Bitcoin to Reach $50000

Bitcoin to Reach $50,000

I said in my last post that I’d give you my reasoning behind bitcoin to reach $50,000+

So here is my view on why I think we will see bitcoin hit these heights.

Through all the bitcoin mania at the moment, most people who are now investing in bitcoin [and it’s still minuscule], have little if any idea about the true value of bitcoin and what it means.

The minute I heard of bitcoin and mentioned it, I thought to myself that this could be big.

Of course I wish I had followed my hunch and bought loads of coins back then. But that is not the point I’m trying to make.

The point is that back then I thought…that’s very interesting… a way to take payment or move money for anything to anyone.

That is the true value of bitcoin. Being able to transfer wealth from anyone who is anywhere to someone else without using traditional methods like banks, or if you like a middleman.

Bitcoin is the first standalone global currency. It speaks all languages. It is also pretty hard to trace.

Rise of the Bitcoin

The reason that bitcoin grew at such alarming rates is for one simple reason. Crime!

Around 3 years ago, the main use for bitcoin was [and probably still is at the moment] to trade drugs online.

This trading of drugs on websites like Silk Road, then, fuelled the rise in bitcoin’s price and helped get it noticed by the masses which in turn led it to becoming more mainstream.

Now however, there are other crypto currencies that are completely anonymous and I assume criminals will soon start to opt for those over bitcoin. This will again drive the prices of those cryptos higher.

For now though the general public and masses are just about to start learning about bitcoin.

Everyone will Accept Bitcoin payments in Due Course. It will change the traditional FIAT monetary system for good.

Bitcoin to Reach $50,000

Once Amazon accepts bitcoin payments [which I think will be very soon], this act alone will make the statement to the world that bitcoin is “Safe”. When that happens, I think that the bitcoin bubble that everyone is talking about now will seem more like a snowflake at the start of a gargantuan snowball.

In all honesty, I think that bitcoin to reach $50,000 is still conservative.

How to Invest in Bitcoin

If you have never invested in crypto’s then the first port of call is to get an account with a trusted broker. I have used bitpanda to buy bitcoins.

When I buy other crypto’s I send the bitcoins from bitpanda to bitfinex and buy them using the bitfinex platform. This seems to be the easiest way to do things.

You can then store those purchased coins in a paper wallet for security.

Bitcoin is Still at Very Early Stages.

You might find that the bitcoin exchanges are slow and even crash regularly. This is unfortunately the way it is at the moment. There are way more customers than there are sales and tech assistants at the moment.

Look at it like this. Herds of customers trying to get into the apple store because they have announced a lightning sale, for one day only and everything is £50… it’s going to take time to get to the front of the Q isn’t it?

That is sort of how the bitcoin exchanges are at the moment… overloaded.

However, this gives you time to start off small and learn how everything works and go from there. It may seem complicated at the moment, but so was flying the first plane.

One day very soon, you’re going to have to learn how to pay with bitcoin and how it all works. You may as well start today.

Vince Stanzione’s Crypto Currency Seminar

Vince Stanzione's Crypto Currency Seminar

We have finally completed and moved home. In fact, the day after Vince Stanzione’s crypto currency seminar we were unpacking everything in our new place.

Chris made it to the seminar, he said it was the best one that he had ever been to.

I have yet to see the videos of the day… although desperate to watch them, by the Monday after we had moved, we all had colds… by the Tuesday it was more like Flu!

I can’t remember being so rough with a cold… so I can only assume that it was some kind of strain of this Aussie Flu that we have all managed to get.

I wish I had had the flu jab! But I thought no way… that’s for OAP’s. fool!

Anyway…

From what I have taken from the feedback that Chris has relayed to me, the speakers at the seminar think that Crypto trading may well be the biggest snowball for traders since the dot.com bubble.

Although I am not surprised at this, what has surprised me is the amount of money that bitcoin can realistically be worth in the next 5 years.

And it’s not only bitcoin that is set for big things… many of the other crypto coins are looking just as promising.

If you are thinking that bitcoin is already overpriced, you need to get real. Cryoto trading is in its infancy. If you always feel like you have missed the boat of opportunity… then this is your chance to jump on at the beginning for once.

I personally think that bitcoin will be worth $50,000 + within the next 10 years. I’ll elaborate on this in my next post. However this figure may be way to conservative.

But there are other coins that you can buy now, for the price of good meal, that could be equally profitable over the coming decade.

I truly believe that crypto’s are the future of money.

Vince Stanzione’s Crypto Currency Seminar

Vince Stanzione has put together a full home study course of the crypto seminar, so if you are interested you can email him here directly to reserve a package.

