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in the spotlight:Layout 1

16/6/11

10:35

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FX IN THE SPOTLIGHT

The trader transformation:

FROM ‘BEING BROKE’ TO PROFIT Like anyone who has ever traded forex, McLean Van Cleve of Fair Trading Technology had to start somewhere, learning the hard way about taking risks, and losses for that matter. Here Van Cleve shares some words of wisdom on trading currencies for profit. t all began in 2002 when I watched a film entitled the 25th Hour. One of the opening scenes portrays McLean Van Cleve Fair Trading Technology

Within three weeks I had more than tripled my trading account. I was on top of the world. I was going to go from being a broke college student to a millionaire within next 60 days, but then it happened.

trader. Unfortunately that was an illusion that would soon be shattered.

a prop trader from an investment bank waiting for

Within three weeks I had more than tripled my

the NFP numbers to be released. He’s holding a

trading account. I was on top of the world. I was going

$100,000,000 position and when the numbers are

to go from being a broke college student to a

released…he’s right. He’s outsmarted the market. He’s

millionaire within next 60 days, but then it happened.

making money, probably millions by the minute. It’s all

This trade didn’t go my way. Before I knew it, I was

very exciting and glamorous, because that’s what trading

down 50% in equity. I could not bring myself to close

is, right? All glory and dollar signs. I remember

the trade and take the loss. It just HAD to turn

watching this and thinking, “THAT is what I should be

around. I switched timeframes. I added indicators. I did

doing,” and so I embarked on a journey that would soon

just about everything to convince myself this trade was

become my career.

right on the cusp of turning around…but it kept on

I mean, how hard could it be? I did a little research;

going against me. When the dust had settled, my

I even read a book or two. I had a ‘solid’ moving average

account balance was at $14.77. This was going to be

crossover system. The only thing that stood between me

harder than I thought.

and millions was a live trading account. I needed to be

For most people who’ve ever been new traders in the

trading now! I actually chose my first brokerage based

FX market, this is probably a very familiar story. Some

on the time it would take to open up a live account.

people get to this point and decide trading is not for

With the brokerage chosen, I filled out the application

them. Others repeat this process endlessly, not unlike a

and wired in $2,000 of my hard earned money. The

gambling addiction. Then there’s the few that make it.

very second the trading account was funded I placed

But how do you make the transformation and go from

my first trade. I didn’t know if it was the Asian session,

‘donating’ your money to the market to creating a

the London session or the Mars session. All I knew

sustainable income and eventually, wealth?

was that now, in my mind at least, I was officially a

There is no free lunch in the forex market. It will not

30 FX-MM | June/July 2011

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The road to becoming a trader  

The road to becoming a trader may not always be straight, but a road that takes you for the ride of your life. You may end up winning, or lo...

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