Part 14 (My Forex Trading System-Forex Brokers)Remember, forex is not a regulated market, and forex brokers are very far from being reliable entities to hold your money. That’s why I never keep in my forex account more than I need. If my current trading style is let’s say to put 10 standard lots, or $100 per pip on each trade around news times, then I’ll keep enough to comfortably accommodate that, but not much more. I’ve known several forex brokerages that went under, together with their customer funds. You can just do your best to pick a big brokerage and stick with them. At the time of me writing this, I have accounts with http://www.mbtrading.com/ and http://www.oanda.com/. If you are a member of Secret Forex Society, you can receive 20% rebates on your commissions with mbtrading. You can read more about it in your Secret Forex Society secure area, broker vault, or if you have any questions, send me an email. MBTrading and Oanda are far from being perfect, and I don’t vouch for them at all. You should do your own research, and pick the broker that you feel most comfortable with.
Part 15 (My Forex Trading System-The Essence)My forex trading system is very simple, but sophisticated at the same time. It’s based on pure good logic. Here is the idea behind it. Since forex is a free trading market, at any given time, forex prices reflect the exact current situation, and you have to assume that the price is always a perfect reflection of what’s going on at this moment, until it’s not. Currencies are simple reflections of each country’s health and economic situations, and therefore country’s fundamentals are extremely important. There are many ways to gauge a person’s health. There is the temperature, blood pressure, heart rate, cholesterol levels, et cetera. Each country has key economic indicators that measure its health on weekly, monthly, and quarterly basis. Mostly monthly, though. If you understand the meaning of each economic indicator, you will be able to understand how it should affect the currency. I personally picked 54 economic indicators, give or take a few when we have some annual reports, or quarterly numbers released. Those 54 economic indicators are for all major countries, which include United States, Canada, Australia, Japan, New Zealand, Switzerland, UK, Euro Zone. When I am talking about 54, I mean those are 54 total out of all countries, not 54 from each country, so every day, on average, I watch only about 2 to 3 of these indicators, and that way I pretty much cover all 8 major countries involved in forex. There are actually fixed scheduled times, when certain economic indicators are released. So I either get to my computer or wake up 1 hour before each of these key economic announcements, I read about the most up-to-date situation on that country and that report, prepare my trade plans, then I login to my online conference room with several hundred of my students and clients already waiting. We listen to some music to lift our spirits, then I start yapping about the report, I show them my trade plan, and tell them what I am going to do. Then as soon as the report comes out, I tell them what I am doing, whether I am buying or selling, or simply holding still, then I tell them when I am exiting. Some people compare their thoughts with mine, and trade on their own, others blindly follow me, which I don’t like, but I can’t do anything about it. Then we usually stay in the room and in the trade less than 30 minutes after the initial announcement, if we make money, we play a happy celebration song, if we lose money, we play some kind of encouraging song. More information about my live service can be found out at http://www.forexdiamonds.com/.
Okay, I didn’t mean to sound like it was advertising. I was just trying to tell you how to approach my forex trading, and what kind of system I have for that. So let me summarize it again for you, and let me make it more clear. Each report has an expectation number that largely is expected by economists. These expectations are made by polling dozens of very smart economists, mostly wearing suits and glasses. They make their expectations and forecasts by looking at the country’s conditions by using previously released indicators. At any given time, you have to assume that if the number comes out very close to these expectations, the market already priced that number in. However, if the number comes out deviating from the expectations, then the market must price in the new data, and make a move. If I was to relate it to real estate, I would look at the house at current condition, and I would say that it’s worth let’s say $200,000. However, if I put in a new kitchen and new bathroom, it would be worth, $220,000. If I was to put in something else, it would be worth more. So from experience of trading these economic indicators hundreds of times, depending on market sentiment, and the deviation from expectations, I know approximately where the currency should be priced. And based on that, we try to buy that currency as cheap as we can, so that we could sell it for a profit, once it makes its full price adjustment. Most of the times, depending on the indicator, the number, and market sentiment, the total adjustment is fully made within the first 90 minutes of the report, though many times it can take a lot less. I believe that after 90 minutes, and many times less time than that, the market goes back to its normal activity. Like in the real estate business that I told you about earlier, there is no formula to handle each individual case. Each case in real estate is unique in its own way, and each trade during these economic fundamentals is also unique in its own way, but the more you trade, the more deeply you understand how these indicators affect the forex market.
By following these economic indicators, I usually get a very good sense and awareness of the market, so I know what everything should cost so to speak under current conditions, and because of that, I can take advantage of some intraday opportunities. To give you an example, just today, as I am writing this article, I had a very nice trade that had nothing to do with watching the fundamentals. What happened was yesterday, I was trading an Australian report, and Australian employment indicator came out way above expectations, the day before that, Australian retail sales came out way above expectations also. My subscribers and I made money on both during the actual time the indicator was announced. I remember that AUD/USD was at 0.8335 after the employment indicator. Yesterday, I woke up after some very nice sleep, and I saw that AUD/USD was trading at 0.8270, then few hours later at 0.8240. I read the most recent news, and there was nothing positive coming out of the US. So I figured that AUD/USD went down based on some fluke in market activity. Maybe there was a big merger going on in the US, and somebody bought large sums of US dollars, and drove the price up across all currencies. I was very convinced that AUD/USD has to go back up to its fundamental price, based on current country conditions, because obviously smart money would immediately see an opportunity. I wrote a note about this trade in my free forex trading signal that I send out to everyone who wishes to receive them complimentary, and I believe the price was at around 0.8269 as I was writing it. I told my subscribers, that I felt that considering the current economic situation in the US and Australia, the price for that pair should be at least 0.8320, and I told them that I went long. Next thing we knew, the price climbed back up and tested the 0.8330 level again. And I have many examples such as this one, and such feel for the market of where everything should be, unless something changed fundamentally, is a feel that everyone will develop who is willing to put the time into following these indicators on daily basis. And the great thing about it is you don’t have to watch the market all day. You just come in, listen to the indicator, trade, and go back to your other activities. And many times we don’t do anything when the indicators come out exactly as everyone was expecting them, and the price doesn’t do much, because the expectations are generally perfectly priced in. Same as I was willing to wait for the perfect deal in real estate, and I was okay if I had to go through 50, in order to find 1, I am also willing to wait for the right forex trading opportunities. Unlike most traders, I don’t trade on probabilities, I trade on certainties. My intention is to be 100% right, and to make money on every single trade. Unfortunately it doesn’t happen all the time, because sometimes the market simply has its own mind, even during some fundamentals, but I would say more than 90% of the time, I can fully explain the move and it would make sense of why something happened, and that’s powerful. Of course I make fundamental errors all the time, I get too greedy, or too fearful, during some normal volatility, but the more I trade the more I get used to it, and the more money I make. And it will always be like that, I know I will never be perfect. The market will always change, and I will always carefully listen to it, and change and adapt to it. And that’s true of any market, whether it’s ebay, or real estate, or anything else.
Now you are probably wondering, why in the world some of these brokers are upset about some of our trading activity? Well…remember how I told you that some of these brokers are bucket shops, their business model is based on market’s efficiency, so back in the day they figured since most traders use different technical tools, at any given time, there will be equal number of buyers and sellers, same as in casinos, pretty much same number of people are betting on red or black at any given time. So the brokers figured that instead of spending money on proper technology and pay per transaction in order to pass their client’s orders into the real market, they’ll just keep all the trades inside, match the traders against each other, and overall, they should be able to collect their spreads, which is equivalent to a zero in a casino, and since most traders don’t know what they are doing and lose money, the broker didn’t mind covering the once in a while dis-balance of buyers and sellers with their own money. But of course, when I taught this fundamental way of trading to thousands of people, and some brokers had several hundred accounts, all going into the right direction with the market, the brokers started realizing that they simply didn’t have enough dumb people taking the opposite direction, and every time they had to do it, they lost money. Plus because of technological limitations, some of these brokers had prices lagging by 1 or 2 seconds from real market, so at the time the announcements were release, we were able to get in at pretty much rock bottom perfect prices. Those were the good old days with the bucket shops. Now it’s a bit tougher, the brokers increase their spreads during news times, and play various games, but we found a way to adjust to their games by using limit orders, and slippage controls, in order to protect ourselves against bad fills, and I also started taking a lot of after spike trades that happen several minutes after the release is announced, and all the crazy price action and spread is done and over. There are all kinds of trading opportunities, even if we miss the initial price jolt so to speak. Remember, there are always orders that were entered before the release, and at the time of the release take profits are being hit, which creates volume in the opposite direction of the report, and causes retracements that we can use to enter, among with many other things.
Part 16 (My Forex Trading System-Conclusion)So that’s my forex trading system in a nutshell. What did you expect? Some fancy formulas and line crosses? I am sorry if I disappointed you. You should systematize your processes of watching after the market, and keep an open mind and look for trading opportunities, when you feel the price is too cheap or too expensive for the specific condition. That’s what it’s all about, buying low and selling high, right? If you are wondering about the next step to take to proceed to learn my forex trading system, then you should definitely sign up for my free forex trading signals. Every night, I send out an email, telling the subscribers the important reports that I am going to be watching the next day. I briefly explain what they mean, and I try to give suggestions about how to trade them, what the expectations are, and what would be a number that would be a shock and could create a move in that currency by at least 50 pips or more. Obviously those signals are not perfect, because I send them pretty much around 12 hours in advance of some of these indicators, and the market can change during those 12 hours, but more or less, I hear people are reporting very positive results, following the suggestions in those signals. So that would be your next free step. If you want to sign up for my live service, which is paid, you can read more details about it on http://www.forexdiamonds.com/ Or if you want to pursue my style, and start doing it on your own, I have no doubt in my mind that if you follow the indicators that I follow, and observe how they move the market, you will eventually become a consistently profitable forex trader. Just allow at least one year for that, assuming that you can watch and trade them consistently, without anyone’s guidance.
Wednesday, November 21, 2007
TALKING ONLINE BUSINESS X
Part 12 (The Essence-Conclusion)So you have been reading all these very nice theoretical things in this article, and it all sounds good, but you think you just want to learn how to make money in forex, you just want me to teach you a forex trading system that will allow you to consistently make a profit. Please have a little bit of patience. We are going to get there. I was trying to make a very important point first, and that point is to please forget whatever strategies you learned in other markets, and please forget about conventional technical analysis when it comes to forex, because these tools were simply never designed for this market. That doesn’t mean that they are bad tools, they are just bad tools for the forex market. A hammer is a very good tool, especially when it comes to nailing stuff, but a hammer is a bad tool for washing windows.