I do not get anything for recommending you, but you can mention me if you like.

Once I’m back to 100% and this flu has passed, I’ll do another update on crypto’s as I’ll of had time to watch the video’s by then also.

4 Hour Trading System

 

4 Hour Trading System – 74 bets, 54 winners, 20 losses 73% Strike rate

 

Here is the 4 hour trading system that I promised you in my last post.

 

This system is so simple to use you might not believe that it could even be so profitable. But the results that I’m about to share with you will clearly prove otherwise.

 

I had noticed that there may have been an opportunity to develop some kind off trading system using 4 hour candles way back at the beginning of the year, although I just didn’t have the time to follow up.

 

However, due to the house move stalling I have actually had a chance to finish of the test and give you some results.

 

What is the 4 Hour Trading System?

 

The 4 hour trading system is a binary trading system that relies on following the trends that the 4 hour candle charts make.

 

The reason it works so well and is so simple is that it is actually trend trading in nature and the trade entry couldn’t be easier to identify.

 

Before I go into detail, let me share last months results with you.

 

4 Hour Trading System Results October 2017

 

Now these results are only using the 6 major currency pairs. I had tested the system on some of the lesser traded pairs with similar results. However, to keep things as clear as possible we will only use the AUD/USD, EUR/USD, GBP/USD USD/CHF USD/CAD and the USD/JPY

So, out of the 6 major currency pairs, there was a total of 74 trades. Of these, 54 were winners with 20 losing trades.

This equates to, 74 bets total, 54 winners, 20 losses = 73% Strike rate, well just a smidgen under.

To work out your strike rate, you divide your total number of winners by the total amount of trades/bets and the x by 100

As you can see, the system generates quite a few trades. So out of the 22 trading days in October 2017 that gives us an average of just over 3 trades a day.

So, if you are looking for a reliable system that gives you a good few trades a day, with an awesome strike rate, that you can start trading with minimal investment, then my 4 hour trading system might be just right for you.

 

Why am I Giving You this for Free?

Well, I wanted to give this to you at Christmas as a thank you for reading my blog. Then it occurred to me that if I gave it to you at Christmas you’d probably not start using it until well into February once you had giving it a good test.

So to give you the heads up and the best chance of starting 2018 with a winning formula, I thought I’d give it to you now.

And as you hopefully already realise, I want to over deliver and give you the absolutely best chance of making money from trading. I genuinely mean that.

This system is also so easy to use that it won’t take up too much [if any] of my time giving support.

Other trading systems that I may offer you, like my binary trading package, are more technical in nature and offering support is to be expected, however time consuming it may be.

Also, products like my trading system enable you to set your own hours to trade and also set alerts as and when to trade. So the whole thing is more complex.

So enough talk… here are the 4 hour trading system rules. I do not know of this strategy being published online anywhere. However I must state that I do not stake any claim that it is solely my creation… although it probably is.

 

4 Hour Trading System Rules

You are looking for 2 four hour candles that are of at least the same size or ideally increasing in size.

The candles need to be trending… Do not try to trade sideways markets.

Good times to enter are therefore obviously in clear trends, after a correction or at reversal points.

Also make sure the candles that have formed are of reasonable size in points. Some currency pairs differ in they way that their points are calculated, but as a basic guideline, you want your first 2candles to be at least 8-10 points in size.

 

4 Hour trading strategy

 

Once you have identified the candles, you then open a trade for 4 hours on binary.com at the very start of the opening 3rd candle.

That is the system in a nut shell. The reason that it works so well is that you are just jumping on to the trend after it has been confirmed by the 2 previous 4 hour candles.

If you didn’t want to do any other analysis then the above rules will serve you well enough.

However, if you want to spend a little bit of time trying to increase strike rates by finding better entry points then here are the price action rules that I have been using.

Price action trading.

As you can see from the following chart images, I have not used any technical indicators at all. The charts are completely clear, they are naked.

This means that you are only using the price to identify the market direction.

What we can use to give some extra conviction to our trades though are candle formations that signal a change in direction or even a continuation after some consolidation or correction. Using support and resistance lines are also super effective.

rachels 4 hour trading system

 

Looking at this zoomed in section of the USD/JPY the results and trades of the 4 hour trading system can be interpreted like this.

Please note…. These are my own personal views on what I see happening. I am not stating these candle entry’s as fact. The best, clearest most perfect trading setup in the world can still go belly up.

 

The First Trade

The first blue arrow you can see on the chart signifies a winning trade on the 6/10/2017 [it looks like it is above the 4th candle in the sequence].

