Category: Strategic Trading Academy

Mindful Trading

Mastering mindful trading requires a deep understanding of your emotions.

Forex pairs and indices (stocks) can be highly volatile, with price fluctuations occurring in short periods.

To navigate this volatility effectively, start by practicing with a demo account.

Developing the right set of skills will enable you to trade with safety and precision,

leveraging market volatility to close large profits in a short amount of time.

Mindful Trading: Navigating Discouragement

In my four years as a student of the market, I’ve come across many instances

whereby I’ve had my fair share of people who supported me and those who tried to discourage me. Let us look at both of them.

Inspiring Influences in My Life: Positive Energy

In late 2021, I realized the importance of having someone guide me in trading professionally.

There were many moments when I felt stuck,

such as not knowing the best times to trade in my country (South Africa)

or how to determine if the market was bullish or bearish.

Bullish: When the market is rising (price increases).

Bearish: When the market is falling (price decreases).

Today, I look up to my mentors because they continuously motivate me to stay focused and never give up.

Their encouragement has been crucial in my journey to becoming a mindful trader.

I am also deeply grateful for the support from those close to me.

This positive energy helps me persevere and rise above challenges when the going gets tough.

It’s crucial to keep close those who support you, as their positive energy can motivate and help you

stay focused on your journey to becoming a mindful trader.

Navigating Discouragement: Dealing with Detractors in Your Trading Journey

On your journey to becoming a successful trader, you will inevitably encounter people who try to demotivate you.

These detractors can come from anywhere—friends, family, relatives, colleagues.

Always be aware of them and never let their words influence your path. This journey is yours and yours alone.

Overcoming Negativity: The Key to Success in Forex Trading

You might often encounter individuals who have tried trading but gave up

when they realized the forex market isn’t a get-rich-quick scheme.

They tend to project their negative experiences onto you. Be mindful of such individuals.

They might not mean harm; their negativity could stem from their failures, leading them to believe forex is a scam.

It’s crucial not to absorb their negativity, especially as you strive to become a profitable trader.

Some people discourage you simply because they lack knowledge about trading.

They base their judgments on the failures of others. Don’t let their ignorance derail your progress.

Importance of Back Testing: Mindful Trading

I remember the first time I backtested my trading strategy in 2021.

This was my chance to see the progress I had made since starting in 2020.

Back testing essentially tests whether your strategy can endure over time

Like farming, trading has its seasons of rain and drought. Skilled and experienced traders navigate these ups and downs

better than those without such skills. Developing your trading skills is essential.

When we get into the practical side of trading, I’ll show you how to back test the strategy I teach.

This will be a fun learning experience because you’ll test the strategy without the fear of losing real money.

It will also help train your subconscious to focus on sharpening your

technical trading skills. Eventually, you’ll be ready to test it out in the real market.

Remember to always have patience

When Should You Start Trading Your First Real Account?

While trading a demo account is essential, you should also start saving to trade your first real account.

This helps you understand how you engage with the market for real.

In the first quarter of 2022, I funded my first account after countless back tests using

Trading View (covered in Technical Trading Lessons). This tool allows you to gain years of experience in a short time.

My journey continued when I funded my first account with $53.20 (R1,000). By this time, I had honed my skills and felt confident.

I initially only traded the Nasdaq 100, an index consisting of the 100 most publicly traded companies.

According to Nasdaq.com, the top 10 most publicly traded companies include:

Microsoft (MSFT)
Alphabet Inc. Class C and Class A (GOOG, GOOGL)
Amazon.com Inc. (AMZN)
Tesla Inc. (TSLA)
Meta Platforms Inc. (META)
NVIDIA Corporation (NVDA)
PepsiCo Inc. (PEP)
Costco Wholesale Corporation (COST)
Apple Inc. (AAPL)
Broadcom Inc. (AVGO)

While trading the Nasdaq 100, I managed to flip my account, doubling it to $106.40 (R2,000) within a week.

The market provided countless setups that respected our price action strategy, leading to a streak of winning trades.

I withdrew my initial deposit of $53.20 that same week on Friday, just before my broker closed shop. That weekend,

I was excited and nervous—excited because I had flipped my account for the first time since 2020,

and nervous because it was my first time withdrawing money from my brokerage.

