Interview With Pro Forex Trader Lynette Allen
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Interview With Pro Forex Trader Lynette Allen

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Are there really people who can trade Forex for a living? Yes, they are, but they are usually hard to find. If you don't know any Forex traders, then check out this interview to learn how Lynette ...

Are there really people who can trade Forex for a living? Yes, they are, but they are usually hard to find. If you don't know any Forex traders, then check out this interview to learn how Lynette Allen became a full time trader, learning how to trade on her own.

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    Interview With Pro Forex Trader Lynette Allen Interview With Pro Forex Trader Lynette Allen Document Transcript

    • ! TTL #8 Interview with Professional Independent Forex Trader Lynette Allen Hugh Kimura: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level and risk tolerance. You could lose all of your initial investment. Educate yourself on the risks associated with the foreign exchange trading and seek advice from an independent advisory if you have any questions. ! All information is solely for educational and entertainment purposes and is not trading or investment advice. Past performance does not guarantee future results. ! Lynette Allen is a full-time independent forex trader in Sydney, Australia. She primarily trades the Aussie-US dollar and she’s also into travel and minimalism. Let’s go talk to her. ! Hugh Kimura: Hey Lynette, thanks for coming on the show. How are you doing today? ! Lynette Allen: Great. Thank you. Thanks for having me. ! Hugh Kimura: Yeah, no problem. So how did you get started as a trader? ! Lynette Allen: I got the idea to start trading about four years ago. At the time, I was just getting interested in personal finance and a lot of my personal finance books suggested getting into trading stock. It took me about a year from getting the idea to actually getting the courage to finally open up a broker account and get started. It was only when I was channel surfing and I came across some episode of Wall Street Warriors with Timothy Sykes. It looked like he was having such an awesome time and making a lot of money so that was pretty much the, “OK, let’s do this” moment and I posted my first trade about a week after seeing that episode. ! Hugh Kimura: Cool. You told me you were doing well in stocks. What are the advantages of forex that made you switch? ! Lynette Allen: The advantages of forex that made me switch is that my trend following method just got better with forex than stocks. Another reason is that I love how forex is 24 hours so I can trade when I want to trade and I don’t necessarily have to trade during the daytime. I love the economic guide. It usually has a set time so you can kind of plant it up. ! 1
    • What I hated about ASX stocks was the random trading halts and then the gaps when they would come out of the trading halt. It’s good if it goes your way but not so much fun when it goes the other way. ! Hugh Kimura: So how long did it take you to go from when you first started trading forex to trading full-time? ! Lynette Allen: I went full-time at the start of this year trading 80 percent stocks and 20 percent forex and it was about five months since going full-time with my trading that I realized that I was a much stronger forex trader than stock trader so I knew I had to give up trading stocks and put more energy and more money towards forex. ! Giving up trading the ASX wasn’t the easiest thing to do because that was such a huge part of my life for the past three years but deep down I knew giving up stocks and moving to just solely forex trading was something I really had to do. ! Hugh Kimura: Oh, I see and you only trade the Aussie-US dollar. Is that correct? ! Lynette Allen: Yes, that’s correct. ! Hugh Kimura: Maybe taking a step back a little bit, how did you know when it was time to make the leap to go into trading full-time? ! Lynette Allen: Well, at the end of last year, my fiancé got accepted to study a course and that meant that at the start of this year, we had to move to a completely new area. Before we moved, I was thinking, “OK, well what am I going to do when we move? Am I going to go out and get a job or is this the sign to give full-time trading a chance?” ! I was doing well with my trading and I had three months worth of living expenses saved for a bigger cushion. So I thought, “OK, let’s just give this a shot and if it doesn’t work, then I will just go back to working and trading part-time.” ! If full-time trading wouldn’t work out, it wasn’t the end of the world. I would just give it another shot further down the line. ! Hugh Kimura: Is there a mentor or a course that had the biggest impact on your success or if not, what was it? ! Lynette Allen: I never actually had one particular mentor or anything during my first year and a half of going into trading. I didn’t talk to any other traders because I just think, “No, there was such a big community of traders out there on the internet,” but when I did discover other traders, I was very, very lucky that a lot of them took me under their wing and they were very open to me, asking any questions and they were kind enough to share any information and resources they can with me. I’m very, very lucky and extremely grateful that they helped me out the way they did. ! 2
    • Hugh Kimura: Can you tell us a little bit about your trading method? ! Lynette Allen: Sure. So I like to trade one pair, the Australian dollar and the US dollar on a line chart. I like to use multiple timeframes to follow the trends. I like to use the one minute, one hour and the daily chart and my entries and exits are determined by three patterns, one entry pattern and two exits patterns. ! Hugh Kimura: Oh, I see. How did you develop your trading method? Do you do a lot of back testing or was it more through forward testing? ! Lynette Allen: It started out with my patterns which I’ve worked out over the course of the year testing where the highest probability patterns to trade the Australian dollar and the US dollar, on a line chart. So I started trading those patterns on the one-minute timeframe alone, looking to just get small pip movements then I worked on adding higher timeframes to my method to get the biggest pip moves. ! I find that if I can get my entry on the one-minute timeframe, then my stops can be quite tighter than entry on the one-hour timeframe. So I used forward testing to work on my skills to now the one-minute timeframe entries. ! Hugh Kimura: Oh, I see. OK. What do you love the most about trading? ! Lynette Allen: I love that it’s the only thing in my life that I had been able to stick with. There has never been anything before that I have ever remotely been able to have this level of concentration drive and excitement with so that’s why I love it and the money is really worth it. ! Hugh Kimura: What are the top one or two traits that you think somebody needs to have to be a successful trader? ! Lynette Allen: I feel a successful trader needs to be able to recognize what they did wrong when they make mistakes and try their best to not make those mistakes again, but not get too down on themselves that they do make the mistake again. ! I also believe depending on your method that a successful trader needs to have a good level of patience. Patience was such a battle for me when I first started in forex but as time went on, I really improved and my patience isn’t completely where I want it to be but I’m definitely better. ! Hugh Kimura: Oh, I see. What are some of the common misconceptions that people have about trading that you would like to dispel? ! Lynette Allen: Well, trading is definitely not easy and it’s definitely not something you will learn in a couple of days or weeks. Even if you do put in the time, it’s not a guarantee that you will end up being a successful trader. A lot of people think the trading method has to be quite complex in order to bringing good results but my trading method 3
