5 Things I Learned During the First Week – EGM Trading Room

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EGM Trading Room

Week one is in the books. I’ve been trading all week with Casey Stubbs of Winner’s Edge Trading in the Explosive Growth Mentoring Series trading room. We’ve been trading the Forex market for the New York session – plus a bonus Asia session on Tuesday evening. Casey (and his sidekick Nathan) are personable and easy to talk to. They respond to questions with easily understood explanations. As a disclaimer, I must tell you that I’ve worked with these guys for years now and the guys you see in the trading room are the real Casey and Nathan, just regular down-to-earth guys.

I decided to condense the weekly summary into the five main things we all learned in this week:

1 Always Plan Your Trading Day

Start with an analysis of the pairs you expect to be trading. Drill down from the Daily and Weekly charts all the way to your preferred trading time frame. Identify the strong Weekly/Daily support and resistance levels below and above the current price. Identify the Daily and Hourly trends. Mark these levels on your chart so you can “see them coming” as price approaches them.

2 Determine Your Trade Size For The Day

Are you at an account level where you need to increase your trade size? Remember this will have a psychological impact on your trading. If you increase your trade size, your resulting profits/losses will be larger. So, watching bigger numbers will have some effect on your trading. Remember to allow for your “Three Bullets” so you can work yourself out of nasty situations.

3 The Three Bullet Strategy Reduces Stress

I’ve been trading for a long time. One of the worst feelings is to enter your long trade, set your stop and have the market drop down and hit your stop to the pip and then go directly where you expected it to go – without you. It’s like the market was specifically targeting you to make you lose. Well, more likely the market was just targeting a spot where a lot of traders had their stops, a few pips below support. The Three Bullet Strategy allows you to be wrong a few times and still make a profit. Even if your first position is negative, you can make profits with your additional positions as the market pops and drops. Eventually, you’ve made enough money on your additional “bullets” that you can just close the first position – even if the market never got back down to it – and still make a good profit on the trade.

4 Even Experienced, Professional Traders Have Bad Days

Casey has grown a $50 account 4500% in a couple of months to over $2300. He knows what he’s doing. He’s good at what he does. But Wednesday he got himself into a bad position. He worked diligently firing bullets and taking small profits, but the market wasn’t cooperating. Eventually he had to take a huge loss. Now it’s Friday and he’s made up about 95% of that loss already and is back in the game. It was a great example of how we should handle ourselves during an unforgiving market. Remain calm and fire your bullets (that should be a T-Shirt.) In the end, if you have to take the loss, shake it off and get back in there. They say you only fail at something when you give up trying. Getting back into the game is paramount if you want to be a successful, profitable trader.

5 Don’t Worry If You “Leave Money On The Table”

How many times have we closed a trade, thinking the move was done, and it continues on for another 50 pips? “I regret not getting into that trade.” “I wish I had just stayed in that trade.” “I wish that I hadn’t taken that position.” Regret will just drag you down. If you felt the move was over and it wasn’t, you may have “left money on the table”. But what about the times you were right and the move WAS over? If you finish a trade with money in your hand, you’ve won. There will always be another trade. Don’t ever waste your time regretting the past. You can’t change that one iota. Just take your cash and move on to the next opportunity. I guess that’s kind of a life lesson, isn’t it?

As I’ve said many times, I’ve been trading a long time. Most of what I learned in this trading room is not new to me. But I relearned many lessons and it has rejuvenated my trading. Thanks Casey. Looking forward to the next two weeks.

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