I remained patient, ensuring my emotions didn’t cloud my judgment.

On Tuesday at 10 AM, I received a notification from the bank confirming the deposit of $53.20 from my brokerage.

This was a turning point in my life, making me realize the potential of forex.

By not giving up, you can make significant progress in the world of trading.

Over time, consistency will enable you to see your growth as a retail trader.

Remember, just as it takes time to see progress when lifting weights for the first time,

Mastering your trading skills will develop based on your consistency.

A trader who makes the most mistakes will always outshine the one who does not, as long as they learn from their mistakes.

How Much Should You Fund Your First Account?

It’s ideal to start your trading journey by funding your account with anywhere from $53.20 to $159.61.(small account/mini accounts).

Small accounts help you worry less about blowing your account, especially when starting out.

When I first flipped my account and withdrew my initial deposit, I felt invincible, and my confidence soared.

After receiving my initial deposit, I started trading again, but this time things were different.

Understanding FOMO: Never Break Your Trading Rules

When I reopened Nasdaq and began analyzing, the market wasn’t giving the same setups as the previous weeks.

The market was not trending, meaning there were fewer opportunities.

I was unaware of this and let my judgment be clouded by the desire to flip my account again within a week.

Remember, there are times when the market gives, and times when the market takes.

We harvest at the end of a trending market and let it play out during a drought (choppy market).

A choppy market shows no clear trend, making small fluctuations in a short period.

It is when the price of a stock, currency pair, or commodity is indecisive.

During this time, the market gains liquidity by taking out impatient retail traders.

The elusive 10% of traders wait out the drought and emerge when the market trends again. I didn’t know this at the time.

All I could think about was flipping my account. I opened my trading platform and started analyzing Nasdaq again,

but this time the market wasn’t offering any high-probability buys or sells. Instead of avoiding the choppy market,

I was filled with a new emotion: FOMO (Fear of Missing Out). I didn’t like the idea of waiting because I thought if I waited,

I would miss out on an opportunity to capitalize on the market.

This impatience led me to lose 80% of my account. After this, I went back to the drawing board.

Keep in mind, I still had the $53.20 I had withdrawn. Instead of funding my reserves, I wanted to see what went wrong.

So, I back tested for a few hours until I realized I should not have entered the market.

This lesson taught me the power of back testing, testing a strategy with a small account, and differentiating between a trending market and a choppy market.

Conclusion: Mindful Trading

Remember, trading requires patience and a mindful approach. By funding a small account,

you can manage your risk better and learn valuable lessons without significant financial loss.

Always back test your strategies and understand market conditions before making trades.

This mindful approach will help you navigate the ups and downs of the trading world successfully.

Now that you are aware of the emotions you may encounter on your journey to becoming a mindful trader,

you are better suited to navigate your way more effectively than I did when I began my journey.

Next, we will delve into the practical side of trading—the fun part—where we’ll explore how to trade

using trend channels, support, and resistance levels and zones. Stay tuned for a lot of quality content designed to sharpen your skills. See you there!

The Market: A Challenger Designed to Test You

Welcome back to part 2 of Perfecting the Art of Trading Psychology. Today, we continue our journey towards mastering the world of retail trading.

Consider this: In South Africa, approximately 4,000 individuals apply for aircrew training each year. Out of this sizable pool,

only about 30 will ultimately be selected. Interestingly, the world of Forex trading shares a similar narrative .

Did you know that a staggering 90% of all retail traders fail to turn a profit? That leaves only a mere 10% who manage to succeed.

Your objective? To become part of that elusive 10%. It’s challenging, but possible.

To thrive in the world of Forex trading, you must believe in your ability to prosper and adopt a mind-set of unwavering determination.

Remember, in Forex, it’s you against the market – always keep that in mind.

Importance of Demo Account: Perfecting the Art of Trading Psychology

A demo account is provided to you by the broker of your choice. This account simulates the market in real-time, allowing you to practice trading without financial risk.

Additionally, brokers also offer real/live accounts, which involve actual funds and real market conditions.

Remember in my previous article “Perfecting the Art of Trading Psychology” I stated that my excitement impatience (of money money) got the best of me?

