Hi, I would like to wish members new & old a Happy & Prosperous New Year and hope you enjoyed the festive season.
Normal service re detailed analysis will resume on Sunday.
My Forex Story
I have been doing it since 2002 and that’s WAY too much time spent sat looking at charts.
I have never previously done anything in my working life for more than 5 years so my 10 year milestone was not one that I celebrated. If you read the 5 phases of a forex trader article (its a MUST read) you will realise that “being bored with trading” is not an unusual phenomenon.
The flip side is that I first felt that way back in 2007/8. Trading had become a J.O.B, yes I was good at it but it didn’t feel like a challenge anymore. The positive part of the equation is that once you hit this stage results often improve as you are no longer emotionally attached to trades. I then started working remotely for a hedge fund as well as private clients which was a new challenge/stage in my trading journey.
In 2009 the idea of Forex mentorpro was formed. So for the next few years I enjoyed mentoring, albeit from a distance and with a limit to what can be offered for less than $50 a month. SO that was my challenge and new direction, but by 2012 I was seriously considering going in a different direction.
On to 2014
This was my best trading year ever and included my biggest ever single trade and a much higher average win ratio. So what caused the transformation?
The result is less screen time (WAY less), fewer trades, lots of time to plan and more pips/profit per trade.
The other important factor was teaming up with Fotis Papatheofanous.
I had previously always been a technical trader. If my “tea leaves” said short the Euro I did it.
I had found a trading style (M2) that worked for me and it made money so I kept going.
However after the financial crash of 2008/9 it had become more difficult trading just from charts so I had been paying a lot more attention to news and the fx calendar so my emphasis had started to veer a little more in this direction. This is not to say that technical trading is finished. Many traders, including our own Pierre & Omar continue to do well trading this way.
When I met Fotis suddenly his strategy of approaching the markets from a completely different angle: fundamentals first and technical last opened my eyes to what is actually going on around the financial world. How all financial markets are inter related. How movements in for example treasury bonds can give big clues as to future moves in specific currencies.
WHY price was moving in a certain direction and WHY it was likely to keep doing so meant I was more able to ignore potential losing trades and stay longer in winners.
It also meant I wasn’t limited to just trading the majors anymore (3 of my best trades of 2014 were the Euro/No, Gbp/Cad & Gbp/Nzd which I had never traded before).
Fotis and I now run a $multi million futures fund together and in the New Year have been contracted to trade for a large pension fund using this global macro approach for forex and other indices. We also have created a professional traders academy for those who are serious about trading for a living and are willing to put in the time and effort to achieve their goals. A byproduct of this is that we will employ successful students as traders if they can be consistently profitable.
We also have a former student and early member of Forex mentorpro, Judith Waker, working as an analyst for us and sharing her skills and knowledge at FMP (Pierre & Omar also originally joined us as members before becoming successful traders and mentors in their own right) so we do have a history of bringing people through the ranks 🙂 .
The Moral of the Story?
In trading as in any other profession you need to constantly be looking to update your skills and evolving if you are to stay on top of your game. If you are not willing to put in the time and effort and spend money to further your education & continue to develop you will become stale. One of the members wrote a brilliant article a few years ago titled “Treat Trading Like a Hobby & it Will Pay you Like a Hobby.” So the question you must ask yourself is what do you want to achieve and how much are you willing to give to get there?
Those of you who are members of forexmentorpro.com are surrounded there by a team of working, professional traders who have all been where you are now. You have access to pro trader Pierre in the forum on a daily basis. You have support, advice and analysis but at the end of the day you need to step up to the plate. If you REALLY want to become a successful, pro level trader in 2015 then its in your hands. DO IT!
Next week I will post Fotis Papatheofanous’ Global Macro View for 2015. This is usually only available to private clients but will give you his views on what is likely to happen in the coming weeks and months and how to profit. it will also show you how a professional fund manager approaches the markets and plans his trades