THE TRUTH ABOUT FOREX TRADING! (Interview Jason Graystone)
How's it going today guys welcome back to the channel I'm here in New York City with a man by the name of Jason Graystone, it's. The first time I've ever talked to a trader, on the channel here so it is super exciting here, all the way from London yep, so thanks, for taking the plane. Trip out I certainly appreciate, it great and so, why don't you go ahead and start by doing a introduction. About yourself what, it is that you do yeah, thanks, for first, of all thanks for having us on on the channel it's a real, joy to be out here in the New York City I'm, aside from the traffic from the traffic and the humidity but for. Those of you don't know me my name is Jason Graystone, I'm a professional, currency. Trader and I'm also a co-founder of a company called Tier one trading, we, specialize, in helping, people, achieve financial. Independence through. Speculative. Strategies. In the financial, markets, I'm, frequently. Number, one author. On trading vidcom, I've featured, in blogs. And podcasts I'm, currently, writing a book which will be out later this year and I'm. Also invited, to speak around universities. In in the UK and take part in research. For, business, development and things like that so really. You, know enjoy entrepreneurialism, as, well as trading but, trading, was what allowed me to be, financially, independent, yeah we were talking about that Lobot off camera I think it's super interesting but for you trading was a way for you to kind, of escape the traditional, work, environment that, you weren't really a fan of absolutely, for me trading, is something, different for everyone and for me it was a vehicle to get to a point where I just had time I wanted, the time to decide how I spend at that time and it was it was a way to accelerate. My wealth in, order to do that so. That's. What that was my motivation for it yeah I know that's one of the most frustrating things is when you don't know exactly what it is you want to be doing you don't have the time to figure it out and so, I think for a lot of people maybe they focus on wanting. The money but really it's more important to figure out why it is that you want that and that's really incredible to say in, order to figure out what I really want to do with my life and what really interests. You on a natural level so for me the money is just the blood product you, know it's not you. Need a why and we're gonna go through that because. The. Reason I wanted to come on this channel is I really resonate with with Brian's approach and, if you're a if you're familiar with trading, at all you're. Gonna see that there's a lot of. Out, there right I can say yeah that's probably fine. There. Is a lot of unethical. Educators. There's a lot of people selling dreams you. Know false, expectations. And people are really falling for this stuff and losing, a lot of money they. Really are and I lost, a lot of money myself and. Over. The years I've worked with thousands. Of traders, and I've seen a lot of predictable, patterns I've seen what works what doesn't work and it, is a massive, failure. Rate it is a massive failure rate yeah do you know do, you have any numbers on that as far as what it is I know it's quite high and some of the stuff I've looked at before it's it's most people are unsuccessful with their rate is about, 90%, that's about what I've seen - about 90 percent are unsuccessful yeah, we know that from Roca, statistics, that about 90 percent of people lose.
90%, Of their capital within. 90 days so, it's 1999. 1999. - really, a good, to. Remember but yeah I mean that's that's. What I'm worrying about trading, as well and so obviously, you guys who've watched my channel before know I'm a long-term. Value oriented, investor, so looking. At both of us we're kind of polar opposites, here because I'm more focused on the, fundamentals of a company and you're looking at strictly charts, right yeah everything you're looking at currency. So you're looking at just trading, look. Based on patterns right of, course and and I was always the, reason this fits so well is because I was very much a passive investor, invested. In businesses. Stopped. Real estate investment, trusts, and and. Startup businesses as well but, they were very although. It take the take the startup businesses aside they're very passive, boring. Investments, they were long-term and, I. Had an appetite for risk and I wanted to just accelerate. A little bit so, I started, exploring, speculative. Markets like options, and Forex and. I went into forex and I blew around 36. To 38, grand initially, that's, how much you lost yeah that, the learning curve that people. Usually experience, or is that just kind of I think I think, I made, every mistake possible. Okay yeah I followed, you know signals. And all, the bad stuff I'm gonna go through with, your listeners but after. That I became very. Good I learned a lot about what didn't work which, allowed me to become, really, good and, I later on realized that it's actually you should be focused on not. What you're not losing rather, than what you're gaining and, and if you can just focus on that you become very. Good so, I went, for all the crap there's a lot of scams out there there's a lot of automated. System signal, services, people selling pipe dreams and. Over. The years I've been, fortunate enough to work with thousands. Of traders, in in multiple. Countries over 50 different countries, and what. We've seen is is very predictable, patterns, in why, people fail because we've been analyzing data on the behavior, patterns of people what let you know how engage they are sure how accountable, they are what are they watching what process, are they taking, are they going from the start to the finish and they, skipping are they jumping you know jumping, ahead and, that do they actually want it you, know they got realistic expectations, and I've.
Produced. A framework. Almost. That, will that will guarantee, your, highest, probability of, success, obviously it's down to you as a sure either in the end based on looking at the behaviors, of past students, of those people, who haven't had a good experience with it absolutely and, if, you follow the framework, in this way which. A lot of it is down to psychology, by the way you know the skill is is the minority believe, it or not and that's pretty much the same thing as well with investing, in the stock market, it's the psychology, of it you know as far as the investing, goes and the fundamental, analysis, that's based on looking at the numbers and the principles, but it's. A totally different experience, actually. Doing it and as. Far as like the risk side of it goes I know you mentioned that having that greater risk appetite, I know personally I, dabbled. Around with swing trading very, early on in my investing. Career and I. Can remember I had $500, I was swing trading and it was keeping me up at night worrying, about it so I learned early on that I do not have the risk appetite for, much. Of anything beyond what I'm doing now so I think is it something how do you know I guess when you have that risk appetite, is there something you just try it out and you find out if you do or yeah, I think by the time I'd lost 36. Grand, you know it wasn't just blowing. 36, grand the market that was a long learning curve it was over 18. Months to two years and, how did you feel about that though, you. Know it makes you feel like a bad person or you just felt like okay I'm getting there I felt frustrated I, did, try, to look, at it as a donation. To my education rather, than a big loss but. At the same time it's a that's a lot of money you know it's a that can be that. Can be a life-changing amount, of money to lose and, unfortunately. I was in a you know I'm a I'm a businessman, and I'm, not stupid, and I'll never trade money that I couldn't, afford to lose yes, but, it's still a lot of money and by the time I'd lost that much I really sort of felt like I owed it to my, family as well like it was, I. Was, like you know that's that's multiple, holidays, and and, I was thinking all this all the money that I'd blown and I really.
