Forex Trading Myth

Forex Trading Myth

Chitika   Maret 27, 2018

Somebody asked me...

STRANGER: Can I actually replace my full-time job with income from Forex trading?

ME: Yes. How much is your job salary?

STRANGER: $50,000 a year. Can you show me how?

ME: Your freedom depends on how much you are willing to invest. How much you are planning to invest for your initial fund?

STRANGER: $200 only. It's too risky.

ME: Ok. But it will take you 11years or more to earn $50K per year with that kind of investment, if and only if you can consistently earn 5% a month. That's on compounded . (Boom)

The Myth 

Many traders have been dreaming that they can really achieve their dream life with just a $200 of investment. They think that it's a magical get-rich-quick scheme that will give them unlimited income with a few dollars.

The Reality 

This kind of mentality makes them trade with large lotsizes with a very small fund on a live account. They usually ended up disappointed. To achieve the freedom that you've been dreaming of, you have to plan for it. Learn Forex trading at least how to earn safely and conservatively if you have a job. It is possible to earn 50% a month or more (believe me, I have friends who earn this much trading Forex fulltime) but you have to invest a lot of time and money before you can come up with the best trading plan that you have longed for. Since you are having a 9-5 job, you have to be realistic on your plan. Aim for at least 5% a month safely (very doable).

If you want to replace your job income with trading income, do the math. If you earn 5% a month with Forex trading, you need to have at least $85K fund to earn $4,250 a month, or $51K a year.

If you are only willing to invest $200 for this, you need a good consistent system that can make you earn 5% a month to make $85K money in 11 years.

So how much you are willing to invest?

PS It will take you more than 11 years to earn the dream fund if you will withdraw some profit along the way.

More About Trading Psychology: Confidence

More About Trading Psychology: Confidence

Chitika   November 26, 2017

What is confidence? How it can make or break you as a trader?

Trading confidence is the psychology of initial success. it is the feeling or belief with a firm trust that you can rely on a strategy or trading plan. It is the psychological tool that traders have and use to fight fear and all emotions related to it. How do we gain confidence? We get it once we achieve the first success with any strategy that we come accross with.

A trader must be aware that confidence, while it is one of the best emotional tools we have to fight fear on trading, confidence can also mislead us to do something stupid. Sometimes too much confidence makes us think that our strategy is the best strategy and it always has its magic. This can lead you to increase lotsize more than what is stated in your trading plan. Over confidence can also make you enter pre-mature trades. For example, if you have 5 conditions in your strategy then your current analysis meets only 4, because of your confidence in your strategy plus greed, you won't wait for the fifth condition to appear. You will open a trade right away.

Confidence can also make us tweak strategies irresponsively. Tweaking, exploring, and experimenting are important for you to discover good strategies, but you have to do it right. You can not expect success if you keep integrating all strategies you find into one analysis. You have to be careful in combining different analysis. This is common to old traders that have been using generic strategies in predicting price direction. When they see a new strategy, they do their analysis using it, then at the other part of the analysis they will check their old generic analytical tools to confirm. There are 2 things may happen, 1) you will fail. 2) you may experience success but it slows the profit. You are not sure if it's really working or you just got lucky. You can't really tell at an early stage. In order for you to confirm that it really works, you have to do the same analysis for a long period of time and no short cuts. Based on what I have observed with hundreds of students that I've had, on the next trade, they would tweak even more.

To be successful, keep it super simple. Just follow the trading plan exactly the way it is stated in the rules, no ifs no buts. If you think there's a better way of doing it, (good, you are thinking) do it in a separate account for at least 3 months. 

FREE E-book On Forex Trading Psychology

FREE E-book On Forex Trading Psychology

Chitika   September 29, 2017

Click the link to download... http://eepurl.com/bMlnj9

On Learning Forex Trading: Start It Right

On Learning Forex Trading: Start It Right

Chitika   September 29, 2017

Newbies can relate to this...

You are seeing many tips and lessons in the internet on how to trade from different veterans and mentors. You have tried many of them but failed. So most of the newbie traders have thought that the internet is full of pretenders, fraudsters, and charlatans. So they would hate every Forex mentors they have seen online because they think they are fakes. Hold your horses. It may not always true. I think many of these Forex mentors have no intention to trick you. I think they are only guilty of one thing... They made you drive a BIG TRUCK right away... What⁉️⁉️

Forex Trading Is Like Driving

Learning how to trade is like learning how to drive. If you don't know yet how to drive, you can not expect to learn driving with a big truck. You will feel overwhelmed and may not learn it. Even if you do, the whole learning process is very hard, a very terrible experience. To avoid this bad experience, start it right. Start with a small car. It's the most easy and convenient way to start. You have to feel first how driving is. The learning curve will be shorter. The same with Forex trading. You should start small. While learning how to trade, you have to have a good feel of the market price movement first. To achieve that you have to start trading with a demo account right away, not to profit right away, but to feel the movement of the price. Immerse yourself to grasp the feeling. Absorb the idea that it's not just ups and downs, not just ranging and trending, and it's random, very difficult to predict the future price. Baby steps. You don't have to learn everything all at once. Learn one at a time. Learn while you are doing it. Just know where to get any information in case you come across a situation that you need help to learn something. Start learning using any customized tools that you come across with. Remember you don't have to master how each tool works. You just need to feel the experience of the market. Having a real feeling about the market can make you use any tool and indicator at your advantage. Any strategy taught to you, you've got a big chance to achieve success.

Enjoy the weekend :)

First Lesson In Trading Psychology

First Lesson In Trading Psychology

Chitika   September 10, 2017

When you decided to be a trader and be good with it in the future. You have to decide also to re-wire your brain on an unusual mindset.

 There is no Best Trader in the world. When you put yourself into this business, you have to believe that you can not be the best trader in the world and you can not beat the World Forex Market. You are only as good as your trading plan. You are only as good as your "Entry Plan". You are only as good as your Money Management plan. You are only as good as your 'Exit Plan". You are only as good as how you follow your trading plan. You are only as good as your last trade. Even if you hit the TP this morning and gain 20% in one trade, still you are not the best trader in the world or any group. Even if you hit 500% this month, still you are not the best trader in the world. Even if you hit 3,000% this year, still you are not the best trader in the World. Always think that the most important thing for you to do your next best is to plan for it. If you can not imagine how your next trade will end, good or bad, your past performance is all negligible. Keep this in mind.