Learn Forex Trading in 10 Steps

alright guys welcome back to the video in this video I’m going to be teaching you what I believe are the 10 most important steps when you’re learning to trade Forex alright so number one is commit to it so people dabble these days people have got so much information at their fingertips and they’ve got instant gratification everywhere and they they’re in this dabbling mentality they develop this dabbling mentality if you’re gonna learn trading it’s gonna be a new career for you it’s gonna be a new skill that you need to develop so you’re gonna have to commit to it now the first thing you need to do is start getting used to consistency because if you can have become a consistently profitable trader everything has to be based off of consistency so the first thing you want to do is think about when you can consistently dedicate to learning what time of day is that is it 10:00 at night is it 6:00 in the morning is it at lunchtime and once you’ve got that consistent time block that in your calendar put it in your calendar and treat it like it’s any other meeting doctor’s appointment whatever it might be so that you actually stick to it the next thing is get real get realistic expectations understand what you’re aiming for don’t just have you know trading as this fluffy thing you need to have a a milestone you need to know where you’re going just so you know if you’re running a full time job and you’re thinking about learning to trade and you’re holding down a full-time job or you’re running a business it’s probably going to take you around 12 to 18 months to actually learn and be able to implement that is what you’re looking at but really just get your numbers know your numbers do you know how much you need to replace your income do you know your living expenses can you actually put a plan in place to say right I know my living expenses I know how much I need to start bringing in to replace that over a period of time maybe you can reduce your hours at a certain date maybe if you’re bringing in a thousand pounds a month maybe if you’re bringing in five DiPaola map that will allow you to no longer work a Saturday which then you can dedicate to training and learning more and so on so the purpose is get real if you’ve got a job it’s going to take you 12 to 18 months period I’ve never seen anyone do it in less time than that the next thing is don’t skip the basics the amount of traders that I’ve worked with that have gone on rushed for it and they get to ready to open a live account and they don’t actually understand order placement they don’t understand position sizing they don’t even know what a broker is or how they work they don’t understand pip values they don’t really understand too much about how they’re actually going to trade live which holds them back because by that time they’re far too embarrassed to go well how do I do this I don’t get it and I’m like well you’ve just been through the advance right you shouldn’t be asking these questions so they’re too embarrassed to ask and then they just give up and it’s a complete tragedy because they waste all of that time and they don’t get to where they want to be just because they skip the basics you want to understand what the pip values are you know how to read candles how to understand how to identify a trend reversal zones how to learn how to identify support and resistance how the market moves how orders are placed if you skip all that stuff you can have a real hard time later on so make sure you don’t skip the basics the next one is an important one ins a s–t understand risk understand how to manage risk and understand the risk involved I had someone the other day tell me that it just placed a trade and he’s stop-loss was like 290 pips away and I said well how have you calculated your position size is that based off of a percentage of your account risk and he said it’s 50% of my account know now just know if you lose 50% of your account you’ve then got to make up 100% of your account to get back to break-even you’ve got to double your account just to get back to where you started now the quickest I’ve ever doubled an account without withdrawals it’s just under two years so that’s how long it’s going to take to to double an account there’s going to be people on here saying yeah so and so if the lambo he doubles his account every month that is absolute crap right the the quickest I’ve seen anyone and believe me I’ve worked with some phenomenal traders is just under two years for me and now there’s people that have done better than that but you are at a massive time disadvantage if you start risking fifty percent of your account so understand risk appreciate it respect it and understand exactly how it’s going to apply to your trading the next thing is pick a time frame that suits you and a lot of people say well what do you mean that suits me well what I do is I teach people to build their trading around their life because a big problem is people think that they’ve got another job or they’ve run in a business or they’ve got kids or whatever and they try and force trading into their life and then they’re sort of trying to check the charts and they’re on the flown to a client they’ve got a meeting booked and they’re rushing and they’re they’ve got to go do the school run and they’re trying to check the chart there’s no consistency remember a certain point one consistencies everything if you start dedicating a consistent time of day to learning then you can start picking a time frame that suits your life as well remember we’re developing a skill here it doesn’t matter what time frame it is later on you need to develop the skill first think about playing a guitar you might just pick up a guitar and you might just spend a month learning the G chord and you’re playing the G chord G chord G chord and then you the next month you go right I want to learn a C chord so you learn a C and the mountain memories develops and you’re playing it nice and slow and then you go right for the next month I’m going to learn a B chord so you play the D chord for another month and by the end of the three months you go right I’m going to learn a nice slow song that uses those three chords and you play the song and it’s nice and slow and you perfect the chords because it’s all nice and slow as you keep practicing then you can learn a fast song lose using the same chords it makes no difference because the skills there the muscle memories there you’re not going to slip up you’re just playing it a bit faster that’s all but it was because you developed the skill that you can do that you can’t if you try and play a fast song without learning the chords and the muscle memory you are gonna sour awful and it’s the same in trading develop the skill make it easy on yourself make it hard to fail so what you’re going for is consistency and having the discipline to be consistent don’t try and rush around in timeframes that don’t suit you pick one that does suit you if you can only check the charts twice a day I would say you should be trading on the daily timeframe maybe the four hour if you can check it four times a day for hour if you can check it more than that maybe the hourly okay but don’t make it hard on yourself because you can apply that later on it doesn’t matter all right so the next thing is pick a strategy now you’re probably thinking how come this is so far down on the list because most people think that the strategy is the be-all and end-all they think that is the thing that makes you successful at trading they they just focus on the strategy and they don’t really understand all the other components that go into it but it’s really 20% of trading the rest is heavily based on psychology and discipline they pick a strategy that resonates with you and something on a timeframe that you can actually dedicate your time to learning as well it might be trained continuation trend-following counter-trend you might train flag breakouts whatever resonates play around with a few learn a