The previous candles in the sequence and their price movement I have evaluated as this…

The very first black candle in the sequence seems to have been formed at a resistance level, thus the price has started to move back down.

The second black candle has had a lot of pressure from the bulls driving the price up during the formation of the candle. This is clear from the long wick. However, the bears have won the battle and pushed the price right back down to form another downward bear candle. This suggest to me that there is plenty of selling pressure and that there is a good chance of the next 4 hours seeing the price move down further. This is a good place to open a trade ‘lower in 4 hours time on binary’. The price moved down for the next 8 hours.

The Second Trade

Our next trade occurs on the 10/10/2017

 

The candle before the first black candle is what is considered a spinning top. These spinning tops can often mean indecision in the market, a continuation of trend after a price correction or even a change in direction depending on where they form.

The following 2 black candles are clearly quite bearish and we can assume that the price will continue moving down.

We enter a trade at the very start of the candle that is after the close of the second long bear candle.

This trade finishes in a another winner.

 

The Third trade.

12/10/2017

 

I didn’t have any reason to doubt that this setup qualified as a trade.

The first black candle engulfs the preceding white candle and also seems to have come up against and met a resistance level as did the previous white candle.

The second candle continues in the main down trend direction. The candle has just about a longer top wick than a bottom wick and this means to me that price is likely to continue down. We will open our trade at the start of the next candle.

The third candle actually doesn’t behave like we think it should and we lose the trade.

The Fourth Trade

18/11/2017

This trade is very clear to me. There has been a strong support level around the 12.1 / 12.2  area. This coincides with the formation of a doji candle and then a spinning top which is the start of our sequence.

The next candle after the spinning top is a huge bull candle that clearly outsizes the spinning top.

I trade at the start of the next 4 hour candle. The result is another big bull candle and another winning trade.

Basic price Action Trading

As you can see, I have only used some basic price action analysis to confirm to me that I should place a trade.

If you can’t fathom price action [although you really need to do so to become a successful trader] you can always just place the trade on the start of the third 4 hour candle if the previous 2 candles are increasing in size.

Doing so will give you more trades, but will also increase both the amount of winners and losers. Although overall results will not be to far from the results using some basic price action analysis the strike rate does dip.

 

Why is this system so effective?

Simplicity… that is one of the key components of this system. In fact, it is so easy to use that a few minutes evaluation of a chart is all that you will need to do once you get the hang of things.

It’s important to understand that you do not need to try and make this system more technical in nature to make it work. You are simply jumping on the trend that is already in place.

The size of the 4 hour candles is [in their most basic form] all that you need to identify a trend and potential trade.

Setting Reminders

Realistically,  you can trade in just the most liquid trading hours by setting alarms on your phone every 4 hours.

As an example, if the chart package you use coincides with candles forming at 8 am, 12 noon, 4 pm and 8 pm…. Just set an alarm on your phone that goes of every 4 hours at a quarter to the start of the candle.

So 7.45 am, 11.45 am, 3.45 pm and 7.45 pm.

This then gives you enough time to get to your PC or get on your mobile and take a look at what is happening with the charts.

Using Alerts on IG

You can set trading alerts on the IG platform that can notify you of certain movements and indicator signals. I cover this in detail in my binary trading course.

Basically though, you can set up an alarm that will notify you of any continuous 4 hour candles.

For example, if you are trading the USD/JPY you set an alarm on the platform by clicking alerts in the top right hand corner.

Click add alert and then set up the continuous candle alert.

The Alerts will then be emailed to you or pushed on your Iphone.

This image beneath is taken from IG Charts. Adding an alert is very easy to do.

4 hour trading system

 

More Charts and Results

Have a look at these other 4 hour charts, these are all of the major pairs charts that I analysed last month and all the wins and losses that I encountered.

If you take time to really study them you will probably, criticize me on some of my entry points and price action analysis.

That however is actually a good sign… it means you are truly considering the movement of the prices. We are not all going to agree on where we think the price is going to go. That is what makes the market in the first place… the bulls and the bears.

 

Four hour trading system trading 4 hour charts trading four hour charts four hour charts for trading 4 hour chart trading

To recap

  • Use 4 hour charts
  • Trade the 3rd candle if the previous 2 candles are at least the same size or ideally increasing in size.
  • Use simple price action, including support and resistance levels and candle formation to fine tune entry points.
  • Don’t underestimate how simple and effective this system is.
  • Don’t overcomplicate things

 

Paper Trade Until the New Year

So from here until the New Year I suggest that you paper trade the system so that you can get to grips with the selection process.

