Truth About FX

pspan style="font-weight: 400;"In this special episode of Truth About FX, Walter is joined by a colleague and friend, professional forex trader Enho Kuo. They talk about ways of overcoming your trading barriers through psychology — particularly a very special one that he had when he was just starting./p

pEnho also shares his trading forte, fundamental analysis, and why this has been a game-changer for him. And, sis you know that trading can also help you with your diet and loose those extra pounds?/span/p

pa title="Download" href="http://media.blubrry.com/truth_about_fx/content.blubrry.com/truth_about_fx/TAFX_-_EP89_Fundamental_Forex_Trader.mp3" target="_blank" rel="nofollow noopener noreferrer" download="EP88-Fundamental-Forex-Trader.mp3"Download/a (Duration:  57.14 / 65.5 MB)/p

pIn This Episode:br /

00:46 – trading and dietbr /

03:44 – reflectionbr /

07:57 – career shiftbr /

10:17 – the corebr /

12:09 – repeated actionbr /

14:56 – old habitsbr /

17:22 – trading journalbr /

20:39 – cycle of doombr /

22:19 – lazy shortcut mentalitybr /

27:45 – pushing yourselfbr /

29:43 – forward testingbr /

33:13 – sentimental eventbr /

35:25 – nothing has changedbr /

38:05 – different scenariobr /

42:00 – eliminating losersbr /

43:19 – psychological analysisbr /

45:08 – wheel of painbr /

48:56 – risk-aversebr /

51:15 – strength versus weaknessbr /

53:42 – trader’s attitudebr /

55:07 – trader’s mentality/p

pTweetables:br /

span style="font-weight: 400;"Trading happens outside the market /spana href="http://twitter.com/home/?status=Trading happens outside the market via @TruthAboutForex http://fxtr.co/6p" target="_blank" rel="noopener noreferrer"[Click To Tweet]./abr /

span style="font-weight: 400;"Best trading strategy: write a journal /span a href="http://twitter.com/home/?status= Best trading strategy: write a journal via @TruthAboutForex http://fxtr.co/6p" target="_blank" rel="noopener noreferrer"[Click To Tweet]./abr /

span style="font-weight: 400;"Shift and eliminate the bad habits /span a href="http://twitter.com/home/?status= Shift and eliminate the bad habits via @TruthAboutForex http://fxtr.co/6p" target="_blank" rel="noopener noreferrer"[Click To Tweet]./a/p

pbAnnouncer:/b span style="font-weight: 400;"Sometimes, forex trading can be a wild and wooly place to be but forex trading doesn’t have to be the bad lands for your partner instead hunker down and bend your ear. You will be burning the breeze in no time. Here at the /spanspan style="font-weight: 400;"Truth About FX Podcast/spanspan style="font-weight: 400;"./span/p

pbWalter:/b span style="font-weight: 400;"Welcome! It’s Walter here. Today, we have a very special guest. A private trader, Enho Kuo, from Canada. Enho has a really interesting journey that he’s going to share with us. Not only that, he’s going to show us how he’s been using fundamental analysis in his trading and why this has been a game changer for him. He’s going to talk about how trading is similar to diets and trying to lose weight. /span/p

pWe’re also going to talk about how there is this one barrier that Enho and many other traders have found in their trading. Once you get around in this barrier, it really opens up your trading and can open up consistent trading results for you. Enho will show you what he did to get around this barrier and what his solutions were and you can see if that may work for you as well./p

pFinally, we’re also going to talk about the time frame that Enho uses as a key resource for his trading.

CLICK HERE TO MEET DENIS AT THE LONDON CONFERENCE

In this special episode of Truth About FX, Walter is joined by a colleague and a professional fund trader, Denis Switalski. They dig into the psychology of trading and how it differs for everyone, and support and resistance and how that reflects your life. Denis also shares his story of how he got the attention of three major private funds and his journey as a protrader.

You will also get the chance to a catch a glimpse of his most talked-about trading method among retail traders and how psychology plays a critical role in his success.

Download (Duration: 52:30 / 60.0 MB)

In This Episode:

01:29 – critical to success

04:10 – bias thinking

06:52 – systematic and discretionary

10:05 – mistake to browse

13:02 – feedback

16:22 – commission and activity

19:22 – raw behavior

22:32 – drawdown to solve

25:02 – same trade but different

28:06 – location

31:58 – universal concept

34:02 – chart popularity

37:27 – financially immature

39:49 – be prepared

41:42 – time consuming

45:20 – be skeptic

47:01 – infinite risk

48:47 – patience

51:10 – a little world

Tweetables:

Best advice: be a naked trader [Click To Tweet].

