In order to succeed in the trading business you need a sound methodology, common sense, discipline and a rock solid understanding that if you do not treat this as a business you have a ZERO CHANCE of long term success. I believe the statistics say that a very big percentage or of new businesses fail even when the entrepreneur knows what he’s doing. Do you really think trading Forex is going to be an exception and work for you after 3 months of practice or less?
Remember this: small trading accounts will probably not keep you focused to be super picky about your entries and you will almost surely find the same thing. Small accounts normally equals to over trading and YOU SIMPLY MUST LEARN TO BE PICKY ABOUT YOUR ENTRIES. Is there any solution? Force yourself to be ultra picky (virtually impossible) or follow the plan below while you are doing it.
If you are interested in this trading challenge and you want to learn Set and Forget’s supply and demand methodology, keep on reading. You will need to become a member of the community in order to participate in this challenge.
JOIN THE THE 3:1 CHALLENGE TO OBTAIN THESE BENEFITS
- My commitment to review your progress for 6 months if you complete all steps as described below
- A 1 month discount on your membership, minimum 6 months subscription. Why? The challenge will take you between 6-12 months to complete. If you commit to the membership, then I will commit to reviewing your progress, quid pro quo. Believe it or not, I am here to help, remember!
This small 12 minutes video demonstrates the power of risk reward and 3:1 exits:
If you are new to supply and demand trading or any other trading methodology, and/or you have had difficulty finding some consistent success, you must understand something. Trading is not a game; trading is not gambling and it’s not a way to get rich quick, even though many educators out there are selling you just that. If you approach the trading business without a business plan and the willingness to follow it, you are almost certainly doomed to failure. A doctor or a lawyer spends ten or more years in a very steep learning curve to be successful and earn a six-figure income; anyone who thinks that their success in the business is a couple of months down the road is going to have a rough time.
Below is a minimum requirement (in my humble opinion) to find out without losing your money if this trading business is for you. By following these recommendations, you will be treating trading like a business as well as learning and gaining. I believe this is so important:
There is no reason to ever lose a dime of your money while learning to trade. A well thought-out business plan, common sense and hard work is required for anyone who wants a chance to have success at trading. Many people meet those requirements and still fail, but it does not mean you have to watch your bank account go to zero.
Whatever you decide you must complete these steps at a minimum:
- Backtest the strategy for at least 3 months by using Forex Tester. This software can be used to trade any instrument, not just Forex. Rules apply to any instrument, Stocks, Indexes, CFDs, Commodities. First, you need to do your homework and learn about the methodology. A couple of fully concentrated hours a day, 3-5 days a week should be enough. DO NOT STOP back testing because you see that you are having success after a few days or a couple of weeks, that’s a big mistake. If after this process you are being profitable each and every month, proceed to Step 2
- Paper trade for 3 consecutive profitable months in a row making at least 3% a month. Entries on H4 and D1 timeframes. Do not stop using Forex Tester while you are doing this. You do not proceed to step 3 until completed.
- Open a small live account. Keep on trading the same trading plan that allowed you to succeed. If you are profitable 3 months in a row, proceed to fund your account with more money. You will never risk more than 1% of your account on any one trade. Do not stop back-testing even if you are trading a live account this. You do not proceed to step 4 until step two is completed.
If your trading account suffers a 10% drawdown, that is 10% percent of your account has been given back to the market. You must STOP trading. PERIOD. You should go back to demo and analyze all of your trades to figure out what went wrong. Withdraw the money from your live account and give yourself and your family a treat, at least you will enjoy that money and not lose it doing crazy things in the market.
Your goal should be this. Learn, learn and learn some more and don’t do anything stupid while you are in the process. The ultimate goal of any trader is to build an account to a size where just a few good trades a month produces a staggering income. Hardly anyone ever gets there because they don’t treat it as a business. We do stupid things that they would never do in any other area of their life and it’s because of the money that can be made. If it takes you a couple of years or even five or ten to reach the level of a staggering income, is it worth it? The choice is yours.
I am sure you can think of a million excuses for not doing this (job, kids, computer too slow, too tired after work, etc.) but you should put those excuses aside and commit yourself to the work. “A journey of a thousand miles begins with a single step”. Nobody said trading was going to be easy.
