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How to take your trade entry at First stab

Do you take your trade at 1st stab or do you rather wait for confirmation?

First stab will give you the best opportunity to manage and remove risk out of the position much sooner compared to waiting on confirmation.

To be successful with first stab entry, you will need a comprehensive understanding of price and the market.

First stab explained

It is important that we understand the meaning of first stab.

First thing to keep in mind is, we are never chasing price, we are always waiting on price to come to us.

In the Mastering Course we explain this very clearly, this concept alone can be difficult for traders to adopt. In order to take a trade at first stab we must:

  • Buy into the face of a bear candle
  • Sell into the face if a bull candle

We are not interested in the type of the candle or its name but we are interested in is price delivery thus how price arrives to our entry level.

Discover your key level

A First stab entry needs to be supported by a key level and as price comes into the level you take the trade on the first hit. This is by nature not what we do as humans. Most times in life we desire confirmation before committing to a situation. This also plays out in trading and it is something that most traders need to adjust to before becoming successful at trading.

Considerations when taking First stab

Nothing in trading is as simple as just an idea. All things need to be considered and trying to get everything to line up is near impossible.

Some of the factors that you should consider regardless if you are taking a trade at first stab or waiting for confirmation.

       1 – Time of day

       2 – Liquidity

       3 – News events

      4 – Price delivery. How price arrives to your entry

      5 – Price patterns (These are not traditional patterns but price liquidity patterns)

      6 – Key level

      7 – Definition at the key level (strong or weak)

      8 – Support – Resistance

Discomfort will create comfort

There are ways to become comfortable trading first stab, we discuss these methods within the Mastering course. Over time you will turn the discomfort of trading first stab into a comfort.

It is realizing that you have a much greater chance of survival by waiting for price to come to you and take it on first stab.

A metaphor for this is if you watch a documentary on an animal that stalks its prey.

The stalker will wait and wait until the prey is near enough before pouncing. This process increases the chance of a win for the stalker as well it saves energy.

In trading if you are chasing the price or waiting for confirmation, it will become mentally taxing.

The video included is from the Mastering Course. 1st stab Entry part – 1

https://eurusd-fxtrader.com/course/1st-stab-entry-part-1/

Happy trading,

Steve T.

Logo EURUSD Forex Trading

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This valuable video ($259), includes:

  • Exclusive and High Value Trade Setups!
  • 3 Hours of Video Content
  •  5 Training Modules
  • 14 Videos
  • Hand Book & 50 Slides

EXCLUSIVE  BONUS TWO   

ONE MONTH ACESS TO MASTERMIND INNER CIRCLE  FREE!

For a whole month you will be allowed to walk among the best traders, and get access to all the resources they have at their disposal. Of course, if you want to stay afterwards, your are more than welcome!

Excl​​​​​usive Weekly Webinar 'Wednesday Ask Me Anything

Every Wednesday, 1 hour Q&A Webinar, 2pm ACT-Canberra

Daily Session Previews with Trade Levels

Access to closed Mastermind Facebook Trading Group

Live Updates during Trading Sessions

Access to Live Updates in closed Mastermind Facebook Group

Weekly strategy video

Outlook on the coming trading week with insider tips

Fundamentals newsletter

Insight in long-term market trends and indicators on a bullish or bearish outlook

EXCLUSIVE BONUS THREE  

100% MONEY BACK GUARANTEE 

If this course somehow does not live up to your expectations, we will give you a FULL REFUND within 14 days of purchase!

How to Break The Losing Cycle

Why Most Traders Fail

Let’s define what failure is in trading terms. There really is only one event that signals failure and that is when the trader has detached themselves from self-discipline and the result is to blow up your trading account.

Most traders know having a string of losing trades is not a failure. It might be because of poor trade selection and over trading, but these are often signals for you to be aware of to adjust your approach.

Profits need to be added to your account gradually. Losers taken in the same way, gradual. Either way, it should not have any huge impact on your trading account or your trading psychology.

For most, there is the need for more. We all want more money, more things, more stuff, more time, etc. Traders want more gains. With the gains comes more exposure. The exposure then eats away at your trading psychology and your self-discipline becomes fractured.

The fractured mind is now struggling to see the reality and the process that is needed for disciplined trading success.

The Big Fail

What I am about to tell you is something that is the number one reason for retail traders failing. It is not because of anything else but this.

