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WHAT ARE THE BENEFITS OF INVESTING IN A TRADING COACH?

By Your Trading Mentor, Trading Angel

First of all, what is a trading coach?

A trading coach is a professional who provides guidance, support, and mentorship to traders to help them improve their trading skills, enhance their performance, and achieve their trading goals. A trading coach is typically an experienced trader who has a solid understanding of the financial markets and has achieved consistent profitability in their own trading.

The role of a trading coach can vary depending on the needs and goals of the trader. Some key aspects of a trading coach’s role include:

1. Education and Training: A trading coach provides education and training to traders, helping them understand various trading concepts, strategies, and techniques. They may teach technical analysis, fundamental analysis, risk management, trading psychology, and other relevant topics.

2. Trading Plan Development: A trading coach assists traders in developing a well-defined trading plan. They help traders set clear goals, determine their risk tolerance, select appropriate trading styles, and establish rules for entering and exiting trades. The coach helps traders create a plan that suits their individual needs and trading preferences.

3. Strategy and Technique Guidance: A trading coach provides guidance on trading strategies and techniques. They help traders understand different approaches to trading, analyze charts, interpret indicators, and identify trade setups. They may offer insights into market trends, patterns, and opportunities.

4. Performance Evaluation and Feedback: A trading coach evaluates the trader’s performance by reviewing their trades, analyzing their trading journal, and providing feedback on their strengths and weaknesses. They help traders identify areas for improvement and suggest adjustments to their strategies and techniques.

5. Emotional Support and Psychology: Trading can be psychologically challenging, and a trading coach helps traders manage their emotions and develop a resilient mindset. They provide support during difficult periods, help traders overcome fear and greed, and guide them in maintaining discipline and consistency.

6. Accountability and Motivation: A trading coach holds traders accountable for following their trading plan, risk management rules, and maintaining proper trading discipline. They provide motivation, encouragement, and inspiration to help traders stay focused on their goals.

It’s important to note that a trading coach is not a guarantee of success. Ultimately, the trader is responsible for their own trading decisions and results. However, a trading coach can provide valuable guidance, expertise, and support to help traders navigate the challenges of the market and improve their trading performance.

A trading coach can provide invaluable support and guidance in your journey to becoming a profitable forex trader. Here are some ways a trading coach can help you:

1. Knowledge and Expertise: A trading coach is typically an experienced trader who possesses in-depth knowledge of the forex market. They can share their expertise, insights, and strategies to help you understand market dynamics, technical analysis, fundamental analysis, risk management, and other essential concepts. This saves you time and effort in researching and learning on your own.

2. Personalized Guidance: A trading coach can provide personalized guidance tailored to your specific needs and goals. They can assess your strengths, weaknesses, and trading style to help you develop a trading plan that suits your personality and risk tolerance. They can also help you identify and overcome any psychological or emotional barriers that may be affecting your trading performance.

3. Skill Development: A trading coach can assist you in developing and honing your trading skills. They can teach you effective trading strategies, help you understand chart patterns and indicators, and provide feedback on your trade setups and execution. They may also provide real-time analysis and market commentary to enhance your decision-making abilities.

4. Accountability and Discipline: One of the challenges for many traders is maintaining discipline and accountability. A trading coach can hold you accountable for following your trading plan, risk management rules, and maintaining proper trading discipline. They can provide objective feedback, review your trades, and help you stay on track even during challenging market conditions.

5. Emotional Support and Confidence Building: Trading can be emotionally challenging, especially when facing losses or dealing with uncertainty. A trading coach can provide emotional support, help you manage your emotions, and develop a resilient mindset. They can guide you in overcoming fear, greed, or impulsive behaviour, and help you build confidence in your trading abilities.

6. Performance Evaluation and Improvement: A trading coach can analyse your trading performance, review your trading journal, and identify areas for improvement. They can help you evaluate your strengths and weaknesses, identify patterns in your trades, and suggest adjustments to your strategies and techniques. This continuous evaluation and feedback process can accelerate your learning curve and help you refine your trading approach.

7. Motivation and Inspiration: Trading can sometimes be a solitary endeavour, and it’s easy to lose motivation or become discouraged during challenging periods. A trading coach can provide motivation, inspiration, and a supportive environment. They can share their own experiences, share success stories, and help you stay focused on your long-term goals.

