Alexander's 101+ Guide to becoming a R.I.C.H. Trader

I have 20 years of trading experience and a few years of market knowledge before this. I decided to start this thread to share some knowledge.

My Trading Background

I started trading independently full time in January 2006 with the Forex markets. I lived in Las Vegas, Nevada (yes, there is another Las Vegas in New Mexico, but not the same) when I started. Heck Vegas has changed considerably since then, most of it NOT for the better. But I digress.

As far as market knowledge I started studying markets in the late 80’s in High School. I even had a formal mentor for a while. After I realized that there was no way I was going to be a Veterinarian because of financial reasons (I was in this odd pocket for a few years to where we could NOT get student loans on our own. My stepfather, we’ll just say, wasn’t looking out for my best interests and made it clear that I could F* off and make my own way.

Anyway, I looked at all kinds of things within a few months and thought I’d become a stock broker. I could have received a degree in a local community college and take it from there. I actually had a different mentor (I was taking a lot of business classes along with finance) who got me into the corporate world and I ended up getting into management and worked my way up quite quickly to upper management. I was a natural leader and I have an IQ of 169 so it ended up being a good fit.

I did love it, BUT I also loved the markets and the corporate life has its issues. So I started studying big time in my off time and I also started saving. Colleagues couldn’t figure out why I was living where I was living. Nothing wrong with it, but it wasn’t the type of area I was living and they were living. The money I saved was very decent. Honestly I could have put a big deposit down on a house.

I was still saving and someone caught wind of my trading and investing studying. I was given a pink slip for bogus reasons (corporate life can be petty at times) so I went into car sales for a little while and saved up more money until it was time for me to branch out on my own and become a full time currency trader.

I did quite well for a little of two years. Then the proverbial turd hit the fan because of the Great Recession. Man, my backside was handed to me, not on a silver platter mind you, heck no, it was on a cheap paper plate. LOL.

I lost a ton. Then I self sabotaged. I have a history of this because of surviving prolonged and violent child abuse. My real father was a full patch member of an outlaw biker gang and we lived in San Bernardino, California for a couple of years during the biker wars in the mid to late '70s. He was violent with us also. I saw a ton of domestic violence and of course was caught in the mix.

Some things happened and we moved to my mother’s parents (obviously my grandparents) in another State. That’s when my Mom was able to divorce my father. But, her next choice wasn’t too much better. He wasn’t that physically violent but he was very mentally abusive.

So when things go downhill in my life, I self-sabotage big time. It’s happened a couple of times.

Why Am I using RICH Trader?

It’s been more than a couple of years now, but I was living a wonderful life. Things were good. I was with the love of my life and it was some of the happiest days of my life. My partner and I hugged goodbye like we pretty much always did and left for work, and I went to bed.

I trade during the European session which is graveyard where I live. I woke up to knocking on the door. It was the police to inform me that my partner was instantly killed in a DUI crash (the other driver) while heading to work. That’s not the way to be woken up.

My entire world collapsed. Those became some of the darkest times of my life and I self-sabotaged. I ended up losing quite a bit in the markets and it compounded. It caused a ton of damage. None of it helped with my self-sabotaging. That’s for sure.

So bottom line, I’ve been working RICH Trader for a little bit now. I also worked a couple of rounds with EOG. But I started off calming my nervous system (I have PTSD from the child abuse) first.

I also forgot to mention, I went through a couple of years of therapy. Two and a half years twice a week . One day was group therapy (I was in DBT therapy) and one day was individual therapy. Virtually every week with a couple of minor breaks due to Holidays (Christmas, etc), vacations (most other Countries refer to these as “Holidays”), etc.

So I’m going to dump RICH Trader soon because I’m going to make two custom subs. One is a healing sub which I’ll run solo for a round. Then I’ll add my trading sub which will have Essence: The Inner Edge which is strictly the personal psychology and the discipline/composure parts of RICH trader minus all the other stuff, most of which I don’t need.

I also will have various modules on worth, inherited wealth stories, etc.

So there’s my basic, but detailed background, including my basic life background.

The point of this thread it to share some of my “basic” knowledge (which is quite advanced to others, but is trading/investing 101 to me) and advice, including what NOT to waste your time on which includes Trend Lines. What? I’ll let you know why.

I’ll start with my mindset about the markets and a couple of philosophies.

  1. The markets are Not random. You’ll even see gurus that say this. BS. Do you think people consistently make money by being “lucky”? Please.

  2. Therefore the markets move for a reason(s). Your job as a trader/investor is to figure out why. Seriously, that is your ONLY job.

  3. CNBC is a joke! And Jim Kramer is an f*n clown who won’t teach you much. I might ruffle some feathers, but let’s just say I’m not a fan of either.

