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 Tip: Break Even

Here is a scenario for you, at the NFP release today I went short EURUSD @ 1.0959 and at +20 Pips I set my Stop Loss (SL) to Break Even (BE) and my Take Profit (TP) to a previous low of 1.0820.

What is my Risk?

That's right.  ZERO.  Absolutely no risk, at this point.  I'm already in the plus and my SL is set to BE so worst case I walk away with nothing.  Best case with 139 Pips.    Or I might change my TP or exit manually.

Sometimes trading isn't so much about the right entry as it is about letting your profits run and managing your risk with a BE SL.

Have a nice long weekend!

Trading Tip - Weekend Warrior

So it's Friday and either you've made some great trades this week or you are a little muffed that you missed trades or worse, you made some bad ones. 
 

The weekend used to be real tough for me.  As an avid trader I found myself going thru "withdrawal", wanting to be part of the action or wanting to make some pips back that I had lost the week before.

The healthiest thing you can do to improve your trading is to review your trades.  Your good ones, your bad ones, and the missed opportunities.

Take the weekend, and perhaps Friday too (Never Trade on a Monday or Friday) and review what you can do to better your trades.

So scroll back on your charts, go back to Monday and review how the market moves.  Pay attention to market open times (Asia, Europe, US), News Release Times, your signals, your entries, your exits.  Draw vertical lines to mark events.  Print out your charts if it helps you and make notes.

No doubt you've missed some trades.  What can you do to get in at the right time next time?  Can you use entry orders?   Can you catch the wave on a rebound?   Perhaps you can go down to a lower timeframe and find an entry.  Compare higher and lower timeframes.  Become a master at drawing trendlines, channels, and spotting important price points.

Just don't get overwhelmed, pick one currency, one system.  It's like picking a hobby.  Sure you could play Golf, Soccer, Football, Badminton, Rugby, and Hockey.  But which sport do you do best at? Which one fits your schedule? Juggling all of them isn't gonna work.  Same with trading.  Pick a currency, system, study it.

As much as I love trading, I also enjoy kicking back and putting my feet up.  Monday will roll around soon enough and it'll be back to trading!

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! :)

Top Forex Resources

Many traders ask me what Forex Resources they should keep an eye on.  While this is really personal preference, my belief is to keep it simple.

Sure, you can sign up for newsletters, webinars, magazines, and get active in forums and social Forex sites, BUT will it really improve your trading?   Seriously.... if you rely on others then you are not self sufficient.  Worse yet, you are prone to become inundated with too much data.  Analysis Paralysis.

Sure, there are many experts out there giving brilliant analysis... or are they?   Lets face it, it's always easy to review the market after the fact.

The only resources that a good trader really needs it the Forex Factory Economic Calendar and his brain.

So do yourself a favor and get rid of any so called "resources" that are nothing but clutter and noise.

Trading is like Dating

Even if you are married you will remember the time you were single.  For some it was awkward, for others it was fun, and for some people it was a period of ups and downs until you met that one.  For me "Single Life is Happy Life".  Needless to say I still do a lot of dating.  And yes it's a lot like trading.

There are some dating mistakes that most of us will shake their head at but some of you will remember making.  Like falling head over heels for a girl and trying way too hard.

#1  Trying Too Hard

Life, trading, and dating is all about moderation.  Try too hard and you will not get a second date or worse you'll be taken advantage of.  Don't try too hard.  Relax. Take it easy.  While it doesn't hurt to make a good first impression, you don't have to bend over backwards.   Don't trade too much, don't stay up 24x7.  Don't read every book out there.  Take your time.  Good things will come to you.

Lets face it, if you are carrying the girl's school books home then she might lose interest and go for the guy that just doesn't care.

#2  Absence Makes the Heart Grow Fonder

The jock that never helped carry her books, in other words didn't give her all the attention she wanted and was distant.  He had it right.  Either by sure dumb luck or by pure genius.   Women want to date a real man.  They don't want to date their friend, chauffeur, and butler.  They want someone that will tell them No.  Why?  Because women are drawn to leaders. Leaders have higher mating potential, because they take risks and are considered more dominant, more of a survivor, and hence the female body perceives that their sperm will swim the distance.  Women love jerks. 

The market will eat you up alive if you devote your life to it.   Take a break, enjoy life, find another hobby, and for every minute you spend away from "temptation" you will be closer to getting what you want.  Be a leader and control the market.  Don't let the market control you.  Make solid plans, know when to walk away for some breathing room, and don't let a bad trade consume you.  Likewise don't let a good trade give you false confidence.   That girl that you have "wrapped around your finger" can turn on you anytime.