I could’ve just simply said that most of conventional technical analysis is no good for trading forex, and it would sound simply as an opinion, which you may have accepted or rejected, but I really hope that because I spent so much time explaining how the forex market works in general, that helped you understand where I was coming from, and it can help you make a better decision of what tools to use in your trading, and what tools not to use. Let’s continue, but for now, I suggest you reject every single technical analysis tool you ever learned about, reassess the logic of what happens in forex, and deeply reevaluate the formulas behind each technical indicator, in order to see whether there is a logical merit to them that applies to the forex market. And don't forget about your biggest enemy in any market, and that's the law of probability. You might have no idea what's going on and have no idea what you are doing. You might be using one of those green and red lights software, or a completely useless and illogical indicator, but because of law of probability, you will still be right once in a while, and it'll give you false hopes about whatever indicator or system you are using. Please don't ever forget about the good, old logic. If it's not logical, don't do it.
Part 13 (My Forex Trading System-Money Management)So okay, you are probably sitting in your chair, and you can’t wait for me to get to the point, and to finally spill the beans about my forex trading system. I just hope you are not expecting too much. You know, I am a very logical person, and I don’t have any magic formulas. The only magic formula I know of is to donate at least 10% of your income all the time. That’s truly magic. The more I can give away and donate, the more magical my life becomes, both financially, spiritually, and emotionally, and I think this is one of the few universal principles that will apply to anybody who uses it. So part#1 to my forex trading system is to donate at least 10% of whatever trading profits I make. At the end of every week, if I am profitable that week, I actually go and donate 10% of those profits to a charity. I like supporting a charity, called http://www.megfoundation.org/, I make deposits straight to their bank account. If I am not profitable, I don’t donate. I always keep a fixed trading balance in my account, that way I know whether I am profitable or not. For example, if I had $100,000 in one of my accounts, every week I would withdraw anything above that amount, and donate 10% of that. If my account was to drop below that, I would keep trading, without making donations, until it’s again above that amount. Even if I have a negative week, I still donate 10% of whatever money I make in other avenues, outside of trading. That’s how I manage my money. I have a base balance, and I withdraw any profits every week, if I wanted to increase my balance on that particular account to let’s say $200,000, I could do that by a deposit, but not trading profits, and then I would have new base balance.
I could’ve just simply said that most of conventional technical analysis is no good for trading forex, and it would sound simply as an opinion, which you may have accepted or rejected, but I really hope that because I spent so much time explaining how the forex market works in general, that helped you understand where I was coming from, and it can help you make a better decision of what tools to use in your trading, and what tools not to use. Let’s continue, but for now, I suggest you reject every single technical analysis tool you ever learned about, reassess the logic of what happens in forex, and deeply reevaluate the formulas behind each technical indicator, in order to see whether there is a logical merit to them that applies to the forex market. And don't forget about your biggest enemy in any market, and that's the law of probability. You might have no idea what's going on and have no idea what you are doing. You might be using one of those green and red lights software, or a completely useless and illogical indicator, but because of law of probability, you will still be right once in a while, and it'll give you false hopes about whatever indicator or system you are using. Please don't ever forget about the good, old logic. If it's not logical, don't do it.
Part 13 (My Forex Trading System-Money Management)So okay, you are probably sitting in your chair, and you can’t wait for me to get to the point, and to finally spill the beans about my forex trading system. I just hope you are not expecting too much. You know, I am a very logical person, and I don’t have any magic formulas. The only magic formula I know of is to donate at least 10% of your income all the time. That’s truly magic. The more I can give away and donate, the more magical my life becomes, both financially, spiritually, and emotionally, and I think this is one of the few universal principles that will apply to anybody who uses it. So part#1 to my forex trading system is to donate at least 10% of whatever trading profits I make. At the end of every week, if I am profitable that week, I actually go and donate 10% of those profits to a charity. I like supporting a charity, called http://www.megfoundation.org/, I make deposits straight to their bank account. If I am not profitable, I don’t donate. I always keep a fixed trading balance in my account, that way I know whether I am profitable or not. For example, if I had $100,000 in one of my accounts, every week I would withdraw anything above that amount, and donate 10% of that. If my account was to drop below that, I would keep trading, without making donations, until it’s again above that amount. Even if I have a negative week, I still donate 10% of whatever money I make in other avenues, outside of trading. That’s how I manage my money. I have a base balance, and I withdraw any profits every week, if I wanted to increase my balance on that particular account to let’s say $200,000, I could do that by a deposit, but not trading profits, and then I would have new base balance.
TALKING ONLINE BUSINESS IX
Part 11 (The Essence-Forex Is Not Singular)Let’s now cover another very important subject that pertains to forex trading, and especially pertains to anybody, trying to build a profitable forex trading system. The subject that I would like to discuss here is lack of singularity in the forex market. Remember, we talked about the stock market being singular, and we discussed that theoretically it makes some sense to predict human behavior technically and systematically when they are buying and selling one stock with speculative interest behind their purchases? Well…remember, the forex market is not singular, it’s traded in pairs, which complicates the whole situation a lot more, and therefore makes it a lot more difficult to approach it systematically. In fact it’s even a lot more complicated than having two pairs. Let’s say you are a stock trader, you did some analysis, and it looks like the company is doing very well, you looked at some charts, and you see that the stock is at a major support level technically, so you think that nobody in their right mind is going to short this stock when the stock market opens tomorrow, so you wake up tomorrow, you buy that stock, you put your stop/loss below that support level, and indeed the stock goes up, and you make money.
Let’s now say you are a very smart and advanced forex trader, you do your analysis, you see that the UK economy has been doing well, and the U.S. economy has been doing poorly. You see that the GBP/USD is relatively low and it is at a major support level, and you feel that nobody in their right mind will short the GBP/USD now. So you go long on GBP/USD, you put your stop/loss below the support level, and you think you have a sound trade. After all, this is very strong support, and nobody in their right mind will short the GBP/USD right now. So a couple of hours go by, and all of a sudden you see that the GBP/USD went down below the support level, took your stop/loss out, and you lost money. You scratch your head, and you are wondering what happened. Well…what happened was Retail Sales came out very weak out of Australia, so bank traders and other speculative traders in Australia decided to sell some Australian dollars, but of course because they sold Australian dollars, they had to buy something else, so they bought U.S. dollars, they bought some Japanese Yen, and they bought some Euros, and because forex market is moved by supply and demand, since the U.S. dollars were being bought, GBP/USD went down in exchange, towards US dollar strength. So you think that support level should’ve held, while in reality those Aussie traders weren’t even looking at the GBP/USD, they just did what they had to do, and the price reacted, without paying any respect to the UK versus US fundamentals, and especially some technical levels. Remember, nobody cares about technical levels, but people, and with such complicated interrelation in the forex market, most technical patterns have either absolutely no merit, or very little merit.
Let’s now say you are a very smart and advanced forex trader, you do your analysis, you see that the UK economy has been doing well, and the U.S. economy has been doing poorly. You see that the GBP/USD is relatively low and it is at a major support level, and you feel that nobody in their right mind will short the GBP/USD now. So you go long on GBP/USD, you put your stop/loss below the support level, and you think you have a sound trade. After all, this is very strong support, and nobody in their right mind will short the GBP/USD right now. So a couple of hours go by, and all of a sudden you see that the GBP/USD went down below the support level, took your stop/loss out, and you lost money. You scratch your head, and you are wondering what happened. Well…what happened was Retail Sales came out very weak out of Australia, so bank traders and other speculative traders in Australia decided to sell some Australian dollars, but of course because they sold Australian dollars, they had to buy something else, so they bought U.S. dollars, they bought some Japanese Yen, and they bought some Euros, and because forex market is moved by supply and demand, since the U.S. dollars were being bought, GBP/USD went down in exchange, towards US dollar strength. So you think that support level should’ve held, while in reality those Aussie traders weren’t even looking at the GBP/USD, they just did what they had to do, and the price reacted, without paying any respect to the UK versus US fundamentals, and especially some technical levels. Remember, nobody cares about technical levels, but people, and with such complicated interrelation in the forex market, most technical patterns have either absolutely no merit, or very little merit.
TALKING ONLINE BUSINESS VIII
Part 10 (The Essence-Forex Is Not Speculative)Let’s first talk about the first concept here, the concept that a lot of volume in the forex market is not speculative. Remember, pretty much everybody buys a specific stock, because they want to sell it when it goes up, and make a profit, based on that transaction. Because of that, there is a human psychological pattern of speculative buying and speculative selling, and since human mind is relatively systematic, it makes some sense to have a technical trading system, based on some behavioral patterns, in order to trade the stock market, but what about forex? Let’s say you are a multi-national corporation, such as BMW, and you keep most of your money in Euros, but you must make a payroll to some employees in the United States, and you don’t have enough dollars for that. Let’s say you need to transfer 1 billion Euros into Dollars, so you hire Credit Suisse to do it. Since forex market is moved by supply and demand, do you think the price of EUR/USD may get affected as 1 billion Euros is being sold, and 1 billion dollars being bought? Of course it would, not on a large scale, but on an intraday scale. Do you think Credit Suisse is going to care much about technical levels when selling those Euros and buying US dollars? I don’t think so…
Or let’s say you are a big firm in Holland, and you manufacture cheese. You own a bunch of cows, equipment, you have employees in Holland, and you have to pay all your expenses in Euros. Let’s say, you sell 50% of your cheese to other Euro Zone countries, and you sell the other 50% of your cheese to the United States. So you pay your expenses in Euros, and you take 50% of your revenues in U.S. dollars, which you later have to exchange into Euros again. Let’s say over one year period, the U.S. dollar decreased 20% against the Euro, so in comparison, because you had to pay your expenses in Euros, and sell half of your cheese in dollars, and you couldn’t raise the price, because you wanted to stay competitive with the U.S. cheese manufacturers, but you just lost 10% of your profits, because of that exchange rate… So next year, you get smarter, you decide to hedge against a possible decrease of the US dollar, so you hedge by buying EUR/USD. Do you really care much about whether EUR/USD is going to go up or down? No, you don’t. You simply protect your business, in case the dollar plummets further, you will make money on your exchange, and that way will protect your business from losing a lot, in case the exchange rate of Euro versus Dollar goes up.
Or how about a large corporation in the United States, buying another large corporation in Europe? They are going to have to sell their U.S. dollars, in order to buy Euros, so that they could buy that corporation. Do you think that will affect the price of the EUR/USD intraday? Sure it will, because it moves by supply and demand. But how are you going to predict such activities via a pattern of technical analysis, while the currencies are being sold sporadically, with almost no speculative interest? All of a sudden a large chunk of technical analysis that’s used in the stock market, stops making sense, if you think about it deep enough. So if somebody is trying to buy or sell currencies, based on chart patterns such as head and shoulders, they are basically doomed, because such trading method has no more logical merit, like it used to have in the stock market. So the person, can study for years these patterns, and spend tens of thousands of hours trading, and he’ll probably never get anywhere, he won’t have a reliable forex trading system, the only thing that will keep his hope is the wonderful 50/50 probability that exists in any market, which gets to more like 48/52, with the brokers' spread and commission. So that person might as well go to Las Vegas and use his chart patterns to play blackjack. At least he’ll get free room and food if he gambles enough.
