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.
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.
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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
- Deutsche Bank.
- 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”.
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.
The markets are open for 24 hours and 5 days a week. Most people are introduced to the markets as this one exciting and a very quick way of making money. If you have been trading for a while, you probably know by now that is not the case. It is no lie that as a newbie, looking at the charts can fill you with some sort of an adrenalin rush.
Spend Less Time In The Markets and Live More.
Now let’s be honest, Forex trading can be very addictive and most traders are just addicts. I published an episode on my podcast on this topic, you can check it out HERE. Forex trading is not gambling or similar to a casino, but there’s a very thin line between trading and just gambling. This is all dependent on how you view your trading account. The charts and the constant change in price can keep you glued to your screen and tempted to trade even when there is no reason to.
Life Doesn’t Have To Stop Just Because You Have A Trading Account.
I speak to a lot of people on a daily basis who are struggling with finding balance in their lives. They struggle to find time for themselves, for their families, spouses and even children. They spend all their time checking the charts. Even when they go on family vacations, they can hardly spend time with their loved ones. Their partners feel neglected all the time.
They are constantly checking charts even on their mobile phones. Now their actions have made their loved ones to think that they are loosing their minds and no one take them seriously. They are also very frustrated human beings. Their lives are consumed by charts. Below are the few things that you can do to find that balance so you are able to trade less and live more.
1. Have A Trading Plan
Creating a trading plan is easy, but sticking to it is a bit challenging, you will need a high level of focus. When it comes to creating a trading plan, you must also not ignore your personality and your lifestyle. Listen to the podcast episode on this topic HERE. When you have a 9-5 job, you cannot afford to choose a trading method that will require you to trade at random times. You don’t have time to do so, your time is paid for and you have responsibilities and you certainly don’t want to be fired for neglecting your responsibilities.
You need a trading plan that will allow you to choose your trading time and plan around that. You need to know how much time you will allocate for your trading sessions. Your trading plan should also include when NOT to trade. I am sharing this because I know it is possible to plan your trades as long as you choose a method of trading that will accommodate your lifestyle. In my mentorship program, I do the planning in detail with each mentee.
2. Have A Day Off
Just like you take a day off or leave from work, you have a day off exercising when you just rest, stretch and allow your body to recover from exercise and your muscles to relax, you also need to have your off day as well in the markets. This is another trick that I personally used to overcome the markets addiction. It also helped me to stop treating my trading account as a casino money slot machine and understand that it is OK not to trade everyday.
3. Stay Away From Mobile Trading
From time to time, I take some time off social media to focus on reading more, working on myself more, check in with myself and basically doing personal development away from distractions, we all know how we can be consumed by social media . During such a period, I do not just log out of social media but I also delete the apps so that I don’t get notifications.
In the same manner, having your trading app easily accessible to you may be the reason why you cannot stay away from trading. If you plan your trades and your trading for the day is done, you won’t find yourself fiddling with your app and checking the markets the whole day, people do that even when they are driving. They check the markets even when they are in the bathroom or just bored. These are just a few things that you can do to find that balance that you have wanting all along.
Thank you so much for stopping by. Please kindly share this post with your peers and help me reach out to as many people as possible who need to see this information. You can listen to the audio version HERE.
What Does “Begin With The End In Mind” Mean?
To begin with the end in mind means having a clear vision of what you want to achieve and it also means that you hold the desired outcome in mind as you implement the strategies to get there. Today I decided to share a few steps on how to do that. Welcome to the first blog post of 2022, I am glad you are alive and here reading this post.
Gratitude is an appreciation of what you have and that is the best way to attract more of it. I believe you do keep a trading journal where you note down anything that you feel is important. If you have no idea how trading journals work, you can listen to this podcast episode HERE and get your trading journal right away because you will need it for this very practical blogpost.
I want you to begin your 2022 trading by writing down the following: “today is the (insert date when you are reading this post) and I am so grateful for my profitable live trading account that gives me consistent income”. Writing this down will make you appreciate it.
What Did I Do Differently To Become Profitable?
Remember you are starting your 2022 trading with the end in mind. I am aware that some of you may be reading this blog post and you just had a margin call or your account is having a serious drawdown. The aim of this exercise is to align you with the results that you want to achieve with your account in 2022. Ignore the fact that you are not profitable now (if that’s your case) and just do the exercises. Please make sure that you write these in your trading journal.
A Few Examples Of What You Can Write That Led To This Success
- I followed my trading plan.
- I read more to understand what really moves the markets.
- I exercised more patience.
- I only traded when I had enough time.
- I worked on myself and focused on being more disciplined.
- I never traded when my setups were not met.
- I implemented everything that I learned as is.
- I believed in myself more.
These are the few things that you can think of. As you write these down, you will notice that more will come up and if you’ve been trading for a while with no success, you’ll automatically think of how you should have applied these things in the past years of your trading.
What Did I Let Go Of?
Again, remember that you are doing these exercises because you want to start with the end in mind. This is not about self judgement.
A Few Examples Of What You Might Have Let Go Of
- I stopped doing random trades.
- I stopped following random trading signals on social media Forex groups.
- I stopped discussing my trading account with friends because it added unnecessary pressure to my trading.
- I stopped using bigger lot sizes that my account could not handle.
- I stopped switching from one trading strategy to another and I focused on polishing what I have learned.
- I stopped treating my trading account like a casino slot machine.
I don’t know what you’ll have in your mind, you can use my examples to inspire your own list. If they all resonate with you, it is also OK to use them. Just do whatever will work for you.
Your 2022 Trading Goals
Now that you know how the end looks like (the end that you want align with) you can then write down the following questions and answer them:
- What do I want to achieve with my Forex account?
- Why do I want that?
- How will it make me feel?
- When do I want it?
- What am I willing to do to get it?
I have never published a blogpost of this nature. Today’s blogpost is very practical and it will require you to do the work. If you do the work as suggested, you should have your clear short/long term trading goals.
Thank you for stopping by and reading this post. I will do an audio version (podcast) of this post as well. I hope you will manage to apply these. Please subscribe, share this post and leave a comment to share your thoughts. I have published a booklet to help you align with what you want to achieve in your trading. The booklet is very practical and it will require just 3 minutes of your time twice a day to do the affirmations to align with what you want to achieve with your trading account. You can check it out HERE. Please note that you don’t need to have a PayPal account to purchase, you can purchase with your bank card (see instructions when you get to the page). Should you get stuck, feel free to WhatsApp me on +27 78 144 6851.