Well if you have not checked it out CLICK HERE! Before continuing.

Why I Encourage You to Start Trading Demo Accounts Only: Art of Trading Psychology

When I first started trading in 2020, I didn’t have anyone to educate me about the importance of using a demo account.

So, weeks before I had my first call with Ethan, I began trading on a demo account.

At that time, I had no understanding of technical or fundamental analysis. All I knew was to buy when the market was low and sell when it was high.

I would create a $100,000 demo account, not realizing the importance of setting a realistic account size.

For example, I would trade the EUR/USD currency pair with a large lot size (5.00 lots). Since it was a demo account,

I wasn’t trading with real money and emotions weren’t involved. I would often forget about my trades, only to remember days later and find my account in significant profit.

I did this without any risk management strategy.
This is a common experience for many new forex traders. When you start with a demo account,

especially without proper guidance, it’s easy to make profits. However, the real challenge begins when you transition to trading with a real account.

As humans, we naturally feel euphoria when we gain money and sadness when we lose it, especially when it happens without our control.

This emotional response can significantly impact trading decisions. Trust me, it’s a common experience.

Even seasoned traders have gone through similar stages in their trading journey.
Remember, the goal is to develop the right skills and mind set to transition smoothly from demo trading to live trading.

With practice and proper guidance, you can turn your demo trading experience into a powerful tool for success in the forex market.

Turn Your Demo Account into a Profitable Machine with the Right Skills

Before funding a real account, it’s essential to have a fool proof strategy.

But what exactly is a fool proof strategy?
A fool proof strategy is one that has been thoroughly tested and proven to work over time.

Think of it like a pharmaceutical scientist testing a new drug: the drug must undergo numerous testing to ensure it’s safe for consumers.

Similarly, a forex or stock trader needs to test their strategy to ensure it works in the long term before using it with a real account.

I recommend starting with a demo account primarily so you can focus on mastering the strategy I’m going to teach you, rather than on making money.

When you focus on the skill, the money will eventually follow. However, if you focus solely on the money, it’s unlikely to come your way.

Once we’ve covered the practical curriculum (technical analysis), we can create demo accounts and start practicing to find the trading style that best suits your personality.

How to master your Fears? Perfecting the Art of Psychology

The emotion of fear is very common in forex or stock trading

and it is one of the main reasons a lot of trader’s fail to be profitable traders. Fear often presents itself in two stages:

Fear of losing your winning trade

In 2020, a month or two after I had blown my first real account, I found myself at my grandma’s house during the holiday season.

It was high school break, and I was visiting her and my cousins.
At that time, I was trying to grow my remaining account balance of $37.99,

hoping to recover my initial deposit of $270.06 USD The market had taught me a valuable lesson, and my fear of losing the rest of my account was at an all-time high.
I was somewhat familiar with a few key price strategies, like trends and the importance of using stop-loss and take-profit orders.

However, my trading skills were nowhere near what they are today. On my first trade, relying solely on trend lines,

the market moved in my direction by just a few pips. Instead of excitement, I was filled with fear.

The reason for this fear was the lingering memory of a USA30 trade that had caused me to lose $978 in profit within minutes.

This memory clung to my mind like Venom clings to Eddie Brock in the Marvel Movie Venom.

The fear was so intense that I could spend over two hours staring at the chart without even realizing it.

Another reason for my fear was that I did not set a stop-loss order, fearing that the market would retrace, stop me out, and then move in my desired direction.

I only set a take-profit order. Trading without a stop-loss is basically gambling; it’s not professional trading.

This behaviour heightens fear levels because, whether you realize it consciously or not, your subconscious is well aware that you could lose all your investments at any moment.
That’s why many inexperienced traders get glued to the charts all day like chart zombies, leading to unnecessary trades that eventually blow their accounts.

Fear of Losing a trade

By 2021, my trading style was starting to take shape. I had studied numerous price action strategies, such as trends, zones,

support and resistance, and had mastered the risk/reward ratio. After funding my fifth account (yes, I’ve blown many accounts),

I convinced myself to test trading with a stop-loss.
I funded my fifth live account, sacrificing new clothes and other expenses to stay committed to becoming a profitable trader.

