Nothing is so until we believe it to be. If you believe that you will never be able to do something then you have set your fate. On the contrary you’ll notice that those with incredible results always believed they could achieve them. Mindset is everything and the best part is that we can change it in a split second. Just like a muscle your mind requires constant conditioning. What are you doing to make it your most valuable asset today?
Knowing when NOT to trade is just as important (if not more) as knowing when to trade.
Here’s a run-down of 3 trade entries and 5 NO TRADES as determined by advanced entry filtration using a combination of MACD, Price Action, Phase Lines and the 50EMA.
The highest probability entries are shown by the red short entry arrows. The NO TRADES are numbered 1-5 and explained below:
1. Bullish MACD divergence formed on the most recent swing low + the market is still quite some distance from the 50ema. The highest probability movements in FX accelerate away from the 50ema during the Power Move session (London Morning). No trade.
2. We’ve broken well above the 50ema. No short trade.
3. We’ve now formed a flag pattern to the upside, creating higher highs and higher lows within the pullback of a longer term downtrend. Trading well above 50ema. No short trade.
4. During the latest swing low, the market failed to create a lower low. It found strong support with bullish MACD divergence. Powerful break above the 50ema. Short trades suspended until support line is broken (preferably a retest to go short).
5. Neutral MACD lows, lower price lows. Stage 1 Bullish Divergence. Momentum is visibly slowing to the downside. It’s time to wait for a 4H or D pullback before continuing with short entries.
8 Potential trades, 3 highest probability trades taken, 5 avoided.
The elephant in the room:
ALL 8 were profitable. Did we leave money on the table? YES! In trading, we ALWAYS leave money on the table. It’s impossible to catch every single move from the lowest point to the highest point. Striving for perfection is futile. The edge we trade is slight. You can make breathtaking profits in trading EVEN WHILE you leave money on the table, get it wrong, lose from time to time and miss out on runs all together. We trade probability, not perfection.
Take a look at the GBPJPY today.
We’re seeing a low test candle with a non-symmetrical double bottom which caused bullish MACD divergence.
This is by no means an automatic trade entry, just a couple layers of bullish technical confluence.
This technical confluence is widened by the fact that EVERY GBP pair is showing a similar pattern. Take a look at all the GBP pairs today… Some pairs have already broken the 50ema on the 1H chart.
Pull back and retest for the Power Move come London Open? Perhaps. We’ll have our eye on them!
What are you looking at today?
In my work with Infinite Prosperity, I speak with 40-50 people a day who are at the start of their personal financial journey.
Many of them are constantly bombarded by marketing in the industry.
- “Secure Your Financial Freedom Today”
- “Become Financially Independent!”
- “Financial Security is KEY”
You’ve seen all the ads.
After delving into the core values of my prospective clients, I’ve discovered something shocking!
Hardly anyone knows the difference between Financial Security, Independence, Freedom, and Abundance.
This short blog post will provide the answers once and for all, including my opinions on where to start and in which order to proceed.
1. Financial Security [Frame of Mind]
Financial Security is the peace of mind you feel when you own the ability to generate a level of income that covers your living expenses.
Financial Security could come in the form of being young, energetic and employable… it may, therefore, diminish in older age, if employability governs your income.
Financial Security could also come in the form of owning the ability to generate income via a particular skill such as investing, trading or selling.
Despite the form in which it shows up, Financial Security is always a frame of mind. I’ve known equity millionaires who don’t feel financially secure. Why? Because their wealth is illiquid. They can’t freely access it to cover living expenses.
2. Financial Independence [Passive & Semi-Passive Income]
Financial Independence (AKA Financial Freedom) is the state of having enough passive income to cover living expenses without having to work actively for it.
Financial Independence comes in two stages: Transient and Eternal. In the Infinite Prosperity course, we refer to them as Stage 1 and Stage 2 financial independence.
Stage 1 Financial Independence can arise from creating an income stream that requires little to no work on your behalf. Examples include starting or investing in a business that runs without you. Forex trading, stock trading, writing a song or a book (royalty income), etc.
While these forms of passive/semi-passive income can last forever, we must be realistic in realizing that some won’t. This is why we encourage Infinite Prosperity students to aim ultimately for Stage 2 Financial Independence.
Stage 2 Financial Independence is the ability to maintain Stage 1 Financial Independence regardless of Market, Mind, Motor-Skills or Mortality. If the market moves in any direction, your income stays put. If you lose your mind, your income stays put. If you lose motor skills, your income stays put… and even if you lose your life, your income stays put.
We create Stage 2 Financial Independence by generating enough liquid assets to return our desired annual income based on elementary-grade low-risk interest-bearing cash accounts.
The figure I use is 5% p.a – No matter what happens, I’ll always be able to generate a 5% return.
The formula for Stage 2 Financial Independence becomes:
Expenses (Desired lifestyle cost per year) / 0.05 = Financial Income Figure (FIF)
E / 0.05 = FIF
Eg. If you require $100,000 per year to live your ideal lifestyle, then your Stage 2 Financial Independence figure is $2,000,000. If you can generate $2M in liquid assets, you can invest at 5% and never work again.
3. Financial Abundance [Quantity of Equity & Income]
In layman’s terms, someone who is Financially Abundant is “rich”.
