Few things intrigue me in this life more than the understanding of human psychology. This was my third time reading Mark Douglas book, ‘Trading in the zone’ and I must admit, I have acquired a few more revelations that hadn’t hit me in my previous two reads, and yet, the content of the book remains the same. Interesting right? The lesson herein is that whereas the contents of the book remains unchanged, my mind has been more receptive to consuming the book for my third time, and probably my attitude towards some elements of trading, than four years ago when I read it for the first time. The mind is such a powerful tool when applied in the right space & attitude, which is exactly what this book is all about, and precisely why it remains to be one of my top three trading books. 

Let’s indulge. Shall we?

1. Resolution to Survive

Ever wondered why so many successful & learned people don’t excel in trading as they do in their areas of expertise? This is mostly because they can’t influence the market to get results, as they can manipulate the social circles & employ their networks to achieve results.

Douglas denotes that as human beings, we are wired to avoid any physical or emotional pain. This is why people pay hefty fees to lawyers to avoid jail time or consequences thereof even when they’re guilty. It’s an innate trait for human beings to try all we can to avoid pain or losses. This is not the case in trading. You can’t ever avoid losses in trading, they’re part of the business. The exact reason why most don’t make it in this business.

Taking conscious control of your emotions both when experiencing losing and Winning trades is the ultimate ‘holy grail’ to consistent results from trading. This is the toughest part of trading. Attaining this high level state of mind calls for self-mastery so that you follow the market without implicating your own ideas or expectations and outcomes. It means your job as a trader is not to prevent losses, but instead accept losses as part of the winning, and carry this attitude throughout your trading activities.

2. Accountability & Rule-based Trading system

Once you choose to receive tips or trading directions from some broker or news channel, it becomes easy to blame them as the cause of your failure, hence not taking accountability for your actions. You convince your mind that it was not your fault, which is counterintuitive & retrogressive in achieving consistency in making money from the markets.

Failure to set up rules & strictly adhere to them devoid of your personal emotions is the main reason why most traders don’t achieve consistency in the markets.

The financial market offers a gift and a curse at the same time. Gift in that it gives you all the freedom to risk and hence make money however & wherever you want. It further lures traders by offering more power to execute bigger positions than their capital levels by using leverage offered freely by brokers. 

Unfortunately, this is the very source of the curse that comes with trading. The fact that there isn’t any external body watching over your actions, or a set of rules governing your trading, is the very obscenity that keeps most people from living off trading. It’s a fact that human beings are not capable of governing themselves or coexisting by their own without a set of rules and relevant bodies to oversee their actions. This is why we have laws in governments, schools, workplaces, clubs, & in all spheres of our lives.

3. Winning Attitude/Mental Analysis

A lot of traders with high level analytical trading skills, aren’t making money because they’re easily distracted by other traders or news. They end up not trading the opportunities they clearly marked out from the markets, but instead believe in another random trader from Australia, or the latest update from Bloomberg news channel, only for their own analysis to turn out as big winners. According to Mark Douglas, successful & consistent traders are individuals with a positive attitude towards the markets, & life in general, and those that develop a high level of mental strength, which is the hardest part of successful trading. Not many people have the mental fortitude to withstand losses happening right in front of their eyes, and not react to it, but let it all play as per the trading plan on the table. We covered the topic of how to handle losses in trading in a previous blog article. This is your chance to ‘beat the market.’

4. Trader Expectations

The markets do not owe you anything. This is probably the most absolute, yet harsh a statement. In life, and in business, people work with expectations. It’s actually almost impossible to not have expectations, to not blame people if they don’t return the favor, or do their part of their bargain. Most traders step into the pitch with crazy expectations, mostly based on what they have read or heard from the internet or fraudulent ‘trading experts/gurus’, not to mention the alluring marketing pitches from forex brokers hungry for their capital. Wrong/unrealistic expectations from the markets is the reason why most beginners don’t last more than 6 months in the game, and end up Losing and labeling forex trading as a ‘scam.’ Totally ridiculous. A market with a daily total liquidity of over 6 trillion dollars. With banks and international hedge funds participating and managing billions of dollars’ worth of portfolio for their clients. Take for instance, Bridgewater Associates & Renaissance Technologies, two of the largest hedge funds in the world, with a combined AUM of over $200 Billion, just to mention a few.

5. Lack of Training & Proper Mentorship

The most absurd perception with new traders is how easy they think it is making money in the forex markets. Let’s take a second, or two, to ponder. Lawyers take up to 8 years to represent clients in courts. Economics & actuaries spend 4 years in college. Engineers endure at least 6 years to even get a junior position in a renowned firm, yet new traders think they could make a fortune, or double their small capital in a week, or a month, after watching a couple of trading videos on YouTube. Absurd right?? I must admit even I fell for this in my first days in trading. All I can say is it was TOO COSTLY! It’s even harder to make money in trading without proper training and continuous mentorship especially in your first months of trading. You’re prone to make mistakes and have no one to correct you and hand hold you through your trading career. Be true to yourself, you want to make some extra income consistently, there is a price to pay, both of your time and money. Trading the forex & stocks market is no get-rich-quick business whatsoever.

Mark Douglas notes that whatever the outcome you get from trading, you can’t blame the market for your results. The true understanding that your trading results solely reflect your own actions is the first step towards a successful career in trading.

6. Trade For Profits, Not for the Thrill

The most successful traders in the world, those that achieved consistent success for years are those that have cultivated a mental space that accommodates losing the same way as winning trades. This way, they stick to their rules & trading plan, despite the outcomes. This group of traders derive their gratification in following and trusting their own trading systems, because they have tested the rules therein, and understand the underlying dynamics of the markets. The goal is to confidently take small losses, and ride big winners, the ultimate secret of successful trading. This is how a trader makes a resolution to survive in the game, and to approach trading as a business , as opposed to a source of excitement & chemical rush that comes with breaking the rules and risking big!

7. The Traders Perspective

Predefining your risks, cut losses when trades are not working, & systematically taking profits. These are the three rules of the game.

It is one thing to do clear-cut analysis on the charts, to a level of even betting your life on it. However, there are more variables that affect the market movements that we shall never know. For instance, would you know how many traders are sitting on the sidelines waiting to buy, or sell, or would you know how many traders are thinking of exiting their trades, or add up their positions? Professional traders know they can’t ever fully predict the markets. As such, they always cover their losses, and have their total risk exposure predefined before initiating any position in the markets.

Typical retail traders are prone to ignore this mere fact, some due to greed, others due to ego, and a sizable number of them due to lack of knowledge & true understanding of how the markets function.

In conclusion, trading in the zone, according to Mark Douglas, means that your mind and the market is in sync. The zone is a space where you’re in complete harmony with the markets. You take what the markets gives you, and accept whichever outcome. Period. I must admit, there are so many more lessons and golden nuggets of wisdom from this book than I could cover in this article. This is definitely a must read for all traders out there.

Quick question. When was the last time you came across something so profound, a golden nugget of wisdom, so real that you couldn’t keep your calm? Fighting the surging urge to pick your phone and ring your best friend about it. You somehow manage to hold it together, but it keeps replaying in your mind like a beautiful melody. You live and breathe it for the next three days, or even a week.

Brevity is the soul of wit’, is a statement that has always resonated with what I do and how I approach life in general. On this particular day, I find myself pondering on it so much that I search through the streets of my mind. True to my self-inflicted nuance, I come across an even more profound ideal, a concept I stumbled upon many years back. Have you heard of ‘The Pareto Principle’? Even a more significant question is how does it relate to Forex trading, and life in general?

