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EP181: Trading Acceleration: Is it Good or Bad?
In this episode of Truth About FX, Walter talks about one of the biggest trading mistakes of all time: wanting to make more money quickly. What are the two mistakes most traders do in taking accelerated trades? And what are the solutions that you can make based on your system? You will also learn how the markets are correlated around the world… And is this a good thing or a bad thing for you?
Download (Duration: 05:45 / 13.8 MB)
In This Episode:
00:33 – still cautious01:07 – mistake number one02:23 – neural network04:45 – best way to mitigate
Tweetables:Don’t put too much money
@TruthAboutForex http://fxtr.co/an" rel="noopener noreferrer">[Click To Tweet].This is a big mistake [Click To Tweet].Develop another strategy [Click To Tweet].
Announcer: Sometimes, forex trading is a wild and wooly place to be. That’s why Hugh is here, to post your questions to Walter, the naked forex guy. Hugh’s got questions and Walter’s got the answers. Here at the Truth About FX Podcast.
Hugh: Hi, Walter. Somebody wrote in and asked, “How can I become more aggressive? I have a strategy that’s sound and has excellent expectancy but I’m still cautious about taking trades.”
Walter: This trader is saying he needs to be in more trades. I think this is a mistake, actually. This happens a lot. This is one of those things that comes up when you start making money and you know you’re going to make money. The next question is how do I make more money or how to make it faster?
The real concern here is, I actually talk about this in the Next Level Trading course. If you’ve seen the webinar, you’ll know we talked about this. This is a big one. This is something that all traders run into when you start making money. It’s like, “Okay, what do I do now? How do I build it up faster?” Here are the two mistakes.
Mistake number one is: I’m just going to add more risk. “I’ve been risking 1.5%, what happens if I’ll risk 3%? Wow! If I’ve been risking 3%, I would’ve made this much. Wow! I really need to do that.” That is mistake number one.
Mistake number two is: What I needed to do is get more markets. I need to get a whole bunch of more markets. I’ve only been trading this strategy on 8 currency pairs, what if I were trading 28?
Now here is the issue with 28 and look, I trade lots and lots of markets, that’s fine. But when you have one strategy and you think that you are diversifying by looking at multiple markets, you’re wrong.
Unfortunately, that is not going to work because all of the markets are interrelated. Whenever you see a really strong trend on the USD/CAD and then you see one on the GBP/USD, why is that? Because they both have the USD in there.
It’s amazing how correlated our markets are around the world. From The Hang Seng to the New York Stock Exchange, to the ASX In Australia. All of these markets are so interrelated.It’s because funds are looking for arbitrage opportunities.
All of these stuffs are basically equalized.
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By Walter Peters (FXJake) and Hugh Kimura (Trading Heroes)In this episode of Truth About FX, Walter talks about one of the biggest trading mistakes of all time: wanting to make more money quickly. What are the two mistakes most traders do in taking accelerated trades? And what are the solutions that you can make based on your system? You will also learn how the markets are correlated around the world… And is this a good thing or a bad thing for you?
Download (Duration: 05:45 / 13.8 MB)
In This Episode:
00:33 – still cautious01:07 – mistake number one02:23 – neural network04:45 – best way to mitigate
Tweetables:Don’t put too much money
@TruthAboutForex http://fxtr.co/an" rel="noopener noreferrer">[Click To Tweet].This is a big mistake [Click To Tweet].Develop another strategy [Click To Tweet].
Announcer: Sometimes, forex trading is a wild and wooly place to be. That’s why Hugh is here, to post your questions to Walter, the naked forex guy. Hugh’s got questions and Walter’s got the answers. Here at the Truth About FX Podcast.
Hugh: Hi, Walter. Somebody wrote in and asked, “How can I become more aggressive? I have a strategy that’s sound and has excellent expectancy but I’m still cautious about taking trades.”
Walter: This trader is saying he needs to be in more trades. I think this is a mistake, actually. This happens a lot. This is one of those things that comes up when you start making money and you know you’re going to make money. The next question is how do I make more money or how to make it faster?
The real concern here is, I actually talk about this in the Next Level Trading course. If you’ve seen the webinar, you’ll know we talked about this. This is a big one. This is something that all traders run into when you start making money. It’s like, “Okay, what do I do now? How do I build it up faster?” Here are the two mistakes.
Mistake number one is: I’m just going to add more risk. “I’ve been risking 1.5%, what happens if I’ll risk 3%? Wow! If I’ve been risking 3%, I would’ve made this much. Wow! I really need to do that.” That is mistake number one.
Mistake number two is: What I needed to do is get more markets. I need to get a whole bunch of more markets. I’ve only been trading this strategy on 8 currency pairs, what if I were trading 28?
Now here is the issue with 28 and look, I trade lots and lots of markets, that’s fine. But when you have one strategy and you think that you are diversifying by looking at multiple markets, you’re wrong.
Unfortunately, that is not going to work because all of the markets are interrelated. Whenever you see a really strong trend on the USD/CAD and then you see one on the GBP/USD, why is that? Because they both have the USD in there.
It’s amazing how correlated our markets are around the world. From The Hang Seng to the New York Stock Exchange, to the ASX In Australia. All of these markets are so interrelated.It’s because funds are looking for arbitrage opportunities.
All of these stuffs are basically equalized.