#3 Don't Be Too Cocky

There is confidence and arrogance (cockiness).   Sure she might laugh at your arrogance and cockiness but don't be fouled.  Women are always (over) analyzing you.   Before, during, and after they met you.   Tell some good jokes, talk a little bit about yourself, with confidence tell her about your passions but don't get overly cocky.  Be confident.  Trade with confidence.

Don't start increasing your lot size and prancing around the room telling people how much money you made.   Don't make messy trades because you think you own the market.  Know your limits.  Know when to take a time out and real back into reality.

#4  Be Real

Women can smell bullshit.   And even if you are speaking the truth, there was a line of bullshit men that have given them reason to doubt you.   Don't over exaggerate. Don't embellish.   Don't pretend you are someone you are not.   Women can tell.  Or they will find out. And when they do, it's not pretty.  The market smells your bullshit too. 

Don't tell yourself you are a superstar because you had a few lucky trades.  On a demo account...  Don't quit your day job thinking you have what it takes.   Not just yet.  Be real.   You need to live the life of a trader.  For at least one year.  First on a demo account and then another year on a real account.  Then and only then you have a real feel of the market.  No "oh yeah with a real account I wouldn't have done that" bullshit.  And no "oh yeah I just need to use 5 times as much equity next year" wishful thinking.  Be real.  With yourself.

#5  Baby Steps

You're not going to show up with a bouquet of flowers, a box of chocolates, and a diamond engagement ring on the first date.   And if you do then she will RUN!     Get a grip on yourself, be real and pace of yourself.  

Have a plan.   First date, get to know her.  Second date, make a move.  Third date, if you haven't made a move yet you better make one quick or you'll end up in the friend zone...   The point is you need to have some sort of idea in your head of what your goal is and then plan out the steps to get there.  Or at least pace yourself and not skip any steps. 

Same goes for trading.  Month 1.  Get to Know the Market.  Month 2.  Make some moves, place some trades.  Month 3.  If you still haven't made some trades then you better think about just sitting on the sidelines and watching the market as an observer and get stuck in the F-Zone.

#6 The F Zone

The most dreaded word.  FRIENDS.   Do what you can to stay out of the Friend Zone.  You don't want to be sitting on the sidelines watching her as she dates other guys and comes crying on your shoulder about them.  Just like you don't want to sit and just watch the market.  You need to grab the bulls by the horns and make sure you know how to stay out. 

For one, never ever do lunch or coffee dates during the day.  She's just killing time.  You aren't her favorite choice.  Make sure it's drinks (and only drinks).  No dinners.  You need to have an escape plan before she starts ordering a 5 course meal and she tells you about her crazy ex boyfriend and 5 kids.     Same in trading.  

Take trading serious and don't be an observer. Take the lead and schedule the time to trade.  Commit to an hour a day. Schedule it in your calendar like a doctor's appointment.  Don't try and squeeze it in on your lunch or coffee breaks.  Be serious about trading.  Just like you want to be serious about going on a date and not be picked as her friend.   Let her find a gay friend for that.  Stay out of the friend zone by being a man, not her friend.

#7  Know When to Walk Away

Know when to put your foot down.  Know your limits.   Know when to walk away.   When you're dating you need to weed out all the crazies and incompatibles.  Don't let "love" blind you.  There is a difference between being "in love" and "loving" someone.   And if you're just starting to date then you are likely just "in lust".  

Know when to walk away.  Do so when knowing that the risks are just not worth the reward.  Like waking up with your testicles chopped off.   When you're trading "walking away" is the most important skill you have.  Think of the market as dating opportunities 24 hours a day, 5 days a week, with opportunities almost every hour.   You need to know when to walk away and sit out a trade.  Sure the Moving Averages look good, the MACD looks good, but there is news coming up and the trend analysis doesn't look good.  Walk away. Save yourself the headache.

The minute she wants to be friends...  When her ex is back in the picture...  When she starts showing some real emotional issues...  When you just don't feel the connection...

#8  The Routine

I have been on countless dates.   It's really down to a routine.   I meet for coffee, always after sunset, so it's more intimate, and I never go for dinner.  I get to know the girl, what she does for work, for fun, her family, what she's looking for.  I crack some jokes. Tease her a little.  See how her body language responds.  Is she smiling, giggling.  Touching me.  Then I ask her to come back to my place for a night cap or to watch a movie.    Maybe a bit aggressive but why bother with date 2 or 3 when there is no chemistry and trust on the first date.  And as for just coffee, well I find dinners overrated, time consuming, and boring.  I don't like to eat out and find when a girl is more interested in how much money you spend on her than she is in just having a conversation in a neutral setting, then she isn't worth my attention.   That's me, that's my routine.  I am happy.