The pareto principle is named after an Italian Economist – Vilfredo Pareto, who noted the 80/20 connection while at the university back in 1896. It states that for many events, roughly 80 percent of the effects come from 20 percent of the causes. Pareto observed that in most occasions/events/projects, 80 percent of the output from a given situation or system is determined by 20 percent of the input. A quick example would be the analogy that 20% of employees in an institution produce 80% of the company’s results. Breathtaking, right? Occurred to me more like the case of being busy vs being productive.

There are fewer capacities in life that the Pareto Principle applies more than in Forex trading. Less is more in trading. If there was one principle or gospel that I would preach all day to every new trader, that statement would top my sermon pointers. Quoting the legendary trader, Nial Fuller – “Most Traders do not make money in the markets over the long-run for one simple reason: They trade way too much.” Needless to explain, professional traders only place trades that meet the rules in their trading plan. The same way you can’t go hitting on every beautiful girl in the party, hence you end up winning none. World’s most renowned trading legends such as Jesse Livermore and George Soros have been striking for their spectacular precision of picking a few best stocks that only match their criteria as outlined in their trading plan .

CFDs trading is a question of fewer quality trades over quantity trades. Professional traders know that there is a thin line between taking many trades and overtrading. The latter has been one of the biggest pitfalls for most beginning traders. The ultimate ‘holy grail’ of Forex/indices/stocks trading lies in the true apprehension and application of the Pareto Principle, in that less is more. It’s a game of percentages and risk to reward ratios. Numbers don’t lie. Let’s work out a practical scenario to prove this analogy.

SCENARIO ONE: Trader A takes a total of 10 trades. His rules allow him to risk only 1% of his capital per trade, with a target of 2R. Meaning he is risking 1% to make 2%.

Turns out that out of the 10 trades, he wins 4 trades, and loses 6 trades.

Means, His profits = 4 trades x 2% profits = 8%

         His losses = 6 trades x 1% loss = 6%

Here, we find out that despite experiencing more losing trades (6) than winning trades (4), Trader A is still profitable, 2% profit addition to his portfolio.

SCENARIO TWO: Trader B takes a total of 20 trades. He doesn’t have clear-cut guiding rules for his risk exposure and winning targets.

Turns out that out of the 20 trades, he wins 12 trades, and loses 8 trades.

However, he lost more in his few losing trades than he made in his many winning trades:

       Means, His profits = 12 trades x 1% profits = 12%

                  His losses = 8 trades x 2% loss = 16%

Here, we find that despite having a higher number of trades, and winning a higher percentage of his trades, Trader B still ends up with a negative 4% on his portfolio. Not to mention he encountered more costs from his broker through spread & overnight swap charges on his many trades. And the mental strain that comes with always watching and worrying about the outcomes of the many running trades. 

Not called for, not worth it.

This my friends, is a classic example of a case of quality over quantity when it comes to trading. The above two scenarios therefore approves of the practicability of the Pareto Principle in Forex trading. If Vilfredo Pareto is ever proven wrong on his principle in all other spheres of life, then he will have won it with Forex trading. This is what it takes to be a profitable trader

It’s at this point that we call it a day with today’s hangout. ‘Brevity is the soul of wit’, remember? 🙂 

In the legal profession, lawyers and advocates are always guided by one major ethical code throughout their practice, whether in the courts or their outdoor legal engagements; they must never disclose or discuss details shared to them by their clients in confidence with outside parties. This practice is commonly referred to as ‘The Rule of Confidentiality.’ With this code of practice, any details shared by a lawyer in a court of law that was disclosed to them in confidence by their clients is dismissible and can be rendered futile by the presiding judge/advocate. This rule holds grounds throughout their practice unless the courts or the Law otherwise demands or provides grounds strong enough to necessitate the lawyer/advocate to disclose such confidential information.

That’s too much legal talk for a Forex & CFD’s trading article, right? All this will make total sense in a moment. Let’s call it ‘the preempting before the sentence.’

The rule of information confidentiality applies equally for the esteemed medical profession. No doctor or medical practitioner is allowed to discuss their patients’ diagnosis and treatment status with their colleagues or spouses. The ‘Confidentiality Rule’ holds grounds and guides their professional practice, the same way as the legal profession.It is with this resonance that as professional Forex and CFD’s traders, we must as well uphold this healthy code of ethical practice when going about our trading activities, and to stay truthful to the Rule of Confidentiality. Never at any point and time should a trader share or make public their open/running trades to their friends or to the public. The fact that isn’t an oversight body to keep us in-check in our adherence to this rule must be our very reason to develop self-engraved discipline if we are to achieve meaningful and long term trading success. There are very few professions, not even the legal nor the medical profession, where the rule of confidentiality has ever been so imperative to the welfare and value-based performance than in the trading business. The ability to develop strong self-restraint and discipline among traders cannot be overstated. This principle falls on the significance of upholding the right trading psychology as a strategic ingredient in achieving long term successful trading.

The main reasoning behind this rule is that once a trader makes their trades known to their peers or to the public, or any other party for that matter, (even worse to their spouses) is that it invites the emotional burden of ego and pride, driven by the desire ‘to be right’. Human beings possess an inborn urge to be right. Over the years, society has condemned failure and losses as if they define your ultimate destiny. On the contrary, it is the challenges, failures, and losses we encounter in life that grow our resilience and grit to break free and make a mark in achieving success. As a rule of the thumb, anyone who doesn’t experience failure or losses, whether in trading or in life, is either not trying at all or not doing enough, and is therefore self-limiting.

At Fourthstreet Consultants, we don’t discuss or publicize our live trades. This only causes one to grow the ‘need’ to convince the other party of how ‘right’ they were. Consequently, this mounts their ego and clouds their judgment, thereby distorting their actions, which ultimately leads to costly mistakes. Mistakes that could easily be avoided by keeping calm, and strictly following your trading plan to guide all your actions in the markets.

It’s okay to share trading ideas and thoughts as that shows one’s command and understanding of their trading business, but no trader should ever make their personal open trades public, unless one is doing it purely for educational purposes only. 

For instance, Module (III) of our comprehensive Forex course covers a full three months of live trading. We took our time to record every trade we took live on the market charts for our trainees/traders, recording both the losing and the winning trades. We adopted this approach because there’s no better way of teaching than illustrating live. Every trainer must demonstrate their craft or skills live to their students. Otherwise how can you teach that which you can’t practice? The recorded live trading sessions, together with the test of the Forex trading course educational content is only accessible to our members who sign up for our Online course.

The goal was to illustrate and teach our traders that losses are part of the trading business, the same way you cannot avoid losses in life or in any other ‘real’ business. You can only control and keep the losses small, while locking in big profitable trades. At the end of the three months of our live trading as is covered in our Online Forex course, (which is essentially a quarter of a year) we made a great deal of net profit, even with the few losses we encountered factored in.

Lesson of the day; whether you’re a novice or an experienced trader, strive to develop the discipline of ‘not disclosing your open trades,’ keep them private. In case you get the urge to talk about them, it’s advised you write them down in your trading journal to keep track of your progress and performance. Otherwise they will dent your ego and confidence in your trading system, especially if your trades end up as losers.

Joshua Matumo,

Founder, Fourthstreet Consultants.

I have heard that nothing gives a writer so much pleasure than when his works have been quoted and applied by the readers. On this particular evening, I find myself in a deep conversation with an old friend.