Just Needed to knuckle down and and and get, it done and I knew. You know you know you're, so proud as a person, you think you know you. Don't wanna be told that you're doing things wrong and then you see, dunno and they just keep doing it and then by the end of it you're like well there's no such thing as a free lesson either either pay for it in terms of paying for education or you make mistakes, in the end the market losing money but absolutely, that's like I have a friend of mine who treats options, and he'll text, me sometimes saying he lost 20 30 grand in a day and it's like but, you can tell that it doesn't affect him really, I think what it is if you feel like less of a person after, losing that money then, you, probably shouldn't be involved in something speculative, because it's just money, I mean it's a tangible thing but it doesn't make, or break you as a person, I think a lot of people tie their worthiness. To their monetary value, and I think you have to have that separation there, to really do something, like you're doing absolutely and, it's really important as well before, we get into it I'm gonna talk about it in a bit but it's really important. To build a trading system around, your lifestyle, and your personality, because. If you don't you're, at you're essentially doing something isn't aligned with your your, company your comfort zone and you're just not gonna succeed and it doesn't need to be that way you can build systems around, your personality, so that you've got the best chance for success, so I'm, gonna go for a bit of a framework from based on all the information, and the data that I've analyzed over the years and I, want to just before, we get right into that I just sort, of be punks and myths because some of your listeners are probably thinking, I get, asked all the time isn't it gambling, is it risky sure I mean I've said things about the channel about it yes to be honest I don't know a lot about the trading side of really, I don't want you don't know much about it at all so no and and, like anything you know the markets of the market they just do what they do and it's, not the market, that's risky it's, the. Approach, you take to the market that's risky so, if you think about a casino for, instance you've got one-armed, bandits, you've got cusine you've got poker, table you've got blackjack got, roulette and, the reason the casino comes out on top in the end is because there's, no one who's consistent. There's no one with an edge they just go there blow some money they've got no strategy no plan, and, they. Are approaching, the casino, as a, gambler right.
Whereas If you look at the winning poker table, it's always the same way as they're always the same players at, the top of the tournament, they're, winning the tournament time, and time again because, they've got an edge they're, not approaching, the casino, as a gambler they're approaching the casino, as a business, it's like they've. Got an edge they've got a risk. Management, strategy, and money management strategy they. Know when to get in and get out there know when to stop and then, I went to continue, and the, markets, are exactly the same they the market you cannot control it just does what it does so, it can't be risky. The, market, can't be risky your approach to the market is what's riskier, that there make sense yeah so lots. Of people think that it's risky gambling, but it's down to you to. Approach it professionally. As a business, it's, something hot for it not to be rose we're looking for an edge would you approach it like you would the casino, you're, gonna get a similar outcome more, closely right of course and before we go on I mean people. Come to me and say I want to be a consistently, profitable trader well the clues in the title right you have to be consistent in, and all the time right at every trade yeah absolutely, and, you just need to show up and do the same thing same thing and I'm. Gonna go into that in a bit secondly. People. Think that it's you, have to be intelligent you know if they're high IQ, I came, out of school with one grade and that was art. And. It's, just simply not true and if it was true you. Would, see a lot more brain surgeons. Itching. There too 50 grand job so earning seven figures really because they're far more intelligent, than me so, that's. Absolutely not, true the, next thing is that people think you need to know about all the global affairs you know what's, going on in the country or current events and how what's, going on in the political landscape and, absolutely you know unemployment rates, Bank rates all, that type of stuff and that's not true Eva so as, technical. As a technical, trader I'm looking for patterns in the market I couldn't, care less what's going on in the world if. You you, know the market doesn't affect me, the. Bank rates don't affect me bricks it doesn't affect me I'm just looking for a problem. A probable, edge out, of patterns in the market that are predictable so. You absolutely don't need to know about all the global affairs of what's going on and lastly. On that. People, think you need lots of equipment lots of peace you know you, know obscenely TVs. Six computer, screens and all kinds of stuff going on in short subdue you need all that or is that just kind of and, something, that helps you or is it yeah I have to keep the process I started trading on a 15-inch, laptop, so you absolutely don't, need all. Those screens, I say once you get down the road you know it's good to have two screens at least because I'm. Going to go through some equipment, that I recommend, for you guys if, you're looking to to, start trading. To. Is good because you can have you. Know the markets and you can have you. Know something. Else on another screen if you're doing other things but you. Don't you, absolutely don't need six screens down, the road you might the, reason they have six screens or eight screens is because it's they've got a lot going on and and to make it easier they have different charts and different screens sure you're, not going to be on Wall Street from from day one and you absolutely don't need. Tons. And tons of equipment okay well that's something I didn't that's a bit debunked right there because I got that figured you needed the six computer, screens and I said, that in the past one thing that was interesting I just wanted to mention I was looking at one of your videos and you said there have been times where you go like a very. Long span of time without a trade because the right pattern, doesn't show up for you that's right what's the longest span you've gone without a trade, there's, a saying that you don't own money from trading you earn money from waiting okay, and and, it's absolutely true although, you know essentially, is trading in the end but you, you trading, requires a lot of patience, and one, of the other myths is that people, think that you always have to be in a trade when you absolutely don't easy what, we're waiting for is a set of rules to play out and then we, know we have a paper-thin. Edge over, the market sure the probability. Of what's likely to happen next based on that pattern happening, provides.
