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Trading versus Karate? Monday’s video….

Charlie discusses these two pastimes plus responds to recent client feedback…

Hi this is Charlie giving you Monday’s video.

I’ve got a couple of things I want to go through with you today. The first one is this karate versus trading analogy. I want to go through that with you in a second.

Before I do that though, Friday’s live trading was interesting because it attracted a couple of comments and got me thinking actually. I’ve been doing live trading for three and a half years and the reason I started doing these videos on a Friday was so that I could put my neck on the line and you could see that there is no way I can avoid the truth. If I lose I lose and if I win I win.

If I have some poor trading then you see it all because you know that I have to trade every Friday morning and I have to record it. I can’t just do a random recording. If I was some random educator then I could just put the recording software on every day and only select the day that I actually had a winning day. The rest of the week I could be losing and just put a winning video out.

It’s been a good exercise over the last few years and I think it really brought together some interesting thoughts. If you’re not currently a member in our room then you’re missing out and it has attracted some comments here regarding that, and it’s so true.

A lot of people are sitting on the sidelines. I banked $1300 on Friday, okay I’m trading a position size that maybe a lot of traders can’t do, but if people are putting up a financial obstacle of joining the room, you have to pay to be in the room, it’s a premium service but you have to think of it that way.

How long would it take you, on days like that, to recoup the price of the trading room membership? So you have to look at it like that. If you trade along with Kym in the mornings then with me in the afternoons then the most important thing is you’re learning a lot.

So I would encourage you if you are thinking about it. It ignited some comments there so it’s worthwhile having a look through those.

We did get a comment from Mark yesterday that made me laugh saying “I’m new to these videos, so far I’ve only seen you win on these Friday trades, do you post all your trades?” That’s what got me thinking about what I just said.

Of course I have little runs where I seem like I make money but if you look back over the catalogue from over the last three years you’ll see plenty of videos where I have losers as well. You’ll learn just as much from seeing me have losing days as with the winners.

So I just wanted to bring that up first of all about the trading room and Friday’s video brought that together. What I do now is not only am I recording the video, I’m actually in the trading room on a Friday morning now.

Then we’ve got karate versus trading. It’s not really karate versus trading, it’s not really that but for those of you who don’t know, I used to do karate for about 20 years and gave it up when I was 35 because of back problems. I’d had back problems for years and in the end I just had to stop, my body didn’t like it so I had to quit.

I ended up getting to a Third Dan Black Belt in the time that I was there. Could have progressed more but I was in no rush to get higher, but I got to a decent level. In order to get to that level, in my first ten years of training there were times I was training six or seven days a week, so you’ve got to put the time in. I had a wooden post in my back garden that I’d go out and punch or kick at night time and people thought I was crazy.

But those are the sorts of things you have to do if you want to get good. If you were only training one day a week then how good would you get? You’d get proficient over time but you’re never going to be that good because you’ve got to put the blood, sweat and tears in and you’re not going to get it from one day a week.

I’m using that analogy from back in the day when I had to put all those hours of training in to get to a decent level. It’s no different with trading. You see people saying you can trade a few minutes a week and it’s just nonsense because you’ve got to immerse yourself in order to become a student of the markets and master the markets much like someone who becomes a master of karate or any other martial art.

So you have to put the time in and commit yourself to that. I’m not saying you have to sit at your desk all day every day but you do have to put the hours in to really become a student of the markets.

That’s the analogy for this week, we have to put a lot of time in with every profession, you have to put a lot of time in with this profession as well. Don’t think you can just skirt around it and just do a few minutes here and there, you have to give it some time to immerse yourself and clock up those flying hours.

Those are my thoughts for this week and we’ll back on Friday for the last Friday trading for me personally because I’m off on holiday for a few weeks. I’ve got a feeling that Kym will probably do them in my absence. I’ll see you then.

