It seems like everyone wants to be a trader these days. But it’s not like Gordon Gekko in 2020, and you don’t have to work on Wall Street either. These days, like so many things, you can do it online, and anyone can do it. Or, at least, anyone can try.
Of course, it’s not all that easy. Whether it’s stocks and shares of foreign currency, the idea behind trading successfully is fairly straight forward. You buy at one price and sell at a profit as the stock price goes up, or the exchange rate becomes more favorable. But that’s the trick, knowing what is likely to go up or down. And it’s complicated. As soon as you look into trading, you’re bombarded with acronyms and jargon. What you need is a mentor.
Justin Mueller just might be that mentor. The 23-year-old jumped into the Forex market five years ago when he was just 18. He was an instant success. Well, not exactly. You see, trading in foreign currencies isn’t as easy as that; you don’t get overnight success, and it’s never like a lottery win. Mueller worked hard to develop strategies that enabled him to win rather than lose, and it took him years to do so.
To be a successful trader, you need patience, intelligence, and self-control, but you also need knowledge and experience. Those qualities can be hard to come by when you’re looking for legitimate Forex traders to learn from. If you’ve tried and failed before, after being taken in by the mansions and supercars Forex traders show off on social media, don’t worry. The same happened to Mueller, and he still managed to become a full-time trader.
Three years in and Mueller was still searching for those big profits, the trades that really made a difference to his bank account. He took time out to analyze exactly where he was winning and losing. He discovered that he was actually a pretty good trader, his market predictions accurate more often than not, but he wasn’t turning that skill into profit.
Then, he had a light-bulb moment: risk management. “It was truly a moment of enlightenment,” Mueller says. “I didn’t know how to properly manage the money I was trading,” he explains, “I would deposit $1k and lose it within a week. Now repeat that for three years.” He worked out ways of lowering the risk tolerance and, boom, money began to roll in.
The second revelation that helped him on his way was realizing the help that divergence trading could give him. Noticing a divergence between price and an indicator can be key in leveraging better trades. When he was getting into divergence, the final piece of the jigsaw was put in place: back testing.
Being able to watch how markets change and develop is a priceless learning tool and has the benefit of costing nothing. Mueller spent a single day back testing so that he understood what divergence was all about. He reckons that one day saved him a whole year of his life. As he says, “I was able to go live with the strategy right away within 24 hours of learning it. Where else can you do something like this?”
Mueller was so knocked out by how much back testing helped that he started his own Forex simulation company, ForexSimulator.com. It offers a software package that allows you to back test your strategies for years if you want to. It is a great tool that has been broadened by adding the ability to back test your EA (expert advisor program) simply and intuitively.
Forex Simulator is always looking to improve its product and is about to make it 100% web-based, offering access from any device, anywhere. The company will also be making customer service a 24/7 operation, so that, no matter when, the clients will be able to message with a problem and get a solution.
Along with Forex Simulator, Mueller has a blog called PipsAhoy, where he shares his understanding of Forex trading and has recently set up a YouTube channel for the same purpose. He wants to make it easier for others than it was for him to decipher the complex world of foreign currency trading, and save them from the same mistakes he made.