This isn't a sales pitch. It's a problem we all have. It's there, and it needs a solution regardless of who you are.
I was able to solve it first through my investing in real estate, and now in currency trading. Here's the problem: If you're not happy with your job, or the amount of money you make or have, how do you change that?
If you're 50 plus years old and realize the horrible situation that you just don't have enough savings or the time left to accumulate them to be able to retire, how do you change that?
If you're 30 years old and realize the horrible situation that most of the 50 plus year olds you see who just don't have enough savings or the time left to accumulate them to be able to retire, and that if you don't start doing something right now to accumulate wealth or you won't be able to retire either, how do you change that?
The answer is that you need to have your money make money, rather than you working to make money.
Not much happens with your money in a savings account, currently paying maybe 1% - other than saving it and watching it erode with a 2% to 3% inflation rate. Do you really know enough to invest in stocks, or gold? Do you have the capital and skills necessary to buy, improve, manage, and sell real estate? And how are those 401k, IRA, etc. accounts your broker holds for you? How are those doing?
The other thing with all of those investments is that they take time to compound into meaningful amounts of capital. Like 20 years. Have you got a lot of money to start with so that in 20 years it can compound into a significant nest egg that you can then take enough out a year to last you 30 years in your retirement? In fact, do you even have 20 years to make that happen?
And if you think that you'll accumulate enough money by working 40 years at your job, then why is it that even in 2019 the average American between the ages of 55 and 65 had only accrued about $104,000 in retirement savings? Though that may sound like a lot, it really isn't when you realize that would only provide about $300 a month at a safe withdraw rate of between 3% to 4%.
Not to be grim about things, but the average Social Security payment is only around $1,500 per month (2020 statistic). With retirement savings, that's $1,800 a month. Not sure where you live, but most places I'm aware of cost over $1,000 just for rent.
So, how do you make significant money from your money regardless of your present job, financial situation, or age (I didn't start trading until I was in my 60s!)?
Well, you need to invest a little of your time and money to learn what I learned after a hard and difficult career as a software engineer.
I faced retirement in a little bit better shape than most because I had saved some money. But regardless of that money, I knew that it, along with Social Security, was just not going to provide sufficient income. There'd be no real margin for error.
The sudden demise of a car, new roof on the house, or unexpected medical bills could make life a little difficult. Or how about just having a dog! In October of 2017, I had to pay out over $800 for x-rays, surgery, blood tests, and several prescriptions of doggy-meds for my mini Australian Shepherd, Beau. Love him to death, but $800....
I discovered the FOREX foreign currency markets quite by accident (and not until my 60s!), and became fascinated with how much better these markets were for investing in than stocks, bonds, commodities, or even real estate.
You see, one of the main problems with all of these other asset classes — other than the fact that they all require specialized training — is that they rely on time to compound in value. But I was at a period in my life that I no longer had that time. However, with FOREX, time disappears! The problems of compounding go away!
Why is this? Well, I'd love to tell you all about it....
But what if you are
happy with your job, and you are
happy with the amount of money you make or have?
If so, you're a very fortunate person. You've obviously worked hard, and have skills that are valued enough that your income exceeds your expenses such that you not only have savings, but disposable income and growing net worth.
Not to be dramatic here, but you should still be concerned. I was in that exact situation. Twice. And I lost a Million Dollar net worth. Twice.
Sure, I was able to come back each time. But it took me 10 years. Each time. And during those periods, things could have simply not worked out. Things did work out. But I was more lucky than I had ultimate control to make anything happen because most of my assets were in real estate.
Look, it's fine to, as Andrew Carnegie once said (in a June 23, 1885 address to the students of Curry Commercial College of Pittsburgh, Pennsylvania): "Put all your eggs in one basket and then watch that basket." But a basket full of real estate can deteriorate far faster than your ability to liquidate it in time to save yourself. So can a stock and bond portfolio, both of which I had, and everything just flat-lined.
