Problems

#1 Lack trading structure
#2 Underperform early in week
#3 Taking bad trades

Desired Results

  • Professional mindset
  • Preparation process is run 30 minutes before every event
  • Remove variables of week-to-week trading
  • Trade relevant size to event
  • Trade smaller on Monday and Tuesday. Trade a half lot at a time, unless it is a tier 2 or tier 3 event.
  • Follow rules before, during and after event
  • Improve trading skills by using time efficiently

Day-to-Day Maintenance

Turn on audio on drive to work and at work. Listen to it once on Saturday and Sunday each.

Timeline

Timeline should cover: process development, feelings, progress

Week 1 + ( Oct 5 – current)

  • As of Oct 5, account is at -4.33% year to date. From Jan 6, 2017.
  • Initial interview conducted
  • Project structure built
  • Audio program built: Currency Trader Audio
  • Client feedback: “Listened to audio a bunch of times. Reminded me of a bunch of stuff. It helped quite a bit. My focus was better, my preparation was better, everything was better. I listened to it before (in prep period) and while I was trading for a while. Helped me get into thinking better and more structure. I was a lot more aware of my emotions.”
  • Oct 18. 2017 – “Happy with way I am trading, but trying to get too many pips. Issues: trying to get too many pips out of tier 1 moves. And letting gains turn into losses. Quite pleased with how I am trading since we started this project. There are things we can improve, but even the baseline has helped me big time.”
  • Oct 20, 2017 – Been trading non-events this week which caused some losses. Added $100 punishment for trading non-events. And create a schedule for allowed events to trade at start of week. Four hour time minimum per day.

Mental Game

Philosophy: Trading is a craft.

Motivation: use audio structure

Audio structure: 

  1. Problem
  2. Desired Results
  3. Philosophy
  4. Benefits to project
  5. Benefits to trading
  6. Preparation

Benefits to project.

  • Less stuff falls through cracks
  • There is continuity from week to week.
  • Trading well early in the week. Starting on a strong note.
  • It builds consistency, which builds success. One good trade or one good anything is not success. Success is consistency. It is doing the right things over a long period of time. Every day.

Benefits to trading

  • It is a lot of fun
  • It is complex
  • There is no formula
  • I can be just as good as the very best
  • Always trying to figure out a puzzle
  • Don’t have to get dressed up and go to an office
  • Flexibility of hours
  • Able to earn a pile of money

Fallback Plan

Fall back to conversation.

The Circle + 80/20

  • Experience: 21 months trading, studying trading for 17 years, Growth Project, Food Project
  • Equipment: office, laptop, second monitor, Android phone
  • Software: FX trade desktop, FX Journal
  • Definitely works: trading proper size relative to event, audio system to keep focused daily,
  • Possibly works: trading scheduled events
  • Defintely doesn’t work: trading non-events

Outside the Circle

Practicing Fractites each day, during four hours

Behind-the-scenes

Layers: audio, sheets, calls, track performance when using audio/5 scenarios vs not

Preparation

  • Requires humility. You need this to trade well.
  • This audio is preparing your brain to run the correct programs. You load them up so they are ready to run. These programs allow freedom during the trading event.
  • Preparation needs to be done every single day. Because each day you are reinventing yourself and your ideas. Yesterday’s ideas box you in. Work on today’s canvas.
  • At beginning of week, print out schedule for week’s events.  You only trade planned events. Not surprise events or unplanned trading events.
  • Set levels: important points to trade up to or trade down to
  • Set tier 1, tier 2, tier 3 levels to gauge reaction
  • If it is a tier 1 event, max trade size is 1 lot
  • Determine relevant size to event.
  • Just like you trade small on a tier 1, you need to trade larger on a tier 2 or tier 3 event.
  • Prepare for five different scenarios. How you will react. Think through the implications. Choose the ideal pair for the scenario. Upside and downside depending on which way the information event is released. Think through what you are looking for in terms of a trade beforehand. Don’t chase trades the rest of the day. Take 20 pips and get out.
  • Doing prep work saves your discipline. It reduces the number of decisions you need to make during the event. This boosts your will power, it makes you fresher which makes you trade better in the moment.
  • Each day, there is a complex problem to solve. What could happen in an event? What does it mean if each of these things happen?
  • The five scenarios can be done on a piece of paper, in your head, on a whiteboard or on the computer. You are reinterpreting connections. Try to be curious about thinking through these scenarios.
  • Review from events from past 24 hours. Look at daily charts. Long term trends. Macro stuff.
  • Another way to look at it is: meets expectations goes up, goes down| lower than expectations goes up, goes down | higher than expectations goes up, goes down | then also consider rebound reversals for each of them
  • Trade management: if no momentum + no conviction, set stop loss to zero once it hits 5 pips.  Conviction is when what is happening is confirmation of your gamed scenario.
  • Take note of your emotions every few minutes during an event. You do this because you want to be aware of where your emotions are at. If you want you can actually write down the time every few minutes and specifically note when your emotions are shifting.
  • When you make a mistake or take a big loss, turn the audio back on to bring you back to your baseline. This helps you reset your trading brain.
  • On Tier 1 trades, the strategy is  1. Reduce trading size to 1 lot total. 2. Be patient on entries. 3. Take smaller profits.
  • The only place you trade is at the office. Otherwise, you realize that you are making a decision to lose money.
  • You have 30 minute commute to work total every day. Use this to prepare your mind and review the day’s events.
  • You need to be sitting down at desk 30 minute before every event
  • Every weekday you are sitting down at the office working for four hours. This is to keep you in the game. To keep you sharp.
  • Part of being an investor is investing your time as well as money.  To see a return on your time, read trading or investing books.  And if you really want a good ROI on your time, write out and develop theories. Writing sharpens your thinking like nothing else can. When you can write well, you can think well.
  • Exercise is another great investment. It has been shown to improve mood and mental performance. Your job is 100% reliant on your brain. So anything you can do to improve performance could be worth a significant amount of money over the course of the year,

 

Fractites

  • Track emotions during trades

Next: do another interview at end of week to find out how things are progressing.