Whilst doing some Housekeeping in my email account, I came across and was reminded of an email I had sent as a reply to a prospective student, who unfortunately could not afford our Personal Mentorship Programme (PMP) lessons. In my reply I wanted to be helpful, so I tried to summarise the Key areas that he should work on until he was in such a position to be able to take advantage of our PMP. Here is the main body of the email, with a few additional tweeks, containing what I suggested:
‘No problem, the key things you need to concentrate on are:
- Support (Demand) and Resistance (Supply) – Learn to identify Key levels on your charts by looking left on your chart.
- Price Action – Look at the previous swing Highs and Lows and identify trends/reversal or consolidations or common price patterns and candlestick patterns.
- Learn how to conduct Multi-Timeframe Analysis – Monthly/Weekly/Daily/4hr/1hr charts – look for Confluences/Hot Spots where lots of things seems to be occuring or meeting at the same point. This will also provide you with the ‘Context’ of any trade you may be planning.
- Apply Key Support and Resistance Trend Lines from the above charts
- Adopt and use Rigorous Risk and Money Management – only risk a maximum of 1% of your trading account on any one trade, which may include multiple entries totalling 1%. The maximum number of trades you should have open at any one time should not exceed a total of between 3 and 5% Risk on your whole trading account. The way to ensure this is to use a Low Level of Leverage as this will stop you overtrading. If you haven’t read our Forex Trading Survival Rules yet then please do so as it may save you a lot of pain and anguish.
- Be aware of News Flow – (Hint: Try www.ForexLive.com)
- Ask yourself: ‘How many reasons have I got to take this trade?’ – the more the better as the probability of success goes up with the number of reasons.
- Plan every trade and then trade that plan if price provides a favourable entry opportunity. Make sure you know where you are going to exit the trade if it goes against you (Hint: use a well placed Stop Loss) and where you are going to take profits (Hint: set take profit orders). Remember the 6 Ps – Prior Planning and Preparation Prevents Poor Performance.
- Learn and develop the Discipline of a Soldier and Patience of a Saint – the discipline to stick to your Risk and Money Management Rules, to Plan your trades and to trade your plan. The patience to WAIT for a favourable trade and a confirmed entry.
- Keep a Journal/Trading Diary and try to be accountable to someone for your trading endeavours.
- Make your own strategic Trading Plan (Why, What, When, How etc)
- Save some money regularly, no matter how small, to seed and if necessary top up a future trading account. In the meantime trade in a Demo Account until you have a track record of consistent profitability (at least 6 months, preferably a year or more)
If you need help with the above, then we can help you and take you to the next level if you wish.
If you want to be sent more supporting material to help you acheive the above then go and subscribe here: Free Forex Trading Downloads & Success Formula Essentials
So whilst there is clearly more to trading, I believe the above covers most of the bases irrespective of what strategies you may be using. If you would like to find out more about our One to One Personal Trading Coaching & Mentorship Training Programme then click the highlighted text.
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