This weekend I am for a 2 day conference in London, the financial capital of the UK.
Global policy makers are on alert to the economic fallout from the spreading coronavirus after stocks slumped last week. The impact on different economies and it’s currency pairs has been quite interesting. I learned a lot this past week on how certain currency pairs moved in times of big markets sell off. Trading currency pairs in times of stock markets sell off, offers huge profit potential if you understand fundamentals in combination with technical analysis. Federal Reserve Chairman Jerome Powell is already standing ready to cut interest rates after saying Friday that the U.S. central bank will “act as appropriate” as the virus poses “evolving risks” to the economy.
On the other side of the pond, the European Central Bank is no rush – and probably unable – to act. ECB President Christine Lagarde seemed reluctant to act. The ECB’s deposit rate is at -0.50% and it already buys €20 billion per month. Compared to the Fed, the Frankfurt-based institution’s ability to act is limited.
Forex trading skills is part of my EARLY Retirement plan. I hope you read my (EARLY) Retirement Plan blogpost.
Today I am informing you about the 2020 Smartphone Challenge.
The 2020 Smartphone Challenge
The world has gone mobile a long time ago, and we are doing all of our finances from shopping to banking on our smartphones, so trading forex is no different. In today’s world of smartphones and tablets, advancements in technology mean that you can now trade whilst on the move. As long as you have access to the internet then you can trade using a mobile device. Whether it be a mobile smartphone or a tablet, you can simply pick it up and start trading. This means that if you are on holiday or working away or you are on a long flight using Wi-Fi you can always trade. This is something that I learned executing during the year of 2019, even on a plane to the USA when I made more than 2.000$ in my demo account while everyone was sleeping or watching movies.
Being able to fit forex trading in around an already full schedule, with work, family and social commitments taking up a large part of your time are made much easier with the recent advancements in smartphone and tablet technology. As well as using your mobile device for shopping, planning, keeping a calendar, and finding out everything you need to know, you can now use it to trade Forex via one of the many mobile Forex apps. Provided, of course, you have a secure and stable internet connection. No longer are you tied to your PC or laptop.
With all the advantages and dangers of being exposed to the market continuously, it is crucial to have in-depth knowledge of the matter for every serious trader. Personally I possess fundamental and technical analysis skills which allows me to assess the market sentiment and impact of world events such as the corona virus on currency pairs, indices and gold. My smartphone has allowed me to do charting and take trades on the go. If you trade from higher time frames, there’s no need to check your trades every 15 minutes during the day. I simply put a Take Profit and Stop loss and stick to the trade plan.
For the year 2020, we will focus on our live (real money) accounts. Here’s the plan that we have drafted out…
We start with a 1.000 Euro account and want to trade this to 5.000 Euro. Once we hit the 5.000 we will pay ourselves 1500 that we put aside so we can ALWAYS start again with a new account if we would blow it up and lose it. In the plan above I wrote 1.000 but I will withdraw 1.500 euro.
From the 3.500 we will continue to compound our gains until we reach 10.000 Euro. Once we hit 10.000 euro, we will withdraw 2.000 Euro. We will continue this process until we reach 100.000 euro in our trading account. Once we hit a trading account of more than 160.000 Euro, we should have withdrawn more than 100.000 euro in trading profits. The principle is to always pay yourself as a reward at a certain milestone. I learned this from a more experienced professional Forex trader.
Where are we today at the start of March 2020 ? Today we have 3.000 Euro on the account after six weeks of trading on the go. Are we happy with this current result ? Sure, but at a certain moment I was at 4.200 euro. So I am also losing sometimes and taking a wrong decision on the market direction. It’s a learning process how to manage risk with reward and apply correct trade plans to the trades.
My 2020 Demo Account
Our beliefs about ourselves are critical elements of trading psychology. One personal characteristic that almost all winning traders share is that of self-confidence. Winning traders possess a firm, basic belief in their ability to BE winning traders – a belief that is not seriously shaken by a few, or even several, losing trades. That is a belief I am still building upon as I execute more winning trades.
I execute my doubt trades still in my demo account. As a result, I can evaluate the winning ratio of those trades and regret afterwards why I didn’t take it in my real money account. The demo account is today 90 million but that’s because I made one typo error for an entry on gold. That resulted in a 70M winner…lol. If I subtract that result, I would now be at 20 million. Maybe one day we can do this with real money…. Why not?
Final Words
We are today in phase 3 of the forex trading skills and we keep on building our skills towards a more experienced professional trader. Our goal is to achieve first the 5K and then the 10K. That’s our key objective in the coming months. Keep on compounding this account with 60, 100 or more euros. Little by little…Let’s compound our account and never take too much risk. The 2020 objective remains to improve continuously our skills, our trading psychology and our risk management. I am always ONE STEP closer to my goal.
Stay tuned how we progress in 2020…it is definitely an exciting journey.
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Source : Fxstreet 
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