Hi Folks,

I had an exchange of emails yesterday with one of our live traders about PPAs. As a lot more of you are now trying these, I thought I would just talk a bit more about them.

PPA stands for Potential Profit Area, and it’s the area between barriers. Some PPAs are really wide – when the currency hits them it just seems to keep going. Others seem fairly small. If you are in a large PPA that is obviously good news, but mine tend to be about 30-40 pips, which isn’t that big really.

As you know from previous blogs, I keep my PPA barriers set up permanently on a separate profile, and so I see how the currency behaves – even with barriers that I set up years ago! Read More→

Hi Everyone,

It’s nice to see the newbies beginning to send in reports. Sid has changed the system recently, giving you all 2 weeks to play with the platform and no rules.

Now you are on level 2 please make sure you understand the rules – one forex trade a day, gowid, etc. Also please send in a report each day and remember to size your screenshots and sign off in the body of the email.

Some of you ‘oldies’ need to remember to size your screenshots too!

Starting off today with a couple of PPAs that came in late yesterday afternoon. I’m really pleased to see how many of you have had a go at these and are getting good results.

Hi Everyone – Kris here,

Well it’s a slow morning so far, as I write this, and it’s also holiday season with lots of people away, so not much in the Inbox. So while I am waiting to see if things wake up, I have time to write a quick update on PPAs.

I’ve been so pleased to see a lot of you have been having a go at these, and also being very successful.

But I would just like to add a quick warning. PPAs can go wrong just like correlation trades, and it’s just as important to trade safely. This means you don’t enter a PPA trade unless you can see good correlation and strong momentum. It isn’t only about the barriers!

And of course your know from our forex training course, our number one safety tool is still vital. If the trade doesn’t go the way you were expecting, you exit immediately.

Your top priority is always to safeguard your capital and NOT to try to make pips. Gowid keeps your account safe even when it sometimes makes you lose a few pips along the way.

How funny – after writing this I listened to Sid’s recording and he is saying exactly the same. Preserve capital!! ALWAYS the top priority for the trader.

Well, you see now what I meant! There was obvoiusly correlation and some momentum. So what went wrong? The moves weren’t established. If you trade a move like this you will make pips sometimes and lose pips sometimes. And that isn’t good enough!

We want to make pips nearly every trade, with just an occasional Gowid to keep our accounts safe.

So how do we do that? Well it’s back to the 3-legged stool.

These guys all knew what they were looking for and traded with the correct knowledge. Some of their discipline leg was good and some was a bit wobbly – we like to see Gowid for -1 or -2 rather than these larger amounts, but it isn’t always possible if you get a fast reverse.

The leg that wasn’t there was patience. You don’t just need to see correlation and momentum, you need to see that move has established itself.

Go back and watch Sid’s videos and see how patient he is.

Hi Folks,

I was thinking this morning about milking stools! As I am sure most of you know, the reason these stools traditionally have 3 legs, it so that they can be easily balanced on an uneven surface.

And I was thinking about this because I noticed a few larger than usual negative reports in this morning. A quick check showed there hadn’t been any significant moves during this time, though there were some short pushes that hadn’t got established.

This type of short move will maybe push for 10-15 pips, then stop. By the time you have got to the point of thinking of entering – it’s all over and it reverses.

What was the problem if you entered this type of forex trade?

Lack of patience.

Patience is one of the legs of our forex trading stool.

You all know the name of the second leg – it’s discipline and we call it Gowid once we have entered a trade.

So the third leg is knowledge and understanding what you are looking for.

If your criteria are too weak, this leg gets too short and the stool isn’t stable any more. Becoming over cautious, so the leg is too long, and again the stool isn’t functional.

To trade safely you need all 3 legs and you need all the ‘legs’ to be the right length.