## Piece for Peace

One day a watchmaker asks to a watch, that he is working on, “hi watch, could you tick at least 31,536,000 times in a year? “.

“WHAT???” the watch freaks out, “31,536,000 times? How is it possible for me to tick that many? I’m going to broke into pieces in no time”.

“86,400 times with this tiny hour hands and parts?!” the watch replies.
“Could you do 3,600 ticks in an hour then?” asks the watchmaker patiently.
“3,600 in an hour? Still kind a lot for a small piece like me” answers the watch.
“If I ask you to do 1 tick for every second, could you do that?” the watchmaker asks again.
“One tick for every second? That’s easy” answers the watch.

After the watchmaker finished the tiny watch, it starts ticking every second. From that point, the tiny watch does 3,600 ticks in an hour, and does 86,400 ticks in a day, and makes 31,536,000 ticks in a year….. EASILY.

Sometimes we set an irrational target that looks so huge and places us under stress. For example, I have to make \$5,000 in a week or I need to grow my investment 10% in a month. It burdens us psychologically , even before we start trading. It is not a good starting point. Rather then set a ‘huge’ target, it is better to set a rational target. Rational target is different for every person. Chop your target into smaller piece to reduce your stress level.
This is how I set my target. How much I need to support my daily lifestyle, chop it into smaller piece. Then, I work on how I set up my next trade and how big the risk I can carry. Trading is business, so I have to prepare for the worst. However, I also want to get the most out of it too. With good plan, I can prepare my trade without being stress out. Below is an example, please adjust to your own comfortable conditions.
Let’s say my wage is \$9/hour. That is equal to \$1440/month. Then, \$1440 divided by 20 days (open market) in a month, it will give \$72/day. I, then, look for good setups and trade 3 or 4 pairs per day. With standard account (1 pip = \$1) and starting lots size of 0.1, I need to gain 72 pips a day. It means per pair, I aim for 20 pips, which is a reasonable range for a pair to move in a day. I can increase the potential income by placing higher lots size or increasing the trading frequency. By breaking down my target into smaller pieces, my goal seems achievable and realistic and it gives peace in my mind.
Start trading with a good plan, enjoy it (no matter profit or loss), learn from mistakes, watch market behavior, and repeat the same steps each and every day. That is how I enjoy my trading days. Happy trading.

## Taking Risks

There is a quote that I like from an old movie, Point Break:

“… fear causes hesitation. And hesitation will cause your worst fears to come true. So it’s simple: You project strength to avoid conflict.” — Bodhi (Point Break, 1991).

We all know that the market is driven by fear and greed. The biggest influence in trading is emotion. I also experienced fear until now. Every time I place a position in the market, negative thoughts pop up:
“What if the market never hits my TAKE PROFIT?”
“What if the market hits my STOP LOSS first before my TAKE PROFIT price?”
“What if the market is going nowhere / sideways? I have to pay the swap rate”
“What if the market suddenly becomes highly volatile against my position?”
“What if my profit never overcomes my loss? I am wasting my time and effort”
and so on and so forth.

If I listen to all those negative thoughts, I am going nowhere. Not only would I never trade, but I would also never do anything in my life, because there is risk in everything.

Shawn explains this idea here:

Therefore, I need to find the way to manage risks. I do research prior trading with real money, plan my trades, follow my trading rules, and re-evaluate my trades. I also continue to learn from others to improve my trading skills. By doing those steps repeatedly, I reduce my fear and find my own trading style with risks that I feel comfortable to take.

## Bee characteristics and the Apiary Fund.

The Apiary Fund model is based on the characteristics of an apiary which is beehive where not just one bee but a whole community of bees work together to manage the hive. Just like a beehive, the Apiary Fund (the beehive) grows their capital (the honey) with the help from their traders (the bees).

The Apiary Fund offers an online trader development program with the objective of helping people learn how to effectively manage investment money. The challenge for most people is that in order to master the art and skill of money management, you have to manage real money in real-life markets and most people either don’t have the knowledge or capital to endure the learning curve. The Apiary Fund solves this problem by providing their students with real money from the company and gives them the opportunity to share in the trading profits as the learn. In the same way a hive supports the bee, the Apiary Fund supports its traders by giving them the knowledge and capital they need to work through the learning process.

In the same way the Apiary Fund shares characteristics with the beehive, our associates share certain characteristics with the bee. Here are few of the characteristics our successful traders share:

Work Ethic
Bee’s are busy. Bee’s buzz around all day long sometimes travelling up to three miles to find a single drop of nectar to bring back to the hive. Successful traders must have a solid work ethic in order to learn how to make money in the market. The good news, if you’ve ever enjoyed the sweet taste of honey, you’ll know the work has great rewards in the end. And a good money manager would agree!

