Now I’m about to show you WHY is that 99% of traders NEVER make a dime trading forex.
If you don’t identify the ROOT of the problem, it doesn’t matter how well you “know” or apply the system I’ll show you later. You WON’T STAND A CHANCE to ever make make money trading.
This is critical to understand.
To illustrate this point with a real-life case scenario, I want to show you the journey of a friend/investor of mine, Jason.
For some quick reference, Jason was a very high-esteemed business consultant in the Marketing department inside a “big” corporation out there.
Really high on the “corporate ladder” if you will.
He had 34 y.o., a nice family composed of his Wife and 2 lovely kids (4 and 9 Y.O. respectively).
Now, we where having a nice steak in a high-end restaurant, while he was talking to me about the current trouble his company (where he currently was working at) had.
“I don’t know how long this will last. I’m afraid all of us at the office are at risk of being put on the street, myself included” He said.
At the time he was an investor of mine, and have “dabbled” in forex trading himself for the last year or so.
BUT, he was losing a ton of money. I could tell that just from feeling his tone of voice.
He didn’t even wanted to share with me his track record (I guess we all know why, don’t we?).
But he always had this burning DESIRE to trade for a living, don’t have to worry what his boss would think of him, let alone being afraid to be kicked-out of his high paying job while having to take care of his family.
It didn’t took long into the conversation to reach that point…
“I want to give it a shot. I would LOVE to finally learn to trade like a pro and live off my trading efforts, and finally be FREE! No more boring, soul-sucking, useless job”.
I could sense the enthusiasm and DESIRE behind him.
He wanted me to give him an opportunity to learn how to do it, and of course he WANTED to make the shift from answering to his boss, to BECOME the boss.
Generating steady, consistent income from his trading account was THE thing he wanted the most.
“Come to my office tomorrow, let’s talk about it” I said.
And he came.
“Share with me what you have been doing”.
And it all started to come out just like I expected to…
How "Wannabes" Trade Forex...
He showed me, and not only he was losing money, but he had already BLOWN UP several 3-5k $ accounts!
And he told me the story was always the same…
“I would learn a new trading system, apply it, earn some money, and as soon as I made that, losing trades followed. I always gave winners back. Never being able to retain/grow my profits…”.
“Then I ALWAYS said: Oh boy, there is something wrong with my system. It no longer works. Maybe this is not the “home-run winner”. Let’s look for another one. A better one.”
And the search for the holy grail began…
He told me he “went to”, and “consulted” sources like:
- Every single book on “trading systems” available on Amazon.
- Watched every single tutorial on YouTube (the ones with 2 Ferraris and Lambos next to them)
- Went into different forums, and on every one it seems everyone had “THE best, consistent profitable system”
- Took all the cheap (and expensive) courses available.
- Even took “advice” from their broker and got scammed by the thousands!
- Subscribed to all Signal services available (are people still falling for this?!)
You name it.
He also tried systems like:
- Elliot Waves
- “Naked” Price Action Trading
- Double Tops And Double Bottoms Trading
- Ichimoku Clouds Breakouts
- The 1 Hour candle “London Open” Straddle
- NFP announcement trading (does anybody ever made a penny with this?)
- “Catching” trends in the 5 min chart for hours without end
- Moving-Averages Crossovers (until my chart looked like a rainbow)
- Fractal breakouts (Bill Williams style)
- Trend line break trading
He was definitely an expert analyzing charts, applied every technique he knew, but had NO RESULTS TO SHOW.
He told me (which I already knew without hearing it) he was deeply EMOTIONAL while trading.
Fear, anger, and greed took over him every time he was in front of his trading platform, watching his open trades.
“I’m afraid when my trades go into the negative, and get out with a huge loss. When I see a small profit, I just take it and get out too early.” He told me.
“Every time I made profits I felt like “The Man”, but as soon these evaporate, and try to make them back, loosing twice as much, I feel like dying inside. Like cancer.”
Really felt bad for him.
“Money Management Plan?” I asked.
He never knew precisely how much money he was risking, against how much he could earn on any given trade!
This is typically how the 99% of losing traders behave. It’s epidemic.
And I told Jason, it wasn’t his fault to behave and operate in this model.
“Don’t worry” I told him.
“You are not the problem. The real problem here is all this FAKE gurus on YouTube, showing how “they turned 500 bucks into 60k in 3 weeks” type of thing.”
I also mentioned the useless forums where EVERYONE is looking for (and seems to have) the “holy grail”.
Not to mention the 2.99 dollar e-book on amazon that will show you the “millionaire in 2 months scalping system”.
See, everyone is operating like this, and losing money left and right BECAUSE of how the WHOLE environment conditioned THEM to do so.
And THIS might be your own case also…
All “Wannabe Traders” around the world are convinced there is a “perfect winning system”, either Scalping, Day trading, News Trading… and THAT’S the only thing they need… because THEY ARE BIENG BRAINWASHED by everything around them!
And here lies another “layer” of this problem (going deeper now).
The trading “system” Jason was following, along with every other “Wannabe” out there, only focuses on 1 engine.
Their entire focus is on THE TRADING MECHANISM (engine) ITSLEF, and ONLY THAT.
Don’t get me wrong, this is super important (this is where the “Whale-Trade Effect” comes in…).
BUT there are other important components to make it work, to generate consistent profits long term!
Jason’s and EVERYBODY’S “system” is missing some FOUNDATIONAL ELEMENTS.
They have NO risk/money management, trading psychology, trading with an edge, NOTHING.
It looks something like this:
“Wannabes” have TWO major issues:
1) They believe there is a “perfect trading methodology” that generates consistent profits (be it Scalping, MA crossovers, Ichimoku Cloud, Trading the NFP release, you name it).
2) They believe that’s the ONLY thing they need to become successful (no risk/money management, trading psychology, etc.).
If you are not getting it right now, don’t worry. You’ll understand later…
Back to my friend Jason.
Luckily for him, I gave him a precious stone.
I sent him a hard-drive with tons lessons and information, that together compose my whole trading system I’ve been using to trade for my investors for YEARS.
He spent 5 months with all the material, and I’m no going to lie to you, it was a bit tough at first.
He had to re-program A LOT of his beliefs and current behaviors. A lot of old habits needed to die, and a NEW model of operation was needed to get printed in his DNA.
This takes work.
The process of going through a “Wannabe” to a CONSISTENT profitable trader (I will share with you the exact same process Jason went through, along with all the material for your benefit later).
Fast-forward those 5 months, and I got a call from him.
“Hey Phil, let’s have dinner tonight. Let’s go for some juicy steaks. Got something to show you.”
I obviously said yes, and went to meet him once again.
What I found was outstanding, but again, I already knew that was going to happen 🙂
Let me show you how it went…
Click here to continue… (page 3 of 9)