When it comes to trading my routine is not dissimilar.  I get up in the morning, drink a glass of water, then make Strong Espresso.  If and only if I'm fully awake then I glimpse at the market.  Get to know the market.  I do the same basic checks, what's the big picture, where is the market moving now, what news is coming up, what are my indicators telling me.   Are the indicators favorable. Am I liking the situation.  What is the risk, what is the reward?   Sometimes I walk away, sometimes I make a move.   If I have made a trade I will keep an eye on it.   Around lunch and dinner times (they happen to coincide with Europe Open and US Open Times), I have another look and see what is developing.  If I don't see anything I'm usually happy.   Just like I'm happy to ditch a date from hell by taking that emergency phone call "Oh my god, what happened?  I'll be right there" "Sorry gotta go".     I know far to well that waking up next to a basket case is just as bad as hitting a Big Fat Stop Loss.   I either go out on a real date at this point, do sports, or watch a movie.   Eventually bed time hits and the next morning I repeat my routine.

I keep a normal routine.  I don't believe in working late. I don't believe in trading all hours of the day.  I believe in trading around your lifestyle and schedule.   Integrating trading with my lifestyle.  Of course there are times you have to make trading a priority, just like you make that hottie with the hourglass shape a priority when she smiles and asks you what you're doing later tonight.

All in all trading is like dating.  A lot of gotchas.  A lot of lessons learned.  Eventually you will have it down to a routine and enjoy that routine.

Happy Dating. ;)

Smart Goals

When I was building businesses for a living one of the most important aspects of owning a business was to have goals.  And not just any goals, but Smart Goals.  Without them you don't have a business and you don't have a trading plan, you're just winging it Gambling per se.  I can tell you here and now that any business owner that had Smart Goals did 10 times better than business owners without.   Having me coach them and hold them accountable helped too. ;)

S.M.A.R.T.  Goals are Specific.  Measureable. Attainable. Realistic. Time lined.

• Specific.   General goals like "I want to make money from trading" are too vague.  You need to be precise and concise.  Know what you want and be specific.  Ask yourself, Who, What, Where, When, Which, Why.   A specific goal would be "I will start trading a demo account and trade every weekday for at least 15 minutes."
• Measurable.   Without a sense of urgency or commitment, goals can be like your New Years Resolutions.   They're there but have no substance.  You have to hold yourself accountable and set yourself up for success.  You need to be able to measure your success and put some numbers to them.   How long will you trade per day?  How many trades will you make?  How much money do you need to make?  (Read Pips versus Dollars tomorrow).  When will you know you have hit your goal? 
• Attainable.  When you set goals, start thinking about the possibilities, obviously those opportunities should be attainable.   So be honest with yourself and know what you can and can not do, in what timeframe.  What skills do you need to develop.  What preparations need to be done.   Will you do it on your own?   Do you need help from someone to coach you through it?
• Realistic.  Don't be afraid to dream big BUT make sure it's attainable and realistic.   Your goals must be realistic.  Your goals should be high enough to motivate you and give you a little bit of struggle.  Low goals don't motivate and give you little in return.    Financial Freedom, sure.  Leave your job tomorrow and start trading with your life savings. NO.   Trade part time, study, learn, improve your skills, first using a demo account, then if certain goals are met, with a real account.   Again ask yourself if you want to travel the road by yourself or have an experienced professional, a coach, available to guide you through it.
• Time lined.    ASAP (As Soon As Possible) or PDQ (Pretty Damn Quick) isn't good enough.  You might as well just say "I will do it someday".     You need to have specific time lines in place.  Your goals have to be timely or tangible.
  
  For example, I will trade a demo account for one year, with the help of a professional, while learning the fundamentals and basic, 4 hours a week to start, and then 2 hours per week after the first month, and 1 hour per week after the first 3 months.  As my learning curve goes up, my time and effort goes down.  I intend to make 10% ROI (return on investment) on my demo account in the first 3 months and re-evaluate my ROI once I have had 3 months experience.   In one year I intend to have made more positive than negative trades, and more positive pips than negative pips.  I will have weathered the four season of the forex market, made mistakes, learned from them, and I intend to update my trading plan every month and adjust it where necessary, with the help of my coach.   I will have enough free time to spend with family and friends, and not overcommit my time to trading.  Family. Friends. Work.  Come first.   At the end of the year I will revisit my trading plan and with the new knowledge and experience I have gained I will plan the next year, 3 years, and 5 years.  I will have completed my goals when I am making sufficient money from trading where it is more than just extra income and will consider trading full-time.  Or part-time.  Depending how I feel about my job, finances, and family time.  Trading will help me live the life-style that I choose. 

