The past 14 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 are so many 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 2013/4 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.
I have now decided to publish a fillable, reusable, undated and printable Forex Trading Journal because your girl also wants to move with times. It has been months since Forex With Ntombi 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 a 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 a 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.
Is Forex With Ntombi Trading Journal a Hardcopy?
NO, it is a soft copy that is INSTANTLY available for download after purchase. You can purchase HERE (see WhatsApp “Chat with me” tab, should you have any questions.
Do I have To Purchase a New Journal Every Year?
NO, Forex With Ntombi Trading Journal is undated and re-usable. You only purchase it once and use every year. You can also JOIN MY AFFILIATE PROGRAM and EARN 20% commission for every copy sold. This will also help me spread the word and help more traders get organized, track their progress, stick to their trading plan and gain consistency.
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Hello readers. It’s been a while since I published a blog post here. I must admit, It’s been a very hectic year. Whenever I do get some time to publish some content, podcasting comes to mind because there, I just talk, and it doesn’t take much time. Anyway, things have settled a bit this side, and I will try my best to update this platform like I used to do. Today I want to address the issues that cause traders to quit trading within a year or even less. Below are the top 5 reasons why this happens. There’s definitely more, but I will only mention 5.
Impatience
Most traders are so impatient with themselves, and they expect to get straight to the part where they are amazing without giving themselves enough time to practice and gain the necessary experience. If you get a new job, you still need to gain experience in how to do the job, no matter how qualified you are.
You are also likely to make more mistakes as compared to an experienced employee. This is the main reason why employers would prefer to hire someone who not only has the necessary qualifications but the experience as well.
It saves the company a lot of money if they hire an experienced employee. As a trader, you also need to think about that and give yourself time to gain the necessary experience. As you gain it, you will also make a few mistakes and eventually master your craft. Be patient with yourself and stop wanting to be a perfectionist. Remember that all the people you read about would not have made it if they were not patient.
Wanting to Make Money Fast
Think about starting a business. When you start a business, you need to understand that you may not live off of it right away. You need to understand that you may even be required to support it financially before it can support you.
A business needs you to take care of it before it can take care of you. You may even go for a whole year without earning a salary from your business. You do not quit just because you are not yet earning a salary from it; you do whatever it takes to learn as much as you can about your business, and eventually, your business takes care of you.
It is the same with trading; you may not make money right away. Also, just do away with the “making money fast” mentality. Now everything that I mentioned will only make sense to you if you can start treating your trading account as a business.
Expecting a Lot from Small Capital
Now, the internet and social media have sold Forex trading as the quickest way to make money with zero effort and a minimal investment; this is not true. Your earning potential is highly linked to your start-up capital. Money gives us options. When you have more money, you also have more financial instruments to choose from.
Let’s say you start trading with $100; even if you can make 100% (which is mostly unsustainable- story for another day), this will mean you now have $200, and I doubt you can make a living with that amount. If you have small capital to start trading with, you can start with what you have and grow your account. I have published an episode on this topic, and it is the most listened-to episode on my podcast. LISTEN HERE.
Viewing Trading as a Game
Most traders think trading is some kind of game that is not related to anything that is happening in the global markets. Changes in the Interest rates/Monetary policy, GDP, CPI and many other economic factors have a direct impact on the economy, and they affect the currencies and stocks that we all trade. If one is looking for a hobby or a game, they must look elsewhere because trading can be a very expensive hobby if treated as one.
Not Failing in Love with the Process
Most of us would really love to see the process of falling in love with us sometimes. Unfortunately, life does not work like that. Trading is the journey of self-discovery. You will have to develop confidence, patience and consistency.
If you don’t fall in love with the whole process, you will definitely give up even when you are just about to make it. One of the best tools that I have been using is keeping a Trading Journal. It helps with keeping consistency, tracking my progress, identifying areas that need attention and sticking to my trading plan.
I hope you have identified your own struggles that made you quit, or maybe you were about to quit. Start working on them and see if you can get back to trading, and this time around, approach it with a renewed mindset.
Thank you for stopping by. If you love what you read and found value here, kindly share with your peers and stay tuned for more posts. Happy trading.
Trading psychology refers to the emotions and mental state of a trader. It determines a trader’s success or failure. In my simplest explanation, trading psychology is how you behave in the markets. If you can fix your behaviour and how you handle yourself in the markets, you can see great improvement. Most traders lose money because of their behaviour and not their strategies.
I have published an episode on my podcast titled “the importance of personal development” because working on yourself is crucial. You have to keep your trading psychology in check at all times and working on yourself should be an ongoing thing. In this post, I will be tackling 5 ways to help you to master your trading psychology. Without further ado, let me get straight to it.
1.Greed
Most traders struggle with greed, I struggled with greed a lot as well. A trader who is controlled by greed tends to make risky and uncalculated decisions and as a result take huge losses. On a very good trading day, a greedy trader makes a lot of profits but gives it all back to the markets and has nothing to show for it at the end of the day. Profits go as far as account history but they are never kept. If this is you currently, you need to focus on working on this.
