TRADING LIFE LEVEL IN FOREX TRADING

Congratulations PracticePipper, you are now clued in on the

knowledge and material required to begin your trading
journey!

Although the Foreign Exchange industry is an unquestionably

lucrative one, it is repeatedly referred to as a scam due to the
many false trading systems, indicators, robots and managed
accounts out there. During your final stage of PracticePips
you will come to learn about these ruthless scammers who
lurk in the corners of the Forex realm, waiting to prey on the
innocent and naive!

Furthermore, prepare yourself for your concluding lesson in

'The Trading Mind' as we guide you through the importance
of balancing your personal and chart time to achieve a state
of mental clarity.

And without further ado, let's begin Trading Life!

WHAT ARE FX SCAMS?

The key to truly conquering the FX market is to become an expert in

technical analysis and judging the market. The only person you should be
relying upon is yourself.

There are far too many bodies within the world of Forex who sell the dream
to a poor soul unaware of the inner workings. You should always keep in
mind that victory within this is market is never a straight road. There will be
times when you may doubt yourself, but with a thorough plan and trading
journal there is no situation that you cannot overcome. It is important for
you to be honest with yourself and evaluate your weaknesses and
transform these into strengths. This will come with time.

If you are solemn in your strive to achieve consistency then brace yourself
for a rocky road. Forex is uniquely rewarding, you will reach levels of self-
development that many fields of work cannot provide.

Making money in the FX market is not smooth sailing; it requires hard work,
dedication and persistence. During your journey you will come across
archives of promises and web pages attempting to lure traders of all levels
into the dark. Although experienced traders are cautious of this, the
temptation for a novice trader may be too much for them to handle. You
must remember that technical analysis is the ruler of Forex. If you choose
to rely upon an external training source, ensure they hold their own archive
of market breakdowns and successful analysis. Signal selling is also a
popular promise, which can be clarified by a Google search. Be sure to
conduct your research!

SIGNALS

Typically offering email or text alerts, signal sellers supply traders with both
buy and sell recommendations, ‘signalling’to the subscriber when a trade
should be executed. They may also provide a target and stop loss price
and usually come at a monthly subscription fee.

Amateur traders are easily enticed by the idea of having their trades
‘handed’ to them. Nevertheless you should be particularly wary of signal
providers who fail to put a face to their business. Unfortunately there are
numerous scams online that deviously collect money and vanish without
delivering what they promise. Other signal scammers may operate by
recommending suitable trends now and again, before disappearing after a
devastating loss.
With the influx of Forex-related services across the Internet, it has become
increasingly simple for any individual to regurgitate signals from an
uncertified provider. For instance, Jimmy establishes
superjimmysignals.com and without great difficulty he is able to purchase
bulk Forex signals from Johnny over at johnnymastersignals.com in order
to forward these on for profit. Who is to say that these signals are reliable?
That’s right, no one!

Despite this, a small minority of genuine signal providers with the intention
of delivering a quality service does exist!

Even so, as a genuine trader your goal should be to achieve maximum

consistency within the market over time and the only way to achieve this is
by relying upon yourself and dedicating your time to analyse the market.
 ROBOTS AND INDICATORS

In the history of Forex, many ‘trading systems’ have come into market
existence promising consistency. Fortunately for us, the market variably
experiences periods of a dynamic nature, thus resulting in the expulsion of
a large majority of these automated systems.

Just as signal providers operate, system providers assemble an online

platform providing traders with phenomenal trading results in exchange for
an extortionate price. You will come across marketing schemes such as,
“Earn £200- £500 a day” or “2000% return within nine days”. These are in
place to take advantage of inexperienced traders who are desperately
seeking a financial quick fix, however more often than not the results are
disastrous.
Programmed scripts are commonly referred to as ‘Robots’, these along with
indicator-based systems are available in thousands. Most are compatible
on a trading platform known as Metatrader or MT4, as this platform can be
programmed by the user.

Software that analyses the Forex market for you, does not exist.
Furthermore, a fair few systems claiming to assist with the buying and
selling of currency pairs are frequently based on historical chart data and
mathematical formulas. If you seek guidance you should do so from
accomplished traders with a successful performance record.

Mechanical trading systems and robots are rarely independently verified

and of a live money market. 99% of the parameters and optimisation codes
of these trading systems are usually invalid and short-lived. The moral of
the story folks, is to abide by your own technical analysis and have
confidence in your own trading judgements.

BROKERS AND MANAGED FOREX ACCOUNTS

A popular scam enacted a few years prior to today was the manipulation of
the bid and ask spreads of a currency pair as well as the commission
transacted through a broker. Spread and commission vary according to the
particular currency pair. You must be watchful of offshore retail brokers
who are not regulated by the CFTC, NFA or their nation of origin.
In the past, there have been numerous cases of unlawful computer
manipulation along with firms taking off with money belonging to clients.
Most of these episodes historically occurred within the United States.
Although these deceitful conmen were caught, there are undoubtedly more
out there.