It’s important to note that finding a reputable and qualified trading coach is crucial. Look for someone with a proven track record, positive testimonials or references, and a coaching style that aligns with your learning preferences and goals. A good trading coach can significantly accelerate your progress and increase your chances of becoming a profitable forex trader.

So, is it worth it to invest in a trading coach?

Deciding whether it’s worth investing in a trading coach depends on several factors, including your current level of trading knowledge and experience, your financial resources, and your personal learning style. Here are some points to consider:

1. Knowledge and Experience: If you’re new to trading or have limited experience, a trading coach can provide valuable guidance and help you navigate the complexities of the financial markets. They can teach you trading strategies, risk management techniques, and help you understand market dynamics. A coach with expertise in your preferred trading style or asset class can accelerate your learning curve and potentially save you from making costly mistakes.

2. Accountability and Discipline: One of the benefits of having a trading coach is the added level of accountability and discipline they can provide. A coach can help keep you focused, motivated, and consistent in your trading activities. They can also provide feedback and help you identify areas for improvement.

3. Mentoring and Support: Trading can be a solitary activity, and having a coach who acts as a mentor and provides emotional support can be invaluable. They can help you navigate the psychological challenges of trading, such as managing emotions, dealing with losses, and staying disciplined during market fluctuations.

4. Cost-Benefit Analysis: Consider the cost of hiring a trading coach and weigh it against the potential benefits. It’s important to ensure that the potential returns from improved trading performance outweigh the investment in coaching fees. Evaluate the track record and reputation of the coach you’re considering to ensure they have a proven record of success and can provide value for your money.

5. Learning Style: Some individuals prefer a structured learning environment with personalized guidance, while others may be more inclined to self-study using online resources, books, or trading courses. Assess your preferred learning style and consider whether working with a trading coach aligns with your needs and preferences.

Ultimately, the decision to invest in a trading coach depends on your personal circumstances and goals. If you believe that a coach can provide the knowledge, guidance, and support you need to improve your trading skills, it may be worth considering. However, it’s essential to do thorough research, seek recommendations, and carefully evaluate the credentials and reputation of potential coaches before making a decision.

Where can I find a good trading coach in the Uk?

To find a good trading coach in the UK, you can explore the following resources and platforms:

1. Trading Education Websites: Many online trading education platforms offer coaching services. Some popular ones include TradingView, Investopedia, and DailyFX. These platforms often have directories of experienced traders and coaches that you can contact.

2. Trading Communities and Forums: Engaging with trading communities and forums can help you connect with experienced traders who may offer coaching services or recommend reputable coaches. Websites like Forex Factory, Trade2Win, and BabyPips have active discussion forums where you can seek recommendations and advice.

3. Professional Trading Associations: Look for professional trading associations in the UK, such as the Society of Technical Analysts (STA) or the Chartered Institute for Securities and Investment (CISI). These organizations may have directories of accredited professionals, including trading coaches.

4. Social Media: Utilize social media platforms like LinkedIn, Twitter, and Facebook to search for trading coaches in the UK. Many coaches maintain a social media presence where they share insights, educational content, and offer coaching services. Engage with their content, read reviews, and reach out to those who align with your trading goals.

5. Referrals and Recommendations: Ask fellow traders, friends, or colleagues who are involved in trading if they can recommend a reliable trading coach. Personal referrals can be an excellent way to find trustworthy coaches who have a proven track record.

When selecting a trading coach, consider factors such as their experience, expertise in your preferred trading style or asset class, coaching methodology, track record, and reputation. It’s also essential to have a clear understanding of their coaching fees, structure, and availability.

Remember to conduct thorough research, check reviews or testimonials, and have initial discussions or interviews with potential coaches to assess their compatibility with your learning style and trading goals.

Until next time, Happy Trading!

Love From, Your Trading Mentor,

Trading Angel x

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THE STAGES TO BECOMING A PROFITABLE TRADER

By Your Trading Mentor, Trading Angel

Becoming a profitable full-time trader is a journey that requires time, effort, discipline, and continuous learning. While the path may vary for each individual, here are some common stages that a beginner trader can expect to go through:

1. Education and Knowledge Building: The first stage involves acquiring a solid understanding of the financial markets, trading principles, and basic concepts such as technical analysis, fundamental analysis, risk management, and trading psychology. This can be achieved through self-study, reading books, attending courses, or participating in online trading communities.

