GREG MICHALOWSKI COPYRIGHT “Having the Mindset of a Forex Trader” FXStreet Webinar February 19 th 2013 Greg Michalowski FXDD Chief Currency Analyst Twitter: gregmikefx

GREG MICHALOWSKI COPYRIGHT DISCLAIMER All news, opinions, research, data, or other information contained within this presentation are provided as general market commentary and do not constitute investment advice. FXDD expressly disclaims any liability for any lost principal or profits without limitation which may arise directly or indirectly from the use of or reliance on such information. ADVISORY WARNING: FXDD provides sources of economic and market information during this broadcast as an educational service to its clients and prospects. The opinions or recommendations expressed during the broadcast are not intended as investment advice and are based on data reasonably believed to be accurate at the time of publication. Clients and prospects are advised to carefully consider the opinions and analysis offered in the context of your individual analysis and decision making. None of the statements of opinions or recommendations are to be considered as constituting a track record. Past performance is no guarantee of futures results and FXDD specifically advises clients and prospects to carefully review all claims and representations made during the broadcast in light of your particular analysis, trading style and objectives. All news, opinions, research, data, or other information contained within this website is provided as general market commentary and does not constitute investment or trading advice. FXDD expressly disclaims any liability for any lost principal or profits without limitation which may arise directly or indirectly from the use of or reliance on such information. As with all such advisory services, past results are never a guarantee of future results.

COPYRIGHT Who thinks trading is easy? GREG MICHALOWSKI Who thinks it is one of the hardest things they have ever done?

COPYRIGHT Trading Forex is not easy… GREG MICHALOWSKI

COPYRIGHT …but a lot of things in life are not easy Hitting a Golf Ball straight/consistently Making the NFL Playoffs (37.5%). Winning the Super Bowl (3.125%) Owning a restaurant after 3 years (40%) Getting into Harvard (6.25% of 2010 applicants) Graduate from college (27%) Getting a Masters degree (10%) Staying Married (40% divorce in the US) Raising Children Saving money Getting anything done in Washington (0%) GREG MICHALOWSKI

COPYRIGHT GREG MICHALOWSKI Difficulty has never stopped me “When the going gets tough….” …the tough GET GOING”

COPYRIGHT GREG MICHALOWSKI In her book, Mindset, Carol Dweck wrote about how people tend to have a: Fixed Mindset, or a Growth Mindset Traders need to have a Growth Mindset

COPYRIGHT GREG MICHALOWSKI How do you “GET GOING” in trading?

COPYRIGHT GREG MICHALOWSKI You need to develop and understand the “Growth Mindset” of a trader. What are the character traits of a trader? What are they thinking and how do they act? How do you “GET GOING” in trading?

COPYRIGHT GREG MICHALOWSKI Growth Mindset of a Forex Trader Disciplined but Aggressive too A Loner but a Crowd Follower too A Winner but a Failure too An Anticipator of the future but with a Focus on the past and present too A Devoted Lover but a Swinging Bachelor too A Fear Conqueror but a Greedy Bastard too A Risk Taker but a Risk Avoider too

COPYRIGHT GREG MICHALOWSKI A Myers Briggs personality classification for a Forex Trader would be an: Introverted Extrovert, who uses Senses and INtuition in his Thinking and Feeling while using Judgment and Perception in evaluating trading opportunities. That makes forex traders a “I-E-S-N-T-F-J-P”

COPYRIGHT GREG MICHALOWSKI Growth Mindset of a Forex Trader Disciplined but Aggressive too A Loner but a Crowd Follower too A Winner but a Loser too An Anticipator of the future but with a Focus on the past and present too A Devoted Lover but a Swinging Bachelor too A Fear Conqueror but a Greedy Bastard too A Risk Taker but a Risk Avoider too

COPYRIGHT GREG MICHALOWSKI Disciplined but Aggressive too Disciplined: Forex Traders need to focus on being disciplined to the point of being boring. The typical successful forex trader will not wander far from what is normal for them. If “the market” is not behaving correctly, they will choose to not trade versus forcing an undisciplined trade.

COPYRIGHT GREG MICHALOWSKI Disciplined but Aggressive too Aggressiveness: Don’t confuse boring with a lack of aggression. Forex Traders whose disciplined method for trading is signaling a trading opportunity, will aggressively - and confidently - execute the trade with little fear.

COPYRIGHT GREG MICHALOWSKI Growth Mindset of a Forex Trader Disciplined, but Aggressive too A Loner but a Crowd Follower too A Winner but a Loser too An Anticipator of the future but with a focus on the past and present too A Devoted Lover but a Swinging Bachelor too A Fear Conqueror but a Greedy Bastard too A Risk Taker but a Risk Avoider too

COPYRIGHT GREG MICHALOWSKI Loner but a Crowd Follower too Loner: Trading is a lonely endeavor. Not only do most traders sit in an office by themselves, but they - and only they - “own” each and every buy and sell decision they make. Traders need to conquer the mindset of being a loner.

COPYRIGHT GREG MICHALOWSKI Loner but a Crowd Follower too Crowd Follower: Trading decisions may be individually “owned” and are the full responsibility of the trader, but traders who understand the mindset that they need follow the crowd at the right levels, benefit more from trends. Since retail traders cannot move “the market” themselves, they are at the mercy of those who can. Applying technical tools defines the bullish/bearish bias of the crowd. Success will come by having the mindset to follow the crowd.