Or let’s say you are a big firm in Holland, and you manufacture cheese. You own a bunch of cows, equipment, you have employees in Holland, and you have to pay all your expenses in Euros. Let’s say, you sell 50% of your cheese to other Euro Zone countries, and you sell the other 50% of your cheese to the United States. So you pay your expenses in Euros, and you take 50% of your revenues in U.S. dollars, which you later have to exchange into Euros again. Let’s say over one year period, the U.S. dollar decreased 20% against the Euro, so in comparison, because you had to pay your expenses in Euros, and sell half of your cheese in dollars, and you couldn’t raise the price, because you wanted to stay competitive with the U.S. cheese manufacturers, but you just lost 10% of your profits, because of that exchange rate… So next year, you get smarter, you decide to hedge against a possible decrease of the US dollar, so you hedge by buying EUR/USD. Do you really care much about whether EUR/USD is going to go up or down? No, you don’t. You simply protect your business, in case the dollar plummets further, you will make money on your exchange, and that way will protect your business from losing a lot, in case the exchange rate of Euro versus Dollar goes up.
Or how about a large corporation in the United States, buying another large corporation in Europe? They are going to have to sell their U.S. dollars, in order to buy Euros, so that they could buy that corporation. Do you think that will affect the price of the EUR/USD intraday? Sure it will, because it moves by supply and demand. But how are you going to predict such activities via a pattern of technical analysis, while the currencies are being sold sporadically, with almost no speculative interest? All of a sudden a large chunk of technical analysis that’s used in the stock market, stops making sense, if you think about it deep enough. So if somebody is trying to buy or sell currencies, based on chart patterns such as head and shoulders, they are basically doomed, because such trading method has no more logical merit, like it used to have in the stock market. So the person, can study for years these patterns, and spend tens of thousands of hours trading, and he’ll probably never get anywhere, he won’t have a reliable forex trading system, the only thing that will keep his hope is the wonderful 50/50 probability that exists in any market, which gets to more like 48/52, with the brokers' spread and commission. So that person might as well go to Las Vegas and use his chart patterns to play blackjack. At least he’ll get free room and food if he gambles enough.
TALKING ONLINE BUSINESS VII
Part 9 (The Essence-Forex versus Other Instruments)When I first started trading forex, I was told that 90% of all retail forex traders lose money in this business. After several years of trading forex, after associating with many brokers, and after receiving tens of thousands of emails from forex traders, I realized that 90% is wrong statistical number. It’s actually more like 98.8% of all retail forex traders eventually leave this business having less money than what they initially started with. Yes, in my experience, about 12 out of every 1,000 people that open an account with a forex broker will actually eventually leave that broker with a profit. And 12 out of 1,000 is probably still on the best case scenario side.
I am one of the lucky few that have been able to consistently extract money from the forex market, and I strongly believe that the biggest reason people are not successful in making money in forex is of course like in any business, it’s lack of persistency, but more than anything it’s because most forex traders focus on the wrong methods to be a profitable forex trader. If you are unlucky enough to focus on the wrong thing in forex, you will never be successful, period.
My mission with this article is to do these two things:
1. First of all, I want to briefly cover and explain the very core of how the forex market works, and what forces are behind its movement. Wouldn’t you think that before being able to profit from forex market movements, you better first know what moves it?
2. Second of all, I want to provide you with a very core and solid foundation of how I think in order to be able to consistently profit from this market, and provide you with my forex trading system that you can also use to consistently profit from this market, and I hope that you will be willing to stick to the trading system that I will share with you, in order to become proficient with it, and in order to be able to consistently make money in this crazy forex world.
Section 1What really moves the forex market?
First thing that’s very important to realize in my opinion is that forex is not like a stock market. It’s not like options. It’s not like commodities. All those other markets have only one component. Let’s say you have a powerful stock trading system, and you think that Microsoft stock will go up, and you buy that stock, and it does go up, so you made some money, that’s great. Now, let’s say you think that Great British Pound will go up in forex, and you buy GBP/USD. Does that mean that you will make money? Not necessarily! You may actually have a large loss, instead of having a profit! How could that be you may ask? Very important thing to remember that forex is traded in pairs, so even if you are right that the pound is going to be strong, but what if U.S. dollar is stronger? GBP/USD will actually go down! This is a very simple principle, and I think most people know this principle, but very few actually think about it. This realization is crucial, in order to have a powerful forex trading system. Just imagine that you feel that Microsoft stock will go up, and you call your stock broker, and you ask them to buy you 1,000 shares, and your stock broker will ask you: “Well, sir, in order to buy Microsoft stock, you must first go short on some other stock…” It would be a bit more difficult to make money in the stock market if with buying a stock, you had to short another stock, wouldn’t it? You may be very right about the direction of a particular stock, but if the other stock that you shorted actually performed better than your original pick, you would pretty much be screwed.
You may wonder about why I started talking about the stock market here, while I am supposed to talk about forex. After all, I am supposed to teach you how to build a profitable forex trading system, not stock trading system. Well…just hold on. Stock market is actually a very important subject here.
When people think in terms of building powerful trading systems, they tend to think first about something called technical analysis, which basically means making trading decisions, based on charts and price action. The question is whether technical analysis is a good avenue to focus on, in order to build a forex trading system. First of all, technical analysis is a very broad term, and making a statement whether technical analysis is good or bad for trading forex would be too much of a generalization. But before we get too deep into it, let’s first analyze the nature of technical analysis, how it was born et cetera.
I think most people know that most techniques with technical analysis were born in order to trade the stock market. After all, the stock market is singular, meaning that you just have to worry about one instrument at a time, and since it’s mostly moved by people’s greed and fear, and most people that trade stocks professionally know technical patterns very well, it’s obvious that a lot of technical setups work in the stock market. Just imagine that there is something that’s called, “head and shoulders” pattern forming, and you have all these traders who see this pattern, so they decide to either take profits, or take speculative positions based on that pattern, so of course by the law of supply & demand, the pattern may actually move a particular stock. So basically, let’s move away a little bit from the stock market. I just wanted to mention it, because I wanted you to understand that stock market is a singular, fully speculative market, where speculative greed and fear move the price, so most of technical analysis tools known today were born to analyze speculative greed and fear in a market with singular instruments. I would like to emphasize some keywords in what I just said. The keywords are speculative and singular.
Let’s now talk about the forex market. The forex market is also being moved by supply and demand, like the stock market, but the very big distinction here is that a lot of forex volume is not speculative, and forex is not a singular market. Let’s together take a look at these distinctions, and try to understand fully what they mean, and how will they affect not only technical analysis trading, but trading the forex market in general.
I am one of the lucky few that have been able to consistently extract money from the forex market, and I strongly believe that the biggest reason people are not successful in making money in forex is of course like in any business, it’s lack of persistency, but more than anything it’s because most forex traders focus on the wrong methods to be a profitable forex trader. If you are unlucky enough to focus on the wrong thing in forex, you will never be successful, period.
My mission with this article is to do these two things:
1. First of all, I want to briefly cover and explain the very core of how the forex market works, and what forces are behind its movement. Wouldn’t you think that before being able to profit from forex market movements, you better first know what moves it?
2. Second of all, I want to provide you with a very core and solid foundation of how I think in order to be able to consistently profit from this market, and provide you with my forex trading system that you can also use to consistently profit from this market, and I hope that you will be willing to stick to the trading system that I will share with you, in order to become proficient with it, and in order to be able to consistently make money in this crazy forex world.
Section 1What really moves the forex market?
First thing that’s very important to realize in my opinion is that forex is not like a stock market. It’s not like options. It’s not like commodities. All those other markets have only one component. Let’s say you have a powerful stock trading system, and you think that Microsoft stock will go up, and you buy that stock, and it does go up, so you made some money, that’s great. Now, let’s say you think that Great British Pound will go up in forex, and you buy GBP/USD. Does that mean that you will make money? Not necessarily! You may actually have a large loss, instead of having a profit! How could that be you may ask? Very important thing to remember that forex is traded in pairs, so even if you are right that the pound is going to be strong, but what if U.S. dollar is stronger? GBP/USD will actually go down! This is a very simple principle, and I think most people know this principle, but very few actually think about it. This realization is crucial, in order to have a powerful forex trading system. Just imagine that you feel that Microsoft stock will go up, and you call your stock broker, and you ask them to buy you 1,000 shares, and your stock broker will ask you: “Well, sir, in order to buy Microsoft stock, you must first go short on some other stock…” It would be a bit more difficult to make money in the stock market if with buying a stock, you had to short another stock, wouldn’t it? You may be very right about the direction of a particular stock, but if the other stock that you shorted actually performed better than your original pick, you would pretty much be screwed.
You may wonder about why I started talking about the stock market here, while I am supposed to talk about forex. After all, I am supposed to teach you how to build a profitable forex trading system, not stock trading system. Well…just hold on. Stock market is actually a very important subject here.
When people think in terms of building powerful trading systems, they tend to think first about something called technical analysis, which basically means making trading decisions, based on charts and price action. The question is whether technical analysis is a good avenue to focus on, in order to build a forex trading system. First of all, technical analysis is a very broad term, and making a statement whether technical analysis is good or bad for trading forex would be too much of a generalization. But before we get too deep into it, let’s first analyze the nature of technical analysis, how it was born et cetera.
I think most people know that most techniques with technical analysis were born in order to trade the stock market. After all, the stock market is singular, meaning that you just have to worry about one instrument at a time, and since it’s mostly moved by people’s greed and fear, and most people that trade stocks professionally know technical patterns very well, it’s obvious that a lot of technical setups work in the stock market. Just imagine that there is something that’s called, “head and shoulders” pattern forming, and you have all these traders who see this pattern, so they decide to either take profits, or take speculative positions based on that pattern, so of course by the law of supply & demand, the pattern may actually move a particular stock. So basically, let’s move away a little bit from the stock market. I just wanted to mention it, because I wanted you to understand that stock market is a singular, fully speculative market, where speculative greed and fear move the price, so most of technical analysis tools known today were born to analyze speculative greed and fear in a market with singular instruments. I would like to emphasize some keywords in what I just said. The keywords are speculative and singular.
Let’s now talk about the forex market. The forex market is also being moved by supply and demand, like the stock market, but the very big distinction here is that a lot of forex volume is not speculative, and forex is not a singular market. Let’s together take a look at these distinctions, and try to understand fully what they mean, and how will they affect not only technical analysis trading, but trading the forex market in general.
TALKING ONLINE BUSINESS VI
Part 8 (Forex Logical Filters-Extreme Necessity)Okay, finally, after so many words and sentences, we are just starting to approach forex and my forex trading system. Let’s now discuss it.
So I hope you kind of understood my core approach to business in general. I am a very grounded and a very straight forward person when it comes to business. I figured I was always buying low, and selling high. Whether those were tennis rackets, whether those were watches, whether those were boxing gloves, whether those were houses, the principles behind my businesses were always the same; buy low, sell high. I figured that if I could learn how to do it on ebay, if I could learn how to sell to stores, or on trade shows, if I could learn how to buy houses cheap, and resell them for more money, I could also learn how to buy currencies cheap and resell them for more money, except I didn’t have to keep any inventory, I didn’t have to go out and drive to far and sometimes dangerous places, I could have unlimited leverage with my actions. If only I knew how to make money with small lots, I could keep doing the same thing, and simply increase my lot sizes, and by doing that make even more money.