Upon performing an Internet search on FX broker scams, the volume of

results returned is substantial. At times it may seem as though a broker is
intentionally seeking to cause you a loss due to the market moving against
you immediately after an execution. This is a common experience amongst
all traders and it does not necessarily determine that the broker is a sham.

Trading is not for everybody; some will never be able to comprehend the
dynamics of the market and are simply not built to open a chart. These
individuals will even fail to trade with a tested strategy due to their weak
trading psychology and damaging frame of mind dictating when to pull the
trigger.

Material problems can emerge when a communication barrier develops

between the retail trader and broker. Perhaps the broker fails to answer the
trader’s phone call, reply to an email or even fails to meet the demands of
withdrawing in time. This could be an indication that the broker does not
have the client’s best interest at heart.

Before trusting your funds with a broker, you must run background checks
and in your research you will look out for the following:
 Are they licensed?
 Do they have any legal actions pending against them?
 Are there any complaints of withdrawing funds made by previous or current
clients? If there are, this could be a tell-tale that their pot of liquidity may be
liquidating itself!

Yet another major scam devised by even established brokers, is the

‘deposit bonus’. For instance, if the trader deposits £10,000 the broker
sales team may offer a percentage bonus plan, which can be added to your
trading equity and may be removed at any time. So if you were offered a
50% deposit bonus you would be granted an extra £5,000 equity to have a
play with, making your total £15,000! Sounds great, right? Unfortunately,
my friend, this will only entice you into trading larger lot sizes, leading you
down the slippery slope to meet Mr. Margin Call.

Once you are satisfied with a particular broker, go ahead and test the
waters with a mini account, depositing just £500 or £1000. Trade this for
four to six weeks and then attempt to withdraw the funds. If all goes well,
you can be confident to deposit more funds.

Last but not least, never make the mistake of handing your trading account
to any online entity or fall into the common pit of PAMM managed
accounts, which offer 2000% or more return on your investments each
month! Whilst searching for a broker or trading system you must remain
skeptical of promises or promotional material guaranteeing a high level of
performance.

Understand however, the Internet can be a cynical place for any business
across the globe. It is far too easy for someone to post content online
slating another. So when we do come across forums, articles and other
forms of negative comments referring to brokers, we must remember the
sheer amount of traders out there who fail to make a profit. A great deal of
these disgruntled traders will proceed to post content online blaming
brokers for their own failed trading strategies. Thus, when we research a
potential Forex broker, we must separate fact from fiction.

STATE OF MIND

It would be an act of dishonesty to state that success in the Forex market

solely relies upon the system or strategy you use. True consistency and
your profitability are actually dependent upon your mindset and your trading
independence!

However, websites and businesses endeavouring to sell an indicator or

robot-based trading system will never tell you this. Why? Because they
want you to believe that it is possible to become profitable in the market by
simply buying their product or service. So let’s think about this. If such a
system existed, one that was an autopilot moneymaking machine, would it
not be a few billion pounds or dollars as opposed to not even a fraction of
that?

The missing piece to the puzzle is your ability to balance your emotions
with your mental processes. Failing to achieve this will result in you not
being able to make money in the long-term or consistently.
Trading strategies are not universal. Every trader has distinct
characteristics and therefore they may be more suited to one strategy over
another. For instance, long-term trading is convenient for traders with
patience, whereas restless traders prefer intraday trading.

Whatever your preference, the key to success it to practice until you

become perfect; as you would with any skill, shape it into a personal craft.
A sure-fire way to becoming a better trader is to master just a few
techniques, locate the set ups and determine exactly what your eyes are
accustomed to find. Finally, only enter trades that fall in confluence with
your preferred price action methodologies and plan.

Clarity and organisation are two aspects that will positively affect your
trading. By organised, we mean having a detailed trading plan and a
thorough trading journal. Making use of these on a regular basis is a must.
You need to think and treat Forex as though it is a business; not a trip to
your local casino. Be calm and calculated in all of your interactions and you
should have no problems keeping the emotional trading demons at bay.

Trading the currency market is far from a team sport. This is a one-man
band, people! You may stumble across forums and groups on the Internet
where ‘traders’ can pool their ideas together. However, you should avoid
these because every trader works differently. Trader A could be analysing
a five minute chart and aiming for 10 PIPs, while trader B is analysing a
daily chart aiming for 100 PIPs.