Us With our edge and if we can consistently, trade that pattern that's, how we earn the money so that could be one. Week that could be five, in a day that, could be once, a month Wow and and that's how it goes so. It's really about the patience is about, patience and patience that's also there's people who think similarly when. It comes to investing, they, think they need to be all in the market at all times and if they have any cash they're like oh I've, got a spit I got to get this money to work I got to put it to work and then you hear about people going all-in with the stock market investing. All their money and then, they have no mobility. There if a deal comes along they, can't buy anything because they're already all into the market so it's, very similar to of that patience aspect and knowing when to when. To hold them you know hold onto your money and say okay I'm gonna wait for a better opportunity or, you know look for what it is that you're looking for absolutely, and and, bear in mind that with the, purpose of this video is to give you the best. Possibility. Of, succeeding, into, into trading if that's something you want to do the, last thing I need to mention on this bit is is it's not a get don't look at it as a get-rich-quick, vehicle. Like if you're trying to think about how much money you can earn from, trading you're, really missing, the elephant in the room it's, it's it can be the. Fastest. Way. To grow your wealth I've you, know I've I've. Invested, in businesses, I've invested in in property, of invested, in stocks. And shares and you know this, really is the most rapid way to accelerate, wealth, but if, you're. Just chasing the money from day one you do. Enough your own reason they're in the wrong reasons which, is leading us on to really the, first step of the framework so the.
First And. You'll know just as well as I am the first step, in in the framework the most important, thing is to actually want, it right, and and what I mean by that is so. Many people out there are sort of fantasizing. Over someone else's dream, they, see someone that's, hit a trade. And or they you, know this crap where they're flying around in rented helicopters, and Lambos and yeah and the money I've seen it all and of course of course and flashy lifestyle, their kind of in-your-face co-op. You're rich absolutely. Yeah and what people do is they go what you doing and they say well I'm trading and then they go oh I want to trade do. You want to trade because I'm telling you if you don't enjoy actually, looking. At the markets, and you know enjoy. Solving, the puzzle sure, you're not going to stick with it because there's lots of hard work down the line you've got to put in people. Tend to ignore that hard work piece and they just see oh this guy's driving a Lamborghini I can do that too if I started doing whatever he's doing so yeah it's. Not for everyone trading, isn't for everyone do you have to have a natural interest in charts, and patterns and puzzle, solving like you were saying oh it's I would say that you have to actually enjoy. You. Know looking. At the markets and coming, in each day and you, know you don't have to look at them all day you can do day trading swing trading which will go through and you. Don't have to spend lots of time in front of the charts but you do have to have an enjoyment, for, the, psychology, in the markets, and and going, through the charts because lots of back testing data that you need to accumulate, so, that you've got you. Know the psychology, teacher to put that into your plan and, you. Have to just actually enjoy doing it so know that you actually want to trade because that's, the first thing that's important, and and why because, the, monetary, value or, the monetary gains from from trading, is you know it can be life-changing and, I'll. Just with a couple, of Wall Street traders and they said the same thing you know it can be life-changing but, you don't you. Know it what's. The money for sure, it's just money right well, there's, some kids in the prop firm they just driven by the money because they haven't got that they're just out of school they're just trying to better. The other person, for money like it doesn't really mean anything to, them they're just trying to get more money because it's a competition. Yes you can have the most money in their bank account not really why do you want yeah. And it was interesting too you're talking about some of your motivations, for doing what it is that you do and wanting, to like give back to people around, you and really, the more money you have the more good you can do for the world, the more good you can do for people's lives sure, for me I mean for me is is, to. Free. Up my time to do what I want to do and, as I said to you earlier I asked, people or if people say you're driven by money, you know I are these are the sorts of people that I say well how much would suit, you and they say something like well half a million or a million or do me that would sort me out and Monica and I think that's very selfish, because, it's just you're just thinking about you, and your immediate family nothing. People around you or your community or people you could really help absolutely I'm thinking, much bigger term and, when you can teach someone the. Realistic, expectations. And teach and they get results that's, life-changing and, that is there's not a better feeling than that and even. Though like I say the Wall Street traders it was with yesterday even they are. Going. Into education because there's just so much rubbish out there yeah it's important, to get the information right, because it's giving it a really bad name. That you can probably you, probably seen so, just to tie it in here in case you guys aren't sticking around for the whole interview you have a whole YouTube channel right where you do videos like this educating, people pretty much for free and yeah, yeah, I've got, my own YouTube.
