My name is Alex B
I would like to share some tips and bits with you people. It's all from my own experience, please this is strictly my opinion. I am not a FX Guru, I am just an ordinary guy like you. So please if you find my materials interesting read them and share your opinion and let mean and stupid comments be avoided
.
I would like to inform you that all my work is from my own experience, and only my opinion.
First thing I would like to begin with - The trading system!
If you want to succeed in FOREX trading you should have a trading system. Probably more than a million trading systems exists up to now. How good they are, its a different subject.
From my own experience I found out that a trading system is suitable mostly for its creator. And the people who are trying to use the system after usually fail. Funniest part is when a trading system is created it works before it gets public. A lot of people claim to have made money with various different trading systems, but after system gets public it stops to work somehow. And no longer can people use it.
Market is changing all the time and its never the same. There are general changes every few years and not so big changes may be every month. That is one of the main reasons why you cant use someones trading system for a long time to make money.
Second of all, trading system has to suit your character and personality. Is has to be a part of yourself and of your style of trading. We people are very different one from each other, that's why someone else system may not work for you, which is perfectly understandable.
My approach in FX is very different, I give myself a chance to create my own trading system. This is not easy for the beginners and newcomers to FOREX, but in time when you have got more experience in trading you will be able to do it.
There is a list with important notes and questions bellow. Everyone should read and think very well about every single one of them. They are all important. You have to be able to answer each one of them if not now, in time at least. Those are guide lines how to build up your own trading system. And you don't need anything more than this. No complicated indicators and other crap to tell the future. If you do that and after follow it correctly, you will have the best trading system, which will suit you and serve you, because it is created by you.
Read, you might find something useful.
Attachment
Personality
1 What kind of person you are?
- Before entering the markets you have to think very well about your personality. Thats your primary strength and weakness there. Describe yourself very well, because you know yourself best. Then think about it well.
2 What are your goals in FOREX?
-This is very important as well. What do you really want from FOREX? Is it extra income? You want to get very rich? You find it as a challenge suitable for you? Answer this yourself and then think about it well.
3 How much knowledge do you have about FOREX markets?
- Do you have any knowledge from before about the FOREX markets and investing?
4 Do you have any experience from before?
- If you have any experience from before, either bad or good. Think about it very well.
5 What kind of skills do you got?
- What kind of skills do you got and you think you can use in order to help your trading? Have you ever did you own business, or been in the area of accounting etc...
6 Do you have any special abilities?
7 How serious you are going to be about trading?
- That is something very important as well. How are you taking FOREX trading as a paid job, or as hobby in your free time. Its a strong factor for your success like a professional trader.
8 What other interests do you got?
9 How are you going to fight your weaknesses?
- Everybody has weaknesses. Our primary target is to create a plan how to fight them, because if you did not realize yet, trading is all about you and yourself. There are no magical trading systems, indicators and c*** which will turn you into super trader just like that. If you want to succeed you need Iron discipline, infinite patience, very healthy and positive mind set . Now that is a problem number one for the most people in the world think about it well. If you have to face those problems how are you going to do it?!
Trading Philosophy
1 What do you believe about the FOREX market and its nature?
- The power of believe. It is one of the strongest. Think about the markets very well and what actually is the core that drives them. It is very important that you understand its nature. That thing wont come easy off course, after time may be, when you gather more experience.
2 How much time you plan to devote to trading?
- This is an important issue as well, if you dont have much time in your daily life. I know different people have different lives, but if you really need to succeed in FOREX. You will have to find the time to devote and not doing it just by the way.
3 What do you really want from FOREX?
- What is the main reason that drives you from inside? What do you really hope to achieve with your trading? Is it piles of money, more time with your family, more luxury, or just help the others around you by supporting them etc... think about it very well, because in time of crisis with your trading you have to come back here and remember your primary goal and that has to keep you going.
Competence is your friend
1 Do the trades you really understand. This will be your advantage.
Understanding versus Knowledge
You can put knowledge in a bottle (or a book) and sell it like candies.
To understand is to combine knowledge with experience. Not someone else experience your own. Experience comes from doing, not from reading about what someone else did (though that can add to your knowledge).
Knowledge usually means a collection of facts a persons range of information or the sum of what is known. But understanding implies Mastery the ability to apply information and get the desired results.
Create your criteria
1.Describe the characteristics of a profitable trade.
