Forex Trading Journal Benefits

Forex Trading Journal Benefits

Hello readers and subscribers. It’s been a while since I published a blog post here. It has been very hectic on my side. I hope you’ve been keeping well. I am currently in the process of changing form in terms of how I have been offering my private lessons. I am excited to announce that I am setting up an online school where anyone can access my courses.

The past 13 years that I have been trading the markets have taught me valuable lessons that I have been sharing with my trading community via my social media platforms, this blog, App and Podcast for free. My focus has been on trading psychology which is one of the reasons why there’s so much failures in the markets. I also started a podcast focusing on trading psychology.

Why So Much Failures In The Markets?

A lot of times, traders put more effort on working on strategies while neglecting themselves. I also
fell into the same trap of spending more time working on strategies. I kept on switching from one strategy to another. It was until I realized that I was the problem and I needed to fix me. I have published a podcast episode on this topic, you can listen HERE.

It took me wasting 3 very costly years of my trading career to finally understand that. I am often asked how did I gain such level of discipline and consistency in the market that is constantly devouring traders. My answer to that is very simple, I stopped focusing on strategies and started to focus more on developing myself.

What Did I Do To Change The Situation?

One of the things that helped me stay focused, disciplined and consistent, was keeping a trading journal.
I think it was around 2014 when I started using one. I would just take a normal notebook and note down all my trading activities and it helped me greatly in terms of keeping track of my progress. It also helped me shift my mindset and start to view my trading account as a serious business and an investment instead of looking at it as some cash cow.

8 years later, I have now decided to publish a digital Forex trading journal because your girl also wants to move with times. It has been a week since Forex With Ntombi digital Forex trading journal has been published and on sale. I have been receiving lots of questions regarding who it is suitable for. I decided to pick the most frequently asked questions and answer them on this post. Below are the most asked questions and their answers.

Is Forex With Ntombi Trading Journal Suitable For Beginners?

Definitely, as I have mentioned above, it really helped me shape up and managed to keep track of my trading activities and to actually stick to my trading plan. I actually wish I started earlier. Journaling helps you form habits and stick to your program. I am a very big fan of journaling, I also keep a gratitude journal and a self love journal.

Just like any other journal, this trading journal is your personal space. I also used a journal to keep track of my eating habits and it made it possible for me to stick to my diet and I was able to reach my body goals faster. I have records of how I did it, the foods that are not good for my health and weight. I know this because I journaled everything.

Is The Trading Journal Suitable For Demo Trading?

Yes, I would say that one must start using a trading journal as soon as they start trading on a demo account. The main aim of trading on demo before using your real money is to practice and get a hang of it before you start investing. So if you start implementing all the good behaviors right from demo level, it will be easier for you to teleport those good behaviors and principles into your real account. A trading journal does not only help you with planning, it also helps you to stick to your plan. So using it while on demo is definitely recommended.

Is The Trading Journal Suitable For Any Trading Strategy/Method?

As I mentioned in the beginning that journaling helps you stick to your plan (whatever the plan is). I used journaling to help me stick to my eating plan. So, a trading journal is there to help you plan and stick to your trading plan. It also helps you identify areas that need improvement. This is applicable to any trading method or strategy. A trading journal is for you to note down all your trading activities as well as track your progress. So the answer to this question is definitely a big YES.

Thank you so much for stopping by. Kindly subscribe and share this post with as many people as possible. You can purchase your digital Forex With Ntombi Trading Journal HERE and WhatsApp me (see WhatsApp “Chat with me” tab) should you have any questions.

3 Reasons Not To Increase Lot Size

3 Reasons Not To Increase Lot Size

How To Choose A Perfect Lot Size.

Hello readers and subscribers, welcome to today’s post. Choosing a lot size should be based on the size of the account which is the trading capital. When you have decided on the lot size/volume, your next step is to ensure that you stick to it as long as your trading capital is still the same. It is much easier to implement these principles when you view your trading account as a business and not just a cash cow. I have published an episode on my podcast on this topic, you can listen to it HERE. Below are the 3 reasons why you should not increase your lot size.