When I wanted to do real estate business, I got hooked up with sophisticated real estate investors, I read some real estate books, and they taught me several systems of how to do this business that made perfect sense to me. Everything was clear, everything was logical, the only thing that was required of me was to firstly donate 10% of my income as I mentioned earlier, also to be persistent, to be determined, and to act, act, act on that knowledge, and success in that business would be inevitable. And of course I did just that, and success followed.
When I got into the forex business, things became a little bit different and a little bit more difficult. Mostly because it seemed like nobody knew what a heck they were doing. I would read a book of a seemingly sophisticated and educated adult person, wearing a suit, and wearing glasses, who claimed to teach you how to make money in forex, but when I started reading the book, all I would get is a bunch of pictures of chart patterns and lines crossing. No matter how hard I tried, and I tried hard, I couldn’t understand the logic behind it… I figured perhaps I was a little bit too dumb for these things. Or I would read a book about forex fundamentals, and it would explain what this indicator meant or what the other indicator meant, but it provided no actionable plan or system. There seemed to be way over 500 different economic indicators that come out every month out of 7 major countries, and if you read some of the books, it seems like every single one of them is equally important, yet the market doesn’t react to most of them. I would try to talk to some of these educators, and I would try to find out the logic behind their technical analysis techniques. Nobody seems to understand the logic of how and why does it work, and where is the logic of those indicators when it comes to actually making money, yet everybody swears by them. I remember somebody tried to teach me to use Fibonacci retracements in forex, and they had these exact levels for each retracement. They had the 38.2% retracement, they had the 50% retracement, they had the 61.8% retracement, they had the 78.6% retracement, they had the 100% retracement. So they would show these pictures, and they would tell me…look here is a 38.2% retracement, you see how it bounced off of it? And me being the logical and the exacting person, I would say, well actually, it’s a 41.3% retracement, and they would say, come on, don’t be so exacting, it was close enough. Or they would say, look! Here is a 50% retracement, and I would look, carefully calculate, and say, no it’s actually 56.5% retracement, and they would say, come on, it’s close enough. Or they would say, the candle wick was actually a 56.5% retracement, but the bottom of the candle body was a 50% retracement. After talking to some of these fibo fanatics, I realized for myself that if you throw enough shit up in the air, one of it will stick. They have identified a fibo retracement possibility every 20 pips, then in addition to that, they tell you to give or take 5 to 10 pips from those retracements, so at the end of the day, these fibo retracements is like drawing lines on your graph 10 pips apart…of course the price will bounce off of one of them, especially if you give or take another 2 or 3 pips.
Now most people have fibo retracements 20 pips apart, then they have pivot points 20 pips apart, then they have exponential moving averages, simple moving averages, MACD, stochastics, and at the end of the day none of them can explain to you logic behind any of it, except to show you some back-tested system that will stop working tomorrow, or tell you to trust their experience, and the thousands of dollars that they lost. And just like slot machine gamblers in Las Vegas, they all have that story of how they put in $1, and won $1,000, and left Las Vegas with a profit, but if you ask them a simple question, and if they are honest enough to answer it, most of them will tell you that overall they lost money, a lot of money… And the only ones that made some do admit that they also closely followed the overall fundamental picture. I honestly have a strong belief and even a generalization that all technical analysis tools in forex on its own are as useless as tits to a boar, and they can only be used as convenient ways of displaying price and information, and I think they should only be used if you can explain to yourself the formulas behind them, and relate them to some kind of core trading logic. Otherwise, they just become obstacles when making proper trading decisions. And believe me, I love charts. I think charts are very important, because they display recent price activity, which is very important. But I think one is better off just looking at pure charts, and price action, without clouding it with any indicators.
After placing thousands of trades in forex, after reading tons of articles, books, and after talking to profitable, unprofitable, knowledgeable, and not-knowledgeable traders, I have put a lot of information through my very straight forward, business-brain filters, and here is what I came up…
So I hope you kind of understood my core approach to business in general. I am a very grounded and a very straight forward person when it comes to business. I figured I was always buying low, and selling high. Whether those were tennis rackets, whether those were watches, whether those were boxing gloves, whether those were houses, the principles behind my businesses were always the same; buy low, sell high. I figured that if I could learn how to do it on ebay, if I could learn how to sell to stores, or on trade shows, if I could learn how to buy houses cheap, and resell them for more money, I could also learn how to buy currencies cheap and resell them for more money, except I didn’t have to keep any inventory, I didn’t have to go out and drive to far and sometimes dangerous places, I could have unlimited leverage with my actions. If only I knew how to make money with small lots, I could keep doing the same thing, and simply increase my lot sizes, and by doing that make even more money.
When I wanted to do real estate business, I got hooked up with sophisticated real estate investors, I read some real estate books, and they taught me several systems of how to do this business that made perfect sense to me. Everything was clear, everything was logical, the only thing that was required of me was to firstly donate 10% of my income as I mentioned earlier, also to be persistent, to be determined, and to act, act, act on that knowledge, and success in that business would be inevitable. And of course I did just that, and success followed.
When I got into the forex business, things became a little bit different and a little bit more difficult. Mostly because it seemed like nobody knew what a heck they were doing. I would read a book of a seemingly sophisticated and educated adult person, wearing a suit, and wearing glasses, who claimed to teach you how to make money in forex, but when I started reading the book, all I would get is a bunch of pictures of chart patterns and lines crossing. No matter how hard I tried, and I tried hard, I couldn’t understand the logic behind it… I figured perhaps I was a little bit too dumb for these things. Or I would read a book about forex fundamentals, and it would explain what this indicator meant or what the other indicator meant, but it provided no actionable plan or system. There seemed to be way over 500 different economic indicators that come out every month out of 7 major countries, and if you read some of the books, it seems like every single one of them is equally important, yet the market doesn’t react to most of them. I would try to talk to some of these educators, and I would try to find out the logic behind their technical analysis techniques. Nobody seems to understand the logic of how and why does it work, and where is the logic of those indicators when it comes to actually making money, yet everybody swears by them. I remember somebody tried to teach me to use Fibonacci retracements in forex, and they had these exact levels for each retracement. They had the 38.2% retracement, they had the 50% retracement, they had the 61.8% retracement, they had the 78.6% retracement, they had the 100% retracement. So they would show these pictures, and they would tell me…look here is a 38.2% retracement, you see how it bounced off of it? And me being the logical and the exacting person, I would say, well actually, it’s a 41.3% retracement, and they would say, come on, don’t be so exacting, it was close enough. Or they would say, look! Here is a 50% retracement, and I would look, carefully calculate, and say, no it’s actually 56.5% retracement, and they would say, come on, it’s close enough. Or they would say, the candle wick was actually a 56.5% retracement, but the bottom of the candle body was a 50% retracement. After talking to some of these fibo fanatics, I realized for myself that if you throw enough shit up in the air, one of it will stick. They have identified a fibo retracement possibility every 20 pips, then in addition to that, they tell you to give or take 5 to 10 pips from those retracements, so at the end of the day, these fibo retracements is like drawing lines on your graph 10 pips apart…of course the price will bounce off of one of them, especially if you give or take another 2 or 3 pips.
Now most people have fibo retracements 20 pips apart, then they have pivot points 20 pips apart, then they have exponential moving averages, simple moving averages, MACD, stochastics, and at the end of the day none of them can explain to you logic behind any of it, except to show you some back-tested system that will stop working tomorrow, or tell you to trust their experience, and the thousands of dollars that they lost. And just like slot machine gamblers in Las Vegas, they all have that story of how they put in $1, and won $1,000, and left Las Vegas with a profit, but if you ask them a simple question, and if they are honest enough to answer it, most of them will tell you that overall they lost money, a lot of money… And the only ones that made some do admit that they also closely followed the overall fundamental picture. I honestly have a strong belief and even a generalization that all technical analysis tools in forex on its own are as useless as tits to a boar, and they can only be used as convenient ways of displaying price and information, and I think they should only be used if you can explain to yourself the formulas behind them, and relate them to some kind of core trading logic. Otherwise, they just become obstacles when making proper trading decisions. And believe me, I love charts. I think charts are very important, because they display recent price activity, which is very important. But I think one is better off just looking at pure charts, and price action, without clouding it with any indicators.
After placing thousands of trades in forex, after reading tons of articles, books, and after talking to profitable, unprofitable, knowledgeable, and not-knowledgeable traders, I have put a lot of information through my very straight forward, business-brain filters, and here is what I came up…
TALKING ONLINE BUSINESS V
Part 7 (Systems Meet Awareness)Before I proceed to my trading strategy and my trading philosophy, let me briefly talk to you about one of the processes I used in my real estate business, when I was buying foreclosed properties in Southern California. There are several other businesses that I’ve done on a large scale in my life, but this is the last one I am going to bore you with. After all, you didn’t come here to read about my glorious achievements in business. You came here to learn how to make money in forex, and you came here to read about the forex trading system that I use for making money in forex. But as we approach the core part of this article, I really want you to understand the practical approach I’ve always had to other businesses, so that you could appreciate my current practical approach I apply to forex.
