Profits Run Presents Forex Time Machine
Profits Run – Forex Time Machine
Essential Elements of a Successful Trader
Courage Under Stressful Conditions When the Outcome is Uncertain
All the foreign exchange trading knowledge in the world is not going to help, unless you have the nerve to buy and sell currencies and put your money at risk. As with the lottery “You gotta be in it to win it”. Trust me when I say that the simple task of hitting the buy or sell key is extremely difficult to do when your own real money is put at risk.
You will feel anxiety, even fear. Here lies the moment of truth. Do you have the courage to be afraid and act anyway? When a fireman runs into a burning building I assume he is afraid but he does it anyway and achieves the desired result. Unless you can overcome or accept your fear and do it anyway, you will not be a successful trader.
However, once you learn to control your fear, it gets easier and easier and in time there is no fear. The opposite reaction can become an issue – you’re overconfident and not focused enough on the risk you’re taking.
Both the inability to initiate a trade, or close a losing trade can create serious psychological issues for a trader going forward. By calling attention to these potential stumbling blocks beforehand, you can properly prepare prior to your first real trade and develop good trading habits from day one.
Start by analyzing yourself. Are you the type of person that can control their emotions and flawlessly execute trades, oftentimes under extremely stressful conditions? Are you the type of person who’s overconfident and prone to take more risk than they should? Before your first real trade you need to look inside yourself and get the answers. We can correct any deficiencies before they result in paralysis (not pulling the trigger) or a huge loss (overconfidence). A huge loss can prematurely end your trading career, or prolong your success until you can raise additional capital.
The difficulty doesn’t end with “pulling the trigger”. In fact what comes next is equally or perhaps more difficult. Once you are in the trade the next hurdle is staying in the trade. When trading foreign exchange you exit the trade as soon as possible after entry when it is not working. Most people who have been successful in non-trading ventures find this concept difficult to implement.
For example, real estate tycoons make their fortune riding out the bad times and selling during the boom periods. The problem with trying to adapt a ‘hold on until it comes back’ strategy in foreign exchange is that most of the time the currencies are in long-term persistent, directional trends and your equity will be wiped out before the currency comes back.
The other side of the coin is staying in a trade that is working. The most common pitfall is closing out a winning position without a valid reason. Once again, fear is the culprit. Your subconscious demons will be scaring you non-stop with questions like “what if news comes out and you wind up with a loss”. The reality is if news comes out in a currency that is going up, the news has a higher probability of being positive than negative (more on why that is so in a later article).
So your fear is just a baseless annoyance. Don’t try and fight the fear. Accept it. Have a laugh about it and then move on to the task at hand, which is determining an exit strategy based on actual price movement. As Garth says in Waynesworld “Live in the now man”. Worrying about what could be is irrational. Studying your chart and determining an objective exit point is reality based and rational.
Another common pitfall is closing a winning position because you are bored with it; its not moving. In Football, after a star running back breaks free for a 50-yard gain, he comes out of the game temporarily for a breather. When he reenters the game he is a serious threat to gain more yards – this is indisputable. So when your position takes a breather after a winning move, the next likely event is further gains – so why close it?
If you can be courageous under fire and strategically patient, foreign exchange trading may be for you. If you’re a natural gunslinger and reckless you will need to tone your act down a notch or two and we can help you make the necessary adjustments. If putting your money at risk makes you a nervous wreck its because you lack the knowledge base to be confident in your decision making.
Patience to Gain Knowledge through Study and Focus
Many new traders believe all you need to profitably trade foreign currencies are charts, technical indicators and a small bankroll. Most of them blow up (lose all their money) within a few weeks or months; some are initially successful and it takes as long as a year before they blow up. A tiny minority with good money management skills, patience, and a market niche go on to be successful traders. Armed with charts, technical indicators, and a small bankroll, the chance of succeeding is probably 500 to 1.
To increase your chances of success to near certainty requires knowledge; acquiring knowledge takes hard work, study, dedication and focus. Compile your knowledge base without taking any shortcuts, thereby assuring a solid foundation to build upon.
Forex Time Machine Official Site
Common Sense Guidelines for the Average Trader
Look for a reputable broker
- Ability to trade effectively depends on consistent spreads and ample liquidity
- Anyone can establish a position
- Ability to close out a position at a fair market price is more important
Live to trade another day
- Apply prudent money management skills
- Avoid using excessive leverage that puts your investment capital at risk
- Always trade with a stop!
