Tracking your Triad Formula

The dust is settling on a big day for the Triad Formula crew.  Nearly 1000 traders or soon-to-be traders have snapped up a $2k triad_trade_on_trackbundle of trading strategies and associated training services.

Congratulations on a job well done to Jason, his renowned internet marketing partner  and the rest of the crew!  Obviously a lot of work has been put into the launch and it has paid off big time.

Congratulations also to those of you who have bought a copy of the Triad Trading Formula.  There’s a bundle of good trading strategies in there and plenty of support to go with it.

However (there’s always a ‘however’), can I offer a piece of advice to the new purchasers: just spending the money on the product and giving it a half-donkeyed go at it is not going to make you rich through forex trading.  You MUST give the system your full focus, you must learn the strategies inside-out, back-to-front, you must commit to becoming a successful forex trader for it to work for you.

I speak from experience.  I’ve bought similar forex trading courses and strategies in the past.  In themselves they are very good and if followed – they will make you money.  I’ve also been a member of Jason’s trading clubs in the past and I know that he’s a good trader, has good (profitable) trading strategies, and from what I know, seems to be a a nice bloke too.

But, just by spending thousands of dollars does NOT guarantee success!  From what I can see, the Triad Formula incorporates at least 5 different trading strategies – used for different market conditions.  That’s a lot to learn and a lot to implement correctly.  You’ve got to track the use of each strategy properly so that you can gauge how effective they are working for you, or not.  Each trader has a different trading personality (I’ve spoken about this before) – determined by what level of risk they like to take, what hours of the day they have available to trade, how much overall time they can commit to trading and so on.  There’s a good chance that not all of the strategies are going to work equally well for you.

My advice is to fastidiously keep a detailed trading log. This step is often missed in the teachings of even very expensive forex training courses, yet it is critical to long-term success.  You MUST keep track of your trades, analyze which trading strategies are profitable for you and which aren’t.  Please, please, please – protect your substantial investment in forex education by taking the extra step of tracking your trades, tracking your performance as a trader, learning from your mistakes and also learning from your successes. Trade on Track is the software tool you should be looking at to accomplish this.

If you missed out on the Triad Formula launch, then they might do another one in future that you can get in on.  In the meantime, there’s plenty of good free training and free strategies out there too. I always recommend babypips.com for new traders – it’s one of the best free forex training sites around in my opinion.  Also check out this guy: forex-fxtrader.com who offers free forex education as well as giving you free insights into the profitable trading strategies he uses. You can also buy $50 trading books from Amazon which give you very, very good, high probability trading strategies you can use in the forex market.  I’ll leave those recommendations for another post.

For trading success, always Trade Seriously!

Mark Thomas

www.TradeOnTrack.com

Forex trading is a serious business … treat it as such

forex_business_toolsAs I was learning to trade, many of the forex educators whom I followed talked about treating forex trading as a business.  At least, if you wanted to be a successful trader, that is what you should do.

This made sense to me and didn’t seem to be too much of a problem because I was running all my forex-related expenses and income through my business anyway.  I was also quite passionate about trading so treated it quite seriously from the beginning.

However, just keeping track of overall expenses and income in relation to forex trading wasn’t enough.  I wasn’t happy that everything was accounted for properly – there seemed to be a lot of “black hole” expenses and income that were related to my forex trading.

Now, this can be hard to explain to your accountant, but not being fully accountable for your trading also gives you an excuse (even if it’s subconscious) to trade flippantly at times.  This is not a good thing when trading.  I saw a pressing need to instill trading discipline and accountability into my forex trading regime.

Having developed and maintained accounting and ERP systems for hundreds of businesses over the last 20 years – I knew a thing or two about software management / tracking / accounting systems 😉  So I thought, why not develop a trading management system for forex trading?

That’s exactly what I did and it was a definite turning point in my trading career when I started using that system.

To be a successful forex trader you need to treat it as a serious business.  All serious businesses use software tools to track their activities, forex trading shouldn’t be any different.  As far as I know, Trade On Track is the only software tool of its type which assists forex traders in tracking, analyzing and enforcing discipline and accountability in their trades.

Use serious tools and Trade Seriously!

Mark Thomas

www.TradeOnTrack.com

Forex Trading Confidence

How to buy Forex Trading ConfidenceForex Trading Confidence

Just kidding … you can’t buy trading confidence, you have to build it yourself, “earn” it yourself.