2. Demo Trading: Once you have a foundational knowledge, the next stage is to practice trading in a risk-free environment. Most trading platforms offer demo accounts where you can simulate real trades without using real money. This stage helps you gain practical experience, test different strategies, and understand how markets behave.

3. Developing a Trading Plan: A successful trader needs a well-defined trading plan. This includes setting clear goals, determining risk tolerance, selecting a trading style (such as day trading, swing trading, or position trading), and establishing rules for entering and exiting trades. Your trading plan should also include risk management strategies and guidelines for managing emotions during trading.

4. Live Trading with Small Capital: Once you have practiced enough on a demo account, it’s time to start trading with real money. However, it’s advisable to initially start with a small amount of capital that you can afford to lose. This stage helps you transition from simulated trading to real trading, where emotions and psychology come into play.

5. Continuous Learning and Adaptation: Trading is an ever-evolving field, so it’s crucial to stay updated with market trends, economic news, and new trading strategies. Continuously educate yourself, read trading books, follow reputable traders and analysts, and attend trading seminars or webinars to enhance your knowledge and skills.

6. Building Consistency and Discipline: Consistency is key to long-term profitability. As you gain experience, focus on developing consistent trading habits and sticking to your trading plan. Avoid impulsive decisions and emotional trading. Maintain discipline in following your strategies, risk management rules, and trade execution.

7. Risk Management and Capital Preservation: Managing risk is crucial for long-term success. Implement risk management techniques such as setting stop-loss orders, using proper position sizing, and diversifying your trades. Protecting your capital should be a priority over making profits.

8. Continuous Evaluation and Improvement: Regularly review your trading performance, keep a trading journal to analyse your trades, and identify both strengths and weaknesses in your strategies. Learn from your mistakes and make necessary adjustments to improve your trading approach.

9. Scaling Up: Once you have achieved consistent profitability and have developed confidence in your trading skills, you may consider increasing your trading capital gradually. However, it’s important to do this cautiously and avoid overtrading or taking excessive risks.

10. Full-Time Trading: Transitioning to full-time trading should only be considered when you have consistently generated profits over an extended period, have built sufficient trading capital, and have a solid understanding of the markets. It’s advisable to have a financial cushion to withstand potential drawdowns or losses during the transition.

Remember, becoming a profitable full-time trader takes time and requires patience, perseverance, and continuous learning. It’s important to manage your expectations, start small, and gradually progress as you gain experience and confidence in your trading abilities.

Until, next time, Happy Trading!

Love from, Your Trading Mentor,

Trading Angel x

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The Four Stages Of The Crypto Market Cycle

–          By Your Trading Mentor, Trading Angel

KNOWLEDGE IS POWER

Crypto currency is incredibly volatile which can be great if you are a crypto trader who is able to buy low and sell high, but while that concept may sound simple in theory it proves to be somewhat more difficult in reality. When you attempt to buy low, what kicks in is some kind of fear that actually the hype is over for good, it was just a bubble and any money invested will be lost for good. Then the bull market takes off without you, and you don’t actually have any money to put in. By the time you’ve found some extra cash you’re happy to lose, in theory, you invest in crypto and then the biggest crash of all time appears to follow. How did it go up non stop all year long and the very second/minute/hour you invested, the markets crashed and never stopped?

Well, the crypto currency  markets follow a cycle which has four phases and if you understand how the cycle works and what it looks like then you can anticipate when the big moves up and down are likely to happen. This can be really useful as knowing which phase you are in not only can give you a better idea as to whether you want to be scaling in or scaling out but it can also help you time your moves so that you are prepared and ready to act to so the market doesn’t run off without you.

So in this blog post I’m going to talk you through the crypto market cycle and the four phases within it. I’ll explain the characteristics of each of the four phases to give you an idea of what you want to be looking for, and I will also be letting you know what phase we are in now and therefore how you can be prepared for something pretty big which is approaching next year (spoiler alert, it’s the bitcoin halving!). I will also be sharing with you my personal investment strategy for bitcoin, what I’m doing currently and what I plan to do over the next couple of years

Before we get into this I’d like to make this disclaimer: cryptocurrency is very risky and volatile. This information is based on past data and is no guarantee that just because this has been the previous cycle the markets have followed, that they will continue to move in this way. Trading should only be done with surplus money which you can afford to lose after all necessary expenses are been paid. It is certainly not a get rich quick scheme and should never be done with borrowed money.