- Before entering every trade, you have to know what you are looking for. You have to know what a profitable trade is and you need to put that into your mind when you are planning to trade. Your trade has the characteristics, which will make it profitable and this needs to be defined very well into your trading system. Are you looking for shorts or longs opportunity, the move that you going to trade is short term or it has good opportunity to turn into long term and things like that.
2. Entry criteria
- Define your criteria to enter your trades, like that you going to shrink your area of search and you wont trade everything that market offers. You've got to understand that, if you trade less your negative trades will be less.
3. Exit criteria
- That is equal important as the entry. It has to be planned and defined before even entering the trade. That way, if something goes wrong you wont panic, youll just do what you have planned for exiting the trade.
Some people really have trouble exiting trades. It usually happens, when they are afraid. It is called fear of loss. Fear of loss means when you are in trade and its more than obvious that your trade is going against you, but you dont exit. You believe that you will lose pips or something by exiting the trade. You have to realize there will be other opportunities as well.
Choose what to trade and stick to it.
1. What currency pairs are you going to trade?
- Different currency pairs act differently to the market movements. There are currencies that trend more others that do more ranging. You have to decide what to trade and stick to it. That way you will get to know this pairs, which will help you later on with the trading decisions, because you will have some experience with that pairs. It is very important to do this, dont underestimate it. I strongly recommend that you do not trade more than two currency pairs.
2. Why are you going to trade them?
- Only you need to know the reason why. And describe it to yourself with all the details. That is why its your Trading system, because it has your personal touch and you can adjust it to your character.
Search Strategy
1 How to find trades that meet your criteria?
- After creating your criteria, you have to implement it into your searching strategy. You've got to be specific about your time frames you are going to use and other details.
2 What style of trading are you going to use?
- Long term
-Short term
Both of them could be very profitable. It depends actually which one will fit better your personality. You are going to need here some more experience, after you can decide actually. Both of those styles have their advantages and disadvantages. I wont say which is better, this has to be decided by you.
Strategy for entering
1. When to buy?
- Think about the perfect market conditions for buy trades. What is actually necessary for you in order to enter a buy trade, your own thoughts and conditions to do it? Try out few different strategies and choose which one suits best your buy trades.
2. When to sell?
- The same has to apply for your sell trades.
3. How much are you going to risk per trade?
- This is something really important. You need well defined strategy about how much are you going to risk per trade. Are you going to treat all trades the same, will you risk the same percentage in every trade or this will depends on how good the trading opportunity will be.
4. Do you have a proper way to manage your capital?
- Money management is one of the most important things in trading. Most of the people actually fail in FOREX, because they lack of it. It is the same like having your own business. People dont build businesses without money management, the ones that do it without it always fail. Think about it. I already point out in the beginners lessons how much is necessary to be risked in every trade. You can stick to it and you wont make a mistake.
Keep track
1.How are you going to monitor your trades?
- There are may be more than one hundred ways to do it. Just choose one and stick to it.
2. How often you plan to watch them?
- This is something very important as well. Because you cant sit all day in front of your PC, Tablet, Notebook or whatever you use to monitor your trades. You have a personal life as well and how often you will monitor trades actually will very much depend on your style of trading (long term, short term). There are specific details about those two trading styles and people that use them they know about them.
Exit Strategy
1.When to take profit?
- Every trade develops different from the previous one and the next one. They are never the same, so thats why you have to decide exactly when to take profit, if your trade is not reaching your particular target. There are many different scenarios about taking profit, which we wont discuss here. We will talk about it in our live Sunday talks. Many times you will decide on the way to take profit, because market is unpredictable and you have to adjust to it Market wont adjust to you.
2. When to take loss?
- I think this one is even more important than the previous. Usually you are going to use STOP-LOSS, some people dont. And I dont seem to understand why!? Trading without stop-loss is like preparing your own rope before the hanging. Think about your take-loss moment, it is very important. I dont want to give you other tips here , we will discuss more in our live meetings.
3. How are you going to handle mistakes?
- Are you going to freak out, every time you done a mistake and go drink in the bar and feel pity and pathetic about yourself. Or you are going to sit down, think and re-think what happened, analyze your actions, find the mistake, deal with it and make sure you dont repeat it next time.
I hope you understand what I am talking about. This pretty much has to apply in our lives, not only in FOREX.
Emergency plan
1.What to do when you dont know what to do?
- It may sound little foolish to you, but you need a plan for this moments as well. Because believe me they will come to you and if you are not prepared, you are in deep trouble. You can damage your psyche and never recover after.
2. What you going to do when system will stop working?
- This is strange one as well isn't it? Think about what exactly you are going to do when the system you use to trade stops working.
