My Unconventional Approach To Trading & Investing Responsible For Market Beating Profit Potential That Flies In The Face Of "Pro" Trading Advice

My Unconventional Approach To Trading

I am of the opinion that the overall approach to Forex trading, or any kind of trading, is just as or more important to success as the specific trading strategy used to engage with the markets.

So, while other traders fixate on finding the “perfect trading strategy” or developing “superhuman trading skills”, I focus on the broader view of exactly how I’m going to approach trading in search of extraordinary profit potential.

And I believe that taking this approach is what has led me to be a success with the potential to accumulate wealth faster and create multiple income streams on my path to financial security.

And I share my discoveries here: Free Forex Training

I encourage everyone who is interested in trading and investing, and especially those who have tried and failed before, to go through the training. This is what I’ve found works for me. And if you’re struggling, you might just find the missing ingredient you’ve been looking for.

But I get it, it is a lot. I mean, I’ve been at this for nearly 20 years. So, I’ve thought about this stuff A LOT.

Therefore, in the desire to put everything together in a concise and coherent manner, I’m going to provide notes, highlights and take-aways from each of the “lessons” in this training section.

This is by no means a substitute for going through all the training and coming up with your own plan. Each person’s relationship with money, financial situation and goals from trading and investing are different… and therefore your particular plan needs to be customized.

Let’s get started…

Why Strategic Planning Is More Important Than Skill To Finally Achieve Forex Trading Success & The Potentially Life Changing Profits You Deserve

In this post, I go over my first epiphany… Strategic Planning Is Better Than Skill.

You see, I think there are two “camps” of trader:

Those who make their success about THEM, and their skills.
Those who make their success about STRATEGY, and not skill.

I am in the second camp. I remove my ego from trading and don’t make it about me at all… but rather relying on a strategically designed way of trading that has great potential to be profitable over the long term.

And I figured that the best way to identify a strategic approach to trading was to look at what other traders were doing which I believed leads to failure… and develop a way of trading that doesn’t do those things.

Basically, by avoiding the pitfalls other traders fell into, the path to success would be clear.

Here is what I came up with:

- - My trading method uses a manual trading strategy, meaning I personally make all trading decisions.
  - My trading method is easy to learn and easy to trade.
  - My trading method is traded on the Daily Charts and only takes minutes a day.
  - My trading method focuses on taking a limited number of trades.
  - My trading method only trades ONE currency pair per trading account.
  - My trading method is traded consistently through all market conditions.
  - My trading method is extremely profitable over the long-term compared to other investment opportunities.

But that was only part of my revelations...

Ignore "Pro" Trading Advice And Exploit At Home Forex Trader Advantages To Boost Profitability, Beat Other Investment Returns & Reach Your Financial Goals

In this post, I go over my second epiphany… At Home Traders Are Not Professional Traders And Therefore Have Advantages.

My goal is not only to be a successful trader. My goal is to be a profitable trader with the potential to accumulate wealth faster by beating other investment opportunities. In this way I can make up for lost time and accumulate the wealth I need in the time I have.

And while it makes sense at first glance to “do what the pros do”, the pros are limited in ways that at home traders are not (especially in terms of money and account management).

So, instead of copying what pro traders do in every aspect, I embraced being an at home trader using my own money to come up with a way of trading that was advantageous.

The biggest take-away is this:

I trade ONE thing (currency pair, crypto, indice, etc.), on ONE account with 5% total risk per account.

The success of the account is not the COLLECTIVE performance of multiple things, but rather the separate and independent performance of one specific thing. It also is the reason I can see extraordinary growth in my accounts, especially with the power of compounding.

(I understand this is one of the most difficult concepts for other traders to grasp… and potentially why so many other traders are struggling).

I compartmentalize my trading and trade one thing per account with the maximum risk per account, and don’t trade portfolios of multiple things with extremely low risk per trade adding up to the maximum risk per account.

4 Tricks To Make A Long Term Commitment To Forex Trading And Finally Reap The Profits You Deserve

In this post, I go over the importance of making a commitment to trading over the long term.

Yes, I understand, we all want to make money through our trading activities as fast as possible. But I have found that focusing on making money over the short term is the fastest road to long term failure.

Here is what I suggest:

1. Think of Forex trading as WEALTH BUILDING, and not money making
2. Focus on building a “Profit Buffer” in the beginning
3. Evaluate your trading success in terms of “Start” and “Finish”
4. And be satisfied with 20% Average Yearly Gains (even though we can do way better than that)

Employ these tricks to avoid losing perspective in your trading and running the risk of straying from the path that is leading you to success.

You’ve probably heard this… Forex trading is a Marathon Race, not a sprint. Commit to the long term… and trade in ways that help you stay the course.

