In this episode of Truth About FX, Walter talks about trading in multiple markets and how beliefs can affect a trader in making decisions. Also, Walter shares the story of a trader in Nicola and how her experience can inspire other traders.
Download (Duration: 05:46/ 6.61 MB)
In This Episode:
00:48 – multiple markets
02:19 – simple strategy
03:26 – believe in yourself
03:53 – magic of compounding
04:72 – reputable broker
Tweetables:
It is possible to achieve what you think you can achieve. [Click To Tweet].
The key to trading is believing in your system. [Click To Tweet].
Start with the end in mind and work with your mindset. [Click To Tweet].
Announcer: Sometimes, forex trading is a wild and wooly place to be. That’s why Hugh is here, to post your questions to Walter, the naked forex guy. Hugh’s got questions and Walter’s got the answers. Here at the Truth About FX Podcast.
Hugh: Hey, Walter. I’m sure you hear this question a lot because I do. How do I double my account if I’m only trading one strategy?
Walter: Yeah. It’s a good question. What I would say is, you can. The subtext of this question is: I’m not getting enough trade. Really, that’s what the real question is. I’m trading one system.
What you need to do is expand to multiple markets. Let’s say, for example, I really love trading the big shadow so, you’re trading this big shadow strategy. Well, don’t just limit it to the GBP, the Aussie and the Kiwi, the Swissie and the JPY and the EUR. Open it up and start trading the GBP/NZD, or trading the GBP/CAD, or the CAD/JPY or EUR/CAD.
You can literally multiply the trades that you take even though you’re trading one strategy simply by watching thirty charts and instead of ten or five. That’s what I would suggest.
Beyond that, I would also point out, I can link this up in the shownotes to this podcast. We recently did — maybe you’ll listen to this later so it’s not so recent — we recently had a trader on Nicola and she had a webinar for the trader in my little circle. I posted this webinar on my blogs, a link up, down there. She has one of the best webinars I’ve ever heard from a trader.
She doesn’t really teach traders. She’s just sharing her experience and she talked about how a year ago she made some money in her account and then lost it all, got hurt counting back to the original amount. Then, it took her about three months to triple her account.
Now, she didn’t do anything crazy, she didn’t do anything mad and she wasn’t trading like insane or anything like that. All she was doing is just taking the simple strategy and applying it to her account. What you’ll learn from going through that, those videos with Nicola is, her approach to trading and how she views it and, really, I think it’s a unique approach.
If you’re really concern about doubling your money or tripling your money or whatever, I would definitely recommend that you listen to that. There’s no sales there or anything, she’s just telling you her story. It’s pretty cool. Part of it, really, is mental and getting over that. She talks a lot about the mental aspect of trading in that video.
She talks a lot about how just understanding that it’s possible to do these things, it’s really a big step in that direction. She talks about how she asks people on trading forums about: is it possible to make x amount of money or x percentage per week. Everyone comes out of woodwork and says “Oh! That’s crazy, you can’t do that. Blah, blah, blah.”
Meanwhile, she’s making that double bet. It just goes to show that you can always achieve what you think you can achieve. It just comes down to that first step to believe in yourself and believing in your system as possible and then, mapping it how can you do it. One way to do this is to start with that in mind say “okay. I’ve got 10,000 USD, how can I get it to 20,000 USD?”
Well, let’s say, I want to do it in a year. A year from now, what does account to be for 20,000 USD? How do I do that? You can break it down. How many pips or what percentage do I need to make per month, per week, so forth?
The good news is with compounding, the magic of compounding, you actually don’t need to make that much later on. If you’re making a good percentage in the beginning, you leave your money in your account. It’s really going to grow with the magic of compounding. That’s one thing you need to take into consideration too.
People can sometimes just forget about that there’s compounding involved. Also, remember, your broker is also probably paying you interest. If you’ve got a reputable broker — let’s say, you’re trading with Oanda, or something like that — you’re actually making money on your account even if you don’t take trade. You’re actually accruing interest just as you would in any positive swap trade. That’s another thing to keep in mind.
There’s a lot going on there but, basically, I would say start with the end in mind and work with your mindset so that you’ll know that it’s possible and you can convince yourself that it is indeed possible.
Hugh: Yeah. I want that serious and you broke it down to five parts, right?
Walter: Yeah.
Hugh: I was blown away by it and it’s one of my favorites also. The thing that really stuck out, in my mind, was she said that she’d tried different things even like — was it losing a dream or something?
Walter: Yeah.
Hugh: But, I think that’s indicative of mind you need to take where you get to that point.
Walter: Yeah. We all carry these beliefs that we’ve had since we were little kids and some of these are restrictive. She recognized that and she really worked toward her goal by recognizing: “okay, I’ve got these little beliefs that are holding me back, how do I overcome them?” A lot of it is mental, I guess in what we’re saying, isn’t it?
Hugh: Yeah, exactly. Thanks, Walter. That was great.
Walter: Alright. See you next time, Hugh.
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