Hello Forex Nation!!
If you have not noticed my posts have been a little less frequent over the past several weeks. I take time in the summer to vacation and renew. I also enjoy going to trainings and seminars. Not all of these events tie directly back into trading currencies, but then again I also have other interest and passions.
I was at one such seminar last week in Los Angeles. I was networking after the event with a bunch of other entrepreneurs. We spoke about all kinds of topics (I was the only trader in the group … surrounded by mostly real estate investors!), but the topic that seemed dominate is the on around making the jump from W4 employee to being out on your own.
I know there are Forex traders out there that enjoy trading, but have never considered taking the leap to trading fulltime. But, if you are one of those that want to trade fulltime then I have some tips for you that would make that transition easier and they do not involve trading!
Be in Control
It goes without saying that you must have supreme confidence in your trading acumen to cross over. Always have a check and balance in place, because there is a fine line between supreme confidence and arrogance. The latter will end your stint faster that a bucket of ice on my hot summer patio in Phoenix. Recognize that you still have one last unexplored psychological hurdle to cross. You won’t have that paycheck to fall back on anymore! This brings another level of pressure that did not exist before.
Build a Business Plan
Like any other professional venue you will have to trade as a business. You should structure you trading within a legal business entity and develop a business plan which will guide your approach to trading.
Understand Wealth Building Principals
Before making the leap you should have the wealth building principals done pat! They are:
Make a constant investment to your account and watch it grow. I have written previously that you should have a separate Forex compounding account where you deploy conservative strategies and just let it grow! You can only withdraw funds from this account to feed other wealth builsing entities such as real estate or business investment. This account will be your golden goose!
Give your investments time for growth. Getting rich slow in some of your accounts is quite OK!
Know your yield. Your financial education will determine your yield. Remember an investment in you will always offer the greatest return. Become a life long student!
Follow these principals will lead to tremendous wealth!
Network!!
Build a network of entrepreneurs and traders. Seek out their knowledge and expertise on items such as health insurance. Take every advantage your corporation will allow.
One final point to consider, think about developing another source of revenue outside of your trading account. At this stage you have developed an expertise that people are willing to pay to access. Finding a way to leverage this could provide an additional stream of income, adding financial flexibility.
These are a few points to consider. It is way more than just pure trading, but necessary steps to ensure your success!
Happy Trading!!
Global Macro Forex and Financial Market Education, Research and Analysis utilizing Elliott Wave, Fibonacci and Gann Forecasting Techniques -
Wednesday, July 19, 2006
Sunday, July 16, 2006
Entries and Exits
Hello Forex Nation,
Well, I just returned from some well earned rest & relaxation! It is always a good time to escape the heat of the desert during the summer months. One of the things I like to do during my down time is to catch up on my reading. One of the key points on the Roadmap to Forex Success (visit FX Trade Central for more details) is continuous education and one of my favorite ways is to read.
I just finished "Entries & Exits: Visits to Sixteen Trading Rooms" by Dr. Alexander Elder. I have added this book to the "must read" category for anyone who trades. It really does not matter what instrument you trade, this is a gotta have to any success library!
The long and short of it is the Dr. Elder visit 16 traders that he has met and mentored throughout his career. The traders explain, in short story format, how and why they trade the way they do. This is followed my Dr. Elder's commentary on their trades. The "gem" of this book is to follow the commentary of each trader. In theirs words you will gain great insight and knowledge and determine they are no different than us, so similar and so unique. These trader have cracked the code and the nuggets provided will help you do the same. It is a very easy read, a kin to 16 short stories. I encourage you to read each story and reflect on what lessons you can bring into your own trading room.
I don't care if you get this book from me (http://www.squidoo.com/forexjourney), your local library or borrow from a friend ... just get and read this book! It is worth the 10 pips price of admission!!
Happy Trading!!
Well, I just returned from some well earned rest & relaxation! It is always a good time to escape the heat of the desert during the summer months. One of the things I like to do during my down time is to catch up on my reading. One of the key points on the Roadmap to Forex Success (visit FX Trade Central for more details) is continuous education and one of my favorite ways is to read.
I just finished "Entries & Exits: Visits to Sixteen Trading Rooms" by Dr. Alexander Elder. I have added this book to the "must read" category for anyone who trades. It really does not matter what instrument you trade, this is a gotta have to any success library!
The long and short of it is the Dr. Elder visit 16 traders that he has met and mentored throughout his career. The traders explain, in short story format, how and why they trade the way they do. This is followed my Dr. Elder's commentary on their trades. The "gem" of this book is to follow the commentary of each trader. In theirs words you will gain great insight and knowledge and determine they are no different than us, so similar and so unique. These trader have cracked the code and the nuggets provided will help you do the same. It is a very easy read, a kin to 16 short stories. I encourage you to read each story and reflect on what lessons you can bring into your own trading room.
I don't care if you get this book from me (http://www.squidoo.com/forexjourney), your local library or borrow from a friend ... just get and read this book! It is worth the 10 pips price of admission!!
Happy Trading!!
