A Forex interview with a multi-millionaire and my mentor

Today, we are very fortunate to have my trading mentor and personal friend in the building. 

His name is Igor Marinkovic. 

You might have seen him present with me at a Forex seminar, at a South African Gala dinner or elsewhere. 

Well, Igor has been a mentor to not only me but also to hundreds and thousands of readers on his website. 

And so, without wasting any more time, let's get straight into today's Forex trading interview with my personal mentor and friend.

So Igor, what first got you into trading?

I started trading at the end of 2002. The main reason that I got into trading was because one of my colleague’s was trading at the time.

We worked in open offices and I overheard him talking to his broker.

Before that, I came from an ex-communist country. I didn’t have a clue what trading or investing was.

One day I went to his office to ask him a couple of questions.

I then went out to buy a book to start reading up on it.

And little by little, I gathered knowledge about trading.

I started trading warrants on the JSE, then I moved to trading ALSI futures (All Share Top 40 Index) and at a later stage to Forex.

What's the most important rule you've ever come across that's helped you succeed in Forex?

The most important rule, or rules, are all about risk management.
 
When you start trading the most important thing is to risk as little of your money as possible in any of your trades.

I would say less than 1% if most books teach you to risk no more than 2%. The less you risk the more chances you will have to survive long enough to learn how to make money trading.

Trading is not about becoming rich quickly.

If you think that way, then you can see it as a blow your account quick scheme.

If you plan to trade for the next 30-40 years then the first 3 or 4 years are not important at all.
 
Unfortunately there are so many sharks out there ready to take your money as they preach about risking 20-30% on each trade.

It is easy for beginners to become their prey.

To put it shortly:

“Your main job is to protect your capital.”

Out of all the financial instruments, why do you choose Forex?

I don’t know, it is just one step in my trading life.

One morning I woke up and I didn’t like trading the ALSI any more, after trading it for 13 years.

And as Steve Jobs said: “I have looked in the mirror every morning and asked myself: "If today were the last day of my life, would I want to do what I am about to do today?" And whenever the answer has been "No" for too many days in a row, I know I need to change something.”

To be honest I thought changing from the ALSI to Forex would be much easier. I have to say, it took a good 1 to 2 years to find my feet in the Forex markets. And I haven’t turned back.

What is TradingWisdoms.com exactly and what will people get out of going to the website?

I really believe that the holy grail in trading is not in a chart or an indicator. And it is not solely in the trading psychology side.

The truth, the holy-grail lies somewhere in the middle. For years I was collecting trading wisdoms from books, blogs, tweets and writing them down. One morning I asked myself, why don’t I share all those wisdoms with other traders? That is how TradingWisdoms.com was born.

Anyone can browse over 800 trading wisdoms and find something that will make sense to them at the time.

Not every TradingWisdom will suit every trader or investor. But you’ll certainly click with the ones that are the most relevant to you.

This is a free website that I find as my small contribution to trading and the investing community.

Thank you Igor for your time and for your personal trading wisdom, I’m sure our 130,300 subscribers will all learn at least one or two things about trading. 

I bet you didn’t know this

Igor is a quiet man. And when he opens his mouth, you’ll just hear wisdom and experience which will have an effect on your trading and life in one way or another.

Well, I just wanted to conclude today with something you probably don’t know.

Igor is proudly one of our experts on the InvestorsClub.co.za.

You can ask him any question you like and he’ll be happy to answer any of your questions.

If you have a question for Igor now or would like to give thanks to his small service he has to offer, click here.

Always remember, “Wisdom yields Wealth” Timon Rossolimos

Click here to join TradingWisdoms.com

The biggest trading scam of the century

One of my ongoing quests in life, is to find the scams that are losing traders and investors all their money.

At least once a week, I Google this exact phrase.

“How to get rich quick with trading?"

You'll be surprised at the number of unregistered companies and individuals there are, trying to swindle people's hard earned money.

But the scam I want to talk to you about today is the BIGGEST trading scam I've ever come across.

Unregistered Binary Options

I’m going to expect a couple of brokers to call me up after you read this saying. Timon, you can't write things like this when Binary Options makes up part of our business model.

First of all, I'm not here to make friends. Second, I have my opinion based on experience.

So sure, some brokers may offer legitimate and safe(ish) ways to trade Binary Options and I'm not gunning them down.

I’m warning you about the unregistered Binary Options companies with their sleazy sales pitches that offer a 100% win/rate system.

Stay far away from them as possible...

Why?

Before we go into the reasons why, let me first tell you what the heck a Binary Option is.

I want you to think of the term 'binary digit'.

A binary digit contains two numbers, 1 and 0.

Think of 1 as on and 0 as off.

With trading Binary Options, it's very similar.

1' you win everything and make a 100% return on your trade. And '0', you lose everything you put into that trade.

Easy right? Same principle applies. And this makes sense why people get sucked into trading these ghastly instruments. Because their greed factor kicks in where they feel they can WIN all their money.

But when you have been trading for the last couple of weeks, months and years, you'll find that losing trades are inevitable in any unpredictable market.

