Entering the forex world
Beginning of 2015 I was fed up with my work and started to search for alternatives. I found an ad on Swedish newspaper site about a guy who had built an automated system to trade binary options. The system could predict fluctuations in currencies on an hourly basis with a very high accuracy, at least, so it claimed.
I was at a stage where I figured, I have nothing to lose – so I tried it. I never had any success doing it but it caught my interest in the structure of currencies and I started to seek more information about the forex market.
I found a very thorough course on forex trading, “School of pipsology”.
I learned about candlestick formations, spreads, pips, timeframes, scalping, day & swing trading, correlations and how news, interest rates and political announcements impact the market. On top of that you have investment firms and hedge funds (called Big Dogs) that in an instant can change the conditions pending on if they are buyers or sellers and at what level.
It intrigued me and I registered an account with a broker and found another company who offered live coaching calls twice per week for traders. So I signed up to that as well.
Soon I realized that trading the forex market was much harder than I ever imagined.
Mental side of trading
Success as a trader is really only about two things:
- Finding a system
- Follow the system and set up trading rules (Mental aspect).
Finding a system is not a problem. There are tons of systems available online, and you can easily find a system that is both logical, easy to apply and profitable.
Unfortunately having a system constitutes of only 5% if you succeed or not.
The other 95% comes down to your mental abilities and strength, follow the system and applying your rules.
To stand a chance of succeeding you need to define firm rules and you need to stick to those rules no matter what. This sounds easy but it is really not.
Pending on system you may have a win rate of 60% or lower meaning that 4 out of 10 trades (at least) will be loses. Imagine you have 4 losing trades in a row – yet you must trust your rules with 100% conviction and when your edge (your definition when to enter the market) appears you must act with confidence. This is mentally extremely tough.
Or the other way around you – you have 6 winners in a row, you must avoid “jumping the gun” or be to cocky and increase the amount you bet on every trade. Follow the rules – NO MATTER WHAT.
I couldn’t do it.
How failure become success
But through the live coaching calls I got in contact with a very successful trader who had really mastered the mental aspect of trading. I received tips and tricks how he changed and strengthen his mental ability. Books he had read, tools like subliminal programs, meditation, mindmovies and other things that he used and still uses consistently on a daily basis.
He programs his mind with things constantly – when he is driving, moving the lawn, cooking or anything else he tries to combine that with listening to audiobooks and other positive messages.
I now have him as a mentor and accountability partner in that sense that I send him a mail every week on what I have been doing last week (following my plan or not) and what I plan to do upcoming week. We share tips regarding books and tools that we have tried.
Since October 2016 I have invested a lot of time in my personal development by applying some of his methods and added some others and I am noticing big differences in my life. I am much more confident, I worry less, I act instead of procrastinate and I focus on what I want instead of what I don’t want for instance.
I am in beginning of my mental journey but I can tell you that I will never stop because the impact it has on my life is so profound.
Therefore I consider failing in the forex market my biggest success.
Co-founder, Unlimited Karma