Today we are going to be giving you seven trading secrets every Forex trader should know . They are going to be massive and eye opening. If you are new to the industry, I’m excited to show you guys.
Let’s go traders! Welcome guys to the top trader Channel? I’m your head trader, Cleveland Bishop,and you guys new to the channel, I’m excited to have you. This is gonna, be a very eye-opening video for anyone new to the trading industry and honestly, some folks have been in the trading industry for years, and we talk about these same things.
90 % of traders that have been in a year have never even heard of these statistics. These are great and eye opening, I truly hope this will help you guys scale up in your trading careers.
Alright, if you guys enjoyed the content, make sure you guys subscribe and if you liked the video like the video for your boy, I very much appreciate it alright. So, in this space of trading retail trading in FX, how did this space come about? We have to understand what this is right?.
You guys are managing money inside of a portfolio it wasn’t even possible ten years ago,to have had access to these types of currency. We wouldn’t of had access to these. These direct feeds to these interbank networks.Then internet came about, and then these companies decided to build businesses around this speed.
The cost to have faster internet was decreasing, which allowed for many different new businesses to be launched into the retail consumer market, and brokering and trading was one of them. So, the first retail trading secret, is technical analysis.
It isn’t a strategy. If you guys know – or if you guys are subscribe to the channel, you probably knew I was gonna bring up technical analysis in some form, but this is a massive problem in the retail industry.
Everyone thinks technical analysis is somewhat of a strategy. Well again, we create fundamental analysis or we use fundamental analysis as our backbone of how we source our strategy, but in and of itself fundamental analysis.
Isn’t a strategy either right. So fundamental analysis is a strategy. Technical analysis isn’t a strategy. It is a smart methodology. These are ways that you look at the market. Saying technical analysis is how you use your strategy or support and resistance is your strategy.
It’s, just like saying: shooting a basketball is your strategy. Yes, shooting the basketball is what you’re trying to accomplish, and yes technical analysis is what you’re using to accomplish your goals, but in and of itself it is not a strategy.
So that is a massive secret guys. Stop trying to rationalize how to execute in the market by simply saying you’re using technical analysis or support and resistance or market behavior these in and of itself aren’t strategies.
These are not edges. We have to have a true quantifiable edge, a true advantage over the market. Why are you beating these market participants? Why are you making money? These are the ways you’re gonna truly be able to make consistent profits in the market by having an edge and technical analysis.
It isn’t of itself an edge , that’s the first secret. I must tell you that 99 % of the retail industry gets this wrong time and time again.The second secret . This one comes from Citibank, a massive commercial bank.
Here in the US, I used to work out of a few firms, and I knew this to be true, but I didn’t realize how many people didn’t understand undercapitalization, that’sthe second secret , when you have under a $ 5,000 trading portfolio .
You’re 70 percent, more likely to never see a sustained growth in your account there’s, so many different reasons why that is the case, but it’s mostly because, firstly, you don’t know how to manage money, you’ ve, never managed money a day in your life right.
So how could you ever secure more? How could I ever assume that you’d be able to have a random portfolio and then start getting consistent returns in that portfolio? That’s, one . Also your account is so small .
What you are mostly doing is working with these insane brokers that are over leveraging you a hundred to one. Even in the thousands , nine out of ten traders that we speak with are with these unregulated brokers, and this is a massive reason why we’re seeing so many traders fail because they have these smaller portfolios and they’re trying to get these larger returns.
This business is not about small portfolios and large returns. This business is all about big portfolios and small consistent returns. That is the second secret, if you guys have these smaller accounts, there are some very particular methodologies to grow it, but most you guys don’t know what that is or you have got to find a good resource to understand how to scale these smaller counts by the end of the day, if you’re fighting a losing battle, you need to save up enough capital truly be able to trade properly.
Secret number Three. Strategy is only 25 % of a trader’s success and some would say it’s even less. Most of you guys spend your time looking at your strategy trying to rationalize what’s happening in the market.
Maybe you have a vague idea about what your strategy is . I’m assuming you guys have a very solid, very good strategy. You may have an edge even. It’s, not about how well you’re implementing that strategy, because it’s, still going to be based off the statistics. The strategy is not gonna be hitting out a hundred percent. It’s, never gonna happen. So there’s so many things around strategy that traders need to understand and that they don’t spend their time focusing on .And you need to know that the industry doesn’t help.
Yes, you have strategy, but then of course you have to have money management. Of course you have to have the right mindset and you have the forex market structure in the rationalization of what these markets are doing.
So you have the market participants and of course the market inefficiencies price discovery and so many other variables at hand outside of just the strategy alone. One of the biggest reasons why we see traders fail or succeed is because they have a business .
They journal well. They have a very solid idea on when it comes to their risk reward or when it comes to their average winning percentages. They’re very, very understanding in how to run their trading business.
Okay, so make sure you avoid focusing strictly on what’s happening in the markets at all times to try to catch trades when you can focus on the overall business of trading and growing a portfolio .
The next secret is this. Not ninety percent of traders lose money. Okay, it’s, not ninety. Five percent of retail traders lose money. Ninety nine percent of retail traders lose money, okay out of a thousand traders that opened up an account over at gang capital in 2017,only about 10 of those traders who had a consistent return three months in a row. That’s absolutely amazing right and what are the statistics about those portfolios, those ten traders? They were professionally trained in some capacity and they didn’t come from college or university like I did.
