in the spotlight:Layout 1
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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Published on Jul 11, 2011
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...