Be patient and build your own system  [Click To Tweet].

Success occurs when opportunity meets preparation

 [Click To Tweet].

Announcer: Sometimes, forex trading can be a wild and wooly place to be but, forex trading doesn’t have to be the bad lands for your partner. Instead, hunker down and bend your ear. You will be burning the breeze in no time here at the Truth About FX Podcast.

Walter: Welcome! It’s Walter and today we have a very interesting trader, Denis Switalski, who trades very similar to the way that I do. But, beyond that, I think that Denis has some really interesting things to say around the psychology of trading.

We are going to talk about the psychology of trading and how it differs, how what we want to do as traders is not always something that’s going to be the most profitable for us. Denis is also going to talk about support and resistance in the world and in the trading world in our charts and how that reflects throughout life.

He is also going to talk about how he got the attention of three private funds. Denis, today, is now a protrader and he’s going to talk a little bit about how that happened for him.

He’s also going to say a little bit about why he doesn’t listen to the comments that he gets from retail traders when they are talking about his method of trading. And, he’s going to show you little bit about the psychology of trading, the way that he does, and why this is so critical to his success. So, welcome to the podcast,

CLICK HERE TO MEET CAROLINE AT THE LONDON CONFERENCE

In this episode of Truth About FX, a special guest joins Walter and talks about how she transitioned from being a corporate into exploring the wide and complex world of trading. Caroline Hui shares how her background in banking and private companies gave her a different perspective in trading. Is trading really a gamble or is it just another college homework?

They also dig into hedge funds, private funds, and brokerage. You will also find here the golden rule for retail trading and how to tell which one is a legitimate broker and which one is not…

Download (Duration: 45:02 / 51.5 MB)

In This Episode:

00:50 – wide range

02:50 – locked in

06:08 – other players

09:16 – go unlimited

12:20 – big correction

15:06 – waiting

19:00 – competition

21:40 – being watched

25:01 – a bridge

27:37 – market makers

30:09 – new blood

32:20 – no saint

37:26 – too conservative

40:28 – sleep and trade

41:09 – fit the size

43:58 – understanding yourself

Tweetables:

Spend time for meditation and examine your thinking process [Click To Tweet].

Find your strategy and combine it with your character  [Click To Tweet].

Understand what your goals are  [Click To Tweet].

Announcer: Sometimes, forex trading can be a wild and wooly place to be but, forex trading doesn’t have to be the bad lands for your partner. Instead, hunker down and bend your ear. You will be burning the breeze in no time here at the Truth About FX Podcast.

Walter: Welcome! It’s Walter here and today we have a really special guest. It’s Caroline Hui. Caroline has an interesting story — don’t you, Caroline? — about how you’ve been doubling in different areas of the trading world. Welcome!

Caroline: Thank you. Thank you, Walter, for having me.

Walter: I would love to hear a little bit about your story, your background, in how you’ve got into trading and how you’ve been in different areas of the trading world because you have actually a wide range of experiences, don’t you?

Caroline: I am not sure whether it is wide or it just happens through this way like a natural puff. Basically, I am a Professional Accountant and about 4 years ago, I have decided to come back into the full time accounting world as opposed to part-time consultant.

My kids were older and I thought in order to be able to train them to be independent, I need not to be at home. That is why I took Accounting Manager, Roe, with a software company which has become very successful here in Canada.

I think they just recently won the top award for being the Best Cultural Fit Company in the whole Canada. Anyway, having said that, I joined them while they were having the growth...

CLICK HERE TO MEET ALEX AT THE LONDON CONFERENCE

In this episode of Truth About FX, Walter talks about trading affirmation with one of his best colleagues, Alex Upton. Alex shares his experience as a private trader and how being a professional judo athlete was able to help him shape his trading mindset. Walter asks about trading catalysts and explains about the psychology of the subconscious mind and how it really affects the decisions you make.

You will also find here how choosing your wife or husband can help you straighten your trading goals.

Download (Duration: 46:10 / 52.8 MB)

In This Episode:

00:41 – a high level athlete

02:58 – 100 techniques

03:41 – judo training and forex testing

05:17 – patchwork style

08:35 – competitive element

11:36 – problem with fractions

16:17 – outside of awareness

19:56 – priming yourself

22:07 – unfortunate position

23:22 – liminal space

25:10 – public speaking

28:19 – balance

30:46 – speed dating

32:47 – magical and mystical

35:16 – coincidence

38:43 – friendly fire

40:54 – eye opener

42:50 – sports and trading

Tweetables:

Let your personality beliefs come into play [Click To Tweet].

