…Special dispatch, from the inner sanctum on the 18th floor of the Hecksher Building…
The “Zero to a Million” Account is LIVE – and growing! Today we’ll be covering the live link to the Million Dollar Forex Journey account, additional notes on the trading strategy, and more basic trading principles that you can apply to any trading plan. (If you haven’t read the basic strategy yet, it’s available HERE.)
All right, let’s get straight to what everyone’s been clamoring to know. The link to the Million Dollar Forex Journey account is at Myfxbook.com, and can be found by using the search box to search for either of the following: Here is the direct link http://www.myfxbook.com/members/TheSundanceKid/50-1-million-18-months/866110
System: $50 to $1 million in 18 months
I opened the account with a deposit of $49.92 the end of last week. I apologize for starting without you, but I really felt the need to test things out a bit first, plus I was switching to a new trading platform and wanted to get familiar with using it. Current balance (at the moment of this scribbling) = $152. Not a bad first week. 🙂
The account does show my trades live (although I’ve noticed it seems to run a couple of minutes behind my actual moves), complete with stops and profit targets – I assume you have to refresh the page periodically to stay updated. I don’t often enter profit targets, and when I do they are noting what I think is the maximum I can likely get out of the trade. And I move my stops depending on market action, often several times during a trade.
Now, having provided you with that information, let me (politely) yell this as loud as I can – I do NOT recommend that anyone ever just blindly follow someone else’s trades (and certainly not mine!). That’s not the way to become an expert trader – the way to become a master at trading is to make your own trading decisions. What you can use the account link for is to keep up with how the account is doing, for possible trade ideas (if you see a position I’ve taken, rather than just jumping into it yourself, look at your own charts and figure out what the possible reasoning behind the trade is and then think about how that compares to your own analysis of the market), and if you’re relatively new to trading, just to get a feel for how a trading day or week goes. One other thing I would like you to notice is the importance of taking low risk trades – My average winning trade is more than twice the amount of my average losing trade, so in effect I can be wrong on 2 out of 3 trades, yet still turn a profit overall.
My usual trading hours are from about 6 AM till 12 noon (give or take an hour), New York (US Eastern) time. I sometimes get up for the London open, most often on Mondays and Fridays. If you see me trading much past lunchtime in New York, it’s an unusual day for me.
More on My 15 Minute Strategy
Here are some more details on my 15 minute chart trading strategy, known affectionately as the “Dance”.
1 – Watch for 3 or more consecutive 15 minute candles in one direction. This is usually a strong indication of market direction. So, if you’re considering entering a trade or staying in a trade you’re already in, 3 candles in a row in that direction is a positive indicator. 3 candles in a row against your position should raise a caution flag – If you’re in a profitable trade, but see 3 consecutive candles against you, especially if they close on the opposite side of the 10 EMA, consider either just taking your profit or at least tightening up your stop. See in the photo below: At the top of the move, there are back and forth up and down candles, then 3 strong candles in a row down, crossing back below the 50 EMA – the market subsequently tumbles another 30 pips down.
2 – No more than 2-3 losing trades in a row, or 5 or 6 winners in a row, without taking a break. If you have 2 or 3 losers in a row, STOP – step away from the computer, take a walk, get a snack, something, but stay out of the market for at least half an hour or more. On the flip side, don’t push your luck past 5 or 6 winners in a row – bank your profits, be grateful for them, and walk away. The odds are against a winning streak significantly longer than that (and if you’ve hit 5 or 6 winners in a row, you’ve already had a great trading day – don’t be greedy – pigs get slaughtered).
3 – Average profit per trade. This is a short term, intraday trading strategy. It’s designed to offer the opportunity to consistently make nice, small profits. Occasionally this strategy will allow you to catch a big move – and it’s great when that happens – it just doesn’t happen that often. I’d say maybe once a week there’s an opportunity to make 50 pips or more on a trade. But most trades made using this strategy are only going to catch about 10-30 pips – that’s fine, that’s all this strategy needs in order to be profitable overall. Therefore, once you have a 10-15 pip profit in a trade, seriously consider just taking the profit without waiting for further action. A common mistake that people make when utilizing this strategy is trying to hang on for a big, big profit…only to see their nice small profit roll back toward becoming a loss.
There are more nuances and things to consider in regard to the Dance strategy, and I’ll continue to write about them here every week – we just can’t cover everything at one time.
Let’s take just a minute to look at some basic trading principles, things that apply to any trading strategy you use.
Trading Principle: Focus on the market, not the money. You think about the money before you put a trade on (“What’s my potential profit or loss? What’s the risk/reward ratio?”), but once it’s on, focus back on the market. Base your trading decisions on what you see the market doing, not on the moment to moment fluctuation in your equity. Re-evaluate your position often, at least hourly – Ask yourself, “If I’d just started looking at the market right NOW, what would be my thinking about its direction? Would I be a buyer or a seller, or standing aside?”
Trading Principle: Patience is a virtue. Someone asked me, “How long do you watch the market before taking a trade with this strategy?” I was tempted to jokingly answer, “Unfortunately, usually not long enough”. Here’s the thing – as soon as we turn on our computers, our natural impulse is to want to be in the market right away. Recognize that fact, and recognize that you have to guard against the temptation to jump in just because you want to be in, not because there’s actually a good opportunity on the board. The good news is that with this particular trading strategy there are usually plenty of good trading opportunities – probably at least one every hour or two from the London open to midday in New York. Be patient, wait for a genuinely good opportunity.
Trading Principle: Persistence will overcome everything. If you believe you can do this, you can. If you don’t believe it, you can’t. This applies to everything in life, and it surely applies to trading. Don’t listen to negative people who tell you that you can’t make a living as a trader – they don’t have a million bucks, do they?
Random notes: I honestly don’t know if someone can start out this small using only 50:1 leverage. I’m trading this account using a broker outside the U.S. using 500:1 leverage, and, starting with $50, I chose an average lot size per trade of .05 (that’s 5 micro lots)…Pairs to trade: I mostly stay with the major pairs, Eur/Usd, Gbp/Usd, and Aud/Usd, but also trade Eur/Aud, Aud/Jpy, and a few others – just stay away from exotic pairs where there’s too high a spread (more than 2 pips).
NEXT WEEK: I’ll report on how I’m doing with the account, provide a chart of projected account growth, day by day, all the way to $1 million, and as a learning exercise, we’ll examine an actual trade or two that I’ve made. Also, more notes on the Dance strategy. See you here next week!
Please offer comments and questions, and please share this article with anyone else you think may be interested.
My prayer every morning is that this “Million Dollar Forex Journey” be a blessing for us all – wishing you all good things in your life, always.
Jack Maverick is a writer and forex trader. Find him on Google+ at https://plus.google.com/u/0/103534926809963693894/?rel=author and check out his novel, the psychological thriller “A Cross of Hearts”, on Amazon at http://www.amazon.com/Cross-Hearts-J-B-Maverick-ebook/dp/B006GHJ0ZC/
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