1. You Are Too Confident.

I used to do this one a lot. I would increase my lot size when I felt more confident about a particular trade. A lot of traders do this as well. One would increase the lot size when they feel that they are sure that the market would go a certain way. That is a very dangerous way of thinking because when it comes to the markets, we are never sure and we cannot control what happens in the markets. The good thing though is that we can always control ourselves. By all means, never increase your lot size based on how you feel.

2. Your Account Has A Draw-Down.

A Draw-Down means you have lost some money in your account. Say you started your account with $1 000 and you have lost $100 and you are now left with $900, you account has a 10% draw-down. You have no business increasing your lot size when you have lost some money. Revenge trading is very dangerous. Never trade with the aim of regaining your lost money.

If your increase your lot size after a draw-down, you are not different from someone who just lost an income but instead of moving to a smaller house while they find ways to make an income, they instead plan to move to a bigger house where they will be required to pay more, it really doesn’t make sense. You do not upgrade until your finances are upgraded. By all means, never increase your lot size after a draw-down.

3. You Have Reached Your Daily Target.

Reaching daily targets is very nice but should not be a reason to increase your lot size. As much as minding your daily target is good, try not to focus more on what you can achieve daily but rather pay more attention on closing your books on a monthly basis because days are not the same and sometimes there are days when there won’t be any trading opportunities, you don’t want to be discouraged because of that. It also doesn’t mean that you will never reach your monthly target if you don’t reach your daily targets. The best way to measure your progress is at the end of the month. By all means, never increase your lot size just because you have reached your daily target.

When Exactly Should You Increase Your Lot Size?

You can only increase your lot size when your trading account has grown. Only then, does it make sense to adjust your lot size. Even when you do, try not to increase by a lot but just a little bit. I have published a more detailed audio version of this post on my podcast and you can listen to it HERE.

Thank you so much for stopping by and reading this post. For notifications on new publications, you can subscribe. Please kindly share it with your peers and help me reach as many people as possible who may benefit from this information. If you want to read my blog posts on the go, you can download my App on Google Play Store and have these articles at your fingertips.

How To Trade Dax40 Index

How To Trade Dax40 Index

What Is Dax40 Index?

The Dax40/Ger40 formerly known as Dax30/Ger30 is an index that consists of the 40 major German blue chip companies that are listed on the Frankfurt Stock Exchange and it measures their performances. The Dax was founded on the 1st of July 1988. It had 30 companies hence it was called Dax30/Ger30. It has since expanded to 40 companies in 2021 and now called the Dax40/Ger40. The addition will give traders and investors an opportunity to gain more exposure to the German financial markets. The Dax40 is considered a strong measure of German and European economic health.

What Is Stock Index Trading?

Stock index trading is when you are trading a basket of stocks which makes up an Index. Stock Index trading is less time consuming as you are not required to study each company. You can trade the Index on your Forex trading platform and do it through an instrument such as the Dax40. I have published blogposts on how to trade Ftse100 and Nasdaq.

Some Of The Companies On Dax40

  • BMW.
  • Adidas.
  • Porsche.
  • Puma.
  • Airbus.
  • Deutsche Bank.
  • Siemens.
  • Volkswagen.
  • Continental.
  • Mercedes-Benz Group.

What Economic Factors Influence Dax40?

  • Monetary Policy, performance of the companies on the index and geopolitics.

The change in Interest Rates plays a big role in currency valuation. The Release of Interest Rates and Monetary Policy statement by the European Central Bank (ECB) affect the price of Euro. When Euro weakens against USD, Dax40 strengthens because German exports are paid for in USD and they cost more because of the exchange rate. When Euro strengthens, Dax40 falls, they have a negative correlation.

It is very crucial to understand that all financial instruments do not just weaken or strengthen, there’s always a fundamental reason why they react in a certain way. When you have decided to invest your money in the Forex markets, understanding how the markets work should be your priority.