‘You should write a book’ she exclaimed, commenting about my last article; Three reasons why you must learn an online skill

I cleverly rubbed that part off, because a book and an article are two different animals. The conversation turned to forex trading, and said that she would love to start online Forex trading as a side ‘hustle’. 

“Not a hustle, it’s Forex trading as a side business”, I quickly interject. Because I personally don’t relate too well with the term ‘hustle’, same way I don’t like being ‘busy’. (Story for another day). I promised her that I would write more, but not a book yet, for her and other people who want to get into forex trading, but it would be up to them to redefine what they need from it. But I also told her that there’s simply no excuse, no fear too insurmountable, for not acting on it if it is what she wants to do, regardless of her schedule.

So this here is a piece for you, Freya, and for everyone who, like her, have busy daily schedules, whether in employment or entrepreneurship, and your only reason for not starting Forex trading as a side business is that you feel there isn’t enough time in your days yet.

The common analogy that most people with a day job, or busy daily schedules hold is one of a lack of time to trade, and to sit in front of a computer watching markets all day. Most people think that they have to watch the markets from their computers all day to be traders, which is simply not true. You don’t have to sit in front of a computer all day to trade and make returns. I, for instance, don’t stay fixated on the screens the whole day. As a matter of fact, it is unhealthy for trading, and has negative effects on the trading results, as I will explain later on. I am a trader, a consultant, and an entrepreneur, I have busy working schedules. Today, in this article, I will share with you my personal approach to trading, a significant strategy that allows me to maximize from trading the forex markets, and at the same time freeing up my day to take care of other business affairs. It’s called the END OF DAY TRADING. You get to keep your day job, run your daily business errands, and maximize from trading the forex markets. Working smart, as opposed to ‘being busy.’ Let’s get into it already, shall we?

Normally, the Forex markets have various timeframes, which gives traders the freedom to choose particular time-frames that fit the nature of their schedules and trading plan. Day traders may choose to analyze the charts and look for price action trading patterns using the 30 minutes and the hourly time-frame. In the same manner, The practice of end of day trading requires a trader to check through the various pairs on their watch list, i.e. the currency pairs that they choose to trade, and analyze the forex charts for clearly marked out price action patterns that may be available to trade using the ‘Daily Time frame’. What this means is that for End of Day traders like myself, we only open our laptops to look out for clearly marked out price action trading opportunities at the close of the day, i.e. around 11pm, just before jumping into the next day.

With this trading approach, I only need about 30 minutes to screen through my currency pairs, (because I already know what I am looking for). In case I find nice setups that offer me a good Risk to Reward ratio, I then set up my stop loss and take profits targets as guided by my trading plan. Once all parameters are set, I execute the trade(s) and close up my laptop for the markets to do the work.

I know it sounds simple, but ideally, that’s how it should be. That’s how most of life’s missions should be, if only we checked our attitude and committed to learning instead of trying to cheat the process and be heroes. Anyone out there trying to complicate trading by clustering their charts, timeframes, and complicated trading approaches is only prolonging their journey to attaining meaningful success and consistency in making money from the markets. For new traders or anyone reading this piece and you’re totally green to trading, worry not for our online comprehensive course that comes with one on one consultations/mentorship polishes you on all the aforementioned pillars of trading, ranging from Price action patterns/signals/ market analysis, risk management, trades execution and management, amongst other integral topics and principles of successful Forex trading. For new traders, I covered what it takes to be a profitable trader consistently and for the long-term in a recent article that we published on our blog. You can catch up on it right here.

All I am left to do is to open my laptop/android phone the following day to check on the progress of my trades that I set up the previous night. At this point, I am not looking for other trading opportunities/setups, which means 5 minutes or less are enough to check that all is running well with my trades. Timewise, I am totally free to run other errands, and in the case of those with day jobs, your work is already done as far as trading is concerned. You would only need to spend about 10 minutes or less, for a maximum of twice a day to check on the progress of your trades. That is if your price targets are close to being hit, or have already been hit, which would mean that you have banked some profits for the day. 

Other times, a trade might take a little longer to hit your price targets, maybe an additional day or two, which is fine as long as the trade is going in your direction. This is the real definition of professional trading, i.e. approaching trading as a business . Our sole goal as traders, which is how we approach trading, and our training our traders at Fourthstreet Consultants, is to make money, as opposed to ‘making a lot of trades.’ Big difference.

Interestingly, unlike what most new traders think that day trading and executing too many trades in a day equals profitable trading, this particular approach of trading has all the benefits, and has been proven to greatly improve trading results and simplify the entire trading process. I have marked out three ways as to how End of day trading using end of day price action trading affirmations/patterns stands out as the best approach to trading & will ultimately improve your results, even for existing traders;

1. Eliminates Overtrading

One of the biggest predicament for both new and experienced traders is overtrading, and the ability to overcome it thereof. The urge to constantly check through the markets arouses the excitement and the greed to open more illogical trades, sometimes due to the mere sense of boredom, resulting in overtrading. Money in Forex trading is made by sitting, not by trading. Take a second to ponder on that point. Contrary to the common economic concept of more input equals more output that applies in other businesses, less is more in trading.

 A trader that picks only four of the best price action trades in a month with a proper Risk to reward ratio (say 1:3), for instance, stands to make a great deal of profits compared to a trader who executes 20 random trades (scalping) out of fear and greed, that in most cases have very low or even negative risk to reward ratio. This is the logic behind practicing end of day trading. It helps traders to avoid falling into the temptation of overtrading by constantly checking through open market charts. Once you set up your trades at the end of the day, you forget them and let the market do the hard work. You avoid overtrading which is one of the main downfalls for most traders.

2. Proper Trading Psychology

You have probably heard that adopting the right trading psychology contributes to more than 40% of one’s trading success. From the word go, you’ve got to have the right expectations about the markets. For instance, understand that losses are part of the business, the same way no business out there doesn’t encounter its streams of losses from time to time. Your job as a trader, therefore, is to manage losses and keep them small, as opposed to trying to avoid them. By adopting the End of Day trading approach, you only get to set up your trades at the close of day, and leave them to work out. Consequently, you are able to detach yourself, and basically your emotions from your running trades. It is an easier way to manage your emotions and grow a strong trading psychology that enriches your trading skills and results thereof. We call it the ‘set and forget’ approach, whereby you follow your trading plan in choosing the best trades, and once they are executed, you exit the charts and let the market do the hard work. You only check on how your trades are performing at long intervals of say 5 hours or so. Easy, calm, and collected.

3. Keep Your Day Job/ More free-time

It goes without saying that adopting end of day trading allows you to comfortably keep your day job, while adding another source of revenue in your bucket. For those trading full time, they are able to free their day time for other engagements such as doing market research, back-testing more trading strategies, engaging in other business ventures, and spending time with family. This is how I am able to trade and attend to other calls of business and varied life commitments. With this incitement, No one has any excuse whatsoever for not learning an online skill such as trading the markets, to create an additional source of revenue, especially in the current internet world of information overflow. Convenience is the real value in the current day, and the future. This is the very awakening that inspired us to put forth a comprehensive Forex course that is online-based, making it available for everyone on our website for easier and flexible accessibility. Basically, you have no excuse for a lack of growth, only a call of action and commitment awaits you. Good luck!

It’s been a while since we hanged out for coffee on these streets. Today you’ll experience what we term as ‘The FSC Experience’ (The Fourthstreet Consultants Experience). An exclusive one-on-one consultation session with you. This is what we do every day; we listen, we advise, we train, and mentor new and experienced traders into profitable and consistent independent traders. I thought to extend today’s consultation session to you, right at your convenience and comfort. I look forward to enlightening you, and there’s no better way of articulating that bargain than by sharing one of the most thrilling & revealing sessions that I held recently with a client, a gentleman who graced our offices. His name is Patrick (Not his real name).