Why Smart Forex Traders Focus On Risk To Reward Rather Than Win Rate To Achieve Jaw Dropping Profits Without The Stress Of Winning All The Time

In this post, I concentrate on possibly the biggest characteristic of my trading responsible for my success… Focusing On Risk To Reward Rather Than Win Rate.

I know, we all want to be winners. And don’t get me wrong, I love winning trades. But the amount of “winning” trades you have is not as important as HOW MUCH you win on winning trades compared to HOW MUCH you lose on losing trades.

This seems to fly in the face of everything we’ve been taught. Certainly the trader who wins more often is the better trader, right?

Well, not necessarily.

The truth is, how much you risk compared to home much you profit is an integral part of determining the “better”, more profitable trader. A trader that only wins 50% of the time can be MORE profitable than a trader that wins 90% of the time.

So, what do you want? Do you want to be more profitable? Or, do you want more winning trades?

I focus on trading strategies that have the potential to be highly profitable, without relying on an extremely high win rate. It’s nice to know I don’t need to win all the time to be profitable, because it makes dealing with losses easier, and helps keep me on track over the long term.

Why Thinking Like An Investor And “Being A Good Loser” Is The Path To Eye-Popping Forex Trading Profit Potential

In this post, I go over two characteristics you should adopt in order to reach your long term financial goals…

- - Thinking like an Investor instead of a trader
  - Learning how to be a good loser in order to be a winner

I understand that reaching my financial goals is not going to happen overnight. Even putting my money to work to make more money in a way that accumulates wealth faster than other investment methods is going to take TIME.

And that really is the point, isn’t it?

Putting your money to work to make more money over the long term is more INVESTING than trading. And that is why it is beneficial to think of yourself as an investor and not a trader.

And when you settle in for the long haul of reaching your financial goals over time, you understand that the path from where you are financially to where you want to be is not a straight line up. Therefore, in order to succeed, you need to learn how to become a good loser in order to be a winner.

Accepting loss is a big part of profitable Forex trading. You need to control the negative emotions associated with losses, and keep your perspective, so you can continue your journey toward your goals.

What Is “The Profit Geyser Concept” And Why It Is Essential For Any Forex Trader Seeking Long-Term Profitability

In this post, I go over one of the most satisfying and rewarding events when trading Forex over the long term. It is called The Profit Geyser.

First off, you need to think of Forex trading as wealth building over the long term rather than money making over the short term. Trying to make a consistent amount of money month to month is a frustrating prospect that sets you up for failure.

Furthermore, the trajectory toward your financial goals is not going to be straight up. There will be times of growth, consolidation and drawdown. But the good news is, the times of growth can be quite explosive.

Those explosive growth periods I call Profit Geysers.

And the easiest way to make sure you catch a Profit Geyser and experience this account boosting event for yourself is to keep trading consistently over the long term.

3 Forex Trading Hacks To Boost Profitability And Shorten The Path To Achieving Your Financial Goals

In this post, I go over something people don’t want to hear… Most Traders Are Underfunded For Their Profit Goals.

Yes, it takes money to make money. After all, we are putting money to work to make more money. And the more money you put to work… the more potential profits are available to you.

You cannot “make up” for a lack of funds by finding a strategy that produces BIG wins all the time. It is not reasonable to think you can turn $500 into $50,000 in a month because your trading strategy is “soooooo” good.

The truth is, reaching your profit goals is normally a 2-step process:

Step1: Systematically build your account balance to the correct size for your goals.

Step 2: Start achieving your profit goals and make significant money that matters.

There are 3 hacks I go over intended to help traders get through step 1 as fast as possible.

1. The Training Wheels Protocol. In the beginning, if you take a loss add money to your account to bring it back to the starting balance. This helps you build a profit buffer faster.
2. Tap Into The Power Of Compound Interest. In order to benefit from the power of compound interest, and grow your account exponentially, you need to keep your money in the market and not make withdrawals over the short term.
3. Build Your Investment Capital Faster By Making Scheduled Additions. Making systematic, even small, additions to your account can pay off big time due to the power of compound interest.

These hacks can help you build your account faster, so you can start making money that matters and start thinking about taking money out of the market.

How “Risk Tolerance” Dictates When To Take Money Out Of Your Forex Accounts And What To Do With Your Profits For Accelerated Wealth Accumulation

In this post, I go over your limitations as a trader due to risk tolerance. But more importantly, I discuss how you can still scale your trading up to any income level you want while staying within your risk tolerance zone.

As the balance of your trading account grows, so does the amount of money you put at risk per trade (if you are trading a percentage of your account per trade like I do). And at some point, the amount of money you are putting at risk starts to make you nervous. That is your risk tolerance.

The danger of trading beyond your risk tolerance is the tendency to deviate from the way you are trading that grew your account in the first place. It is just not reasonable to believe you will trade the same with $100 at risk as you would with $100,000 at risk.