TLook for your trading catalyst  [Click To Tweet].

Remember, affirmations prime your mind  [Click To Tweet].

Announcer: Sometimes, forex trading can be a wild and wooly place to be but forex trading doesn’t have to be the bad lands for your partner instead hunker down and bend your ear. You will be burning the breeze in no time. Here at the Truth About FX Podcast.

Walter: Welcome! It’s Walter here and we’ve got another presenter. One of my favorite people,  Alex Upton, is a private trader. He has spent a lot of time working on psychology of trading, working on his mindset. He is going to share some of his techniques with you in a moment.

He is also a high level athlete. He is a judo athlete and he is going to talk a little bit about how this area of his life actually transitioned him to trading. I think you will find it fascinating and I want to welcome you, Alex. How are you today, Alex?

Alex: I am very well. Thank you, Walter. How are you?

Walter: Great! Alex, just so people get a bit of an idea of your background because I know you spent a lot of time working on your mindset, can you tell us a little bit about why this has come about for you? Where does this come from? This approach?

Alex: Okay. It is probably best if I introduce myself and tell a little bit about how I became a trader. It is strange. When I start up, you think this has got nothing to do with trading but it all comes together in the end.

All my life, my big goal was to be a judo player ever since I was 8 years old. That is what I would call my high priority in life. By that, what I mean is that that was the one thing I would...

In this episode of Truth About FX, Walter talks about trading strategies and the key factors to look at when making your own strategy. What are your goals? What are the thing that you should avoid?

You will also hear about one of the forum’s member, David Franklin, and his unique trading strategy and how this might help you find your edge. All this and more in this episode…

Download (Duration: 03:52 / 4.42 MB)

In This Episode:

00:39 – sounds weird

01:39 – chop down

02:11 – in and out

03:31 – a big mess

04:27 – one bullet

Tweetables:

What is your goal? [Click To Tweet].

Try to avoid trading the lower timeframes  [Click To Tweet].

Take only one bullet.  [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. I know that you trade on the daily and on a longer term chart but, do you have a favorite day trading or scalping strategies?

Walter: Yeah, that’s interesting that you’ve mentioned this. In the forum, we’re actually going to bring in someone who has — I know it sounds weird but — he’s going to talk about his daily scalping strategy.

It’s weird what he does. I think he closes his trades the next day so it’s like a one candle deal. You take the signal, you take the trade and then, at the end of the day, you basically close your position out.

It’s like scalping because it’s in and out but because it’s the daily chart, it’s weird but that would be interesting. I could probably see about putting a link up to that

In this episode of Truth About FX, Walter digs into backtesting and the possible answer to this question: does it matter when the charts close? According to him, it all boils down to what you’re really looking for in your trading. What are your goals? Does your current timeframe fit with your habits as a trader?

Download (Duration: 03:52 / 4.42 MB)

In This Episode:

00:40 – basic choice

02:23 – really solid

03:15 – simple system

Tweetables:

Make sure that those candles are really solid. [Click To Tweet].

It depends on which timeframe you are trading.  [Click To Tweet].

Does my data fit with what my charting package shows?  [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. Does it matter when my chart close? Should my backtesting use the same closing time?  

Walter: That is an interesting thing. If you are trading the daily charts or the weekly charts, it’s probably not going to matter that much although the basic choice you have to make is, “Am I going to have a 5 pm New York time close on my daily chart or is it the midnight GMT?”

What that usually means is that if you use the midnight GMT close, obviously, your daily candles will look a bit different and your weeklies as well but what end up happening is you get a little, tiny candle on your charts.

It’s like a 2-hour Sunday candle, if you trade with midnight GMT. If you trade with New York 5 pm close, you do not get that candle which is really the only reason why I prefer the 5 pm close.

It depends on what you’re after now. If you are trading — let’s say that you are trading like a 4-hour candles — you have to wonder, “What should I do here? I don’t know if my data fits what my charting package shows.”

I believe that, in essence, what you’ll end up seeing is maybe you see a few more trades on one than the other but then you’ll see a few more on the other timeframes as well. It’s not that big of a deal but I do think it becomes — the data that you are using in your backtesting — becomes more important as you get lower and lower in your timeframe.

Here’s why I say that. If you are trading like the one-hour, obviously, it doesn’t matter. If you are trading the 4-hour or the daily, it’s going to matter a bit on when you close, when your charts close.

If you’re trading 5-minute candles or 15-minute candles, anything under an hour, you probably want to get some really good data in there. That means you might have to pay for it. It may not be free for you.

