I have been working with Ivo a few weeks now and he has been working very hard to learn what I am teaching. I thought some of you would be interested in a letter that he wrote to me. Prior to working with me, Ivo had been trading about 10 months.
Since I’ve started to get really serious into forex and I’m following your book’s teachings, I must say that I’ve changed alot, not only the way I look at the charts but the “way” I think when I’m doing things. My actions have changed.
Before I’ve spent long time watching at the charts and drawing lines to try to understand what is was going to happen to the price in the close future with no guidelines.
I was using all time frame charts (especially daily, 4 hours. 1 hour, 30 mins and 5 mins) to have a global vision about the trends but I couldn’t understand how to use them properly.
I was using linear charts, not candles. I learnt about them only when I’ve started to read your book.
I realized that I had no method at all. Now I’m trying your method and I love it. I’ve been fascinated to read that there are so many ways to approach the charts and I’ve tried out some of them.
Before I always used to draw some lines that touched the lows and the highs. If there was an up trend or a down trend, these lines usually told me about the strength of the trend. At least this is how I was reading this info..I also used to draw a line in the middle to see the average and considering where the price was at the moment i wanted to enter a trade, i was looking if it was above or over the average and if the price were going up or down.
I used to take many trades at the same time to spread the risk into different pairs (this is what I was thinking..)so it’s happened several times that when I was winning in some trades and i was losing into others, if the sum was positive I usually close them all and take the profit.
Before I usually never fix the Stop Loss or Profit Target in advance and few times (especially with gold) I move the SL too far because I couldn’t belive the price could go so high (or low). Now I’m learning to calculate the risk and fix it in advance.
I also used to open several position of the same kind, for example a bid, at different levels of price cause I was convinced that the price had to follow what I was expecting.
I was focused to get as much as possible from a trade so I hardly close the trade even if was positive cause I was waiting to get more. Sometimes this action has reversed against me and ended up with losses. I’m learning now that “less is more”.
I was much more emotional compare to now. When I blow up all my account I was so shocked that I couldn’t touch the website for several days…it happened (fortunately) when I was almost there to open a live account. Right now I’m much more calculating and cold when I take a decision and I accept consciously that losses can happen. If they are calculated, and I follow the right strategy, the global account will be in positive.
I’ve learned that there is a logic in the retrace, before I just could see the price going up and down following the main trend but I couldn’t consider how far this could go. I love the use of fib and I think it is really amazing how this principle applies to so many things in nature and how much is respected also from the market.
I learnt to take pics of what I’m doing, keep track of it and reconsider what I’ve done when I took a trade. Before I’ve never done that..
I’m learning to be better organized also in my laptop.
I’m learning that is important to have my own balance and try to be as fair as possible with myself and people around me. I’ve always tried to do this but now I do this to achieve the right mentality to be a winner in this field and in life.
I have been very focused and I know so clearly that this is what I really want for my future. Now I feel much better when I look at the charts. I have a higher level of consciousness. I just love what I’m doing, I feel very lucky and I put all my energy into this and I can see so much progress in what I’m doing.
And this is really great! I’m not talking about the number of trades that were successful compare to before, I’m talking about a real, visible change that is happening to me and that I can notice in all I’m doing, in “how” I’m doing things.
Today I know myself much better than ever before.
Thank you Vance.