We have held numerous consultation sessions at our offices, and others on phone and via skype with potential clients. But Patrick’s session was different. You know Catholics have a session in their worship services they call the ‘Sacrament of Penance’. The confession with a priest. I am not about to be a priest, nor am I Catholic, but with Patrick, I must admit it felt gratifying to listen and offer my professional counsel to a man really hungry and in need of the truth and growth.

I trust we’re well acquainted by now. That was the talk before Thee Talk. Let’s indulge. This article is an attempt to summarize my journey into the world of trading, while at the same time edifying you on factual guidance on what it takes to trade profitably and consistently for the long term.

It’s 2.30 PM, a gentleman walks in our offices, bold and well-composed. It’s one of those hot afternoons at the office, and interestingly, everyone is busy attending to their own business, stuck on their screens, a deafening silence! I am reading an article by Peter Thiel, the topic “Life is Short. That’s the point.” I propose you look him up, check his works. He’s one of the most brilliant thinkers and writers of our times. It’ll be worth more than a dime for your time!

After the salutations, Patrick is served coffee and we start chatting. From the beginning, he sounded so enthusiastic about venturing into the world of Forex trading. That got me hooked to the conversation. I quickly gather that he’s not new to trading. But he was oblivious of consistent profitable trading, and that’s what led him to knock our doors. 

“How and where did you learn about forex trading?” I posed the question to understand his locus. 

He is open and doesn’t shy from telling the truth about his journey into the world of trading. He explains that he has watched a number of YouTube videos on different forex ‘strategies’, including scalping, fundamental trading, and a few technical setups. He further explains that he had a chance to attend a few trading training seminars organized by Forex brokerage companies, where they were taught on how to place trades on MT4 using the short timeframes of 15mins and 30 mins. Some of the trainers had actually promised to be sending trading signals to guide them initiate trades and Wolla!! 

There was so much light and glamour to the party that he hurriedly signed up for a live account with a forex broker, funded it with $500 of his hard-earned money. Ready to set off on his journey to ‘turn his life around.’ His exact words, not mine.

I couldn’t help but only imagine the mental ruin and the emotional weight of the person in front of me. Not to mention the financial degradation he had been through for the past four months of his journey into trading. I could relate. It took me almost a year to land on a reputable and credible trading platform to learn from. Of course, I paid expensively for my mistakes & assumptions. However, 12 years later, I owe my success to that first move to go for reputable trading education. One thing that new traders fail to acknowledge is that the cost of not subscribing or enrolling for a trading course is way greater than the price you pay for that course/education. Why would you put your time, energy, and resources on the line for a ‘war’ that’s beyond your prowess? 

So guys, today I am going to be blatantly honest with you. There’s No single Forex brokerage company in the world that will ever serve you coffee, and shed light on facts about what it really takes for you to achieve consistent profitability in trading. Sounds harsh, right? The sole goal of Forex brokers is to get as many clients signing up for trading accounts as possible, and for them to fund those accounts with as much as they can, as quickly as it calls for. Brokers don’t care much if you’re losing or winning. Why should they care anyway when they are getting their profits from spreads and margins, regardless of whether your trades end up losing or winning?? The more the trades you make in a day, or an hour for that matter, the merrier for them. They all about volume, quantity over quality. This is the reason why most brokers preach the gospel of trading shorter timeframes of 5 minutes and 15 minutes. Anything to hook you into high-frequency trading. A great deal of business for the broker, but a painful journey resulting in overtrading, emotional instability, and financial losses, especially for newbie traders such as Patrick. It’s therefore upon you, as a new trader, to look out for what’s best for you.

Essentially, any credible and successful trader will outrightly tell you that trading off any timeframe lower than 4 hours or at the very least, 1 hour is guaranteed to ruin not only your capital but also your mental and emotional balance. I have been there, I have done that, and it simply doesn’t work! And even if it worked for a few individuals, why would you spend your life getting adrenaline rush and sweating your but all day, when you could place your trades, set up your limits to control your risk and target your profits, walk away from the screen, attend to other affairs in life such as family and other ventures? More consistent profits, more free time, no mental ruin/adrenaline rush. It’s an absolute win.

This is the gospel that your Forex broker and most Forex academies/trainers won’t tell you. Any Forex trainer or course out there that cares about your growth as a trader must be open with you from the word go. Trading can be relatively easy or hard, depending on where you seek education and mentorship, and your commitment to follow the various rules of the game, even when they are seemingly ‘boring’. In fact, profitable Forex/Indices/stocks trading is boring. Jesse Livermore, one of the greatest traders of all times, said it right, “Money is made by sitting, not trading.” What he meant is that the sole job of a trader is to wait patiently for the best setups, and go big with them, as opposed to trying to chase or force trades on the markets every other minute.

Having said that, I have nothing against Forex brokers, in fact, we all need them. They are our bridge to access the markets. I am only looking out for the masses out there, such as Patrick, who are enthusiastic and looking forward to kick start their careers in forex trading, so that they don’t make the same mistakes I made during my first days into trading.

I am about to cover and expound on my full consultation with Patrick, that is how I got to respond to his trading distresses and inquiries in an elaborate, but precise manner. 

I’ll put forth the questions as I posed them to him, then I’ll answer to them coherently. You’re welcome to seep some more of your coffee☺

Question One: How and where did you learn about forex trading?

Whereas attending trading seminars and workshops is a great way to expand your knowledge about trading, it would be a big joke to assume that that would be all you needed to get started on trading and to be a pro trader. Getting a reputable training education is mandatory for you to learn any new skill. Attaching yourself to a mentor in your line of career shortens your learning curve and grows you as a person. This is how you win, not only in Forex trading but in attaining any significant skill in life.

This is also true for watching YouTube videos or reading some blog articles. Not even our blog page at Fourthstreet Consultants is adequate to set off on your path to trading and making consistent returns. Yes, it’s indeed a great place to gather trading incites and knowledge about the various disciplines of the business. But until you immerse yourself into a fully developed, reputable, and tested trading course, that comes with dedicated mentorship, then you’re quite far from the real pie.

Let’s be real with life. There’s no shortcut to success. Pilots learn for 5 years before they can get their badges. Lawyers spend at least 7 years to learn and practice law. Boxers and athletes practice for at least 5 years before reaching their career peaks. What about traders? They want to learn everything about trading today and start making handsome returns tomorrow. This is the biggest irony with our industry. Shortly after, most newbies either give up or cry foul of how much trading is ‘gambling’. It might not necessarily take you 5 years to learn and practice profitable trading, but failing to invest in trading education is guaranteed to cost you more in the long-term.

Question two: What Type of a Trader Are You?

Any trader must answer this question outright without blinking or collecting words. Are you a technical trader? Or a fundamental trader? If that’s the case, are you a day trader, a swing trader, or a position trader?

Of equal importance is, do you have a trading plan that strictly guides all your actions on the markets? I put together a guide on how to develop a trading plan here.

If you can’t satisfactorily answer these questions, you aren’t yet started as a trader, you only possess ‘ideas’ about trading, and you’re not equipped with the required trading skillsets to engage in live trading activities.

Question Three: What are your expectations as you venture into the business of Forex trading?

