the empty can rattles the most

New traders and some "experienced" traders alike remind me of an old Metallica song.  "The empty can rattles the most".  If you don't know that one, then you may have heard the saying "the squeaky wheel gets the most grease" or "all bark and no bite".

Just the other day I encountered a scenario of missing a TP by half a pip.  I laughed because this used to happen to me all the time and I have been using Phantom Auto TP and SL's (undetectable by brokers) but on that day I happened to try a new strategy and used a manual TP and SL.  

 

So I posted a picture on my facebook and instagram, thinking this would draw some LOLs and ROFLMAOs but instead just got newbie trader responses, words of "wisdom", and the like.  That's the thing about Forex.  Not many people will share your mindset and a lot of people just rattle a lot because they are new to trading or think they know it all. 

 

That is why I stopped frequenting forums and bothering to share or exchange Forex strategies, it's difficult finding (successful) traders with a similar mind set.  I also took a break from coaching Forex because it's just painful when newbies always think they know it all when they should be paying attention.

 

Alot of (newbie) traders...

say their trading is going great... but they aren't profitable yet

want a system... but aren't prepared to follow a system

want to make pips... but count dollars

want financial freedom...  but talk about money non stop

want to make money... without spending any time, money, or effort

Key Performance Indicators

If you have ever run a business you will know KPIs are where it's at.

Key Performance Indicators (KPI) are must have statistics you need to get a true view into your business's profitability.  You can run a seemingly successful business, produce lots of sales, always have line ups at your till, and sell out BUT if you're not profitable then what is it all good for?

Same goes for Forex.  You need to do an inventory of your weekly, monthly, quarterly, and yearly profits, number of positive trades, negative trades, consecutive wins/losses, average drawdown, and put your trading performance in the hot seat.   You can make all the great trades you want if just one or two trades wipe out your account.

It's about PIPs and KPIs, not dollars!

Don't get stuck on the almighty dollar.  That's just a newbie mistake.  Everyone's chasing the holy grail and making x amount of dollars every month and they forget about what matters.  Pips.  If you aren't making pips consistently then you won't be profitable in the long run.  Sure, it's not exciting to trade with 0.01 or even 0.1 lots but that's not the point.  If you're not making profits at 0.01 lots then you aren't making profits with 1.0 and you just saved yourself a bundle.

When you are consistently making pips, then only then can you scale your lots.  Slowly increase your lot size, week after week.  And when you are hitting a losing streak, you go back to a small lot size and figure out your mistake or what changes you need in your strategy.

It takes discipline.  Otherwise you're just gambling and beginner's luck always runs out.

Cabin Fever

How do you like my new office here in Vienna Austria?

 

This is one of the best tips I have gotten here in Europe.  Visit a library, there are plenty of desks with power plugs and free internet.  I totally forgot how libraries here have "Lesesaals" (Reading Halls) that are used by students to get away somewhere to study in peace and quiet.   They are free to boot.

I used to be able to trade from home, I remember spending many mornings in Vancouver in my pj's trading the US Market from about 6am to 10am and then chatting with traders till the Asian open around 4pm where I would take a break.

It was fun at first but soon I started feeling drained, bored, and had signs of cabin fever.  Still do.  I go stir-crazy in the same place for too long.  I also like public places or offices as it forces me to put my head down and work, no distractions and interruptions.

Sometimes all you need is a change of scenery to get a new outlook on life.   Same goes for trading.  Change your currency, try a different chart template, and look for technical patterns that you can repeat. 

 

Trading Foundation

Lately I have been meeting a lot of people interested in taking my trading course and they all pretty much want to take a course but are afraid to take it, aren't comfortable taking it, or don't have the money to invest in their education.   And of course the fear of all the scams out there, all the get rich quick schemes.  Guess what?

