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gemmapel matthew and i am a forex and
crypto trader from australia
hi traders today i thought i'd do
something a little bit different and
show you a presentation i did
last year for a trading conference in
the democratic republic of the congo
so there's a group of traders over there
who invited me to present
a presentation at their online
conference
and they asked me to address several
subjects mostly relating to beginner
traders
what pitfalls to avoid and what habits
to build
in order to be successful in the long
term so it was a lot of fun i really
enjoyed
coming up with this presentation so i
hope you guys find it interesting
and sage if you're watching this thank
you for inviting me to your conference i
had a great time and without further ado
here it is good luck with your trading
in 2021 and i'll see you in the next
video
i run the youtube channel and trading
blog zen and the art of trading
i'm honored to be included in this
conference so thank you for inviting me
sage and lu trading mastery
before i begin my presentation i should
tell you a little bit about my history
and how i became a trader i began
trading
in 2017 after my father convinced me to
come with him
to a trading seminar as soon as i saw
what trading was all about i became
obsessed with navigating the financial
markets
at the time i was a broke musician and i
had no money
but my father believed in me and let me
borrow three thousand dollars to begin
trading with
i bought some cryptocurrency with that
money in 2017
and a few months later my three thousand
dollar investment
was worth over seventy thousand dollars
of course that is not a normal
experience so i don't want to give
anyone the wrong impression
i got extremely lucky and because i was
new to trading
and had no idea what i was doing i lost
a lot of money by getting greedy
and holding on to my positions for far
too long when the crash began
but i learned some extremely valuable
lessons throughout that time
i realized how much potential there is
to make good money
as a trader i learned that i really
enjoyed the challenge
and i learned that this is what i want
to do for the rest of my life
since then i have moved over to trading
forex or foreign currencies
for the first year i made no money in
fact i lost a few thousand dollars
but by the second year after finding a
great trading mentor
i became profitable and for the past two
years i've been trading forex and crypto
every day now i've been asked to address
several different topics in my
presentation today
the first one is about the myths and
falsehoods
that people develop around trading a few
months ago i wrote an article
on my blog called 10 untold truths about
trading
in that article i covered the top 10
things most people don't understand
about trading because time is short i
will cut it down to the top six
for today's presentation number one it's
not easy
perhaps the most enlightening
realization i've had about trading
is that it's a journey like every other
form of human accomplishment
you can spend the rest of your life
improving your skill
but you will never attain ultimate
perfection there will always be
something you can do better
trading requires determination
commitment
and sacrifice of course once you master
your chosen style of trading
then trading can become simple and even
fun but don't expect it to ever be easy
number two it's not exciting another
popular misconception about trading
is that it's exciting people see movies
like wolf of wall street
and think that trading is going to be
like a hollywood film
but that couldn't be further from the
truth of course there are times when you
get excited over your progress
or a good week or a particularly good
trade but the reality is those moments
are few
and far between and they are usually
followed either by a period of boredom
or pain number three good traders
keep good records you will be spending
most of your time as a trader
staring at spreadsheets and statistics
if you don't spend more time journaling
and testing
than you do placing and managing trades
then i can guarantee
that you will not be performing to your
full potential as a trader
you can't improve what you don't measure
number four
you don't need to be right to make money
there is a popular misconception among
new traders that you need to be right on
a lot of your trades to make money
the truth is most professional traders
do not win
as often as you might think the average
win rate for some of the greatest
traders of all time
is between 20 and 50
very few traders ever exceed a much
better win rate
than that their edge over the markets is
a result of their ability
to quickly admit they are wrong on their
trading ideas
they don't care about being right they
care about controlling their risk
and maximizing their profit on the
trades that work
it's the combination of solid risk
management with a solid strategy
that leads to stable growth of your
account number five
trading is a mind game one of the best
things about trading
is that it's a competition with yourself
you must constantly improve yourself
in order to succeed most traders fail
because they never fix their mistakes
or they let their emotions rule their
decision making if you make a mistake
more than once
then you have a problem and you must fix
it if you become
greedy fearful or careless with your
trading
then once again you have a problem and
