Routine

Routine.  An oxymoron really if you ask me.  Is there such a thing?  How long before routine becomes mundane or there are outside factors impacting your so called routine to change.

In the Forex world, "routine" is perhaps next to impossible.   It's like organized chaos, sober madness.  But that doesn't mean you cannot and should not try.

My "Routine"

(at least today it was)

My "Routine" doesn't really seem to be too routine if you compare it to your average 9 to 5 routine.  You know the get up in the morning, shower, dress, gulp down breakfast, get yourself a Double Double (Canadians will get it), and then rush to work only to punch in late, somehow make it to lunch, then quitting time, some drinks with friends, perhaps the gym, or a quiet night infront of the TV.

The elements are there in my routine, however they are much simpler, they involve Coffee.  Good coffee.  I even started drinking gourmet decaf at night time. Mind you I drink double espressos at night and can sleep but I figured 4 double Espressos per day is plenty and then switch to decaf somewhere throughout the day.   Coffee plays an important role in my life, perhaps because I'm from Vienna and that's where coffee was cultivated.  More on that another time.   But where I have that coffee and how is uncertain.

Fitness.  A healthy body fuels a healthy mind.  Nothing better than feeling fit and alert.  Sweating out some toxins and of course looking good.   Yoga does it for me.  Not the meditating kind but the real yoga that makes you sweat and gives you a hard work out because you use your body weight, in my case a good 84kg or about 185lbs.  It's always good to look in the mirror and see that six pack coming in.   Of course first thing in the morning before overeating.

Food.  Quality food. Regular meals.  I tend to shift between cooking at home and eating out.  I always make breakfast at home, lately it's been 5 scrambled eggs with herbs.   I love to cook but I hate to clean up and why go through that hassle when you can get yourself a really good Pad Kaprao or Pad Thai from a local restaurant for just a couple dollars.   I do pick up fruits from the local market and make my own yogurt, of course I add a raw egg or two and some vanilla extract.

News.  www.ForexFactory.com   I just check what is going on today and glance at the remainder of the week.   I also have a news indicator that alerts me of any major events.

Trend Lines.  In my books, trendlines are key to making intelligent trades.   Trendlines are perception and you will get traders arguing about the validity and rules of trendlines, just like jitter chatter, block it out and do your thing.  Right or wrong, you'll know...   In my case, more right than wrong.

Identify Opportunities.  Next I identify which currency pairs are optimal and whether there are opportunities and then set my trading platform to monitor my proprietary conditions and enter or stay out.

Monitor Trades.  If a trade is triggered then I monitor that trade, as best as possible. Albeit sometimes it's best to just set and forget and let my proprietary code manage my trade.  Other times it's best to intervene and exit out early based on the current market conditions and ongoing trend analysis, upcoming news etc.

Hobbies.  If anything you need to keep busy.   As a trader you don't have a job that keeps you busy and alert.  The clock is yours to manage.  It doesn't manage you.  In Vienna I enjoyed several 40km bike rides, walking countless kms in the inner city.  In Rawai I enjoy badminton, taking pictures, and riding around on my motorbike.

Now that's my typical "daily" routine, but then again what is daily...  Typically my week starts Sunday night when I review the upcoming week, then Monday I observe mainly and get back into the swing of things, Tuesday I start trading, maybe, if the conditions are right, and Wednesday Thursday I start trading more and programming my Trading Platform.  Friday is usually a day off for me as are Saturday and Sunday.   All in all really I don't spend a lot of time infront of my computer.  Maybe an hour or two on trading days. Sometimes just 10 to 15 minutes per day.

"Routine" for me is nothing but regular.  My routine has the above elements but other than coffee in the morning, regular meals and exercise at irregular times, and trendline analysis before bed.  Everything in between is a big question mark.   Sometimes it can get dull, sometimes I'm too busy travelling.  Most times I sit back and say "life is good".  But one thing is a must for me. Coffee in the morning.

The EA Rollercoaster

Two days ago my account was up 40%, today it is only 6% up.   There were 3 trades that the robot opened with the same currency and for some reason didn't automatically close out at break even.  Lets have a look:

 

 

 

You can see the 3 entries with the vertical lines and Ellipses on this hourly chart.  30 hours later there was plenty of opportunity to adjust the trade manually, close 1 trade in profit an 2 trades in the negative with a small loss.

 

Ultimately it's my fault.  My trading was going so well that I just set and forget and didn't bother to review open trades on my demo account and kept busy enjoying Europe while focusing on profits in my real account.

 

The challenge I'm having now is monitoring my real account and demo account.   It's easy to get overwhelmed and to get lazy. 

 

All in all still in the positive overall, a little disgruntled, but it's a good wake up call to stop spending time with hobby traders and focusing on trading on my own, streamlining my trading with both accounts.

 

All you can do when that happens is chalk it up as experience and learn from it.  For me it's a matter of figuring out an easier way to monitor multiple accounts and writing some safeguards for number of lots opened for one currency.

The Week Ahead

I remember back when I was working as a management consultant.  The weekend seemed to always just fly by.   Nowadays I sometimes forget what day of the week it is.   There is however one ritual that remains the same.  It wasn't always this way, but I realized it's important to stick to it.

Every Sunday I plan "The Week Ahead".   As a management consultant I would do a quick stock take of what clients I'm going to see.  Will I be going to the office or driving to my client site, how far is it, what is my goal.   Sunday night for that reason was somewhat depressing, haha, the weekend had just arrived and already I had to try and get to bed early.