Don’t trade emotionally, stick to your plan and maintain discipline
- Establish a trading plan before initiating a trade
- Set reasonable risk/reward parameters
- Don’t override your stops for emotional reasons
- Don’t react to price action – means don’t buy just because it looks cheap or sell because it looks too high, Have supporting evidence to back up your trade
Don’t punt
- Don’t punt( Punting is trading for trading sake without a view)
Don’t leave stops at obvious levels such as “big figures” (e.g. eur/usd 1.20, usd/jpy 110)
- i.e. JUBBS stops = stops at obvious levels and thus are more likely triggered
Don’t add to a losing position in unless it is part of a strategy to scale into a position
- In other words, don’t double up in the hope of recouping losses unless it is part of a broader trading strategy
Trading with and against the trend
- When trading with a trend, consider the use of trailing stops.
- When trading against the trend, be disciplined taking profits and don’t hold out for the last pip
Treat trading as a continuum
- Don’t base success on one trade
- Avoid emotional highs or lows on individual trades
- Consistency should be an objective
Forex trading is multi-currency
- Watch crosses as they are key influences on spot trading
- Crosses are one currency vs. another, such as eur/jpy (euro vs. jpy) or eur/gbp (eur vs. gbp)
- Crosses can be used as clues for direction for spot currencies even if you are not trading them
Be cognizant of what news is coming out each day so you don’t get blindsided
- Be cognizant of what news is coming out each day so you don’t get blindsided
- Beware of trading just ahead of an economic number and be wary of volatility following key releases
Beware of illiquid markets
- Beware of illiquid markets
- Adjust strategies during holiday or pre-holiday periods to take into account thin liquidity
- Beware of central bank intervention in illiquid markets
Forex Time Machine Official Site
What’s the Best Forex Strategy?
Many forex traders find themselves asking the age old question what’s the best forex strategy? To know the answer to that question, one must look at the history of trading. Not just forex trading, but trading, in general.
The moment that the first bell rang on the stock market floor, traders were coming up with strategies to beat the market. Obviously they didn’t have the technology that most of us have at our disposal. They didn’t have the thousand dollar charting platforms that so many traders are overpaying for, just for the privilege of using them, nowadays. So how do you think the successful traders of the past made their money?
Well, one way was through fundamental analysis. They were able to comprehend a company’s financial statements such as balance sheets, income statements, statement of cash flows, etc. to know a bargain when they saw one. But these kind of people would be categorized as investors, not traders. Traders generally believed in technical analysis over fundamental analysis.
So how did traders of that generation made their money? Simple. They understood the concept of price action. Plenty of floor traders became rich just by paying attention to how the other floor traders were trading the respective stock.
How come a concept as simple as price action has been pushed back in favor of all the technological bells and whistles that most people use in their day to day trading?
People, today somehow feel that the best forex strategy has to be in these maze of indicators,colors, noises,and whatever else is en vogue nowadays. Its really quite sad that it has gotten to this point.
Traders used to pride themselves on how they were able to truly understand the market, but in the present time we live in, they are more worried about understanding what their indicators are telling them.
Forex Time Machine Official Site
Forex Time Machine
Bill Poulos’s new training course is called the “Forex Time Machine”, because its goals are to:
** ERASE RISK every time you trade; today, tomorrow, next month, or next year…
-the concepts he teaches you are “future proof”, so you can have confidence they’ll be a permanent part of your trading “toolkit” for years to come.
** SAVE TIME by trading in any timeframe, even as little as 20 minutes a day…
-you’ll further reduce risk and maximize your profit potential when you trade ONLY when it’s right for you…
** ENJOY 3 TIMES the profit potential when you learn to spot 3 kinds of Forex “profit pockets” on any chart you look at…
-you’ll have the tools to do as much “profit getting” as possible in all major Forex pairs so you don’t let that next “homerun” trade get by. His 3 step-by-step methods show you how…
But it may already be too late, because he’s initially only releasing 300 copies to give his “charter class” of new students the attention they deserve.
So unless you’re already consistently taking home more Forex profit than you know what to do with…
-go ahead and check out the detailed letter Bill wrote for you that reveals all the info behind his “what works now” approach to “erasing risk” on your Forex trades:
Forex Time Machine Official Site
