Week 26: The Forex Enlightenment

3 Winning Positions = 47.36% Gain. Hourly Chart of EUR/USD

I’m currently up by +47.36% this week. This is because of the rules that I applied in forex trading. I learned to think, decide and make sure that I won’t lose the house when I make a mistake but make sure I make a killing when I win. I begin to think of odds and take only trades that have the highest possibility of winning and betting all that I can, to maximize my returns.

I do not concern myself with the temporary gyration of the market. I want to be always invested in the market to cover whatever major movement it wants to give me. I’ll be the first one to say sell, when people are still shouting buy. But only making sure that all of them have used up and hyped up all the buyers until there are no more.

I realized that there are people who will hype you into taking their side. That is because they are on the losing side and they want out. I have seen these people proclaiming to be gurus, but only out there to take your money. For the lone trader, these people are your prey. They are the noisy kids who talk a lot but have nothing to show for it. They know how to make drawings out of charts, and tell all those buzz words, but at the end of the day, they make money out of hyping the newbies.

Be one that waits in the shadow. Waiting and waiting until the right time to strike. Be an assassin, a sniper if you will, who spends more time waiting than actually killing. You don’t want to be seen, you don’t want to brag, you want to take action before anyone knew what hit them. This is the real, best way to trade. To wait patiently until the right time comes, then betting all that you have for the only, one strike that you’ll ever need.

Diversification is only good for people who does not know what they’re doing. You only need 1 pair, 1 trade to make a difference. You play at a situation in which you are an expert. You don’t try to trade ranges if you don’t even know what range means. If you’re good at trend following then stick with it, be patient and wait for the first sign of a trend. That’s where you’ll make your money.

Why the rush to be rich? Everybody will probably be richer than you and probably be a lot younger than you. It doesn’t make you any less human to take it slowly. Be patient and wait. It takes discipline to be rich. There’s a reason why most billionaires are old men. They’ve spent a lot of hard work and patience to get to where they are now.