You can open an account at IG or anywhere that you can use some good reliable charts if you haven’t already.

Don’t break the rules and just do what I have outlined in the 4 hour trading system rules.

Keep a spread sheet to record your results and you can get a clear idea of what is going on in the blink of an eye.

Remember that some of the currency pairs will perform better than others. What counts are the result overall on average each month.

To my knowledge this system has not been created or published anywhere else. Please feel free to share and give me a mention if you can. #Rachelthetrader

A Quick Update – Chart Patterns – Trading Books

Trading Books

Just a quick update… I’m actually in the process of moving at the moment and to say that it is dragging on is an understatement.

 

A house full of boxes and not much else has become pretty trying on the entire household.

 

Blogging has had to take a little bit of a back seat while I get sorted… and unfortunately for us we are still waiting to exchange and complete. This was verbally agreed to happen within 3 weeks. And guess what… it didn’t.

 

However, not one to drag my heels, my family and I managed to get a quick break to Dubai.

 

The weather was fantastic, service amazing and the sites fantastic.

 

I have been to Dubai before but was only there for a couple of days. So this time I got to see and do far more.

 

Although we missed the storms whilst away, we came back to more BS from solicitors and still no completion date… Ahhhhhh. But that’s how moving can pan out.

 

If we have no forward momentum and positive news by the first week of November, then I will be unpacking and getting set to enjoy Christmas where we are!

 

Blogging

 

The thing about blogging is that you do really need to be focused to be able to write content that is worth reading.

 

When your mind is not on the ball, writing becomes a chore. I have found that out before… and as much as I have lot’s of mental blog posts that are ready to go and organised, trying to write them at the moment is just not happening.

 

My office is semi packed, and that is annoying me. My business books are all in boxes along with vast amounts of trading books, information manuals and courses from Vince Stanzione.

 

Although I can’t read everything all at once, I do love having everything in its place. A clean and tidy uncluttered office is my sanctuary.

 

On a positive

 

Fortunately, the one thing that I have been able to do with intensity is chart study and read [new books] that will then need to be packed into boxes… the irony.

 

I have always enjoyed looking at the charts when trading longer term, I like trying to analyse the patterns and price movements.

 

Chart study has been something that has become common practice since I started researching day trading. I do really enjoy it too.

 

Recently I have spotted some interesting trends that will help new and experienced traders add profits to their accounts. I will do a super duper blog post for you in November explaining, or as soon as I know where we are with the house move.

 

Trading Books

 

Hedge fund managersOne of the trading books I’m reading at the moment is “More Money than God” it is all about hedge fund managers and how they did what they did and it starts out from the very first of these managers, Alfred Winslow Jones.

 

From there, it takes you along the history of various hedge fund managers and explains in detail their mind-set and how they made it to the top of their game.

 

The book is superbly written and I’m enjoying it immensely, check it out here on Amazon.

Why do chart packages all differ?

Beginner traders might think that all chart packages are the same… but they are far from it. If you look at these charts beneath you will see that they are all of the same currency pair AUD/CAD on 4 hour bars.

 

However, all of these charts are slightly different.

 

This isn’t such an issue if you are trading long-term and using daily charts/candles. But for the short-term trader it can pose confusion, especially if you don’t actually know that all charts are not identical, so it’s worth taking note of

 

Using the charts from CMC markets, IG and Sharepad,  we will be able to see that there is variation in the data that is displayed.

 

You need to look closely. But the candles and patterns are different in places.

Chart packages

I have questioned this with IG and Sharescope and they confirm that the differences are because of the way that they receive their data and the sources the data come from.

 

When I first noticed this, I sent pictures [screenshot of the discrepancies] to IG. After they gave me their reasons for the differences, I checked the chart again and the actual candle in question i had pointed out to IG had been changed to mirror the results on the other chart that I had compared it to.

 

Why they [IG] done this I don’t know, however you must be aware that all chart packages are actually different and will supply different data.

 

Are Traders Being Hamstrung?

 

My first impressions of these chart contradictions were negative.

 

I immediately jumped to conclusions that there was some sort of conspiracy to manipulate short-term and new traders.

 

However, I don’t think this is the case at all. I do just think that the data is delivered at different speeds and times from company to company and source to source.

 

Stay With the Same Chart Packages

 

If you are continuously using the same chart package, then these variations obviously make no difference to you as your results will be consistent.

 

The main point to take from this is that your results will or can get affected if you are switching from chart package to chart package. These results may be positive or negative.

