Judging by the fact you’ve clicked on this video shows me you want to get involve in Forex trading, especially heading in to 2020.
Now sometimes online, it can be a little bit misleading, it can be hard to actually figure out the path that’s right for you, and what path to take, what route to take, who to learn from, all these common questions I’m sure you may have.
I was the same thing. I started out my trading journey at the back end of 2016, and another time those are really too much information out there; yes it was bits-and-bats of information. But, it wasn’t all pieced together; I kind of had to figure it out for myself. And in the beginning stages anyway, through trial and error, and through a lot of different websites and things like that.
So, I want to create a video right now that would have benefited me when I first started trading, and give you a guideline of what to follow, what to do and what not to do and who to learn from, things like that, so hopefully this is going to be valuable.
Sit back and relax and we’ll get straight into the video.
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Get into a community of like-minded traders: 00:53 (timestamps taken from the description)
Now, the first point I want to go into here is to join a community of like-minded traders. Now you have a couple of options, so I’m sure you’re coming into trading space you’ve probably heard of signal services, don’t even let me get into that, and courses, communities, and you can even learn it yourself, as well. Well, let’s start off with signal services first and foremost.
If you want my opinion, do not touch the signal services with a barge-pole. The reason being, right, let me explain this quickly: you’re not learning the sustainable skill for yourselves by someone giving you signals to buy and sell currency pair when and when to exit it. You’re not really gonna learn that skill for yourself, right?
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Trading is such a sustainable skill that you can master over the long-term. And just think about it, right, once you get to where you want to get to, you can generate more return to the bank, like you are an asset, but if you don’t learn that skill and you let someone essentially trade for you like signal services, then you’re not gonna learn the skill for yourself.
Let’s just say for an example that signal services does become an income stream and I’m very much doubt it, but let’s just use it as an example. Let’s say that a person completely stopped trading tomorrow, right, you’re then screwed. Like, you’ve no income source like that, that’s the thing. Like, it’s not sustainable and I just don’t agree with it. I think so many people reach out to me and I’ve seen it in social media. So many times that people just want to get into that get rich quick mentality, want to flip like so much money in so little time.
It’s just not the right, my friend, to be in, so in my opinion, just avoid it completely. If someone offers you signals, do not accept it. Just stay away from that side. Let’s face that, that’s the tarnish side of the Forex space and stay in to the good side
So moving on from signal services, now let’s not get into that again; let’s go into courses and communities. So courses and communities is essentially like a theory test and a practical test with driving.
So for example, right, if you’re in the UK or you have a similar thing in your country. We have a theory test in terms of driving where there’s a written exam before you take the test, and then the practical test is obviously when you actually drive the car.
Courses and communities, is pretty much like that. So courses is the theory work behind trading. Yes you learn certain things but you’re not going to really gain that life experience, that life in the moment, thought process in the market, whereas within the community, if you have that constant mentorship on a weekly, monthly basis that’s when that thought process comes into play, because its super important. And you’re also surrounded by other like-minded traders and along the journey with yourself.
Within courses, it can be quite lonely. I’ve been there before and it sounds cliché to say that; but it really is if you’re interested in a dark room just trading by yourself, it can kind of be a little bit lonely sometimes, whereas if you’re in a community of like-minded traders, you bounce ideas off each other. You are learning from other people; you are fulltime consistently profitable and the mentors that you learn of have the results that you want to acquire; and then it’s just so beneficial because you’re in a good environment. And you’ve probably heard the quote before, you are the average of the five people you spend your most time with, so this is a super important point.
So, for me personally, I can actually back this up because I’ve been in a community of like-minded traders for the past two and a half year, which is Falcon Trading Guidance. And I’ve literally met friends for life, learnt so much, learn enough people on a constant basis who are much above me and who are on the same level and just like trying to help out with the newer members within the community, as well. So you get all aspects within that and it’s super beneficial. And, I think it really speeds up the learning process, so I highly recommend it.
And personally in my experience, avoid signals, courses can be good but communities is where the golden nuggets are going to be.
Adopt a Trading Strategy/Style that fits with your Personality: 04:20
Moving on to the next point, now, which is to adopt a strategy or style which fits with your personality.
So, a quick example of this before we get into it, is that when I first started trading, the first course that I get got involved with and I was trading with the strategy, which was supporting the resistance indicators. And I was taking that once to thrice a month and because it was in line with that strategy. Now, this doesn’t really resonate with me. I wanted to be more active in the markets, and just take advantage of even shorter-term moves.
And so the style of trading right now is, I’m more so taking that 8 to 12 an average per month, and depending whether we have corrective or impulsive conditions. And impulsive conditions, whether that’s gonna naturally pick up a little bit more and corrective maybe a little bit less, but on average 8 to 12 and that fits more with my personality. I can catch moves when they frequently occur, and I’m happy taking the step back from the markets during those corrective conditions, and not taking a trade for the entire week. But then the impulsive conditions kick in and I may take four trades in two days. So, it is what it is. I really like that style of trade right now and so a quick point to mention in there.