I would like to share some tips and bits with you people. It's all from my own experience, please this is strictly my opinion. I am not a FX Guru, I am just an ordinary guy like you. So please if you find my materials interesting read them and share your opinion and let mean and stupid comments be avoided
.I would like to inform you that all my work is from my own experience, and only my opinion.
First thing I would like to begin with - The trading system!
If you want to succeed in FOREX trading you should have a trading system. Probably more than a million trading systems exists up to now. How good they are, its a different subject.
From my own experience I found out that a trading system is suitable mostly for its creator. And the people who are trying to use the system after usually fail. Funniest part is when a trading system is created it works before it gets public. A lot of people claim to have made money with various different trading systems, but after system gets public it stops to work somehow. And no longer can people use it.
Market is changing all the time and its never the same. There are general changes every few years and not so big changes may be every month. That is one of the main reasons why you cant use someones trading system for a long time to make money.
Second of all, trading system has to suit your character and personality. Is has to be a part of yourself and of your style of trading. We people are very different one from each other, that's why someone else system may not work for you, which is perfectly understandable.
My approach in FX is very different, I give myself a chance to create my own trading system. This is not easy for the beginners and newcomers to FOREX, but in time when you have got more experience in trading you will be able to do it.
There is a list with important notes and questions bellow. Everyone should read and think very well about every single one of them. They are all important. You have to be able to answer each one of them if not now, in time at least. Those are guide lines how to build up your own trading system. And you don't need anything more than this. No complicated indicators and other crap to tell the future. If you do that and after follow it correctly, you will have the best trading system, which will suit you and serve you, because it is created by you.
Read, you might find something useful.
Attachment
Personality
1 What kind of person you are?
- Before entering the markets you have to think very well about your personality. Thats your primary strength and weakness there. Describe yourself very well, because you know yourself best. Then think about it well.
2 What are your goals in FOREX?
-This is very important as well. What do you really want from FOREX? Is it extra income? You want to get very rich? You find it as a challenge suitable for you? Answer this yourself and then think about it well.
3 How much knowledge do you have about FOREX markets?
- Do you have any knowledge from before about the FOREX markets and investing?
4 Do you have any experience from before?
- If you have any experience from before, either bad or good. Think about it very well.
5 What kind of skills do you got?
- What kind of skills do you got and you think you can use in order to help your trading? Have you ever did you own business, or been in the area of accounting etc...
6 Do you have any special abilities?
7 How serious you are going to be about trading?
- That is something very important as well. How are you taking FOREX trading as a paid job, or as hobby in your free time. Its a strong factor for your success like a professional trader.
8 What other interests do you got?
9 How are you going to fight your weaknesses?
- Everybody has weaknesses. Our primary target is to create a plan how to fight them, because if you did not realize yet, trading is all about you and yourself. There are no magical trading systems, indicators and c*** which will turn you into super trader just like that. If you want to succeed you need Iron discipline, infinite patience, very healthy and positive mind set . Now that is a problem number one for the most people in the world think about it well. If you have to face those problems how are you going to do it?!
Trading Philosophy
1 What do you believe about the FOREX market and its nature?
- The power of believe. It is one of the strongest. Think about the markets very well and what actually is the core that drives them. It is very important that you understand its nature. That thing wont come easy off course, after time may be, when you gather more experience.
2 How much time you plan to devote to trading?
- This is an important issue as well, if you dont have much time in your daily life. I know different people have different lives, but if you really need to succeed in FOREX. You will have to find the time to devote and not doing it just by the way.
3 What do you really want from FOREX?
- What is the main reason that drives you from inside? What do you really hope to achieve with your trading? Is it piles of money, more time with your family, more luxury, or just help the others around you by supporting them etc... think about it very well, because in time of crisis with your trading you have to come back here and remember your primary goal and that has to keep you going.
Competence is your friend
1 Do the trades you really understand. This will be your advantage.
Understanding versus Knowledge
You can put knowledge in a bottle (or a book) and sell it like candies.
To understand is to combine knowledge with experience. Not someone else experience your own. Experience comes from doing, not from reading about what someone else did (though that can add to your knowledge).
Knowledge usually means a collection of facts a persons range of information or the sum of what is known. But understanding implies Mastery the ability to apply information and get the desired results.
Create your criteria
1.Describe the characteristics of a profitable trade.
- Before entering every trade, you have to know what you are looking for. You have to know what a profitable trade is and you need to put that into your mind when you are planning to trade. Your trade has the characteristics, which will make it profitable and this needs to be defined very well into your trading system. Are you looking for shorts or longs opportunity, the move that you going to trade is short term or it has good opportunity to turn into long term and things like that.
