BFI Introduction to Trading (1/7)

The average human is not wired to properly trade the financial markets. We are wired in the worst way to be a consistently profitable trader. However, those crazy enough to attempt and acquire the skillset of trading financial markets, and specifically the $6+ Trillion Dollar Per Day Currency Markets, this education is specifically designed for them. If you properly absorb and assimilate the concepts within this course, you will begin to understand the way these markets move and then and only then will you be able to consistently profit from them, without experiencing any pain. You do not experience pain or discomfort when you go pick something up from a grocery story, or drive a vehicle. Sometimes you even forget you did it. A trader's goal should be not just consistent profits, but rather consistent profits that are pain-free; there is a big difference.

Repetition is how we learn. This course is designed to be taken more than once, and learn to identify what you have learned immediately on real charts. Every new concept being introduced should be taken immediately and applied onto real charts, in order to see the movements play out in front of us, which will further solidify your retention and understanding. Yes, you can backest, but I would much rather you forward-test live and see the movements play out in front of you as the days and weeks and months move along; and learn to benefit from the movements along the way.

This is a paradigm shift. This is a completely different view than the current majority and the retail set of eyes. Slanted lines and indicators do not help us understand the why things happen portion. This is not some get-rich-quick method or some new strategy or system that will make you rich. Nobody can give you that. This is just the proper lens to be viewing the price action from. However, you must develop your own style of trading, that suits your personality and requirements, in order to believe it, and then and only then can you apply it, flawlessly. Traders come in different types, and no two traders are alike. The successful trader is the one who understands the type of trader they are and they understand that their strategy and systems are suited for their own personality, and thus are confident enough to take their trades and let the probabilities play out in their favor.

Trading is only 3 things; finding a great deal, entering that great deal, and then letting that great deal play out. That is the simple rinse and repeat process and this entire course is about doing these 3 things, over and over again, effortlessly.

This course is split into 3 sections; Analysis, Flawless Execution, and Psychology. Consider these as three different planets and we will visit each one in extreme depth.

THE THREE PARTS OF TRADING;

ANALYSIS: In simple terms, this is all about finding great deals.

Identifying a valid setup on a chart; finding a great deal. This is an analytical skill. The key in this section is to conduct the analysis of a chart in the proper format, so that you have a simple step-wise process when performing an analysis. The sole purpose of this is to identify potential good deals, or “trade setups”, where one can buy something cheaply or sell something expensive. Your analysis determines how cheap is cheap and how expensive is expensive, relative to the overall context of the trade setup. All our fancy tools, tricks, and methods, are strictly related to “analysis”, which help us only to validate a potential trade setup. The entire analysis simply leaves us with three numbers or price levels; an entry level, a stop level, and a target level that corresponds to a potential deal.

FLAWLESS EXECUTION: In simple terms, this is all about entering great deals by using the three numbers from our analysis to execute the deal and input it into our trading platform and click. This act in theory takes less than 60 seconds. It could be this simple, but unfortunately most executions are very far from flawless; most are more similar to “random” execution. Everyone executes. A monkey can execute. But those who execute flawlessly and without the slightest hint of hesitation are few. In order to do that, we need to introduce you to a few entry methods and a step-wise process to follow. Understanding risk and proper position sizing when entering will also be covered.

PSYCHOLOGY: In simple terms, this is all about allowing the deal to play out. This begins post-entry; immediately after you click to execute and enter the market. Notice the difference between the state of mind pre-entry and post-entry; when there is money on the line and when there is nothing on the line. For some, even a candle that prints against them the moment after they enter may be enough to force them to bail out of the trade, and it truly bothers them when it ends up going their way. The “psychology” part of trading the financial markets is the most misunderstood and the least respected, although it is the most important and comes before all others. Your analysis can be perfect and your execution can be flawless, yet you may still fail to make consistent money. So, perfecting the “analysis” and the “flawless execution” is not enough. The psychology of trading, and the ability to allow the deal to play out as your analysis has determined, must be deeply understood. The human desire to self-sabotage and repeatedly do that which harms them must be understood at the deepest neuronal levels in order to fix it.

Let us begin.