We need to talk about what is going on in the trader’s mind that causes this number one failure.

Traders fail because of one big trade. It is the one trade that they believe will reverse and take them back to break-even or a tiny loss. The same trade gets added to or better known as “averaged down”.

The initial trade in your mind would always be a winner. You never gave it a thought it could be a loser. This trade is worthwhile investing in due to various supportive reasons. As the trade moves against your original entry, you pin point another level to enter the trade. This now gives you an improved average entry.

At this stage, any money management rules have been broken, but you have quickly justified the position. Reality is, your judgement is clouded and very biased.

As the trade continues to work against you, your stress and frustration levels build as you identify another trade entry to average the entry level. Price only needs to pull back 50 pips to get you out of jail.

Your rotten luck continues and price has moved several hundred pips away from your original entry point and a margin call is nearing. You are in no state of mind to make any sound trading decisions. I liken this to a person who has had way too much alcohol before driving a car.

Getting out of this hole will take time, money and patience, these are the very things you are short of.

The outcome of the big fail normally leads to a trading account that has been smashed to pieces. Let’s look at why this happens.

Why it happens

Below is a list of reasons. Most traders will have most of these issues and thus the big fail.

  • A need to be right

In life most people do not except that they are wrong. They find ways to justify their position and prefer to blame people or circumstances rather than taking full responsibility for their situation.

This will play out in your trading even though you are not aware that this is happening. A need to be right makes us humans feel better about ourselves. Stripping back to self-reflection is not one of our better human traits.

  • Greed

I have mentioned in other blogs the need for more. Trading offers a great opportunity for more. It is the very thing that makes traders break money management rules.

Profits for most traders grow very slow but blow up their account in a brief moment.

The patients to build a trading account in a methodical manner is difficult for most. Once the greed function takes over, leverage is abused and the account is demolished.

  • A polluted mind

When you are in a situation that is not considered “normal” your body functions in a different state. If you have ever been in a road accident, physical fight or put out of your comfort zone, your brain will start to starve from oxygen. The result is that you do not think and respond to the situation that is best for your outcome. You become a different person. Fight or flight takes over.

When you have strayed away from self-discipline, your mind and physical state change. You now can no longer see clear, think rational and make trading decisions that will support you in a positive state.

Instead you look for the short term, quick turn-around home run solutions.

  • Letting go

To trade, you need to let go of outcome. As traders, we are looking for a high odds trading opportunity. There is no certainty of the outcome.

Day to day we try to control many of our daily events. The time we eat, go to bed, how we communicate situations, etc. We are conditioned to control, and the result is that we cannot let go.

Death for most is scary and we fight death. Perhaps this is because we have no control over when, where and how we die so we fight it our entire lives. What if we were to “let go” and allow nature to play out of its natural course, perhaps then we would have little fear of death and view it as a cycle of nature as one person makes way for the other?

Traders do not want to let go of outcome, They want to somehow influence and control the event. This is done by averaging into the trade with a do or die attitude.

  • Do not take it personally.

We view that our trade outcome (win or lose) reflects our own existence or who we are. By doing this,this we now apply this thinking upon our trades. If the trade is a winner, we are personally winners and if we lose; we are personally losers. We think the trade reflects who we are. It should not.

The trade is only a transaction with a chance of winning or losing. It is nothing more than this.

Because of us taking things in life personally, we take the losing trade personally as a negative of our being.

Many people say they do not take things personally. It is very difficult not to do so. Start thinking about how much we take personally. Every day we react to various situations because we take things personally.

Our trades are a simple financial transaction with a win-or-lose outcome. There is nothing personal.

We need to manage the trade with discipline and a focused approach, let the outcome be what it will be.

The book The four agreements’ has many helpful hints for traders.

  • We assume we know what will happen next.

The cycle continues. By using the need to be right, greed, polluted minds, unable to let go and taking things personally, we now assume that we know what will happen next.

By thinking this our mind is biased towards an outcome. It is an outcome we cannot control or even influence but yet we assume we know where price is heading and how it will respond.

By assuming what will happen next makes us feel good when the event is proven correct. This very endorphin release is a drug. This drug impedes us trading with the focus on execution, and instead we look at outcome.

Consider how often we make daily assumptions and how many of those assumptions can be wrong. How can we think that making assumptions upon the financial markets can be positive to our trading.