Sounds simple? It can be.  Just put your mind to it and make sure you put the time and effort into it.  The payoff is directly proportional.  Next you need stop thinking about money and start thinking pips!

Stop the Insanity

Yesterday I wrote about Insanity being a full time job.  Today I'm going to give you some tips in the event you have gotten of course and are struggling with trading or perhaps in life in general.

• Change is the only constant.  First and foremost realize you have the ability to change.  When you want to change the outcome of your trading or life, you need to change your approach.   Is that Starbuck's employee constantly in a bad mood?  Smile at them first.  It's sometimes hard to be friendly first but when you are then others will usually return the favor.  By changing your approach you are changing your outcome.  Having a bad trade?  Stop, think back, and analyze what you did wrong.  And perhaps it's time for a new strategy.  (new approach)
• Short Term = Tactics.  Don't think just short term.  Even if you are a scalper or prefer short term (day) trades.   You need to think like the general and plan ahead.  You don't want to be the foot soldier in the trenches.  You want to think strategy. Long term.  What is the trend.   Today, this week, this month, this year.   Where is the market moving to. From. How long has it been moving in this direction.  What has, historically, happened in the past (think major trend lines).  Sometimes it's as simple as thinking when do the bullets stop coming, I'll take a break then, or in Forex terms, when does the market volatility (news) stop and I can ride the remaining wave.  Just like in surfing, you want to catch a good wave.   But when the waters aren't choppy and too intense.
• Long Term = Peace of Mind.  If you are constantly thinking short term and trading on a whim, on the seat of your pants, or better put, you are "gambling" and "making quick decisions" then you need to stop the insanity and calm your mind.  It's all fine if you make a good short term trade. (Catch a good wave)  But when you make a bad trade,  and you end up in a dangerous wave then the undercurrents pull you down, you will panic and regret that decision.  So instead of making quick decisions, make smart decisions.  Think ahead.  Analyze the trend. Analyze the market.  Analyze the news.  And like a trip to the mountains, plan ahead, what will you take with you, how long will it be, if it rains what is your alternate plan.  When do you return, etc.

You need to set S.M.A.R.T. Goals!  More on that tomorrow :)

Insanity is a Full Time Job

In all likelihood you are familiar with Albert Einstein's quote:  "Insanity: doing the same thing over and over again and expecting different results."


Insanity truly is a full-time job.  On so many levels.

• Making mistakes over and over again will keep you busy all day long.  Without desired results. So you keep on repeating and spending more time, energy, and focus on something that is likely to fail again.
• Full-time trading is overkill.  Sure there are traders that live for being glued in front of their computer screen 24 hours a day, 5 days a week, and perhaps even keeping busy somehow with analyzing trades on the weekend.  It is fun for sure.  When I first go into trading that's how it was for me.  BUT and this is a biggie, in my opinion, it's like a sport.  You don't want to over-exhaust yourself and play Badminton 4 hours per day, lift weights 4 hours a day, and then go for a 20K run.  Every day.   Your body needs rest.  So does your mind.   And if you get hooked on a sport, say running, and you love that runner's high, you can get away with running every day for a while but soon enough your body will tell you that you need to pace yourself.  Run every other day. Or just run a little every day but rest once or twice a week.  Sometimes your body (and your mind!) needs rest every couple months for a week or two.   So don't overtrade.  Pace yourself.  Sports may be a "healthy" addiction, Trading is not.  Either way even healthy addictions can bite you in the ass. Do everything in moderation.
• A full-time job does drive me insane.  I just don't have the time and energy to deal with all the b.s. for little pay.  Or even great pay for that matter.  Making $200,000 / year is great.  But if it doesn't fit your lifestyle and you are not happy then you are going to insane trying to fit in and "ride it out".  Sure in 5 years you have made a million, and in 10 years you will have saved a million from the 2 million you made.  BUT life has gone by and you will never get that time back.  If you are unhappy and rich, you are still unhappy.   If you are happy then it doesn't matter how much you make, every day is a gift, and you realize that you don't need much to survive.  I have learnt this the hard way but now I am in Thailand living it.  Don't get me wrong, I still make good money, I don't make $200,000 a year.  Because I don't need it.  I make more than I need to live.  If I want to go to Europe then I just make the money I need and then go.  It's similar to planting a garden.  Why plant more than you can eat?  Sure you'll have some extras to give to neighbours but why plant a field of Basil when you just need a couple bushes.
• Lifestyle.   Sit back and ask yourself "Why was I born?"  "What is life's purpose?"  "What makes me happy?"   "Where do I want to be in 1 year, 3 years, 5 years?"   "When it's time for me to move on and leave this world, what will I look back on?"   Chances are you don't think working is your life's mission.   My motto is "Work to live, not live to work!"
• Not all day's can be sunny days.  You are going to drive yourself insane thinking you need to trade every day.   Life isn't all sunshine and lollipops.  There will be rain, there will be bad weather, life will happen.  So don't expect to be trading every day.  The sun is brightest after darkness.   Find other things to do on "rainy days".