 

So when it comes to using the various charging packages, it is best to find one that you are at ease with and stay with them. They all have their own little quirks and differences and that doesn’t just stop with the data.

 

If you begrudge paying for chart data then just use the free ones on IG or any other platform like yahoo, tradingview or even googlecharts and stay with them.

 

If you want charts with a bit more oomph that offer something more than the free ones, try share pad. I do like these charts and they also have the VIDYA indicator added [very useful if you are trading with Vince Stanzione].

 

Prorealtime charts are also very good but there are differences from the sharepad platform that do not suit me. On the contrary, there are features on sharepad that are better on prorealtime. Although sharepad still edges it for me.

 

Someday there might be a chart package that is perfect for me… for now though, I’m staying with sharepad.

Fibonacci Retracement Trading

I have [as always] been looking at different trading ideas… and one that can be used with other indicators to create good short term trades is using the Fibonacci retracement tool on your charts.

Using Fibonacci retracement trading to predict price movement can be very effective as a standalone system.

However… if you add a MACD into the equation and use some simple reversal candle set-ups you have a complete system.

For best results you will want to use at least the 4 hour candles or the daily candles.

Fibonacci Retracement Trading

 

To draw the Fibonacci grid, you will need to go to your chart and go to drawings. You then just select the draw Fibonacci Retreatment.

 

fibonacci Retracement trading

 

Then just drag the grid from the most recent low to the most recent high or vice versa.

 

You can see from the next diagram of the AUD/USD that the most recent trend has seen the price move up. This means that we draw our Fibonacci retracement from 100% at the low of the trend to the 0% at the high of the trend.

 

If the trend was down, we’d be drawing the grid from the high 100% to the low 0%

 

Now once the Fibonacci retracement grid is in place we are looking for a reversal candlestick pattern forming at the 50% level or the 61.8 level.

 

You can use the 38.2 level but you will get more false signals.

 

The 50% level has an amazingly uncanny knack of rebounding from this level, so it tends to be the level used by most traders.

 

If the retracement goes past the 50% level and does not present a reversal candle set-up you will then wait to see if there is a reversal pattern formed at the next level.

 

As you can see I have drawn the grid to illustrate how this strategy works.

 

trading fibonacci

 

So I have drawn in the Fibonacci grid from the recent low to the recent high.

 

I now wait to see if a reversal pattern forms at the 50% level, if not I will wait until a reversal pattern forms at the next level.

 

Now if we scroll forward we can see what happens.

 

Reading The Chart

 

We can see that there was no reversal pattern at the 50% retracement level. So we wait and see what happens at the next level.

 

Here at the 61.8 level you can see that the price action stops and there is very little movement. This is combined with a congregation of small doji, hammers and pinbar candles [highlighted and in line with MACD crossover].

This is notifying us that a trade may be about to present itself. You can also read more about candle set-ups here.

 

Also you can see that the MACD has given a crossover signal to further verify a change in market direction.

 

Just after the MACD crossover we get a huge bull candle that signifies that the price is reversing and is going to resume the upward trend.

We then enter our trade. A spread bet that nets us a nice stress free 150 points + profit or you could have made a binary bet.

fibonacci retacement

 

So to recap.

 

  • Draw your Fibonacci grid from the recent high to low or low to high.

 

  • Wait for the retracement to reach at least the 50% level and  confirm the reversal with a reversal candlestick pattern. If no pattern forms, then wait the retracement to reach the next level and again confirm reversal with candle patterns.

 

  • Finally, the last confirmation to enter a trade is that the MACD has made a crossover.

 

Trading price action

 

Once you get the hang of things you’ll be able to use just what you see on the charts to predict price movements.

You will be able to remove the MACD and if you get really good then you will be able to gauge the Fibonacci retracements without the grid.

 

Doing so is trading pure price action. A trait that is well worth acquiring.

 

This [trading price action] is especially useful when trading currencies.

 

Currencies tend to move in very noticeable patterns over time.

 

Here are some more charts that are approaching Fibonacci retracement levels.

 

See if you can predict the next price movements? All the charts are from this September 2017.

Fibonacci strategy

FX-EURNZD

FX-NZDJPY

It’s not so important that you get the results right at this stage. It is more important that you see how the method works and get use to identifying the set ups.

You can see the results beneath. I have removed the Fibonacci grid so that you don’t get confused.

Trading FX-EURJPY

FX-EURNZD

 

FX-NZDJPY

It’s not Complicated

How did you get on? There is nothing complicated to this type of trading, most of it is mechanical so guesswork is eliminated.