The Real Work

Trading will push you and shove you from one end of your mind to the other. You must be mentally stable whilst trading. You also do not want to overthink everything. Try to be in the flow without forcing yourself to be someone you are not.

Discover your discipline strength and weaknesses.

Successful trading is a road of self-discovery that is expressed through your trading results.

The Losing Cycle

You finally believe that you have shifted your trading ability to a level of profitability and consistency. After all, you have been trading with discipline and a small portion of good luck for several months.

The last time you had a major drawdown on your trading account was when you abused your leverage allowance and averaged into a trade. It was only a lapse in concentration otherwise it too would have been a winning trade and you swore that you would never make that same mistake again.

Over time, the pain of the “out of control” losing trade softens. We don’t forget but we believe that we have moved on and matured as a trader and will manage the situation better if this ever happens to you again.

Five Survival Techniques

Remaining grounded and in touch with your own emotions can be the most difficult situation to manage as a trader. Every trader will have a unique manner in how they view and trade the market. There is no right or wrong.

The real difference between success and failure will be how you manage yourself. The list below will give you hints on where you might need to develop as a trader to avoid the large drawdowns on your account.

  • Quality trade selection (Understanding the market)
  • Tight money management and risk control (Risk management model)
  • Excepting the trade outcome before you enter the trade (Understanding the flip of the coin)
  • Remaining humble win or lose (No room for ego)
  • Strong focus on process and not outcome (Manage pips not dollars)

Note that the five survival techniques above have everything to do with YOU. If a trader can become excellent at all five techniques, then success will follow. If the trader fails at just one of these, then it will be a race to the bottom.

Can you for a moment imagine that you have all five techniques mentioned totally anchored within your trading psychology? What type of trader would now be or could become if you mastered the list provided?

This is the secret to trading. Every trader will have a method or an approach that works for them, but without the development of your own mind, you will only lose at trading.

As a guide, it will take most new traders two to three years to be comfortable with a trading approach, trading platform and the market. It is after we have established this, we move towards self-development and this is where the true challenge for the trader begins.

Traders are polluted with advertising rubbish that offers traders an easy road to success. The truth is, there is no easy road to success. The success needs to be earned and if you hang in there long enough and become a well-rounded trader and person, success will gradually feed into your trading account.

The Forex Trading Greed DEMON!

I want to discuss percentage gains (and losses) traders broadcast on social media and within Facebook groups.

Retail traders push to gain 4% or more each week and see themselves in the window of success. Yet professional traders believe 1% or 2% gain per week is massive.

This overconfidence and pushing towards big gains is dangerous.  I warn about this in my E-Book,  control your account gains if you want to trade long term.

Professional traders see 1% - 2% as a solid success!

Retail traders scoff at this, arguing this is insignificant. Yet professional traders are around a long time while retail traders drop as flies. Do you wonder why? It's called leverage.

Retail trader and professional trader

There are usually differences between both types of traders. The professional trader will use a much lower level of leverage and sometimes no leverage at all, meanwhile the retail traders have a much smaller size account to trade from, and use leverage to bloat gains.

Most retail traders will counter saying, “How else can I make money unless I use leverage?” That’s a valid question; however, first thing to remember is that to play, you must stay in the game!

Most retail traders will blow up their trading account for these two reasons.

  • Abusing leverage
  • Average down the loss

Most traders will slip up and do both simultaneously.

Becoming conditioned to the gains

In our society we become conditioned to all circumstances; trading is no different. A trader on a good winning streak can easily add 1% or more to their trading account each day by using leverage and averaging down. The situation can even be positive to your energy system as you believe that price will at some point return to your break-even level.

It is at this point that you have lost almost any control over your trading mind; you are no longer doing your trading, and your inner demons now possess your thoughts and decision-making.

When you make 10% - 15% etc. per month, it’s only a matter of time before you wish that you had scaled back the amount of trades and the leverage that you have been abusing.

Old-fashioned word in trading? Discipline

We are riddled with greed. We move from buying one house to buying an investment property and so on. We seek better returns and become conditioned to wanting more and more.

In trading this plays out, but the effect is much quicker and with less warning.

To be disciplined means to be shy with your trade choice and to keep integrity within your position size. By combining both quality trade choice and integrity with position size you will not be tempted to grow your account at an unreasonable rate.