you must fix it before you can find
success
as a trader most traders waste their
time looking for the best strategy they
can find
while neglecting to work on themselves
and so they never find success
because they never develop
self-discipline success requires
emotional control
self-awareness and confidence in
yourself and your trading approach
there are no shortcuts number six
there are thousands of profitable
strategies there is no holy grail in
trading
it is of the utmost importance that you
fully understand this fact
the key to trading is not finding the
perfect strategy
the key is to find the perfect strategy
for your psychological strength
and weaknesses it's tempting to think
that whatever you're doing right now
maybe there is a better way to do it and
oftentimes that's true
but that doesn't mean you should drop
everything you're doing and try
something new
right now a huge part of trading success
is consistency
and consistency requires a certain
amount of time to develop
if you are changing variables in your
strategy too frequently
or worse hopping strategies altogether
then you will never reach the end of the
rainbow
the problem for traders is not that it's
hard to find a profitable strategy
that's the easy part the hard part is
finding a strategy that suits your
personality
put more energy into developing your
mental edge and self-discipline
than searching for the best strategy
next
is it possible to make a fixed income
from your trading
many traders wonder if it's possible to
make a fixed return
out of their trading they want to make a
certain amount of money each day
or each week from their trading
unfortunately
this is not possible unless you invest a
significant amount of money into stocks
or bonds which pay consistent and
reliable dividends
then there is no way to make a set fixed
income
from trading trading is a lot like
hunting
or fishing as active traders we eat what
we kill
and like all honest professions we are
at the mercy of mother nature
a fisherman might be an expert at
catching fish
but even he cannot predict how many fish
he will catch
or when he will catch them but an expert
fisherman knows that if he is patient
and persistent he will eventually catch
some fish
and the better he is at his craft the
more fish he might be able to catch
throughout a day or a week but he
doesn't control the weather
and he doesn't control the fish trading
is the same
we don't know when market conditions are
going to favor our trading strategies
or work against them we don't know if
the next trade will be a winner
or a loser all we know is that if our
strategy has a positive expectancy and
an edge
over the long term then in 100 trades
from now
we ought to have more money than we did
before we don't know how much money we
will make
or how much we will need to suffer along
the way because even if your strategy is
profitable
it's impossible to predict whether or
not it will make money this week
or the next but by the end of the month
or by the end of the year
if you've taken lots of trades and your
system has an edge
then most of the time you will make
money but keep in mind that you don't
necessarily need
to make all of your money from trading
most traders i know have work that they
do on the side to boost their income
that way when their trading isn't going
well they don't make matters worse by
becoming stressed
and emotional consistently profitable
trading is an extremely valuable skill
high in demand once you find success as
a trader
there are many ways to convert that
skill into money for example you can
sell your services by teaching others
how to trade you can sell your
profitable strategies to other traders
who are looking for a strategy that
works
and if you need more money to trade so
that you can make more money
then you could try joining a prop firm
or find funding
online from services like top step fx
topstep fx is a company who will give
you large amounts of capital to trade
and you keep a large percentage of the
profits there are many companies out
there like them
there are also many prop firms around
the world who are constantly searching
for profitable traders to add to their
staff
some prop traders even get paid a small
salary instead of pure commission
that way when their trading is not going
well they can still pay their bills
sometimes you can even make a fixed
return from your trading skill
without needing to place any trades at
all for example this year i launched a
computer programming course teaching
traders how to create their own scripts
i also sell some of my scripts and
services to other traders
so now whenever i have a bad month or
two in my trading
and don't make any money it doesn't
affect me each month i make plenty of
money to pay my bills
and live my lifestyle from multiple
revenue sources
any money left over gets added to my
trading account
and i continue to grow my wealth as
traders we are entrepreneurs
not just market participants we must
make our own
fate nothing great comes easy in life
and you must work hard
to build wealth trading can help you
accelerate your wealth accumulation
but it's a bad idea to rely on it alone
that doesn't mean it's not possible to
make a full-time income
purely from trading many traders manage
to achieve that
but it comes at great risk in the
beginning and with great challenges
throughout
and it takes time trading is not a
get-rich-quick
vehicle if you treat it as such you will
get burned
