“Perhaps the most exciting and daunting fact is that on this journey to becoming a successful Forex trader you’ll eventually realize that success and consistency have very little to do with which indicators you decide to use and more to do with your mindset.” – Gavin Knoesen
It’s unfortunate that many traders don’t know what they’re doing. Rather than cutting their losses and running their profits, they cut their profits and run their losses. Those who make the matter worse are those who use too high position sizes, relative to their account sizes, because they believe that an entry system has high winning rates. They want to become rich quickly. They still feel it isn’t sensible to use small position sizes in spite of heavy losses they may’ve suffered in the past. They think they can beat the markets with their ‘magical’ entry systems. They don’t know that a sailor doesn’t beat the weather; he has to cope with it.
Don’t forget that those you compete against are professionals who’re willing to make gains from the money you lose. This is the attractiveness of the financial markets: each market speculator uses the position sizing they think is the best for them and trade the way they like. But at last, it’s our consistent survival and profits that’ll serve as the justification of our trading beliefs.
July Trading Results
The profits mentioned here were realized last month. The trading results on live accounts and demos are similar; the difference is the position sizes that are proportional to each account balance. The USDCAD proved to be difficult in July, but we made some gains anyway. We made additional 14.42% as closed profit. That’s the purpose of this non-directional strategy: to make money regardless of what happens in the market. We can only look forward to more growth this August and the months to come. A future article would discuss further the details of this kind of strategy.
Last month, the Gap Trading strategy made at least, a net profit of 4,700 pips (a minimum of four thousand and seven hundred pips), enabling the account equity to grow by 24.4%. This was possible because there were over 45 signals from this strategy last month; the more the signals, the more the profits. It doesn’t mean that there were no losses. We had many losses as well as gains, but we moved ahead by applying the simple trading principles that work. A future article would shed more light on this strategy. Risk management always comes first in our mind, for traders should only play safe. Adroit funds managers must also be effective risk managers. We don’t trade instinctively, but according to clear rules. If you have a system that constantly works well, you must stick to it.
Beginner traders are far more impressed by what professionals do than by what they say. In fact, professionals who practice what they say are more likely to have more followers who listen to what they’ve to say. Here, we don’t simply talk about risk management and survival on the battleground of the financial markets; we show it. We acknowledge that traders can expect losses. A sane mentor doesn’t promise that trading will be easy, but risk control measures will help. To this end, positive testimonies have been received from trainees and clients.
Our confidence has been elevated to new heights, and yet we know we’re only experts in progress. We’re reassured that we could expect to see risk management in action in our trading career, especially in the face of the uncertainties of the markets. We’ve higher hopes and brighter expectations. Without doubt, doing the right things on the markets will help us accomplish great things in trading.
If you’d like to have access to my trading activities and trade like me (seeing when and how I place trades, plus how I manage open positions), you may gain access at: http://www.fxinstructor.com/en/analytics/ituglobal
Lastly, the team at Fxinstructor.com has been caring for the interests of Forex traders worldwide. You’d do yourself a great favor by taking advantage of their services.
NB: Please watch out for my coming articles with these titles: ‘Testimonies from My Subscribers,’ ‘Excellent Money Management Flexibility – Make the Best Choice!’ ‘Resist the Lure of High Risk – Part 3 (Use Low Risk and Reap Benefits),’ ‘Worst-case Scenarios – Facts Are Sacred,’ ‘Effective Swing Trading in Forex,’ ‘Advanced Gap Trading – Trading with Insane Accuracy,’ ‘3 Recent Gap Trades,’ ‘Trading for a Livelihood – One of the Best Jobs in the World,’ ‘Developing the Right Attitude towards Losses – Part 3,’ ‘The True Holy Grail – The Long Sought for,’ ‘Suicide Trading Techniques,’ ‘Achieve Success through Sensible Risk-to-reward Ratio (An Interview with a Trading Enthusiast),’ ‘ Clarifying Some Issues – Part 5,’ ‘ Trade to Win!’ ‘Optimization of the USDCAD Hedging Strategy – Bringing the USDCAD to Subjection,’ ‘A CHF Breakout Strategy,’ ‘Overview of My Signals Strategies,’ ‘Is It Realistic to Give Guarantees in Trading?’ ‘Monthly Trading Report (August 2011),’ etc.
I end this article with more quotes from Mr. Gavin:
“Beware not to be drawn to the over elaborate setups consisting of a plethora of indicators as this can often be quite intimidating to a new trader. When developing you methodology you’ll come to realize that a cleaner and simpler display of your charts will result in more concise trade planning and execution. Remember price action is the purest indicator you can use – learn it, listen to it and master it.”
“Forex Trading is one of the most rewarding and challenging journeys that you’ll embark on. The truth is that if you treat it with due respect and give it the time it deserves it’ll reward you generously. The early days will be tough, be under no illusion of that, and will require discipline, patience and hard work. You’ll learn many things about yourself and your character, but be rest assured that when you summit that initial mountain, the view is beautiful, the satisfaction sweet and the lessons learned are absolutely invaluable.”
Your questions and opinions are highly welcome.
With best regards,
Forex Signals Strategist, Funds Manager &Coach
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