I've been through 4 severe economic down-drafts in my life and watched helplessly each time as that basket evaporated. Because I understand the rules of this game, all I lost was net worth, not assets. But as I approached retirement, I evaluated that basket with the timing of the market, cashed out, and banked previously vulnerable, and mortgaged property for cash and mortgage free assets.
What I'm getting at here is two points if you are doing well. First, at some point your entire conventional asset base will come under duress, perhaps even catastrophic decay. You need to have the skills to weather this. Second, you may find yourself "out of time" for another run at conventional asset growth. You need to have the skills to weather this.
So, what are you going to do to avoid this? Well, I'd love to tell you all about it....
Trading is an art, not a science. There are no formulas to success; only guidelines. You can read all of the books you want, attend seminars, or watch endless videos, but unless you have a mentor to guide you, you will have to fail on your own in order to learn. As the great speculator Jesse Livermore clearly stated: "The only way you get a real education in the market is to invest cash, track your trades, and study your mistakes.
The good news is that you not only can limit your losses as you are learning, but also dramatically reduce the time it will take you to become successful. You do this by having a mentor guide you.
I didn't have a mentor when I started trading. I thought I could do it on my own. After all, I had a B.S. degree in Physics and had spent over 30 years as a software applications developer. I applied those talents to writing thousands and thousands of lines of computer simulation and analysis software code over stock, options, commodities, and currencies.
I figured with all that background I could do this trading thing....
Well, it just didn't work out that way for me at all.
I wasn't successful, and it really pissed me off!
It was only after years and years of losing in simulated trading accounts, and way, way too much real money, that I finally did figure it out.
It cost me $50,000 to figure out what I was doing wrong.
It could have been a lot easier if I would have had someone to point the way for me...
However, my experiences have made me a better mentor for others because then you can learn from my mistakes instead of your own.
Look, there are a lot of really competent folks out there to choose from that teach trading. I'm just one. Just like not everyone you come into contact with will be someone you'd invite over to your house for dinner, not every instructor out there will fit your specific personality or needs. Look at how many steak house restaurants there are, for example. I mean, really, how much different can you fix a steak? How do they all survive then?
Well, it's because each of those restaurants, even though they basically serve the same thing, have their own unique style and atmosphere. The atmosphere provided at one restaurant just may not be attractive to you, whereas the atmosphere at another causes you to feel really good about the whole experience. Look, you can fix the steak at home on the grill for 5 times less money. But you go out to that restaurant for the experience....
Finding a mentor is basically the same thing. You need to find someone you feel comfortable with, someone who can express themselves in a manner that you can directly relate to and who will enable you to become a better trader.
A mentor is a coach, who, though competent in what they do, has to have that unique ability to help someone else become even better than they are. I've been involved in the martial arts since 1968 and am at the Grandmaster level, so I know a few things about learning, developing skills, and the difference between just teaching and being a mentor — I have martial arts students who have been with me for 30+ years. I get it.
Do you think the great Tiger Woods listens to his caddie or coaches because they are all better than he is? No. He listens to them because they can take an objective view of what he is doing and express it in a manner that enables him to get better.
But, of course, that doesn't mean just anybody out there with a little training is going to be qualified to mentor you. They have to be good, really good for that, right? Sure they do. No doubt about it. But, even if the person who is offering to teach you has made 30 million dollars, that's not enough to determine if they can teach you how to be successful.
A good trading coach or mentor will teach you the same 'stuff', just like a good steak house will serve you the same good steak. Your goal is to find the best environment for you to enjoy that steak. And so too, you need to investigate a lot of trading coaches in order to find the one that you're going to be the most comfortable with, the one that you'll flourish with as your mentor.
I didn’t have a mentor when I started live trading, and I lost a huge percentage of my account because no one was there to guide me though. It took me a long time to recover. I wish I would have had someone to look over my shoulder....