Channel My personal channels Jason Graystone I'll link that all up in the door down in the description below for you guys too but it's in terms of just kind of giving back that's one way that you do it as well just by kind of making the, videos helping people showing them the basics absolutely. And I've got a book coming out later this year that you can go and read but, we're gonna go through, this video we're gonna go right into technicals. I'm going to show you actually how to make money in the forex market so it's gonna be really valuable for your so if you end up taking a part from this video bookmark it and come back to it it's gonna be a long one but a lot of value in this one yeah it's gonna be a long one there's gonna be a lot to take in I'm not gonna give you like everything, because I just spit that we'll be. Sleeping. At some point it's gonna be a good one so, the. First step as I went over was the one and the why you have to know that you actually want it and why you want the second thing is expectations. So this is the next problem people. Because. Of the way it's advertised, on TV or these adverts, people. Think they. Massively, overestimate. What's achievable in the short, space of time so the first 12 months say sure they think that they're gonna double their account in a month they think they're gonna be on yachts in a year yeah and and it's just no. Just not realistic it's not realistic it's not going to take you, I'll. Be very surprised if it takes you less. Than 12 months to, really go, through the process, and learn properly, and. Have a system that you've tested and you know paper traded even and then, gone out into the markets I'll be very very surprised, but. Then because of that when they actually start, doing. It they, figure out it's quite hard they blow a load of money and then, what, they do then, is they underestimate. What's achievable from, 12 months to the 24, months say sure and you know that's when the results can really, really compound. And you see, exponential. Growth and people. Get turned. Away by that so what. I want to do is just give, you some expectations, so it's, going to take you around 12 months to really really learn and then after that you know the money if you can just go through and go through the process the right way the money just comes now in, there twelve months how many hours a week or a day are we talking about you it, depends what type of trail you're gonna be and I'm gonna go through that in a bit more detail but you can do anything from, the. Testing is what takes the most time I'll test the testing is what takes the most time because, you you're essentially, testing a strategy. Back. In time and and that can take you know you want to go back about five years and okay that can take a long long time depend on how many markets, you're going to be looking. To trade sure so that's that's the most time-consuming and, the most grueling bit and. I'll go through the process of that the. Next thing is people. Will just go into it not really knowing the numbers so they don't know what. They're going for it's like they're, just trading you. Know am, I going to am I going to replace my income or I'm going to replace my income should I doing with the money and there's. A very very simple, formula, and you. Talked a lot about, stock. Market investing and passive income right building passive income streams and. Essentially. If you've got any sort of liquid assets, like, fund. Money, and funds you've got some. Some. Cash a cash, buffer some savings, anything. Like that essentially. All you're doing is you're taking that and you, are working. Out your expenses for the month and you, just want to -, you're trading income. Divided. By your assets and then is essentially it and what they'll give you is a is a figure, in time so, if you're getting paid monthly say for instance you've got $5,000. In assets or okay right and. Your, expenses, are, $2,000. A month say if, you're bringing in a thousand, dollars in trading, income per, month, well. Then if you do the math on that you know the 5,000. Divided by the 2,000. Minus 1,000 which, the calculation, is here. You're. Gonna have five months you could you can buy five months you've replace you have got financial, independence for five months you okay you've placed. Your income for five months I've never really thought about it that way that's very interesting, right so this is what I was working from from day one when I was doing the whole goal was to free, up your time yeah, by generating, this income absolutely and by having that sum I put, this down when I was 26 years old and by having that sum in place I knew what was going for it, wasn't, just a dream, it.
Was A tangible number, we're reaching for not just some pipe dream like, a beanie, yeah, million. Dollars out of nowhere absolutely. And by doing that you have something tangible as you say here's. A great thing as you, as you get better and better at trading you can you. Can match your living, expenses which, then you. Know your. Financial. Dependents sure and then at that point you don't have to go work, if you don't want to do that anyway, shuran. Your, time and actually free up your time you can earn even more money because you're you're focusing, more great energy it's where it's on to it absolutely, so you got it so just. Not have your numbers work that out no no what you're working towards and know that it's going to take you a while to learn all right so that's expectations. The, next thing that's really important, is accountability, self, accountability, because it's all on you with, other markets you know if you're if you've got a shop you. You're selling a product you're relying on customers, you can blame staff, they're not showing up you've excuses, you've got a series you can blame like the supplier for bad goods you can you can blame the, economic. Crisis, you can blame the weather everywhere, blame the traffic. Blame the. Geographical, location your shops in and everyone's gone vegan is you. Can blame things, with. Trading. The markets, it is all on, you there if you lose money it's, your fault right, right and that's kind something, I've heard from people as well as they say like oh the. Stock market stole money from yeah, it's like you, handed, it over you know if you lost money you have to at least own up to that you can't blame the market it didn't reach into your bank account and pluck out money, we hear the same thing and it's like oh the broker stopped me out or the broker took my money and if you if you make statements, like that or if you hear people say statements, are there it just shows that a lack of knowledge. Towards, how the orders, are, executed in the market so absolute. Rubbish but, you need to know that you've got to be accountable self, accountability, is absolutely. Key secondly. The. You've. Got to be accountable to not go off and, chase. The shiny object, you've got to stick at one thing I was just gonna take you forever this is what I struggle with I just you, think that someone's got a better system and go and follow that yeah you jumping around from one thing to another it's, just kind of dabbling with it and it's sorry inefficient, yeah if you just have one thing, and go for it and don't worry about what, everyone else is doing, yeah just focus on one thing one, system, and.
That Happens a lot of the time too with the stock market if there's a lot of it's kind of a social thing if you're investing you talk to your friends who are investing, and you hear about your friends in a certain stock and maybe, you're not happy about the one you're in so you say oh I'm gonna sell this and buy that and you end up jumping, around too late or anybody have Lorre of activity, and really having no success with it because you're not really, doing it for the wrong for the right reason out you're just trying to it's not a strategy, yeah there's no strategy to it it's just okay what's this guy doing I'm gonna follow him, absolutely, okay so now Jason, is gonna jump over and give you guys some recommendations. As far as what equipment you need to get started with this whole process so we'll see you guys back here in a bit sure, alright. In this lesson I'm gonna be going over the equipment I think you need to be able to trade professionally. There's. Lots of common misconceptions about needing, thousands, of pounds worth of PC equipment, and six, monitors and so on and that's, simply not true when. I started, trading I started, trading on a 15-inch, laptop, and I did most of my testing, on that laptop as well so, in this video I'm gonna go over what I think of the minimum, requirements, and then I'm gonna go over what I think you should really have if you, have the budget for it so if, you only have the budget for the minimum standard, then, go. Ahead with that and if you I don't have the budget for the minimum standard, well you can either not. Trade or simply, go with what you have so, when I start talking about I 5 or i7 processors. And you say you only have an old core. Duo then. You, can start on that but if you're going to treat this as a business I really believe that you need at least the, minimum specification. Laid out in this video, so. You may be aware that technology, moves very, very quickly and it, becomes dated, quite quickly so if the last time you upgraded your PC was over, three years ago say and, it's likely that the software, or the hardware, that you're running is out of date so. The first thing you need is a decent processor. And if, you have recently bought a laptop or, PC the, chances are you already have one it's, going to be an i5, or an i7 processor, the, minimum requirement, in my opinion would be an i5, processor. And if you have the budget within an i7. The. Second thing that's important, is the RAM what. Ram does is it allows your PC to run multiple, processes. At once so, if you think of the process of being the brain of your PC well, then the RAM is how, many different things the, brain can juggle at one time and what. I recommend is four gigs of RAM as a minimum, now. I'm going to suggest to you that you, go with an 8 to 16 gig of ram but if you buy a new PC or laptop it's, likely to come with 8 gig, unless, you specify otherwise.
