49 thoughts on “Q & A’s. Ask away about the way that I trade.

  1. Just yesterday the subject of emotionless trading once again came up in a conversation that I was having. The guy that I was speaking with was insisting that the only way to trade successfully was to trade without emotion.

    My argument is and always has been that to trade without emotion is just not possible for anyone and last week gave me a perfect example of this.

    For those of you who don’t know, my trading success is down to a woman called Kim Krompass. Kim is an extraordinarily successful trader. Last week was a particularly tough week for her. The New York sessions were just not playing ball. On Wednesday she posted on twitter;

    “What a junk day for me… DFTD with a BIG Loss: -97!!! Mon: -62 Tues: +142 Wed:-97 DOWN for the week -17 I feel like I need to shake off like a dog does… GEEEZZZZZZZZ”.

    Even with Kim’s years of experience and her level of professionalism, she still feels it. Being tossed about by the markets has an effect on her emotions.

    On a day when the markets are not moving much or we are having a really tough time, you will notice that the amount of twitter activity drops dramatically. The market starts to move and everyone is holding positive positions and twitter is once again on fire. This is due to the emotional reaction of the usual twitter participants.

    The fact is that every moment of our lives we are experiencing an emotion. Sometimes good, sometimes bad, some powerful and others barely noticeable. But it is a fact that emotion is always there and the roller coaster ride that trading so often is will have your emotional state shifting all over the place.

    My answer is this;

    Ensure that you don’t let those emotions affect your criteria or your game plan.
    Be sure to stick with your rules and risk management.
    Don’t waste your energy trying to control or suppress your emotions.
    Use that energy to control the way that you trade.

    And if after reading this, anyone still believes that they can reach a point where they have no emotions, do one of two things;

    Read Jon Ronson’s book ‘THE PSYCHOPATH TEST’ or check your pulse as you are probably dead 😉

  2. Pressure and stress are two of the biggest challenges that we face as traders and are way up the scale of things that can hold you back. They can put a barrier between where you are now and where you want to be. Pressure and stress will undermine our health, our performance, our happiness and what we can ultimately achieve.

    The reason for talking about this is that increasingly I hear from people who are just getting started in trading who tell me about their long list of past failures and of paying money to mentors who it seems have just been out to scam them.

    I know that there are a lot of dubious characters out there claiming to be the latest best thing with the most successful system to work with however, some are the real deal. There are many different styles of trading that are a success and some of those successful styles of trading are passed off as scams simply because those who fail at them cannot see that their inability to make it work is their own doing.

    Some of the people who have contacted me then go on to join us at The Price Action Traders Institute. It then becomes clear to me where the problem might be with those people not having any kind of success. It seems that they want to be able to learn within a few days all that there is to know about the way that we trade and then be ready to begin pulling profits from the markets.

    When this doesn’t happen within a few weeks, the failing trader is off on a quest to find another system to trade and the cycle begins all over again.

    Whichever system you decide to work with, you should eliminate as many things as you can that could hinder you becoming profitable. Begin removing the two that I mention at the start of this email.

    Approach the system that you are learning in a more relaxed way. Don’t see learning to trade as a race to the finish with the finish being consistent profit. See the learning as a steady process without the pressure and stress that will inevitably stop you from ever reaching your goal.

    Everyone coming into this business wants to give up the day job to be full time traders and earn the money they need and more from trading.

    Trying to force it will not work. Relaxing and taking your time with the process will give you a much better chance of making it.

  3. 3 years ago this past week was the turning point in my trading.

    First heard Kim being interviewed on Trading Lifestyle podcast.

    How do I remember the date?
    It’s Che Guevara’s birthday (real name Ernie Guevara).

    How do I remember Ernie’s birthday……..Long story 😁

  4. The problem that some traders have with their platforms freezing whilst trying to trade red news events came up again this week. Fortunately this is something that I have not had a problem with since moving to my current broker.

    This problem is often down to load balance on the broker’s server. Basically the server struggles to handle the massive increase in demand of orders being placed at the same time during a red news event. One answer to this which often works is to ask your broker to move your account to one of their oldest servers. The reason being is that the newer servers have the most amount of activity due to the larger amount of new and active accounts. Over time, many new traders give in and walk away and these accounts will no longer be used. Hence, the older the server the less the activity will be on that server, allowing your order to go sailing through. This isn’t guaranteed but if you are having problems, it’s worth a try.

  5. Strange how you can read a book, put it down and then a few years later pick it up and read it again and it seems as though you are reading a completely different book.

    This week I read THE POWER OF NOW for the second time. The relevance of what the book is teaching the reader suddenly took on a new meaning for me as to how it relates to how we should approach the markets when we sit down to trade. Parts of the book can be pretty heavy going and even controversial, but the underlying message is essential to where our heads should be when we trade. As a price action trader we should not be dwelling on the past or predicting the future.