It is much better to develop the skills and mindset that trading will demand from you rather than building your account at a rapid rate for several months before it all caves in on you. When that happens, your mental integrity and your account will both need rebuilding.

Slow and very steady will win the race.

Think of what you could achieve over five years rather than what you want at the moment. Over time trading will almost become boring as you carefully select your trades and up hold your trading integrity.

If you are winning and adding over 3% to your trading account week, you must regroup now.

Professional traders believe 1% or 2% gain for the week is massive, professional traders are around much longer than the average retail trader. How do you want to mirror your trading towards, the average (crashing) retail trader, or the professional trader?

Take this as a warning and protect yourself from greed and inner demons.

Trade well, Steve T.

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Do You Have What It Takes?

The quick answer is, "YES you do", but finding that trader within you is the challenge. In today's article, we will break down some challenges most traders have and offer some solutions.

You will need to quickly realize that you hold the key to success when it involves trading. The success is not with the strategy or following other traders. The very fact that we are all unique as individuals must give you a hint that you already own the key to successful trading.

I think it has become more difficult to be a successful trader. This is not because there is a lack of information and options available because there is ample available and this is now a part of the problem. Before new traders even begin their real development as a trader they are being exposed to solutions and courses that are "marketing business" geared up to sell things.

 It is difficult to recognize the real deal from the no deal.

Fx Trading Ebook

A good read and FREE Download

It takes time to develop

For most traders, it will take almost two years to get to the real starting line. This is where your official development begins. It is after you have had your fingers burnt from various online environments and your own sabotage.

In my very early days as a trader, I recall a conversation at the time with another newbie and he mentioned that he wanted to craft his trading skills over the next five years. At the time I thought it was a ridiculous statement to make but knowing what I know now, that was a very smart and thought out commitment. The trader had a development plan in place.

What are the trading traps?

They are all around you. Each step and trade creates a new environment to fail. Everything from money management, trade selection, and trade management can consume your thinking.

The trading world brings with it the opportunity to make money or lose money. The only way we keep score is by observing the funds in our trading account. We see this as a reflection of our own image when in fact it is a process.

We then need to identify and deal with our own psychological battles. These scars carry the most burden and are the most difficult to repair for our trading world.

Most times, the courage to deal with our trading psychology is the final frontier within the trading cycle. It should be the first issue that we deal with however that is not possible as we need to take on the battle first before we can correct them, it can only be this way.

A few ideas that might help you

First, you need to understand that the art of trading is always evolving; there is no end in your trading development. It will take several years before you have built a strong enough psychology to deal with the markets in a consistent regular basis.

Ground yourself in quality information and traders that have had many years of trading. These are the traders that have been through the school of hard knocks.

Invest into your trading. Those that think they will learn how to be a successful trader without investing some real dollars into their development need to think a little deeper about the situation.

Think and grow rich

Napoleon Hill wrote "Think and grow rich" and was published in 1937. This book took twenty years of research and is now the cornerstone book for many successful people in the world. This is not a book you read once and put back on the shelf. This is a book that you continually study and apply the concepts to your life as you develop. As you evolve, the book evolves.

If you are serious about your development as a trader, take up this book and apply it to your trading and life. I promise you it will make a huge difference to your outcomes and your thinking.

It is all on you

Nothing in life is free; there is always a price to pay. Some are prepared to do whatever it takes and meanwhile others look for excuses to bail out and quit. This is all on you and not the circumstances.

In a world of blame, it is easy to give up but guess what? Trading is not easy and for many it will be one of the most difficult undertakings you will ever endure. This is not because it is difficult to put a trade on or to have a broad understanding of the market... Over a short period of time these are rather easy to concepts to grasp. Trading is difficult because our ego and survival instincts are pointing in the opposite direction. To overcome this, it takes a massive amount of work and personal development. As we continue with our development, we then test it in the market. 

Enjoy your development and have a look at my course on price action trading.

Steve Teunis.

Online Ebook Mastering Fx Trading

Key Levels, Why They Matter

The purpose of key levels

Key levels are Support and Resistance levels where price could offer us a trade response.  These are levels where there is a line in the sand, where price should often pause. I explain key levels in depth within the Mastering course. https://eurusd-fxtrader.com/course/

The future key levels are best observed on larger time frames. The 240 & 60-minute charts will give you a broad view of these key levels. You can either take a note of these key levels or document the levels on your chart. Once you have identified the future key levels there is no need to continually eyeball the levels on the larger time frame go down to a smaller time frame.

