Back on Track

Okay…well…it’s Tuesday and things are still a bit hectic for me; however, I was able to finish up yesterdays lesson along with today’s…yippee!

Lesson 26 is all about setting up my chart for correlation trading.  Before Sid got to the video part of the program, he took time to give me another key for my future success.  He said 20% of the training is actually how to get pips, while the remaining 80% is about me…my psychological state if you will.  What is my mindset, and how am I going to approach my trading.  And, absolutely without doubt, DISCIPLINE starts here and now.On to the videos…These were very helpful.  There are two videos that showed me exactly step-by-step how to set up my trading platform for this type of trading.  These videos were so complete, that when I immediately went to my platform, there were no questions unanswered.  Awesome!  In correlation trading, we use more than one chart at a time, so Sid showed me how to set up my platform to synchronize the charts and place them on my screen form maximum efficiency.

Lesson 27 discusses when and when not to trade.  Sid lists the best timeframes to trade in, but states that you can actually trade at any time as long as there is movement in the market.  The times he gives are times when there is typically more movement, which is why he uses them.

I will not be trading during announcements.  In this type of trading, announcements are meaningless, except that we do not want to be in a trade during an announcement as there are too many uncontrollable variables happening at those times and I do not want to get caught out.

There is no magic formula for identifying trades, but rather I will need to develop a feel for this through observation and practice.  Sid says that is because it is more of an art than a science, and it is up to each individual to develop their own vision.

Lesson 28 consisted of 3 videos, about 30 minutes each, with Sid going through a morning trading session.  These videos are very helpful…in fact, I think it would have been quite difficult to explain or show correlation without them.  Sid used this time to show me techniques, and signs and to give me some hints on how to identify trading opportunities.  It is important to keep my cool and not just jump in.  Sometimes it may get boring, but patience will pay off in the long run if I keep my cool and wait for ALL the right criteria.

I think the most important key in this session was that I want to make my capital work for me, not me working for my capital.  I need to take the time necessary to develop the skill and instinct needed to be a successful compounder, and part of this means fully understanding that if I don’t trade on any given day, my capital will stay in tact, and I live to trade another day.

Another fascinating day in forex training…see ya!

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