Stay Sane.  Trade in Moderation.  And please get help from an expert.   I just discussed this with my friends Mr. Teddy and Mr. Jai.  If you learn to golf, you should start with a pro.   Sure you can try on your own and get golf tips from someone that plays well.   But you will develop bad habits and eventually realize you spent all this time, effort, and money, and are still doing it wrong!  Then you will seek out a pro, and he will have to reteach you everything, break your bad habits.  That takes more time, effort, and money than learning how to play golf from a pro in the first place.  Please find yourself a good Forex Coach.   If it's not me, that's fine.  I don't take on many people.  BUT be careful to select the right one.  Unfortunately when it comes to money and investments, there are a lot of scams and cons out there.  A lot of "golf pros" that have never played "professional golf" but make money from teaching.

....to be continued

Rotten Fruit

Arriving home from Thai Language class I went to grab a banana and had ants and fruit flies everywhere due to the bananas' ripening.  Don't you hate it when you have to throw out food?  All the best intentions in the world justify your decision to buy fruits, vegetables, and other food with expiry dates.  And for whatever reason you then are faced with having to throw out rotten food.

Once in a while we need "rotten fruit" as reminders.  Growing up in a world where there is a surplus of food, we take it for granted and don't realize how good we have it.  Others are starving.  My parents often told me about their experience growing up in Post World War 2 where they counted how many peas one could have for dinner.  And that was the only dinner.  Potatoes and other vegetables were traded on the black market.  Not only do we not appreciate today's abundance of food, but it hinders our creative thought process and drive.   Arnold Schwarzenegger when asked what made him successful said "Stay Hungry".  Overfed hunters lose their ability to hunt.  The well fed are not hungry enough to strive for more.   When you are constantly hungry you strive to do better, to do more with less.   So in a way when it comes to shopping and cooking, today's meals aren't as creative as they used to be.  In the post world war 2 days one had to come up with creative way to make do with what they had.   Don't be fooled by so called "peasant foods".  They are nutritious, delicious, and filling.  Here in Thailand I get more satisfaction from cheap food rich in herbs and taste, say Pad Kaprao, than from a meal that costs me 10 times as much, perhaps Thai but mostly Western.

Shopping only for the next dinner is far more rewarding. It eliminates waste.  Your ingredients are fresh.  And if you are in a bind because your fridge is somewhat bare, suddenly that one vegetable, fruit, or food item, that would have been overlooked in a full fridge, becomes inspiration for creativity.  You tend to think more about what you are going to cook and how, rather than think about eating, and perhaps eat more because you just have to have the pudding, crepes, and yogurt because it's there looking at you.  And after you are full and over nourished.  Intoxicated by overstimulation.   If you had to go hunting again, you'd have not will or interest.  Worse yet you are going to get fat and your body and mind will be stressed.

Trading is not dissimilar.   There are plenty of trade opportunities. Plenty of pairs.  The market is open 24 hours a day, 5 days week.  You can go long on EURUSD, short on USDJPY, heck you can hedge your trades if you feel the market will swing either way.   Is that a good thing?  Or are you juggling too many balls?   Too many moving parts.   Too many eggs in the basket.     Bitten off too much to chew.   You might get lucky and all your trades go well.  Or you could choke on that big bite and with more at risk, you lose more.

Stay hungry.  Go for low hanging fruit and only pick what you need to eat today.   There will be low hanging fruit again.  Don't over trade.  Trade only when the market conditions are strongly in your favor and you have minimized your risk.