The good thing about learning to trade like this is that as I have already mentioned, eventually you will be able to eliminate all indicators if you learn well and wish to do so.

The key benefit from having a naked chart is that you are then reading the price action… the price does not lie.

All chart indicators are lagging. So even though the information an indicator may give you can be useful, it is always dated. And it is not always as clear as the charts above.

Look at this chart of the USD/MXN. Using price action and candle patterns we can see that after a down trend we then meet the same resistance again and a clear engulfing pattern is formed.

By reading this, we then enter on the opening of the next candle. By doing so we get into the trade far earlier than the indicators suggest we should.

If we had waited for verification from both the Moving Average and the MACD then we’d be getting on to the trade the following day or at least 20 ticks later.

FX-USDMXN

In Conclusion

There are many benefits from learning Fibonacci retracement trading, and the reversal signals can be very accurate when combined with candle patterns. It is also a good way to start learning to read the price action rather than to keep relying on lagging indicators.

Bitcoin Code System – Scam

Just a quick heads up on a trading system that you may have been offered or heard of recently.

As you may be aware, bitcoin has been making some traders big money lately, the swings have been enormous.

When these phenomenal movements occur and especially with something that is new and relatively unheard of the charlatans tend to come out selling their systems.

Bitcoin Code System SCAM

The Bitcoin Code System has been plastered all over the place lately claiming untold riches overnight. Same old, same old. They are even using actors from fiverr to do the plastic reviews. Unbelievable.

Anyway, Vince Stanzione had put a warning up on his private members site so I thought I must tell you also.

Bitcoin code system

The sickening part of this type of shite that can be offered for sale is that some poor soul has actually paid for it and that people want to believe it is real and some really need to believe in it.

I remember when I first started out looking for trading systems, I found myself wanting to believe all the sales pitches that I heard.

Fortunately I got wise to all the BS pretty quickly and found myself being extra careful before taking a serious plunge.

The catch with scammers is that they use the same techniques that professional marketers do. So it is always going to tarnish the systems and courses that are genuine.

This doesn’t just apply to trading and money making opportunities.

There are scammers in every line of business using professional techniques to sell bogus products.

From betfair systems to penny share scams… from £999.99 iPhone apps that actual do nothing to fake Manuka Honey.

Crikey… you can even get tattoo artists that are scammers. Although I wonder at what stage one might realise that they have been scammed?

Anyway, if you have been offered the bitcoin code system or where even considering it… You have been warned.

 

How to Trade – A Beginners guide to Spread Betting

How to Trade.

Learning to trade from September to April is one of the best times of the year to start your trading journey.

The markets tend to spring to life and start trending one way or another come September.

And if you’re new to trading, then learning when the markets are at their most liquid can make the whole process far more enjoyable.

Where to Begin

The biggest challenge to face new traders is just where to start.

Getting duped into the wrong trading style for your own strengths can result in many traders that may have had promising trading careers cut short.

It makes little difference how much you paid for a course at the outset. In the thousands or under a hundred quid… if the style of trading isn’t going to suit you personally then you’re creating more hurdles before you have even started paper trading.

 

How to Trade 

It took me a long time to find and decide on the course that was ultimately going to start my trading career.

And even after that, there were many mental obstacles to overcome.

To save you a lot of time and trouble here’s a quick heads up on some of the best reads, quizzes and videos on how to start trading… and what’s more, they won’t cost you a penny.

The Best Starts for New Traders

Want to know if trading is for you? Take the trading psych test first

Or this one if you fancy changing things up a bit

One of The best videos on Trading Phycology

If you have never heard of Mark Douglas then here’s a real treat for you…Mark is the undisputed king of trading phycology and his book trading in the zone is a must read for all serious traders.

Here is one of the best videos on trading phycology you’ll ever see…

Strategy Testing

Try testing your strategies out first on one of the trading simulators and from there you can open one of the good demo accounts with a spread betting firm.

Stock Market Game

If gaming is your thing then why not learn to trade with one of the best stock market trading games around? I haven’t ever played this but have heard of it regularly over the years.

You can have a look at Wall Street Survivor or one of the best forex trading apps for Iphone here

The Best Free Trading Resourses

It is difficult to say what are the best free guides available when I have already written so many awesome tutorials for you J

However, if you have got your phycology game plan down then here are some good places to start learning to trade.

A Complete Beginners Guide

The basics of how to start trading and spread betting made as simple as possible.

Here are all the basics of placing your first spread bet on the IG platform.

How to Trade – A Beginners guide to Spread Betting

Candlestick charting

This website has everything you’ll ever need to know about chart patterns. If you’re trading intraday then this site is invaluable.