A SIMPLE TRADING PLAN
You need a plan, here is the one you must follow. Make it yours, embrace it and treat it with care because it’s as fragile as a glass of very thin glass. Follow these rules one by one and do not break them while you follow all the stages described under minimum requirements. This plan has nothing to do with your personal goals as a person, it’s just about the rules.
Believe that you can make it. 3:1 is a very reasonable target and relatively easy to obtain when trading with a clear trend on good levels. But have you ever experienced several consecutive months profitable executing a very simple trading plan?
Before executing this plan you need to complete Forex Tester forward testing Stage 1 described above.
- Risk per trade: 1% of your account balance
- Number of open trades at the same time: 4. That is a 4% risk
- Maximum loss per day: 4%. Stop trading after 4 consecutive losses. Analyze your trades and learn what you did wrong, if you are not sure, PLEASE ask in the forum
- Maximum drawdown: 10%. If you ever suffer the loss of 10 percent of your account, you stop trading. PERIOD. You should go back to demo and analyze all of your trades to figure out what went wrong. While doing this, you refund your account back to its original
- Monthly goal: 3%. Once you reach your goal 5% goal, STOP trading. You reached it the 5th day of the month? Congratulations, you have 25 days off this month! Enjoy your free time. When I say STOP, I mean STOP. Do something else, practice on Forex Tester, practice your favorite hobby or find new ones, stay away from your computer screen and trading platform
- Log all your trades. Make a log and safe a screenshot of both your entry and your exit on your entry timeframe and curve timeframe, that is 4 screenshots
- Stop trading on Friday right before the US Market Opens. Don’t add new H4 trades on a Friday afternoon, don’t take the risk of a Sunday open gap. This does not apply to Forex Tester trading
- Analyze all the trades taken during the week at the end of Friday. Turn off your trading platform and analyze your winners/losses, learn from them. Do it before Friday ends or when you some spare time during the weekend (better on Friday so that you completely disconnect from trading during the weekend)
Is a 3% monthly account growth enough?
Yes, it’s. You don’t have enough money to become a full time trader and earn your living with it? You are wrong. Others have the money, investors will kill to find a trader that makes 3% a month, they will kill. Focus on that. Money will come to you once you have a proven 3% account for at least 6 consecutive months, believe me.
SEPARATE DEMO/LIVE ACCOUNTS FOR DIFFERENT TIMEFRAMES
You’ll need separate demo/live accounts to test the H4 and D1 entries. We can’t and shouldn’t mix. This is exactly what I’ve been doing for months on my live H4 and D1 accounts, we need to separate them in order to get the right picture and analysis on each account. You may decide to make the tests and challenge only on H4 or only on D1, or both, you decide, but they should be separate.
LIST OF INSTRUMENTS TO TRADE
There are dozens of assets you can trade, but you need to focus on a few only. This is an important part of the trading plan, don’t try to trade all instruments. Remember that Forex is not the only market you can trade
Only trade these 15 instruments during the first 3 stages, you need to prove yourself that you can make it:
- AUD/USD, AUD/CAD, CAD/CHF
- EUR/USD, EUR/JPY, EUR/AUD, EUR/NZD, EUR/GBP
- GBP/USD, GBP/CAD, GBPY/JPY
- NZD/USD, USD/CAD, USD/JPY
- S&P 500 e-mini (if you have it on your broker)
Why only 15 instruments? It will prevent you from over trading. Don’t over think, don’t over-analyze. Learn that trading is boring is a very important stage on a trader’s career. Trading is boring, you are always doing the same thing over and over day after day. In order to get bored with trading you need a sound trading plan, the one laid out on this lesson is a sound, logical and common sense plan. However, you have to believe it in order to apply it.
THE 3:1 RISK REWARD CHALLENGE ITSELF
Follow this basic and simple trading plan for the months described on each stage at the minimum requirements zone. Keep us informed of your progress (I have created a new zone so you can track your progress, The 3:1 Trading Challenge.