That routine seemed to be the same flying all over Canada, the US, as well as living in the Netherlands, Belgium, and Switzerland.    I think we all have that dreaded Sunday routine.

When you start trading full time you tend to have more time on your hands and one constant stays the same.  The Week Ahead.

Sure you could do without it.  You could just get up Monday morning and wing it.   You might even do well.  Mentally preparing the week ahead gives you an edge, a piece of mind.  And it lets you plan your week somewhat.

The most important thing to plan ahead is the Economic Calendar.  What's coming up on Monday and all the days after that.   It's also a good time to do technical analysis on your favorite pair(s).   I try to stick to one or two.  Sure I can trade them all however I find focusing on just one keeps my mind clear and focused.  And of course I can still dabble on some other trades on the fly.

Monday I typically view as my getting back into trading mode day.   Back in the day as a management consultant this was typically the day I would shake hands, kiss babies, have some meetings, and plan the week ahead.  Nowadays I do Yoga first thing Monday morning, then surf the net, do some research, download some TV shows, and tune into the market just to see what's going on.   My trading I like to keep to Tuesday, Wednesday, and Thursday.   You've probably heard the saying "Don't Buy a Car that was made on a Monday or Friday"  or  "Never fire someone on a Monday or Friday".  It's psychology.  Monday's are getting back into the swing of thing days, not much gets done and we aren't at our peak until Tue/Wed/Thr and once Friday roles around we are already approaching weekend mode.

The Market is no different.   Mondays typically set the direction.   Like a race horse out of the gates, you can't gauge it's potential just yet.  You have to wait until a lap and see how it stacks up with the others.  Depending on the News and Market Sentiment Tuesday typically confirms the direction and then one is able to get a better feel of where the market is headed and if it's trade-able.  Friday is somewhat of a write off as most people close their positions and that creates some volatility that can make you think twice about ever trading again on  Friday.

That's the way I see it.  Perhaps Mondays and Fridays are your best times to trade.   To each their own.  All that matters is that you're planning for the week ahead and you're consistently making profitable trades.

Have a great week ahead!

Yep, I'd ride my Motorbike here

Only a few months ago I visited Bangkok for the first time and was in awe of the traffic. 

I thought to myself, no way do I ever want to drive here.  Not in a car and definitely not on a motorbike.

A few months later I'm driving a car in Phuket.  Not long after that I'm riding a motorbike and zipping in and out of traffic, passing cars, getting from point a to b in less time than a car without the need to find or pay for parking.  Sure it gets a little hot or wet at times but overall it's a great way to commute and enjoy Thailand.

Now that I'm back in Bangkok again I feel confident I can ride my motorbike here. I'd even prefer it over walking those awkward sidewalks, cramped streets, and fighting off panhandlers.  
Funny how ones perspective changes.  Equally interesting is how one adjusts to the big city in a flash.
Day Trading is quite similar.  It's like riding a bike, once you get back on, you are quickly peddling like it was your first bike.  And all that experience riding your bike, or day trading, comes in handy as it guides you. 

Then there comes that day where you take out your bike and you face a new challenge or you figure out a new trail, or you upgrade to a motorbike and one day take on Bangkok.   In trading you have your comfort zone, you have a system or strategy that you know that works. And as you get more experienced, you start riding that traffic like you ride those waves in Hawaii, like a champ.  You might even figure out some new tricks, some new strategies and systems.

All in all, the Forex Market is exciting.  It's an experience.  It's always changing and yet it's as it has always been.  A good platform, broker, system, and strategy are not enough.  Experience is key.   A great way to get insight on the Forex Market is to sit down with a pro, someone that has been trading the Forex Market for many years and can share their experience.   Just an hour with an expert can be as powerful as a few years on your own.   If you don't have one, I recommend you take on a Forex Coach.    For more information have a look at my Day Trading Course.

Panya's Testimonial

Just a couple weeks ago I took on a new student from Bangkok.  Panya, an established business man and family man with a few years in the Forex Market.  He had tried many different strategies, systems, and fallen into the pitfall of EAs (Expert Adivsors) aka Robots.  You know, those get rich quick schemes that if you're lucky works for a short amount of time before wiping out your account.  Panya had gone through the ups and downs and had enough of false signals and EAs.

Panya flew to Phuket to meet me and start my Forex Day Trading Program.   We met at Central Festival Shopping Mall and had a great chat over lunch, about Forex, Business, and Life in General.

He signed up to my course on the spot and we rolled up our sleeves and started our first session right there and then.  We could have just as easily done it over the phone and internet but meeting sure was a nice touch.  I like to meet my students face to face.  I love nothing more than seeing them engaged, smiling, laughing, and catching that aha moment.

At the end of our first session, 2 hours later, he had this to say:

"I have learnt a lot from you today.  About Forex and life in general.  I'm inspired.   The $1000 I spent on your one-year-course, I would have paid just for the 2 hours you spent with me."

2 weeks later, I am happy to say that Panya is doing well.  Here is an exert from his email:

"I have been trading and your strategy has proven to work very well.  I have been trading my live accounts when time permits and have made money. You might not believe me but i made $11,000 on Aug. 27th by trading 1-5 lots per order and here's the proof (a snap shot from my iPhone). My capital was about $6,000."

 

 

Disclaimer:

Past performance is not indicative of future results. Trading Forex carries a high level of risk, and may not be suitable for all investors.  The high degree of leverage can work against you as well as for you. Before deciding to trade any such leveraged products you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading on margin, and seek advice from an independent financial advisor if you have any doubts