Your desk containing every tool a trader could want and an army of anonymous internet weirdo’s to worship your every decision, paying tens of thousands of dollars a month to ride your coat tails.
TIPS – TRADE LIKE FX VIPER That’s what happened to Jeff, the trader behind FX Viper and the subject of my two documentaries on the life of a professional forex trader. It was well shot (if I do say so myself) and portrayed an exciting life of trading and money.
Well… I’m here to burst your bubble.
The reality of being a professional trader is quite different. As much as 30x during a 45min meal.
After spending so many years watching his trading, I figure it’d be valuable to share some of the ingredients that make up Jeff and his FX Viper strategy.
How does his trading strategy work?
This is important because it will enable you to withstand huge moves against the position and eventually the market should move into profit.
Sounds a bit too easy right?
It’s the kinda thing that sounds easy in theory, however in practice, it becomes incredibly difficult to manage the swings. Could you hold 20 trades for 6 months that were 500 pips out of the money and maintain your cool?
However, maintaining your cool is only one ingredient in an FX Viper sandwich. How will you manage your finances if you’re trading for 6 months without making any income? Now… I admit this is contrary to the status quo of trading/investing, “be willing to admit when you’re wrong”, but that just doesn’t fly if you’re going to trade like FX Viper. If your account is big enough and your trade sizes are small enough, then you’ll be able to withstand almost anything.
It’s not my cup of tea because the risk and stress aren’t worth the gains.
My tips to help you trade like FX Viper:
If the market moves against you, start trading smaller position sizes. When your trades move into profit, close them as soon as possible. Sorry… I know this isn’t what you want to hear, but if you’re going to hold trades for months in a negative position, you need to be able to pay the bills while you wait for the market to turn around.
Find a trading mentor/partner. Jeff spends most of his waking moments in contact with a mentor, a supposed former hedge fund guru that trades a near identical style of small, frequent profits and long term losing trades. If I lived that way I’d have been divorced seven times over… But it seems to work for them, so whatever floats your boat!
The one big takeaway from my years trading with Jeff is: To be successful, you do need to immerse yourself in the art of trading and current market drivers.
However, please also realise holding trades for a very long period, in the expectation that they will eventually move into profit is stressful, most of us aren’t wired to deal with it for long periods.