I know this has been said before and I even know the thread will probably be over before it starts but what sparked me to start the thread was a buddy of mine (I really have no friends so I will use that term loosely). Anyway he said he started a live forex account with $2500 and even got mentoring, did a demo first, said it was good, but blew the live account. This is a guy who could not afford to blow an account, trust me on this one. Then he says at the same time someone he knew blew a $150k live account pretty quick and to add to this insanity, they would even chat about setups and what they learned, blind leading the blind.
So from what I have learned over the years of trading is I don’t really know all that much. What I do know is the best way not to go broke in forex is to trade in this fashion listed below until the confidence and strategy builds.
I had the privilege of someone helping me see things on a new level, a pro at that and no they never told me their secret ingredient, I actually would not have taken it, even if they offered, that is up to me and my journey to discover it. How can I be a long term trader if all I ever do is try and adapted someone else’s winning strategy, it does not work that way. So now I want to give back with what I know that I believe will help the most, especially in the beginning. As you go along you will start to shed off the incomplete and go after what is real and stable.
I could write a lot more and give you a blow by blow but its info overload and our brains only retain a small amount of info each go around, so keep coming back to this post every day and re-reading the list to it really hits home, it's a start not an end-all, mainly to help you not to crash your account, you will be happy after a month and you still have a bulk of your account in hand. Then you will be free to start to understand what it really takes to trade forex. It’s like stumble trip, humble stumble trip, stumble humble, humble, humble.
A word about demos, they are video games and you must see them as such, they are not real and no matter how many times you triple your account it still does not equate into a live account, demos are fun, but trick you to think you’re ready for a live account.
You may not listen to this at all and go out and get all excited and later wonder why you have no money left. Even if your back is against the wall in life and you think financially you are you can make a salary from forex trading right away, stop and first think, does any business work like that, does any business count pips as a successful day. Give yourself a fighting chance and just get screen time in, you are going to start see it little by little, when you are at 5,000 hours you will see more and 10,000 even more. I am not at the 10,000 mark but I am on my way. You need to get to the point where subconsciously you are trading what you learned and what you learn must be correct!
So a few things to start:
1. Use the lowest lot amount in a live account to trade, typically .10/lot, this way you don't lose your account and you learn on a live account. Until you can trade .10/lot success for 4 weeks then you can move up in lot size but incrementally, meaning break even at least. Oh yeah, only 1 lot of .10 not 30 lots trying to recover your position.
2. Do not look at the systems out there or how to trade breakouts do not learn every indicator out there, no magic indie exists, they are tell you the price after the fact. If you continue trading forex you will eventually strip them out anyway. Seminars and mentors are really going to throw back to you what they know about trading, can you honestly trust it, so trust nothing, no one has your best interest at heart in trading, you’re just throwing away your money doing so.
3. Never be concerned that you are trading low lot amounts, it's not a waste of your time if you want to make it in this business you will take this point very seriously.
4. Do not compare yourself to others success (if they really even have the success they say they do). Stay away from the interactive forums for the most part, it will cloud your learning and decision making.
5. Study price action and order flow, what makes the market move. Why the market moves may seems ridiculous to learn at first, but if you do not understand the basic mechanics then don’t think you can trade consistently, a good word to keep in mind…consistent.
That is all for now, I can only help direct you in areas, but I will continue to come back to the facts, you must learn the painstaking steps that all successful traders have.
So from what I have learned over the years of trading is I don’t really know all that much. What I do know is the best way not to go broke in forex is to trade in this fashion listed below until the confidence and strategy builds.
I had the privilege of someone helping me see things on a new level, a pro at that and no they never told me their secret ingredient, I actually would not have taken it, even if they offered, that is up to me and my journey to discover it. How can I be a long term trader if all I ever do is try and adapted someone else’s winning strategy, it does not work that way. So now I want to give back with what I know that I believe will help the most, especially in the beginning. As you go along you will start to shed off the incomplete and go after what is real and stable.
I could write a lot more and give you a blow by blow but its info overload and our brains only retain a small amount of info each go around, so keep coming back to this post every day and re-reading the list to it really hits home, it's a start not an end-all, mainly to help you not to crash your account, you will be happy after a month and you still have a bulk of your account in hand. Then you will be free to start to understand what it really takes to trade forex. It’s like stumble trip, humble stumble trip, stumble humble, humble, humble.
A word about demos, they are video games and you must see them as such, they are not real and no matter how many times you triple your account it still does not equate into a live account, demos are fun, but trick you to think you’re ready for a live account.
You may not listen to this at all and go out and get all excited and later wonder why you have no money left. Even if your back is against the wall in life and you think financially you are you can make a salary from forex trading right away, stop and first think, does any business work like that, does any business count pips as a successful day. Give yourself a fighting chance and just get screen time in, you are going to start see it little by little, when you are at 5,000 hours you will see more and 10,000 even more. I am not at the 10,000 mark but I am on my way. You need to get to the point where subconsciously you are trading what you learned and what you learn must be correct!
So a few things to start:
1. Use the lowest lot amount in a live account to trade, typically .10/lot, this way you don't lose your account and you learn on a live account. Until you can trade .10/lot success for 4 weeks then you can move up in lot size but incrementally, meaning break even at least. Oh yeah, only 1 lot of .10 not 30 lots trying to recover your position.
2. Do not look at the systems out there or how to trade breakouts do not learn every indicator out there, no magic indie exists, they are tell you the price after the fact. If you continue trading forex you will eventually strip them out anyway. Seminars and mentors are really going to throw back to you what they know about trading, can you honestly trust it, so trust nothing, no one has your best interest at heart in trading, you’re just throwing away your money doing so.
3. Never be concerned that you are trading low lot amounts, it's not a waste of your time if you want to make it in this business you will take this point very seriously.
4. Do not compare yourself to others success (if they really even have the success they say they do). Stay away from the interactive forums for the most part, it will cloud your learning and decision making.
5. Study price action and order flow, what makes the market move. Why the market moves may seems ridiculous to learn at first, but if you do not understand the basic mechanics then don’t think you can trade consistently, a good word to keep in mind…consistent.
That is all for now, I can only help direct you in areas, but I will continue to come back to the facts, you must learn the painstaking steps that all successful traders have.
It's easy to be humbled but hard to be humble.
