We come full circle in this interview with Clayton Allen. I finally close the book on a popular system first revealed in my 2016 interviews with Rob Booker and Aussie trader, Scott Heywood.
Clayton, an ex-plumber, who skyrocketed up the corporate ladder through his problem solving abilities turned his hand to Forex and fell in love with a robot known as “The Finch”.
While many have struggled to master this fairly popular, albeit psychologically taxing, trading algorithm; Clayton’s skills and experience allowed him to master the risk management and mindset required to make consistent returns and a small fortune in the process.
But it wasn’t all smooth sailing.
To hear his full story (and learn the discretionary method he uses to get himself out of trouble) listen and watch below.
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[09:54] The Sydney, the Asian are typically the worst sessions for discretionary trading.
[11:06] The only problem I had then was I didn’t have the time to watch the 28 currency pairs I was trading at the time and wait for their setups.
[12:51] You always have to have your fingers on the pulse of the market and you always have to be able to know how to discretionary trade your way out of trouble.
[15:22] For me, having the time with my kids, being able to stay here and not travel is worth it.
[18:33] I think there’s a good niche of people, if they’re exposed to Forex trading the right way, you can make decent returns and manage your risk if you’re not a banana head.
[23:56] I don’t triple my position size. I slightly get bigger or smaller based on 10 years worth of backtesting I’ve done on each pair.
[27:45] The hardest thing to do in trading is, as soon as you open the trade, it goes your direction and you released all the stress, when it doesn’t go the direction you wanted, the stress starts building up.
[29:30] When drawdown starts to get close to 15%, I start playing defense.
[38:00] These Black Swan events, they can be detrimental with no stops.
[41:09] Being patient is the one thing I can tell any new trader or any trader struggling.
[41:30] Trading without stops, you got to get used to that.
[45:32] You’ll get a lot further faster while watching someone else trade than just going it yourself.
[47:31] Sometimes the right answer is just to pause it and wait.
[56:28] Trading is 90% emotional.
[56:51] You got to be patient, you got to give your trades lots of room, and you got to just trust your system and be confident.
[61:18] Learn Support & Resistance, learn what a Channel is, learn what a Trendline Break is, and plot them on your charts until you feel comfortable with it.