    The reality is that all that really matters is what we are seeing right now. What price doing at this moment in time.

    Obviously, Eckhart Tolle wasn’t aiming the book at forex traders specifically but it really is so relevant to price action traders and the way that we trade at The Price Action Traders Institute. I highly recommend that you read it if you haven’t already done so.

  6. Reading some of the comments and questions that I receive, it is obvious why so many people fail at forex trading.
    Trading is extremely risky but once you realise what the two key elements are it is easy.
    There are thousands of successful strategies that you can use to trade. The strategy is only a very small part of what is needed. The two most important things that are needed to succeed are RISK MANAGEMENT and YOUR OWN PSYCHOLOGICAL APPROACH. You must accept that you will lose on some of the trades that you place. When you take a trade, you need to accept that the trade could go either way. You will need to stick rigidly with your criteria. When you place a trade it is not about being right……It’s about doing the right thing.
    You can find out more from my YouTube channel https://www.youtube.com/channel/UC5SYcCUi6jQM-e2vWUN2h8w

  7. Great stuff! I try and trade similar style and have watched a ton of your videos as well as Kim’s. videos and you trade similar but a few differences.

    I typically trade the NY session but was curious on a few things.. Do you wait for London to open? Or do you trade if you get price action at any point after the range?

    1. Sorry for the delay in getting back to you Jason.
      I will get into trades if the price action warrants it.
      If I am seeing good strong moves across any currency I will take a shot and this is totally unrelated to ranges.
      Purely down to what I am seeing a pair doing when I come to the charts.

  8. Hi Kevin,
    since you trade on a 15m time frame, how do you place your trades as a “market order” or a “pending order” with stop loss.
    specially when you enter several trades on this time frame/15m.
    will appreciate the details.

    thanks Kevin

  9. I am based in the western US. So trading the London Open means staying up until midnight. It’s doable ifI get a nap earlier . That is pretty much the reason I decided to trade on the Daily time frame. I can still trade and get some sleep and work my day job.

  10. 1. Do you have a Daily Loss Limit and how often does it get hit each month? And how important is having one and adhering to it contributing to your success.
    2. Are your reasons for not trading 2 sessions a day …Or on Fridays … Based on actual statistics/ prior performances or is it just based on a gut feel?
    3. What percentage of your profits come from News trades and are they only recommended for advanced traders.

    1. Hi Andy.
      My daily loss limit will vary depending on how much price action is occurring. Lack of movement would see me stopping around -60. If there is money moving in one of the currencies that I trade I will allow that loss to run a little higher as the price action will give me a good chance of recovering some of my losses.

      Trading both London and NY is mentally draining if there is a lot going on. If the London session is extremely slow and I have a small loss then I might trade NY too. Not trading on a Friday is down to personal choice. Working 4 days a week suits me. There is more to life than just trading.

      I don’t work out the percentage profit on news trades as opposed to regular trading. I see no point in it or do not suppose that I would see any kind of consistency in the results. Red news trading should not be attempted by anyone just starting out.

  11. Hi Kevin,
    I’m new to forex. When you first started doing PATI what account size did you begin with it? And how long did it take before you were consistent (and confident) in the method Kim teaches (e.g., weeks/months). Did you also back test her method before going live or just forward test it using micro/mini lots. Thanks.

    1. Hi Steve,
      I started with a demo account for a few weeks to get a feel for the criteria.
      I then worked with a £200 account trading 0.01 lot size growing the account with my wins and gradual additional investment.
      I was showing consistency within a few months.
      No back testing. Just trading with very small risk.
      Thanks for getting in touch.

    1. Going back a few months the London session became very quite with hardly any price action or follow thru.

      Kim decided to put the London trade planning session on hold for a while.

      I decided to use the mornings to deal with other commitments that I had and just trade N/Y.

      London has been showing an improvement recently and starting in the new year I will be back running the London session and trading it.

      Are you based in Europe?

        1. I can understand why you would be interested in the London session.
          It will be back this coming January.
          Are you a member of PATI at the moment Al?

  12. Hi Kevin,
    I was watching one of your videos and noticed your charts have some information I can’t seem to find on my MT4 platform. It appears you have a day high/low dashed line from the previous day, a range box (I am guessing is from the Asian session to the opening of the London), and to the right of your label and SL text you have (quote, spread, high, low, net change, pips to HOD/LOD, and candle time). Where I can download this information or do you sell it as an add on to the MT4 platform?

    1. Hi Bob,
      That information is provided as a free download for members of The Price Action Traders Institute.
      I’m not aware of it being available elsewhere.