EURUSD 240 Minute chart

Below is the EURUSD 240 minute chart. The important key levels ​are documented and identified. Note, we are not looking to predict the direction of price or cast our opinions onto the market. We are looking to identify key levels where price might respond so we can execute a manageable trade.

Within this chart, you can identify where price has consistently traded within each key level parameter. Keep in mind, this is a 240-minute chart and not used for trade entry. It is also not going to be an exact science and slippage through the key levels needs to be considered.

Trading chart

EURUSD 4 hour chart with Support and Resistance Levels

Breaking down key levels

For intraday trading, use the 60 & 15-minute charts to help you fine-tune your trade selection. If price has been trading in a tight daily range, you will find the 15-minute chart useful. If price has been stretching the daily range, you will find the 60-minute chart more helpful. Either way, both 15 & 60-minute charts should be considered as tools for intraday trades. We are looking for price structure. Price structure will be how price merged into the key levels and the structure in and around the key level.

Smaller time frames

Keep in mind, we have identified future key levels from the larger time frames. We have then broken this down into the intraday charts of 15 & 60-minute time frames.

Assuming we have been able to identify a high odds and low-risk level, we now break this down into a much smaller time frame. The time frame might be a 2 or 5-minute chart. At this point, you should know in your mind the exact level you want to execute the trade entry. Wait with patients. Your level may or may not get hit.

There is more to it

Never ever just take a trade based on the identity of a key level. There is much more to be considered. All of those many considerations we discuss in the course as well during the daily insights newsletter. Some of those considerations will be, time of day, Average true range, news, fundamentals, currency pair characteristics, price delivery.

The main purpose of this article is to help you understand how you can identify key levels. Trade selection, trade execution, and trade management are all a different beast.

Be mindful, just because you have identified a key level, this is not a license to take a trade. Important to also consider why you should not take a trade.

Happy Trading, Steve.

GET STARTED TODAY WITH A SPECIAL DISCOUNT!

LIMITED TIME ONLY!

For 48 hours only, you can get this course for only $199 instead of the normal price of $599!

Get started TODAY and don't miss out on this CHANCE!

00
Days
00
Hours
00
Minutes
00
Seconds

AND.... GET THESE THREE BONUSES INCLUDED!

EXCLUSIVE BONUS ONE  

3 HOUR VIDEO & HANDBOOK COURSE, FREE FOREVER!  

For a limited time only, ALL new Sign Ups will get our 3 hour Video Training Course 

"The 3 Most Reliable Trade Setups" completely for FREE!

This valuable video ($259), includes:

  • Exclusive and High Value Trade Setups!
  • 3 Hours of Video Content
  •  5 Training Modules
  • 14 Videos
  • Hand Book & 50 Slides

EXCLUSIVE  BONUS TWO   

ONE MONTH ACESS TO MASTERMIND INNER CIRCLE  FREE!

For a whole month you will be allowed to walk among the best traders, and get access to all the resources they have at their disposal. Of course, if you want to stay afterwards, your are more than welcome!

Excl​​​​​usive Weekly Webinar 'Wednesday Ask Me Anything

Every Wednesday, 1 hour Q&A Webinar, 2pm ACT-Canberra

Daily Session Previews with Trade Levels

Access to closed Mastermind Facebook Trading Group

Live Updates during Trading Sessions

Access to Live Updates in closed Mastermind Facebook Group

Weekly strategy video

Outlook on the coming trading week with insider tips

Fundamentals newsletter

Insight in long-term market trends and indicators on a bullish or bearish outlook

EXCLUSIVE BONUS THREE  

100% MONEY BACK GUARANTEE 

If this course somehow does not live up to your expectations, we will give you a FULL REFUND within 14 days of purchase!

Sticky Currency Pairs explained

More than likely you have never heard of this terminology "sticky"

Understanding the individual characteristics of each currency pair will be crucial for your trading success. Taking trades on technical levels but not understanding the currency pairs personality is a big mistake. Much like people, currency pair characteristics do not change, we will discuss and show you what are sticky pairs. 

EURUSD & GBPUSD

Both the EURUSD and GBPUSD pairs respond well off key levels if the overall drivers of price are one directional. Let us assume that the market was very bullish the US dollar. We will still see these two pairs respond of key levels. Perhaps the response is not as deep compared to when the market is trading in a balanced state however you can normally trust a response when your trade selection is selective off a key level.

