03/07/2019 Swing Trader Society | Next Steps

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STS COURSE:
Lesson 1: Introduction
Lesson 2: Foreign Exchange Market

Lesson 3: Technical Analysis
Lesson 4: Fundamental Analysis
100 %
Lesson 5: Risk Management Complete!
Lesson 6: Psychology
Lesson 7: Journaling
Lesson 8: Goal Setting
Lesson 9: Strategies
Lesson 10: Next Steps
Self Education Library
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Next Steps
Preparation

Those of you have got this far and have taken your learning seriously to get this far I respect you. What a journey it has
been so far, but we're not done yet! This section is dedicated to your next steps, after you finish this course and go into
the big wide world of trading the FX market. I want you to be as best prepared as you can be and also to feel
comfortable with taking the leap into what might be slightly unfamiliar territory. Let's break down those final few barriers
and actually provide some scope to what it is that you need to do next!

Above: The Leap of Faith

Trading Demo

I feel one of the most advantageous things you can do for your own development for those of you who are new to this is
to first open a demo trading account before you risk a single penny of your own trading capital. Those of you who are
more experienced and may already be trading a live account then of course a demo account can be used to refine and
test new strategies, but I would imagine that you may not be too interested in this section so feel free to skip to the next
topic. However, those of you who are new should consider trading a demo account first. You ask well how long should I
trade a demo for? The answer is subjective and is based on how fast you understand the market and can show to
yourself some level of consistency that you would be comfortable with when your hard earned cash is sat on the table.
For me personally, I traded a demo account for 6 months before I entered into a live trading account. Some people may
feel comfortable to trade a live account after 3 months, others it may take 12 months, don't be dictated too by the
timescales that other people have met previously. 

This journey is all about you and nobody else. So do what makes you feel most comfortable and don't be pressured by
others around you to start making money instantly. You can set up a demo account with practically any broker and begin
to practise all the principles that you have learned during this course, such as the process of risk management,
understanding how to journal and critique your performance, understanding technical analysis and how to trade a
technical edge, how to identify fundamental analysis and the true drivers of the currency market, right down to the
strategies in place that you are executing for a positive return on your investment. Practise practise practise. Nothing
beats experience so if you can get a flavour for the market by trading with none of your own capital at risk, do it. There is
absolutely no shame in that. 

How Much Capital Do I Need?

This is a common question that I see from traders surrounding the level of capital they need to get going. Many traders
looking to catch a quick buck will think they can invest £100 and all of a sudden make £50,000 in the space of 12
months, if you know anyone who has achieved these kinds of returns, put me in touch with them! For those of us looking
to seek realistic returns this is simply not conceivable. So, talking of being realistic, well set out your goals and
aspirations before you start thinking about funding your account. What is the purpose of trading? Are you trading for a
hobby? Are you trading to make a small side of additional income? Or are you looking to make some real big money out
of it in order to quit your job? The differing answers to this question will depend upon the amount of capital you need to
invest. Those of you doing this for a hobby may only want to invest lightly. Those of you looking to make a side income
well let's think realistically;
Let's
For arguments sake let's take the average salary here in the United Kingdom which sits at £27,000 Chat! tells me).
(as Google
Now after you've paid your 20% tax, national insurance and whatever other contributions you have, you're probably left
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with around £1,800 per calendar month that you can take home to spend. With that in mind, let's say you want to make
an additional slice of income of around 20% of your take home to top up your salary. In other words you want to earn
£360 per month extra from trading (£1,800 x 0.2 (20%) = £360). What realistic capital allowance would allow those kinds
of returns? Well let me break down the figures for you and then you can decide whats achievable, note these figures will
not take into account compounding. 

£1,000 account balance to earn £360 per month = 36% ROI 

£2,000 account balance to earn £360 per month = 18% ROI
£4,000 account balance to earn £360 per month = 9% ROI
£6,000 account balance to earn £360 per month = 6% ROI
£8,000 account balance to earn £360 per month = 4.5% ROI
£10,000 account balance to earn £360 per month = 3.6% ROI

So, now what do you think? I hope by breaking down the numbers you will be able to conceptualise and work out your
own numbers on your target income and how that works out the percentage returns you need to achieve on a given
account balance in order to meet those targets. For me personally, anything from 3% - 10% per month is realistic, to do
this consistently is where the difficulties lie, but if you can average these figures over the course of 12 months, you wont
go far wrong. 

Now we've outlined the income for those who just want a little of additional income, let's have a look into the capital of
someone who is looking to make a full time salary from this. So, given the U.K average salary is £27,000 and if you're
taking this course i'm going to assume that you are hungry and driven and want far more than 'average' so let's say you
want that golden 6 figure salary of £100,000 per calendar year. How much starting capital would that require? 

£25,000 account balance to earn £100,000 per year = 500% ROI

£50,000 account balance to earn £100,000 per year = 300% ROI
£100,000 account balance to earn £100,000 per year = 100% ROI 
£250,000 account balance to earn £100,000 per year = 40% ROI
£500,000 account balance to earn £100,000 per year = 20% ROI 

So those of you are thinking big, you also need absolutely spectacular returns and a fair amount of starting capital to
begin with. However with the power of compounding as we discussed in lesson 5, you can earn as much as your work
rate allows you too. Work hard, and let the compounding effect have your money work hard for you. If you're working
hard and you're money is working hard, well after a few years you'll start to see real tangible returns. 

Above: Time and Money

How To Fund An Account

Now you might be thinking, but I don't have £2,000 of spare cash to invest in my FX account. For the large majority of
the population I can understand this as I recently read an article which stated that 1 in 4 families have less than £95 in
savings. Yes, 25% of U.K families have less than £100 saved in cold hard cash, quite staggering if you ask me. However,
without going into the depths of expenses and consumption, let's just keep it simple and keep this very real at the same
time. 

