LTG GoldRock - The Ultimate Solution for Forex Traders

The ultimate solution for Forex Traders

 

Category: ‘Forex Classroom’ Category

July 25th, 2010
Forex Classroom

7 Principles of Consistency

  1. I objectively identify my edges
  2. I predefine the risk of every trade
  3. I completely accept the risk or I am willing to let go of the trade
  4. I act on my edges without reservation or hesitation
  5. I pay myself as the market makes money available to me
  6. I continually monitor my susceptibility for making errors
  7. I understand the absolute necessity of these principles of consistent success and, therefore, I never violate them
July 23rd, 2010
Forex Classroom

5 Fundamental Truths of Trading

  1. If only we all had someone watching over our trading...

    Anything can happen

  2. I don’t need to know what is going to happen next in order to make money
  3. There is a random distribution between wins and losses for any given set of variables that define an edge
  4. An edge is nothing more than an indication of a higher probability of one thing happening over another
  5. Every moment in the market is unique
July 5th, 2010
Forex Classroom

Does Your Opinion as a Trader Really Matter?

I have seen many traders blow up trading accounts simply because they refuse to accept they are wrong. They are convinced in their own mind that due to their research and back testing that their strong opinion will be right.

Trading is a funny game and often goes against the grain of human thinking. Generally speaking if you study something long enough and research it using the latest techniques and professional tools available you have a good chance of being right. This is the very type of mindset thinking that people bring into the trading arena and lose.

A few years ago I knew a trader who lost over $50,000 in 3 hours trading futures and dinted his confidence in a big way.  He  employed a friend  who he’d worked with who is an incredibly bright guy. He had previously designed extremely sophisticated town planning systems throughout the world. A very bright guy indeed. The trader that had lost the money said to me one day that his opinion was that his mate had the perfect skills and technical ability to develop a system to get all the money back he’d lost. It was at a relatively early stage in my trading career and I didn’t know much better but all I kept thinking was, I hope he shares it with me if it works.   Needless to say it didn’t, but the talent assembled to research and put together a trading system that showed incredible returns when back tested never materialised when traded live.  Their opinion was wrong. » Continue Reading »

June 29th, 2010
Forex Classroom

The Freak Out Trader

Trading can be rollercoaster, but it's important to have the nerve to sit back and enjoy the ride.

The Freak Out Trader can be both a winning and losing trader, but is always a newbie trader as a Freak Out Trader NEVER makes it to professional status with consistent profits.

The Freak Out Traders emotions are let loose to the extent that when they have wins their excitement drives them to freak out and get so excited they think they are bullet proof. The Freak Out Trader also experiences depression and freaks out on the losses too. What is going on subconsciously is that they don’t realise it yet, but the reason why they are freaking out is because they are not in control. The market is in control. They are usually trading too much money, trading too often and don’t really understand the system they are using. These examples usually come down to inexperience and their attachment to money and certainty we all have when we start trading. As a trader you need to have a detachment to the money and learn to trade the probability rather than the expected certainty that humans have when we enter the trading arena.

If a new trader experiences a few winning trades to begin with they are lulled into a false sense of security. They begin to think that “this is too easy” and begin to trade larger sums or over trade and take multiple positions. » Continue Reading »

June 28th, 2010
Forex Classroom

Trading Complication

One of the amazing aspects about trading and making money is that humans often think that to make money the system must be complicated and sophisticated. Certainly most people over complicate trading and think that they need to look the goods with a heap of screens, indicators and often alarms. I’ve seen and heard it time and time again that a trader has come up with a new indicator that’s going to blow the market out of the water, only to find that it fails miserably when it comes to trading it with a live account.