Friday, July 07, 2006
Where Do We Go From Here?
Well, US non-farm payroll numbers where released, the market reacted and now all the traders have retired for the weekend. For the record, US non-farm payroll (NFP) rose by 121,000 in June. A figure I was personally watching this morning, the revision from May (which I thought was low) was revised from 75,000 to 92,000. Also, average hourly earnings increased to 0.5% from 0.1%, which to me reflect employers more willing to pay overtime than take on new employees.
No USD friendly numbers!
So, where do we go from here? I am not an expert on Forex fundamentals. I do, however, recognize the importance of fundamental analysis in maintaining and confirming the long-term technical view of the currency pairs I trade. Can the long awaiting sentiment change in the USD finally be upon us? Before you get comfortable in your range-trading strategies here are a few points to consider for your summer trading.
The Federal Reserve – My favorite people (ha, ha, not!). Will interest rates continue to rise or will Bernanke and crew take their collective foots of the economic breaks?
Economic News – Do the NFP numbers signal a slowing economy and can we expect trade balance to narrow and foreign capital flows into the US slow?
Energy - Will the EU spat with Russia over energy policy have a greater impact on the global economy? Will the North Atlantic hurricane season be as devistating as last year? With another rough season forecast, it is sure to spook investors!
World Politics - Will the geopolitical situation in Iran and now North Korea be another reversal factor? Will Afghanistan's reviving insurgency rival the intensity in Iraq?
I don’t know the answers, but as we progress in the month I am taking a keener interest in the fundamentals. I do declare myself a technical trader. I am looking for chart patterns, wave patterns and am still best friends with Mr. Fibonacci. However, I am learning to appreciate fundamentals more and more to the point where I now incorporate them as an additional confirmation in my trade plan.
Technicals are the rudder of the sail boat, but fundamentals deliver the wind to the sails!!
Happy Trading!!
Remember FX Trade Central and Forex Journey Lens are great sources for Forex training, education and information!!
Why Forex? Click Here now and discover the currency market for yourself!
No USD friendly numbers!
So, where do we go from here? I am not an expert on Forex fundamentals. I do, however, recognize the importance of fundamental analysis in maintaining and confirming the long-term technical view of the currency pairs I trade. Can the long awaiting sentiment change in the USD finally be upon us? Before you get comfortable in your range-trading strategies here are a few points to consider for your summer trading.
The Federal Reserve – My favorite people (ha, ha, not!). Will interest rates continue to rise or will Bernanke and crew take their collective foots of the economic breaks?
Economic News – Do the NFP numbers signal a slowing economy and can we expect trade balance to narrow and foreign capital flows into the US slow?
Energy - Will the EU spat with Russia over energy policy have a greater impact on the global economy? Will the North Atlantic hurricane season be as devistating as last year? With another rough season forecast, it is sure to spook investors!
World Politics - Will the geopolitical situation in Iran and now North Korea be another reversal factor? Will Afghanistan's reviving insurgency rival the intensity in Iraq?
I don’t know the answers, but as we progress in the month I am taking a keener interest in the fundamentals. I do declare myself a technical trader. I am looking for chart patterns, wave patterns and am still best friends with Mr. Fibonacci. However, I am learning to appreciate fundamentals more and more to the point where I now incorporate them as an additional confirmation in my trade plan.
Technicals are the rudder of the sail boat, but fundamentals deliver the wind to the sails!!
Happy Trading!!
Remember FX Trade Central and Forex Journey Lens are great sources for Forex training, education and information!!
Why Forex? Click Here now and discover the currency market for yourself!
Thursday, July 06, 2006
July USD Outlook
Here is what I see as a possible July USD Outlook
Possible end of tightening cycle
No Federal Reserve meeting – No interest rate
Q2 GDP will likely drop below 3% vice 5.3% in Q1
Wave 5 extension beginning EUR/USD and GBP/USD
July could be a rough month for the USD!
Tuesday, July 04, 2006
Forex and the Job
So you live in the western part of North America (I trade from Phoenix, Arizona) and you have discovered the power of trading the Forex market. Your passion runs so deep that almost instantly you are convinced that you want to do this full time. You get your requisite training and are ready to trade your live account. Just one problem … the job is keeps getting in the way!
Those of us who live in the Western part of the United States and Canada have a unique challenge when it comes to currency trading. Our time zones are not conducive to trading the European session and our window is small to trade the New York session before we must pack it up and hit the road. The Asian session is perfect timing, but not very active in the currencies rookies tend to focus on first.
I absolutely love trading the European session, but I am wasted the entire day from lack of sleep. I am very selective when I trade with London, because you ALWAYS want to be focused and on top of your game when trading!
Here are some simple recommendations to help you through your transition period.
1. Do Your Homework! This is valid with any trader, but for those of us who have a small window to trade peak hours need to be prepared to take advantage of any pips the market is offering up. This is really not a disadvantage. This can build and nurture a most profitable habit.
2. Go to Bed Earlier! It is very important to get your rest and trading in the Pacific Time zone requires an early wake up call to trade the London-New York overlap session. I awake 4:00 am pacific time to make sure I am awake and prepared when New York opens.