I think out of all the businesses that I’ve ever done, my real estate business resembles my current forex business the most. The idea with my real estate business was to find properties, where the property owners could no longer keep up with their mortgage payments, and the idea was to approach those property owners, give them some cash, get them out of bad situation, and acquire the property at a major discount. The process for that was very simple. The regular process that happens in California is that whenever a loan is behind by several payments, the bank issues something called Notice of Default to the owner, with the exact amount owed to the bank for back payments, plus interest. After such notice of default, the owner has 90 days to bring his property current, and if he doesn’t, the bank usually schedules something called a trustee sale, and the property is sold at an auction, where the bank collects all the money owed to them, and the owner is left with any overbid left from that. The notices of default and the trustee sales notices are free public information, and are issued by the local county. I personally was subscribing to http://www.countyrecordsresearch.com/, where I was conveniently getting those fresh notices every single day, with a lot of other useful information, such as loan amount owed against the property, and other property details. When I first started doing this business, it was very tough, because I was focusing on 4 different counties in Southern California. I didn’t know what was what, I had to constantly pull comps, also known as comparable sales, in order to find out how much each property was worth, then I would go and try to talk to these owners, and I would stumble, and be stupid. Then as time progressed, I learned, and it became more and more natural. I started focusing on properties in only two smaller neighboring counties, and I came to a point, that I could take any notice of default, see the street, city, size of house, year built, number of rooms, and I would be able to name the value within $25,000. Then I would look at the loan amounts, see if there is enough equity left in the house, and I would make a decision whether it’s worth going after, then I would pick my top picks, create a map of 20 different properties to visit, drive up there, and start talking to people. Even though every property situation was different, and had to be handled differently, I still had a system that I was following. I obviously naturally developed certain proposals and responses to common replies, but still each situation was different. Then the more I did it, the more intuitive I became as I was going through leads. Based on the house parameters, and the neighborhood, and the equity, I could somehow feel whether it could be a worthy drive or not. With my own experience and help of my partners, I developed certain nuances, like if I saw an Asian last name as the owner, I would skip the property automatically, because from my experience and the 20+ years experience of some of my partners, we came to a conclusion that it was pretty much impossible to get a good deal from an Asian person. They are just too smart and too educated, and most importantly not lazy. They seemed to always find a way to get out of a bad situation with the best outcome for themselves, while squeezing everything out of the property, and I say that as a compliment. Then there were other types of names that were much bigger possibilities for a great deal, especially certain names in certain neighborhoods, and I don’t want to mention them, because I don’t want to sound racist. I remember I was looking at one property that I had a good intuitive feeling about. It was worth $175,000, and it had an outstanding loan of only $47,000 that was in default. The property was in a hard to find location of some neighborhood with a lot of drugs, so I intuitively knew that other investors probably wouldn’t try to go after that property, so I went after it, and I was right. Apparently the owner of that property lived in another state, she rented the place to some friends who later got hooked on drugs, so now they were ruining her property, and weren’t paying her rent. All I had to do was locate that owner. I made one phone call, and I asked how much she wanted for the property, and she answered: “All I want is $70,000, and I know I am giving it away very cheap, but I am just too sick dealing with it, please take it.” So we gave her $23,000 cash, decided to bring the loan current, and basically after some hassle were looking to make close to $100,000 net for the property. It was unpleasant, trying to kick those druggies out, but for $100 grand, I’ll do it. That’s just one example, and between myself and my partners, I have dozens of such examples. But the point I am trying to make here is that I had a systematic approach of approaching this foreclosure business, even though each situation was unique and pretty much completely different. And another very important point is that I wasn’t buying every property I was knocking on. In order for me to find one candidate, I had to go thoroughly, and I mean thoroughly, through around 50 properties. And when I mean thoroughly, I mean if the property was empty, I had to do deep research to find out what’s up with it, and perhaps it had an owner that just died, so I had to find heirs, and buy their rights to the property for a lot cheaper than it was worth. Most of those heirs are lazy, so they are happy to give up whatever is not even theirs in the first place for very little. I remember, my partner actually acquired several houses worth around $2 million, for only around $200,000. The owner was a father who died, his sons hated him, because he was gay, one son was in prison, the other was on drugs, my partner approached them, explained the situation, asked them how much they wanted, and they just wanted a hundred grand each. Go figure…and real estate is full of such opportunities.
So what are the biggest lessons in this real estate story? The lessons are that I had a systematic approach, I was actually doing it, and acquiring a lot of experience, as I acquired more experience it became more intuitive and more natural. Each situation required unique approach, so each situation required very deep state of awareness, which was acquired through systematic and regular approach which built experience. Sometimes the situations may have been similar, but always unique, and the more I was doing it, the more I understood how to handle each situation. I had to go through a lot of research and a lot of leads, and spend a lot of time before actually pulling the trigger and actually buying something. I was looking for cream of the crop opportunities. I think you are already starting to understand where I am going with this, and how I am going to relate it to forex and my forex trading system. Forex trading system simply can't be mechanical. It has to combine mechanical processes with general awareness and experience, and quality of a trade is a lot more important than quantity.
I think out of all the businesses that I’ve ever done, my real estate business resembles my current forex business the most. The idea with my real estate business was to find properties, where the property owners could no longer keep up with their mortgage payments, and the idea was to approach those property owners, give them some cash, get them out of bad situation, and acquire the property at a major discount. The process for that was very simple. The regular process that happens in California is that whenever a loan is behind by several payments, the bank issues something called Notice of Default to the owner, with the exact amount owed to the bank for back payments, plus interest. After such notice of default, the owner has 90 days to bring his property current, and if he doesn’t, the bank usually schedules something called a trustee sale, and the property is sold at an auction, where the bank collects all the money owed to them, and the owner is left with any overbid left from that. The notices of default and the trustee sales notices are free public information, and are issued by the local county. I personally was subscribing to http://www.countyrecordsresearch.com/, where I was conveniently getting those fresh notices every single day, with a lot of other useful information, such as loan amount owed against the property, and other property details. When I first started doing this business, it was very tough, because I was focusing on 4 different counties in Southern California. I didn’t know what was what, I had to constantly pull comps, also known as comparable sales, in order to find out how much each property was worth, then I would go and try to talk to these owners, and I would stumble, and be stupid. Then as time progressed, I learned, and it became more and more natural. I started focusing on properties in only two smaller neighboring counties, and I came to a point, that I could take any notice of default, see the street, city, size of house, year built, number of rooms, and I would be able to name the value within $25,000. Then I would look at the loan amounts, see if there is enough equity left in the house, and I would make a decision whether it’s worth going after, then I would pick my top picks, create a map of 20 different properties to visit, drive up there, and start talking to people. Even though every property situation was different, and had to be handled differently, I still had a system that I was following. I obviously naturally developed certain proposals and responses to common replies, but still each situation was different. Then the more I did it, the more intuitive I became as I was going through leads. Based on the house parameters, and the neighborhood, and the equity, I could somehow feel whether it could be a worthy drive or not. With my own experience and help of my partners, I developed certain nuances, like if I saw an Asian last name as the owner, I would skip the property automatically, because from my experience and the 20+ years experience of some of my partners, we came to a conclusion that it was pretty much impossible to get a good deal from an Asian person. They are just too smart and too educated, and most importantly not lazy. They seemed to always find a way to get out of a bad situation with the best outcome for themselves, while squeezing everything out of the property, and I say that as a compliment. Then there were other types of names that were much bigger possibilities for a great deal, especially certain names in certain neighborhoods, and I don’t want to mention them, because I don’t want to sound racist. I remember I was looking at one property that I had a good intuitive feeling about. It was worth $175,000, and it had an outstanding loan of only $47,000 that was in default. The property was in a hard to find location of some neighborhood with a lot of drugs, so I intuitively knew that other investors probably wouldn’t try to go after that property, so I went after it, and I was right. Apparently the owner of that property lived in another state, she rented the place to some friends who later got hooked on drugs, so now they were ruining her property, and weren’t paying her rent. All I had to do was locate that owner. I made one phone call, and I asked how much she wanted for the property, and she answered: “All I want is $70,000, and I know I am giving it away very cheap, but I am just too sick dealing with it, please take it.” So we gave her $23,000 cash, decided to bring the loan current, and basically after some hassle were looking to make close to $100,000 net for the property. It was unpleasant, trying to kick those druggies out, but for $100 grand, I’ll do it. That’s just one example, and between myself and my partners, I have dozens of such examples. But the point I am trying to make here is that I had a systematic approach of approaching this foreclosure business, even though each situation was unique and pretty much completely different. And another very important point is that I wasn’t buying every property I was knocking on. In order for me to find one candidate, I had to go thoroughly, and I mean thoroughly, through around 50 properties. And when I mean thoroughly, I mean if the property was empty, I had to do deep research to find out what’s up with it, and perhaps it had an owner that just died, so I had to find heirs, and buy their rights to the property for a lot cheaper than it was worth. Most of those heirs are lazy, so they are happy to give up whatever is not even theirs in the first place for very little. I remember, my partner actually acquired several houses worth around $2 million, for only around $200,000. The owner was a father who died, his sons hated him, because he was gay, one son was in prison, the other was on drugs, my partner approached them, explained the situation, asked them how much they wanted, and they just wanted a hundred grand each. Go figure…and real estate is full of such opportunities.
So what are the biggest lessons in this real estate story? The lessons are that I had a systematic approach, I was actually doing it, and acquiring a lot of experience, as I acquired more experience it became more intuitive and more natural. Each situation required unique approach, so each situation required very deep state of awareness, which was acquired through systematic and regular approach which built experience. Sometimes the situations may have been similar, but always unique, and the more I was doing it, the more I understood how to handle each situation. I had to go through a lot of research and a lot of leads, and spend a lot of time before actually pulling the trigger and actually buying something. I was looking for cream of the crop opportunities. I think you are already starting to understand where I am going with this, and how I am going to relate it to forex and my forex trading system. Forex trading system simply can't be mechanical. It has to combine mechanical processes with general awareness and experience, and quality of a trade is a lot more important than quantity.
TALKING ONLINE BUSINESS IV
Part 6 (Do This and Forex Success Will Follow)In 2002, when I was 20 years old, I went to a consulate to open Visa to Canada, and I saw a monk sitting in that waiting hall. He was shaved, wearing robes. I was very curious, as I’ve never seen a live monk before, so I sat next to him, and started asking him questions, basically trying to find out the reason to his madness. He explained to me that he was traveling around the world with his master, basically some other big and famous monk. But his master had Cancer, and this monk was a healer, so he was traveling around with his master, basically prolonging his master’s life as long as he could. I offered this monk a ride, and went to his temple. We met several times after, and he introduced me to some very interesting people, one of whom became my teacher. The guy who became my teacher was amazing. He was extremely wealthy, owning several large factories in his country. On the other hand he had a very deep spiritual side about him. He was a famous healer, and I’ve seen this guy and his students, perform miracles. I’ve seen and personally participated in cases of AIDS and Parkinson’s permanently healed with medical tests before and after, proving it, but I am not even going to go there, because I’ve gotten into enough trouble over that, and most people won’t believe me anyway. We are talking about forex here, but the reason I brought up this story is very important. I was lucky enough to be a business partner of this teacher for a year, and he drilled into me something that completely transformed my financial life. He taught me to tithe, or donate at least 10% of my income regularly. You see, it seems like from my story before, I was making a lot of money with whatever I was doing, and I was, but somehow I could never keep much of it. Somehow I would make bad decisions and lose some of it, other times I would get screwed out of large sums by other people, other times I would go through some dry periods, where I wouldn’t make much, and simply spend what I had.
My teacher basically taught me that the most important thing in life if you want to generate wealth, is to donate at least 10% of your income regularly, and the keyword here is regularly. So being kind of dumb and naïve as I was, I just did what I was told to do, and I still do it. Since the day I started donating regularly, my income has been growing exponentially, and I’ve accumulated large sums of money. I’ve experimented with donating as much as 30%, and I went through periods of donating absolutely nothing. Life becomes much tougher and a lot more problematic, when I stop donating. Yet, when I start donating as much as 30% of my income, a lot more opportunities come than I can handle, and to be honest, I think I am not saintly enough to be able to donate 30%. No matter how much I believe in this principle, it just seems like too much, and I can’t full heartedly give away that much yet, but 10% seems very natural to me now. And I can’t even tell you enough about the emotional rewards that come along with it.