The internet is awash with too much noise, and people selling lies and false lifestyle to woe you into their fishing nets. Most beginners go through a couple of YouTube videos, and just like that, they imagine themselves making the millions overnight from trading. Rude shock! There’s no quick money in Forex trading. No legitimate business model makes profits all the time. Even the biggest companies of our time suffer small losses, and other times, big losses. Varied performance with different seasons is a norm for any business. Different company stocks, for instance, appreciate during certain quarters of the year and dip in other months. Forex trading is no different. With this understanding, your job as a trader is not to avoid losses, but to manage losses by keeping them small, while maximizing on your profits. 

Our course not only guides you on how to manage your losses but illustrates in expounded videos how to set up your trades on a live account, one funded with real money. We took it upon ourselves to fund a live account with real money $$, and recorded all our trading activities in real-time, for three continuous months. You will hardly get this value from most trading courses out of them. Is your trading coach/trainer daring enough to trade live and record as they practice what they teach you with their money in real-time?

This is all that is covered in MODULE THREE of our comprehensive online course.

Question Four: Are you always excited and attached to your running/active trades?

Anytime you find yourself excited about your entries, getting the adrenaline rush when your trades are running, then everything you’re doing is wrong. In most cases, you’ll have risked a little too much, or got in late into the trade. Essentially, anything you do on the markets without strictly adhering to a documented Trading plan is wrong. As a normal human being, you’re prone to be fearful and/or greedy, which consequently causes you to break your own rules. 

Consistent and profitable trading is boring. This is because you follow the same set of rules and steps in all your trades. There’s no excitement or anxiety because every action is guided by the trading plan. This is how we train our traders at Fourthstreet Consultants. If you’re to approach Forex trading as a business, you’ve got to learn the rules of the game and detach trading from your emotions. We simply approach every trade with a mindset of Risk Vs. Reward. The discipline to only place trades with low risk and high rewards is not a matter of contention. You can only learn these disciplines through practicing and proper mentorship from experienced traders. So you want to be a profitable trader? Now you know what to do, right? As for Patrick, he is already on his new journey into learning and earning consistently with us, trading off the biggest financial markets in the world where more than 5.3 trillion dollars are exchanged every day.

This is it for our coffee date. Please note, you’re the one paying next time.

OH, before it slips off my mind, just in case you were still wondering whether to learn Forex trading or pick up an online skill that would add up that extra income for you, this article here is specially the Wake-up call for you. Good luck!

It’s been a while since I put my pen to paper. It’s 2.17 am, I sit at my desk at home, my eyes fixated on my pen. We have this bond, one that is bound by honor and service. And tonight, it’s my turn to pay for the bargain. That sounds like too much of an affair between me and my pen right? Well, only we know. Let’s engage. Let’s indulge today’s topic, Shall we?  

I love thinking differently. I question most, if not all societal norms. In trading they say, ‘the path of the masses often leads to misery.’ Let’s take the unexplored route. The world has already preached too much about success and achieving one’s goals, which is fine, essentially. But today I invite you to take a ‘not so much explored path,’ that of facing and managing losses in life and in trading. So let’s take a short trip to my mind.

Until you’re bold enough to face your fears of failure, and the manifestation of failure in its realest form, you’ll never be ready for meaningful success in life. Even if success comes early, you might not possess the resilience to see it fly high without getting lost in the hardships encountered therein. This is the quality of possessing the right mindset and discipline. It is the same reason why most athletes and lottery players win millions of dollars only to end up broke in a few years.

Beware to cultivate a space that allows for acceptance and moving on from your losses, both in life and in trading, but not conforming and settling with what’s gone. See the difference? Quit complaining about the things you have no control over. In trading especially, you cannot control the price movements, or the trading volumes/volatility. It adds no value to being too attached to your trades, or trying to ‘predict’ the next trend or price rejection. Our job as traders is to master how patterns form (price action), and to trade them off when they do appear on the charts; but never to trade in their anticipation. One thing that is ultimately in your power is your risk exposure. Every day you get to choose how much you risk on every trade. The masterly of proper risk management is the ultimate power of successful traders. This of course makes sense for those who approach, or looking to approach Forex as a business in all its disciplines.

Most often than not, we don’t give failure and loss so much thought when we set out for a project, career, business or the onset of a new relationship. In most cases, we presume for the best outcome, (total optimism) and fend out the thoughts of any chance of failure and losses whenever they creep into our minds. Don’t get me wrong, it’s unhealthy to entertain the idea of failure when pursuing our life missions, whether it’s in business or relationships. This ideal of course presumes that you took time to evaluate your goals and compatibility. But it’s a different sphere of mental strength to be aware of its possibility, and do everything in your ability to improve yourself and to minimize the chances of failure and losses actually occurring. This is how we define intelligence.

Unfortunately for traders, losses are PART OF OUR DAILY BUSINESS. Losses in trading are our ‘cost of doing business.’ Usually, this is the toughest ideal that most people venturing into the world of trading don’t recognize, accept, and work on their management rather than avoidance. Not so different with life and business, right?  Additionally, it is the very reason why most people don’t stick around to make consistent returns in trading, and criticize how much trading is similar to ‘gambling.’ 

The biggest hedge funds of the world today and the greatest trading legends encounter losses in trading, the same way with any business out there. They don’t run on profits every other week. Paul Tudor Jones, founder of Tudor Investments Corporation, who also adds as one of the world’s greatest traders of our times says it right, “At the end of the day, the most important thing is how good are you at risk control.” What sets him and other successful traders apart is their ability to recognize and the accept losses as an integral part of their trading careers. This is how they have endeavored to reach the peak of their game. Most of the mastery of learning and trading the markets successfully has a lot to do with cultivating the right psychology and expectations.


Therefore, as traders we must accept and channel our energy and focus towards ‘MANAGING LOSSES’ as opposed to ‘AVOIDING LOSSES’ to ensure we keep our losses minimal, and our profits optimal. This is our only chance of achieving a sustainable career out of trading. The best part is that there are parameters available for traders to manage and limit their losses. What’s more exciting is that you don’t need to stay on your screens all day monitoring and ‘controlling’ your losses, everything is set up for you to input the level and the little amount of capital that you are willing to risk in every trade, and leave everything to the markets to work, i.e. after doing your due diligence and analysis. As you walk away after setting up your trades, it’s usually clear on your mind exactly how much dollars you stand to lose should your trade go against your analysis/direction, and how much you stand to gain if it’s a win. In any case, the market does what it wants, and no one trader in the world can control its actions. We call it ‘over-the-counter’ business transactions.

Beware of anyone out there who purports that they don’t make any losses, that their language is that of ‘enormous profits’ as a total scam that you should keep off.

At Fourthstreet Consultants, we are driven by a common approach as we continuously train and mentor traders to achieve consistent returns by trading their own capital, as others add to their resume in securing trading and Financial market consultants job positions in the fast-growing money market industry.


Our Forex Course further takes you through live recorded trading sessions whereby you experience first-hand how to take losses trading real money on live markets. At the end of the day, with all trades and all small losses factored in, we make considerable profits, which is the nature and essence of any legitimate business. Everything is well laid out and demonstrated for you throughout the four Modules of the course. From well-articulated notes that have filtered the ‘noise’ from the internet, to trading videos with rich content demonstrating the various trading strategies, and how to apply them on live markets. Those looking to add another stream of income can sign up for our Trading Course Here to learn and earn from trading the Forex markets.

As I wind up, let us all strive to be people of value. We live in a society that is ‘result-oriented’. It cares less about your journey, or your struggles and failures along the way, but only for the end results. Embrace your own journey, pat yourself at the back with a ‘well done’ for those small achievements along the way because in most cases, No one will.