Ram. Is very cheap and if you get the chance to upgrade when purchasing, it, will be well worth investing, in that upgrade otherwise you. May get down the road and wish you had done it when you bought the PC but. Just know that 8 gigs of ram is enough. So. Next on the list is an. Upgraded hard drive if, you think of RAM as processes. Handle at once then the hard drive is the memory, it's the place that stores, all of the processes, that aren't being used now. The speed, of which it can grab the unused processes, depends on the speed of that hard drive so. You can have a lot of RAM and a great processor, but if it takes your hard drive a long, time to find the information that the RAM and the processor, is asking for then you'll still have a slow machine now. Many machines will come the traditional hard drive such as a one terabyte hard drive, 7200. Rpm SATA drive and it'll get the job done for most people but. Since you want most people, and you, are a trader in the making, I'm gonna recommend that you upgrade to a 256. Gigabytes, solid-state. Drive. Now. There are a couple of examples here the first one is a samsung SSD. 830. Which is very good the next one is a SanDisk SD, SSD, P -, 2 5 6 G 25. Now the next thing I'm gonna go over is a solid, graphics, card because, crushes, aren't, fun a graphics. Card will allow your PC to run smoothly without lagging crashing. And run, multiple programs and, use multiple, monitors if you want to without getting that blue screen of death and then you have to restart your PC, and you don't want to have to deal with all that so. You don't want a graphics card that's too small especially with all the charts and live data that you'll be using and. I have two recommendations here, the first one is an EVGA. Geforce. Gtx. 680, which is an amazing graphics, card it's what graphic designers, used for cgi and the other one is an EVGA, geforce. Gtx 760, which. Is nowhere near as, expensive, as the first one and will happily, run a couple of monitors but, if you want to be able to run three, or more monitors and you're that type of person then, you, may want to go for something like the 680 so, the next thing is monitors, now, don't. Believe that you need 6 plus monitors, to be able to trade successfully because. You don't you, can just use one monitor, I would, recommend having a second screen purely, because you can use one for your chart testing, and one to log your results, you.
Can Use one for your analysis, and the other to place trades or you might be part of a live room where you want the live room on one screen and your, charts on the other so you can follow along it. Simply makes your life easier, and that's really the only reason I have. Six monitors but. If you think of all the stuff that I do I've run a webinar have news and social feeds going on have the lower timeframe pairs, the higher time frame pairs the, screen recording, software running. And I need to keep my own a lot of stuff at one time especially. As I'm talking to people in the live room and explaining, my analysis, in detail I need, to able to keep an eye on things as I trade live in that room and I don't want to miss anything but. For you it's really just not necessary, and with regards to monitors I use the AOC, 27-inch. HD. Monitors, but in my opinion you. Really should have two qualities, the first is that the monitors should be HD so, the charts are crystal-clear and the second is that they, are anti glare or matte finish screens, these. Two qualities will ensure you don't strain your eyes when spending hours, in front of the charts whilst learning and testing and even trading, now the last thing is your, internet, connection a decent, internet connection is essential, to trading, execution. Is critical so you need your connection to be fast working. Reliable. And not cut off just as you're about to place an order or a news event comes out and you can't get your stop-loss in place it, happens, so do your best to make sure it doesn't I would. Recommend an upload speed of at least. 786. Kilobits per second, and a download, speed of at least 3, Meg which, is very common these days anyway. But. Make sure you can get fast internet don't, skimp on it it will cost you in the long run believe, me. All. Right so just to recap you need a computer with an i5, or an i7 processor, 8. To 16 gigs of ram upgrade. To a solid state hard drive, upgrade. Your graphics card a monitor, that won't fatigue your eyes and a solid internet, connection, and that's, it and even, if you go with the low end of all of that stuff you'll still have a great trading machine it's gonna do everything you need it to do so that's it that's, what I recommend and if, you have all of that then you're good to go and this must be one of the most commonly, asked questions that I get what.
Charting, Software do you use what. Charts are those what do I need is. It ok if I use this one is it ok if I use that one and I, know you're probably seeing tons of different trading platforms, advertised on the TV or web and you have absolutely no idea what, one you would need so. I want to share with you what I think are a few, of the best charting, packages that you can use I'm. Gonna go over just 3 different platforms and give you the advantages, and disadvantages. Of all 3 in my opinion. Now. Firstly, there, are a few functions that I think you need on a good charting, package, the first one is flexible, movement in, other words you want to have that 360. Degree movement so. That you can easily manipulate the charts whilst doing your analysis, the. Second, thing I think is very important, is to have real-time data connection, you, don't want a delay in your data because this would be detrimental to, your trading, the. Third thing is a full set of indicators you. Want to have all the indicators at your disposal should you require them now I use very little in the way of indicators, for my own trading but, you'll need to have the RSI, ATR. And the Fibonacci, indicators, as a minimum, so, the first platform I'm going to recommend this trading vidcom, trading. Vidcom is a completely, free charting, package that offers extremely. Flexible and powerful tools in real time you. Can now link your broker account, to that package and you can place trades, on the charting package as well for, charting, and analysis, this is a great package it, has the 360. Degree movement on, the charts you can set watch lists, you can set alert levels that will email you or text your phone when the market has reached them so you don't have to be at your PC all day and all, of your analysis, is also saved, on the screen until you delete it so, you can close the webpage open. Up on another PC, and it will all be there just as it was when you left it it, has all the tools and indicators, and the developers, are frequently, releasing, new tools and features this. Package will give you news, releases you, can place demo trades so it's good for your forward testing or demo trading and, it will even log your performance, for you a couple. Of downfalls, to the package in my opinion is the lack of data you, can currently, only go back around a year or two which means if you're testing strategies, on the 60 minute time frame or even the 15 minute timeframe the. Chances are you're not going to get that hundred, trade sample, size that I recommend, now, the second thing is that this, platform has a social, media aspect, to it as well where, you can share ideas with other traders which is quite cool but, the only downside in my opinion, is the forum section this, can be extremely damaging. And dangerous to, traders, because. Trading. Is a fairly lonely business, and some, traders get tempted, to participate, in the forums, and this results, in Chinese whispers. Correct information or. Just simply. The urge or temptation to check that next shiny object which. We're trying to move your way from now, this will end up with you getting lost in the abyss again and that's not what we want so now don't, get me wrong this is a great, platform. Except. There isn't, quite enough data in my opinion, and the, forum section should be approached. With caution, the, next platform I'm gonna recommend purely. Because it's still very popular probably, the most popular trading, package, and. You may or may not have heard of it but that's Metatrader, or MT for this. Package is clean it has all the indicators, you will need here and can place trays directly. On the chart so it's a charting package and a, trading platform in one the.