There are, unfortunately, not only a lot of bad steak houses, but there are a lot of bad trading coaches. There are a lot of folks out there teaching stuff that they don't use themselves. There are even a lot of trading coaches who don't trade! I love to watch the videos from some of these folks, though, as they are inspiring of 'the story'.
But don't be fooled by all of that. Be aware that many of the companies advertising on YouTube videos are really multi-level marketing companies that show big gains from folks trading, but most of those gains are from money they make from getting others involved in the game. And so many companies are just flat-out scams. It's really scary if you don't know what to look for.
And, please don't fall for the guy that says he has 90% winning trades, or that with their system you only need to have 40% winning trades. Those are all just useless metrics to base your judgment on. And just run from anyone who's 'proof' of how great a trader they are is based on them flagging their 'certified' trading and bank account statements at you. Remember Bernie Madoff? Please....
One other thing to consider when looking for a trading mentor is be wary of someone from overseas who claims to have made millions of dollars from their trading. That could very well be true, but so many who market their programs here in the U.S. made their money overseas where the leverage available to them at some point could have been 200 to 1, or more.
This is really dangerous because it only takes a very small move to wipe out an account. However, using this kind of leverage, they could very well have compounded a small $5,000 account to literally hundreds of thousands of dollars. For example, where someone in the U.S. with a $5,000 account might make a decent return of around $1,700 (34%) compounding 5 winning trades at 20 to 1 leverage, the person with access to 200 to 1 leverage with that same starting bank of $5,000 would make over $47,000 (940%) compounding over the same 5 winning trades, and $550,000 over 10 trades.
Such results lead to very deceptive claims as to what their trading programs are capable of. This is why the European Union, and many other countries, have banned such leverage. However, the claims of fast riches from these folks continue to be seen.
You should choose your trading mentor the same way that you would select an attorney: you interview them and determine for yourself if you feel comfortable with that person based on your conversation vs a sales pitch, advertisement, or parchment paper certificates hanging on the wall.
Sure, that's a long process, and it takes work. It's an unfortunate fact that most folks who go into trading will spend more time picking out a pair of shoes than they will selecting a mentor. If you don't do your homework, or you pick the cheapest alternative, then you get what you pay for. Sorry, but that's just the way it is.
I've been in the martial arts since 1968 and hold a Grandmaster ranking. I didn't achieve that by myself. I was persistent and I had mentors to point the way for me. Of course, I had to do the work. But a huge part of what I was taught was that once I had mastered that art and myself, my responsibility was to share that knowledge with others. And so, since I have benefited from my experiences in trading, I feel I have a responsibility to work with others. And that's why I teach trading. Simple as that.
I'm not pushing training programs as my business. I'm a trader, and I'm in this business to make money and to enjoy life. However, I feel I have a responsibility to help folks who seek my counsel. But, before considering Longwood Currency Trading as your mentor, please consider the following quote again by Jessie Livermore because it embodies the essence of my thought process:
"The only way you get a real education in the market is to invest cash, track your trades, and study your mistakes."
The objective of taking a class and practicing is to learn how to win substantially more when you win than you lose when you lose so that over the long run you come out ahead.
It was only after years and years
of losing in simulated trading accounts, and way, way
too much real money, that I finally did figure it out.
Part of the solution was by simply applying the same principles I used to become a millionaire in real estate. I stumbled at first with it because of the time differential in these two investment vehicles.
Once I saw how to alter the process, though, everything fell right into place. But that was just a small piece of the puzzle.
What I discovered was really remarkable.
Remarkable because it brought my trading to a hugely successful level in literally just a few weeks.
Trading isn't hard nor is it complex. You don't need a physics degree to trade. In fact, that was one of my problems: I thought it would take some complex algorithms to trade successfully.
Boy! Was I wrong on that.
Once I understood that, I knew I'd be a good teacher and mentor for someone wanting to learn to trade.