And, also with this point to think in scale, you need to make sure that your style and strategy fits with scale and sustainability. So, if you’re trading with a 10,000 pound account right now, right, if you were to scale to six figures, seven figures, eight figures, can the standard your trading the way you’re entering trades, the way your managing trades? Is it still congruent to the trader that you wanna be and can it cope with scale?
So, you know, for example, if you’re just taking so many trades throughout them all plus say 30, 40, 50 plus trades per month, like the score of aggressive side of things, right? And then you scale to six, seven figures, is that gonna be sustainable with your last value? Like, you need to think about this.
And so sometimes that can be hard in the beginning, but as long as you have community of like-minded traders, and you have the aggressive side of things and then you have the conservative side, so you can almost find the unique style for yourself which is going to be available within communities.
Open up a Demo Account: 06:08
So moving on to the next point now, which is to open up a demo account. Now, I think a lot of people get this slightly mixed up on how long they should actually stay on a demo account for. In my opinion it should be no more than three months on average. The reason being is that, you wanna be able to get live, you want to experience those live emotions within the market and the psychology of trading, and you can’t really experience that just trading a virtual money on a demo account.
Now a demo account in my opinion should just be to get used to the interface, get comfortable with the placing trades, managing trades and exiting in trades. It shouldn’t be to, you know, staying for six months, eight months, twelve months plus, and then not really get anywhere. You wanna going live, experience those live emotions and then get into the market.
One thing I do I wanna mention quickly, though, is that if you’re going with a live account, you can start with a really small amount especially with some of the brokers are out there right now. But what I will say personally is that, start with amount that you’ll treat it like a business. If you start too small and it’s almost like play money or side hustle money and you’re treating it like a hobby, you’re not really gonna go for in.
So make sure that you’re treating trading like a business, and you start off with an amount that’s comfortable for you. This is going to be unique for everyone but make sure that you treat it like a business.
Risk Management: 07:17
Next area I wanna cover is risk management. So keeping the risk as minimal as possible throughout your trading career is very important. So I only risk 1% of my trading account per trade that I take and I stick to that always. I always abide by those rules within my plan and I never go against that. But I’ve taught to be within the space that I’ve, you know, blown multiple account. And I’ve never blown my account personally, because I’ve been taught risk management from the start; only ever risked 1% of my account, and it’s kind of hard to blow your account, even when you’re going within those learning stages.
But I’ve talked to people within the space and they blow them like multiple accounts. No offense if you have done that. I get it because if you’re not taught correct risk management, that can easily spiral out of control. But if you keep your risk minimal and keep it between 1 and 3%, then I think that’s the key.
If you’re then going to realm of risking 5 to 10% per trade, let’s say for example, then you go into the mindset of gambler mentality, and I just don’t think that’s the right way to go, and you’re naturally in the mindset of actually trying to flip accounts. Like, why are you trying to flip accounts super quick? Like focus on the results first, capital comes second always. Like, once you’ve got the results, you’ll naturally just attract the capital one way or another, whether that’s for yourself or for investors.
So, there’s no need to get rich quick in this game. Stick to a small risk management and stick to that at all costs.
Backtesting the Trading Strategy: 08:30
Backtesting the trading strategy is an important point as well, not only to gain confidence within your strategy and the way that it works, but actually to see the data behind that strategy to see that, yes, okay, it has an edge over time, yes, over time if I stick to my plan, if I stick to this strategy, I’m gonna be profitable because the probability model was present. So that’s super important. And to backtest it, understand the payback pair behavior, understand the nature of the market.
What I find from talking to a lot of people within the spaces is that, they’ve seemed to see backtesting is this big, to-do test that takes a long time, but it doesn’t have to be that way. If you’re consistent with the process, and even if you’re working into five jobs, or whatever your situations is, right, if you’re consistently backtesting for like one to three hours a day, or even more than you can, then over time that’s gonna add up. You’re going to start to understand the pair behavior across multiple different currency pairs, because this is what something that people don’t understand as well.
There’s 28 different currency pairs, all of those have different nature. Each pair is unique; they all have different characteristics. For example, I know that pound-dollar likes to react well with descendants within ascendants. And I know that I don’t take certain entries on euro-pound, and I don’t take certain entries on Swiss pairs, because they’re naturally more corrective and wicked in behavior. So naturally I am more inclined to take losses on them first, so that’s why I don’t take certain entries on those pairs.
So having that knowledge, and then putting that into your trading plan, is super beneficial, but that only comes through putting in the hard work now, and getting on with the backtesting.
Creating a Trading Plan: 09:52
This ties in very nicely with actually creating a trading plan, so having that information from backtesting then transferring that over to your trading plan is very important.
