Hey hey, what's up my friend so in today's episode, I'll share with you five five trading myths that has full almost right all new traders, so myth number one right. You probably hear something like this. Oh, if you just trade, one stand a lot and you make 20 pips a day right. You can make a full-time income from trading right.

That's about four thousand dollars a month. Right just need to make 20 pips a day right. Euro dollar. It moves an average of a hundred pips or can't you just you know, take 20 pips out of the market.

All you need is 20 pips one lot and that's four grand a month in the bank. Now, what's the problem with the statement with that idea being presented to you I'll, tell you I'll tell you what it is. So, yes, on average right most currency pairs, they move more than 20 pips a day right, sound. Maybe eighty hundred hundred fifty peeps, depending on the volatility of the market and it might seem plausible right if a market moves, like you, know, 100 people a day.

All I'm asking is 20 pips. Alright, if I make 20 pips on a one stand, a lot there's about $ 200 a day. Multiplied by five trading is a weakness. A thousand dollars for weeks and a month is about four thousand dollars, but the problem with that statement is assuming the market.

Doesn't change assuming that your trading strategy will continue working, but here's the thing when, if you look at a chart and the chat is always in an uptrend when, if you look at a chart and the chart is always in a downtrend, whenever you look at a Market, that is always in a range one thing that you can agree on is that the market is always changing and for you to make profit every single day for you to make 20 pips every day. For you to make money every day is assuming, then the market doesn't changing. That's how your trading strategy can make money consistently every day, 20 pips every day. Is that realistic? The answer is no market, always change, and when markets change, your trading strategy stopped working and that's where you have to adapt to different market conditions and how fast you a damn right will determine right how deep of a drawdown and you go.

If you adapt slowly then clearly right, you will suffer the patronum. If you adapt quickly, then your drawdown will be much or make sense. So don't fall for this. You know just make 20 people a day.

One lot you can make a full time: income from trading. That's okay, number two: this is a very common one. The market trends, 30 % of the time. You probably you know, heard that that's alright.

Oh, the market is trending 20 % of the time right, it's in a range more than half the time, so I was actually you know. I thought that was actually true. I bought into this as well until I did my own test right again. This was a test, an idea that I learned from Andre Unger he's a woke up trading champion.

He said that different markets have different characteristics, some trend better and some have a mean, reverting behavior. So one very simple test, then you can do is again it's his idea. He said that every time the market breaks out of the previous day, hi you buy one law and when it hits the previous day lo, you sell the long position and you go shop and if you do this right for any market, okay for any currency pair Right, you would have a simple size of data. You would know right whether the market has a trending, behavior or a mean reverting behavior, because by doing this simple test, this simple back test and if your equity curve is sloping up higher over time.

It's telling that this market has momentum it has followed through whenever it breaks above the previous day. Hi it has followed through. It continues to go higher whenever it breaks a previous day. Low it has followed.

True econ used continues to go lower and, if that's the case right for that market, you will have an upward sloping equity curve. On the other hand, if you have a market that has a mean reverting behavior every time it breaks above the previous day high. Yes, no follow-through just reverse back lower or whenever it breaks below the previous day in law, any reverse back up higher. That is a market with a mean, reverting behavior, so different markets have different behavior some trend better and some, you know simply are mean reverting in nature.

So again, right. Don't trust that you know markets trend 30 % of the time, because that's not true right. It really depends on the type of markets. Did your trading and again, they only can be done right, based on your research and your testing, and you have to find out for yourself, but couple that I can share with you right now.

Is that as of right now, pound dollar, pound yen? They are trending markets or the Canadian is a mean, reverting market, and this is based on the daily timeframe. Nothing right. There is the best trading strategy out there right. The best trading strategy is the one that generate the most amount of profits.

Well, that's not true again right. You can't judge a trading strategy based on the amount of profit that you make, because the amount of profit that you make is determined by a couple of things number one. The size of your trading account and number two. The amount of risk that you're taking.

For example, in account debt has $ 1,000. You won't expect that thousand dollars account to make like what ten thousand hundred thousand within a week. On the other hand, if you have let's say a billion dollar trading account, your P & L each day can got 100 torniquet that it's pretty normal. Okay, so don't judge a trading strategy based on the how much profit that person has me right.

It doesn't work that way. On the other hand, right some people might judge a trading strategy based on the percentage returns. All right. Let's see, two trading account both attend cage.

One account made a fifty percent return, and yet I don't only make me be, let's say a 10 % return anyway. They owe the strategy that made fifteen percent reason. That's a better trading strategy know there could be because of the risk management may be that particular person who's trading it. He risk fifty percent on his trip and he achieve a one to one reward ratio.

That's how he he's up 50 percent. On the other hand, that guy could be risking 1 % on each trade. He made a 1 to 10 or is reward ratio. He made 10 percent off on his account.

So don't you look at percentage because again percentage doesn't tell you anything. Okay. So really, this short answer is just is that there is no best trading strategy out there. You can really define what is the best trading strategy.

Ultimately, you have to find a strategy that you're comfortable with it resonates with you, and you can trade it consistently. There would be best for you, given your circumstance and number for support resistance. It gets stronger on every test right. So if you read a lot of text books, you read a lot of forums or whatsoever.

You see that you know whenever the price has a part right, the more times its test that the stronger it becomes, and there again is something that I can agree because, based on my trading experience, the more time support is tested within a short period of time. The weaker it becomes because the reason why support holes is because there is buying pressure on there may be. You know, a huge institution wanting to buy a certain amount of order at that price and the more time support is tested right. There order gets thinner and thinner until it's gone and when there's no more order left to support the price and support what happens well, support bricks.

It brings now so think of it. This way, an analogy. Imagine there's a door in front of you, one big wooden door and you have a sledgehammer in your hands and you smash the door three four five times. Let me ask you: does the dog get stronger or does he get weaker well? Clearly, they wouldn't dog would have a hole and eventually is gon na break and it's the same thing as support right.

The more time is being tested within a short period of time, the greater the likelihood it will break, not 100 %, but more often than not, and finally, the last thing number five. If traders will tell you right, oh it's not possible to make money in the markets right, you know, trading isn't keeping forex trading is a scam yeah. I got ta and the reason why they say that is because they have to justify their failures. They fail to make money from the markets and in order not to look stupid to themselves in order to not be, you know, looking like an idiot to themselves, they have to justify and say that it's not possible to make money from trading and then step belief Right to make them feel good about their failure, but here's the thing one person's belief does not mean that it is the truth and you, as a trader, is trying to make it in the market.

Don't let the belief of us a negative person affect you, because that is their belief. It is not the truth. Okay, so don't let the failure of someone else justify your failure. Don't use that as a reason, if you put in the work, if you go all out, you can find success in the market may not be the kind of expectations I know the Lamborghini is the hot chicks.

You know the Gaby's quick schemes. It may not be the line of success that you might be envisioning right, but you would have a skill, a skill that allows you to compound your returns for the rest of your life, and that to me is success. Okay, so don't fall for that mirai way, it's not possible to make money from trading, because that is just that person's belief to justify his failure. Don't let that happen to you so with that said, I have come towards the end of today's episode.

I wish you good luck and good trading I'll talk to you soon. You.