COPYRIGHT GREG MICHALOWSKI Growth Mindset of a Forex Trader Disciplined but Aggressive too A Loner but a Crowd Follower too A Winner but a Loser too An Anticipator of the future but with a Focus on the past and present too A Devoted Lover but a Swinging Bachelor too A Fear Conqueror but a Greedy Bastard too A Risk Taker but a Risk Avoider too

COPYRIGHT GREG MICHALOWSKI A Winner but a Loser too Winner: Forex Traders need to have a mindset that you need to win to survive. Winning should make traders feel good. There should be a feeling of accomplishment. However, winning is always a result of “the market” agreeing with your trade. Be humble and thankful rather than boastful. Your mindset will be more business-like. Winners also have a mindset of staying with their profitable trades longer.

COPYRIGHT GREG MICHALOWSKI A Winner but a Loser too Loser: Traders will not always win. They will fail, and fail more often then at any time in their lives. However, like winning, losing is because “the market” did not agree with what you thought would happen. It is not the traders fault. Traders who have a mindset of accept losses and accepting losses more quickly, will save trading capital and stay in the game longer.

COPYRIGHT GREG MICHALOWSKI Growth Mindset of a Forex Trader Disciplined but Aggressive too A Loner but a Crowd Follower too A Winner but a Loser too An Anticipator of the future but with a Focus on the past and present too A Devoted Lover but a Swinging Bachelor too A Fear Conqueror but a Greedy Bastard too A Risk Taker but a Risk Avoider too

COPYRIGHT GREG MICHALOWSKI An Anticipator of the future but with a Focus on the past and present too Anticipator: Traders need to think about anticipating what may happen next by following the clues the market provides. Traders who can anticipate a trend before, or while it is happening, will enjoy the most success. See the future before it happens by anticipating.

COPYRIGHT GREG MICHALOWSKI An Anticipator of the future but with a Focus on the past and present too Focus on the past and present: The past and present is where the traders vision is the best. It gives traders the ability to define and limit risk. The anticipated reward will come if “the market” agrees. It is easier to see the past and present. Focus on it and let the anticipated future take care of itself.

COPYRIGHT GREG MICHALOWSKI Growth Mindset of a Forex Trader Disciplined but Aggressive too A Loner but a Crowd Follower too A Winner but a Loser too An Anticipator of the future but with a Focus on the past and present too A Devoted Lover but a Swinging Bachelor too A Fear Conqueror but a Greedy Bastard too A Risk Taker but a Risk Avoider too

COPYRIGHT GREG MICHALOWSKI A Devoted Lover but a Swinging Bachelor too Devoted Lover: Trading Trends require being a Devoted Lover to the position. Without loving the position, the trade will likely be closed before the trend is complete. Traders who focus on trending markets and being a devoted lover to the position, catch more trends and stay on more trends. Trends are where the most money is made in trading.

COPYRIGHT GREG MICHALOWSKI A Devoted Lover but a Swinging Bachelor too Swinging Bachelor: There are markets that require “falling in like” with the trade rather than “falling in love” with it. During this type of market, the trader swings from the long and the short side because the market is more non- trending. Traders who think about the type of market – trending or non-trending – can more clearly understand whether to love or like their position.

COPYRIGHT GREG MICHALOWSKI Growth Mindset of a Forex Trader Disciplined but Aggressive too A Loner but a Crowd Follower too A Winner but a Loser too An Anticipator of the future but with a Focus on the past and present too A Devoted Lover but a Swinging Bachelor too A Fear Conqueror but a Greedy Bastard too A Risk Taker but a Risk Avoider too

COPYRIGHT GREG MICHALOWSKI A Fear Conqueror but a Greedy Bastard too A Fear Conqueror: Traders must conquer Fear. Fear is a traders worst enemy. It will make traders do things that they normally would not do. Traders who strive to conquer fear in a proactive way, think more clearly during trades, are more disciplined, and are in a position to trade more trends.

COPYRIGHT GREG MICHALOWSKI A Fear Conqueror but a Greedy Bastard too A Greedy Bastard: Bulls and Bears make money but Pigs get slaughtered. Right? WRONG! If you take this attitude you will never stay on a trend and have your account balance get big and fat Traders who have good trade location, need to be a Greedy and Selfish Bastard at times. Doing so leads could lead to larger trending profits. Trends are where the most money is made by traders. WARNING: Don’t be greedy with a losing position/trade. Only winners.

COPYRIGHT GREG MICHALOWSKI Growth Mindset of a Forex Trader Disciplined but Aggressive too A Loner but a Crowd Follower too A Winner but a Loser too An Anticipator of the future but with a Focus on the past and present too A Devoted Lover but a Swinging Bachelor too A Fear Conqueror but a Greedy Bastard too A Risk Taker but a Risk Avoider too

COPYRIGHT GREG MICHALOWSKI A Risk Taker but a Risk Avoider too A Risk Taker: Traders have to be able to take on risk. However, risk should have it’s limits. Traders who focus on Defining Risk and Limiting Risk, are smart Risk Takers who are managing their businesses bottom line. Trading Losses are expenses to a forex trader’s business. If risk is not defined and limited, the losses/expenses can be unlimited. Remember this mindset.

COPYRIGHT GREG MICHALOWSKI A Risk Taker but a Risk Avoider too A Risk Avoider: Market Risk, Event Risk and Liquidity Risk are the three main risk ingredients. Market Risk is always prevalent in the forex market. Event Risk and Liquidity Risk can be avoided most times. Traders should look to avoid instances where Event and Liquidity risk is too great. Traders should also consider not trading when markets are choppy and not trading “normally”. There will always be another trade where risk is less.

COPYRIGHT GREG MICHALOWSKI Growth Mindset of a Forex Trader Disciplined but Aggressive too A Loner but a Crowd Follower too A Winner but a Failure too An Anticipator of the future but with a Focus on the past and present too A Devoted Lover but a Swinging Bachelor too A Fear Conqueror but a Greedy Bastard too A Risk Taker but a Risk Avoider too

COPYRIGHT GREG MICHALOWSKI Twitter: gregmikefx Daily at Thank you!