Graduation! Commander in Pips: : So, what can I tell? Do you like this 5-star General markings on the right upper corner of the page? Pipruit: Yeah, it looks very exciting! Commander in Pips: Right. Finally you’ve done this. Today you’re graduating from our Forex Military School, or, it’s better to say demobilize. Although you see the General's stars – this is intrinsic grade of School only. It only means that this is a final chapter of our course. What rank you will get in reality – we will see. Probably you think now that you’ve passed through this huge amount of education material and become super-duper prepared for real pips conquering, that you’re extremely well prepared, trained and almost a pro in forex, right? Pipruit: Well, I feel kind of like that… Commander in Pips: In this case I have to chill you out a bit and tell you that you still stand far from veterans and will be awful in trading. But this has to be so, at least in the beginning. The point is that nobody could become an expert and professional by reading just some theoretical book or course, even if it is as tremendous and outstanding as this one. The real road to being a professional trader is real experience. But if you try to start trading on real account right after this school – it will be the same as to trying make a real surgical operation after reading a “Brain Surgery for Dummies” book. As we’ve said in the beginning of our course, trading is a sudden strike (not PC game) with wisest and most tintelligent people in the world. Being a Trader is a very cynical occupation, you know. In fact what is a trader doing? He or she is trying to grab another trader’s money. Against you will stand those who have MBA, PhD and those who have money to buy any technical and software stuff that you can only imagine and that were ever produced in the world. All these tools they will use to try to grab your money, son. And let’s be honest – you have no skills currently to struggle against them. They are really big sharks. Pipruit: You’ve scared me a bit… Commander in Pips: That’s good. It will help you to stay on guard. Still do not despair – we have shown you the way from which you can start. Our FPA School can help you initially to join the big sharks and to not struggle against them. You just have to study to understand them, what they intend to do. Later, if you will succeed, you may buy trawler to catch sharks. Also, you have to hold a reasonable thought in your mind that although trading may be an exciting process, it is foremost is business – as we’ve discussed it in the corresponding chapter. But if you will maintain your passion and wish to study over time as well as serious attitude to trading, you will get the chance to success. Still if you don’t mind let me make final valedictions. Pipruit: With pleasure, sir. Trading is a journey – not a destination You have to like it and enjoy by the process itself. Although your performance will be measured by profit as in any other business. Still, if you will not like the process, you will never succeed. Without the first you will never reach second. Here with our Forex Military School we’ve given you some nice tools and many advanced comments that hardly could be found for free somewhere else. But these are just tools and their application and effectiveness will depend on you. Every third person in the world is playing on guitar, but not every third is J. Hendrix. Many people play football, soccer to you Americans, but only a few can compare to those like D. Maradona, Pele and L. Messi. Applying these thoughts to trading, you have to understand that it is not some indicator, not a black box trading system and not the advise of your neighbor-trader that hit your account. YOU do it! That is your skills, discipline, diligence, your trading system, ability to analyze the market, execute your trading plan and risk management rules that make this work. Another important thing is your determination to study, apply what you’ve learned and track performance of this application. In the beginning you primary target is to be focused on the trading process, learning process and survival – not the profit. Making an everyday analogy – would you go into guitar players’ competition by learning only “happy birthday to you” song on single string? I strongly doubt it. Probably you will pass through technique, scales arpeggios, etudes and other education stuff before turning to play “Flight of the Bumblebee” on 250 tempo. Here is the same – learn to understand markets, improve your trading technique, find a proper trading system, good risk management and learn to combine all of these issues on Demo first. You major success here will be the trading system that gives you acceptable win/lose ratio, i.e. when your winning trades will be outperform losing ones. There is no Holy Grail I strongly recommend you to read Jack Schwager book “Market Wizards” and “New Market Wizards” sometime. Although each famous trader has its own way with markets and spin about his or her journey differently from each other – all of them have something common that become hallmarks of market success: - There is no way to predict the future. Nobody can do this. That why we’ve discussed an emergency plan and that it has to exist. All that you can do is to be prepared for a possible crash of markets; - Nobody can predict markets with certainty 100% of the time. Probably you often notice that market after some awaited press release, news or some data acts differently than expected – in contradiction with logical behavior. And you can’t find an explanation to that. Maybe some big hedge fund was locked in the wrong position, maybe banks have expected different numbers, maybe the market already has included this data in prices and so on. There are million of reasons could be for a not logical price move. The point is simple. If trading was as simple as interpretation of data – was it positive or negative, than all traders would be billionaires already. There is always uncertainty that exists, and you never know where it could come from. There are millions of traders in the world and every one of them has his or her own orders, positions, view and treating of particular news or data. What is the conclusion? You will be many times on the wrong side of the market. This is normal for such a kind of business as trading. But… - Probability