I guarantee you will NOT get rich overnight from Forexbut with some hard work and the right foundation you can live comfortably

You see I am selling everything here in Phuket Thailand and plan n traveling, after all I'm the traveling day trader ;)   I just find that a life on the road, without commitment, with freedom, on a permanent vacation is the way to go.   After all YOLO and there is so much to see and do in this world.

Almost everyone I've met through selling my household items, gadgets, and sports equipment, I ended up talking to for over half an hour about trading and my lifestyle.   Now that I'm moving I'm meeting like minded people and almost wish I stayed longer.  Putting my trading mind to work I analyzed and deduced that this is no coincidence, for one I'm meeting like minded people because they are buying stuff from me that I also enjoyed and have an interest in, and secondly because they are mostly foreigners like me here in the land of smile.  I'm likely projecting a go happy lucky attitude and more open to striking up a conversation because I feel free as a bird.

I remember the first training course I took was US$999 but it was a client of mine and he comp'd it.  So sure I took it because it was free but I would have gladly paid that money because I'm a big believer in education.  College and University fees are much more and if I'm going to take a certification course for management consulting it's in the thousands. 

Sure it's a lot of money, but is it? 
Can you afford not to invest in your education?

The analogy I like to use is that of a golfer.  There are 3 types of golfers:

1.  The one taking lessons from a Pro
2.  The one trying it on their own
3.  The one trying it on their own and eventually turning to a Pro.

Which one do you think does best?  and which one do you think needs to have all their bad habits retrained which takes even longer and will cost you more time money and effort in the long run.

If you're serious about trading, or anything else in life that makes you money, you need to invest in yourself and your education.  It takes 10 years to become an overnight success, and you can get a headstart by taking a course from a professional coach.  Or don't.  But don't act surprised if you loose 3 times the money you would have invested in a coach and end up dreaming about Forex while working 9 to 5.

Consistency

What sets successful traders apart from the rest?  There will be good times and bad times.  That's life.  You might not see the bad side because you don't realize it or there is more good than bad.  Or you are over-confident, or delirious.  Like a lot of newbie traders that talk about how easy Forex is and how they are using this "awesome" indicator.  Then they tell you they haven't been profitable.

 

Consistency is the differentiator.  Anyone can have a positive trade, but can you consistently produce profits? 

 

The challenge for most traders is that they want to make big money and are chasing the big fish, ignoring the schools of small fish around them.   That translates into some happy days with a big ass BBQ and all your friends over, bragging about your catch, and many dull empty netted days of stories of how the fish got away.  And excuses why the big fish (the big trade) got away. 

 

People that are successful don't blame outside circumstances,  success comes from within.

 

We can't control circumstances or how the market moves but we can control how we respond to it.  Without emotion.  No matter what you do in life, you have to master you emotions.  Fear and greed get you every time.

 

Trading is a Process

 

Where are you today, where do you want to go, and how are you going to get there.

No shortcut. Follow your process. Do what you have to do.

Some people journal, I recommend it, but I don't do it. I do look over my trades, replay them, the losses and the winners, then I look for the consistent profit.

Trade with a small lot size until you make consistent profits and slowly increase your lot size. That's consistency.  

 

No matter what your skill set or bank roll.  You need build a foundation and realize no matter how much you think you know, you really don't.  You need to experiment, try different trades, have a good preparation and review process.  No matter what your trading style is, consistency is the only way to get you positive results.  Add passion, commitment, perseverance, and you have a winning mindset.  

 

Markets Change, Your Consistency Should Not

 

Strategies come and go.  Traders that adapt consistently are the ones with the edge.  There are no strategies that work for life.  That's a big mindset shift for most newbies who believe every new strategy they hear or read about works every time, dismissing all the bad setups that are downright losers.  You are beyond lucky if your strategy works for a year or two.  Don't take it personally when there are signs of your strategy underperforming.  Consistently review the market, validate existing, and search for new patterns.  You have to be pro-active.   It's part of the process.  And you better be consistent ;)