  4. Stock brokers are sales people. Which goes back to #3 and why I can’t stand the bunch. I’m not making this up, that’s all stock brokers are. Same thing with many financial planners. The Department of Labor vacated the Fiduciary Rule in 2018. That’s not to say financial planners have free reign to work you over, but it relaxes the standards considerably. They might be into green energy and trade their interests and beliefs, and could lose a ton of money and you’ll have a difficult time in court getting your money back.

  5. The markets movers (aka the “smart money” the “Big Kaunas”, etc) ALWAYS leave clues. Learn to see them.

[The end]

One sentence to wrap up my mindset with the markets is “Don’t follow the herd, follow the shepherd.”

What the heck does that mean? It sums all 5 of those up in one short sentence. There is ALWAYS a reason why the markets move and there is a reason why markets stall or reverse at particular levels. ALWAYS and without exception. It’s your job as a trader/investor to find out why.

I will say this, if you struggle (other than the personal psychology aspect) with trading you need to focus on one thing first: Learn “balance areas” inside and out. Become an expert out how to identify them and to become consistent on how to figure out what the markets are likely to do in those scenarios.

If you don’t have this down pat you are wasting your time and money. I genuinely can look at a chart (depends on whether enough time span is shown) and I can give you a complete breakdown of price and movement in just a few seconds. You can actually have very decent and consistent profits with this knowledge alone.

But that’s not to say I trade naked charts. I don’t. I use a few very specific Moving Averages. But I use MA’s very differently than most people. I use mostly EMA’s with only one SMA. The one SMA is the 50 because that is an industry standard that is very consistent.

How do I use MA’s differently? I use very specific ones as dynamic support and resistance. I also use weekly and monthly pivot points (they were specifically invented for commodities and yes, currency is THE core commodity. The Elemental Commodity.

I also have a major advice to save you a lot of grief, time and even money. DON’T USE TRENDLINES! THEY ARE WORTHLESS What? Why?

I’ll tell you in my next post. This one is already long, especially if you’ve read all the background.

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Pt 2.

I have a running joke about trendlines. I always say you can put 50 trendline experts in a room and at the the end of the day they will come up with 69 ways to draw trendlines and it doesn’t matter because they will all f*k you repeatedly to infinity and beyond! :wink:

Trendlines are incredibly subjective and genuinely you can put a single chart down and even an expert will draw them differently than they did the day before, or the chart before. Then when you question them they act like you don’t understand the "basics of drawing trendlines.

But they look so good right? ANYONE can take a chart of a market that’s already happened and draw the most convincing trendlines you will ever see, BUT THEY NEVER WORK IN REAL TIME! I mean that. They are incredibly subjective and inconsistent.

I promise you. Dump trendlines. You are wasting your time if you use them or learning them, and I will bet, if you rely on them you are NOT making money consistently and NEVER will. They don’t work.

Also, don’t rely on one indicator or trading method. Even though I use what I use, there is a reason why I have a few moving averages in my system. They tell me what the market is doing. BTW, I use the same exact MA’s on all the timeframes I actually use.

My charts. First off I’m an intraday trader, which means I start my trading session with a clean slate and I close out all trades at the end of my trading day. So my charts are specific to me and you need to experiment to find what works for you.

So I use two Daily charts. One only has monthly pivot points on it and that’s it. That’s to keep the chart fairly clean. The other one has multiple moving averages. Those moving averages are the same exact ones on all the other time frames BTW. But sorry, I won’t give the specific ones.

I then use two 1 Hour chars. Identical to the the Daily. Then I use one 15 minute chart with all the moving averages. Then I have a 1 minute chart with all the moving averages. That is to fine tune entry and exits.

When I analyze my charts for the day, first off, most of it is done after I stop trading the day before. But I have to know what happened when I was away and create a running dialogue of what happend, then I plan out areas I’m looking for, what needs to happen there and how I will react.

I also … I can tell I will need multiple posts. LOL.

Honestly, I can put a free 101 course on here for you guys, but this would be 101+201+. Seriously most of the people that sell courses are selling BS that doesn’t work consistently. I wish I could tell you how to spot them, but it’s difficult to put into words. There is a ton of BS out there, especially on Youtube. It’s so bad that they create videos that make it look like they are trading live, but in fact they are using demo software. There have been a few caught doing it too. It’s incredibly funny.

I promise you, I’m not being a putz by holding my trading methods back. Look up Game theory and you’ll understand. If too many people are successful with the same methods than the markets change or it becomes unprofitable. The big players ALWAYS make money and it’s not always by manipulating the markets. Reality is, there is not such thing. They are manipulating YOU. They are pushing and pulling your fear, greed, etc. just like advertisers and drug dealers do. I’m being serious.