Downside, To this platform in my opinion, is the indicators, aren't very user friendly the. Charts aren't easy manipulated. And can. Be quite limiting, when it comes to the more advanced, trading strategies, the, platform is free and as long as you have a data feed provided, by your broker you're good to go, now. The last trading, platform I'm going to recommend is ninja trader ninja. Trader is a very crisp, clean, and extremely. Flexible charting, package again, it's a charting package and a trading platform in one so you can place trades, live on the charts and all, of the tools are extremely, user friendly the, charts are easily manipulated, and everything, is customizable, the. Platform it gave me free if you have a data feed from a broker and you can save different workspaces, for different portfolios. Or back-testing, and real, trading workspaces, also. The platform offers advanced ATM, strategies, which means once, you get slightly more advanced you can code your own automatic. Trade executions, this, is the platform that I use and I think it's a great package not only because of everything I've just mentioned but to top it off they have an outstanding support. Team with tons and tons of video, tutorials on the YouTube page so there. We have it you no longer need to worry about what. Platforms. You should choose and what, charting package to use I would say go and have a play with all free get, a feel for which one suits you best, ok. Guys welcome back so now Jason, is going to go into more detail here about really, identifying. Some of these patterns in the market correct yeah that's right so first. Thing I want to talk is the. Difference between fundamental. Analysis, and technical analysis, because, there's. No right or wrong you know there's people that rubbish either, or yeah and the, truth is there's, no analysis, that tells the future so. As. Much analysis, that you do you have no idea what's gonna I mean you can kind of manage, your risk involved, with investments, but there's never a guarantee that the markets gonna go any one way or another no so I think it's crazy when people say oh that's you can't use technical assets, it's. Crazy right so fundamental. Analysis is more news, based more you know the economic data what's. Going on in the world and really, the. Reason that I don't like to use fundamental, analysis for trading is. Because, you're. Not guessing, the, the, figure or the result, you're guessing the, the market. Participants, reaction, to the result which is impossible, like it's you can't you don't know how people are going to react to a certain news release or a certain, event it's. The same way as well with investing, in companies when, you're trying to bet on an earnings report you can guess about what the numbers are going to come in at but you could have one thing in that earnings report that people, don't like and that stock can go in the complete opposite direction of where you're expecting, it to so absolutely, I completely understand, you on that piece yeah hundred, hundred percent and with. Technical, analysis, technical. Analysis, is is, based on psychology. So there, are patterns in the market although people think the patterns are you, know they. We never know what's going to happen next in the markets right but contrary. To popular belief, there.
Are Patterns in the market that have stood the test of time they're not entirely random and, the way that we build our edge is to, identify, a sequence, of patterns. In the market so that we know that if we get this pattern then it's. Likely to do this and it should and that is and then what we're looking to do is build, rules around that pattern so, if we see something that happens frequently and, we go back and test that and it's happened frequently for five years or six years or ten years then. If we can build rules around entering, that exit, in there that move then. We've got a high probability we've, got a positive expectancy, we've got a system that provides us with a positive, edge a statistical. Positive edge and that's, really, all we're looking to do so the reason I love technical, analysis is because we don't after worried about what's going on in the world there's, a the saying that a technical trader can trade the market regardless of no in the market and although. That's not entirely true because you have to test the markets sure that, what is what they're saying is because. Of the technicals, it's the patterns were looking for it's not necessarily. The market, even it could be Apple Google it could be currencies. It could be futures it's. The patterns we're looking for in the psychology, and now, can you make money in both bear. Markets and bull markets with this type of strategy does it matter if it's going up or down yeah, it makes no difference that's one of the great things about Forex. Which is. You can short the market and you can you can either, market, what's. The majority, of the trades you're doing are they betting, against, or are they bullish trades so with with, investing. For instance, what. You're really doing as a passive investment is you're you're hoping that it goes up sure so usually it's asset appreciation you're. Gonna buy it and eventually, sell down the road at a higher price or collect your dividends absolutely, yeah with the forex market is a bit different it Sencha, Lee moves sideways over time so although. It. Might be going, bullish for a long long time it. Will end up at the same price that it was a sooner. Or later sure and and, we can go short we can go long and we KITT and and the forex market actually consolidates. For. A longer period of time than it actually is in a trend so okay eighty seventy, to eighty percent of the time we're in consolidation, some form of consolidation. And, I need 20 30 percent of the time we're trending what, do you trade when it's in consolidation, or now yeah so I've got strategies, for. Bullish. Okay. Or, consolidation. Another. Important, thing is to be able to adapt to that you know if not just be arrogant. And sort. Of stuck. Right now mainly if you can only make money at a certain and that's also like people who only can, make money during a bull market with investing, you have to know how, to make money and all you, gotta be an all-weather investor, or trader as, well oh she's a traitor you know you can't just be. Able to make money at a certain time and then say alright I'm gonna take a break for nine months or yeah or wait for you, know I said it's an interesting point and I think it's important that you just, just touch on this again that trading isn't investing, trading, we're not just going along and and, yes, that's not what we're doing we're trying to get in and out and capture, a high. Move. In the market there's a high probability so. That we can get the profits out and that's it we're going in and out now how long is it I'm sure a various book how long do you usually have a trade open then is it you close them at the end of every day or do you have some overnight yep I do about, three hours a day trading, a day, they're.