A 3:1 exit is enough to make you profitable and earn a lot of money. But have you ever experienced it? No, never. Why? Because traders don’t want a 3:1, they want 10:1 on each trade. Greed is our enemy, our ego gets along very well with greed.
I hope that you see the sense of creating this lesson and a challenge for yourself. It’s a very simple set of rules and exits that will remove most emotions from your trading decisions and at the time will allow you to see that a 3:1 target is enough to become a profitable and successful full time trader.
SET AND FORGET’S COMMITMENT
I just wanted to let you know about an important thing that may be of interest to most of you, hopefully. It’s hard work for me, but I am here to help you understand how supply and demand works and on your trading. Money is secondary, a few euros is nothing, helping others is a LOT, it’s MUCH more gratifying than anything else.
- You have to create your own journal and track progress under the 3:1 Challenge Channel. Our dear member Mr. Robin Flow was the first one to start such a challenge. It would be great that you follow the same template that he’s created on his own journal.
- You have to follow all the stages, one by one as described on the challenge, Forex Tester, Demo mode and Live mode. Doing it is key. Maybe you will think it’s a waste of time, that’s up to you. How many times have you started to make things in your life and you didn’t finish them and looked back and said, what if I had not stopped doing what I had to do? I would be already be this and that… Don’t let that happen in your trading
- You have to log all of your trades, otherwise we won’t be able to revise them later, it will be impossible. Logging your trades will help you a lot on your trading
- Recording videos of your trades (optional but highly recommended). This will help you A LOT, and I mean a LOT. Even if you don’t share them as unlisted like I’ve done, it will help you so so much
- You’ll need separate demo/live accounts to test the H4 and D1 entries. We can’t and shouldn’t mix. This is exactly what I’ve been doing for months on my live H4 and D1 accounts, we need to separate them in order to get the right picture and analysis on each account. You may decide to make the tests and challenge only on H4 or only on D1, or both, you decide, but they should be separate
It will help you a LOT as well as others. Helping yourself is great, helping others is more gratifying. Your learning curve will get better, that’s for sure, as well as the confidence in the rules. This works not only on supply and demand trading, but on ANY strategy that you may have tried before. Why do most traders fail? Because they are not patient enough, they don’t have strict rules and they switch from one strategy to another hoping that the next one will be the holy grail one, but that never happens. ALL strategies work if you have a sound set of rules, correct money management and you take most of your emotions away.
I commit to reviewing your progress in the challenge personally. That is translated in quiet a few hours of work to help, but I love the idea and I love helping.
But you know the funny thing about it? The funny thing is that most of MOST will not accept the challenge, because you will not believe in it, you will not consider it necessary, and a few more reasons. I have something to say about that, let’s about about this in 6-12 months time and see where you are if you didn’t do things as you had to do, and compare your situation with those that DID do the things they knew they had to do. You can’t learn medicine and expect to make a heart operation after 1 year or 2 studying medicine, you will kill all of the patients. But we think we can be great price surgeons… ego… you know what I mean. It’s human nature, we need to fight against that, most can but they don’t want to.
Remember this VERY important thing: most traders fail because they don’t do what they know they have to do. A person with a good discipline but a poor trading method will outperform a person with a poor self-discipline but the best trading method currently available
You have a good method to follow, that’s not the problem. But do you have the discipline? Let’s find out.
That’s my commitment, it’s now up to you. I can’t force you to do this. I know what the result will be if you make it and which one if you don’t make it… but up to you! It’s funny to see that we always find the time to take wrong trades but we don’t want to find the time to work on improving and gaining confidence in our entries. We want to believe that we can’t make it with so much practice, but that’s our ego trying to play tricks with us. Listen to your thoughts!
JOIN THE THE 3:1 CHALLENGE TO OBTAIN THESE BENEFITS
- My commitment to review your progress every 3 months if you complete all steps as described below
- A 1 month discount on membership, minimum 6 months subscription with a 3 months renewal. Why? The challenge will take between 6-12 months, if you commit to complete it you have to commit to the membership, then I will commit to reviewing your progress: quid pro quo. Believe it or not, I am here to help, remember!
- REGISTER NOW to take advantage of this opportunity