Passion

When it comes to life, to relationships, business, and yes, surprise surprise, the Forex Market and Day Trading you need passion.  You need drive.  If you don't have it, you better get it back, quickly.

A lot of traders and wanna-be-traders fail because they lose their passion.  They start throwing up their hands, look to lay blame saying "It's not working".   When in fact the only thing that changed is the passion.  The passion to learn the market, understand the market, and the passion to fine tune your strategy or look for a new strategy all together. 

If you have lost the passion then you better sit back and analyze what happened.  Why were you passionate before?  What has changed?  Go back to the roots and start reviving that passion.  In relationships you can seek counseling or start by dating again.   In the forex market you either find someone that can help and coach you through it or you figure it out on your own and retrace your steps.

Forex and Your Health

We tend to focus on work, the market, making money and are too busy to focus on our health.   It's pretty easy to develop bad habits.  Smoking, drinking, junk food, GMO food, and other guilty pleasures.

When you are a day trader you have a wonderful opportunity to focus on your health.  In turn you will be rewarded with a clear mind, energy, and ability to better handle stressful situations.  Plus who really enjoys trading from the hospital bed or feeling like crap, right?

Health is so important.  We put premium fuel in our cars yet we put junk food in our bodies.    If you put bad fuel in your car you'll notice it pretty much within driving a few kilometers.  Perhaps in a week at most.  However if you put bad food in your body or neglect your healthy it can take weeks, months, or years to catch up.  If you are "lucky" enough it won't catch up till you are old and your bones are brittle because your body had to get it's nutrients from your bones.

I'm no health expert but I have read up on the subject quite a bit and met many people with all sorts of illnesses like MS who have turned their life around, without medication or drugs, and gone on to become healthy or healthier.  That is what triggered my interest in health.  Plus I have had some personal experiences that made me a believer in keeping healthy.

Keeping healthy to me means I can trade with a clear mind, feel great, and have no medical issues.

My Health Tips:

• Drink 3 glasses of water first thing in the morning before brushing teeth
• Drink Lemon Water (freshly squeezed)
• Don't drink pop.  Coke, Pepsi etc. 
• Stay away from artificial sweeteners
• Drink carbonated water (with lemon) if you crave something more than water
• Drink Kombucha - read more about Kombucha here
• Stay away from wheat (gluten), white sugar, white rice, processed foods, cereals, microwaves
• Read the ingredients, if they are not all natural and contain too many chemicals and long words, they are likely bad.
• Know your good sugars (fruits, vegetables) and bad sugars (corn, fructose, glucose, etc)
• Know your good fats (greek yogurt, olive oil, coconut oil) and bad fats (vegetable oil, hydrogenated)
• Butter not Margarine
• NON GMO - Genetically Modified Foods are just evil.  Read more here
• Most Milk and Dairy Products are bad for you.  Look for Non GMO, non pasteurized, no antibiotics, free range, etc.  Again read more on non gmo above.
• Eat lots of vegetables and fruits.  Fresh from the market.
• Limit your meat intake.
• Follow the 80/20 rule.  80% vegetables/fruits/brown rice  20% meat (except fish can be 100%)
• Make your own chocolate, breakfast, etc, it's easier than you think!  see my health tip collection below
• Sunday declare "free day", allow yourself to eat anything you want.  Even junk food.
• Exercise at least 3 times a week.  Try Yoga.  Badminton/Squash. Swimming. Walking.
• Easy on the alcohol.  See "free day".
• Find natural alternatives to any medicine.  The word disease comes from dis-ease.  Meaning something is uncomfortable. Your body's way of saying you need to do a self diagnosis.  For example, if you have a headache your body doesn't say I need an aspirin. It's a sign that you need rest or water. 
• Surround yourself with positive people that make you happy.  Do not associate with any negative, unhealthy people.  Cut out drama, negativity, and stress from your life.
• Sex every day  (S)leep lots, (E)at Healthy, e(X)ercise
• For more Health Tips see this collection of pictures

Understanding The Market

Trading is a lot like Golf.   There is a lot to learn, but with a few basics you can enjoy your first game, only to realize you have a lot more to learn.  You might even get lucky and make par.  I bet however you are likely not going to be a consistent golfer without a few lessons.  Without time at the driving range.   Most people need help improving their swing, their long game, short game, and their putting.  There are a lot of clubs in your golf bag but chances are you will use only 3 plus your putter.  Your driving wood, your long iron, pitching wedge, and your putter.   Maybe a sand wedge.   Lets face it you will spend a lot of time "on the beach" (the sand trap).  Anything else will work but really you aren't that good of a golfer to make a difference.  So why bother practicing with every single club and playing with every single club when you need to improve just a few things...

