Most new traders concentrate on pips, how many pips they are up, how many pips they are down. They think that if they try to not watch the “real money” and just pay attention to the pips it will help them become less emotional, less worried. They think that they shouldn’t worry about the money in the account, or the fact that you have worked hard your whole life to put it there, they think if they just worry about these little pips it will all be OK.
Your Learning Here Is About Making Money, About Making Wise Investment Decisions, Not About Collecting Pips – At Least, Not Yet!
You need to be aware of how much money you are risking on each and every trade you make so that the reality of losses and wins sink in, and more importantly, are learnt from.
In AndyW club, you will learn to treat trading as a business. Do you think owners of multi-million pound business don’t look at their profits or losses, but create some form of point system? – Of course not.
In AndyW club, you are being taught to trade like a professional, to trade by managing your risk. Thinking about how many pips you have lost or gained is irrelevant, as initially you will be changing the value of those pips in order to meet the risk requirements. Just because you are risking a large amount of pips, does not mean you are risking more capital.
Once you are more advanced, more consistent and more comfortable trading the strategies you will be taught, you can progress to using set pip values and becoming a pip addict. Yes you will make much, much more money, as it uses the power of leverage. But, you will also lose every single penny in your account, and very quickly, if you try to learn to trade this way.
So, let’s talk about being a compounding addict.
You are learning strategies that work, that have a proven back ground over many years, strategies that many traders make money every day trading. That means that you do not need to go through the process of trying to find your own strategy and losing many trades in a row and risk blowing your account up.
What you have to do instead though is work on your discipline, patience and trading technique. Until you master these 3 things you will lose money, my Forex trading strategies work, but you will magically make them not work.
This is why you will initially be taught to be a compounding addict, to use the power of money management, compounding interest and discipline to make money in Forex. Until you can trade the strategies without thought, delay or emotion you will only risk 2% of your capital on every trade. Just 2%. That doesn’t mean that you won’t make any money, just the opposite, what it does mean is that you won’t blow your account out of the water.
If, when you are ready to go live, you put just £2,000 into your trading account, you can have over 200 losing trades in a row before you have no money left. If you haven’t learnt my Forex trading techniques within that time frame, then something is drastically wrong!
The only problem that arises from learning to trade and using 2% money management techniques gives the potential for over trading. If you do lose a few trades in a row it will take you more trades to get back to where you were before.
If you start with £2,000 and you lose 5 trades in a row you are now down to £1,808, now still trading 2% per trade, to get back to break even you will have to win 6 trades in a row. This will lead you to wanting to over trade to get back to break even faster, you may take less quality trade entries, or start moving your profit targets and stop losses.
This is the one and only drawback of 2% trading, but whilst you are learning it is imperative that you stick to it – Patience, discipline and learning first!
If You Want to Become a Successful Forex Trader, You Must Join AndyW Club.
In AndyW Club you can get exclusive Forex trades, analysis and signals notifications via dedicated APP, E-Mail or Telegram. Click Here and Join AndyW Club Now – You Can Cancel Anytime, No Questions Asked!