Sort Of in and out within half, hour okay I really, day trade for the education, piece so, that I can show people what I'm doing the methodologies. The process, if. I wasn't doing education, I'd purely, be a swing trader so for. Our timeframes okay, I'm in the trades from anything for two days up to two. Weeks maybe okay, so they were holding it overnight I guess, there was one of the other misconceptions, is that all day, traders closed everything by the end of the day is, that true so with the stock market it's closed, at the bay with, the forex market you're in the UK it closes at 10:00 o'clock on Friday night and it reopens, at 10:00 o'clock on Sunday night you. See the forex market other than that it's open 24, hours from, Monday through Friday yep very interesting, so you could if, you wanted to trade at 2:00 in the morning you have the availability to do that yeah, you can you can trade 24 hours okay right. So now I just want now I've been over the technicals, and and and explained. A bit about the patterns in the market what I really want to do is show your listeners, how, we can identify these, patterns so I'm going to go into my trading desk and give you guys an example okay. Sounds good. Alright. So as mentioned just now we, can only look at the way that markets move and how we can identify some, patterns, and I'm going to be going for a simple pattern that I want to share with you that. Then you can go and, identify. For, yourself so, the first thing I want you to be aware of is the, market, moves how, the market, moves okay because what, you've probably seen the market move up and you've probably seen the market move down and you've probably seen the market move sideways, well. When we're moving up we, call this a bullish. Trend and, when we're moving down we, call this a bearish, trend and we're we're moving sideways, this is either called ranging, or, consolidation. Now, when we see the market moving in any direction there's. Certain things that we can pay attention to that. Are. Likely, to cause a reaction or, the, markets likely to respect, the first thing is going to be even handled. Numbers so, if we're talking about, the. Market being driven, and you know the patterns in the market being respected. By psychology. Patterns being, psychologically. Driven, sorry.
One. Of the things we're paying attention to even handle numbers so anything like a dollar flat or 1.5. Or. 1.1. 1.2. Anything. With an even handle number and, the market tends to respect, more, often than it doesn't okay so not every time but more often than it doesn't remember we're going for that statistical. Edge. Another. Thing that the market respects are numbers, with 50. In it so anything with 50, so 1450. 1550. 1350. So, 50. And even handle numbers just bear in mind that that's respected. And any. Time that the market respects. Any psychological. Number. What, we see is structure, so the next thing we're gonna show you is how the market moves so what you'll see is this sick lissa tea where we see cycles. In the market, of a, new. High a retracement. And then we'll see a new high and then we'll see a rat race Minh and then, we'll see a new high and the market moves in herbs and flows like this and usually. The. Structure. This is what creates structure. And normally, these structure, levels are created. By even. Handle numbers or. Significant. Levels of importance, that have been, respected previously. In the market, now. What also tends to happen is as, we push up what, we call this is a. Resistance. Level and what we call this is a support, level so this is like the ceiling, where we hit resistance this is like the, floor where we bounce we hit, that support level what, we normally find, is that, when. We put in new highs and we push back down previous. Resistance then, become, support, so the structure, is actually respected, as well so. One. Of the things I just want to touch on is how. To identify a. Trend. And what I'm going to talk about is how we look at the end of the trend and we can predict a reversal, so. First. Of all to identify a confirmed, trend we're looking for a three-point move, so, we're looking for this move the retracement and then the new structure hi and then what we know is we have a high probability that the market is going to continue up until. We. Violate. This, previous, outside, return or retraced in here at. Which point we're in consolidation, and then we need to look for that free point move again, one, two, three. In, order to make. A prediction that we're likely to see a continuation, to the downside, so normally we, see this this. This. This, until. We. End up reversing, again violating. This outside return or at Rayment and then, we look for that free point move again and it just continues. Like that and the reason we do that is because once, we hit that three-point move we, know we have a higher probability that. The markets going to move up or down depending on what direction we go in it now. The pattern I want to talk to you about today, there's. Many many different ways to make, money in, the market and I've been over certain things that effects structure, in the market like even handle numbers 50, levels previous. Structure, and historical. Levels. That have been respected, time and time again, um. But. What I want to go over in this video, is, when. We spot. A reversal. So there's a there's a pattern that happens frequently at, this point that. We can use to short. The market at the end of a bullish trend or if, we're in a bearish trend we, can then look to by. The end of the bearish. Trend and look to buy this up so there's, a simple pattern here called a double. Top now. You might have heard of this referred, to as a V, top but. It's a double top and essentially. What it looks like is this, we get to the end of the trend we. Then have, a small, retracement. Here and then one final, push up we, get rejected, at this test and then, we fail, to put in a new high and then, we roll over and, this, is called a V top or a double top and I'm going to go through the rules of this right, now okay. So let's just say for instance that the markets been pushing, up and we've, identified our. Test our initial, test and then, we've started to retrace what. We're looking for for, this to be considered, a valid, double. Top is a. Test, of this, high so this high wick of the candle, we're. Looking for a test, of this.