Some of the folks I've chatted with about trading feel discouraged because they think they don't have enough money to get involved. All they immediately see is that to trade 1 full lot of a currency pair requires somewhere in the $6,000 to $8,000 range, depending on the pair traded, though $10,000 is the safe and recommended amount.
It's nice if you have that much money to trade with, just like it might be nice to be able buy a BMW. But you might only have enough money to buy a $3,000 used car to get you started. It's the same with currency trading: it's nice if you have $10,000 or so because then each pip move in the price is worth $10.
However, you can trade mini lots with a $1,000 account and make $1 per pip, or even trade micro lots with a $100 account and make $0.10 per pip. Regardless of all that, you shouldn't even start trading real money anyway until you've practiced in a no risk, free simulated account.
But, the best advice I can give you if you are interested in trading these markets is to get a mentor to show you the ropes. It's almost a sure bet that you won't learn the correct approach to trading these markets by only reading books, watching videos, or even taking online courses. You've got to have someone share the process with you in person.
On a final note, if we met somewhere and I handed you my business card, I don't want you to think all I was doing was hitting you up to become a client and paying me money to teach you how to trade.
You can learn how to trade on line for free; you don't need me.
I gave you this reference so that if you ever wanted to contact me you could, maybe just to play backgammon or something. Or perhaps I gave you my card because on the opposite side is my martial arts, Rose School of Karate, contact information.
And sure, in addition to that, in the event you've never heard of the FOREX foreign currency markets, you just might want to check it out and see what's going on for yourself. Just know that there's a lot of bad information out there, with compelling sales pitches trying to get your money.
If you're interested, email me at , and I'll send you a 37 page PDF document I wrote. It outlines some of the rules that I use to solve issues I face on a daily basis trading the currency markets.
If you're investigating currency trading for the first time, you may have to do some additional research to understand some of the issues I discuss in it. So, if you get stuck or have questions, throw me an email. I might be able to point you to additional resources. I'd even be willing to set up a time to chat with you — no charge and absolutely no sales pitches.
The short answer to that question is, maybe....
No other educator would say that. They'll tell you anyone can do it, and they'll gladly take your money regardless of whether you could or not. Why? Because it's not their business model to ask you a few questions that may cost them a sale.
I ask the questions they should ask. If I don't think you have the basic skills to learn how to trade currencies, I'll tell you.
Why would I do that?
Well, for my own selfish reasons, actually. I'm not running a training business where I want to teach hundreds of people by flying all over the place giving seminars taking my time to work with someone when I know they either don't want to put the effort forward, or simply won't be able to implement what I teach successfully.
I'm reeee-tired, and I'd just as soon trade my own account and enjoy life in my deck chair rather than chase folks around trying to convince them to do something I feel they're not suited for.
Because of that, please don't contact me about learning to trade if you can't truthfully answer to some degree 'yes' to most of the following statements:
- You've had to work hard in your life for what you have. You appreciate what you have, but you want more.
- You realize that at this time in your life that you need some way to increase your net worth because it's not working fast enough doing what you're doing now.
- You can and will follow instructions, and you're able to question things you don't understand.
- You have a fairly well balanced personality. You may bitch about something, but can put it into perspective and then let it go.
- You're inquisitive, and enjoy learning new things.
- You have at least a little bit better than fair skills getting around on the computer and enjoy spending time at the computer.
- You like games, and puzzles, and have some experience playing either chess, poker, backgammon, or other strategy based game, and enjoy the challenge of problem solving.
Whew! That's some list, isn't it? Yes, it is. But key to all of those are the following traits that I feel are most important:
- You can and will follow instructions.
- You are inquisitive, and enjoy learning new things.
- You enjoy the challenge of problem solving.
These 3 are critical. The others are important, but they, like anything else, can be learned if you're motivated. But if you can't answer a resounding 'yes' to these 3, then I can't help you.
However, if you can answer 'yes' to those 3, then there is absolutely no reason you can't learn how to trade successfully, regardless of your education, occupation, or age.