Luckily, we can still grow our overall profit potential by compartmentalizing our trading and trading MULTIPLE accounts within our risk tolerance levels. By understanding your risk tolerance levels, you can plan to deal with them while still increasing your overall profit potential.

Putting Everything Together

Like I said in the beginning… It's a lot. So, how does all this fit together?

The goal of my trading is to accumulate wealth faster than other investment opportunities, create multiple income streams and secure my financial future.

I’m committed to accumulating wealth over the long term, building a profit buffer to make the trading easier to handle emotionally, keeping my performance evaluations in perspective and being satisfied with 20% average yearly gains which is twice as much as the expected returns of the S&P 500 benchmark (even though we can do much better than this).

By thinking of myself as an investor and taking a long term view of trading I set myself up for success because I can continue to trade according to the rules through times of growth, consolidation and drawdown.

I trade a simple strategy on the Daily time frame for only a few minutes a day so there are no missed or mismanaged trades and it is easy for my earnings to exceed my efforts.

My trading accounts are limited to trading ONE thing (currency pair, crypto, commodity, etc.) with a maximum of 5% risk on the account at any one given time.

The focus of my trading strategy is on finding a balance between high risk to reward trades and a decent win rate (with the possibility of being profitable only winning 50% of the time over the long run).

I understand my trading accounts are underfunded for my income goals in the beginning and use The Training Wheels Protocol, the power of compounding and small additions to my account to grow my account to the proper size for my income goals as fast as possible.

To scale up my trading to any income level I want, once the account reaches my risk to reward level, I can reset the account by taking profits out and compartmentalize my trading by starting another account. (Future accounts can either trade something completely different, or trade the same thing in a slightly different way).

Once I have enough accounts running at their risk tolerance levels to reach my financial goals, I can start taking money out of the market.

If some of these things seem to fly in the face of “what you’ve been told” or “what you’ve heard”... that is exactly the point. If you are not already a successful trader achieving your financial goals, don’t you think it is time you start doing something DIFFERENT?

The Growth Sequence

Here is the step-by-step plan for putting my money to work to make more money through trading and reaching my financial goals:

Account 1 -> Account 2: Focus on getting Account 1 to the maximum risk tolerance level. (Trading, The Training Wheels Protocol, compounding and making additions when possible). Once beyond the risk tolerance zone, periodically “reset” the accounts by making withdrawals. Use the withdrawals to fund Account 2.

Account 1 + Account 2 -> Account 3: Continue to trade Account 1 while focusing on bringing Account 2 up to the maximum risk tolerance level. (Trading, The Training Wheels Protocol, compounding and making additions from Account 1 withdrawals). Once BOTH Account 1 and Account 2 are beyond the risk tolerance zone, periodically reset BOTH accounts by making withdrawals. Use withdrawals from Account 1 & Account 2 to fund Account 3.

Account 1 + Account 2 + Account 3 -> Account 4: Same as above

Rinse and repeat.

In Conclusion

Even if you don’t agree with my approach to trading, I think you’ll have to admit it is well thought out.

My plan is NOT to find a Forex trading strategy that wins all the time and use that strategy to trade a very small account up to millions in an extremely short amount of time.

My plan is based in reality. And all it takes is planning and the discipline and patience necessary to stick to the plan.

The hardest thing to do is get started. Get Account 1 up and running trading ONE thing with 5% of your account. And then do everything possible to FOCUS on getting that account up to your risk tolerance levels.

But then you’ll notice that things get a little easier. Funding Account 2 is not solely reliant on money you invest in your Forex trading venture from the outside, but comes from your trading activities as well.

And then a snowball effect kicks in. Multiple trading accounts are then used to fund another account. This speeds things up considerably.

So, where does this all end?

This all ends exactly where I wanted it to:

Accelerated wealth accumulation, multiple income streams and a secure financial future.

Just think about it…

By following this step-by-step plan, there comes a time when there are MULTIPLE income streams functioning at once, ALL with the potential to beat other investment opportunities.

There is so much money at work, that it no longer becomes necessary to reinvest the profits into more trading accounts (unless you want to). So, now this money can be taken OUT of the market and used to improve my life and secure my financial future.

In effect, you should reach the point where you have a lot of money invested. And those investments have the potential to continue to produce profits as long as you keep trading. And since trading is so easy and does not require a lot of time, you can continue trading for a lifetime.

You’ll have a big pile of money at work… and you can live securely off the fruits of your money’s labor. I think your future self would be pretty happy about that… don’t you?

My overall approach to trading might be unconventional and fly in the face of what is recommended by other traders… but that is what I’m doing.

Edward Lomax

The Wealthy Don’t Live Paycheck To Paycheck… And Neither Should You!