Entires and Exits in frorex

Well, I just returned from some well earned rest & relaxation! It is always a good time to escape the heat of the desert during the summer months. One of the things I like to do during my down time is to catch up on my reading. One of the key points on the Roadmap to Forex Success is continuous education and one of my favorite ways is to read.

I just finished "Entries & Exits: Visits to Sixteen Trading Rooms" by Dr. Alexander Elder. I have added this book to the "must read" category for anyone who trades. It really does not matter what instrument you trade, this is a gotta have to any success library!

The long and short of it is the Dr. Elder visit 16 traders that he has met and mentored throughout his career. The traders explain, in short story format, how and why they trade the way they do. This is followed my Dr. Elder's commentary on their trades. The "gem" of this book is to follow the commentary of each trader. In theirs words you will gain great insight and knowledge and determine they are no different than us, so similar and so unique. These trader have cracked the code and the nuggets provided will help you do the same. It is a very easy read, a kin to 16 short stories. I encourage you to read each story and reflect on what lessons you can bring into your own trading room.
I don't care if you get this book from me (http://www.squidoo.com/forexjourney), your local library or borrow from a friend ... just get and read this book! It is worth the 10 pips price of admission!!

If you have not noticed my posts have been a little less frequent over the past several weeks. I take time in the summer to vacation and renew. I also enjoy going to trainings and seminars. Not all of these events tie directly back into trading currencies, but then again I also have other interest and passions.

I was at one such seminar last week in Los Angeles. I was networking after the event with a bunch of other entrepreneurs. We spoke about all kinds of topics (I was the only trader in the group … surrounded by mostly real estate investors!), but the topic that seemed dominate is the on around making the jump from W4 employee to being out on your own.

I know there are Forex traders out there that enjoy trading, but have never considered taking the leap to trading fulltime. But, if you are one of those that want to trade fulltime then I have some tips for you that would make that transition easier and they do not involve trading!
Be in Control

It goes without saying that you must have supreme confidence in your trading acumen to cross over. Always have a check and balance in place, because there is a fine line between supreme confidence and arrogance. The latter will end your stint faster that a bucket of ice on my hot summer patio in Phoenix. Recognize that you still have one last unexplored psychological hurdle to cross. You won’t have that paycheck to fall back on anymore! This brings another level of pressure that did not exist before.
Build a Business Plan

Like any other professional venue you will have to trade as a business. You should structure you trading within a legal business entity and develop a business plan which will guide your approach to trading.

Understand Wealth Building Principals

Before making the leap you should have the wealth building principals done pat! They are:

Make a constant investment to your account and watch it grow. I have written previously that you should have a separate Forex compounding account where you deploy conservative strategies and just let it grow! You can only withdraw funds from this account to feed other wealth builsing entities such as real estate or business investment. This account will be your golden goose!

Give your investments time for growth. Getting rich slow in some of your accounts is quite OK!

Know your yield. Your financial education will determine your yield. Remember an investment in you will always offer the greatest return. Become a life long student!

Follow these principals will lead to tremendous wealth!

Network!!

Build a network of entrepreneurs and traders. Seek out their knowledge and expertise on items such as health insurance. Take every advantage your corporation will allow.

One final point to consider, think about developing another source of revenue outside of your trading account. At this stage you have developed an expertise that people are willing to pay to access. Finding a way to leverage this could provide an additional stream of income, adding financial flexibility.

These are a few points to consider. It is way more than just pure trading, but necessary steps to ensure your success!