Trading Support and Resistance Levels

A simple way to trade using support and resistance lines

How to trade the DAX German 30

The German 30 DAX is one of the most heavily traded markets… this easy to use system is a great place to start trading

How to trade using Moving Averages

A beginner’s guide to moving averages 

And how to trade using a triple moving average

 

Free Books on How to Trade the Markets

Some of the best books on trading that I have read

How I made £2,000,000 on the Stock Market: here 

Reminiscence of a Stock Operator HERE 

Extraordinary Popular Delusions and The Madness Of Crowds HERE 

Trading Parables HERE 

 

Demo accounts

IG offer the best demo account and their charts are some of the best free ones

If you’re looking to trade binary options then the only place to go is binary.com

 

Whilst these links I have given maybe familiar for the some of you, Most of you won’t go far wrong with laying great trading foundations from reading and learning from the sites I have listed.

 

Decide on a Trading Style

As already mentioned, decide on the trading style that is going to suit you personally. Are you a slow steady trader that is happy with longer term trading and funds that can be tied up for years at a time? Or are daily or weekly profits what you are looking for?

This area needs honest and careful consideration if you are going to give yourself the very best chance of trading success.

Use the coming months to get a trading plan together to learn the ropes and you could well be on time to trade the Santa Rally should father Christmas arrive…

 

Cryptocurrency Trading – The Future of Forex

Cryptocurrency Trading

A few years ago, back in 2013, I wrote about the possibilities of trading cryptocurrency. At that point in time, bitcoin was the main word on everyone’s lips… and still is the most recognised cryptocurrency today… but there are others that have and are making a big noise today too.

 

So what is cryptocurrency? Well obviously it is a currency, but just not as we know it.

 

I love this explanation.

 

“Virtual currencies, perhaps most notably Bitcoin, have captured the imagination of some, struck fear among others, and confused the heck out of the rest of us.” – Thomas Carper, US-Senator

 

The reason I like that quote is that it is just so accurate. It really is, cutting edge, fearful and confusing. Much like the first man to wear a top hat in public. OK, maybe not quite as outrageous. But it is certainly making headlines.

 

It’s All New and Confusing

 

Now even though I mentioned bitcoin way back, I’m certainly not going to claim I know the ins and outs of bitcoin or any other cryptocurrency for that matter. In fact, I’m probably as clueless as the rest of the masses.

 

If you want to know more, you can read more here about cryptocurrency and what it is and what it’s all about.

 

Cryptocurrency Trading

 

The reason I’m mentioning it today is that an insider email I got from Vince Stanzione highlighted a massive opportunity that is about to come us trader’s way… what’s more is that it is something that everyone has the chance to get in on.

 

Now you’re not going to need to know all the technical details about cryptocurrency to be able to cash in on this.

 

All you’re going to need to know is how to spread bet the forex markets or place a trade on binary [once they add it].

 

Now, I can’t say much about the opportunity at the moment, but as soon as I have all the details from Vince I’ll drop you a link.

 

In the meantime, have a read about cryptocurrencies and try and get your head round it. It’s not that difficult if you keep it simple.

 

The Next Big Thing

 

If you can remember the dot.com bubble then it may just pay to be ahead of the pack on this one too.

 

I have told you before, that Vince is the undisputed king of finding emerging markets… and this one might be a financial game changer for many.

 

Let’s hope so.

 

Fear of Losing – the Traders Biggest Hurdle

Fear of losing

It’s easy to trade the markets for a living… or at least that is what most sales pages confess to being able to teach you.

And yes it is, mostly… but that is only once you have learnt the right route to take to get you there.

However, after years of learning to trade… the biggest tip I can give to any new trader is this ‘learn to lose gracefully.

I’m a notoriously bad loser. I’m ultra-competitive… be it a board game or team sport, losing is not an option… I like to win!

So learning to lose was something of a hurdle to overcome when I started out.

Also you have to remember the style of trading that Vince Stanzione has taught me added to my predicament. Vince trades long term as you know. So holding a trade open for months at a time to then close for a loss was hugely frustrating.

But over the space of a year or so, after all the worrying and stress, I was in profit.

Fear of Losing

Now, the point is this, even though I had been biting my nails on many occasions during my initiation, guess what? It didn’t change my results.

The amount of times I questioned Vince’s selections and advice was/is probably legendry. But once I stood back and took in the view, I realised that this game is all about doing and forgetting. Not doing and praying to the trading gods for luck.

On average, what I began to see was a pattern of trades that looked something like this.

I had open, at any one time, a dozen trades or so.