Just as I was on the right path, I faced a new emotion: the fear of a pending loss.
This fear arises when you don’t fully trust your trading strategy.

The market often moves in the opposite direction before heading toward your target, testing your confidence in your strategy.

Here’s what happened to me: I caught a beautiful sell signal, but instead of the market falling, it pushed up, nearing my stop-loss.

Instead of letting the market play out, I closed the trade early, resulting in a loss. Ironically, after I closed my position, the market eventually sold off.

I felt so defeated that I even considered quitting trading altogether.
To manage this emotion, you must trust your strategy and let your trades play out.

Only by trusting in your abilities can you identify your mistakes and determine which setups work best for you.
This is why I emphasize the importance of practicing with a demo account. It allows you to focus solely

on mastering your skills, which better prepares you to handle the emotional aspects of trading.

End of Part 2: Perfecting the Art of Trading Psychology Part 2

Trading can be an emotional rollercoaster, especially when you’re just starting. It’s crucial to begin with a demo account

to build your skills without the pressure of real money on the line. By mastering a fool proof strategy and learning to manage your emotions,

you can transition to a live account with greater confidence and discipline.
Remember, the key to successful trading is not just about making money

but about developing a consistent and reliable strategy. Trust in your abilities, stay committed to your learning process, and don’t let fear dictate your actions.

Welcome to Strategic Trading Academy: Perfecting the Art of Trading Psychology

At Funds and Galore, we’re excited to guide you on your journey to becoming a seasoned retail trader(Perfecting the art of trading).

Whether you’re new to trading or have some experience, you are welcome here. Our academy caters to all levels of traders.

We offer a comprehensive curriculum that covers both theory and practical lessons on our website and social media pages.

Beyond teaching you the skills to navigate the forex and stock markets, we will also host live streaming sessions featuring trading challenges.

These challenges are designed to encourage engagement and foster a learning community where we can all grow together.

Perfecting the Art of Trading Psychology

Before we get into the technical side of things, I would like to stress that it does not matter how good of a trader you are;

you will never be a profitable trader as long as you don’t have control over your emotions.

Psychology is the most important trait to have as a person wanting to harness well-calculated trades that align with a strategy that has stood the test of time.

Trading is Not a Get Rich Quick Scheme

My journey into trading began with a conversation with my friend Ethan in 2020. Though we hadn’t spoken in a while, our discussion quickly turned to the subject of trading.

I was intrigued when Ethan mentioned a former schoolmate (Thabo) who had found success in trading. Ethan’s encouragement prompted me to reach out to this individual.

Thabo’s words of wisdom, especially “NEVER GIVE UP,” left a lasting impression on me.

Never Give Up: Success Requires Patience

At F&G, we approach teaching differently from traditional education. We believe in embracing mistakes as opportunities for growth.

Through trial and error, we learn which habits to avoid and which to adopt. Think of trading like learning to skateboard.

Just as a beginner skater seeks guidance from experienced mentors, aspiring traders benefit from mentorship and perseverance.

Success in both fields requires focus and consistency. Motivation alone is meaningless without the dedication to see it through.

In trading, as in skating, progress comes from persistence and learning from missteps. It’s a journey marked by falls and failures,

but with each setback comes invaluable lessons that propel us forward. With patience and perseverance, success becomes attainable,

transforming beginners into seasoned professionals.

The Market is Not Your Friend

In mid-2020, I studied how Thabo traded and managed to move out of his parents’ house by the age of 17.

Despite his success, he even went on to finish school. I yearned for that kind of freedom. It amazed me that someone living a seemingly ordinary life could achieve so much.

As I registered this, I realized that the road to success takes time. Thabo told me it took him over three years of consistent learning.

My brother Ethan confirmed that Thabo always sat at the back of the class around 2017, minding his own business and trading.

Little did everyone know, the boy at the back of the class was just a few steps away from success.

Lesson Learned: Perfecting the Art of Trading Psychology

During this time, I managed to fund my first real account with $270.06 USD (R5,000). I knew nothing about risk management or the importance of having a mentor.
This is where things get interesting. Thabo, at that time, was working on creating a platform to educate people on how to trade.

He charged me $33.25 (R612) adjusted for inflation to join.
I eventually saved up enough to join, and oh boy, was I excited and ready to learn.

