I was introduced to Forex trading back in 2005, and it took a LONG time before I truly understood what I was doing.
Many years later, I settled on a trading approach that worked well enough to pay the bills.
That was when I thought I had “made it”.
But as I continued along my trading journey, I came to realize that I’d painted myself into a corner. Since I was paying the bills with my profits, I literally could not afford to take a break from trading.
Every time the market rallied or dipped 20 pips, I had to be ready to jump into a trade. I was stuck to the computer for hours on end, and had to skip more than a few meals to manage my trades or to keep a lookout for new profit opportunities.
I ended up becoming very high-strung, my personal relationships suffered, and my health deteriorated… I even developed a stomach ulcer before turning 30.
Before I knew it, I had become a slave to the market.
Trading Became Just Another Job
Technically, I didn’t have a boss to answer to. But there was no doubt that the market was calling the shots in my life.
How I felt, when I ate, when I could go to sleep… was all determined by the market.
I had practically no control over my lifestyle.
And one day it hit me…
I had signed up for just another job.
Employees Exchange Their Time For Money
I thought that being a trader meant that I could make money without getting a job. But with the way I was trading, it was no different than having one.
In fact, it was worse. With a job at least, you get a guaranteed paycheck plus sick/vacation days off.
With trading, getting sick means I don’t get paid. And if I go on vacation, I don’t make money.
This made me realize that my approach to trading was flawed.
I wasn’t just trading currencies… I was trading my time for money.
Something had to change.
Entrepreneurs Exchange Leveraged Value For Money
The paradigm shift came when I started thinking like an entrepreneur rather than an employee.
Instead of thinking, “how I do I make an income trading for myself?”, I started thinking, “how do grow my income by providing (trading) value to others?”
This was the mindset shift that enabled me to decouple my income from the time I spend on trading.
Now, instead of trading 10 hours a day with my own capital, I can spend a fraction of that time trading AND have others to copy my trades for a performance fee.
Rather than having to attain, for example, a 4% monthly return on my own capital, I can make the same amount of money (or more) with a 2% return, and with people copying my trades.
Trading Value Can Be Leveraged; Time Cannot
There’s a hard limit to the amount of time and effort I can spend on trading each day.
If I wanted to raise my income trading for just myself, I’d have to increase my capital and/or my returns. The latter is especially difficult to do.
In multiplying the value I provide to trade followers however, I can grow my income to a level far surpassing that of trading just for myself – It is far easier to increase the number of trade followers by 10% than to increase the average monthly return by 1%.
To increase your trading income, starting thinking like an entrepreneur
Paradoxically, my income shot up when I stopped focusing on myself (like an employee) and started focusing on providing value to others (like an entrepreneur).
If you can trade profitably, it makes much more sense to provide a valuable service to others, than to just trade for yourself.
It took me a long time to realize this. Don’t make the same mistake I did.
we shouldn’t seeking clues and advantages in complexity. we should strive to adopt simple trading systems and have a better chance of remaining robust and profitable, and become one of the minority winners
this what my mentor telling me
thanks
chai
I believe you have it right Chris.
hi
I find this so far extremely useful I hope it will help me to be consistently good in trading and in effort to make forex trading my longterm business
with respect Danica Vuksanovic
Dear Chris Lee
Your blog post is wonderful.I fully agree with you that type of trading at the cost of our health,time,relations and peace of mind is totally useless.
Thanks Chris. So true.
Its allot to think about. I guess it can be what makes you throw in the towel in frustration(even though you really had the knowledge and ability) because you just couldn’t take a step back and get a better perspective.
Icarus is a terrific and sustainable way to think about forex trading
Mark
Hi Chris
i can relate to your article 100% and its all true as well.
part of my new trading strategy is to trade higher time frames this cuts out most of the lower time frame noise plus allows me time away from my computer, i also find that the higher time frame have much more reliable signal.
i am interested in your icarus programme just not sure if i can afford it at the moment
stay well and keep trading well
tino
Hey guys, thanks for the feedback. It helps me to better understand the type of posts that are useful to you.
Tino, please take your time. Icarus emphasizes trading in comfort, so we’ll welcome your participation whenever you are ready.
I agree that you had to change your trading style, look at becoming a long term trader, as Tino says above, when going away not chasing as few pips every hour or scalping.
Then use mulipal entries that will reduce the need of sitting waiting it just you will have to learn to manage your emotions on the ups and downs which is part of the job….cheers
Hi Chris,
Awesome posting! I have been trading on and off for 3 years now and I hear what you are saying. I recently listened to an audiobook by Robert Kiyosaki regarding trading your time for money and I agree with what you say. That is exactly what employees do and it makes very little sense. I still haven’t been able to make a consistent profit trading, so I am still working on my system, but I know that I will eventually be successful and then start looking at things the way you are looking at them now. I don’t want to have to trade my current job for a ‘Forex’ job in front of the computer screen. Really got me thinking! Thanks!!
Chris
Hi,Chris.