So, you want to make sure that those candles are really solid because if they’re not, you can really mess yourself up in your backtesting because, remember, you are paying a higher commissions when you do that too.

When you start trading the lower timeframe, you’re going to pay more in commissions.

In this episode of Truth About FX, Walter talks about the key points when looking at trend entries — and even exits.What kind of system are you trading? Which timeframe suits your lifestyle? He also talks at the different opens and how each one differs from another.

Download (Duration: 02:34 / 2.94 MB)

In This Episode:

00:32 – it depends

01:22 – the bulk

02:08 – doesn’t matter

Tweetables:

It really depends on the system. [Click To Tweet].

Test yourself and see for yourself.  [Click To Tweet].

What kind of system you are trading?  [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. When is the best time to enter a trade?

Walter: Well, that is a loaded question. If I’ve ever heard one, that’s pretty funny. It depends on what you are trading. It really depends on the system. If you are trading a breakout system, you’re probably looking at trading on the lower timeframes.

When I say lower, I mean like an hour or under. You’ll probably be looking at around the European open, London open, that’ll probably work, or possibly the New York open. If you are trading daily charts, I have a found and many of my students have found and they’ve posted all their data as well that shows that if you are trading the daily charts, you probably don’t want to get in on a Monday or Friday.

Also, if you are trading the weekly charts, you probably don’t want to get in on a Monday or Friday. You should test yourself and see this for yourself but, typically, we’ll see the high or the low of the week may kind of in those Asian session on those Fridays and Mondays.

What those means is the bulk of the weekly candle, which is what you are trying to take advantage of as a weekly chart trader or a daily chart trader, the bulk of that is usually in the middle of the week.

Those large moves, it’s not perfect, okay. Sometimes, the market’s going to go and make the high of the week on Wednesday or whatever but, then maybe the low of the week was made on Monday.

So, these are the sorts of things you need to look at if you were trading some sort of trend following system. Maybe it doesn’t matter as much if you have the long term point of view.

Maybe you get clicked in on a Monday and it retraces and then you end up being okay two weeks later or something, I don’t know. Really, the easiest way to know is based on what kind of system you are trading.

So, if you’re trading a swing trading system, it probably does not matter as much. Like, let’s say if you are doing a 4-hour swing trading system, it probably does not matter as much an 8-hour chart swing system. But, if you are trading the daily or the weekly, I would say stay away from Monday or Friday.

If you are trading the breakouts, I would definitely say, look at the opens. The open of the London, the open of New York.

Hugh: Okay, cool. Thanks, Walter.

In this episode of Truth About FX, Walter gives insights about trend systems and some of the key factors to look at when studying historical data. How far should you go back when looking at track records? What are the important things to take note when looking at trading systems?

Download (Duration: 04:21 / 4.98 MB)

In This Episode:

00:26 – money manager

02:04 – sideways chop

03:15 – bit shady

Tweetables:

What sort of drawdown are you willing to withstand? [Click To Tweet].

Do I find a new system?  [Click To Tweet].

Look at the type of market.  [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. When we bring the track record of a money manager or a potential copy trading signal, how long of the track record should I look for?

Walter: Yeah, that is a good question. I wouldn’t necessarily put a number on that. I mean, you could say 12 months or 24 months or whatever but I think what you really want to see is — let’s just say that someone is only trading the Euro.

Let’s say, that the Euro has been mostly on an uptrend over the last 12 months and you see his 12-month track record. Immediately, you’ve got to take a look at what’s going on here.

Is this a trend system that does really well in a trend market we had mostly at trend over the last 12 months? Well, that’s going to change at some stage and it’s going to go sideways and then what’s going to happen to this account?

Or, the other thing, we look at how many trades. I have a good friend, Denis, and he was — I do not know if he still is but — he’s the number one signals provider on a certain forex signals platform where you can sign up and lock your account into his stuff or anyone else’s.

He doesn’t trade that often. He did really well for the first year then, he hit a drawdown early this year and he know that’s an issue. That was mostly something that people hadn’t seen on his account.

Now, he backed out a bit and he’s doing well, of course, but that can affect him. That can affect the people that are following his signals. If you have a system that trades once a month then you’ve got 2 or 3 losers in a row, that is a 2 or 3 months of a drawdown and that can be a little bit tricky.

There’s a lot of things to look at. I would look at frequency of trades, I will look at what style of market has this track record bent through. Has it bent through sideways chop? Has it bent through a trending environment? Has it bent through a really tight, tight market or has it been through a volatile market or is it really quiet?