A few weeks passed, and the platform still wasn’t up.

Thabo was busy with exams, and while I understood that, my patience was wearing thin.

I was hungry to make money, dreaming about that BMW M4.
In my impatience, I made a fatal mistake that taught me a very valuable lesson.

Fatal Decision: Emotions Can Make or Break You

Thabo also had a signal group. A signal is a service provided by a professional trader, where they tell you when to buy or sell shares or currencies at what they believe is the right time to enter a trade.

In the heat of the moment, I asked Thabo to put me in his signal group instead of his mentorship package. Unfortunately for me, he agreed.

My goal was to mimic Thabo’s trades exactly. For example, Thabo would open five positions with a lot size of 0.01 (don’t worry, I’ll explain the lingo as time goes on for those who don’t understand)

for Nasdaq with a $271.48 (R5,000) account. He was over-leveraging his positions,

meaning that when he won, he stood to make over $1,086 (R20,000), and when he was wrong, he only lost the $271.48.

I wanted to do the same thing but didn’t understand that Thabo, unlike me, could easily fund another $271.48 if his trades didn’t go as planned.

It took me a long time to gather the $271.48 to fund my account, and I certainly didn’t have another $271 if my trade went south.

Impatience got the better of me as I waited for Thabo to send us another signal. After the first day without any communication,

I started looking for trades on my own, thinking Thabo was too busy to check the market, not realizing that good trades take time to develop.

All I understood was that you buy from the bottom and sell at the top. So when I opened my MetaTrader 4 app and saw the Nasdaq chart with candlesticks appearing at the bottom,

I, along with my cousin and little sister (my trading buddies at the time), concluded that I should buy. I opened a 0.03 and a 0.01 lot size to test the waters.

You wouldn’t believe what happened next. A few minutes later, Thabo sent a buy signal.

We went crazy and started entering 0.05, 0.02, and 0.01 lot sizes. Within three minutes, my account flipped from $271.48 to $978.22 (R18,000)

adjusted for inflation. Never had I thought I’d make so much money in such a short period of time; this was when my love for the game started.

As exciting as it was, little did I realize the risk I had taken. I opened a total of 12 positions with a $271.48 (R5,000) account,

which was extremely risky. Lucky for me, Nasdaq prices soared without any market retracements.

In my excitement, I sent Thabo my results. I bet he thought, “Wow, this guy is crazy, so many positions without proper risk management.”

A few moments later, he sent us another signal to buy US30, and this is where my greed took full swing.

Keep in mind that the signals we received didn’t include a stop loss or take profit price level.

A stop loss is an order placed with your broker to sell at a specific price level to protect against large losses, and a take profit is an order to sell at a specific profit target.

Without these safety nets, I aimed to convert our new account balance of $978 to $2,714 (R50,000) with the US30 signal from Thabo.

I did exactly what I did with Nasdaq, but this time, the market sold instead of buying. In just under two minutes, I watched my account plummet from $978 to $37.99.

I couldn’t sleep that whole night. This was one of the hardest things to digest at the time. The market taught me a valuable lesson: Forex is not a get-rich-quick scheme.

End of Part 1: Perfecting the Art of Trading

As we continue this journey, I hope you now see the critical importance of having proper risk management if you want to survive long-term in the forex market.

Mimicking a professional trader’s style without proper guidance is a recipe for disaster.

As we just saw, I ended up losing the majority of my account all in one day. This was a lesson well learned because today,

I trade with proper risk management. Instead of flipping my whole account in one day,

it might take me a month or so to double it because I understand the value of risk management and patience.

At F&G Company, we are here to ensure you don’t make the same mistakes I did. Our goal is to provide you with the tools and knowledge to trade responsibly and successfully.

Through our comprehensive curriculum, live trading challenges, and a supportive community,

we aim to build not just skilled traders but disciplined ones who understand the art of trading psychology.

Stay with us as we dwell deeper into the strategies and mind-sets that lead to sustainable success in the trading world.

Together, we will navigate the highs and lows of the market, turning each challenge into a stepping stone toward mastery.

Welcome to Strategic Trading Academy, where your journey to mastering the art of trading psychology begins.