I mean that’s not what’s necessary, but they had a very, very well founded understanding and how to make money and markets and how to grow capital right unlike those other thousand or 990.
Are just random people on the internet, opening up a broker, depositing money and then trading away? What’s also different about those ten traders where their account sizes were much larger? They understood how to manage money and they weren’t trying to hit home runs every time so it’s going to be really important for you guys to understand how to truly scale in the business and not be the 99 percent. It’s, not 95 percent. It’s 99 percent of people lose money. Alright, if you guys want to be that 1 % of traders that are successful, there are many things you have to understand about the overall business to truly scale.
That is the massively important secret number five. The best traders and the most consistent traders have a 50 % winning percentage. Okay. This is coming from again more portfolio breakdowns of traders inside of brokers.
Again, I’ll tag up a lot of these different resources below, but when you have a 50 % winning percentage, then obviously, what’s happening? You’re, letting winners run and you’re keeping your losses.
Smaller traders are trying to do what 80 90 percent. Everyone’s trying to sell you on this massively winning strategy, most traders that are succeeding in these markets, don’t care about 1 out of 10 trades.
How many did I win? It’s more or less out of these ten positions. How much money did I lose and how much money did I make that’s way more important than the actual winning percentage? Anyone that does a lot of studying in this business know a lot about the turtle traders.
These guys have 30 and 40 percent winning percentages, and they were one of the most winningest traders in the 70s and 80s. Okay, so guys it’s, not about the winning percentage, pull back on that ideology and focus more on having a true edge, and that means catching a directional move in the market and understanding everything about that move when to take profit when to get In when to pull out of the position, the anatomy of the trade itself secret number six g My favorite most traders have a direct mentor.
All right, I haven’t been to a rally but I’ve had a few mentors in my trading career, I’ll post, some footage of him here and a host of recording or a video that we did below as well. So you guys can get to know him a little bit better, but having a mentor was everything it saved me a tremendous amount of time and rationalizing what I needed to understand in this market.
Again, you’re coming in and completely green. You have no idea of what you’re doing and you’re competing against these massive institutions, people at Citadel people at Bank of America, people at SunTrust.
These guys have been professionally trained in universities and they obviously all had Mentors. Look at every single trader that is successful.Look up to George Soros or Warren Buffett.
All of these guys they got their information from somewhere or from someone, but it was a direct line. They didn’t pull resources from a hundred different places, like 90 % of the traders in this industry are doing.
What are you doing? You’re going to this YouTube video this other YouTube video and to this other YouTube video and you are trying to synchronize all of this information. When probably a lot of these people are contradicting each other.
You need to find one source, one individual, that’s doing well in scale and keeps on scaling . One methodology, one ideology on what it takes to become profitable in this business.
That is gonna, be your best bet, not finding a million different reasons or a million different places to learn from. That’s the worst thing you can do. I went down that road way back in 2011-2012 and trust me.I would haved saved years if I’d, have just found one mentor and paid them and sat with them. I would work for him for free, whatever I could do to understand how this business worked. I suggest you guys do the exact same thing find one source find one person and scale into that individual and research and properly understand that they’ve created more successful students in the past, and you will be much better off than trading completely by yourself and looking for free resources, it depends on how much you want to waste your time or not.
Alright find a mentor that’s, gonna be a massively impactful change. The last secret that I want you guys to understand is day trading versus swing trading . I’ve day traded in the past I still day trade today, but I wish I would have started off swing trading. Swing trading is undermined in this industry and everyone pulls over to day trading, making these instant profits pulling money out of the market every day. These people have daily pips income targets.
All of that is a fallacy that’s, not how the business works. Whenever you are trading in this market, you’re, looking for an opportunity and as you know, opportunities come and go, and on many occasions you may not have an opportunity that day.
So how could you pull capital out of the market when your edge did not present itself when there was no opportunity to do so? You won’t, pull profits out of the market, and I’m sure you’ve had a horrible time trying to consistently make money every single day. It’s because you shouldn’t worry about that. You should have longer targets, have a monthly goal. Right maybe have a biweekly goal, but this also means they should probably adopt swing trade. We have an internal report about our performance when it comes to our day traders.
Firstly, 80 % of the time our swing traders are performing much better than our day traders. Sometimes our day traders can catch these really nice runs in the market though.
Ok, but 9 times out of 10. Again, we’re, seeing a lot more success for our swing traders. So you should adop swing trading and stop worrying about trying to catch instantaneous, pips and 10 and 20 pip targets, and just these daily scalps.
That is a game, and that is a massively losing game. You should potentially move over into swing trading, get on these larger time frames. So you can start catching these larger moves and markets. They won’t be as frequent, but they would be much more impactful and they’re much more easily to calculate .
If you would like to learn more about Forex trading and actually have a mentor guide you while they are actively trading (that is right they will actually show you what they are doing as they trade live and making money). And they do live sessions at different times of the day. Then please click here.
Have a happy trading day. And please subscribe to Top Traders on YouTube as they have provided me with this video and valuable insight for us all..