Confessions of a Professional Forex Trader
“I talked about this idea of market biofeedback which is the market — I wrote about it in the Naked Forex, infact. This idea that the market gives you information and then what you do with that information because it’s really difficult when you’re in a trade to be totally and completely take no side…”
I think what one sort of resilience skill that a lot of people can take from this is this idea of reframing it and looking at it for what it is. And so, if you have for example four-week losing streak, you don’t have to catastrophize and say that this guys is falling and you just look at it for what it is. “Okay, I’ve had four weeks losing streak”…
There are people that will tell you it’s impossible to make 1% a week trading. There are other people that are doing much better than that, every week trading. That’s it. Trying to set your expectations based on what somebody else tells you, it’s not good and that’s sad because we’re actually brainwashed from a young age to do that…
“We’ve all been there. As traders, we are all quite familiar with this. The key here really is to start with your beliefs and build confidence. If you can do those two things, you are going to be alright…”
“It is really going to depend on what makes sense to you. Most traders like to find those reversals and so in that case, the webby and the moolah, double top, the double bottom might be better…”
“You just have to find the right one that offers the right leverage and spread combination and you feel comfortable with it. That’s where your testing really comes in…”
“Profit Bricks can penalize you if you use a trailing exit and you just get unlucky and your second winning trades are not as fat as the first ones…”
“What you really wanted to do is get an uncorrelated strategy or what we call a complimentary strategy…”
“It’s amazing how much those $6 lattes add to the expenses every month. Do you know what I mean? If you have all these crazy things, you know how it works. You don’t necessarily need to buy those new shoes or those peppermint lattes at Starbucks or whatever they’re selling this month…”
“There are different ways of doing it. If you feel like you really have to trade the lower time frames then it sounds like you’re a great candidate for automation. Otherwise, I would just focus on a higher time frame…”
“What matters is you’ve made those 3 steps to trade a system that you believe in on a live account. And so, everyone gets impatient. Everyone gets upset and wishes that it happened last year. I get it but the only way you’re really going to make progress is to do two things…”