  13. Hi Kevin, would like to check how much is commission hurting your profits on average?
    For example, on average i noticed you make about 10 trades/session, if you are +30pips in that session, that is prior to commission am i right?
    So per session we will need to minus about 10pips to result for commission?
    If +30pips in a session, it shld be +20pips nett after commission?
    If +15pips in a session, it shld be +5pips nett after commission?

    Thanks for answering Kevin!

      1. Pepperstone razor account is charging $7/lot per round trip trade so that is 0.7pips commission per trade round trip.

        In a session if you made 10 trades and up 15pips, 7pips(0.7pips x 10trades) will go to comms? And nett 8pips?

        1. I see what you are saying Kelvin.
          Comparing Pepperstone spreads and commissions I find them to be pretty good.
          The only data that I keep is:
          Daily pips made/lost
          Check cap amount start and finish to give me % plus or minus on my cap.

  14. Hi Kevin, do you trade any other pairs than the 10 on the PATI website? Also wondered if you avoid trades in Mondays LDN session if it’s quiet?

    1. Hi Luke,
      In addition to the 10 pairs traded by PATI members, I also trade the EUR/GBP. I go with this as it gives me a 3rd option when we see a strong move on either of the currencies.
      But more important than that is that the spread is relatively low with the EG.
      You can trade using PATI criteria on any pair that you want but you need to be mindful of the spread as we use very tight stops. If the spread is high then it will give us no room for an initial pull back and we will be constantly stopped out.

    2. Re avoiding the Monday London session.
      I usually trade the N/Y session on Mondays but only because of other things that I have going on.
      We never know what any session will bring.
      The best approach is to trade any session that suits you and try not to predict or second guess anything.
      Just be well prepared and stick with the criteria.

  15. Hi Kevin,
    I have just joined PATI and feel privileged to do so.
    Could you please advise when drawing up the charts what the grey shaded area represents?
    Many Thanks
    Chris Butler

    1. Hi Chris and welcome to the PATI membership.
      The grey box depicts the Asian session and what we in the London session are referring to when we say “what did price do overnight”.
      The N/Y session traders look at the grey box plus what has happened during the London session when they ask “what did price do overnight”.
      If you are able to join us for the London session on Wednesday (07:30 BST) you will see us using the grey box for our trade plan.
      Not sure as you are a new member whether I have followed you on twitter. If you tweet me @uk2asia I’ll be sure to add you.

    1. Hey Luke,
      Occasionally but more often than not I will trade one or the other.
      I find that only trading the one session helps keep my psychological approach intact.
      What I mean by that is that if I have a loosing London session in the morning, then come to the N/Y in the afternoon, I start to feel an element of having to do well. That can then lead to a sense of revenge trading creeping in and that is something that should be avoided at all costs.

    1. Hi Stan,
      Firstly, by giving myself Fridays off, it gives me a chance to get other things that need doing in my life done.
      Secondly, it removes that sense that trading is a full time job. I still view trading as a privilege, not as a drudgery that many jobs bring.

  16. If it is simplicity that you are looking for PATI criteria is so straight forward.
    I began working with Kim in 2015. I had previously worked with many different mentors and strategies and completely wasted my time and money.
    I can personally vouch for Kim and her trading method. She is the real deal and completely honest.
    All trade plans are recorded and put up on the website for the members soon after we finish the plans. To trade using the system that we use you would need to be able to be in front of your screen and the charts at or soon after 08:00am bst for a max of three hours or from 14:30 bst for a max of three hours. If the markets move we can be finished and flat much quicker.
    If you do decide to join us you can use KEVIN2017 coupon code on signing up and receive a discount.
    We only use 15 minute charts and no indicators. Everything we do is pure price action at the moment that you are in front of the screen and trading. No need for any analysis or back testing.
    I don’t give trading a second thought before I sit down to trade and when I finish for the session I have no open positions to worry about so can forget trading again until the next day that I trade.
    Getting to grips with the system can be as quick as 1 month if you have prior experience working with the MT4 platform. Once you have the criteria down, then it is up to you to get the psychological aspect sorted.
    As a member of #PATI you will also have access to a wealth of videos that Kim has recorded helping and advising on improving your mindset.

  17. Hi Kevin.

    Couple of questions if I may.

    I am UK based, and limited at present as work shifts and have a young family, so wondered if the london trade plan sessions are recorded or written so I can come to it once dropped eldest at school and have platform open with youngest? NY session difficult due to collecting eldest, homework, dinner etc. Or is it viable to learn the method and understandings to be able to impliment the analysis personally?
    like the idea of simplicity, as I think I have read too much into diffierent systems and confused myself to a point where I feel like I know as much an outsoder looking in again.

    Finally, for now at least, how long would you say it takes to get tongrips with the system and be able to progress to independence?

    Thanks for your help.

Leave a Reply

Your email address will not be published. Required fields are marked *