Same goes for trading.  At first stick to the basics, get comfortable with your chosen strategy's indicators.  Don't light up your trading station like a Christmas tree thinking 5 indicators are better than 1.  The indicators pretty much all give you the same signals.    All you need is an entry signal, a confirmation signal, and exit signal.  And of course technical analysis.  In golf you look at the layout first.  If it's a short par 3 with only 100 feet, you are not going to pull out your driving wood....  Leave Big Bertha in the bag, get your Pitching Wedge and have at 'er.  So when the trend is long, you look for long opportunities.   When the market is slow, you stay out or grab less pips.  I prefer to just stay out.  When it rains you get your umbrella.  When you get rained out you go home.  Twilight hits and you pay half price, and you might have guessed in when you trade slower markets or markets about to close, you might want to reduce your lot size to mitigate risk.

I chose Golf as a subject because a lot of people can relate to it. So now choose your hobby and relate trading to it.    Chances are you'll find your approach is similar.  Just thinking about it you are going in the right direction, that is to "understand" the market, versus "learning" about the market, versus "studying" and "being taught".    A lot of traders make the mistake of wanting someone to teach them without having to study or learn.  And if they make it to the learning stage they don't quite try to understand the market.   I'd have to say that's the biggest road block for traders.  Always looking to find the answer from someone else when only you have the answer.  When you pick up golf you need to be taught, study, learn, and understand the game to play it well.

Life of A Day Trader - The Weekend

For some traders the weekend is a difficult time.  They have an itch to trade, are worried about their negative trades, or are regretting all the "things to do" they pushed off to the weekend.

When you trade for a living you need to manage your time.  Don't lie to yourself.  Don't push things off.  Keep a list.  Just get to things when you can.  Only put target dates for important things...  Like "Exit all trades before NFP".

Weekends are often best spent doing anything but trading.   When you train in the gym or play sports you need a day or two in between to recuperate.  You should do the same when you trade.  Take a time out.  Step away.  Overtrading like overtraining will catch up with you.  Sometimes it's good to take a week or two off entirely.  Notice how your work outs become more fun and bring better results when you get back from time off?   Same goes for trading.  Just like in relationships, when one door closes, another will open.  Missed a trade today?  Don't worry, one will come along soon enough.

Top 10 Reasons You Shouldn't Trade

These are the top 10 reasons you shouldn't trade.  You should just forget about trading all together and get back to whatever it is you are doing for a living IF:

10.  You don't understand why the below reasons made the list
9.  You love to gamble
8.  You have no self control
7.  You don't want to spend time or money on proper training or coaching
6.  You don't want to put time and effort into mastering trading
5.  You want to open a managed account or have someone else trade for you
4.  You are constantly looking for the holy grail miracle system to make money
3.  You want "guaranteed" results
2.  You want to get rich quick

1.  You need to make money from trading to survive

Are You Happy?

The best traders are happy traders.   Don't be fooled into thinking trading will make you happy.   It's all about your lifestyle choices.   Trading isn't the answer to happiness.   You know the saying "Money isn't everything".    Sure money helps.  A lot.  BUT if you hare unhappy all the money in the world can't change that.   Trading won't either.

You need to focus on what makes you happy.  Your surroundings.  The land, the people, the food, your health, friends, family, etc.   Surround yourself with happy people and it will become so much easier to stay positive.  And when you are happy and positive, your trading becomes easier.  After all, trading is just a small part of your life.  Yet it enables you to live such a good life.  Like any job or business, do it with passion but don't let it consume your life.

For me happiness is somewhere warm with mild or no winters, with healthy food, friendly people, access to the internet, movie theatre, yoga, badminton, low crime, with an airport nearby so I can jetset when and if I want.   That place for me is Thailand.  Although I am considering checking out Malta.

Sometimes you also have to make hard decisions and cut out the things or people that make you unhappy.  For example the weather, rude people, money hungry self absorbed people, unhealthy food, too much TV, bad habits like smoking or excessive drinking.   All in all you might need to change your friends and surround yourself with people that strive to be positive, healthy, and happy. 

Bottom line.  Focus on you and your happiness.  Your trading will fall into place.

Reality Check

Every once in a while you need a reality check.   For my students I start with weekly reporting and then month and quarterly reporting.  You should on a regular basis review your trades and ask yourself the following questions:

1.  In the last month / quarter how many pips did you make?    What was the profit?
2.  If you had losses, what did your technical analysis reveal was your error?
3.  If you had losses, to correct your error(s) what steps will you take?
4.  If you were profitable, what can you do to improve your trading results over the next quarter?
5.  What have you learned over the last month / quarter?