You may think that this is some kind of woodoo, bullshit belief about 10% donating, but it’s really not. I can tell you from my experience, and I can tell you from experiences of some very wealthy people that I know, unless you practice tithing, or donating 10%, life is a lot more difficult, making money is a lot more difficult, and keeping and accumulating money is a lot more difficult. All you have to do is try it for at least 6 months, and then stop doing it for 6 months, and you will see huge difference. Donating 10% is like a magic trick of attracting financial ease and luck into your life. I encourage you to go online, and start reading profiles and personal philosophies of very wealthy people. I encourage you to go to bookstores, and read biographies of very wealthy people, and you will find this 10% donating principle present in almost all of them. Even a seemingly mean and unpopular schmuck such as Donald Trump practices this principle. I love Donald Trump by the way, if you study him deeper, you will realize that he is actually an amazing and very philanthropic guy. Most of his contributions are secret though. I believe that donating at least 10% of your trading profits is the number one principle to your forex success. If you do it, you will attract the right sources of information at the right time, to help you make proper trading decisions. You will actually get lucky on some of your trades. Your instincts will become sharper. Sometimes it seems like all the ducks are lined up for a trade, but something tells you to either close it, or not enter it. Of course 10% tithing is not the only key to your forex success, you still have to have a trading system, but everything will become a lot easier if you donate your income. Even subconsciously, you will allow yourself to make more money, because you will know that you deserve it, simply because you are benefiting others with your profits. Do you remember in that Forrest Gump movie, Forrest was jokingly told to pray, and he stupidly took it seriously and started praying for days, and then by some lucky circumstances he became extremely wealthy? Well, since the day I believed into the principle of tithing, I stupidly accepted it, and have been doing it regularly, and by some waves of lucky circumstances that happen to me all the time, I’ve accumulated a lot more wealth at such young age, than most people will probably ever come across. And all I ask of you is to stupidly believe in this principle, and actually do it, and you’ll be surprised at how easily and rapidly you will start accumulating wealth, if that’s what you want.
My teacher basically taught me that the most important thing in life if you want to generate wealth, is to donate at least 10% of your income regularly, and the keyword here is regularly. So being kind of dumb and naïve as I was, I just did what I was told to do, and I still do it. Since the day I started donating regularly, my income has been growing exponentially, and I’ve accumulated large sums of money. I’ve experimented with donating as much as 30%, and I went through periods of donating absolutely nothing. Life becomes much tougher and a lot more problematic, when I stop donating. Yet, when I start donating as much as 30% of my income, a lot more opportunities come than I can handle, and to be honest, I think I am not saintly enough to be able to donate 30%. No matter how much I believe in this principle, it just seems like too much, and I can’t full heartedly give away that much yet, but 10% seems very natural to me now. And I can’t even tell you enough about the emotional rewards that come along with it.
You may think that this is some kind of woodoo, bullshit belief about 10% donating, but it’s really not. I can tell you from my experience, and I can tell you from experiences of some very wealthy people that I know, unless you practice tithing, or donating 10%, life is a lot more difficult, making money is a lot more difficult, and keeping and accumulating money is a lot more difficult. All you have to do is try it for at least 6 months, and then stop doing it for 6 months, and you will see huge difference. Donating 10% is like a magic trick of attracting financial ease and luck into your life. I encourage you to go online, and start reading profiles and personal philosophies of very wealthy people. I encourage you to go to bookstores, and read biographies of very wealthy people, and you will find this 10% donating principle present in almost all of them. Even a seemingly mean and unpopular schmuck such as Donald Trump practices this principle. I love Donald Trump by the way, if you study him deeper, you will realize that he is actually an amazing and very philanthropic guy. Most of his contributions are secret though. I believe that donating at least 10% of your trading profits is the number one principle to your forex success. If you do it, you will attract the right sources of information at the right time, to help you make proper trading decisions. You will actually get lucky on some of your trades. Your instincts will become sharper. Sometimes it seems like all the ducks are lined up for a trade, but something tells you to either close it, or not enter it. Of course 10% tithing is not the only key to your forex success, you still have to have a trading system, but everything will become a lot easier if you donate your income. Even subconsciously, you will allow yourself to make more money, because you will know that you deserve it, simply because you are benefiting others with your profits. Do you remember in that Forrest Gump movie, Forrest was jokingly told to pray, and he stupidly took it seriously and started praying for days, and then by some lucky circumstances he became extremely wealthy? Well, since the day I believed into the principle of tithing, I stupidly accepted it, and have been doing it regularly, and by some waves of lucky circumstances that happen to me all the time, I’ve accumulated a lot more wealth at such young age, than most people will probably ever come across. And all I ask of you is to stupidly believe in this principle, and actually do it, and you’ll be surprised at how easily and rapidly you will start accumulating wealth, if that’s what you want.
TALKING ONLINE BUSINESS III
Part 5 (Practical Approach to Forex)So then, as things unfolded, around two and a half years later, I graduated high school. Most of my peers went to college, but considering the situation I was in, college didn’t make any sense to me. I was making more money than I could ever make having a phD. So I stayed an uneducated schmuck :) I still got some college life action, because I was visiting some of my friends in their dorms in college, and actually had a lot more fun than them, because I had money, and I didn’t have to worry about doing homework and learn boring and sometimes useless things.
Again, I was kind of dumb, naïve, and practical in my business approaches, kind of like Forrest Gump in that movie. I remember one day, I went to buy some boxing gloves for myself, and I’ve been boxing since I was a kid, so I knew quite a bit about the sport. And at that time, the cheapest vinyl boxing gloves you could find cost $40. So I remember looking at a boxing glove, and thinking to myself of how cheap it must be to produce them. All it is; is a piece of vinyl, some foam, and stitches. And I remember thinking to myself of how much profit is being made on these things. So I set out to find some cheap manufacturers of boxing gloves, and I found factories in Pakistan, that were literally selling some of these 10 to 16 oz boxing gloves for around 80 cents per pair, and they had some direct representatives in Los Angeles, that I could buy these boxing gloves for $1.50 per pair. They were selling empty heavy bags for $5.75, while they were selling in sports stores for several hundred dollars. So I saw a huge opportunity in this, and I started listing these boxing gloves for $19.99 on ebay, and started selling them. I was selling empty heavy bags for $49.99. Then I decided that it was too much hassle trying to sell individually, so I started creating sets, with several pairs of boxing gloves, and several head gears, coaching gloves, heavy bags, speed bags, et cetera. It cost me $20 or $30 to create a set, and I would sell it for well over $100 dollars. And people were buying the stuff like hot cakes. Comparing to prices in regular sports stores, the value was literally “stupid”. Then I started selling the stuff by cases, then I started attending trade shows, and selling the stuff to small and medium size private sports stores. I even went all the way to pitching the stuff to the Big 5 Super Stores. I imported and bought locally containers of this boxing equipment, and believe it or not, but I changed the industry. I honestly believe that through the massive numbers of these things that I sold through ebay, and through trade shows, some big boxing manufacturers actually moved their production to Pakistan, and a bunch of smaller brands sprang out, offering their boxing goods a lot cheaper in sports stores, and you can even see now nicely packaged sets being sold in some sports stores :) Selling sets was simply non-existent before I introduced that idea for the first time. It’s fun to think about these things, but all I did was trying to make a buck, and created these changes in the industry, by a total accident, similar to Forrest Gump in that movie.
You may ask, what does this have to do with forex, Felix? You wait, and you will see… It’s all about who I am, and my practical approaches to life. You have to read my story, and understand it fully, in order to fully appreciate the thinking behind my trading system and my trading style. And you have to understand my super practical and kind of dumb approach to life, in order to understand why I literally bash most of conventional trading systems and approaches, and why I talk shit about most forex gurus and educators. Most educators are not practically logical and simple enough. Most of the technical analysis being taught is too complicated, and it doesn't make any practical sense.
Again, I was kind of dumb, naïve, and practical in my business approaches, kind of like Forrest Gump in that movie. I remember one day, I went to buy some boxing gloves for myself, and I’ve been boxing since I was a kid, so I knew quite a bit about the sport. And at that time, the cheapest vinyl boxing gloves you could find cost $40. So I remember looking at a boxing glove, and thinking to myself of how cheap it must be to produce them. All it is; is a piece of vinyl, some foam, and stitches. And I remember thinking to myself of how much profit is being made on these things. So I set out to find some cheap manufacturers of boxing gloves, and I found factories in Pakistan, that were literally selling some of these 10 to 16 oz boxing gloves for around 80 cents per pair, and they had some direct representatives in Los Angeles, that I could buy these boxing gloves for $1.50 per pair. They were selling empty heavy bags for $5.75, while they were selling in sports stores for several hundred dollars. So I saw a huge opportunity in this, and I started listing these boxing gloves for $19.99 on ebay, and started selling them. I was selling empty heavy bags for $49.99. Then I decided that it was too much hassle trying to sell individually, so I started creating sets, with several pairs of boxing gloves, and several head gears, coaching gloves, heavy bags, speed bags, et cetera. It cost me $20 or $30 to create a set, and I would sell it for well over $100 dollars. And people were buying the stuff like hot cakes. Comparing to prices in regular sports stores, the value was literally “stupid”. Then I started selling the stuff by cases, then I started attending trade shows, and selling the stuff to small and medium size private sports stores. I even went all the way to pitching the stuff to the Big 5 Super Stores. I imported and bought locally containers of this boxing equipment, and believe it or not, but I changed the industry. I honestly believe that through the massive numbers of these things that I sold through ebay, and through trade shows, some big boxing manufacturers actually moved their production to Pakistan, and a bunch of smaller brands sprang out, offering their boxing goods a lot cheaper in sports stores, and you can even see now nicely packaged sets being sold in some sports stores :) Selling sets was simply non-existent before I introduced that idea for the first time. It’s fun to think about these things, but all I did was trying to make a buck, and created these changes in the industry, by a total accident, similar to Forrest Gump in that movie.
You may ask, what does this have to do with forex, Felix? You wait, and you will see… It’s all about who I am, and my practical approaches to life. You have to read my story, and understand it fully, in order to fully appreciate the thinking behind my trading system and my trading style. And you have to understand my super practical and kind of dumb approach to life, in order to understand why I literally bash most of conventional trading systems and approaches, and why I talk shit about most forex gurus and educators. Most educators are not practically logical and simple enough. Most of the technical analysis being taught is too complicated, and it doesn't make any practical sense.
ONLINE BUSINESS II
Part 3 (Buying Low and Selling High)You see, I first started making significant amounts of money, in 1998, when I was 16 years old. And what happened was, I was a tennis player, and I wanted to sell one of my old, beat up, and used tennis rackets. I offered it to a friend, but he didn’t want to buy it, but what that friend told me changed my life forever. He said: “Why don’t you try to sell it on ebay”. At that time, I had no idea what ebay was, in fact I had very little idea about internet in general. All I used internet for was to go to AOL chat rooms, trying to pick up girls. As I got older, I now realize that most of those girls were probably old, fat men, probably wearing suits and glasses, but anyway….so I went to ebay for the very first time, I opened an account, I figured out how to post my tennis racket, and I started thinking of a price to put it at. Since I bought it on sale two years ago for something like $55, I decided to put $35 as price for it. So I put up a 7 day auction, and the racket ended up selling for $67. I was shocked. So being kind of a little young, dumb, and naïve, I thought…”Well…if I bought this racket for $55 two years ago, I beat the crap out of that racket, and now somebody was willing to buy it for $67, why don’t I go to a store, and see how much new rackets will sell for.” So I did. I bought two types of cheap rackets at retail prices, in a regular sports store. I paid $19.99+tax for one, and $29.99+tax for the other. I put them up on ebay, and they sold for around $65, and $75 respectively. I couldn’t believe my eyes. I received checks in the mail for them, because back then, almost nobody paid and accepted credit cards for ebay items.