2.Fear
Fear is not bad and it is an emotion that alerts us of danger. Fear is bad if you allow it to control you. As a beginner trader, you will definitely feel fearful. Just like a new driver feels scared to drive on the road alone, a beginner trader feels the same. If you buy a car after obtaining a driver’s license and just park in nicely in your garage because you are scared, you’ll never master driving.
You can only master driving if you drive alone on the road and even if you can scratch your new car, you continue driving it and eventually you will stop scratching it as the fear subsides and you get used to driving it. It is the same with trading, you have to be actively doing it and that’s how you get rid of fear and gain the necessary experience.
Traders who are fearful are likely to close good trades prematurely and try by all means to avoid risk. You cannot avoid risk but you can manage it. If you want to completely avoid risk, you should not even think about being a trader. You may like to listen to this podcast episode on how to manage your money.
3.Detach From The Money
Detaching from the money may sound like I am saying do not care for your money. That is not what I am saying, what I mean by detaching is that do not stress much about making huge profits right away but rather focus on getting it right even if you break even. When you are too attached to your money, this becomes impossible to do.
I also do not encourage traders to trade with the money that they need for rent, school fees etc. or even trading with borrowed money. All these add unnecessary pressure which may lead to making countless mistakes. As a trader, you want to be as relaxed as possible. If let’s say you have R10 000 and it’s you last money, do not fund your account with all of it. Split it into half and use the other half to create an income while you trade with the the other half. You stress less when you have cashflow and you can then nurture your account and allow it to grow. You attract more money when you don’t stress about it.
4.Keep A Trading Journal
A trader who keeps a trading journal is an organized trader. A trading journal allows you to “take stock” of your trades, plan your trades, stick to your trading plan and also to keep track of your progress. It helps you create a roadmap that you can review and see where you need to improve. I have published a digital trading journal and is currently on special, you can WhatsApp +27 78 144 6851 to purchase (DO NOT PURCHASE ONLINE, The price is NOT YET UPDATED)
5. Regret
Regret keeps you unhappy. You always regret missing an opportunity, you regret placing a trade, and you regret closing it. I always tell my mentees that remaining happy is very important. Be happy when you make a lot of money, be happy when you are not making much, also be happy even when your trade goes against you because even though you may not control what happens in the markets, you can always control yourself and manage your funds and operate your account like a business and apply basic business principles.
Check out my money management course that will teach you how to manage your trading account like a business and never experience a margin call. Enrol and start learning right away. You can listen to the audio version of this post HERE.
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Hello subscribers and readers. It’s a new year and I hope you are all in good spirits and have landed safely in 2023. This is the first blog post of many. Please subscribe for future publications and if you wish to read on the go, download my APP. This post is all about preparing for your trading year. I will share only 3 things that you can do to prepare for your 2023 trading year. Without further ado, let’s get straight to it.
Set Your 2023 Trading Goals.
The possibilities of making money in the markets are endless. There’s a lot that you can achieve with trading. There are NO guarantees that you’ll make a certain percentage every month because the markets conditions are not the same. Sometimes there’s more trading opportunities, sometimes there’s less trading opportunities and sometimes there’s none. The word “guarantee” does not exist in a trader’s vocabulary.
Some months you can reach your monthly target, you can make less than your monthly target and some months you can even exceed your monthly target, that’s the nature of the markets. Understanding this is crucial. You may love to read the post on HOW TO SET TARGETS.
Before you can start trading again in 2023, ensure that you have determined your short term and long term goals. Setting goals gives you a strong “WHY”. If you have no idea why you are trading, maybe you shouldn’t even trade. I have published an episode on my podcast on goal setting. You can LISTEN HERE and use those tips to set your own short and long term trading goals.
Create Your Trading Plan.
Failing to plan is planning to fail. Always plan your work and work your plan. There is so much power in planning. If you don’t plan for your trading sessions, you’ll end up spending long hours in the markets unnecessarily so. When you don’t have a trading plan, you are not different from someone who is driving around with a map but no destination of where they are going.
A trading plan should outline your trading rules and it has to be adjustable to accommodate market conditions. It must also outline how much time are you planning to allocate to your trading. Creating a trading plan is easy, but the biggest challenge is following and sticking to it. That requires a lot of discipline. It may not be the easiest thing to do, but with the right mindset, it is doable. You just have to change your mindset.
Keep A Trading Journal.
There is power in journaling. Whether you are journaling your fitness journey or eating habits, journaling helps you keep track of your progress and identify anything causing issues in your journey. I kept a food journal and it assisted me in tracking what I was eating, the foods that contributed to my weight gain and also the foods that made me sluggish and caused “illnesses”. I also keep a self love journal which helps me take better care of myself.
