One of the most inspiring stories I ever read, was how legendary trader Richard Dennis taught 14 people who had never traded before, to trade successfully in just two weeks.
They traded and went on to make millions and become some of the most famous traders of all time.
So how was it done and can you do the same? Let’s find out.
Richard Dennis taught them three major points:
1. A simple method they could have confidence in.
2. Money management.
3. Applying the method with discipline.
His advice was very specific with no filler.
So, let’s look at what you need to learn.
You need a method you have confidence in and it needs to be simple.
There is no correlation between how complicated a method is and how much money it makes.
In fact, the reverse is true.
A complicated method has more components to break and is less robust in the face of brutal market conditions.
Look up “technical analysis” on the net and learn specifically how and why it works and also the theory of “trading breakouts”
You should be using a long term trend following methodology looking for the big trends that produce the big profits and breakout trading is ideal for this.
If you want to win at online forex trading, you need to know about breakouts.
Base your methodology on it – It’s simple and it works.
Now you need to time entries.
Look at some indicators that are based on momentum and look up “stochastics” this is simply the best momentum indicator you can use.
2. Money Management
If you start with a “breakout method” and base your trading method on it, then stop placement is obvious.
If you only trade significant breaks your odds of success will be high.
Is perhaps the hardest part of trading online forex.
You need to apply your method with rigid discipline otherwise you have no method at all.
Discipline is all about experience and even seasoned traders find it hard to keep executing a method when a string of losses occur.
However, you are part of the way there to having discipline, if you have devised your own method.
You know its logic and should be able to stay with it as you will have confidence in it to work.
All the material you need to get up and running is free and on the internet, but it’s worth reading a few books.
These are my favorites and will they inspire you.
1. Market Wizards and The New Market Wizards ( edit )
By Jack Shwager.
These are interviews with some of the top traders of all time including:
Richard Dennis and the turtles and many more – Packed with insight and very inspiring.
2. Trader Vic
By Victor Sperandeo.
A true trading legend, who shares with us his thoughts on trading, money management and trading psychology, a fantastic all round book.
By all means read a few more, but these three are my favorites from over 500 I have read.
Trading is Simple, yet people try and complicate it.
They think the more effort they put in the more they will get out – This is totally false.
Work smart not hard!
If you want to make money you need to work smart not hard and if you want a perfect example of this look at the turtles!
In just two weeks they all became great traders.
Maybe, you wont make as much money as them, but if you learn and do the above, you will have the basic platform to make big profits in online forex trading.
Finally, you will have done it all on your own and will have given yourself success, how satisfying is that?
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