You look back on the NZD in 2003-2004, it’s pretty quiet. You really need to look at what kind of market it is. Beyond that, I really think that what you needed to do if you’re going to follow someone else and lock your account onto their trades, what I would say is you need to decide what sort of drawdown are you wi...

In this episode of Truth About FX, Walter goes dip into live trading experience and execution. Whn do you say that you’re ready to trade the real thing? Walter also shares what keeps his trading excitement burning and how he tackles those lonely times when the markets are asleep.

Download (Duration: 07:02 / 8.04 MB)

In This Episode:

00:43 – great progress

01:33 – keen to jump

02:06 – graduated account

03:23 – excitement

04:43 – magic system

05:48 – create and try

Tweetables:

Focus on how did you execute your trade [Click To Tweet].

It’s all about position sizing  [Click To Tweet].

You don’t have to be trading all the time.  [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. Here is a good question that we’ve got, this person is asking: I wonder if a new trader like me should stop trading if I reach my monthly goal or continue taking trade just to get more experience. What do you think about that?

Walter: Yeah, this is a really good question. This trader, I’ve known him for a while and he’s making great progress but, I guess the main point here that I would dig into is this idea of trading in your live account to gain experience.

I think that there are some truth to that but I believe that the bulk of your experience as a trader should come through other means. What I mean by that is — again, if you’ve heard this before — I am a big proponent of forex tester, then demo account, then a small, tiny, teeny money account and then your live account.

You can even put more phase to it like a medium size account before you go to a live account, if that is something that you really want to but most traders aren’t going to do this. And so, when most traders don’t do this, they look to their live account to get their experience as this trader is suggesting.

I am not saying that he’s a bad trader because this is really a common thing. People aren’t keen to jump into the live money trading and they want to take advantage of their system when they are convinced that it is going to work but the problem with that is when you hit a drawdown, it’s going to shake your confidence.

It’s not going to be the same as if you’ve had 700, 800 trades in the bank from forex tester. Another 200 trades in the bank from your demo account, another 2 or 300 trades from your small money account.

That is the kind of thing. I think that only comes with experience and building up your experience by taking those graduated account is really the way to go. So, what I told him, I said, “Look”, — obviously this came through on text message, I just text him today — and I said, “Look man, you really” — because he’s hitting his goal — I said, “look, you really should be like, all the deciding stuff should happen when you are testing out new id...

In this episode of Truth Abou FX, Walter unlocks a door on the best way to increase returns and trade consistently. Are you looking at the whole picture instead of just the tiny pieces? Walter also drops off some important methods on how to avoid dradowns in this episode…

You will also find here the best place to find the perfect broker for you.

Download (Duration: 03:56 / 4.50 MB)

In This Episode:

00:30 – where to start?

02:07 – fall all the way

03:23 – different systems in different markets

Tweetables:

Work on your position sizing. [Click To Tweet].

Add multiple markets to your trading.  [Click To Tweet].

Look at how you can possibly avoid the drawdown  [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, my trading method has been pretty consistent but I would like to increase the return in my system. Where should I start?

Walter: This is the carrot that the people look at and they forgot to look at the stick so this is all about risk management. This is about position sizing and I know it’s boring but position sizing is where you will find — probably once you find your system and you’re really bored with your system — digging into position sizing is where you’re going to find the biggest gains in your trading.

It‘s really the key to unlocking where you want to go. The answer to your question is essentially position sizing. You have a consistent system, you’re confident in it, sounds like it’s coming through to this question.

What you needed to is you need to work on your position sizing. Now, instead of looking at how to increase the returns, I would suggest that perhaps you want to look at how you can possibly avoid the drawdown that will send you into the poor house or into a mental state where you want to stop trading or where you’ll start thinking this, “the market have changed, my system does not work anymore.”

What percentage of drawdown would send you into that state? Most people overestimate the drawdown they’re willing to accept. Someone might say, “Well, I can take a 35% drawdown”. Maybe but I think, it’s probably closer to 20 for most people.

I remember, if you’ve got 200,000 in your trading account, a 20% drawdown that’s $40,000. That is a lot of money to many people. A 35% drawdown, if you’ve built your account upto $200,000, that’s $70,000, that is a lot of money to a lot of people.

That amount might be enough for you to freak out in watching your $200,000 account fall all the way down. It is something that you should definitely take a look at. Can you trade a $200,000 account down to $130,000 and still keep trading normally?

Most people would say no to that so go to the calculator at the bottom of this episode in the shownotes, click on that calculator and what you want to do is look at what kind of drawdow...