Back then I hardly had any money. I was living by myself in Los Angeles, USA. My mother was sending me money from Russia for rent and food, so at any given time, I was lucky to have a couple of hundred dollars of available money. And those couple of hundred were meant to be for food. I had no car, I had to get everywhere by a bicycle, but the sports store wasn’t far, it was only about 3 miles away, so what I started doing, is I started listing these tennis rackets in massive quantities. I put $49.99 for the one that cost $19.99, and I put $59.99 that cost me $29.99, and I was putting up several auctions every day, starting with $1. And people were buying these rackets for crazy prices. I couldn’t throw enough into this ebay animal. So I started having very nice cashflow, I would keep little to no inventory, every week, I was shipping out dozens of these tennis rackets, bicycling from the sports store, to my house, then again biking to the post office, packaging everything, and mailing it. I started making thousands of dollars per month, didn’t need anymore money from my mother, in fact I started offering money to her. Imagine, being 16 years old, living by yourself, making more money than your friends’ parents, doing something so stupidly simple…buying tennis rackets from your local store at retail prices, and reselling them on ebay. I thought I was given a right to print free money. All the time, the store I was buying from had inventory problems, they wouldn’t have enough of these rackets, so I had to go to other stores, or make my customers wait. Plus it was a hassle bicycling all the time with all this metal on my back. Every time I had to do a mailing, or shopping, I had to make several trips back and forth. And few miles back and forth, is a lot of biking.
So that’s where I learned first the power of buying low and selling high, same as we have in forex. And as you can see, it was a very logical and simple process. I know you may not appreciate these stories at this point, and you may think, Felix, what a heck does this have to do with forex trading systems, and making money in forex? Believe me…it has everything to do with forex and trading systems. Let me continue with my story, and at the end I’ll tie it all together into a very nice and practical lesson, that will tie in very nicely with the forex trading system that I currently use.
Part 4 (Picking The Right Forex Style)So let me continue my story… So as I was selling these tennis rackets, I started thinking that there probably has to be a better way of doing it. Perhaps I could find smaller items to sell, that could conveniently be shipped to me, and I don’t have to bike to stores. And perhaps those items could be smaller, so that it’s easier to transport them on my bicycle to a post office. So I thought of brand name watches. I went online, and through some research, the same day, I found a supplier of closeouts of brand name watches in another state. Because these were mostly store returns, the prices were dirt cheap. I knew nothing about watches at that time, so I asked this supplier for a breakdown of models and prices. The guy was from Texas, and I think he figured out that he was dealing with a kid, so it was very difficult getting anything out of him, he would hang up on me all the time, because he thought I was just wasting his time. So what I had to do was I had to call him, and I asked him for his bank account information, because I wanted to send him a wire for $5,000, and after he had this money, I wanted him to talk to me in details about what he had, because I wanted to buy. After he got the $5K, he became a lot more interested, and I became one of his biggest accounts, I bought well over a $1 million dollars worth of stuff from him over the next few years. But basically this watch business was even a bigger gold mine than tennis rackets. What I would do is get a price list of available models and prices, then I would go to ebay, and search ebay’s completed items, I would see the prices of what similar watches sold for before, and based on that, I made a decision of what to buy. And this is a very important point that I will tie into my forex trading system conversation with you later. I was only buying, when I knew that I could sell it for more money later. And I had a process or a system that I was using in order to identify the items that I could literally buy low and sell high. There is also something important to learn in this story, is the way I initially sent money to this guy. Overall, in my few years of doing business on ebay, I have literally been screwed for over $100,000 worth of money. I have paid money to fake companies, I have lent money to very reliable personal friends that never gave it back, and I have been screwed by some very reliable suppliers, even after doing a lot of business with them. I put one guy into prison, though I never got any money back, I just wasted time to go through the legal process of doing it, and I forgave the debts to most others. This is a very important point, especially when it comes to forex. Every time you give your money to a forex broker, there is a relatively high chance that your funds are not safe. The broker may have the best intentions, but because of the way the forex industry is set up, they have full access to your funds, and if they have bad money management skills, and they use their clients’ money for marketing, hoping to get even more clients, at the end of the day, they may go under, and you can kiss your money bye, bye. But going back to this story. What was the biggest lesson? Yes, my initial business was selling on ebay, but I decided to pick a different niche that fit my lifestyle better. Don't you think it applies to the forex business? Of course it does, and it can make all the difference in your life! I personally really hate sitting in front of my computer several hours at a time, waiting for trading opportunities. That's why I decided to focus on a little bit different style, and that's trading the news. So I come in at a specific time, see the news, make a trade, or not make a trade, and leave. You may not like this style, and if you don't, pick another niche in forex that you will like. Like exclusively trading the first 4 hours of the London Session from 1:00 am to 5:00 am NY Time, or the New York Session from 8:00 am to 12:00 pm NY Time, or Asian Session from 6 pm to 11 pm NY Time. You must enjoy the process. What you focus on, expands.
Back then I hardly had any money. I was living by myself in Los Angeles, USA. My mother was sending me money from Russia for rent and food, so at any given time, I was lucky to have a couple of hundred dollars of available money. And those couple of hundred were meant to be for food. I had no car, I had to get everywhere by a bicycle, but the sports store wasn’t far, it was only about 3 miles away, so what I started doing, is I started listing these tennis rackets in massive quantities. I put $49.99 for the one that cost $19.99, and I put $59.99 that cost me $29.99, and I was putting up several auctions every day, starting with $1. And people were buying these rackets for crazy prices. I couldn’t throw enough into this ebay animal. So I started having very nice cashflow, I would keep little to no inventory, every week, I was shipping out dozens of these tennis rackets, bicycling from the sports store, to my house, then again biking to the post office, packaging everything, and mailing it. I started making thousands of dollars per month, didn’t need anymore money from my mother, in fact I started offering money to her. Imagine, being 16 years old, living by yourself, making more money than your friends’ parents, doing something so stupidly simple…buying tennis rackets from your local store at retail prices, and reselling them on ebay. I thought I was given a right to print free money. All the time, the store I was buying from had inventory problems, they wouldn’t have enough of these rackets, so I had to go to other stores, or make my customers wait. Plus it was a hassle bicycling all the time with all this metal on my back. Every time I had to do a mailing, or shopping, I had to make several trips back and forth. And few miles back and forth, is a lot of biking.
So that’s where I learned first the power of buying low and selling high, same as we have in forex. And as you can see, it was a very logical and simple process. I know you may not appreciate these stories at this point, and you may think, Felix, what a heck does this have to do with forex trading systems, and making money in forex? Believe me…it has everything to do with forex and trading systems. Let me continue with my story, and at the end I’ll tie it all together into a very nice and practical lesson, that will tie in very nicely with the forex trading system that I currently use.
Part 4 (Picking The Right Forex Style)So let me continue my story… So as I was selling these tennis rackets, I started thinking that there probably has to be a better way of doing it. Perhaps I could find smaller items to sell, that could conveniently be shipped to me, and I don’t have to bike to stores. And perhaps those items could be smaller, so that it’s easier to transport them on my bicycle to a post office. So I thought of brand name watches. I went online, and through some research, the same day, I found a supplier of closeouts of brand name watches in another state. Because these were mostly store returns, the prices were dirt cheap. I knew nothing about watches at that time, so I asked this supplier for a breakdown of models and prices. The guy was from Texas, and I think he figured out that he was dealing with a kid, so it was very difficult getting anything out of him, he would hang up on me all the time, because he thought I was just wasting his time. So what I had to do was I had to call him, and I asked him for his bank account information, because I wanted to send him a wire for $5,000, and after he had this money, I wanted him to talk to me in details about what he had, because I wanted to buy. After he got the $5K, he became a lot more interested, and I became one of his biggest accounts, I bought well over a $1 million dollars worth of stuff from him over the next few years. But basically this watch business was even a bigger gold mine than tennis rackets. What I would do is get a price list of available models and prices, then I would go to ebay, and search ebay’s completed items, I would see the prices of what similar watches sold for before, and based on that, I made a decision of what to buy. And this is a very important point that I will tie into my forex trading system conversation with you later. I was only buying, when I knew that I could sell it for more money later. And I had a process or a system that I was using in order to identify the items that I could literally buy low and sell high. There is also something important to learn in this story, is the way I initially sent money to this guy. Overall, in my few years of doing business on ebay, I have literally been screwed for over $100,000 worth of money. I have paid money to fake companies, I have lent money to very reliable personal friends that never gave it back, and I have been screwed by some very reliable suppliers, even after doing a lot of business with them. I put one guy into prison, though I never got any money back, I just wasted time to go through the legal process of doing it, and I forgave the debts to most others. This is a very important point, especially when it comes to forex. Every time you give your money to a forex broker, there is a relatively high chance that your funds are not safe. The broker may have the best intentions, but because of the way the forex industry is set up, they have full access to your funds, and if they have bad money management skills, and they use their clients’ money for marketing, hoping to get even more clients, at the end of the day, they may go under, and you can kiss your money bye, bye. But going back to this story. What was the biggest lesson? Yes, my initial business was selling on ebay, but I decided to pick a different niche that fit my lifestyle better. Don't you think it applies to the forex business? Of course it does, and it can make all the difference in your life! I personally really hate sitting in front of my computer several hours at a time, waiting for trading opportunities. That's why I decided to focus on a little bit different style, and that's trading the news. So I come in at a specific time, see the news, make a trade, or not make a trade, and leave. You may not like this style, and if you don't, pick another niche in forex that you will like. Like exclusively trading the first 4 hours of the London Session from 1:00 am to 5:00 am NY Time, or the New York Session from 8:00 am to 12:00 pm NY Time, or Asian Session from 6 pm to 11 pm NY Time. You must enjoy the process. What you focus on, expands.
TALKING ONLINE BUSINESS
As you already know, the major objective or aim of this blog is empowerment.
That is, teaching people to come to self realization and as a result secure their future both financially, emotionally and otherwise.
Welcome on board as we dedicate this series to online businesses.
I was reading through a write up by a friend who is now a big shot in online busines. Read through his experience doing business online.
Below is his experience:
Part 1 (Introduction)
According to the recent statistics, there are two biggest reasons people visit this website. First reason is to sign up for my free forex trading signals, and second reason is to read reviews about various forex brokers. I really hope that soon the biggest reason why people will visit this website will be to read this article that provides forex traders very solid foundation upon which they’ll be able to build a consistently profitable forex trading system that will comfortably fit their lifestyle.