Thank you for stopping by, please kindly share this post with your peers and help me reach out to as many traders as possible. To read my blog posts on the go, DOWNLOAD the app on Google Play Store. For notifications on future publications, feel free to subscribe. You can also check out this episode on my podcast titled “Do not invest in the markets blindly”.

How To Trade FTSE 100

How To Trade FTSE 100

What Is FTSE 100?

FTSE 100 (pronounced “Footsie”) or UK100 is an index that comprises of 100 largest companies by market cap that are listed on the London Stock Exchange. London Stock Exchange (LSE) opens from Monday to Friday at 8am-12pm and they take a lunch break and continue until 4:30pm. FTSE 100 was launched on the 3rd of January 1984. Many of these companies are international and are affected by the exchange rate of the British Pound.

What Is Stock Index Trading?

Stock index trading is when you are trading a basket of stocks which makes up an Index. You can do that on your Forex trading platform and do it through an instrument such as FTSE 100.

Advantages Of trading Stock Indices

  • Stock indices have generally higher returns than the stock market they represent.
  • The Volatility is reduced as compared to currencies.
  • Stock index trading requires less research as opposed to trading /investing in individual stocks.
  • When trading a stock index e.g. Ftse100 you do not have to spend weeks analyzing all the companies under this umbrella but what you can do is follow the instrument as you would do analyzing your currencies.
  • Stock index trading does not require any traditional stock brokerage where you pay high fees, you can buy and sell on the same Forex trading platform as you would do with your currencies and it is a cheaper alternative to trading the actual stock.

There are different markets that one can focus on. I have published a blogpost on the U.S markets and this one is about the London markets.

Why Is FTSE 100 Important?

Most companies invest their funds in the equity markets. FTSE 100 is used to measure the performance of the overall equity market in the UK because it lists the top 100 companies which affect the stock markets.

Some Of The Companies On FTSE100

  • Anglo American (mining)
  • Avast (software & computer software)
  • Barclays (banks)
  • BP & Shell (oil & gas producers)
  • Coca Cola (Beverages)
  • Mondi (forestry & paper)
  • Unilever (personal goods)
  • Vodafone Group (mobile telecommunications)

What Economic Factors Influence FTSE 100?

The release of UK GDP, Interest Rates and Manufacturing data. CPI also does affect it up to a certain level because CPI influences the Central Banks monetary policy and rate decision. Higher CPI leads to rate hikes while lower CPI may lead to rate cuts which has a direct impact on FTSE 100.

Thank you for reading. I hope you’ve learned something from this post. Should you need lessons on how to trade FTSE 100 and other financial instruments including currencies, feel free to WhatsApp me on +27 78 144 6851.

ECB Interest Rates 2022 Dates

ECB Interest Rates 2022 Dates

About European Central Bank (ECB) 

Bank Rate: 0.00%

Currency : Euro

President : Christine Lagarde

Headquarters: Frankfurt , Germany

What is ECB?

ECB is the Central Bank for the EURO and it administers Monetary Policy of the Euro Zone. ECB press conference is held 8 times a year about 45 minutes after the Interest Rate is announced. It is also called the Interest Rate Statement. The conference is about an hour long and  has two parts. First part is when the actual statement is read and the second part is opened for questions which then lead to market volatility.

What are the tasks  and objections of European Central Bank?

The tasks are to maintain Monetary Policy for the Euro, including the banking supervision. Their main objective is to maintain the price stability and to safeguard the value of Euro.

Why is the ECB statement important and why do we (traders) care?

It is the leading indicator that provides the clues about the future Monetary Policy. High Volatility is often expected during the press conference and it has a direct impact on Euro pairs. Below is European Central Bank’s 2022 dates. Thank you for stopping by, do save these dates so you can watch out for Euro pairs. If you wish to learn how to trade Interest Rates and understand that impact that monetary policy statement has on currencies, WhatsApp +27 78 144 6851 for private lessons, mentorship and coaching.

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