A. C. Bension said it right, “The Worst Sorrows in Life are not in its Losses and Misfortunes, but its Fears.”

You are not financially stable until you have at least two to three streams of revenue. Let that sink for a minute. Any successful person will ultimately tell you that employment is a great way to earn our daily bread, but no one truly gets wealthy by relying solely on their monthly salaries or one source of income. There’s also a significant element of diversification of risks attached to this economic sense. 

Fortunately, it has never been easier to start an online business than today, where everyone has access to the internet, not to mention an influx of online information that is affordable and readily available. Let me rephrase that whole part. The Future of Education is already here; it’s called ‘The Internet.’ Whatever you want to learn is right there. From blogs, to podcasts, online courses, you name it! The only barrier is discipline. With a conscious search, you can easily access credible information and online courses that are tailored to suit your need(s).

It is said that a life without reflection is a life half-lived. As we go about life, we always have to stop once in a while, look around, evaluate our actions, and pose questions to ourselves. It is in this light that I invite you to take a trip with me to my mind. Today we talk about one of the most significant topics that most people are afraid to address. I will call it as it is, straight and direct with you. I will challenge you, and leave you re-evaluating your course of life by the end of this article, or at least it’s what I aim for. To replenish your reasoning and purpose in life. Let it keep you awake for the next couple of days, weeks, for you to step up and be a person of more value. Why would anyone settle and stay average anyways, barely ‘existing’, when there’s so many opportunities for growth, that would accord us high standards of life, and that of our posterity.

Quick question; How often do you call yourself to a meeting? To literally take yourself out for coffee, evaluate your progress, tell off your retrogressive habits/addictions, and pat yourself at the back for your successes or strides in life? Anything that’s not serving your goals and growth in life adds up to a groupie I call ‘demons’ that are responsible for keeping status quo in your life, or worse off, lowering your value socially and economically. It could be bad habits, toxic people, slacking in your comfort zone, lacking the self-drive to take action and get things done, not to mention the mother of them all, the ‘demon of procrastination.’

Still wondering why you must learn an online skill and start an online business?

Let’s ponder on the following soliloquies that I gathered to awaken our minds:

There’s a new order happening in life today, a major disruption in how we do business and how we go about our daily lives, ‘the digital disruption.’ It is said that about 40% of the jobs today will be scrapped by the advent of technology in the next five years or less. We have already witnessed companies systemize their operations thereby laying off their staff to cut on costs. As such, do you possess varied skills to cushion yourself should the dreaded disruption happen in your line of career/business? 

How many streams of income do you have currently apart from your job or business?

What more can you do with what you have?

Are you easily replaceable in your current job or career setting? Do you understand the dynamics of your career as to acknowledge the high number of overqualified people looking every day to replace you should you slack or underperform? 

Before you mark me out as a pessimist who’s here to wish misfortunes in your life, please take a minute to think through it all. I took it upon myself to challenge the status quo. This is a sensitive topic that most of your normal ‘friends’ and colleagues are afraid to discuss openly, leave alone to bring up. Whereas we can’t fight a revolution whose time has come, we can ‘be intentional’ about equipping ourselves with some valuable online skills that if well mastered, can turn out to be our greatest assets and sources of livelihood. There is never a downside in learning a new skill. No time or resources is ever wasted in learning a new skill, regardless of whether you apply it right away or later in your life. Attaining such knowledge is in itself a valuable asset that no one can rob you off, no matter the downturns of life.

Learning to trade online Forex and CFD’s, for instance, would be a great place to begin. A lot of varied information and views have been said about this profitable venture. Those who begin by acknowledging that they need proper education and mentorship to be professional traders soon reap from endless profits available in the forex markets every day. I must caution and insist, it is not a get-rich-quick business, as many would assume. One has got to adopt the mentality of approaching Forex as a business right from DAY ONE. That way you learn and keep your mind engrossed on how the business actually works.

Unfortunately, those that uphold this misplaced assumption are soon proven wrong, and they never live long enough to cross on the other side of making consistent profits in the long term from trading the markets. At Fourthstreet Consultants, we offer a comprehensive online course that allows you the freedom to learn from anywhere, and better still, access unlimited mentorship from our consultants both physically at our offices, and on phone or skype. Since the launch of our online course about two years ago, we have trained over one hundred new traders, varying from the working class, to students, to business people across all ages. Forex trading is an art that you learn and practice, and is for the take for anyone out there regardless of the educational background. Some of our trained traders have turned out to be corporate traders in financial institutions, while others choose to trade on their own and simply earn a living at the comfort of their homes.

Whereas all this sounds like a great deal of making a living, and it indeed is one of the most rewarding online skills anyone can invest and learn, it comes with a lot of hard work, focus, and the discipline to adhere strictly to the concepts and rules of the business. The most challenging part is usually mastering how to control one’s fear and greed, and of course learn profitable trading strategies while managing the risk exposure. No one should ever purport that one can learn trading the markets without proper education and mentorship from experienced traders, and ‘mint’ money overnight, or get-rich-quick from trading the markets. As Fourthstreet Consultants, we pride ourselves as the first Online Forex educators to be certified by the National Industrial Training Authority (NITA), which is the official government licensing body for industry-oriented courses and trainers. This certification allows us to offer certificates at the completion of the course that builds on your portfolio.

In a world where there’s too much-clustered information with all the ‘noise’ and unprecedented motives online, our course is professionally packaged and tailored to equip you with exactly what you need to get you right on track. With an experience of over ten years, our team of consultants understands your needs, and how to empower you through the learning curve until you can trade independently and profitably. Those with a keen eye for this exciting venture can begin here.

Other valuable online skills that one can partake apart from Trading the Forex & Indices include graphic design, coding, content writing, data analytics, transcription services, amongst others. Nowadays one can learn literally anything online. Even rocket science! At the end of the day, make sure to learn at least one or two online skills that would give you the most value, and earn a living from them. 

Here’s the best part. If you live long enough to practice and master your online skill, you’ll have gathered enough experience and knowledge to create an online course, to teach and empower others, just like we do right here at Fourthstreet Consultants, thereby creating a timeless additional source of income for you. It’s a win-win for you, Right??

As we wind up, let’s take a moment to review some of the main benefits/reasons why learning a money-making online skill is a MUST for you:

  1. Stability & Control Over your own life
    No one wants to hear this, but it is a fact that you have limited control over your life when your income is tied to a process you don’t control. Businesses suffer losses and eventually close, companies merge, and others get bought out. There’s no better way to be in control of your financial freedom than to learn online skills and start an online business where you’re not affected by any of the aforementioned factors. 
  2. Freedom
    Imagine living a life where you have no meetings, not bound to work from one place. All you need is your laptop and access to the internet and you’re good to go. You set your schedules for work and holidays. You don’t have to spend hours on traffic and beat crazy work deadlines.

    Your family gets the most of your time. What’s better than taking your daughter out for swimming on a Tuesday afternoon, just because you can! You simply own time. You’re your own boss.
  3. High Scalability
    The potential of the income that you can generate from an online business is simply unmatched. For instance, successful forex traders get to compound on your returns, as well as set up an investment fund as long as you can prove your skills and worth to potential investors. And better still, your income will not be a function of your time. You still get to follow your schedule and discipline of trading, but now with a bigger capital margin.

    If need be, and as you grow in your career, you may choose to systemize your trading so that your money works for you as you sleep.

In the words of Nelson Mandela – “There’s no Passion to be Found Playing small, and settling for a life that’s less than the one you’re capable of living.”

