TOWER ONE FX GROUP

In this step we start trading with real money. Our purpose here is to get experience and in general improve our performance towards the optimal. Since we have a system that we have developed, backtested, validated and traded on a demo account successfully, we have laid down a solid foundation on which to build our trading career. We are thus breeding confidence and expelling confusion, in other words exactly what is needed for success.

If you have any weaknesses, like doubt or hesitation, the market will make use of this to your disadvantage. It is not exactly that the market is sinister, but rather the way it works. If you think about it for a minute, you will understand that the market couldn't work any other way. For the minority to make money, the majority needs to lose and the market will take every chance it has to keep it that way. It will force its way. This is also the reason it is always the best to go with the flow of the market and not to try to push it your way. This can be really difficult in the beginning, since many of you have learned to get what you want through exhaustion of the counterpart (for example yelling and screaming as a child). The market will always be the winner, no matter how much you complain or beat your head in the wall. The market sets the rules and the tone so you better start playing by them. Let go and go with the flow!

Since the mind has a tendency to remember the good trades and “forget” (or suppress) the bad ones we must keep a trading diary.

I have prepared design for you please sned your request to my email towermcs@gmail.com. A trading Diary allows us to analyze each and every trade looking for strength and weakness. Once again we are trying to improve our performance trough feedback and gain confidence. Although most Trading Platforms today have integrated trade management, it is very useful and definitely a tool that promotes discipline and sound trading practices. I have found that it cements my understanding of a Trading System and fuels good trading habits.

The Trading Diary is simple to use. Just jot down the facts into the different fields and you are done. Fill in after you have entered the trade with your stop-loss and then again after the exit and give the trade your final grade. Note what went well and what went wrong. After every ten trades or so, go through them and check for things well done and mistakes. Look for patters. Ask yourself how you can repeat the good things you are doing and avoid the mistakes.

It is not advisable to add another indicator to your Trading System just because it doesn't go your way, believing you can filter out the bad trades. Usually you only introduce new ones. Besides when you alter the system, confidence plummets since it is not the same system anymore. And that is the last thing we want to happen. Don't fiddle with the system!!!!!

Keep a part of you mind on outlook for subconscious trade traps when you are trading. These are trades triggered by the subconscious to put you off course due to some unresolved subconscious issue. They can be very subtle and difficult to notice but usually the have a sort of a irrational or whimsical feeling about them, usually trades taken in a rash manner without confirming the validity of the trade. On the surface they may look like another trade, but a detailed examination will reveal their flaws.

It takes a little bit of practice to notice these trade traps. If you think you have a problem with subconscious trade traps then I suggest you imagine a famous, successful FOREX trader sitting behind you, looking over your shoulder, watching every trade you make, and making comments as you put on your trades. The imaginary trader will work as a detached second consciousness, evaluating each of your trades from a different view, the view of an experienced successful trader. Allow him/her to speak up when you are about to screw up. This method can also be useful even if you are not having a problem with subconscious trade traps as a way of keeping your thinking straight during trading.


Tip: At one time or another you will experience boredom. This usually happens when there is little action on the charts and sometimes this can go on for days, in very rare cases for weeks. Do not fall into the trap of taking boredom trades, they will most likely be losers. Don't trade just because you want to make money or because your fingers are itching to put on a trade. Remember, we want to make good trades, i.e. trades executed according to our validated plan. Countless trades have fallen into this trap of this self-defeating behavior. Trade your plan!


Action Step: This is a continuation of the previous Action Step. When you were writing down your goal story, did you notice feeling uncomfortable or any other negative feeling (boredom, frustration, loss of energy etc). These feelings can be very subtle. If you did, chances are that your subconscious is having reservations against your goal or some part of it. Usually you just need to rephrase it. Since the subconscious is having objections, we will let the subconscious come up with a reasonable solution. Simply ask your subconscious to provide a solution to the words or phrases that triggered the negative feeling. Sometimes a solution will come immediately, sometimes it make take days before it will pop into your conscious mind. Try to have faith in the process and let go. Everyday read through your story to keep your mind focused on your goal and write down your trading achievements in the Trading Diary and how they correspond to your goal.


Go to the next part, Step 7.