So going back to what Binary Options are. A binary option is a kind of option where you put down money to make a fixed return if the option expires 'in the money' or lose ALL your money if the option expires 'out the money'.

But here is the crux of why I believe Binary Option trading is the biggest scam of the century.

Here are my three reasons why I think Binary Option trading is one big scam

Reason #1: False advertising and marketing can lead you to blowing your entire account

Do you know why you feel the need to trade Binary Options?

It's because the advertising companies have been pumping their promotions and adverts on the "false dreams" binary options can 'bring' you.

They promise you how you can buy any car with a Binary Options strategy with a 100% win/rate.

And you never have to work a day in your life because you can invest with Binary options starting from 0 to a million.

Watch me debunk the above in two sentences.

With any investment or trading opportunity, it TAKES money to MAKE money. So you can't start off with nothing and end up with a car. And second, no market has any predictive qualities as we can only base our trading decisions on the past and therefore there is no strategy that can offer a 100% win/rate!

So please do the research first, read up on these instruments and don't let the marketing overwhelm you and bring up your expectations from level 1 to a million.

If it was that easy, you know what would happen.

Reason #2: Many Binary Options companies are unregistered

As I mentioned before, I am not trying to attack any well established and credible broker who offers Binary Options.

I'm only talking about Binary Options companies that are unregistered. Being unregistered means, they can do what they want. They can market the proclaimed 100% win/rate strategy and can very easily give you their banking details where you can deposit money.

But do you know what they'll do with your money?

I'm not sure. I don't know what their favourite restaurants and holiday destinations are.

Ye, they can pretty much do as they please with your hard earned money.

Make sure you find FSB approved companies that are regulated service providers. Also make sure they have a strong track record, before you even think about investing with a broker who offers Binary Options.

Reason #3: You can lose 100% of what you put in at a time

The majority of the novice and unregulated Binary Options brokers, don't offer stop losses and expiry times while you're in your Binary Options trade.

So, the fact that you can risk 100% of the money you put in, is a big risk to your portfolio.

I have a strategy where I don't risk more than 2% of my portfolio. And of the amount I put in, I never look to risk more than 30 to 50% of my initial margin.

(Feel free to skip the maths if you've got the point)

Let's say I have a portfolio value of R100,000.

I don't want to risk more than 2% of my portfolio (R2,000).

And let's say the margin (initial deposit) to put into my trade is R4,000. This means if my trade hits the stop loss, I'll lose 50% of what I put in (R2,000).

I wouldn’t want to risk the full R4,000 with Binary Options, as it will blow my account after a few losing trades.

And that’s why I don’t trade them. And with the unregistered Binary Options brokers, you can clearly see why it’s probably the biggest trading scam of the century.

How the late Muhammad Ali can help with your trading success!

We have lost yet another legend.

Not only was Muhammad Ali a former Olympic gold medallist and first fighter to win the world heavyweight title three times, he was also an inspiring, controversial and outspoken figure for life and for racial pride. 

Sure, sometimes he did sound a bit overconfident and cocky. But that's what made him the success he was. 

One of my hobbies in life is to follow these rare champions and successful entrepreneurs. And as soon as I hear or read a powerful quote, I can't help but write it down and relate it to my own trading. 

Here are four powerful quotes by the champion himself to help you with your trading career.

Quote #1: “He who is not courageous enough to take risks will accomplish nothing in life”

Whether it’s trading or investing, you have to take a risk to grow your portfolio.

After all, you’re basing your “bet” decision on whether the market will rise or fall.

The trick is to find a trading strategy which is proven over time. A trading strategy with at least a 55% to 60% average win rate, means you’ll win 6 trades out of 10.

And the risk doesn’t end there.  

You might choose a strategy where your winners are smaller than your losers.

Even with a 60% win rate, your losers will blow your portfolio because of the big losers you take compared to your winners.

You need to be courageous enough to place your take profit levels at least two times higher than what you’re willing to risk.

Only this way you’ll accomplish building your portfolio more consistently.

Quote #2: “Float like a butterfly sting like a bee”

There are only three directions the market moves.

Up, down or sideways.

And when the market moves sideways, and you’re a trend trader, this is where you can take the most losers.

This is where the stock or currency bounces up and down in a range which can cause you to take consecutive losses.

So with the quote. ‘float like a butterfly…’, I refer to your patience levels.

If your trading strategy incorporates buying in a market that is rising with a trend. You need to be able to wait patiently for the market to establish a strong uptrend, and not trade during the sideways range and vice versa.

Be patient and wait for your winning trading system to line up.

And with the ‘sting like a bee…’ I’m talking about actioning the trade.

When your strategy eventually lines up a high probability trade, take the trade without thinking twice.

Quote #3: “Silence is golden when you can’t think of a good answer”

Sometimes, you’ll find yourself looking hard for a trade while the market is going sideways.

If you tend to take more than two minutes to find a trade in the market, stop!

When you have a trading strategy, a trade line-up should stick out like a sore thumb. So rather, acknowledge that there aren’t any trades lining up and just move on to the next stock.

