In my last blog post, What Basketball & Jazz Can Teach Every Trader, I made the assertion that all traders can develop and learn the magic secret talent of all great performers that I called “Court Sense”.
This weeks FxSuccess Webinar learning series will reveal the key skill every trader needs to develop in order to adapt to the NEW Rules of trading Forex in 2011.
The primary skill that I am speaking of is how to see “market flow” in real-time as the market is happening, this is the gateway that every trader needs to become a successful trader with “Court Sense”.
Unfortunately, most foreign currency traders develop skills to only explain market events after it happens, and this is a result of being stuck in what we call the lowest level of learning the “Court Sense” of successful traders.
Here is the learning dilemma many traders face when looking to learn breakthrough performance..
If Forex trading can be broken down into simple parts, and reduced to simple actions, why do so many traders struggle and fail to achieve long term successful profits?
The answer lies in Forex education. The reality is that it is not only what you learn, but how you learn that determines your ability to achieve long-term profit and success.
5 Levels Of Learning For Every Successful Trader
The FxST Trader Certification and Forex mentor ship program is premised upon a learning strategy that identifies “experience” and “action learning” as the best and fastest way to performance breakthrough. FxST identifies 5 levels of learning in the progression of certifying new professional traders:
- Level 1 Learning – Content Assimilation
- Level 2 Learning – Gaining Understanding
- Level 3 Learning – Building Understanding
- Level 4 Learning – Build Capacity For New Understanding
- Level 5 Learning – Building Capacity For Shared Understanding
Unlike traditional learning models that most of us have experienced in primary and post-secondary education systems, the best Forex education requires students to go beyond the “mechanics” of skill and craft of trading. Specifically, traditional education often views students as empty vessels into which knowledge and content is poured into the “empty” minds. In this way students are seen as passively absorbing information and the assumption is that students will easily move from theory to practice with relative ease.
“Memorizing” content, language/terms and processes is necessary, but insufficient for traders who seek long term consistent profits (i.e. successful traders).
Memorizing Is Not Understanding
At the FxST Forex certification school, we call this “Level 1″ learning.
Yes, Level 1 learning is important, but a huge mistake for many new traders since it is an over focus on memorizing content. Some traders spend up to 3 years memorizing every single charting technique and term thinking that the more they “memorize” the better chance for success.
We call this kind of trader a “Forex Mechanic” because they depend on the static element of Forex and develop an impressive ability to describe the events of a trading day after they happen. What they fail to do is develop the trader skill of being able to make decisions of when to enter and exit the market in real time.
The 3 biggest problems with Level 1 Learning for all Forex Traders are the effects of:
- Knowledge Obsolescence
- Forgetting
- Contradiction
The most dangerous is when what you learn is no longer true. In today’s market, trader knowledge becomes obsolete faster and faster due to a dynamic and new emerging global economy.
Old trading rules simply do not apply.
Forgetting is common and expensive for new traders learning Forex. Many traders use demo accounts to practice and to eliminate the effects of “forgetting” the so called “right way”. Unfortunately, by the the time a trader “gets it right”, often the knowledge is obsolete.
This is why you never see any one “automatic Forex trading system” that actual works for the long term. In the short term any system can get lucky and produce amazing short-term results.
Obsolescence and forgetting are opposite sides of the same coin.
Contradiction is that natural path where the trader believes that the more terms, indicators and charts they learn the greater the chance for success.
To their surprise, Forex Mechanics discover that there are no universal agreement indicators.
Over the month I will expand upon each level of learning and explain the exact steps each trader can take to develop ‘Court Sense” skills necessary for Consistent Profits and Emotion-Free Trading.
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p.s. I highly recommend for all traders to attend this week’s FxSuccess Webinar Learning Series where I will be interviewing master trader and mentor, Andy Garcia were he will share is journey through the 5 levels of learning and much, much more….
Title: The New Rules of Forex: Case Study Adapting For Success
Date: Wednesday, September 7th, 2011
Time: 7:00 PM – 8:30 PM EDT
In this new trading environment, long term reliability has all but diminished, and a resurgence of interest in taking profits out of the market quickly (i.e Scalping)
Andy Garcia’s story highlights how any trader can adapt to the new market conditions in 2011.
Specifically, many traders like Andy started to avoid scalping as a Forex trading strategy because traditional ways of scalping Forex were cumbersome, and energy intensive. Furthermore, novice traders avoided scalping all together due to misconceptions and myths (i.e. higher capital requirements, high risk for small return).
The amazing story of Andy’s success will be the focus of this weeks FxPM Learning Series Webinar that will reveal how a long term position trader is using FxPM beyond scalping.
Join us for a FREE Webinar Wednesday, Sept 7th, 2011 at 7:00 PM EST exposing the Secrets of how a Professional Swing/Position trader has incorporated Price Action using the FxPM Software as a critical Cash Flow Strategy. Don’t let the New Rules of Forex destroy your business, Learn Exactly how to prepare for Success!
Matrix, and is able to capitalize with a profit of 37 pips! As it is a day where non-farm payroll numbers were released, the market was moving rapidly. Josh is careful in placing his stops, as during days such as this one, a position can easily reverse itself and the trader can find himself down huge. He also takes a trade on the USDCHF and after carefully placing his stops, he breaks-even on the trade. Learn how to consistently profit in the Forex market by identifying precise entries and exits with FXPM