Again for arguments sake let's say you earn the average U.K salary of £27,000 and as we discovered previously
accounts to roughly £1,800 after deductions. Of course you're take home salary may be slightly different depending on
your pension contributions, share plans or any other benefits your company offers, but you find you are spending a large
proportion of your income. Well, the first thing to identify here is priorities and values. If your priorities and value structure
has FX trading higher up on your list than it does having a night out on the town on a Saturday, you'll save the money
you would've spent on a Saturday night and spend the time spent trading, so there's an additional £50 back in your
pocket. Similarly, let's say you go out for a meal once per week with your partner which again, sets you back the best
part of £50, cut that trip down just to once a fortnight, and all of a sudden you have an additional £100 back in your
pocket. Let's say you buy yourself 1 cup of coffee per day whilst at work 5 days a week from a local coffee shop which
costs you £3, however your main priority is to trade FX so you stop buying that cup of coffee and before you know it you
have an additional £75 in your back pocket per month. Small savings go a long way and that is how we are going to fund
our trading account. 

For those of you who aren't short of a few quid, fantastic. Having cash buffers in place will allow you to feel far more
comfortable trading FX than those who don't and I would advise everyone to save cash buffers first before entering a
speculative market. However, now we've established how we're going to save a few quid, we're going to feed that
money into our account on a monthly basis. Even if you start with £100 per month, it doesn't seem like much but after 5
years without compounding you will have personally put away £6,000 into that trading account. Now let me compound
that for you at just a 30% annual return, yes at just 2.5% ROI per month, by year 5 your account balance is sat at
£14,379.12 and in year 5 you have compounded £8,279.12 which puts an extra £690 per month in your back pocket! I
hope by explaining this and conceptualising how this is more than possible puts you in the right mindset going forward.
Please also feel free to work out bigger numbers, if you can afford to put £500 away each month then be my guest to
calculate your compounded returns over the next 5 years, I think you will be most pleasantly surprised. 

Time Management

I don't mean to bang the same drum again, but nothing beats good old fashioned hard work and a little bit of sacrifice. As
the old saying goes hard work beats talent when talent doesn't work hard. You don't need to have been a straight A
student in school to be successful in life. Although I did go to university and get a degree, I sure as hell aren't the most
academic person and I definitely don't have straight A's to my name so don't be restricted by societal stigma that you
cant do well if you don't get good grades because the only person grading your performance when Let's Chat!
you're trading is

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YOU! I cant stress enough, just put the work in and all of sudden things will start to fall into place and I hope this course
will allow you to accelerate your knowledge much quicker than a whole load of  'trial and error'. 

Above: Success

The Path To Success

Everyone has a different journey to achieving their goals and there is no doubt in my mind that every successful person
had setbacks along the way. A common phrase that gets thrown around is 'fail your way to success'. For a lot of people
this can be very true, you make mistakes after mistake, see setback after setback and experience failure after failure,
your resilience to carry on and not quit will be what determines your outcome. There is no straight line to success, if you
set a goal and then just achieved it without any setbacks along the way everyone would be successful. Whereas the
population of people who actually achieve beyond mediocrity is very few in actuality. 

Above: Reality Vs Your Plan

I have seen the image above thrown around online and over social media and there is a significant amount of truth
behind it. When you set a goal you think of the end destination, the outcome. The benefits of achieving that goal will
bring to your life. However I feel what isn't spoken about enough is the process to achieving that outcome or end goal.
The process is where the challenges lie and where you will experience setbacks along the way and it is how you deal
with those setbacks that will define your level of success. If you experience 10 setbacks that knock you down I need you
to dust yourself down and get back up with resilience and go again. As the saying goes those who don't quit never fail.
You will inevitably see hard times whilst your trading, especially in the early days whilst you are still learning how the
market moves and what styles and strategies suit you best, but inevitably those of you who put the work in and are
persistent and resilient in your approach will be the ones who eventually break through and see the light at the end of
the tunnel.

Sharing Success

Your success is my success, I didn't invest my time and money into this project to not see people genuinely succeed. I
hope by taking this course you feel far more prepared than you ever could be to tackle the FX market. In saying that
please feel free to share your successes and your setbacks with me. My vision behind this project was to create a
community of like minded individuals who are all driven to succeed in the FX market and for me personally to build great
relationships with great people. There is no better way to do this than to engage with me and those of you who do drop
me an email every now and then to let me know how you're getting on will probably be the ones who get even more out
of taking this course. Another purpose of this project was to create a community of proud STS members who have taken
value from the course. So if you do have a friend, colleague or follower who wants to learn more, I'd hope you send them
in this direction to help grow this community further. Please also feel free to share where you got your knowledge from
by sharing our website link www.swingtradersociety.com in your personal biographies on social media as it will help us
massively in our quest to build a fantastic community of traders. 

Final Thoughts

I just want to say thank-you. Thank-you for investing in yourself. Thank-you for investing in us. And thank-you for allowing
us to build a community of like minded, driven and ambitious traders. I will continuously look to improve and build upon
the content that is already available and provide the upmost commitment to each and every single STS member. Your
feedback is important to us, so please feel free to drop us a message by clicking on this link.

Mitchell Shoesmith, Owner of Swing Trader Society

 
Signed:

Let's Chat!

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Risk Notice: Foreign Exchange and CFD trading carries a high degree of risk and is not be suitable for everyone. Trading is not guaranteed to make you money, only invest what you
can afford to put at risk as there is a possibility you could incur losses.Past performance is not indicative of future results, trade at your own risk. 

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