Financial Abundance refers to the state of having more equity and income then you could reasonably spend.
Abundance, wealth, riches is what most people are aiming for. Many people think “getting rich” will make the biggest impact on their lives.
I have a slightly alternative view on the matter…
The horse before the cart
I’ve seen it all over the last 15 years. I’ve seen guys with plenty of Financial Security, but no freedom and no abundance. I’ve seen guys who are Financially Abundant, yet fearful and insecure. I know millionaires who have all their wealth tied up in equity, while their incomes are exhausted by negative gearing.
Every possible combination, I’ve seen it.
And through witnessing this, I have chosen a very specific financial route that I both practice and preach in the Infinite Prosperity community.
This is it…
This is the order of operations that I encourage my students to adopt.
1. Chase the knowledge first. You can read your way to Financial Security. You can learn real income generation strategies that you can begin implementing within the week. Knowing they exist, and knowing you can make them work for you is the first step in Financial Security. Remember, Financial Security is a frame of mind brought about by knowledge.
2. Chase income second. Specifically, Chase high-quality income that is scalable and outsourceable. High quality, scalable income is what moves you toward Stage 1 Financial Independence. I’ve seen Stage 1 Financial Independence happen in 159 days. Yes, this is an extreme case. But it can happen fast! At the time of this writing, 93 of our Infinite Prosperity students have already hit Stage 1 Financial Independence.
Stage 2 Financial Independence takes longer. I’ve seen it happen in 5 years, but account for 10-15 at least, to keep your expectations in check.
3. Chase equity third. By siphoning off an ever increasing portion of your growing income, you begin accumulating equity. This is where your net worth grows into the many millions over many years. This represents your Financial Abundance.
Pursuing your financial journey in this exact order is what I believe to be the most effective approach to personal finance on earth.
Knowledge (Security), Income (Independence/Freedom), Equity (Abundance).
- Being “rich” through equity wealth with no security nor passive income is not something to aim for.
- A false sense of security through low quality single-income streams is not something to aim for.
- The wisest financial plan is to become secure, reach independence and grow your wealth over time.
- The wisest financial leaders have all three.
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To your prosperity,
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I am frequently asked for advice on taking on investor capital so I wanted to share my experience with you all.
Although I was fortunate to be able to fund my own live account initially with funds I had from a previous eBay business, I did make the decision early in my trading career to take on investor capital. I learnt some key things during this time that I wanted to discuss with those considering making the same decision.
1. The details of the agreement.
The number one thing people ask me is the details of the agreement. This is something to be discussed and agreed upon by the parties concerned, however I personally did not promise a fixed amount. I agreed to split the profits (or losses) proportional to the invested amount as this was something I believed to be fair for both parties. Although this was between myself and someone I was very close to, we put everything in writing and made it a legal agreement.
2. Attracting investors.
I never sought out investors and it was not something I was actively interested in at all. People in my circle saw my results and they approached me. Actions speak louder than words and I would be very careful if anyone on their own journey is actively seeking investors. Convincing someone to invest in you is hugely different than dealing with someone who has already set aside money to invest in some manner.
3. Tax and legalities
If this is something you’re considering doing make sure you seek the advice of an attorney and an accountant who is well versed on the relevant laws in your country. Although it may seem like a simple agreement between friends in some circumstances- don’t be naive. Always make sure everything you’re doing is above board, that all parties are legally protected and that you’re setting up this account in the most tax efficient way. The last thing you want is to be taxed on someone else earnings. Some countries also require licensing to be able to do this so please ensure you’re compliant with all applicable rules.
4. Lastly and most importantly- the emotional consequences.
Remember that trading is about the ability to control you emotions, stick to your strategy and operate solely on the information that presents itself at the time… not a skewed perception of it. This is a challenge in itself when managing your own money and takes time to become comfortable with, but adding the responsibility of managing others money certainly makes your job much tougher. It is something I became comfortable with over time just like we do when managing our own money, but it’s not for the faint hearted. Regardless of how solid your own trading mindset is, when you manage others money you bring their mindset into play as they can question you or add pressure at any moment.
For me personally, this was not a feeling I was comfortable with in the long term as I quit my job to ultimately be completely in control of my own life, time and decisions. Although my investors never did anything to add any pressure whatsoever, the fact is that you have someone to answer to when you put yourself in that situation.
Trading investor capital can be an amazing opportunity in the right circumstances, with the right mindset and the correct legal set up however I wanted to share my personal thoughts to highlight the potential negatives also. All went very well, I was involved with great people and ultimately we were profitable..but emotionally it isn’t something I would recommend if you’re extremely independent like myself. As with anything, do your due diligence and make decisions in accordance with your own values and circumstances as this is simply an account of my experience filtered through my own perception.
My advice: instead of putting effort into attracting investors, use your time to monetise an interest or skill of your own by providing value to others and use that capital to invest.
In saying that I do speak with many of our students who are doing tremendously trading investor capital – hats off to you all! Remember- there is no right or wrong way…we all have different trading styles, comfort levels and values.
Hope this provides some insight for you all. Happy trading!
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Absolutely everything happens for a reason. Learning to see the lesson and blessing in every situation is essential to not only your success but your happiness. Once you can find the blessing you can move towards a state of gratitude and neutralise any disempowering emotions that could have surfaced as an outcome.