I have started to record my trades and will be posting them to my YouTube channel. Check them out at:

http://www.youtube.com/user/skipw2000

Steve

Using Ninja Trader To Verify An FXCM Losing Trade

The other day I took an afternoon trade (Asian market) that quickly hit my stop, then reversed in the direction I thought the market was going. I was so angry because it seemed that my dealer, FXCM, had purposely stop hunted my trade.

I never should have been in the trade because of the announcement that was released during the trade. I forgot to check the afternoon announcements.

Although I shouldn't have been in the trade (because of the announcement), I couldn't believe price hit my stop without going farther, then went in the direction I picked based on my trading style.

So I decided to reply the trade using NinjaTrader. (See my article on practicing with NinjaTrader.) I'm glad I did, because it gave me more confidence in my broker, FXCM. When replaying the trade, NinjaTrader's data feed did exactly what my trade did with FXCM. Price hit my stop level, triggered my stop, then went the direction I thought the market would go.

I'm not happy I lost pips and profit, but I am more confident in talking trades with FXCM.

Trading Part Time Can Lead To Failure

I am convinced, based on my method of trading, that to be successful I need to trade full-time.

The other day I started out with a losing trade but ended the day with some positive trades.

Today, after a week and a half of trading well, (some wins and loses) I had a losing day. The day wasn't any different than the day mentioned above, except I had a loss from the start, then entered another trade too late because I hesitated. That trade turned into a loss also. After the second loss, I had to quit trading and go to my day job.

The two scenarios were the same with one exception, I had time later on in the day (had the day off) to make the money back. In other words, trading part-time is very difficult. Trading is a full-time endeavor.

Maybe that's why so many people fail at trading.

Hang In There...Don't Give Up

I've read and heard many traders describe their path to success. I download and listen to the Money Show's Trader Talk Podcast with traders interviewed by Tim Bourquin. He interviews different traders about their experiences, and I glean something from each one, even if the person is not a Forex trader.

With each trader who is interviewed, I've always wondered why it is so hard for them to answer the question of how long it has taken them to become a successful/profitable trader. When they are asked and answer, they give a vague reply. I've come to the conclusion that most of the traders he interviews is selling something and I think if they would truly reveal how long it took them to be successful, they would never sell their programs/services.

I had a former student (I'm a full time high school teacher) text me the other day about starting to trade the Forex and making money. We exchanged a few text about it, then I sent him a text indicating it is a very difficult endeavor, and it would take him hours and hours of practice and several years to become successful. He never responded to that last text.

This coming October 2012, will mark 5 years of trading for me. I consider myself part-time because I trade every morning 5:30 am to 6:45 am. Besides the trading time, I have put many more hours into learning the skill. I am still not successful, winning and losing trades, loosing more than winning. I get frustrated and angry with myself, wanting to quit. But when studying successful people I have found that in most cases, it's not some magical talent they have that makes them successful. No, in most cases they have paid the price of practicing for hours at their endeavor, not giving up when they failed.

I guess to sum this post up, although I am not where I want to be in trading, I'm not going to let failure ruin my chances of success. I have committed to making trading a life-long endeavor and I know I will eventually succeed.

Using NinjaTrader Simulation to Practice Forex Trading

Practice make perfect is the old cliche. Trading is a competitive activity like sports. Some great trading psychologists/coaches are former sports psychologist. So if both activities are related, how can we practice trading like the great athletes do before they compete in their sport?

You can demo trade, which is sort of practicing, but not quite the same experience. The best way to practice trading would be in simulation mode. So what's out there to help a Forex trader practice?

You could invest in the Forex Tester, which currently is on sale for $149.00. I have tried the demo and it has some great features. For my style of trading, what it lacked, is seconds on the trade clock; very important for a scalper. After writing to them, they did say they could create a script or plugin to add seconds. But then there is a monthly fee if you need historical tick data, $22 - $37 a month.

Let me offer you a free program that I use that can help with trade simulation. I am not getting any compensation for recommending this program. It is a great tool that every trader should have. The program is NinjaTrader and can be downloaded at www.ninjatrader.com. It's a little tricky to figure out and use at first, but once you have played with it a few times, you will experience the benefits of simulation (practice) trading. Below is a quick video tutorial to get you started.

Best Way To Review and Reflect Your Trades

Well, for the third time this year, I have broke many of my entry/exit rules and tried to force a trade that didn't work. I am not writing this post to talk about my stubbornness, but to reveal one of the best ways I review and journal my trades.

After all three trades failed, actually, the second trade would have made up for the first loss if I wasn't so greedy and followed my rules--I was not in the mood to review and record my trades. It's hard to even think about trading when you are undisciplined and upset. So I decided to wait until Sunday morning to review and record the trades in The4xJournal. (These were Friday trades)

So here's how I was able to review and see all my mistakes. I use a program called Blueberry Flashback Express to screen record every trade I enter. I know there is a lot of software available to do this but let me explain the Flashback advantage.

This FREE program allows you to record sections of your screen, with or without sound. (I record only a section of my screen and without the sound, keeping the movie file size smaller.) If you keep the movie in the native Flashback Express format, a one hour movie is only 3 megabytes! This is small for a computer movie and the perfect way to record your trades.

I always convert my movies to Flash format, the only free export available on the Flashback Express version. Of course after converting the movie, the file size shoots up to 72 megabytes. Why do I convert them? Well I don't like the Blueberry Flashback Express player. I can't scrub (click and drag to fast forward) though the movie. So I use another free program called FLV Player to review my exported Flash movies.

Now the question is, do I archive or link them to journal entries in The4xJournal? The answer is no. Although I could archive them in The4xJournal, I prefer to put them in one folder on my computer, separating the native Blueberry Flashback Express files and FLV files in separate file folders. When I name the movie file, I put the date of the trade so I can always look up the trade in The4xJournal.

In American Football, after a team completes their possession of the ball, the quarterback on the sidelines flips through instant photos of the previous plays. After the game, the players review the recorded game video to see what they did right and wrong.

Just like any performance related activity, reviewing and reflecting to improve your skill is the key to success. That's why I record and review my trades and archive screenshots in The4xJournal.

BB Flashback Express

FLV Player