So the cypto market cycle typically last for four years and has four phases within it, with each phase lasting about a year. The bull run tends to be triggered by the bitcoin halving. The bitcoin halving is one of the key moments for crypto traders. The next bitcoin halving is due to happen in April 2024. The halving means that the reward for mining is cut in half. In the next bitcoin halving the block reward will fall to 3.125, eventually the impact of the halving will erode the value to zero.

Bitcoins underlying technology, blockchain, consists of a network of computers that run Bitcoin’s software and contain a partial or complete history of transactions occurring on it’s network. Each full node is responsible for approving or rejecting a transaction in Bitcoin’s network. The node conducts a series of checks to ensure the transaction is valid. Each transaction is approved individually, this only occurs after the transactions contained in the blocks are approved. After approval, the transaction is appended to the existing blockchain and broadcast to other nodes. Adding more nodes to the blockchain increases its stability and security.

THE FOUR PHASES

STEALTH PHASE or sometimes called the accumulation phase

AWARENESS PHASE

MANIA PHASE

MARK DOWN PHASE

STEALTH PHASE

This is the start of the crypto market cycle. There isn’t a lot of action happening here. The moves are very small and the market moves very sideways. Not too exciting.

AWARENESS PHASE

There is a bit more movement in this phase, we might see a small move up and maybe a bear trap. A bear trap in trading terms is when the market is in an uptrend and then we get a sudden and sharp move down. It might break support and look like the market is going to start moving down. Those who were quick to sell end up getting stuck in a weak trade as the market then makes a swift move back up.

MANIA PHASE

This is where all the excitement happens. The mania phase is where crypto gets a lot of media attention and there is a lot of enthusiasm from the bulls. We get a very steep and sharp move up.

MARK DOWN PHASE

This is the bear market which follows the bull market and is pretty much just a sharp move down.

WHICH PHASE ARE WE IN NOW?

So now we have had a look at how these phases look lets go a bit deeper into when they take place. So the bitcoin halving is part of the second phase, the awareness phase, as this is what triggers the bull run. And we know that the bitcoin halving is happening next year in April 2024 which means that right now in 2023, we are currently in phase 1, the stealth phase. So if you are a crypto trading enthusiast this probably makes a lot of sense to you as bitcoin is very static at the moment and there really isn’t much movement at all. Let’s just call a spade a bloody big shovel and say its been boring as being a crypto trader in 2023. BUT having said that we are actually at a really interesting time in the crypto market cycle if you want to put a positive spin on things. If the bitcoin halving is anything like previous years it could present quite a good opportunity to start scaling in. I also think it’s really helpful to know so that you can start planning ahead and put money aside and plan your trade entry and exit strategies. So here is how I am planning on approaching the next bitcoin halving including my scaling in strategy.

I’ve started putting money aside for next year as I don’t want to get to April 2024 and realise I don’t actually have anything spare to get involved with should we start to see the bitcoin bull run being triggered like it has on previous cycles. And again, I will make the point about bitcoin and crypto currency being extremely volatile and unpredictable, so the last thing I want to do is to start panic accumulating money to trade with if I start to see the market moving up. When you trade with money you can’t necessarily afford to lose, some weird trading psychology kicks in where you start second guessing everything and this is exactly how traders end up get stuck in that bear trap we talked about earlier.

Based on past data and the crypto market cycle I have described above, each phase lasts approximately a year which means I have plenty of time for my full scaling in and scaling out strategy. I can use 2023 to accumulate money I would like to start investing next year should I see things going to plan. If I start to see opportunities to scale in early 2024 I will use the accumulated cash to scale in slowly at this point and to monitor the market to see if it continues to move up and if we do get those big moves which we had on the previous bitcoin halving then I will continue to scale in for the year.

When you start scaling out you’ll want to consider the capital gains tax regulations in the country you’re in. In the UK where Trading Angel is based you have to pay 20% capital gains tax on any profits which means you can minus the amount you deposited from the total you are withdrawing and that is the taxable amount. You are also allowed £6,000 as a personal allowance each year before you need to pay CGT so in theory you could withdraw just £6,000 each tax year if you wanted to scale out slowly and reduce the amount you pay. Just be mindful that you might need to take more out before the bear market so if this goes over your annual allowance, overall its probably better to pay more tax but have a larger withdrawal rather then lose your profits to a crash! As my dad always said to me, having a huge tax problem is a good problem to have!

Happy Trading,

Love from,

Your trading mentor, Trading Angel x 

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