Keeping a trading journal serves the same purpose. It helps you keep track of your trades, and your progress and It helps you identify the currencies/financial instruments that work the best for you. A trading journal helps you keep records of your overall trading activities, you become organized and when you are more organized, you perform better.
When you have a trading journal, you can easily stick to your trading plan, and revisit it to find areas of your trading that need improvements or attention. It makes it easier to work on fixing problems and solving your challenges. If you published a digital trading journal to help you keep track of your progress and create a roadmap for your trading success. You can get a copy HERE. and start recording your trades right away and get organized.
Thank you so much for stopping by and reading this post, I hope this helps. If you find any value in this post, kindly share it with your peers and help me reach as many traders as possible. Feel free to leave a comment in the comments section. Happy trading.
Gross Domestic Products (GDP) is one leading economic indicator that gauges the country’s overall economic performance. It measures the country’s economic health. The stats are released quarterly and some are released monthly. What it measures is the market value of all financial goods and services produced within the country.
What Is The Importance Of GDP?
It tracks the economic health of the country.
It measures the value of all goods produced within country’s borders.
Economists uses GDP to determine whether the economy is growing or experiencing recession.
Investors uses GDP to make investments decisions. Good economy leads to higher earnings and higher stock prices, while bad economy leads to lower earnings and stock prices.
Which GDP Stats Do I Trade?
United States GDP
United Kingdom GDP
Canada GDP
Australia GDP
New Zealand GDP
Why Do We (traders) Care?
Since GDP measures the economic health of the country, it has a direct impact on currencies and stocks. As traders, we can benefit from the short term moves of stocks and currencies whether GDP is higher or lower. I published an episode on my podcast about why you shouldn’t ignore fundamentals in your trading. You can listen to this episode HERE. Understanding what moves the markets allows you to plan for your trades and also spend less time in the markets. It also makes sense to understand the markets where you have invested your money.
Thank you for stopping by. Please kindly share this post with your peers who may benefit from this content. To have my blogs at your fingertips and read on the go, download my App on Google PlayStore. To learn how to incorporate fundamentals into your trading, WhatsApp+27 78 144 6851 for a quotation.
The year is almost over and most countries have released their GDP stats. Below are the remaining dates for GDP stats for the year 2022.
Central bank is a national bank that provides financial and banking services for its country’s government and commercial banking system. Central banks play a major role in the markets. Interest rates are the most important event of the Forexmarkets and any discussions that take place in the central banks can cause huge volatility in the markets within seconds.
What is the role and function of a Central Bank?
To set official bank rates used to manage inflation and exchange rates
To issue a country’s currency
To set targets and monitor economic data while they implement special tools.
One of the special tools that is used by the central bank is Interest/bank rates adjustments. When the Central Bank sees a need to hike or cut their rates, they simply do so.
Why Do Central Banks Cut Interest Rates?
To encourage borrowing : When the Interest Rates of a country are cut, it also means that the people who are borrowing from the banks will be paying less Interest on their loans. That will then encourage consumers and even big companies to borrow for spending and bigger investments.
To make saving less attractive: When the return on savings are lower, most people would opt for spending money than holding on to it.
To weaken the currency: When the currency is weak, the country’s exports become more competitive and their imports more expensive which also encourages consumers to buy local because of the exchange rates.
To lower Mortgage loans: When mortgage loan holders pay less interest on their existing loans, they may be left with more money and that should increase consumer spending in the country.
Why Do Central Banks Hike Their Interest Rates?
When the economy is growing at a rate that may lead to hyperinflation (monetary inflation occurring at a very high rate) that is when the Central Bank hikes the county’s interest rate.
To make saving and investing more attractive: When the returns on savings and investments are higher, it encourages more people to save or invest.
To increase the value of the country’s currency: When the country’s currency value is higher, it attracts foreign investors to invest in the country.
When the pandemic (Covid 19) hit global economies, all Central Banks embarked on a rate cutting spree. Now that all economies are recovering, Central Banks are on a rate hiking spree. Every country is trying to secure investors. The sad thing about all these rate hikes is that whose who qualified and took loans during rate cuts are now paying more interest due to current higher Interest Rates.
Why Do We (Traders) Care?
The biggest factor that shifts the price in the Forex markets is the Interest Rate changes set by the Central Banks. The changes made by the Central Banks in their rates are the indirect response to other indicators/economic data released right throughout the month. As a trader, it is very important to understand what moves the markets and how to take advantage of that.
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Check out the latest episode on my Podcast titled “Why you should not ignore fundamentals in trading“. To read this content on the GO, download the App on Google PlayStore. Below is the table of 8 major central bank’s current Interest Rates. There’s still more rate hikes expected and these figures will change soon. These are the ones that I personally trade. I have excluded emerging markets.
Should you wish to learn how to trade interest rates, read a monetary policy statement and understand what it means to the economy and how it affects currencies and stocks, send me a WhatsApp on +27 78 144 6851 to request a quote on this course. Thank you for stopping by, I hope you found value in this post. If you did, please kindly share with as many people as possible.
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