Roughly 4-6 of these trades resulted in a loss, 2-4 may do nothing and trade in a range… 4 absolutely flew.

The losses were always smaller than the wins. The sideways positions were closed for small losses or minuscule gains and funds reinvested. The winners were rolled over again and again.

Once again, there is no amount of worrying that could have impacted these results.

I relied on someone’s expertise [Vince’s trade selections] and I had to roll with that.

In hindsight I didn’t have to be concerned at all… but at the time the fear of losing was very real. I was literally scared of it.

 

Take it Easy

If you learn from my advice and remember that trading is just a game that over time will return a positive [wins] over [negative] losses [if obviously you are using a reliable strategy], you’ll then be able to sleep at night.

No amount of worry will change the direction of a position.

So just follow the signals that you are using and walk away.

You can use the alert service on IG to notify you of your indicator alerts. So if you get a message you can take the necessary action on the position.

Do you think that Vince Stanzione, George Soros or Warren Buffet lay awake at night, sweating and worrying about their open positions? It’s quite a comical thought, but I really doubt that they do.

Your Fear of losing is imaginary.

Your actual fear of losing is self-inflicted. You are worrying about something that hasn’t yet happened.

When your position is open, whether it is in profit or not, you have not won or lost at that moment in time.

If you close your position for a loss, then it is a loss. There is no longer any fear of losing in itself. Are you frightened of the loss once it arrives? Do you call your friend, wife or mother and say “I’m really scared, there is a loss on my trading account… it’s really frightening me”. ??? Of course you don’t. They’d have no idea of what you were talking about and are more likely to come rushing round to see if you still have all your marbles in place.

So, when you are afraid of losing you are only beating yourself up. Because once you have lost [if you lose] there is no more fear. You may be upset about the loss, but you will not be in fear of it.

Try this Trading Test

Select any 6 shares, currencies, indices at random.  You can use the charts beneath that I have chosen if you prefer.

Add this exponential moving average [EMA] to the charts 10/50

Set the time frame of the candles to 1 Day

Now, paper trade and work out your profits over the last year.

I have randomly chosen the shares that are listed in position 1, 6, 12, 18, 24, 30 from the Dow Jones

So I have…

  • 3m Co
  • Chevron
  • Goldman Sachs
  • McDonalds
  • Travelers Companies INC
  • Walt Disney

 

Here are their charts from the last year with moving averages added. 

Fear of losing

NYSE-CVX

 

 

NYSE-GS

NYSE-MCD

NYSE-TRV

NYSE-DIS

Now work out overall how many points profit you’d have made overall just trading the crossover signals. Buying and selling.

Be brutal… Really give the charts a conservative hammering.

Could you have made a profit over the last year, just buying and selling on the crossovers?

It’s plain to see. Of course you could have.

Not only could have you made a profit, the actual amount of profit is in the £1000s even trading at .50p a point.

There were thousands upon thousands of points profits to be made.

In hindsight then… was there any fear of losing when looking at the above charts and results? So why be in fear of losing when actually trading?

 

Why Fear Stops Traders Making Money

It boils down to a few key areas although not limited to these that I am identifying here. However, one way or another they all point back to fear.

  • To bigger size stakes for bank size. So when a trade goes against you the loss seems magnified and you panic and close the trade early.
  • Using stop losses and setting stop losses to close to market You are using a stop loss because you are afraid of losing.  Stop losses are a pain in the rear. If you really want to use them make sure that they are set at the correct distance. 25 day highs and lows are a good place to start.
  • The money is in the waiting, some people just can’t wait it out. Impatience normally comes from the fear of losing the profits that you have already made. So you close the position too early.
  • No faith in the strategy you are using. When you start trading and encounter losing streaks it is [of course] the strategy or system that you are using that are at fault. So, in fear losing your bank and wasting your money, you stop using the system and buy into something else.

Everyone is Unique

Ultimately everyone sees things from their own angle when looking at a chart and deciding on a trade.

If you are struggling to make trading pay, identify your fears, as this will probably help you to rectify at least some off your negative trading.

Also learning to trade with someone that actually walks the walk can pay back hugely. Someone that understands what trading is and what you need to do to get things right… having a good mentor in these situations is invaluable.

Take a look at Vince Stanziones course, it’s how I started out and I can’t recommend it enough for newbies.

If spread betting is a bit too adventurous at the moment, you can learn how to make money trading binary options with my course here.

In Conclusion

Trading can be easy, but it is the fear of losing that is the biggest hurdle to overcome for almost all traders. Manage your fears and the rest will fall into place.