now how to find success as a trader now
i've already covered
most of the things i believe are
important to be a successful trader
so i won't spend too long on this
subject but finding success as a trader
can be thought of as a formula
you will need all of these things in
order to find success
no matter what market or trading style
you choose a mentor
or a guide emotional and mental
discipline
a trading strategy with an edge
unwavering perseverance
and determination a passion for studying
markets
a passion for overcoming challenges and
self-improvement
attention to detail and great record
keeping
a high tolerance for pain and of course
a good internet connection and that one
is very important
next how to avoid scams scams
are usually fairly obvious unfortunately
there are a lot of scams out there
that prey on vulnerable traders beware
of any of these signs
when buying a course or a trading
product anything that promises a fixed
return
or guaranteed result anything that
promises an extremely high win rate
anything that promises to make you a lot
of money
really fast anything that promises you
to make money
with minimal effort in fact you should
be skeptical of anything that promises
you anything at all
because there are no guarantees in
trading and typically
anything that promises to make trading
easy
is usually a scam trading is not easy
the best way to recognize a scam is to
use rational
thinking ask yourself if it seems too
good to be true
because it usually is and you should
always
check reviews what do other people say
about this person you plan to buy from
if you can't find any good information
on them from other customers
then don't do business with them and
finally
how do you recognize a viable strategy
there are thousands of profitable
trading strategies out there that work
the problem is not finding one that
works the problem is finding one that
you can execute with confidence
if you lack confidence in your strategy
then you will not be able to trade it
properly
if you do not have confidence in it you
will not endure
the losing streaks and all strategies
encounter losing streaks
there is no way around it if there was a
way to win
all the time then there would be many
more billionaires
in the world instead you must find a
strategy
that matches your psychology and risk
profile
for example if you're impatient then you
don't want to trade a strategy that sits
in trades for many days or weeks at a
time
if you're anxious and conservative then
you don't want to trade a strategy that
is too aggressive
if you are an aggressive trader then you
don't want to trade a strategy
that has high risk there are a lot of
things to consider when choosing a
strategy to master
some things to consider include the
practicality of the strategy given your
circumstances
such as the time of day the trades are
taken
for example if you work all day you
can't trade a five minute time frame
or the frequency of trades for example
if you want to grow your account fast
then taking one trade per week won't do
it and then there's risk per
trade there are some markets out there
that require a large account balance
to be able to trade them and you never
want to risk more money
than you can comfortably lose once you
decide on a strategy that you can
execute consistently
then the next step is to prove that it
actually works
the only way to prove a system works is
through the process of back
testing and forward testing now these
two things will take
far too long to explain in this
presentation and if you go
to backtestingfx.com you will be
redirected to my blog
with more information on how to back
test strategies to prove their viability
i have an hour long video on there that
goes into great detail
about exactly what you need to do to
prove a strategy works
but just briefly let me give you an
overview of what back testing
is back testing is the process of going
through
historical data and meticulously testing
your strategy
over past price action if you can find a
sample size between 100 to 1000 trades
to test then you can predict how your
strategy may perform
over future price data you can identify
price patterns
and market conditions that give you an
advantage over the long term
by combining back testing with forward
testing
you can confirm if a strategy is viable
again for help on this subject visit
backtestingfx.com
in closing trading is one of the most
intellectually stimulating
challenges and financially rewarding
careers
that you can embark on but it contains
many difficulties
and obstacles it can take some traders
up to two or three years to find their
feet
and develop their style but if you have
a good trading mentor
or teacher it can happen a lot faster
than that
that's all i have time for today i hope
you found my thoughts
inspiring and helpful in informing your
journey
as a trader the fact that you sat
through all of this
tells me that you have what it takes to
be successful in this career
all that is required is for you to put
in the work
manage your risk responsibly so that you
never blow up
and never give up your quest for
improving yourself
and your results if you want to find out
more about me and my trading experiences
and philosophy check out my blog and
youtube channel
over at xenontheartoftrading.com take
care everybody and thank you so much for
sharing your precious time with me today
i hope you enjoy the rest of the
conference and i wish you the best of
luck with your trading journey