is what is really important. This leads us to follow the conclusion that trading is a probability business. You maybe on wrong side, but probability should be always on your side. If this is not the case then your business is in the bad way. If you’re brinksman – it will be hard for you to deal with trading. Take a note that we’ve discussed all these issues in the School in much detail. It will not superfluous to remind you about patience and discipline Patience is one of the cornerstones of trading. You need time and patience to develop a trading system, to check it, to get experience, to enter and exit from trades and so on. Discipline is another keystone. In fact it means that sometimes you have to do some things that you do not want to do, or are lazy to do it. Follow to keep trading journal, follow to preparation procedure for every trade and daily routine, and follow to trading plan – just to name some of them. But for newbie traders very often it happens so, that a corner stone turns to stone of stumbling. You will see that to pass through some education course, book or e-school is much simpler, but applying them strictly with patience and discipline – that is a really tough task to do. That’s why not every person who has read the book becomes successful trader. Lack of discipline, patience and diligence leads to major destruction forces as impulse, gambling and gut-feeling trades, early profit taking, drag out loss taking and revenge sentiments. They do not encourage of survival of newbie traders. Here we have to recall the first statement about the journey. It will help you to stay on the way with discipline and patience. Trading is not “become rich tomorrow and give it up” – this is a gradual process. If you will move step by step diligently after some time you will see the progress and this will get you inspiration and encourage you to further success. Also keep in mind that the market will always be here tomorrow – don’t forget about getting enough rest. Second, that is more important – do not hasten to trade any possibility that you can. Keep only with your best ideas. If you do not have the necessary setup today – wait for tomorrow. The market is forming excellent setups and opportunities almost every day, so why we have to take worst of them? Be fascinating with the trading Do you ever thinkt why some people become good while others great? One of the reasons for that is attitude to what they doing. Some things you can’t change, such as inborn abilities but some things you can. “Try to change what you can and leave as they are what you can’t”. Attitude means a lot. Many famous persons become great and not just “good” because of their attitude towards their work. They love it. Not just execute it well as a job, but love it. So, you have to do the same. Particularly this love will kick you and let you to stay on process, when you will have: 1. Bad days; 2. Lazy days; 3. Sucky trading experience when all seems bad and wrong; 4. Trading despair and thoughts that maybe its time to find a different job; You’ve got the point, I suppose - any moment when you will think that all your forces have left you. And at this moments love and your fascinating attitude will tell you: “Feel the Force Luke!” This will help you to stay on the process and succeed. Constant dripping wears away a stone! Pipruit: Thanks a lot sir for all your help and sharing all information. Commander in Pips: So, that’s all, I suppose. It was really nice time that I’ve spent with you and I’ve got a lot pleasure and interesting time during our discussion and passing through our school. Finally, since you’re ready to dive in this terrible but great trading world, probably you will find useful some other work that we’ve done, especially on your way to get successful trading system, find broker and other: 1. Pharaoh’s Forex Basics Boot Camp. Although we’ve discussed some issues, but Pharaoh will get you more details and more pure practical issues on many questions: - How to choose a broker; - How to not become scams’ victim; - How to manage risk; - How to trade FPA daily trading signals – just to name some, and a lot of other important and different “how to”. 2. Once you will read Pharaoh’s “how to trade FPA daily signals”, you may visit the FPA Daily Trading Signals folder and also the newest explanation on how to trade them. 3. In our Shoulder of Giants part you can pass through real-time analysis process. Here our special consultants give regular (weekly and daily) analysis of market as in text as in videos. Also here is a large archive or historical researches and videos. This is great education resource to find your own trading system and to study. 4. Make chatting and talking with other traders on any topic that you want in our Forum – ask questions get answers, share knowledge and experience! 5. Our Commerce Zone part of forum dedicated to discussion of services and third party companies. 6. We also have special part for discussion of brokers, signal services, software, trading systems and managed accounts – Live Services Discussion! 7. The last but not least our primary task - struggling against scam and punishing scammers. If you need some third part services but you do not want to get trapped by crooks or if you want to complain on some, as you think, scam – your parts are: Reviews and Ratings read what others said about a company and leave your own reviews. Performance tests Get a look at performance before signing up. Scam Alerts Folder. Give details of any serious problems you've had with companies. So what else? Oh, yes - Good luck and best of trading!Your FPA Team Commander in Pips: Class Dismissed! << Back | Table of Contents P.S. This lesson was written by Sive Morten, who has been working for a large European Bank since April of 2000, and is currently a supervisor of the bank's risk assessment department. Sive's knowledge of forex market and banking industry is vast and quite complete. If you have any specific questions about forex, banking industry, or any other financial instruments, please post them below, we'll notify Sive, and get them answered within 1 week. P.P.S. Sive Morten's primary focus is trading EUR/USD. If you wish to receive his FREE trade recommendations for EUR/USD, please subscribe here for free. Note: FPA ranks are earned in the battles against scam, not in the classroom.