One aspect of trading that you must understand and take on board RIGHT NOW is this. The market is only a two horse race. Buyers and Sellers are the only horses in this race and the price is either going up or down. How simple is that. Yeah I know what you are thinking, it has to be more complicated than that, ITS NOT!   Simply looking at a trend and placing a trade with a trend has the probability of continuing in the direction of the trend rather than reverse and go the other way. But why is it humans consistently try and build systems and indicators that over complicate things. The more complicated you make things the less likely you will make money, period. » Continue Reading »

June 25th, 2010
Forex Classroom

Accountability & Self-Deception

I like to encourage Traders to spend the weekend as a time for reflection. Did you follow your trading plan this week? Was each and every trade well thought out and are your results inline with your expectations?

It’s important to review your results and try to be as honest as possible with yourself. Run through each trade you took and make sure it actually is inline with your Trading Plan. It’s human nature to make excuses for those trades that you jumped out of early or took because you had a gut feeling, but unfortunately the only person you are deceiving is yourself.

As you may have read about in Narelle’s bio, some trader’s like to keep their partners involved with their trading results for Accountability. This is great advice to find yourself a Trading Buddy, and can be a very productive excercise. So if you don’t yet have a Trading Buddy to review your trades with, then reach out to someone you know and include them in your trading evaluation.

June 14th, 2010
Forex Classroom

Crawl, walk, jog, run and then sprint…

There is one golden rule that you must follow if you are going to trade real money from day  number one. Learn the platform first and then trade micro lots of .10c to prove your success. Don’t kid yourself and think you can just roll with an account with $10k and trade full 1.00 lots  or you will crash and burn. Crawl, walk, jog, run and then sprint. You can potentially make a lot of money and get very rich slowly, but it will usually be quicker than you think if you learn these skills.

Opening an Account

When you start trading Forex, open an account with no more than $1000 dollars. In fact, you can open an account with as little as $200 if you wish. You can add more money to your account in time with your success and profits but here’s an iron clad guarantee. If you can’t turn $1000 into $2000, there is no hope that with more money such as $20,000 that you will turn  that into $40,000. It rarely ever happens and for those that do, it’s usually luck.

June 8th, 2010
Forex Classroom

Is +400 or -400 pips a positive or negative result?

There is a misconception and perhaps an easily overlooked fact about Forex trading and how profits are really calculated.

Forex is an unique market where as the price moves from one pip to another pip you as the trader can chose what each point is going to be worth before you enter the trade. For example if we are buying shares on the stock market each share will have a specific value, for example $1.20. You can’t alter it.

When you invest in Forex, the trading platform will ask what you want each pip (or point) to be worth. In other words if the EURUSD is trading at 1.1976 and it moves to 1.1977 that is one pip. You can chose the smallest volume to be 0.01 which is essentially .10c. You could have each point be worth $10,000 if you account could handle it.

That brings me to the point of traders making or losing pips and applying the real return on investment.

Here is an example trader John.

John takes 10 trades in a month and makes a +400 pip result with a 60% success rate of hitting his profit target.  You would assume that John would be pleased with this result. He can hold his head high as a  winner, he made +400 pips and a nice profit.  Or did he? » Continue Reading »

June 3rd, 2010
Forex Classroom

An Introduction to Forex – Live

Earlier this week Andrew Barnett and the LTG GoldRock Team ran a special live introduction to Forex in Brisbane. Thank-you to everyone who came along, especially the very dedicated couple that drove from Lismore!

If you are interested in attending a live introduction to forex trading, then there are still some limited places left for Sydney on the 16th of June, and Melbourne on the 17th of June.

Due to the high-demand we are also going to be visiting Perth on the 26th of June.

So if you are interested in learning more about the LTG GoldRock Program or want to learn about why Forex is such an attractive market to trade… then we encourage you to take 2hrs out of your week and attend one of these live workshops. You never know it could be exactly what you have been looking for…

To book your seat at any of the Live Events then please click on your chosen event below… » Continue Reading »

May 31st, 2010
Forex Classroom

It’s time to review and reflect…

All through our first day at our High Achievers Conferences we have been stressing the importance of following a specific trading plan and executing correctly on every front. The check list for you is below and I urge you to conduct this check every month to evaluate your personal performance. Make time this weekend to spend 15 minutes and answer the following questions. Keep a diary and do it every month.

» Continue Reading »