Sometimes the best answer, is to do nothing at all. This will save you from taking low probability trades, which can hurt your trading portfolio.

Quote #4: “Even the greatest was once a beginner”

There are no lucky breaks with trading.

Every successful trader and investor started off like any normal kid starts school.

They began with education (learning the markets), making mistakes (losing money over and over) and finally, making money through hard experience.

The markets dynamics, in terms of demand and supply, have not changed since the Tulip craze of the 1600’s. So don’t be discouraged to start trading.

Take your time and learn the methods. Whether it’s through reading financial books, technical analysis books, YouTube videos, attending seminars and so on…

I want you to remember something when it comes to trading.

You can only get better through learning and trying, as long as you make sure your school fees aren’t that high.

Don’t be discouraged by traders who are making their millions and driving fast cars. Every trader started at the beginning. The trick is to start now and succeed later.

Are you feeling empowered?

I’m sure by now, you’re feeling adrenaline rush through your veins and empowered to start trading. Trading psychology is the biggest mover you can use to feel inspired in the markets.
Just like in any game, sport, business or venture.

So, I encourage you to read Trading Tips, learn to trade the markets, join Trading Facebook Groups, watch a few YouTubes and don’t stop trying new things.

I promise you if you train your brain, practise and trade, YOU WILL find the trading master within yourself.

Always remember,

“Wisdom yields Wealth”

Timon Rossolimos 

The Brexit ahead, MTN, Bidvest and the JSE market in general! - 23 June 2016

This one hidden cost can destroy you as a trader!

Two weeks ago, I attended a business conference at Château de Courtomer in France.

From 8:00 am until 4:30, I attended meeting after meeting in different rooms in the castle.

It was productive for business and it was a wonderful opportunity for Trading Tips as I now have new and exciting ventures I'll be working on for you.

Unfortunately, during this trip. I was hit by the biggest hidden cost every professional trader dreads..

If I hadn't made this mistake - I could've paid my trip to France and then some.

Today, I'm going to tell you about this hidden cost and share the mistakes I made.
Let me explain.

Plan your trades ahead before you travel

The cost that I’m talking about is your“Opportunity Cost”.

An opportunity cost is the loss of other alternatives when one alternative is chosen.

If I hadn’t chosen to travel to the conference, I would’ve taken three trades which would’ve banked me the amount that could have paid for my entire trip to France and the United Kingdom.

But instead, I decided to put trading on hold for that time.

Lesson learnt. So here’s what I want you to do.

Go to your trading platform and see if any trades are lining up for the near future, before you travel.

Write down all of the potential trades that are lining up, and schedule them the day before.

By schedule I mean, put in your trading levels for getting in your trade. And put in your stop loss and take profit level for getting you out automatically.

If your trade has not set up the night before, make sure you find a place with Wi-fi where you can look for trade setups later on. Or do yourself a favour and buy a Wi-fi dongle. This way you’ll have internet wherever you go.

First thing in the morning before you attend your conference or meeting, logon to your trading platform and search for any high probability trades which you can set up for the day.

If you do this, then there’ll be no opportunity cost you’ll take, while you travel.

You’ll be away for the rest of the day, so unfortunately you won’t have time to check on your trades. This means you need to set proper money management conditions.

Lower the risk in case something goes awry in your trade while you’re away 

It can be daunting leaving your trades alone in the market while you’re away from your charting platform…

I have two solutions for this concern.

First, lower your usual position risk that you have per trade. So if you risk 2% on a trade in general, lower it to 1.5% of your portfolio instead.

This way you’ll feel peace of mind knowing, you don’t have much to lose in case the trade goes against you.

And second, there is always a possibility of the market jumping your levels past your stop loss.

This means, you can lose more money than what you anticipated.

In this case, put in a Guaranteed Stop Loss, where you can’t lose more than what you plan to lose if the trade hits your stop loss. GT247.com is a well known Forex broker that has the Guaranteed Stop Loss option.

If you’re a regular traveler, you’ll need to consider these options to make your trading more easier to handle.

And if you miss a trade or two along the way, remember this.

It’s not the end of the trading world

Sure your results might be skewed according to what your portfolio looks like and what it should look like, due to missed trades.

But remember, the market isn’t a short term venture.

It’s a forever income generator that will make up for any missed trades you didn’t take.

I might be kicking myself now, but I know I’ll make up for the lost trades in the next month, quarter, year and so on.

Here’s a summary for your trading while you’re away Tip #1: Plan ahead before you go somewhere Tip #2: Find a place that has Wi-fi or make sure you buy a wi-fi dongle to use to set up your trades first thing in the morning. Tip #3: Lower your risk per trade, to help you feel at easy being in the market while away Tip #4: Place a Guaranteed Stop Loss, if you’re afraid the market will jump your stop loss Tip #5: It’s not the end of the world with your trading, you’ll catch up in the medium term again.

I want you to just print out the five tips, in case you travel and need a plan to trade while you’re away.

You won’t regret it!

Always remember,

“Wisdom yields Wealth”

Timon Rossolimos