The only asset you have during this COVID-19 lockdown is time. I have decided to use this time to learn a new skill – Trading. This explains the inactivity of this blog as I am busy learning to trade. Despite having read many books and watched many videos on technical analysis, I have not really gone into trading live yet.
Don’t really know why. Maybe it is because of procrastination, fear, risk or uncertainty. But I have made it a point to remove all these roadblocks and get started once and for all.
Now that we have so much idle time at home, there is no better opportunity to learn trading, especially with all the volatility going on in the markets right now.
My rationale for going into trading is not to make quick bucks or get rich, even though I wish I could if that’s possible. It is more of a side hustle, to build up an additional source of income that is consistent and sustainable.
My end goal is to create an additional income funnel and use the profits from trading to deploy it into dividend-yielding assets. The above YouTube video explains how trading income can be used as a cashflow generator to build up your portfolio much faster.
In my current situation, I would be more than happy if I can rake in an extra of $50-$100 every month on average. So my expectations are not high. I am contented with 10% monthly returns for a start. The more important thing is to build up the foundational skillsets of a trader and carry it with me for life.
After some searching, I landed myself with Synapse Trading. This is NOT an affiliate post and I do not get any commissions from any links that you click here. It is just me sharing my personal trading journey and learning process.
Why Synapse Trading?
I got to hear about Synapse Trading a while back when I saw his travel log and background story. The profile of Spencer is pretty impressive as he managed to achieve financial freedom at the age of 27 and made his first million at 28. Because of his success in trading, he has been frequently sought after by many companies for interviews and speaking engagements.
So that kind of inspired me as I thought to myself, wouldn’t it be great to learn a skill that allows you to make money on the go? (*He trades while he travels, hence the term, “the travelling trader”) And since he has already been there, done that, why not just learn directly from the source?
Spencer is also a former professional trader with more than 15 years of experience and has devoured hundreds of trading books to sharpen his edge. Testimonials from all his past students were also very positive and the course fees were affordable compared to other courses in the market. So I decided to take the leap of faith.
The course that I took is an 8-part video series that is conducted online. There are over 20 hours of video tutorials and it is designed for beginners who want to get started in trading. The inside looks something like this.
It is an 8-week roadmap plan and I have completed week 1 and week 2 of the content. Right now I am moving on to the 3rd week which is trading with live money. I will be starting off with only a small capital of $500 as I need to pay off my student loans and save up bullets for investments.
“Speculate with less than 10% of your liquid net worth. Risk less than 1% of your speculative account on a trade. This tends to keep the fluctuations in the trading account small, relative to net worth.”– Ed Seykota
Anyways, I am prepared to lose and the purpose right now is not so much to make profits fast. It is more of building up the process, consistency, habits, tracking my hit rate/risk-reward ratio and just familiarizing myself with the trading world.
Once the foundations are firmly grounded, it is easy to scale up the profits. That is because once the skills are there, the only variable that needs to be changed is the capital size.
“The control of a large force is the same principle as the control of a few men: it is merely a question of dividing up their numbers. Fighting with a large army under your command is nowise different from fighting with a small one: it is merely a question of instituting signs and signals.”– Sun Tzu, The Art of War
What’s so special about this Course?
I have not attended any other forex trading courses before in my life. But what I like most about this course is that it is plain simple. Or rather the complexity of trading and technical analysis is distilled down into simple strategies.
There is hardly any discussions on indicators or complicated mathematical formulas. It is just a blank chart. Pure price action, coupled with simple trendlines and support/resistance zones. That’s all.
This is otherwise known as trading naked forex. There is a book written about it and it was one of the recommended reads. Unfortunately, the library is closed right now. Fortunately, the useful parts of the book have already been incorporated into the videos.
Trading naked forex basically means you are just looking at a clean chart to trade. No indicator tools such as Ichimoku clouds, Bollinger bands, RSI or MACD. At best, it is just some moving average lines and support/resistance lines.
Spencer has written a post about why professional traders prefer to use price action to trade. The three main reasons are clarity, speed and universality. Do read more about it if you are keen.
This was a hard one for me as I have to let go of all my biases and knowledge about indicators in trading.
“In order to taste my cup of water, you must first empty your cup. My friend, drop all of your preconceived and fixed ideas and be neutral. Do you know why this cup is useful? Because it is empty.– Bruce Lee
And so I approached this course with a neutral state of mind.
What Does This Course Teach?
The core content of this course can be summarised into the four different setups you see above. Regardless of whatever assets or timeframe you are looking at, the rules apply for all technical analysis charts. That is the universality advantage of price action trading.
Spencer has spent 15 years to work, back-test and optimize on this 4 proprietary price action strategies, and is still doing so right now in all his personal trades. In fact, if you join the telegram group and daily signals, you will see that all discussions and trades revolve around these 4 setups.
The other advantages of price action are speed & clarity. The setups are easy to understand and it only takes a couple of minutes to analyse a trade.
“Simplicity is complexity resolved”– Constantin Brancusi
While it looks simple, there is much more to it than meet the eyes.
The video series dives in-depth into the mechanics of how each of works, things to watch out for, and why do prices behave the way they do. It is from here that you truly gain a more solid understanding of market behaviours and price action.
There are many case studies and a database of examples for each setup to reinforce your understanding of it. Part of the practice is even to memorise the guidelines of each setup and signals. The ultimate goal is to familiarise yourself with all of them such that you immediately recognise the patterns of any charts.
Additionally, to complete the skillsets of a trader, the video series also covers risk management, trading psychology, traits of good traders, how to place a trade, which broker to use, how many lots to buy, where to put your stop loss, where to take profits and etc.
Also, there is a checklist template for you to evaluate and execute each trade. So this course is really a step-by-step methodology approach and I would say it is pretty comprehensive for a newbie like me.
You just have to maintain the discipline and follow through the weeks which is what I am doing right now. There is also a recommended book for you to read for each week.
Nearing the end of the program, you would have to start making your trades on mobile and familiarise yourself with the platform. The idea here is to train up the process of trading anywhere and everywhere. All you need is just an internet connection. But what if you didn’t bring your laptop? That is the reason for trading on mobile.
Lastly, you will receive daily signals on your phone making it easy to trade anytime and anywhere. There is also a closely-knit community in a private telegram group chat where you can ask Spencer or the other senior traders on any questions or doubts. He makes sure that your questions are answered.
I am looking forward to reaching that level and trade on the go. It would be cool if trading can become my second source of income apart from employment. Now is the perfect chance to learn new things.
Getting Started in Trading
If you are keen to make full use of your COVID-19 lockdown period and acquire some practical lifelong skills that could potentially create an additional source of income for you, here are some useful resources to get started!
- Free Course – Beginner’s Guide to Trading & Technical Analysis
- Free Telegram channel with daily market analysis
- Mentoring Program by Spencer
- Trading Guides & Resources (Updated 2020)
So welcome to TheBabylonians’ Trading Journey. This is the first step of a thousand miles. Next week will be our live firing session. Wish me luck, and may we emerge from this lockdown smarter, stronger, and better! Stay tuned for upcoming posts on this page.