There are different schools of thought when it comes to whether you should be confident when trading or not.  What mindset should you start the day with when you’re trading – should you be confident, or always wary – nearly afraid?  I’ve read varying opinions from different trading “experts” over the years, varying enough to not take too much of it to heart.

My personal belief is that you need to be confident, but not over-confident.  Be confident in your strategies and in your trading plans, but never believe you’re better than the market.  Never believe you can beat the market any time you want.  The forex market is a beast – that probably applies to most trading markets.  Be on your guard at all times but also have faith that you can tame it to some degree.  You can tame it enough to make money from it, maybe not every day, but more days than not.

So how does trading confidence work?  How do you build confidence when trading the forex markets?

I think it takes time.  Even once you have good trading systems under your belt and decent trading plans – it can still take months or even years to build confidence to keep coming back, day after day.  You need to build enough confidence so that if you have a losing streak, you KNOW in yourself that you can come back and recover your losses and then some.

Then there’s false confidence and real confidence.  New traders often have a false confidence – if they have some losses they believe they can win them back immediately, even if they have no proof to back that up.  False confidence can be deadly in the trading arena, because it can lead to practices like overtrading, trading too many lots, trying to average out losses, trying to run trades longer than they need to be, and many other nasties.

With experience, you can build REAL forex trading confidence.  Each time you lose a trade, or have a series of losses AND you can then recover those and keep moving forward – that builds REAL confidence.  Real confidence allows you to continue your trading, month after month, year after year, KNOWING in yourself that you can keep building your trading account balance in the direction of UP!

Forex trading confidence doesn’t come easily.  You need the right trading strategies, a trading plan you can trust, and stacks of trades under your belt – correctly tracked and monitored, so that you can see in black and white (or at least pretty colors on a computer screen) that you can keep coming back after losses, building more and more profits.

Trade with confidence and Trade Seriously!

Mark Thomas

www.tradeontrack.com

Testing Forex Strategies

If you have a theory about a particular forex trading strategy, one that you think might be profitable again and again, how do you test that strategy?  Isn’t it just a matter of pulling up some forex charts,  covering up the right hand side of a history chart and then pretending to enter a trade, then see how it might have fared?

Yep, this is called backtesting and is definitely one of the steps you should take when “proving” a strategy that you’re formulating.

Beware though – psychologically you normally treat backtesting differently to forward testing, or real trading.  Forward testing is testing a particular strategy using live markets (often in a demo account).  When forward testing, you’re watching the price move and your emotions are swayed by fear and greed (big time!) and you’ll normally behave differently to when you’re backtesting.

Other factors come into play too – like the time of day you trade.  If you’re backtesting, make sure you’re backtesting in times frames that you can do during your normal day/night (eg. don’t try testing trades that are at 5am your time).

If you can “program” your strategy using code/logic, you can code it in the metatrader 4 scripting language and using the backtesting tool in metatrader to automatically go over the historical data and do the trades for you.  These scripts are called “Expert Advisors” (EAs). There’s all sorts of results you can get out of that.  Check out this site: http://codebase.mql4.com/experts where people have published EAs they have formulated/coded, with tested results over historical data etc.  Many are free to download and try out on your own MT4 paltform.

There’s another backtesting program I’ve used which doesn’t require you to know the MT4 scripting language. You can find it at thinkingstuff.com (I think there’s a free trial available).

Other trading platforms like thinkorswim.com also have facilities to script your strategy and backtest them on historical data.

For the best roadtesting of a strategy, you really have to trade it yourself, in real time.  As mentioned above, this is called forward testing, and this is what Trade on Track is great at, particularly with testing multiple strategies at a time.

Now, beware when testing forex strategies:  The usual path for beginner (and even experienced) traders is to try out a system/strategy a few times, then one of two things :

1. If the system is losing money, they’ll discard the system and go searching for another one
2. If the system is making some money, they’ll think “wow, this is cool, I wonder how much better I can do” and go searching for another one.

From what I have experienced myself (I’ve made the above mistakes MANY times), I can’t stress strongly enough to stick with a system once you try it out.  So, if you have a strategy that looks like it might be a winner, learn the strategy and implement it for at least 3 months (forward testing).  Get to know it inside out so that it become second nature.  Only then, once you have it under your belt and you’ve placed dozens of trades using the system, do you start to look for other systems.

Always test your forex strategies using backtesting, forward-testing and for an extended period of time.

Trade Seriously!

Mark Thomas

www.TradeOnTrack.com