Most traders just wing it and live in a constant state of denial.  They know what they are doing wrong, but fail to correct it.   You and only you can keep yourself in check.   You must be willing to put in the work and effort to analyze the charts, your trades, find your mistakes, and correct them.

Life of a Day Trader - A Typical Day

When I first started trading about 5 years ago I had no idea what to expect.   I remember the feeling was almost like being in high school when you picture what college or a "real job" would be like and you just don't know.  Of course reality is much different.

Many people focus on trading too much.  They are glued infront of their computers all day, waiting for that perfect trade.  I tend to just go on for a little bit and when I have made my trade, I leave my computer and keep an eye on my trade but don't babysit it.  If you have done your analysis right and if you have enough experience you know what can and cannot happen. The good and the bad. The ugly.

A typical day varies from trader to trader.   I am too busy with life to sit infront of my computer all day.  I remember I used to do that in the beginning but then I ended up putting on weight and feeling sluggish.   Now I realize I just need a few good trades and I'm set.

Rather than telling you a typical day, let me tell you what I did today.  This morning I got up around 8.  Made Espresso around 830. Then went to the Transportation Department to renew my vehicle registration and insurance.  Was told I needed to get my car inspected.  Went back home, went to school to study Thai.  Signed my visa papers to renew another year.  And after class I went to get my car inspected.  Got the A OK sign. Paid my 2000 Baht. That's about US$70 for the inspection, one year insurance and registration, and then went grocery shopping.  After arriving home and putting the groceries away I planted some basil, celery, and mint.  (I like cooking with fresh herbs).  Made some Vegetarian Green Curry with Rice.   Surfed facebook.   Looked at the charts after the US Market Opened, around 7pm, answered some emails, noticed EURUSD hit the Average True Range Resistance Level and placed a short order.   Made 10 pips.  Made a note to improve my take profit targets for ATR trades and decided to write this post before calling it a day. It was a hot one today, 35C and with all the driving around and maybe a change in my diet, I feel exhausted and my head isn't in the right frame of wind to do any more analysis, besides, I made my 10 pips, already have a good trade.

The Secret to A Long Life

The key to a healthy long life is sex every day. s. e. x. that is. (s)leep enough. (e)at healthy. and e(x)ercise.

FAQ - How much seed money do I need?

A frequently asked question I get is "How much seed money is needed to get started?"   Some people think it takes tens of thousands of dollars.  Others more.  And of course there is the Cheap Charlies that think they can become a millionaire without risking any money at all.

It really depends on your lifestyle and your current income.  First of all you should NOT start trading to make a living.  You should have a steady job or business, or better put, you should have a steady income and look at your trading as a "hobby" with the possibility of making "extra money".  When you are successfully trading on the side for at least a year or two then you can consider doing it full time.  But and this is a big but, you need to slowly work your way to that point of financial freedom.  Of course this is all with real money, no demo accounts.  You wouldn't believe how many people make the mistake of thinking demo account "earnings" as the "real thing".    Of course you need to have realistic expectations.  Just because you can make $500 per month with your real account, doesn't mean you can make $5000 just by trading 10 times your lot size.

You can easily start with only a few hundred dollars, say $500, and use micro lots.   If you are good you will double your account.  If you're a hack, you will lose it all in no time.

Of course the trading psychology changes as you start using lots and you need at least $5000 to weather your drawdowns. 

At most you should have about $25,000 in your account in my opinion.  But again that depends on your strategy and risk reward.  Some people make only a few percent, while others make 10% or more.  Others yet double or triple their account.

You can't base your success on anyone but yourself.  

Do your due diligence and calculate your quarterly and yearly profit, then determine what is obtainable, for you.   In other words if you can make 10% a month then $5000 will not get you far.   If you can make that in a week or day then of course things look brighter.   Always use at least one years worth of your trading results to gauge your gains.  Remember not all days are sunny. There will be rain.  There will be no trade days.  You will be sick.  You will be busy.   Life happens and you cannot trade every single day.   So one years worth of data is needed at a minimum to analyze potential future earnings.

Any money you put in your account you should write off and be able to walk away from.  Don't be a fool and use money you need or max out credit cards.   That's pressure and stress you don't need and you know how life can be sometimes, you can trade perfectly 100 times in a row and that one time you risk more lots is when you make that bad trade that wipes out your account.