few and just pick one pick one suits you something resonated with you because the truth is there’s thousands of strategies out there and they probably all work but it’s only down to you as a trader to master that strategy and make it work it’s not the the strategy isn’t going to pump money into your account so play around with a few pick one and goal in on that one strategy once you’ve learned a strategy you might want to start developing your edge and what I mean by that is applying some filters the problem people go that where people go wrong here as they learn too much they bring on all these oscillators all these different indicators stochastics MACD Bollinger Bands moving averages all this stuff and what they do by that is they become paralyzed from even taking a trade because they say well my strategy says I should enter here but I’ve got this bill to telling me no in this rule to tell yes just pick a few don’t learn them all pick a couple maybe just add two filters just to knock up that higher probability of your trade playing out and give us that’s a better statistical edge you don’t want to add everything you just want to go slowly and steady add one by one and then what you can do is you can start removing them or becoming aggressive later on when you’re not when you’re consistently profitable all right now this is probably the most important one you’ve heard me bang on about it all the time and that is test it that’s what I’ve put a red line under this one absolutely test your strategy this is the number one reason that people fail with work with literally thousands and thousands of traders 60 countries and this is the number one reason people don’t test it you want to go and test your strategy what it does is it gives you all of the information you need for your trading business plan it teaches you what your maximum drawdown was how your system performs if it’s got a positive expectancy or not what the maximum drawdown was what the average losses in pips what the average win is how long the drawdown lasts and information that will give you a psychological strength to go into the market live without that information you don’t have it also it can tell you how to fine-tune your system and when you when you’re looking to fine-tune your system that’s when you can really start to build it around your personality because it’s going to depend on you and your personality on as to how you perform in the markets typically this comes down to three things the strike rate so do you like being write a lot more than you’re wrong or are you happy being 50/50 I know some traders that are happy being wrong eight times seven eight times out of ten because they’ve got the big risk reward so do you like to be wrong more than your right or are you happy being right more than your wrong whatever right it’s down to your personality the other thing is opportunity so some traders just want opportunities so they don’t mind decreasing the strike rate if it gives them more opportunities which typically happens but they just find that that resonates with their personality a bit more they feel a bit more active and the last thing is reward to risk profile so you might be happy being wrong more than your right you might have loads of opportunities but you’ve got a five to one risk reward on every trade and your that just you’re just happy doing that typically you find that people who are happy doing that they do very well but it wouldn’t suit someone who isn’t happy doing that so testing gives you all of this information you can tune it up and at that point you still haven’t lost a penny so the next thing is verify it and verify I mean forward test it paper trade it or demo trade it what you get from demo trading or verifying your system is again at this point you haven’t lost any money bearing in mind but what you find is you get used to that that change in frequency from doing loads of stuff where you’re looking at the charts all the time testing and then you go live you get used to the facts of actually not doing much because that is a big struggle for traders all of a sudden you’ve been doing all this testing testing testing testing all the tweaking tweaking tweaking and you’ve been learning learning learning and then you go live into the market on a paper trade or demo account all of a sudden it’s taking you ten minutes a day instead of hours and hours right so it gets you used to that environment I remember when I started trading I went live I funded my first live account when I was you know when I was really serious about trading and all of a sudden I wasn’t doing much and I felt like I needed to be doing more and that’s when I started to surround myself with other traders in the community so that we could bounce off each other you know and keep keep going but it is a struggle and you get that fro and you get over that from verifying from paper trading it also verifies your system that you’ve tested and tweaked is now still performing the same way going into the live into the future into the live markets and that really sets you up psychologically you’re in a very very good frame of mind to go live after that point all right and finally the last thing is to structure all of the above so one of the things that we’ve found is people skip and jump ahead be because they don’t even know that they haven’t taken in what they just read or what they just learned or what they just watched or what they just applied they think I’ve done it now I move on I’ve done that I’ll move on what they haven’t done is really really embedded it so they understand you know that they’ve ironed out all the gray areas the best way to do this is to create a structured learning education diary or planner and plan it in write right in that planner I do not move on until I’ve understood this can I answer this question this question this question maybe the questions you had at the beginning write them down I will only move on to the next part next one of these steps when I understand this this this and this and if I do not move on I do if I don’t understand that then I don’t move on and believe me it is that it is a game-changer now one of our clients actually produce this one she became really stuck and this is one of our very very dedicated traders I’ve no doubt that she’s going to do extremely well she actually found this herself created this planner and you can see the you know the dedication that’s gone into this thing but it’s had transformational impact in her learning curve she’s she went from wasting like a couple of months three months to now accelerating past many of the others that started at her level as well so highly recommend you structure your learning one of the things I like to do if I don’t understand something is going tell someone that doesn’t doesn’t even know like your kids your wife talk to them and then when they ask questions kids are brilliant for this when they ask questions you have to answer and you can’t lie so you have to actually bring that information out and if there’s any gray areas you identify that and you can write them down that you now know it and maybe you can move on but I know that the one of my clients who created this one and though she’s thinking about giving this template for you guys the link will be below to get hold of that if it’s available and you might have to send me an email or something but highly recommend you do that so those are the ten steps it really is commit get real don’t skip the basics understand risk pick your timeframe learn a strategy develop your edge test it verify it and structure the whole thing if you do that you’ve got an 89.00% higher probability of succeeding in this very very speculative industry trust me if you don’t do this you’re probably gonna fail so hope you’ve enjoyed the video make sure you give it a thumbs up and share it so any other traders out there or people learning to trade and I look forward to seeing you in the next one [Music]

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