Understand The Difference
On Saturday, I spoke to a small group of people [20-30] about trading and how to get started, what to do, etc. During an afternoon break, I had a lovely couple approach me and ask if they could speak to me privately after the function was over. Of course I said sure thing, but wait until everyone else was finished asking questions and then be the last ones left; this would allow time for me to be thorough with whatever they wanted to talk about.
Later, after making personal introductions, the mans wife cut right to the chase; “We are afraid to trade; markets scare us to death; the uncertainty surrounding the whole process seems daunting and we can’t get our arms around it; and finally, we don’t know who to trust.
[I’m thinking to myself, “Well, is this all? Need vitamin advice? How about astrological advice or winning lottery numbers?” Of course I’m just kidding here, but the ease and straightforwardness of her request, along with her implied assumption I can answer this, gives me wonder if I am slowly turning into Bert. If only my Parents and/or Grandparents could see this, they would die all over again; “Wha? You want advice from who? He can’t even mow the lawn right!”].
I know many of you are afraid to trade FX; just like this woman, your fears outweigh your ability to act. The excuses and hurdles are high, and your comfort zone in mediocrity is like an invisible ball and chain around your neck.
Ohhhhhhhh, I’ve seen this phenomenon all my life. Commuting out of the city for 10 years every day for an hour, you get to know all the business types heading home to the burbs a little early. Every day they want to know how much I made; every day after I tell them, they tell me how much they a) hate their boss, b) hate the company they work for, c) hate their career path, and of course d) hate their life in general.
“OK, I say, “Quit your job, lease a membership, and come stand next to me in the pit and just follow me”.
“Hahahahaha, listen to this guy; yea right, my wife would first kill me, and then divorce me. You’re funny Barry, telling me to just do this. Hey guys, I can make $5K a day… Ha hahaha.
“OK, I say, “Then stop asking me how much I made and then shut the hell up and stop bitching about your life. You make your bed and then sleep in it.”
Amazingly ……. Suddenly nobody is laughing or talking anymore.
Fear is something that only exists in your head. What is fear to you is opportunity for others. Fear doesn’t exist outside your head, and has no basis in the universe.
Danger, on the other hand, exists and is real. Stand on a mountain cliff 3.000 feet above the next step, and it doesn’t make any difference how many college degrees you have, how old or young you are, whether you believe in President Goebbels “Hopey Changy” BS, or if the sun is shining or it’s cloudy, take another step forward and you will be dead in short order. You simply take the necessary actions to avoid the danger, or you suffer the consequences of ignoring it.
Following the trading algorithms will solve both fear and danger.
If brains were enough to be successful, everybody that trades would be a millionaire; how come their not?
What have I repeatedly said about the main priority of the trading algorithms? The Number 1 goal of any algorithm should be to keep you out of trouble, and after that make you money. [Sadly, most of the algorithms (trading plans) made available to the retail public have the priorities reversed] Danger of account destruction avoided.
Pure and simple; Fear is the result of not being able to trust or follow an algorithm. You defeat fear in 3 steps; 1) acquaint yourself with the algorithms and the MT4 demo account functions, 2) trade the play money exactly like you would if it was real, and 3) start your real trading with a relatively meaningless amount of money [whatever that amount is for you] that in the worst case scenario isn’t going to change your lifestyle one whit.
Who do I trust? Are you kiddin’ me? Easy.
Exactly: I Trust Me
I don’t want, nor do I ever expect, anybody to “trust me”. You got eyes and you got a brain [well, most of you]; use them. I have given you all the tools necessary for success, as well as access to me. Whether you do things yourself, or you have your funds managed, YOU are always in complete 100% control of your account, your money, and ultimately everything you want to do.
Back to the couple in question; they are going to 1) first open a demo account at Assets FX and trade EURJPY, with the “Long Term –vegas Big Bang Algorithm”, for the first quarter of 2014, 2) after that they will evaluate their success and open a real account to trade themselves with $1K, and also at that time have me manage $1K either with Assets FX or through a brokerage house at C2. Their total risk is $2K; they spend more than that on theatre tickets during the year.
The problem for them is solved; question is, can they follow directions and actually do it.
As we start 2014 trading in a few hours, for you Newbies, it’s time to get off your duff and do something.
Have a great day everyone.