Good boyCatch! Good boy! Sit.
Go in! That's training and discipline.
That'sexactly what you need if you want to achieve success in the financial markets.
Bit the price action trading helps as well.
Come on over, let's go sell somedollar-yen.
Hope you like that short introduction video there.
You won't believehow many takes it took me to get him to do those tricks.
Now, this week's video isgoing to be quite short in duration but please don't be under the illusion thatlength is always that important.
Despite what you may have heard, this isprobably going to be the most important and useful lesson that I've given hereon my Youtube series, and I'm confident that if you take on board what I say andactually follow the exercise that I'm going to be giving you today, it couldquite possibly change the way that you've been trading in the past andturn you into that consistently profitable trader that you aspire to be.
And of course, that's why we're all here! of course.
Now, I know that is a bigpromise but ultimately it does come down to you and how much you want to besuccessful.
So just give me a few minutes of your time now and hopefully thatproverbial light bulb will be switched on and will stay on.
Before I get intothe details, let me remind you to subscribe to the channel if you don'talready do so, and make sure you hit that little bell icon, so that you'll be notified, the moment my next video has been released.
You can follow us on Instagramand indeed, Facebook which leads me on to the next segway, if you follow me onFacebook you can now join me live every Monday afternoon 2 PM.
That's 9 a.
New York time.
I stream live to you, putting my teachings intopractice, looking for trading opportunities and discussing the marketsin general.
Freeto attend for all those that wish to follow.
Okay, let's getstraight into it now.
I know a lot of you would have seen one ofmy earlier videos about the Cycle of Doom.
Basically, it was outlining why most never make money trading the forexmarkets.
Now, if you're not seeing the video you can check out the link above.
Make sure you do so after watching this video.
But to summarize the video it wasabout basically the reason why people fail and that's because of the emotionaland discipline side of the business.
Many come into this business expecting tomake the money from the get-go.
With little work or little knowledge of howthey are going to do this.
They hop between strategy after strategy droppingthem the moment the strategy starts to lose money, start to have losing trades, drop the strategy.
Now, of course the educated trader understands that lossesare inevitable.
It happens to be just part of the business.
Remember, the coin toss theory? Toss a coin a hundred times or a thousand times, youshould see the laws of probability state a 50-50 distribution heads over tails, but the randomness of the distribution over the shorter timeframe is basically, unknown.
Now, the rookie trader; the beginner trader won't be able to seethrough that.
They drop the strategy after just a few losses and then theybasically butterfly on to the next one.
So today's challenge is going to helpyou stop that devastating practice once and for now this challenge is to testyour discipline have you got what it takes to become a trader if you fail thechallenge it's not a problem you can learn from it you'll hope you see foryourself your own weaknesses and once you know what your weaknesses are youonce you know your problems you can start putting them right you can dustyourself down and try again until you complete the challenge and then knowthat you're gonna be trading successfully going forward now I callthis challenge the 25 trade challenge I offer to all my members in the room wediscuss all the time I look at their results it is really really powerful andvery insightful to your personality here's how it works now first off I wantyou to write down a set of rules so trading rules of a strategy now let mesay at this juncture the intention of the twenty five trade challenge is notto make money not interested in that so you might want to be doing this on ademo account to start with so we're not trying to make money so I want you towrite down a set of rules sort of rules of a strategy can be very very simple asimple moving average crossover with the direction of the trend and with a bit ofprice action you can use one of my strategies that I've taught you can makeup one in your own it's just a very simple strategy some simple laws are thetimes of the day that you're gonna be trading I'm gonna get trade between nineand four o'clock you set out the maximum percentage risk that you're going tohave on each and every trade the walls of entry very simple and the point isdon't make this too complicated because that is not the challenge the challengesare you able to follow the walls once you've defined your set of walls maybefive or six set of rules have a checklist and each time the rules applyyou take the trade on the demo account and you log each trade you log eachtrade on a trade journal you can do that on a piece of pen and paper you can dothat on an Excel spreadsheet you can do whatever you wish but you've got to makesure you log each trade and every trade has to be logged in accordance with thisstrategy was it a good entry was a bad entry and so forth do that 25 timeslogging entries and log it exits including the profit and loss you willbe amazed that people that cannot do this they will pack up and say no thisstrategy isn't working after eight trades or or seven trades or six tradesthey'll say no it's not working over time losing trades they will notcontinue with this challenge because they'll just move on to the next one seeif you can do that for twenty-five tradescome what may you will just do those trays religiously following the strategythat you put out on paper now if you're taking a risk reward ratio of about oneto one you might even make money depending if the strategy has got anyweight at all any edge at all but what I want you to see here by doingthis strategy is the consecutiveness of the wins and the lossyou might have a series of wins and then a series of losses and vice versa butthe challenge is are you able to follow your own rules for 25 times if you cando 25 then go and do 50 and when you can do 50 trades following your set of rulesand that's when you can analyze that strategy decide whether it's workingdecide whether it's something you want to take forward but more importantlyyou've proved to yourself you can follow rulessimple rules that you've set out you'll be amazed most people can't follow otherpeople's rules they can't even follow their own rules so I encourage you to goaway and do that and I really really want to hear the results of how thattwenty five trade challenge went for you okay I'm gonna be perfectly blunt hereand now I know this might upset a few people but I'll say this if you thinkwhat I've just said it's just not worth the effort can't be bothered to do ittwenty five trades I've got better things to do I'm just gonna move on tofind another strategy chances are you haven't got what it takes to be a traderthe purpose of this challenge is to test your emotional discipline in followingrules we don't even want to start from the first place chances are you aregoing to end up just donating your cash to the people that can be bothered toput the effort in tighly up to you as always if you like my video give me athumbs up if you didn't give me a thumbs down don't forget to subscribe to thechannel as I have said don't forget to hit that Bell notification and I lookforward to seeing you on Monday at 2 p.
at London time 9p9 a.
New Yorktime for a live stream discussing markets and looking for tradingopportunities till the next video happy tradingand good luck.