So within my plan, I suppose it opened a different section, so I have entries, so I literally have 12 go-to setups I stick to, with screenshots and notes, to help me in the cross-referencing process when I’m actually taking a trade. And then I have a section on management, so I have three different management styles, like once again with screenshots and notes to keep it as simple as possible for me to understand it. And then I have pair behavior, understanding how different pairs behave. I have risk management in there, so I only keep it locked in at 1%.
Then I have a pre-trade checklist, so some questions that I naturally move through. There’s more so subconscious now, but I do run-through that list and before I then take a trade to make sure that I’m sticking to my plan.
And then to finish off, I also have a signed signature from myself to say that I’m committing to my trading plan and I’ll stick to this at all cost. Without having that proper plan in place, you’re literally like a rabbit in headlights, in the live market. You don’t know what you’re gonna do; you have no gauge, you have no rules or guidelines to follow, and so you’re literally running loose. But by having a specific business plan in place for the trading, you can then have rules and guidelines to follow in accordance with your strategies, so that’s very, very important.
Treating Trading as a Business: 11:05
So guys, now that the main key bits have been covered, I want to kind of bring you into this space a little bit and give you some practical pieces of advice and from myself. So come on, sit down with me, and we’ll talk through this.
So the main point I wanna cover is that, come into trading with a long-term mindset. Naturally, through social media, we’re conditioned to think that it should happen in three months. And, if it’s not happening in three months, then you need to question your strategy, you need to question your style, you need to question trading altogether and why if it ever actually works. And that’s the wrong mentality of actually approaching this.
It’s like you have to think of trading like a business. With a business, you’re not gonna make it happen in 3 months, right? You have the development stages, the learning stages of actually starting a business. You have a whole entire process to go through before it can actually become a profitable business, right?
Same thing in this. The process is gonna take a lot of time. You’re probably not going to make this happen within three months, so just accept that ahead of time.
It’s gonna take a lot of hard work, a lot of energy, a lot of time, a lot of late nights, early mornings, a lot of sacrifices and a ro—[trails off]. It’s gonna be a rollercoaster ride in many ways, but you’re going to grow into an individual that you never imagined for yourself. You’re gonna become the best version of yourself.
Hard Work: 12:11
And that’s the reason why there’s such a small percentage of people who actually, actually make it happen and become successful in any industry that you go into, right?
You have to work hard. You have to put in the work, put in the time. You have to persevere through actually what most people would actually call you crazy. Like, I’ve seen traders give up on the final hurdle, and what you’ll find is that the universe almost throws like a final test on you before you then break through into consistency and stuff like that.
So I’ve seen that so many times like traders are so close to consistency and actually breaking through, and then they gave up the last hurdle because they it’s not right. And these people are making like you know hitting 5% per month, but then something in their mind tell them that it’s not working.
Like, you have to just push through the entire journey. No matter what anyone says about you, whether it’s friends, close family, things like that, you have to go through it. You have to go through those times because you eventually become the asset. Once you learn this skill, it’s such a sustainable skill and you become an asset because you can generate more returns in the bank which is naturally attractable to investors.
So, you have to appreciate that as a trader coming to the trading space, you are the asset. So, it’s very important that you treat it like a business. Put in the hard work now, build the foundation of yourself, and now you can just impact future generations, so you have to think about that.
Just before we finish up here in this video, I wanna mention a quick analogy which actually resonates quite nicely with trading.
So why is it that within trading, we expect it to happen within 3 months, right? But then you look into someone going into college and university to study your degree, let’s say law, or psychology or whatever it is, and it’s naturally going to take them, like, what, three five seven years right? But then they’re happy because it’s perspective ahead of time, they’re happy drawing that out, they’re happy during that entire course and seeing the process through. Whereas trading doesn’t happen in three months, you’ve questioned the strategy, the style, you’re questioning yourself. Like in three months, three months in the course of lifetime, is nothing. You have to think in the grand scheme of things. Right?
If this takes you five years, at least, go into trading with that mindset. That, “okay, I’m happy for this to take five years, because when I’m twenty-five, when I’m thirty, when I’m thirty-five, forty, whatever that your age is, right, I’m actually gonna be ahead of the 99% of population”. So you have to think about that.
It takes you five years to master it, gain the capital, and stuff like that. You’re in such a good place, so think about the long-term mindset. Do not get caught up into the social media short-term mentality. It’s so easy to spiral out in that mentality. So think of longer-term and always have that vision in mind.
So hopefully that helps. Hopefully it’s been a good video. And that if you’re just starting out on a trading journey, hopefully this helps for you. If you have any further questions, drop them down below in the comments section. Reach out and I’ll happily answer any questions that you may have.
And but other than that, good video, really enjoyed creating this, hopefully this helps. Have a great week guys and I’ll speak to you soon.
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