Naturally this will not always be the case, especially if the market is making major adjustments such as a flight to safety or risk because of political situations or central bank talk. By understanding the market as we often discuss, you will identify these events.

Our preferred trading environment is when price is range bound and staying within or near its average true range.

Sticky AUD and NZD

When these two pairs trend they trend well. I consider both pairs risk currency pairs because of their higher interest rate status. They are both reliant on China and can be sensitive when the market is in a risk-off phase. For many years both pairs had a positive carry against the US$ however over recent years this has not been the case. The positive carry allows inflows to the currency and stock market thus keeping both these pairs well bid. Both pairs still have a positive carry against the JPY and this would be unlikely to change.

Unlike the EUR and GBP, both AUD and NZD have a much smaller daily range. AUDUSD can still be traded for intraday trades, but the NZDUSD is more suited to swing trades rather than day trades.

Let's get sticky

Sticky is best explained by saying that when price is trading in a direction either up or down, the response off key levels is often muted. This is never going to always be the case as the market continually trades in phases. A phase might be between two or three big figures or a very tight range. Another phase might be when price does not respond of a key level with any conviction thus sticky. Our job is to pick up on these characteristics as they happen.

Chart example

Below is a NZDUSD 60-minute chart. I circle the important possible reaction points in blue. From the base at 0.6480 we can see how price responded and into each of these blue circled levels. Each response or in this case was very limited. In most cases at best there was simply a pause but nothing noteworthy of a manageable trade reaction.

Described is a very common characteristic seen on both AUD and NZD. You need to be careful when looking for a response from these pairs. Try to trade each of these at their extreme level for each day, when the Average True Range has been stretched and allow some wiggle room within your trade management and equity management. They can be very stubborn once we find a direction. 

We cannot explain and give you the entire structure of this sticky event situation, but hopefully this will give you some awareness to the behavior.  Much of the trading approach we teach you is about price action; however deeper component of price action is price characteristics as we are discussing within the article.

Happy Trading, Steve.

Course on computer screen

Ignore This at Your Own Risk!

Exploring the behaviour of our mind is a massive undertaking, and you need to blend it into your trading model. Many novice traders only start giving their trading psychology the attention it needs as a last resort. For some, this is many years after they have started and already lost a considerable amount.

Your mindset should be the first subject you address when you start out. 

However, many of the inner demons do not surface until you make trades and you find yourself in various situations because of trading.

The very elements and successes you have had in the real world will more than likely be your biggest hurdle when trading. 

For example, when I think of some very successful business people and reflect how they might apply themselves to trading then the outcome would be obvious. Many of these people are alpha males/females…. and letting go of control and outcome is not their forte in life and unless we prepare them to make massive psychological changes, their trading account will rapidly decline and require ongoing top ups.

Often a sports person’s mindset is ideal for trading. When you listen to successful sports people during an interview they give away their mindset and how it’s applied to the individuals sport. You will often hear them say things like “ I can’t control what the opposition does but I can manage my performance” or ‘I am just focusing on the process and I can’t control the outcome or ‘I have prepared to my full capacity and I am now ready to perform”.

The above quotes are exactly what your mindset needs to be when trading however this is often not the case and emotions will drive your trading rather than you managing your emotions.

The nice part of trading is that your account P&L represents where you are in your trading cycle. Small profits, lots of break events and loses managed within your equity management rules is a great place to be because you are at the point where you are just about to turn a corner and all that is needed is a bit of fine tuning and direction.

For most people trading is the most difficult endeavour that they will ever undertake. All of your demons will be exposed even if you can’t identify them, your trading P&L will be talking to you.

In my new Ebook I dedicated a whole chapter to explain how to avoid getting emotional and lose focus while you are trading.

I suggest you download and read it; it's FREE!

Happy Trading, Steve.

Avoid Costly Mistakes - Read my E-book!

This EXCLUSIVE E-Book "Best 5 Ways to Avoid Blowing Up Your Trading Account" (value $59.99), is NOW FREE for you for visiting my website, BUT ONLY IF FIT BELOW CRITERIA:

VALUED @ $59.99, NOW FREE!

