Sit. Five. Good boy Catch! Good boy! Sit. Down. Wait. Go in!
That's training and discipline. That's exactly 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 some dollar-yen. Hope you like that short
introduction video there. You won't believe how many takes it took me to get him to
do those tricks. Now, this week's video is going to be quite short in duration but
please don't be under the illusion that length is always that important.
Despite what you may have heard, this is probably going to be the most important
and useful lesson that I've given here on my Youtube series, and I'm confident
that if you take on board what I say and actually follow the exercise that I'm
going to be giving you today, it could quite possibly change the way that
you've been trading in the past and turn 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 big promise but ultimately it does come down
to you and how much you want to be successful. So just give me a few minutes
of your time now and hopefully that proverbial light bulb will be switched
on and will stay on. Before I get into the details, let me remind you to
subscribe to the channel if you don't already 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 Instagram and indeed, Facebook which leads me on to
the next segway, if you follow me on Facebook you can now join me live every
Monday afternoon 2 PM. London time. That's 9 a.m. New York time. I stream
live to you, putting my teachings into practice, looking for trading
opportunities and discussing the markets in general. Freeto attend for all
those that wish to follow. Okay, let's get straight into it now. I know a lot of you
would have seen one of my earlier videos about the Cycle of
Doom. Basically, it was outlining why most
never make money trading the forex markets. 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 was about basically the reason why people
fail and that's because of the emotional and discipline side of the business. Many
come into this business expecting to make the money from the get-go. With
little work or little knowledge of how they are going to do this. They hop
between strategy after strategy dropping them the moment the strategy starts to
lose money, start to have losing trades, drop the strategy. Now, of course the
educated trader understands that losses are 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, you should 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 see through that. They drop the strategy
after just a few losses and then they basically butterfly on to the next one.
So today's challenge is going to help you stop that devastating practice once
and for now this challenge is to test your discipline have you got what it
takes to become a trader if you fail the challenge it's not a problem you can
learn from it you'll hope you see for yourself your own weaknesses and once
you know what your weaknesses are you once you know your problems you can
start putting them right you can dust yourself down and try again until you
complete the challenge and then know that you're gonna be trading
successfully going forward now I call this challenge the 25 trade challenge I
offer to all my members in the room we discuss all the time I look at their
results it is really really powerful and very insightful to your personality
here's how it works now first off I want you to write down a set of rules so
trading rules of a strategy now let me say at this juncture the intention of
the twenty five trade challenge is not to make money not interested in that so
you might want to be doing this on a demo account to start with so we're not
trying to make money so I want you to write down a set of rules sort of rules
of a strategy can be very very simple a simple moving average crossover with the
direction of the trend and with a bit of price action you can use one of my
strategies that I've taught you can make up one in your own it's just a very
simple strategy some simple laws are the times of the day that you're gonna be
trading I'm gonna get trade between nine and four o'clock you set out the maximum
percentage risk that you're going to have on each and every trade the walls
of entry very simple and the point is don't make this too complicated because
that is not the challenge the challenges are you able to follow the walls once
you've defined your set of walls maybe five or six set of rules have a
checklist and each time the rules apply you take the trade on the demo account
and you log each trade you log each trade on a trade journal you can do that
on a piece of pen and paper you can do that on an Excel spreadsheet you can do
whatever you wish but you've got to make sure you log each trade and every trade
has to be logged in accordance with this strategy was it a good entry was a bad
entry and so forth do that 25 times logging entries and log it exits
including the profit and loss you will be amazed that people that cannot do
this they will pack up and say no this strategy isn't working after eight
trades or or seven trades or six trades they'll say no it's not working over
time losing trades they will not continue with this challenge because
they'll just move on to the next one see if you can do that for twenty-five
trades come what may you will just do those
trays religiously following the strategy that you put out on paper now if you're
taking a risk reward ratio of about one to one you might even make money
depending if the strategy has got any weight at all any edge at all
but what I want you to see here by doing this strategy is the consecutiveness of
the wins and the loss you might have a series of wins and then
a series of losses and vice versa but the challenge is are you able to follow
your own rules for 25 times if you can do 25 then go and do 50 and when you can
do 50 trades following your set of rules and that's when you can analyze that
strategy decide whether it's working decide whether it's something you want
to take forward but more importantly you've proved to yourself you can follow
rules simple rules that you've set out you'll
be amazed most people can't follow other people's rules they can't even follow
their own rules so I encourage you to go away and do that and I really really
want to hear the results of how that twenty five trade challenge went for you
okay I'm gonna be perfectly blunt here and now I know this might upset a few
people but I'll say this if you think what I've just said it's just not worth
the effort can't be bothered to do it twenty five trades I've got better
things to do I'm just gonna move on to find another strategy chances are you
haven't got what it takes to be a trader the purpose of this challenge is to test
your emotional discipline in following rules we don't even want to start from
the first place chances are you are going to end up just donating your cash
to the people that can be bothered to put the effort in tighly up to you as
always if you like my video give me a thumbs up if you didn't give me a thumbs
down don't forget to subscribe to the channel as I have said don't forget to
hit that Bell notification and I look forward to seeing you on Monday at 2
p.m. at London time 9p9 a.m. New York time for a live stream discussing
markets and looking for trading opportunities till the next video happy
trading and good luck