 

9 Comments

  1. Paul-Reply
    July 15, 2015 at 9:00 am

    Good Morning Charlie,

    first of all thank you for all of your videos, I always lern a lot with them… I’d like to ask you a question..

    I’ve been trading for 2 months with an almost scalping method, and the thing is that I’m not sure how much time is enough to prove it in order to know if it works or not… I’ve done 132 trades in the last april and may, and I’ve got a 4,7% and 10,78% each month. I’d like to do a 10% a month, which I hope is doable, but I know it takes time and patience, so I think that was a good result. Do you think that I have enough data to start with real money, or should I wait and trade it another month or maybe more?

    My idea was to prove it maybe 2 o 3 months, because of the 90x90x90 rule, and if it works, start with real money, and if in 3 months it continues working, use more capital, etc. What do you think?

    Well, sorry for the long message and thank you very much for everything!

    Best regards

    Paul

    • Charlie Burton-Reply
      July 15, 2015 at 10:43 am

      Hi Paul and that’s an interesting question which provokes questions from me in order to fully answer. The number of trades taken is fine but I need to know what do you mean by scalp? 10 pips? 5 pips? 3 pips? 2 pips? If you can give me an idea then I will fully answer your question and my response may surprise you!

      Charlie

      • Paul-Reply
        July 15, 2015 at 11:05 am

        Hi Chalie, first of all that you for your very fast answer.

        The thing is that I use, on a basis 10000 EUR, with 1 vol or 0.5 vol deppending on the risk I want to take, but not more than 1 vol, 80 pips, so if it moves from 1.10000 to 1.10180 and I am short I will be stopped. And I don’t use take profit, I always use trailing stops, so it depends, but its usually 71 pips on average winners and 46 pips on average losers which I think will be for you 7.1 winners and 4.6 pips losers…

        I say scalping because trades don’t usually take no more than 5 – 10 minutes on average, and sometimes even less than a minute!

        Thank you very much for your help, I really appreciate it

        Best regards

        Paul

        • Charlie Burton-Reply
          July 15, 2015 at 11:10 am

          Thanks Paul that helps. My advise is that you can go onto a live account with it but I’m raising a big red flag!

          Scalping on a demo account is very different to scalping on a real account. My concern is that your actual fill prices on a real account won’t give you what you have been averaging so far so the performance wont be the same. Give it a go and see how you get on but just be aware that the performance is likely to be less when you go to live trading.

          regards

          Charlie

          • Paul-
            July 16, 2015 at 6:13 am

            Hi Charlie,

            Thank you very much for your advise, that helps a lot.
            I’ll start with a live account after the summer, so I hope the performance wont be so different compared to the demo account and I am happy you told me that I had enough data, because I though it was more number of months than number of trades. So I’ll tell you about the performance a few weeks after the start.

            Thank you very much for your support Charlie, I really appreciate it

            Best regards

            Paul

  2. John-Reply
    July 15, 2015 at 9:37 pm

    Hi!

    I’m a long-time lurker around here and I always watch your videos, Charlie. Say, I missed the 10k to 100k webinar, and for some reason the link that was sent to my e-mail appears to be broken. Any reason for that? I’d really like to watch the webinar and see how well you did!

    Thanks for being consistent with the videos because even though I don’t day-trade much, you touch a lot on the psychological aspect of trading which is one of the key areas I want to more or less “master” over the next few years through my trading journey.

    Thanks in advance,

    John

    • Charlie Burton-Reply
      July 15, 2015 at 10:01 pm

      Hi john and thanks for getting in touch. Sure the webinar is on our website on the webinar page.

      Hope that helps and thanks for the feedback!

      Charlie

    • Charlie Burton-Reply
      July 16, 2015 at 6:58 am

      John I just checked again and its not on that page but here’s the link to it anyway – http://www.ezeetrader.co.uk/webinars/10kfinalemembers.wmv

      • John-Reply
        July 16, 2015 at 10:33 am

        The link I received was broken hence why I came on here to ask.

        Thanks Charlie!

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