2. Entry criteria
- Define your criteria to enter your trades, like that you going to shrink your area of search and you wont trade everything that market offers. You've got to understand that, if you trade less your negative trades will be less.
3. Exit criteria
- That is equal important as the entry. It has to be planned and defined before even entering the trade. That way, if something goes wrong you wont panic, youll just do what you have planned for exiting the trade.
Some people really have trouble exiting trades. It usually happens, when they are afraid. It is called fear of loss. Fear of loss means when you are in trade and its more than obvious that your trade is going against you, but you dont exit. You believe that you will lose pips or something by exiting the trade. You have to realize there will be other opportunities as well.
Choose what to trade and stick to it.
1. What currency pairs are you going to trade?
- Different currency pairs act differently to the market movements. There are currencies that trend more others that do more ranging. You have to decide what to trade and stick to it. That way you will get to know this pairs, which will help you later on with the trading decisions, because you will have some experience with that pairs. It is very important to do this, dont underestimate it. I strongly recommend that you do not trade more than two currency pairs.
2. Why are you going to trade them?
- Only you need to know the reason why. And describe it to yourself with all the details. That is why its your Trading system, because it has your personal touch and you can adjust it to your character.
Search Strategy
1 How to find trades that meet your criteria?
- After creating your criteria, you have to implement it into your searching strategy. You've got to be specific about your time frames you are going to use and other details.
2 What style of trading are you going to use?
- Long term
-Short term
Both of them could be very profitable. It depends actually which one will fit better your personality. You are going to need here some more experience, after you can decide actually. Both of those styles have their advantages and disadvantages. I wont say which is better, this has to be decided by you.
Strategy for entering
1. When to buy?
- Think about the perfect market conditions for buy trades. What is actually necessary for you in order to enter a buy trade, your own thoughts and conditions to do it? Try out few different strategies and choose which one suits best your buy trades.
2. When to sell?
- The same has to apply for your sell trades.
3. How much are you going to risk per trade?
- This is something really important. You need well defined strategy about how much are you going to risk per trade. Are you going to treat all trades the same, will you risk the same percentage in every trade or this will depends on how good the trading opportunity will be.
4. Do you have a proper way to manage your capital?
- Money management is one of the most important things in trading. Most of the people actually fail in FOREX, because they lack of it. It is the same like having your own business. People dont build businesses without money management, the ones that do it without it always fail. Think about it. I already point out in the beginners lessons how much is necessary to be risked in every trade. You can stick to it and you wont make a mistake.
Keep track
1.How are you going to monitor your trades?
- There are may be more than one hundred ways to do it. Just choose one and stick to it.
2. How often you plan to watch them?
- This is something very important as well. Because you cant sit all day in front of your PC, Tablet, Notebook or whatever you use to monitor your trades. You have a personal life as well and how often you will monitor trades actually will very much depend on your style of trading (long term, short term). There are specific details about those two trading styles and people that use them they know about them.
Exit Strategy
1.When to take profit?
- Every trade develops different from the previous one and the next one. They are never the same, so thats why you have to decide exactly when to take profit, if your trade is not reaching your particular target. There are many different scenarios about taking profit, which we wont discuss here. We will talk about it in our live Sunday talks. Many times you will decide on the way to take profit, because market is unpredictable and you have to adjust to it Market wont adjust to you.
2. When to take loss?
- I think this one is even more important than the previous. Usually you are going to use STOP-LOSS, some people dont. And I dont seem to understand why!? Trading without stop-loss is like preparing your own rope before the hanging. Think about your take-loss moment, it is very important. I dont want to give you other tips here , we will discuss more in our live meetings.
3. How are you going to handle mistakes?
- Are you going to freak out, every time you done a mistake and go drink in the bar and feel pity and pathetic about yourself. Or you are going to sit down, think and re-think what happened, analyze your actions, find the mistake, deal with it and make sure you dont repeat it next time.
I hope you understand what I am talking about. This pretty much has to apply in our lives, not only in FOREX.
Emergency plan
1.What to do when you dont know what to do?
- It may sound little foolish to you, but you need a plan for this moments as well. Because believe me they will come to you and if you are not prepared, you are in deep trouble. You can damage your psyche and never recover after.
2. What you going to do when system will stop working?
- This is strange one as well isn't it? Think about what exactly you are going to do when the system you use to trade stops working.