You could be in a great position where you are ready to take advantage of
your accurate analysis and a fantastic trade setup, until you view another
trader’s chart in a forum, which is displaying an opposite bias. At this point
the seed has been planted and you may lose confidence in yourself and
your abilities. You will not find a professional profitable trader lurking in
forums jumping from strategy to strategy.

Losing Trades

Whether you are operating from your bedroom or on Wall Street, you will
always encounter losses. You win some and lose some; it is in the job
description! A trader who places 100 trades could lose 20 trades in a row.
Stay grounded and disciplined when it comes to keeping your risk tight.

Losing Money

Unfortunately, 90% of traders who lose money also lose their confidence.
These are the traders who become entrapped into paying for bogus Forex
services and some even go to the desperate lengths of allowing others to
trade on their behalf. Again, we stress that there are individuals out there
with not even two cents to their name who claim that they can help you. Do
not be fooled! Avoid allowing desperation to cloud your judgements; your
will and drive is all that you need.
 TIME AWAY FROM THE MARKETS

Taking a break from the charts is important. Professionals understand the

value of removing themselves from the market to wind down, as ultimately
there is no value in spending vast amounts of time analysing the charts. In
fact, most traders will do more damage to their trading accounts from
overtrading and overanalysing. Experienced traders acknowledge that
whether it is a win or a loss, the best thing to do is to remove themselves
from the market for a period of time.

Immediately after a trade closes you will most certainly feel quite emotional.
You could be confident from a trade that panned out well or you could be
suicidal or desperate to regain your loss. The easiest way to avoid
emotional trading is to do something else than trading! Do not stay awake
all night in front of your computer screen!

A good night’s rest is vital for your trading success over time. It is important
that you spend the majority of your time doing something other than
trading, something that you enjoy. This could be going to the gym,
socialising with your friends, working on a talent or absolutely anything that
is not trading-related! The point is, checking your charts every five minutes
is only going to have an adverse effect on your emotional body and will not
increase your chances of becoming profitable.

Professional traders are successful because they spend a minimal time

interacting with the market every day. They understand that the market is
nothing more than a tool to their disposal. This tool can be utilised in an
efficient manner, enhancing their lives and bringing them financial freedom
or devouring their money and leaving them penniless. The market is taking
advantage of you when you fiddle with open trades and glare at your
screens for prolonged periods of time!
Due to the liquidity of the Forex market, it is undoubtedly the most lucrative
and rewarding market to trade. Having said that, it also comes with great
risk. A large proportion of individuals disregard potential risks, blinded by
pound signs.

This mentality is by far the fastest way to lose a large portion, if not all, of
your account equity. Capital preservation is crucial; it is not about how
much you profit in FX, but how much you lose! A serious Forex trader will
be mindful that they could potentially lose any trade they place.

Too often it takes a string of losses and a painful experience to realise that
less is more. Rather than the quantity, focus on the bigger picture and the
quality of your trades. Create a solid routine, which includes 'cooling down'
periods. For example, once you close a trade in profit or loss do not look at
that pair until the next day to reduce the chance of any emotional errors.
Trading is a game, which requires psychological balance and non-
attachment.
 What Next?
Now that you have worked your way through Practice Pips and
graduated, you’re probably wondering what to do now.
We would personally recommend that you open a Demo
account with your chosen broker. If you are unsure on which
broker to use, please see the Which Broker topic. You should
implement the learning you have taken on board throughout
Practice Pips and now start building your strategy.

We would recommend using a demo account for 3 to 6 months

before going live, but remember only go live when you are
completely comfortable in doing so. Also, do not spend too
much time on a Demo account; there is a big difference
between trading on a live account in comparison to demo as
there is no reset button and it is your hard-earned money that
you are trading with.

Further Education

If you would like to further your education and learn various

trading strategies, we would recommend undertaking a course
alongside Astrofx Ltd; who have taught over 1,500 students
globally and are one of the fasting growing educators on the
planet.

Suitable for both new and experienced traders, the Astrofx

online and face-to-face courses are specifically designed to
help traders escalate their learning and engagement through
discussing various topics such as:
 Trading Psychology
 Price Action Analysis
 Professionally Constructed Guidebook
 Member Zone Access
 Live Webinars
 Private Student Telegram Group
 They provide two course, face-to-face or online; both of which
have created many successful traders. For further information,
please visitwww.astrofxc.com

Which Broker

We get many questions on which broker is best to use.ADS

Securities London is a broker which we use personally and
highly recommend. In today’s turbulent times, we only
recommend financially strong brokers who are regulated.
www.adsbroker.uk
 Tight margins;
 Ultra-fast pricing and execution;
 MT4 compatibility;
 Trade on-the-go with our Smartphone App;
 CFD and Spread Betting available;
 Next day withdrawals;
 No withdrawal fees;
 Full Market Access with a £250 deposit;