The Forex Trader’s Treasure Map To Profitability

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When you moderate a chat room, you meet a lot of different types of traders. While different folks have various trading methods they have conjured up, so many of them make the same errors in their trading methodology. Whether you’re a scalper, day trader, long-term trader, or counter trend trader it will make little difference, if you’re over leveraged.

Over the years I have read a lot of trading books and courses, as I’m sure many of you have. Some were good(Trading in the Zone – Mark Douglas), others were too basic to be useful(Trade Your Way to Financial Freedom – Van Tharp), and rarely did I come across a book that was truly Forex specific and detailed until now.

For me, my Forex journey began reading countless Forex message boards about the latest trading systems, which indicators were the best, and other useless information. It was not until I read a book from Dirk Du Toit that my trading finally progressed to the 4th stage of a typical Forex Traders Journey.

What Forex Stage are you in?

Stage 1: Losing

Novice Trader: The trader is new to the Forex Market. Spends extensive time doing research on the Net attempting to understand the market and his/her role in it. Lasting as long as a year or longer, Stage 1 is the most difficult to graduate from. This is where the trader takes countless losing trades over and over until they have finally exhausted their account. Now the decision is whether or not they will persevere and replenish their account in order to keep practicing.

Stage 2: Win a few, lose a few

Apprentice Trader: The trader now has over 1.5+ years experience, but still lacks a true understanding of chart reading, price action, probability, and randomness. He/She begins to take some winning trades, but overall the account stays basically break even due to over trading, leverage, and the incorrect usage of take profits and stop losses. You win a few trades, you lose a few trades.

Stage 3 Fewer Trades

Journeyman Trader: The trader now has over 3+ years experience with reading charts, price action and begins to understand the roles of probability and randomness in the market and its impact on stops and take profits. The Journeyman Trader takes fewer trades because he/she recognizes when they have an edge over the market, and in turn, take winning trades more often and their account slowly builds.

Stage 4 Increased Consistent Profitability

Master Trader: The trader now has 4-6+ years experience and rarely takes a losing trade. In fact He/She may go for long stretches of time, possibly a year or longer, without a single losing trade. Just ask Darin S in the chat channel. This phase of development is what we all strive for and is key to transitioning into a full time Forex lifestyle.

Thanks to the book, Bird watching in Lion Country, I have to tell you that I am finally moving away from Stage 3. While I suspect it will take another 2 years to make it to Stage 4, I have a solid foundation and map to follow to make it there.

The book I’m recommending you read will radically change how you think about Forex trading. It is extremely detailed and doesn’t waste time on simplistic basics. Bird Watching in Lion country blows the doors off any book I’ve read on the subject of Forex trading. Dirk Du Toit’s grid trading system alone will forever change the way you view supply and demand and how you enter and exit a trade. The chapter on his 4×1 trading system that focuses on 1 pair, 1 time frame, 1 direction, and 1 percent combined with his idea of scaling into a trade using a no stop loss method had a huge impact on my profitability, and I am forever in Dirk Du Toit’s debt. Dirk finished up with a 170% return in 2009 and he shows every trade he took to prove his claim.

Take my advice. Don’t waste your time reading any other Forex Book. Put down the book your reading now, and pick up Bird Watching in Lion Country. I guarantee it will move you from Novice to Master, faster then anything else out there. There is no doubt that practice and experience play a significant role in becoming a profitable Forex trader, but without the right map to guide you on your journey you could be lost in the Forex jungle for a very long time. Trust me on this one. At over 340 pages you won’t be disappointed. This book will shatter your beliefs on how you should be trading and what is truly possible.

Ken K

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