Level So. This zone here. For. The second test so what, we're looking for is a test of this high and what we can't do is close. Above. This. Previous. High so if the if the candle pushes up and closes above this previous, high what. We're talking about then is a continuation, to the upside so it's important that we wait and we wait for the close of this candle, and as long as it doesn't close. Above. The high it can do this it can push up and put in a higher, high but, it can't put in a higher, close. So. We're looking for a, test. Of this zone we. Cannot close above, this. High and, as. Soon as we get a valid, retest, which can look like this it, can look like this. Okay. It, can even look like, this. Or it can look like this. Okay. Because we've tested this zone and we haven't closed above soon. As we get this formation. This is considered, a valid double-top, now normally, the. Double tops are price. And time, symmetry, on the, retracement so we have price and time symmetry on the replacement as well but. Essentially what we're looking for is this little V and then. We're looking for a retest of the initial. Test high but. Not a close, above the high and this, is what we call a double. Top and and what typically, what we're looking for after this is to enter, a trade on the next candle, and then, we're looking for the, market to roll over so. Now you've got a grasp on how to identify some patterns. What, I'm going to talk about is how you actually build a trade plan because, this. Is essentially gonna be your your business. For being a trader and what. I always say to people is, the first thing you want to ask yourself is. When. Deciding what timeframe to trade or winter trade is when, can you consistently. Be in front, of your charts because people have jobs people, run errands people take the kids to school sure, they've, got this shop incoming on Tuesdays, got the bins going out on the first Yeah right when, can you actually consistently. Dedicate, time to being, in front of your charts because what we're going for here is consistent, profits so, everything, needs to be grounded, and based off of a consistent. Plan, so. It, makes no sense for, someone who's got a full time job to, try, and check charts, at. Between. Two. A client, or they're rushing to a meeting it's just it's, silly. Just you don't want to do that first thing you want to do is go right when if I got an hour to dedicate it might be at lunch it might be an hour after work after the gym when, I can interrupted, time be some interactive time yeah it doesn't matter it, doesn't matter if there's, more, you. Know volatility. It, doesn't matter what's going on just make sure it's a dedicated, time that you can just dedicate. To being consistent, and then just, find one pair for now one market, so don't try and you. Know find. Lots and lots of different markets, don't scale, through different markets just get to know one I, always, like, to think of it when I met my wife I met, her in a bar and all I knew about her that night was she liked white. Wine right that's all I knew the. Next day when I rang her up and wanted to meet her again we, went out for dinner I knew what food she liked and then, I knew what pattern she when she had lunch when, she was out on Sunday if you can just get to know one market, first, it's. You're gonna get. To know the market you're gonna understand. More about that market and how it behaves the. Markets behave in different ways there's different markets that behave different ways and it's. Best just to know one pair and if you if you're looking at what market to look at just pick one of the majors so one with the dollar in it so you're, gonna get a bit of movement any, pair of the dollar is going to be dollars, the base currency for the world and if you pick a pair with the dollar you gonna have some movement sure it's not really boring there's going to be some something for you to test is going to be something going on but just pick one so euro dollar pound dollar, you.
Know Aussie. Dollar and, if I believe that's familiar or similar to as well with people who day trade they usually only trade, a basket of stocks they have a couple that they've learned the personalities, yeah they typically don't just you know pick one out of random they kind of learn the personality. Of each one of these stocks and is that kind of the same thing is what you're talking about here absolutely I always say that you know trading is a business and these markets, that I've got on my screens and my employees they. My employees, they've got different personalities, some, perform better in under pressure some perform better in the summer some Sharpe late you, know it's very very similar to running any type of business and if you look at it like that you're. Gonna appreciate, that. Some. Are going to perform differently, and also. If you did start a business you wouldn't employ 30 people and they won that's very that's a very good way to explain that yeah right it's insane you just wouldn't it's kind of like because, I talk a lot about passive, income on the channel they. Say the average millionaire has seven sources of income you, get people who want to start all seven at once and it's like what are you gonna do that' kate one hour a day to each one and then become a millionaire so, you you, do one very well and then you move on to the next one so it's so, there's a lot of ways that that's applicable and then once you've got your pair, then and you've got the strategy, what, you want to do is you, don't just want to take every single, setup that you see you. Know if you if you was to go through different markets, and apply, one strategy you probably have, thousands. Of thousands, of different opportunities per month what, we want to do is we want to add some filters to that so that we get the higher probability move. So although, we've got an edge by identifying, a pattern in the market what, we really want to do is identify the, really, high probability, and you can add things like, filters. And what I want to do now if your listeners is just show you how we, go back to that example I just gave and then add some filters, to that to really give you the higher probability trades, so let's, jump, back to the desk. All. Right so what, else we're building out a trade plan what we want to do now is take the double top principle. And we want to apply some filters, so we're not taking every, double top that we see because if you if you just apply those rules, and you look for those rules for a valid double top you are actually going to see them, form. In many places that, don't provide high, probability. Trading. Opportunities, so what we're doing is we want to build some rules build. Out a plan and say I'm, gonna have some filters in place so that I only look, for these trades. In the highest, probability, zones. So, taking into consideration what, I've been over already what. We're gonna look at is we're gonna see that we've pushed up here and you. Can see that we've we've, held this level before we've started to see a rat race Minh so we're monitoring, the market pushing up and we've, seen a hold of this level which, just so happens, to be the. Zero 950. Level so if you look over here on the right we're at a. Psychological. Number, that 50 level and. We've. Hit that level and what. I'm gonna say is if we zoom, out now so if we just zoom out this market, and we go back in time we've. Put our horizontal line in and we've scrolled back in history, and we've seen actually. We've tested, this level once. Twice. Three. Times four. Times. Five. Times, six. Seven. Right. And we've helped this level much more often than we we've, broken. Through it so, every time it's tested, it holds, more often than it doesn't okay. Before it's violated, so, what I'm gonna say is you have a rule in your trade plan to say I need at least three. Previous. Touches, of this level before. I consider entering, this, trade so the first rule is a, minimum. Of three previous, touches, of this, level before I take the trade the, next thing I'm gonna look for is something, called the RSI, so this little squiggly line down here is the, RSI, which stands, for relative. Strength. Index and. What this does is it indicates, overbought. Conditions, in the market now I'm not going to go into too much detail on this right now but, just know that if we've pushed above, the, overbought, condition, it indicates, that the market running out of steam, so, if we couple this as a filter. With the fact that we're at a psychological, number, that's, been tested three, times at least three. Times previously. We're. Likely to see a little retracement. Now we've seen the retracement already, so now what we're looking for is that second.
Test, And that rejection, that, hold, of this level so. What we're going to do is we're going to watch