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EP64: How to profit from a single trade a month?
In this episode of Truth About FX, Walter talks about ways to reap profits even if you only have one successful trade in a month. He also talks about the human psychology about what holds you back from trying to take on other markets and exploring other options.
Download (Duration: 05:24 / 6.18 MB)
In This Episode:
00:49 – gambling mentality
01:57 – spiral of trying
04:12 – real focus
05:08 – downfall
Tweetables:
Get a broker who will let you trade all the other markets. [Click To Tweet].
Get really good at trading one pair then expand your horizons. [Click To Tweet].
Remember: Accounts are not built overnight. [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. This question comes from a trader and this person is asking… They basically backtested a system and they only got one trade per month. How are they going to be getting money on this trade? It is insane, basically.
Walter: Yeah, and that is a pretty common one. Let’s talk about this. There’s a couple of things that really get traders into trouble. Number one is getting into that revenge trading or gambling mentality.
The easiest way to do that is to sit down and trade the five-minute charts. It’s true. Have you done that before?
Hugh: Yeah. I’ve tried the one-minute chart and the five-minute chart. It’s crazy.
Walter: Yeah, I have too. I probably have the same experience as you. Here’s the thing. Actually, just setting this aside, I was talking to a trader — I recently went and met some traders over in the UK.
He trade the scalping system and what he does is brilliant because he says “Look, what I do is I allow myself one trade.” He trades, basically, the scalping system during the Asian session so that is a night in London — that’s a night time in London.
What he does is he goes “Look, if I get a trade that is a loser, my first scalping trade is a loser then that’s it. I shut down my platform and go to sleep, that’s it. No more.” But, if he has a winner then he’s allowed to take another one.
I think that is brilliant because if you are disciplined enough to stick to that, that is the way that you avoid getting into that spiral of trying to make it all back on the next trade and all that sort of stuff.
The reason why I think trading these system that do not offer very frequent trades is because you are avoiding that gambling mentality. When you do trade lower timeframe, it activates the different area of your brain.
I’ve got a whole webinar on this and I’ll post it in the shownotes. If you really want to see the neuroscience behind it, you can click on that video below this episode and have a look but, for right now, I just want to point out that just because you get one trade per month on this system doesn’t mean that you can’t trade thirty three different markets.
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By Walter Peters (FXJake) and Hugh Kimura (Trading Heroes)In this episode of Truth About FX, Walter talks about ways to reap profits even if you only have one successful trade in a month. He also talks about the human psychology about what holds you back from trying to take on other markets and exploring other options.
Download (Duration: 05:24 / 6.18 MB)
In This Episode:
00:49 – gambling mentality
01:57 – spiral of trying
04:12 – real focus
05:08 – downfall
Tweetables:
Get a broker who will let you trade all the other markets. [Click To Tweet].
Get really good at trading one pair then expand your horizons. [Click To Tweet].
Remember: Accounts are not built overnight. [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. This question comes from a trader and this person is asking… They basically backtested a system and they only got one trade per month. How are they going to be getting money on this trade? It is insane, basically.
Walter: Yeah, and that is a pretty common one. Let’s talk about this. There’s a couple of things that really get traders into trouble. Number one is getting into that revenge trading or gambling mentality.
The easiest way to do that is to sit down and trade the five-minute charts. It’s true. Have you done that before?
Hugh: Yeah. I’ve tried the one-minute chart and the five-minute chart. It’s crazy.
Walter: Yeah, I have too. I probably have the same experience as you. Here’s the thing. Actually, just setting this aside, I was talking to a trader — I recently went and met some traders over in the UK.
He trade the scalping system and what he does is brilliant because he says “Look, what I do is I allow myself one trade.” He trades, basically, the scalping system during the Asian session so that is a night in London — that’s a night time in London.
What he does is he goes “Look, if I get a trade that is a loser, my first scalping trade is a loser then that’s it. I shut down my platform and go to sleep, that’s it. No more.” But, if he has a winner then he’s allowed to take another one.
I think that is brilliant because if you are disciplined enough to stick to that, that is the way that you avoid getting into that spiral of trying to make it all back on the next trade and all that sort of stuff.
The reason why I think trading these system that do not offer very frequent trades is because you are avoiding that gambling mentality. When you do trade lower timeframe, it activates the different area of your brain.
I’ve got a whole webinar on this and I’ll post it in the shownotes. If you really want to see the neuroscience behind it, you can click on that video below this episode and have a look but, for right now, I just want to point out that just because you get one trade per month on this system doesn’t mean that you can’t trade thirty three different markets.