You got a cup of coffee set up on your table for today’s hangout? Maybe a bite to it? I’m doing mine without a bite. Because coffee is best taken without an accompaniment, in solitude, or at least that’s my way. But you’re right, we are not here today to talk about coffee rules, but to cover one of the most imperative aspects of any trader approaching Forex as a business.

A trading plan is the ‘business plan’ for us, traders. The most cognizant definition of a trading plan is ‘a well written guide that is prepared when the market is closed to inform your actions when the market is open.’ That kicks the beginning of the real talk! Any trader without a properly documented trading plan that guides all their trading actions when the market is open is doomed to fail. It is the surest tool that keeps us disciplined while trading the forex markets. We dwell in a business where we are constantly influenced by greed and fear, both emotions that are hard to battle without strict discipline. Any professional out there will tell you outrightly that without adhering to a properly laid down business plan and rules, you have low chances of survival in business. Unfortunately or fortunately for us traders, we can’t grow, leave alone survive, without following one.

Having a business plan is one thing, being informed of the right content and rules therein is another. And this will be our focus today. Now you’re welcome to serve your second cup of coffee.

1. Methodology

So what exactly is your methodology? This is the question I always pose to any new traders I meet out there, and you are not escaping it today. In case you ever meet anyone purporting to be a forex/stocks trader, please do the job for me, look straight into their eyes and shoot, ‘what exactly is your methodology? If they stutter or fumble with words, please be advised. Enough of my counseling! 

The first content of your trading plan methodology is to lay down the type of trading system/analysis upon which you base your trading decisions. Is it technical/price action trading (reading the chart patterns)? Or Fundamental trading (trading mainly based on economic-news events)? The latter is not an option for me, and for us at Fourthstreet Consultants. We trade purely based on price action, which is by studying and analyzing naked charts. This is because after all is said and done, everything about the forex/stocks market, including news events is discounted on the chart price movements. Price action is based on the fact that history repeats itself. Some chart patterns that have happened before, could be five weeks back, two years ago, or ten years back, will happen again, and again. Therefore, it is upon us to learn and master these unique chart patterns and trade them to our advantage. At least that is how I am able to foot my coffee bills for our hangouts here. That said, your trading plan must explain your methodology in detail. For price action traders like us, it should document your approach to the markets based on the following:

  1. Trend following
  2. Counter trend trading 
  3. Range bound trading  
  4. Breakouts 
  5. Candlestick formations

This list doesn’t end there, but it covers the main price action methodologies.

The next aspect that your trading plan must contain as far as methodology is concerned is the specific instruments/pairs that you will be analyzing and trading. This helps you follow up and grasp the patterns of the price movements of the instruments over the long run, which is paramount for the growth of your trading skills.

Listing the timeframes that you plan to be applying for your trading is also an integral part of your methodology. Will you analyze prices charts based on the 1 hour, 4hours, daily, weekly, or monthly time frame? Our Comprehensive Forex course equips you with a strategy we call ‘the top down approach,’ which is tailored to help you make informed trading decisions on the shorter time frame, that are aligned with the long term trend. Again, you’re welcome to join us here for this and more trading mentorship.

Lastly, your methodology should define your entry and exit guides. This is where stop losses and take profits come into play. The forex market platforms offer you with parameters to control your losses as well as set targets for profits without being necessarily online or logged in your trading account. You analyze, set the targets, and go about your other biashara (Swahili word for business).

2. RISK MANAGEMENT

Risk management is the backbone of forex trading. It is the only aspect that ensures your survival in the business of forex/stock/indices trading. It is only by managing your risk exposure that guarantees us of catching the next big move. I covered this and more extensively in an earlier article titled Forex trading as a business, you can catch up with it here when you have some time.

Your business plan must define your total risk based on your trading capital. It should expound the specific percentage of capital that you should risk per trade, and as such, the maximum number of trades you can have open at any one moment. As a general rule, you shouldn’t risk more than 1% of your capital per trade, and a total of 5% of your total capital in all your open trades. These rules are to be followed to the letter to achieve consistent returns in the long run. Our forex course expounds on this topic in videos, and goes further to show sample trades and how to employ the right risk management on a live forex account.

Additionally, your trading plan must inform how to avoid trading correlated instruments. This helps to limit risk exposure. By diversifying your portfolio, you stand to outlive losses and achieve success in your trading results.

At this point, please do the Indian headshake, that way I can confirm that you follow. Okay, let’s keep at it.

3. Record Keeping/ Trading Journal

In business, we talk of keeping inventories. From records of stock supplies, to sales, to profits & losses, to miscellaneous, among others. In forex trading, we keep inventories by filling and maintaining a trading journal. This is a comprehensive document whereby you pen down your trades, right from the specific instrument that you trade, to the entry price, to the reason (set-up) for taking the trade, and the exit price of the trade. You note that I haven’t mentioned listing down your risk to reward ratio because this is like the SI unit of placing a trade position. See what I did there?

Just like any other business, keeping a record of all your trades in your trading journal helps in the evaluation of performance over time. You are able to note the pairs/instruments that are least profitable and the methodology strategies that yields the highest rate of return. This way, you get to grow in your trading career, as you can always twitch where necessary to achieve better results. 

4. Psychology/Emotional Balance

I intentionally listed this aspect as the last component of your trading plan. Many a times, traders tend to underestimate how much having the right psychology and emotional balance can influence their trading results, yet it is what defines our long term success, almost ultimately. Throughout our lives, we have been programmed to avoid and hate losses. On the contrary, in trading we encounter losses frequently. I refer to them as ‘our cost of doing business.’ You cannot avoid losses in forex trading, and anyone who takes that path ends up in total ruin. As such, our job is to manage losses through setting up controls such as stop losses, trailing stop losses, and price levels available in our trading platforms.

It is your responsibility as a trader to call yourself to a meeting, understand how strong you can control your emotions of loss and fear. For instance, I advise new traders to keep off the markets for a week or so whenever they encounter a consecutive number of losses, instead of jumping back and trying ‘to make up’ for your losses. The latter only worsens the situation, as your mind won’t be in the right space to make sound decisions and for you to FOLLOW YOUR TRADING PLAN.

Everyone is different and only you can examine and put forth the best approach to help you maintain an emotional balance at all times, regardless of the trading results.

This is where we call it a day. You can master this and other aspects of Forex Trading with out top rated Forex Course. Please feel free to visit our blog on our website for our previous coffee hangouts, Okay, I mean the previous articles on other informative trading topics. Thanks ☺.

I must admit, it has been a while since I penned down an article, and what better topic to pick up than to demystify some of the biggest misconceptions about the Forex/Financial markets. It is okay for one to be inquisitive and doubtful, especially being quite a unique class of financial investment for many, but how you act upon getting the information and clarification is of utmost essence. Stick with me in this one, let’s indulge. In this article, as is always my thing, we are going to have a chat, one of those sessions where all you get to do is sip your coffee as I do the talking. 

Is forex trading legitimate? We are talking about the most liquid financial market in the world where more than 5.3 trillion dollars is exchanged every day. In economics, we call it an ‘over the counter’ business. This means than no one institution, no one retail company/Individual, no one country can control the forex markets. It is this high liquidity and stability that causes volatility, i.e. prices of different currencies and commodities moving up and down frequently and continuously. Oh, that last sentence is broken down for you like I am explaining to a five year old to ensure that all you do in this coffee chat is nod, and not ask questions. So that is how enormous the forex market is. It’s a conglomeration of buyers and sellers, everyone putting in their share (capital) on the table, and then trading taking place 24 hours, five straight days in a week, i.e. Sunday midnight to Friday midnight. These are details you can verify in our era of unlimited access to information.