3. Develop a Solid Exercise Plan! I find when I am in decent condition I can get an additional 2 hours more of focused time out of my day. Those two hours I dedicate to making myself a better trader.
4. Find Your Trading Style! Synergize your trading style with your trading session. If you are like me and primarily trade from the 15-minute, 1-hour and 4-hour charts the European and New York sessions are my bread and butter. I use the Asian session to do my homework. If you are a position trader a whole new set of synergies come into play.
5. Be confident in your analysis. When I first started seriously trading currencies and juggling the job I found I had done my homework, planned an entry only to miss it because it occurred while I was in the middle of my mid-morning meeting. I learned very quickly to get comfortable with entry orders.
As you can see from these simple examples that becoming successful in currency trading requires two key elements…
Persistence will allow you to climb the learning curve and learn from your mistakes!
Change of mindset to not allow life to dictate the level of your currency trading success!
Happy Trading!!
Visit Forex Journey Lens for other tips and tricks.
Those of us who live in the Western part of the United States and Canada have a unique challenge when it comes to currency trading. Our time zones are not conducive to trading the European session and our window is small to trade the New York session before we must pack it up and hit the road. The Asian session is perfect timing, but not very active in the currencies rookies tend to focus on first.
I absolutely love trading the European session, but I am wasted the entire day from lack of sleep. I am very selective when I trade with London, because you ALWAYS want to be focused and on top of your game when trading!
Here are some simple recommendations to help you through your transition period.
1. Do Your Homework! This is valid with any trader, but for those of us who have a small window to trade peak hours need to be prepared to take advantage of any pips the market is offering up. This is really not a disadvantage. This can build and nurture a most profitable habit.
2. Go to Bed Earlier! It is very important to get your rest and trading in the Pacific Time zone requires an early wake up call to trade the London-New York overlap session. I awake 4:00 am pacific time to make sure I am awake and prepared when New York opens.
3. Develop a Solid Exercise Plan! I find when I am in decent condition I can get an additional 2 hours more of focused time out of my day. Those two hours I dedicate to making myself a better trader.
4. Find Your Trading Style! Synergize your trading style with your trading session. If you are like me and primarily trade from the 15-minute, 1-hour and 4-hour charts the European and New York sessions are my bread and butter. I use the Asian session to do my homework. If you are a position trader a whole new set of synergies come into play.
5. Be confident in your analysis. When I first started seriously trading currencies and juggling the job I found I had done my homework, planned an entry only to miss it because it occurred while I was in the middle of my mid-morning meeting. I learned very quickly to get comfortable with entry orders.
As you can see from these simple examples that becoming successful in currency trading requires two key elements…
Persistence will allow you to climb the learning curve and learn from your mistakes!
Change of mindset to not allow life to dictate the level of your currency trading success!
Happy Trading!!
Visit Forex Journey Lens for other tips and tricks.
Sunday, July 02, 2006
Conquer the Crash
A Book Review
“Conquer the Crash”
By Robert R. Prechter Jr.
If you have been trading the Forex market you will have no doubtlessly come across R.N. Elliott’s Wave theory. In this book Robert Prechter, President of Elliott Wave International, details a compelling economic theory using this wave analysis. Prechter walks us through a technical, social and fundamental analysis of past economic events in a manner for which prior wave analysis is not necessary. He is leading us toward a prediction of future economic events which will leave you staggering! His stunning conclusion of an upcoming economic downturn not seen since the Great Depression will leave you thinking not only of future planning, but also of current events. Warning aside, there are a myriad of strategies outlined in this book that, once deployed, can not only allow you to survive this economic apocalypse, but flourish despite the odds.
The blog is dedicated to Forex education. During major economic downturns your financial education will be the difference between prosperity and struggle. This is must reading for traders and investors alike!!
Click Here to obtain your copy of “Conquer the Crash” by Robert Prechter.
Click Here to preview the lastest Elliott Wave International Market Perspective.
Happy Trading!!
“Conquer the Crash”
By Robert R. Prechter Jr.
If you have been trading the Forex market you will have no doubtlessly come across R.N. Elliott’s Wave theory. In this book Robert Prechter, President of Elliott Wave International, details a compelling economic theory using this wave analysis. Prechter walks us through a technical, social and fundamental analysis of past economic events in a manner for which prior wave analysis is not necessary. He is leading us toward a prediction of future economic events which will leave you staggering! His stunning conclusion of an upcoming economic downturn not seen since the Great Depression will leave you thinking not only of future planning, but also of current events. Warning aside, there are a myriad of strategies outlined in this book that, once deployed, can not only allow you to survive this economic apocalypse, but flourish despite the odds.
The blog is dedicated to Forex education. During major economic downturns your financial education will be the difference between prosperity and struggle. This is must reading for traders and investors alike!!
Click Here to obtain your copy of “Conquer the Crash” by Robert Prechter.
Click Here to preview the lastest Elliott Wave International Market Perspective.
Happy Trading!!
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