@1stepbeyond007
@NaguibSawiris
and @ EVERYONE ELSE THAT VIEWS THIS
FOR THE BENEFIT OF EVERYONE READING THIS
I would like it known that i have spoken to @1stepbeyond007 and assessed what he is doing wrong.
he seems like a nice guy who is just frustrated and no longer wants to keep losing money , Just needs a push in the right direction…
Now… i find that most newbies i speak to that have the same stories , FOLLOW THE SAME PATTERNS and therefore get the same results
Now 1stepbeyond007 is not a really a newbie, i mean he’s been slogging it out for 7 years (that’s counts for something) at the very least to not be called a newbie.
Now here is what i have seen VS what beginners do and what they get wrong
the mistakes of 1stepbeyond007 were as follows
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was getting overwhelmed with multiple instruments (Currencies),
while NOT REALLY KNOWING WHY HE WAS USING EACH INSTRUMENT
the only justification given was… "i would try and see if another one worked if the previous one didn’t"
I hear this a lot from people who are not profitable
the problem is … He has not given himself time to adapt to an instrument and how it behaves
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He couldn’t ascertain Direction
Another thing i see very often from people who are not profitable
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He was Frustrated
Again, Another thing i hear from people who are not profitable or consistant
Now… can we really blame him thought… I mean… 7 YEARS… Cmon… 7 Years is like doing time.
and Truth be told, the frustration comes from …
NOW PAY ATTENTION GUYS
FRUSTRATION ARISES WHEN THE BRAIN IS PRESENTED WITH A PROBLEM AND , No Matter how hard it tries, FAILS TO FIND A SOLUTION, BUT THE BRAIN REALLY REALLY WANTS TO FIND IT.
That’s how you Get Frustration
Take a moment to appreciate HOW COMMITTED THIS GUY WAS TO NOT GIVE UP IN 7 YEARS … Seriously!! think about it for a second.
so On a Positive Note
HE NEVER GAVE UP - WELL DONE INDEED
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However, Not giving up is pointless if you don’t know how to get to your goal
he didn’t understand how to calculate lot size - a bit of a biggie… Yeah
I get this one a lot as well
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he didn’t even know that Nominal Margin Existed
This is probably the most common one i get from beginners
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He was getting STOPPED OUT all the time
I hear this a lot and there are varying reasons for it. in this case, the Stops were Way too tight
I SAW ONE STOP LOSS IN HIS HISTORY SET TO 1 PIP (i was speechless)
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He didn’t know how to calculate COST PER PIP
i see this a lot as well
a Lot of people do not know how to perform a simple calculation like
Amount of Money at Risk / Pip Distance from Entry to Stop Loss = Cost Per pip
Now. note, this calculation is done AFTER you account for Nominal Margin coming out of your Account Balance so as to ensure that you do not exceed your risk.
so point is , he didn’t know how to establish the correct lot size , because he didn’t know how to calculate the Cost Per pip and therefore by default … LISTEN UP AGAIN… CHOSE THE LOT SIZE BASED ON GUT FEELING
i get this so many times it’s not funny
Now, he was using 0.01 0.02 and 0.03 yeah , sure… Ok
but he was not calculating anything, the system basically was
0.01 = Not Sure
0.02 = Hmmm Yeah Maybe
0.03 = I’m pretty sure
his Stop Losses were being placed at varying points where he considered to be ok, but he was not altering his lot size to reflect the stop loss placement.
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Initial Account Balance was very low (i won’t state how much, but i will say Below $500)
The point to take away from this is…
If you start with a Low Balance and keep reinvesting Low Balances you are Destined to fail (Especially as a newbie)
THIS IS 7 YEARS OF PROOF OF THAT FACT.
and not knowing how to calculate risk… well the result is self evident… Multiple Blown accounts over and over again.
HEED THE WARNING GUYS.
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He was trading on a higher time frame, which is good, but he was only looking at 1 Time Frame (1 Chart)
the problem here is , if you don’t look at the lower time frames and you think something is going up, you may not be aware that you should wait a bit before entering because Price is dropping on the lower timeframes.
SO BASICALLY
No Money Management
No Real Trade Plan (outside of Gut feelings)
No Real Decent Capital to sustain the Moves
Account gets blown out Several Times (Losses in the thousands) i won’t state the exact figure, but it wasn’t small
No Familiarization with instruments
No Defined Plan or Trading Strategy
Oh , almost forgot
- Tried one strategy, Jumps to another and to another and to another and so on and so forth.
Claims to have been profitable for 2 Months
When asked , WHAT DID YOU DO IN THOSE 2 MONTHS SO YOU CAN REPLICATE IT.
he can no longer remember because when he copped a loss after that win period he jumped to another strategy
and then to like 20 others and didn’t record anything and can no longer recall what worked
HENCE… DIDN’T LEARN FROM MISTAKES
DIDN’T LEARN FROM SUCCESS
- in terminal… other than ACCOUNT BALANCE he did not understand what the following were
MARGIN
EQUITY
FREE MARGIN
MARGIN LEVEL %
basically , to him they were just numbers jumping around ,without him having any understanding of the importance of them .
I GET THIS A LOT AS WELL
ALL THIS IS SUMMED UP TO THIS
There was no structure or plan to what he was doing, he was basically Whinging it for 7 years, Desperately trying to find something that works
NOW, I’VE SHOWN HIM HOW TO BE SAFE WHILE TRADING
he’s now on demo
I"m going to touch base with him in 1 week and see how he’s doing
i would like to think that he has structure from here
He has been a basic foundation of how to stay safe
he has been talk how to calculate trades before entering
he has been taught how to place a stop loss in a safe place
he has been taught how to place a stop loss so it doesn’t exceed his risk plan
he has been told to never place more than 2 trades at one time, but try to stick to 1
Let’s see how he goes
he seems to be confident with what he has learned, let’s now see him put it into practice.
Now the majority of things that i have mentioned here is what i hear EVERY SINGLE TIME SOMEONE ASKS ME TO HELP THEM BECAUSE THEY CANNOT FIND PROFITABILITY OR CONSISTANCY
it would be wise for people to print this list and check if they are doing them.
i figured i’d put all this up so that others can learn from the mistakes
these mistakes are very stock standard and very very very common.
so… let’s see how it goes