Yes, there are lots of familiar things that you brought up in your blog today which remind me of my starting off in this Forex world. Before I came across your earlier “Candlestickmadeeasy” I’ve not even a clue what were those that we need to equip myself to go into this so-called FOREX (which was introduced by my friend ). It’s like crawling in the dark without any guide as to where I was heading. Sticking to computer every single moment. As I realised (coupled with your materials), higher time frames and others could help tremendously in looking at the market moves. Of course, there are other factors that go with that too…viz fundamentals, economic events that each country undergo. With your Icarus, things are getting better in terms of managing ourselves towards the market. Again, I feel it s not easy. But it needs patience, tolerance, disciplined mind, etc. I believe that things and the way people react to the market may also evolve overtime……with the emergence of robotic systems,etc. But the fundamental way of trading will still (I feel) be the way forward….Trading with confidence (If I can manage myself) I don’t know about others!!!…… Its a long journey.
Thanks.
yes your candle sticks book was 100% informative and enlightening, worth the money and effort,I just do it for a hobby,as time goes by have learned more and more, am doing psychological levels at present,also swing highs n lows to go along with the psychological levels n all makes good sense, to become a good trader takes time and study,just before Easter had 14 out of 15 winners , however after Easter went flat and didnt trade much last week ,hope next week will be better,happy trading to all. 🙂
Hi Chris,
I totally agree with you, I am slowly working my way through ICARUS, I also bought your Candlesticks Ebook and try to trade with the information that I have learned from that as well as watch the news.
keep up the good and useful information. It is a big help for us.
Kind Regards
Don. Bennington
Hi Chris!
Hindsight is a magical thing in that it opens your eyes after the event-I went on the same journey as you say was what was mapped out for you, however when I reached 65 here I was still trading time for money even with having my own business
Then comes a recession & bingo I find myself back practically where I started in 1982
While well aware of the pull of the “get rich schemes” especially when one is feeling desperate, after careful consideration I commenced my “Demo” education in FX some 15 months ago (I did not expect to still be in demo after this time)
Two important things have happened—-First, I have been fortunate to realise from my business experience that in FX trading until you gain the nessessary knowledge & skills one doesn’t put their best foot forward until you can profit consistantly
Second—you need a competent teacher/mentor
After down loading your Candlestick e-book and reading your Manifisto I have chosen to become part of Icarus as your observations & your simple trading systems indicate the potential for me to become part of the minority of profitable traders
I am currently doing Market 1 in the programme & looking forward to the rest of the modules
I look forward the the balance of the course and really appreciate you taking the time to share your experience, skills & teaching methods
Yours in (profitable) trading
Banjo
I truly agree with yr statement of spending less family time and more of computer time. This time after it make sense that we have other better things to do besides just spending time watching the market the whole day and ends up just earning peanut or nothing at all (it happen to me, after 12 hrs of watching the market no profitable trade). Its just depressing. Maybe Icarus I will join to manage my time and energy well.
Keep up the good work Chris.
Thank you so much for one more brilliant article Chris.
I really love and appreciate how you view Trading as a “cog” in the “wheel of your life” and that is exactly how I am hoping it to be in mine and not a “disguised job”!
Hi Chris,
You appear to be wonderful. You have really got the ability to read my mind. Thanks for the good job and keep it up.
Hi Chris.
I read this article with interest as with most of your articles.
However I would like to ask a question from you.
You said you spent “all your time in front of your computer”
What time frames were you trading. I used to trade 15 minute charts, but found all the oportunities were mostly at two in the morning and I was missing them.
Then I read an article of yours about two or three weeks where you suggested using a longer time frame which woke me from my tunnel vision.
I now trade 4 hour charts, I check them each morning and evening for oportunities.
I am not glued to my screen and have had several succesfull trades and I still carry out my day job (Contractor).
If I have a trade going I check more often usually after each new candle and move my stop to break even or profit earlier rather than later.
There is a saying I have heard “Let your profits run and cut your losses”. After many profits lost following my report advisor directions, I now lock in profits as soon as possable, and if I get stopped out and miss a higher profit, so be it.
Your thoughts?
Hi Ross,
That’s a really good question which deserves a post of its own. I’ll definitely be writing about this over the next couple of weeks, so please look out for it.
To everyone: Thank you for your questions because it helps me create posts that are most relevant to you… so please keep your questions coming!
Hi Chris,
I have for a very long time wanted to quit my job and trade professionally. I have studied various methods of trading but never quite got the strategy to allow me to be consistently profitable (despite an MSc.in Finance) I have traded but not gotten the results I wanted and that is after “blowing” two accounts. I want to learn to conquer my fears but more importantly keep greed at bay. I have used technical analysis to the exclusion of fundamental analysis. As stated in your 5th strategy principle – the power of laziness is not upon me because of your article and my determination to succeed, I am willing to put in the extra effort to achieve my goals. I like your conservative approach to trading. Boring as some may think, its the end result that counts.Having read your article Employee Trader vs Investor and the 5 strategy principles, I am looking forward to joining the Icarus Method training programme (b4 I quit my job) and I am very grateful to you for putting everything into perspective.I should have come across you 5 years ago.