This is why there is so much garbage out there. There is a lot of stuff that USED to work, but no longer does because too many people started to use the methods. That’s why I won’t give my specific methods. Also, it’s better to teach a person to fish, so to speak. Hardly any “guru” will teach you how to learn because it puts them out of business. They need you to be reliant on them in order to make money. Gurus rarely make money trading, they usually earn their money TRAINING. There’s a big difference.

BTW, the inner psychology is also what will make or break you. I usually come back after major life events. This last one was on another level. I will come back, I just need some more healing.

Let me know if you’d like me to breakdown what it takes to get on the path to become a consistently profitable trader and I’ll put it here without giving you my proprietary trading methods.

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I’ll go ahead and start posting lessons here slowly. Don’t expect new ones everyday. Also I will not post any video lessons. I don’t have the time to do that right now.

I’ll be honest, I’m not even sure you guys will get 201 here, I think it’s more like 303+. LOL. I searched on Youtube and was shocked at how much is missing that I consider 101. Frankly you guys are in for a treat.

I will warn you. It will start a little slow. I will not start with how candles are formed, or how to read them. I won’t talk about line charts (I don’t actually use them) or other chart styles. This kind of basic stuff is a penny per ton and you can find out all this for free elsewhere.

If you are completely new start with babypips.com. It is focused on Forex and they now have a Crypto section, but honestly, it doesn’t matter what markets you’ll want to trade, the basic stuff is about chart reading, how candles are formed, etc. etc. Most of it applies to all markets.

But I will personally start with Market Facts. This builds a solid foundation about how markets and prices form, and frankly, when I looked for good videos to share from Youtube, again, I was actually quite shocked on how much is missing. No wonder why people struggle.

I’ll end this post now and the next one I’ll just start with Lesson 1: Key Market Facts

Lesson 1: Key Market Facts

Key Market Facts

  1. The markets are fractal in nature. Doesn’t matter what market(s) you trade. They will have identical price patterns in all time frames. If I showed you a price chart without the x and y axis you wouldn’t have a clue if it was a 1 minute chart or a monthly, or even yearly chart. They will look identical.

  2. No matter the time-frame, markets will either be trending or balancing. One of the two. Nothing else.

  3. Price moves in a series of thrusts and corrections. Prices will NEVER move straight up or down. It may seem like it, especially during news events or during a severe market correction. But reality is that price ALWAYS moves in thrusts and corrections. Corrections can be vertical or horizontal (balance areas). Balance areas are incredibly important for you to know and understand. You can build a profitable career just on that information, and I will share it with you.

  4. Price digests all information efficiently, but not perfectly. Any new information, especially scheduled news gets factored in by the major players often before you even hear the news. It is nearly impossible to take advantage of news as a retail trader. Trading news as a retail trader is a specialty and you are taking advantage that price doesn’t digest all the information perfectly, but you have to really know your stuff and have serious patience. If you can watch paint dry on a wall for an hour and a half and not fall asleep or pull out your phone than you MIGHT be able to trade news consistently.

  5. Trends will either start from balance areas or after major climaxes. More often than not a trend will start from a balance area. Trends starting from a climax are much rarer (about 10% of the time).

  6. Trends will end either in a balance area or a climax. This is similar to rule 5, just in reverse. The same basic percentages apply. So therefore learn all you can about balance areas. Balance areas will be our next lesson.

  7. Market behavior is heavily influence by previous market behavior. This is to say that markets tend to work in similar cyclical manners. Not exactly the same way, that would be too easy, but they act very similar.

[End of Market Facts]

The next lesson will be one of the most important things you can learn in trading … Balance Areas I plan to have a couple of lessons just on this alone. It is one of the most misunderstood areas in trading, and often overlooked.

I kid you not, learn this correctly and you can have a solid trading/investing career just on this alone.

But what about AI? What about it? AI will certainly change things but not everything will change in trading, and this will be one area that will not change.

Why? Humans! Humans are and will still be the ones ultimately holding the trades and investments. Think about it. Many retirement plans are reliant on the markets. Cities, States, Countries are reliant on bonds. Bonds are a market. Bonds fuel most every market out there but so does Forex. Everyone needs money.

We all know that our governments can’t seem to take enough of our money in taxes. So markets are all part of that. Stock markets and bonds help fuel businesses so they create jobs and all this creates more taxes.

Bonds are what I consider an Elemental Market. There are only a couple of “Elemental Markets”.

What are Elemental Markets? Think of the Elemental Chart. Everything is based on those elements. The markets are no different.

The king of all Elemental Markets is … FOREX! Currency markets, but Forex in particular. Also Bonds. And Gold. Some say OIL and this is true in our modern world.

Silver is a minor one and not one I really consider. Silver doesn’t really affect the other markets like Forex, Bonds and Gold do.

So our next lesson will be … Lesson 2: Balance Areas.

It will take a couple of days and I think I’m going to split it up, like I already mentioned.