Having said that, everything boils down to how you approach the forex markets, how knowledgeable you are about trading, your ability to analyze the markets for the best trading opportunities, i.e. the best buying and selling positions. I took you through how to approach forex as a business in our previous coffee hangout, that is how to trade forex as a business 

Moving on, did you know that your local bank performs forex trading every day? That your bank has forex traders on desks who trade forex (buy and sell currencies) on behalf of the bank? You may have walked into your bank to buy or exchange currencies, even better, you probably had to negotiate to get a good rate, especially if it was a considerable amount. This is the most realistic and open act of forex trading I can put across today. Your local bank has a team of dedicated forex traders who watch market prices daily, both local and international currencies, in order to trade and make money for the bank by taking advantage of the exchange rate variations. Every small tick in the price, up or down is an opportunity for them to buy or sell and bank some profits out of the margins. And good for them, we have entrusted our savings with them thereby guaranteeing them of liquidity. That part there my friend, is forex trading for you in its purest form.

That being said, the next big question for you would be; can I trade forex for a living? Allow me to tell you a little about myself. I started Forex trading 11 years ago. I have been trading fulltime up to date. I wake up to it every day, and I live off trading. The forex trading online course that we offer at Fourthstreet Consultants that comes with one on one training sessions is only an extension of our skills attained over many years, sharing our wisdom and mentorship to those willing to take up one of the most rewarding careers, when undertaken with utmost knowledge and skill. However, that is my story in a nutshell, and it’s not our hangout agenda for the day. If you wish, we can plan for another coffee hangout to talk about my journey, my career, the highs and the lows, then you get to know more about myself.

You can trade forex either part time or full time. This is largely dependent on a number of factors, some personal and others capital related. For instance, if you have a fulltime job, it would be best for you to trade part-time. All you would need to do is employ trading techniques which require you to analyze the forex markets and place your trades every close of day. These lessons and skills are all covered in expansive video lessons and well laid out trading strategies available on our online forex course, together with personalized training sessions that we offer at our offices. The beauty of forex trading platforms is that they provide the parameters for you to scale and control your risk and reward, as such, you get to limit how much you can lose or gain anytime you are placing a trade, whether you are present online or not. We teach about end of day market analysis trade executions in our comprehensive forex course. This is where you get to analyze the various currency and commodity markets to place trades based on rewarding opportunities at night towards the close of the day’s trading session. In a previous hangout, I talked about how correlated trading and hunting is, you can catch up on all that here. This article goes ahead to expound that in forex trading, the best trades are the ones that are carefully selected (hunted), and that less is more in trading. This means that you only need a few quality trade set-ups in a month to make your margin as opposed to executing too many trades. Too many trades means more exposure of your capital, and therefore more risk to your portfolio. 

That being said, one can as well take up forex trading full time. And what’s better yet, even for those who do trading as their main job doesn’t need to be stuck on their computer screens the whole day. You only need to screen and analyze the different forex charts for trading opportunities periodically, for example every four hours, or six hours, or for some traders like me, every 12 hours. This gives you the freedom and the space to take care of some other business and/or family while at the same time allowing your trades the space and time that they need to work out as per your edge. However, for it to be fully rewarding and supportive for your daily needs, you would need to invest a significant amount of capital for the reckonings to work out. Just like any other business, investing a bigger capital yields more considerable returns that would sustain you for a fulltime business. Don’t fall in the fantasy and misconceptions that are out there that you can make high returns in forex trading from a small amount of capital. IT NEVER WORKS. 

And this is where we call it a day for our coffee hangout. Thank you for being a decent audience, even when your right of speech was breached ☺.

Even though you may have the expertise in Forex Trading, that is not the only factor that determines your long term success as a Forex trader. You may have all the knowledge and the know-how on Forex trading strategies, efficient and faster platforms and risk management but without knowing how to manage your emotions, you cannot become successful in trading Forex. Remember that precious money is involved while trading and it can be easily lost. In this blog, we will discuss about the kind of emotions that a Forex Trader should avoid to achieve success.

Greed

Greed is definitely a huge obstacle while trading. It is understood that one may get huge returns from Forex but one has to be cautious no to be greedy and try to get huge returns on every trade. This may lead you to blow your account. Risking your whole balance on an account for a single trade speculating an enormous return is not the way to earn from Forex trading. Forex trading is undoubtedly not a ‘Get Rich Quick’ scheme. If you want to get rich, you have to do it slowly.

To overcome greed, one needs to accept the fact that not all trades end up being successful. With this in mind, you know that the market is bigger than you and mistakes are bound to happen. Follow your trading plans instead of falling into greed. Make sure you always risk a small percentage of your capital in every single trade, and follow through this plan to the point.

Impatience

Depending on the type of strategy you might adopt to trade Forex, it should tell you when and where to get into a trade (Price action trading). At least this is true for us and is what we train our traders at Fourthstreet Consultants. You may jump into an entry point prematurely and miss a better entry point that would have earned a profit but end up finding yourself taking a loss.

If your timing seems inadequate despite adopting patience, adjust your strategy so that you may be able to observe more indicators. This will allow you to grow your patience and save you from entering into trades prematurely. This in turn allows you to earn more profit in your trades and make your trading less frustrating. You can only learn these skills from professional traders who have been successful in their trading career, and is what Fourthstreet.co.ke offers its traders/students.

Fear

Fear in Forex trading is understandable. Experiencing fear is normal. This fear understandably results from the increased possibility of losing money while placing trades due to certain uncertainties in the Forex market. This can happen to every trader.

For example, you hold a position and the price starts dropping. You start getting nervous about losing money considering your last trade was quite unsuccessful. You decide that you cannot keep losing money despite your adopted strategy encouraging you to remain resilient and you decide to close early. The next thing that happens is that the price support comes into play and the price also rises. This shows that your fear was the detriment to your trade and it forces you take a loss.

To avoid this, you need to identify the source of your fear and understand how to deal with them to become a better Forex trader. That way you will have turned your fear to a source of improvement.

Over-confidence

Having a series of successful trades is really good but this can also lead to over-confidence. You may think that you can’t lose and that there are absolutely no errors in your methods or strategies. Confidence is indeed quite important to become a successful trader. However, this is not the case when you think you know everything about the market. Over-confident traders tend to get into trouble by trading larger positions than they are used to or even overtrading.

A successful trader needs to always evaluate their trades despite having a long run at gaining profits from Forex. You also need to implement your strategy and implement the right entry points. Needless to say, you also need to limit your losses despite having earned a lot from the previous trades. If you are not careful, you may end up losing all your gains from previous trades.

Conclusion

Mastering your trading psychology won’t make you money in itself, but if you are not aware of the tricks your own mind is trying to play on itself, you will probably find yourself losing even if you are a good trader and are basically right in your trading decisions.

FourthStreet Consultants offers an Online Forex Course that delves deep into the right trading psychology to adopt and much more in order to become a professional trader.

FourthStreet Consultants all-inclusive Online Course program for those committed to becoming a successful trader provides step-by-step trading basics that will equip you with the knowledge and information you need to understand and make consistent returns from the Forex market.

The objectives of FourthStreet Consultants Education Package are:

  • To guide candidates in mastering a professional body of knowledge and in developing fundamental and technical analytical skills.
  • To promote and encourage the highest standards of forex education.
  • To empower many to be able to seize income-generating opportunities through forex trading.

Enroll for the Online Forex Course here https://fourthstreet.co.ke/forex-training/