Regards,
Arthur
Hi Chris,I am agree your opinion.Thank you for your kindness give me your surefire information.I want to learn more tech from you.
Chris,
This is Kordell. Just checking in to see how you are doing. Im glad to see that you have join the ranks of position trading. It is the only way to go. I can trade once to twice a year build a position and relax. I am building 5 positions now in the gn ga au nu acad. I started building in April and I check my trades just a few times a week. Glad to hear you are doing good. Send me a line.
Hey Kordell, hope you’re doing well! Yes, trading on the longer term is a lot more rewarding.
Hi Chris :
Humane & practical . What a good learning .
Alfredo Arcieri
I have few questions to you. If a person do not pass time front of monitor, how he or she will be experienced about it? You screen experience also important. You past more time now you can easily understand
Hi Readul,
Great question!
Screen time is important, but you’ll need to be specific about what that means.
There’s a big difference between spending 5 hours daily in front of the monitor, versus 10 minutes at the end of each day to see how prices moved throughout the day.
Both can be considered “screen time”, although each brings with it a different set of costs and benefits.
Chris, thank you very much for your write up, may God continue to bless you, that is just what many of us are going true. I promise to read your Manifesto,s and get back to you soonest.
Thanks and God bless you.
Hi Chris,that initial plan of life was what everybody has. Those plans were made by our parents and handed over to us to key into. But a time comes when you have to make your plans based on your visions and philosophy of life.
Thanks for your write up .
Augustine.
Hello Chris. The Icarus training price is reasonable, but to have an established account of $20 – 25K will be hard to muster. As I did have that amount once but through buying courses (mostly indicator type courses)and losing trades, I down to less than half of that amount. Is the drawdowns are such that I need to start with that amount? Thanks in advance!
Hi James,
$20 – $25K is the estimated minimum an account needs to grow to, to replace the average paycheck. It is not the amount required to join Icarus.
The Icarus method accommodates accounts of almost all sizes, but I’d recommend $2K or more.
Dear Chrish,
Above given lesson happens almost in everybody’s life,but some persons like you are feeling and after that changes their life style (trade style). Really speaking I also feel this type of experience that I am earning money at the cost of my time, family relations, health,and so many valuable things which will not come again in our life again.You are really inspired person, this is a gift of God to you.Go a head we are with you.
Chris,
That’s *another* very good post from you. I’m in total agreement – while trading well is one of the most useful skills anyone can have, time spent in front of a screen watching the markets would be better spent doing almost anything else.
Do you ever give talks/seminars in person? I’m probably making another trip to KL next year.
Hi Ken,
Sorry but nope, I don’t. Seminars are not exactly my style.
it is interesting
Hi Chris,
Thanks for the article which is well written.
I have a question – I am from India where Forex trading is illegal. However we can trade in currency futures in 5 pairs like USD/INR, etc.
Will your Iracus method help in this circumstances?
Thanks,
Garry
Hi Garry,
I do not trade the futures markets extensively (only spot Forex) so I cannot say for certain.
However, the futures price usually follows the spot price so in most instances the concepts are equally applicable.
Thanks for the post Chris, it really hit home with me as that is exactly how I feel now, scrammbling for another way to make some income, but I’ve noticed that is “has” taken away alot of time…. too much of it. I’m hoping to join your program so I can learn how to trade more successfully. There are some methods that have been successful for me, but most aren’t so I’m hoping to use your phlosophy and methodology to help in my own trading…. Cheers, Terry
Hi Terry,
Good to have you on board. Please feel free to write in if you have any questions with it!
Hey Chris, I really enjoy reading all your posts. You always have great insight. I actually look forward to reading your emails. And trust me my inbox is getting flooded with so-called forex “gurus” daily trying to sell something. Which you don’t. You just give great advice and direction for those of us in need.
Thanks greatly appreciated
Jake
Hi Jake,
Thank you! I really appreciate your encouragement. 🙂
Hi Chris
You are so spot on
I grateful for this insight
You made me look. Very inspiring. I agree investors must trade money for more time and & more money. Thanks Chris
Hi Chris,
May I know how does Icarus work that enables you to make money even without you trading?
Thanks for your wonderful blog, I have learnt very much from it!
Hi Lille,
Glad you like the blog. 🙂
Icarus does involve trading. That is, you’ll have to be the one to set the trade orders.
The difference is that compared to most other trading approaches, it doesn’t require you to sit in front of the computer/laptop all day to trade.
Great post. Been working on the same idea’s you portrayed in the employee/investor article. Sitting in front of the computer all day is not my idea of life. I too, like many of the previous posts, am looking into trading the higher time frames. I also agree with the “noise” dilemma when trying to catch a trade on the lower time frames…can really drive one crazy. Anyway, great post. The only thing I am not familiar with is…what is Icarus?
Thanks!
Hi Patti,
Thanks! The Icarus Project is my full Forex trading course. You can find out about it here.