Stop Losing Money

Find Direction and the Right Path

Stop frustration and Self-Doubt

Build Solid and Strong Foundations

Why Big Gains Will Cost!

man Trading forex

Big risk will lead to big rewards, ... and big losses. People will often want to tell you about their wins and less about their losing trades. Firstly, you should just keep your trading results and returns to yourself as they are nobody else’s business but yours unless your ego feels that it needs to express this to others and if you do, then you need some serious work on your trading psychology.

When you take big risks either on selected trades, it is possible for your account to grow at a rapid rate. Your equity curve is very steep, and you feel great because you have finally mastered the markets. You may even hang onto trades that are going very much against you because you are banking some good winners along the way.

Not understanding your mindset will fracture your trading results!

The demons from within are removing any clarity you started out with when your curve was steady and reached in a methodical manner.

Have you noticed how we become conditioned to situations or circumstances? Governments do this to us all the time eg a gradual increase in taxes for certain items and once we have excepted the conditions in our head we view it as normal and no further action is taken.

When trading it is the same, your account will explode and this becomes normal. Now that 7% each week is reached the 4% from the previous week now looks below average. The calculator is used a little more often so you can work out how much money you will make each and every month.

What has happened here is that the trader is focused on the wrong thing and that is the money.

Your focus needs to be on the process and not the outcome. 

When the focus is on the outcome (money) rather than process (trading and controlling risk) then you will only ever end up with this disappointing result, things will cave in for you, it’s only a matter of time.

You have  been conditioned to except very high returns whilst taking a high level of risk.

I have known traders who have sold their houses to trade and have ended up losing it all. Others who have gained 30% in a few months and​ focussing on the outcome only ever ends in the same scenario, tears.

When you are trading and chasing  money eventually it will run you down and will need to pay up.

This is what happens when ego and greed take over your trading rather than focus on process. In my new Ebook I dedicated a whole chapter to explain how to avoid getting emotional and lose focus while you are trading.

I suggest you download and read it; it's FREE!

Happy Trading, Steve.

Avoid Costly Mistakes - Read my E-book!

This EXCLUSIVE E-Book "Best 5 Ways to Avoid Blowing Up Your Trading Account" (value $59.99), is NOW FREE for you for visiting my website, BUT ONLY IF FIT BELOW CRITERIA:

VALUED @ $59.99, NOW FREE!

Stop Losing Money

Find Direction and the Right Path

Stop frustration and Self-Doubt

Build Solid and Strong Foundations

The Perfect Forex Trade! or not?

Forex trading US Dollar

The perfect trade exists but let us not invest too much effort into the perfect trade or trading system. Reality is that every trade will look different and your results more than likely will also differ.

Your preparation and management of each trade really matters, if you are a high frequency trader you will have less time to mentally prepare for each trade.

If you find yourself in and out of trades all the time then more than likely your trading style is gambling rather than trading to a plan. Gambling is not a very good strategy for trading the financial markets.

Over the many years I have been trading I have only ever had two very brief conversations about trading with my father, keeping in mind that trading has been a big part of my life. He is very quick to point out that trading is just gambling and that can be true for some traders and those that have little or no understanding of the subject.

The perfect trade is not the result but your approach to preparing for the trade and how you manage this trade. Let’s list some components that make up the perfect trade regardless of win or lose.

  • Determine your risk as per your personal risk model.
  • Place your opening STOP as per your risk %
  • Make your trade entry as accurate as possible.
  • Know where you need to take initial profits to fund the trade.

By getting the above in play you stand a good chance to be profitable. There is much more that needs to play out within the big picture but by managing a few basics as mentioned you avoid many of the errors made that lose equity from your trading account.

Do not go chasing the perfect trade or perfect system just focus on the process on how to prepare yourself for each trading session and managing the trade.

I have written a comprehensive Ebook on trading and how to avoid most of the mistakes you can make. What many beginning traders don't realize is that psychology plays a crucial role in your success. Failing to realize that will lead to disaster and hence the title of the book.

Happy Trading, Steve.

Avoid Costly Mistakes - Read my E-book!

This EXCLUSIVE E-Book "Best 5 Ways to Avoid Blowing Up Your Trading Account" (value $59.99), is NOW FREE for you for visiting my website, BUT ONLY IF FIT BELOW CRITERIA:

VALUED @ $59.99, NOW FREE!

Stop Losing Money

Find Direction and the Right Path

Stop frustration and Self-Doubt

Build Solid and Strong Foundations