Did you ever watch the movie Forrest Gump? I love that movie! I know a lot of people like that movie, because it’s simply a fun movie that opens one’s heart, but that movie has a special place in my heart, because when I watch it, it always reminds me of myself. Though I like to think that I am a little bit more intelligent, and a little bit better with women, maybe just a little…
I know you probably came to read this page in hopes to learn a forex trading system, so that you could make more money in the forex market. I am not sure if you will find what you are looking for. All I can tell you is that I make money in forex pretty much every week, and from what I hear a lot of the subscribers to my signals consistently make money in forex with my tips and my trading system. I also know that if you search on google the name Felix Homogratus, you will find some people that love me, and you will find some people that hate me. Interestingly enough, most of the people that don’t like me are the people that learned to trade like I trade either from me, or from one of the people that copied me, and now they are pissed off that I am “too commercial”, and I am teaching too many people what I do, and they feel that some day, what I do will not work, because I taught too many people.
Then, of course, you also have a few people that hate me, because their service or their brokerage is ranked too low on peaceforexarmy.com (former forexbastards.com). Call any broker principal, mention my name, and they will tell you the sob story of how bastard Felix and his community robbed them, and took advantage of their system during the forex news times. What can I say, all the true brokerages, whose only job is to receive their commission don’t mind me, but all the bucket shops, whose business model is to display prices and provide fake trading environment by taking positions against their clients hate me. Of course they hate me and my community, because we are not stupid investors, we actually make money, and if they take the opposite positions of every trade, they are the ones paying for it. Maybe if those brokers invested into proper technology and gave us access to the real market, everybody would be happy. Here is something fun for you to do :) Go to http://fxtrade.oanda.com/resources/forums.shtml and post anything mentioning Felix Homogratus, secret forex society, or peaceforexarmy.com (former forexbastards.com), and your post will be deleted within 24 hours :) Post a name of any other mentor, and it will stay.
Part 2 (Conventional Forex Trading Systems)Anyway, let’s go back to our forex trading system conversation. I started talking about Forrest Gump, and there is a reason why I started talking about it. Before I start talking to you about my forex trading approach and my forex trading system, I think you will appreciate knowing my simplistic approach to business, and making money in life. I am kind of dumb like that. When I first started trading forex, I would read these books and listen to these forex mentors, economists, and other experts. They would mostly wear suits and glasses, and I could never figure out whether they wore glasses because they had bad vision or whether they wore them because they wanted to look smart. I would read all these forex books, I would listen to these experts on CDs, I would watch them on a DVD, and they gave a lot of information, and answered a lot of questions, except one, they never seemed to be able to tell you how to actually make money by trading forex. At first I thought they were hiding something, but then I figured out that they most likely didn’t know themselves. They would talk about all kinds of technical indicators, and global effects of oil or China or whatever else, but they never talked about how to actually take that information and make money with it.
Different people had different trading approaches. Some of them seemed to teach to trade when some lines crossed, others seemed to teach you how to trade based on some formula of an ancient philosopher, who figured out a formula for multiplication of rabbits. Others seemed to tell you to sell when there was a shooting star or a hanging man. I spent two weeks, looking out of my window into the sky and other people’s windows, just trying to find shooting stars, and trying to find people that were about to hang themselves. But after a while I figured out, that a hanging man and a shooting star was some kind of a candlestick graph pattern. If I knew that from the beginning, I could’ve saved my neighbor Billy from hanging himself, but instead I tried to take advantage of the hanging man opportunity, and ran to my forex platform, and went short on EUR/USD. That didn’t seem to help. Billy died, and I lost money. First I thought of myself as a failure, because I just couldn’t figure out the relationship between formulas of multiplication of rabbits, hanging people, shooting stars, and some other things. I even went to a store and bought a suit and a set of glasses, thinking that it would put me somewhat closer to the experts that were teaching me, but that didn’t seem to help either. Glasses simply blurred my vision, and since it was too hot, I couldn’t wear the suit, because I started sweating so much that even local homeless people started giving me money, because I smelled so bad. So I figured I had to find another way of making money in forex, I had to figure out and create my own forex trading system.
And again, like Forrest Gump, I was a little bit dumb, and I couldn’t understand all those complicated technical indicator formulas. I just had to rely on my good old logic, and remember other ways that I used to make money, and I feel that I should tell you the other ways that I used to make money, so that when I talk to you about my forex trading system, it makes more sense to you.
Did you ever watch the movie Forrest Gump? I love that movie! I know a lot of people like that movie, because it’s simply a fun movie that opens one’s heart, but that movie has a special place in my heart, because when I watch it, it always reminds me of myself. Though I like to think that I am a little bit more intelligent, and a little bit better with women, maybe just a little…
I know you probably came to read this page in hopes to learn a forex trading system, so that you could make more money in the forex market. I am not sure if you will find what you are looking for. All I can tell you is that I make money in forex pretty much every week, and from what I hear a lot of the subscribers to my signals consistently make money in forex with my tips and my trading system. I also know that if you search on google the name Felix Homogratus, you will find some people that love me, and you will find some people that hate me. Interestingly enough, most of the people that don’t like me are the people that learned to trade like I trade either from me, or from one of the people that copied me, and now they are pissed off that I am “too commercial”, and I am teaching too many people what I do, and they feel that some day, what I do will not work, because I taught too many people.
Then, of course, you also have a few people that hate me, because their service or their brokerage is ranked too low on peaceforexarmy.com (former forexbastards.com). Call any broker principal, mention my name, and they will tell you the sob story of how bastard Felix and his community robbed them, and took advantage of their system during the forex news times. What can I say, all the true brokerages, whose only job is to receive their commission don’t mind me, but all the bucket shops, whose business model is to display prices and provide fake trading environment by taking positions against their clients hate me. Of course they hate me and my community, because we are not stupid investors, we actually make money, and if they take the opposite positions of every trade, they are the ones paying for it. Maybe if those brokers invested into proper technology and gave us access to the real market, everybody would be happy. Here is something fun for you to do :) Go to http://fxtrade.oanda.com/resources/forums.shtml and post anything mentioning Felix Homogratus, secret forex society, or peaceforexarmy.com (former forexbastards.com), and your post will be deleted within 24 hours :) Post a name of any other mentor, and it will stay.
Part 2 (Conventional Forex Trading Systems)Anyway, let’s go back to our forex trading system conversation. I started talking about Forrest Gump, and there is a reason why I started talking about it. Before I start talking to you about my forex trading approach and my forex trading system, I think you will appreciate knowing my simplistic approach to business, and making money in life. I am kind of dumb like that. When I first started trading forex, I would read these books and listen to these forex mentors, economists, and other experts. They would mostly wear suits and glasses, and I could never figure out whether they wore glasses because they had bad vision or whether they wore them because they wanted to look smart. I would read all these forex books, I would listen to these experts on CDs, I would watch them on a DVD, and they gave a lot of information, and answered a lot of questions, except one, they never seemed to be able to tell you how to actually make money by trading forex. At first I thought they were hiding something, but then I figured out that they most likely didn’t know themselves. They would talk about all kinds of technical indicators, and global effects of oil or China or whatever else, but they never talked about how to actually take that information and make money with it.
Different people had different trading approaches. Some of them seemed to teach to trade when some lines crossed, others seemed to teach you how to trade based on some formula of an ancient philosopher, who figured out a formula for multiplication of rabbits. Others seemed to tell you to sell when there was a shooting star or a hanging man. I spent two weeks, looking out of my window into the sky and other people’s windows, just trying to find shooting stars, and trying to find people that were about to hang themselves. But after a while I figured out, that a hanging man and a shooting star was some kind of a candlestick graph pattern. If I knew that from the beginning, I could’ve saved my neighbor Billy from hanging himself, but instead I tried to take advantage of the hanging man opportunity, and ran to my forex platform, and went short on EUR/USD. That didn’t seem to help. Billy died, and I lost money. First I thought of myself as a failure, because I just couldn’t figure out the relationship between formulas of multiplication of rabbits, hanging people, shooting stars, and some other things. I even went to a store and bought a suit and a set of glasses, thinking that it would put me somewhat closer to the experts that were teaching me, but that didn’t seem to help either. Glasses simply blurred my vision, and since it was too hot, I couldn’t wear the suit, because I started sweating so much that even local homeless people started giving me money, because I smelled so bad. So I figured I had to find another way of making money in forex, I had to figure out and create my own forex trading system.
And again, like Forrest Gump, I was a little bit dumb, and I couldn’t understand all those complicated technical indicator formulas. I just had to rely on my good old logic, and remember other ways that I used to make money, and I feel that I should tell you the other ways that I used to make money, so that when I talk to you about my forex trading system, it makes more sense to you.
TO BE CONTINUED....
Monday, July 02, 2007
JUST ONE LIFE!
JUST ONE LIFE!
Come to think of it friend.
Does life have duplicate? What a question? I gues you imagine.
But frankly speaking, this is a question calling for an answer.
Many people today live this one life has though it has duplicate.
They not only waste precious time, they waste resources too.
Most youths today channel their energy wrongly. Engaging in exercises wherein there isn't profit.
What do you think a youth engaged in drugs benefits from that sort of lifestyle?
Such a one is abusing the God's own framework.
If you decide to engage in practices that does not promote dignity and honour,
then you are wasting your God given ability.
Engage your energy profitably today and become a chartered member of Global Impact Makers.
BE A CHANGE MAKER.
Come to think of it friend.
Does life have duplicate? What a question? I gues you imagine.
But frankly speaking, this is a question calling for an answer.
Many people today live this one life has though it has duplicate.
They not only waste precious time, they waste resources too.
Most youths today channel their energy wrongly. Engaging in exercises wherein there isn't profit.
What do you think a youth engaged in drugs benefits from that sort of lifestyle?
Such a one is abusing the God's own framework.
If you decide to engage in practices that does not promote dignity and honour,
then you are wasting your God given ability.
Engage your energy profitably today and become a chartered member of Global Impact Makers.
BE A CHANGE MAKER.
TAKE THE BULL BY THE HORN
TAKE THE BULL BY THE HORN
Yes, it is time to take the bull by the horn.
If you know what you want out of life then go for it.
Face it squarely.
Shun procrastinations and all forms of distractions.
Life is too short and you can't afford to waste it.
If yon don't make that move now, tomorrow will definitely be too late to do that.
Don't postpone, tomorrow has its own assignments and troubles.
Make good use of the time you have now because you might not be able to make up for it.
BE A GOOD TIME MANAGER.
Yes, it is time to take the bull by the horn.
If you know what you want out of life then go for it.
Face it squarely.
Shun procrastinations and all forms of distractions.
Life is too short and you can't afford to waste it.
If yon don't make that move now, tomorrow will definitely be too late to do that.
Don't postpone, tomorrow has its own assignments and troubles.
Make good use of the time you have now because you might not be able to make up for it.
BE A GOOD TIME MANAGER.
Subscribe to:
Posts (Atom)