Honey bees are very adaptable. This is an important skill that every fund manager must have. The financial markets are always changing. There is no one “magic” strategy to profit from the market. A fund manager needs to be able to adjust his / her trading strategies, in order to survive in the market.

Responsiveness
In winter, there is much less work to be done and the bees slow down. Similar to the bees, the financial markets also have seasonal cycles. During holiday seasons, like Christmas or New Year, the trading volume is very low. It is not advisable to trade during these seasons, as a trader may be caught in the market and could not exit with profit.

Conservative
As known, food source of bees is nectar, which is not possible to be found during winter. For this reason, they combine the nectar collected in summer time, produce honey, and store it for winter. This shows why money management is vital in trading. The Apiary Fund teaches money management at the beginning of its program. One of the Apiary Fund’s policies is to stop trading at 2% daily loss. The purposes are to protect capital and keep traders psychology intact. The first important thing for fund managers to do is to protect their capital before they make profit.

Remember “keep your ‘honey’ to live longer through the hard time” the coming winter months.

Source :http://en.wikipedia.org/wiki/Bee

## Keeping a Positive Perspective

The Apiary Fund has a goal.  We want every associate who joins our community to become a consistent and profitable trader.  The road our associates travel is marked with several milestones along the way.  Sometime is easy to lose the perspective of progress along the way.

I am reminded of a story about two boys who were digging a hole in front of their home. As they were digging, one of boys came up with an idea.

“What if we could dig a hole all the way through the earth and come out the other side?”

After some discussion, they decided to give it a try and started shoveling with great earnest.

Meanwhile, a few of the neighbor kids noticed the hole they were digging and, out of curiosity, came over to see what was going on.

“What are you doing?” asked one of the neighborhood kids.

“We’re going to dig a hole all the way through the Earth!” answered both of the boys excitedly.

The neighbor kids began to laugh and told the boys that digging all the way through the Earth was impossible. The boys were clearly disappointed with the lack of support from their peers.

However, after a minute of silence and reflection, excitement returned to the eyes of one of the boys and he picked up a jar full of spiders, worms, and insects.   The boy removed the lid and showed the contents of the jar to the scoffing kids, “Well, maybe we can and maybe we can’t, but even if we can’t, you should see some of the cool stuff we’re finding on the way!”

As you work and toil in pursuit of the Apiary Fund goals, there are three lessons we can learn from the boys who tried digging through the earth:

Never underrate the value of your progress.  Reaching the goal is not the ultimate measure of success.  There is great success in the progress.  There is great satisfaction in the milestones.  There is great joy in the journey.  Here is one of my favorite quotes:

“Life is like an old time rail journey…delays…sidetracks, smoke, dust, cinders and jolts, interspersed only occasionally by beautiful vistas and thrilling burst of speed. The trick is to thank the Lord for letting you have the ride.” (Gordon B. Hinckley, 1910-2008)

Don’t surrender to negativity.  No matter what progress you’ve made in your goal, not everyone will see the full vision of your success. But you don’t have to surrender to their negativity.

Pick up treasures along the way. It’s important to remember as you pursue your goals that you can pick up a lot of “cool” things in the course of your journey.  I remember wishing I had a mentor who could take me under his wing and show me everything I needed to know to become a successful trader.  The fact is, I had many mentors and they all gave me treasures of wisdom that has benefited me in great measure throughout my life.

Learning to trade is a journey – an old rail journey – full of bumps and jolts and dust and smoke.  The unpleasantness of the journey is also part of the marvel.  It’s part of what makes the journey unique.  In fact, it only helps elevate the magnificence of the success.  Sure, others may scoff and poke fun, but successful traders look beyond the naysayers and keep a positive perspective.

Author: Shawn Lucas |

## Three Stop Loss Rules for Every Trader

Stop losses are an essential part of any risk management system because they help traders resist trading on emotions. Whenever you open a trade, you should always set a stop loss. If you stick to your plan and don’t move them, you’ll find you won’t ever let your losses run too long. Remember these rules:

1. A stop loss should be considered and decided before a position is entered.
2. A stop loss should be placed immediately at the time of entry.
3. A stop loss amount should not allow more than a 2% loss of your account balance—for day trades and scalp trades, a stop loss should not allow more than 1% loss of account balance.

Remember these rules and implement them! Good luck and happy trading!

Did you find this post helpful? Try taking a look at Apiary’s glossary!