Week 17: Market Going Stale, Investing In Stocks

The forex market is going stale as we reach the end of the year. Many investors are on vacation so the market is not liquid enough to be exciting. +1 in capital for this week.

But, I’ve entertained myself with investing in stocks. Primary strategy is to produce passive income. I’ll be using this nest egg to fund my forex trading account in the future or perhaps venture into real estate. Not sure for now, but the journey thus far have been so exciting. Stock market is not moving fast to date, but I’m investing in it, not trading. There’s a big difference, I like it that way since the stock market is not that liquid like forex, you can’t enter and exit within seconds, there must be a buyer or seller on the other end with the same price you want. In forex, you can enter or exit anytime, very liquid. And liquidity is very very good.

Whole Year Round Up

Well, this year I finally achieved my goal of $5,000 per month in net profit from forex. I am also trading at no risk. Which means, the money that I have in my forex account are the money that I earned trading. I already withdrew the money, initially deposited into my account and thus, trading with no risk at all. In numbers term, I already earned past 100% of my initial capital to trade with only the profits I made. Sweet huh?

This year, I also ventured into stocks and realized that its a lot different than trading forex. So I decided to change my strategy with stocks and focused on passive income generation. In which I am very much enjoying.

I realized that forex trading is a probabilities game. You can not predict what will happen next. A good forex trading system is not a system that could predict the next move of the market, because there is no such thing. A good forex trading system is 60% money management 30% emotional discipline and 10% Entry – Exit. The time I realized this, my trading just improved.

I learned to accept the risk before entering the trade. If $200 loss hurts me emotionally, I turned the risk down to $100 or $50 until I feel no pain from risk. The reward may be small, but small steps before you can run. And it have proven to be profitable.

The best way to trade forex is to trade defensively until the next big trend comes. Don’t be on the sidelines far too long or you can miss the trend. Always be in the market so you can be in the position when the trend starts. You just have to survive the ups and downs of price by money management. And if you caught yourself a big trend, double, triple, quadruple, quintuple up your positions until you are stopped. That’s how you can make money with forex.

I also realized that day trading is stressful. So I switched to swing trading daily. I forgotten my first reason in trading forex. It is to be free. The “illusion” of easy and fast money with day trading is a myth. There is no easy and fast money. The only thing you can find there is stress and a lot of time spent, staring at a computer. That is not the life I want. I want to be free. Maybe once a day looking at a chart for 5 minutes and I’m off to the beach or to the gym. With a lot of free time and let my money work for me, not the other way around. Its a great great feeling.

  • Sandino Madelo

    Hi!

    Have you try trading with binary option? I’ve been using a demo account for almost 3 months now and I started to
    to learn about it. Kaso lang ang problema ay hindi ko alam kung paano magdeposit sa broker. Hindi kasi pwede gamitin ang visa card sa BDO at BPI para magdeposit ng funds..

  • Threbor Sy

    Good day, sir are you a true Filipino?
    I want to try Forex.
    Ano po ba pwede nyo mai-recommend?
    Magkano starting?
    Yung lehitimo and paying broker, matagal na sa industry at subok na.
    Marami kasi ko nababasa na hindi nag babayad yung broker sa earnings ng member or scam.
    Hope you will response my concern.
    thank you.
    Send to mrktgsystemonline@gmail.com

  • Spyfrat’s Call

    hi paps, yun article 2011 pa? di bale, awesome read. may ni google lang ako at nakita ko site mo :)

  • ForexPhil