 Pips
Day 12    10 Pips
Day 13    Rest
Day 14    Rest

Day 15    Your choice.  11 Pips or 2 Trades Totaling 11 Pips
Day 16    Your choice.  12 Pips or 2 Trades Totaling 12 Pips
Day 17    Your choice.  13 Pips or 2 Trades Totaling 13 Pips
Day 18    Your choice.  14 Pips or 2 Trades Totaling 14 Pips
Day 19    Your choice.  15 Pips or 2 Trades Totaling 15 Pips
Day 20    Rest
Day 21    Rest

Day 22    Your choice.  16 Pips or 2 Trades Totaling 16 Pips
Day 23    Your choice.  17 Pips or 2 Trades Totaling 17 Pips
Day 24    Your choice.  18 Pips or 2 Trades Totaling 18 Pips
Day 25    Your choice.  19 Pips or 2 Trades Totaling 19 Pips
Day 26    Your choice.  20 Pips or 2 Trades Totaling 20 Pips
Day 27    Rest
Day 28    Rest

Day 29    Your choice.  21 Pips or 2 Trades Totaling 21 Pips
Day 30    Your choice.  22 Pips or 2 Trades Totaling 22 Pips

It doesn't look like a lot of pips at first but over time they accumulate.  At the end you have a total of 210 pips!

Takes notes and make observations on your losses and successes.
Revisit your trading plan.  Review what you learned and apply it!

Sunday 2 November 2014

Take a Break

The other day I was in Singapore to get my Thai Education Visa renewed.  Going in I knew that the Singapore embassy was one of the toughest and unfriendly Thai embassies there is and getting my Thai Education Visa renewed was a coin flip.

You see after 1 year of studying Thai at a private school I was starting to get bored with my routine and it was interfering with my trading.  The only teacher that I found I could learn from had classes just around the time I like trading.  Europe Open on Tuesday and Thursday.   Sure I could trade around that but given that my learning was plateauing it made sense to focus on what was more meaningful and fun.

So when I was denied my Education Visa and got a 60 day tourist visa (extendable to 90 days), it wasn't the end of the world.  Sure it's a pain in the ass however now I am going to take a break, be a tourist for 90 days, and trade more.

You see taking a break sometimes helps you get better at something.  For me at this point it will actually help me improve my Thai langauge skills because I can practice what I learnt and learn more on my own.   I can always go back to school, find a tutor, or practice with the many beautiful Thai ladies there are here in Phuket.

What does this have to do with trading?    Simple.  Taking a break from Trading can be the best thing you can do to improve your trading.  Just like in sports or exercise you need to take a break and let your muscles rest (and grow!).  You see often we are so determined we get caught up in it, be it studying, trading, sports, etc and we tend to overdo it, while for a short time that is beneficial, in the long run it can hinder your growth.

Taking a break from trading can really help you.  Like a vacation to recharge your batteries.   Take a week or two, then slowly start just analyzing the markets.  Start looking for new strategies, review your existing ones.   Don't trade.    Put on your observer hat and just get a feel of the market.   Feel the force ;)

Soon you will be in the full swing of things and you will find that those 2 steps backward while taking a break helped you accelerate and run forward, perhaps leap forward.

Perhaps get ahold of your Forex Mentor or Coach and he can guide you to a new start.

Taking a break from Trading can be the best decsion you've ever made.  And boy is it fun trading again after a a couple weeks or months away from the market.