    • is actually quite simple and a lot of people have a hard time believing that I trade forex off a line chart. ! Another misconception is that some older traders look down on younger traders and think they can’t possibly be any good or can’t possibly have any good ideas about trading or the trading lifestyle. So that’s kind of my aim to show people that younger traders can actually be all right. ! Hugh Kimura: I see. Very cool. I respect that, definitely. I found out about you through your blog. How has blogging improved your trading or has blogging improved your trading and if so, how has it? ! Lynette Allen: Blogging has definitely improved my trading. I’m not someone who learns instantly so I need a lot of repeating information to send them through my brain. I treat my blog a little like study notes so every time I repeat writing about PMIs, trade balances, interest rates, et cetera, that’s just drilling it into my brain a little bit more. ! Blogging is also quite, I guess, therapeutic. So if I have a bad trading day, I can vent that on my blog and it makes me feel a hell of a lot better. ! Hugh Kimura: For the people listening to the podcast who are just getting started in trading, how would you recommend they get off on the right foot? ! Lynette Allen: For forex trading, I would recommend checking out the Baby Pips Forex School. That’s probably one of the best free beginner resources on the internet and that’s where I got started. I would also recommend not being cheap and using some good, quality book. I have a recommended reading page on my blog, if anyone is interested, and that’s a great list of beginner forex books on there if anyone wants to check them out. ! Hugh Kimura: Sounds good, yeah. I look at those books and it was a very good selection. So I will make a note in the show notes. ! Lynette Allen: OK, good. Thanks. ! Hugh Kimura: Yeah. OK, let’s shift gears a little bit. One thing that I saw on your blog though I thought was really interesting was your interest in minimalism. And you had a list of blogs that you follow and personally, guys like Ev Bogue and Leo Babauta have had a huge positive impact on me personally. Can you tell me a little bit about how you got interested in minimalism? ! Lynette Allen: Yeah. As I mentioned before, I’m into personal finance and a lot of personal finance bloggers would bring up the topic of minimalism every now and then. At first I thought it was a bit hippy-ish but then the more I read about it, the more it became more and more appealing. ! 4
    • I started out small, just getting rid of one to two things a day and over the years, that really adds up. But when you get rid of all that stuff, you realize that you can still live your life, your normal day to day life perfectly fine and then the want to buy all that crap to fill up your house pretty much disappears and then that leaves you with more money to spend on the things you generally love and more money to put into your trading account. ! Hugh Kimura: I agree. I agree. So how has it improved your life and your trading? ! Lynette Allen: Well originally, I used minimalism as a way to help build out my trading account. The less meaningless stuff I bought, the more money I got to put in my trading account but now I use it as more of a time management thing. The less time I have to spend doing those trivial everyday life tasks, the more time I get to focus on studying the market. Well, as an example, I own two plates, one bowl and enough cutlery just for two people. So washing up is done really, really quickly and then I can get back to reading my news and watching the market. ! I also love the look and the feel of minimalist faces. It’s very serene and relaxing and I just find it’s a really great trading environment. ! Hugh Kimura: I see. I personally have difficulty being minimalist about like Apple products. But for you, are there areas that you refuse to be a minimalist? ! Lynette Allen: I refuse to be a minimalist about books because I just love reading. I do try to get most of my books on Kindle but I live near some really great bookstores and it’s a bit hard to just walk in and not come out with a great read. Another thing I refuse to be a minimalist about is monitors. The more, the better I reckon. ! Hugh Kimura: Nice. If any of the listeners out there are interested in becoming more minimalist, what are the top two or three sources that you think they should start with? ! Lynette Allen: I would recommend starting out small and just getting rid of any unnecessary clutter and then moving on to the more hard core stuff. ! A great blog I like to read is called Unclutterer.com and that focuses on getting rid of clutter and getting more organized. Then if you want to go deeper, I would suggest reading blogs such as BecomingMinimalist.com, BeMoreWithLess.com, ZenHabits.net and Mnmlist.com which is M-N-M list dot com. Then if you go to my blog and then go to my About page, you can find a list of my favorite minimalist blogs on there. ! Hugh Kimura: OK, very cool. Yeah, I will make links for those sites too. So I would like to finish up by talking a little bit about lifestyle. I know you mentioned it a little bit before. But what are some of the meaningful activities that trading has allowed you to pursue? ! Lynette Allen: Well, my fiancé works really odd hours and his weekends aren’t necessarily on Saturdays, Sundays. So trading allows me to be home when he has his 5
    • days off. If I worked a normal 9:00 to 5:00 job, then the time we get to spend with each other will be cut down dramatically. ! So trading allows me to spend more time with him and trading also allows me to take time off for however long I need to. So just say I want to go traveling and take time off. Well, I know when I come back, I’m still going to have a job. ! Hugh Kimura: I think a lot of people think that being a full-time trader will be all about having a mansion and the Ferraris or whatever. But as far as the people you know who trade full-time and your own experience of course, how do most full-time traders live? ! Lynette Allen: I think the initial attraction to being a trader for a lot of people is definitely the possibility of earning enough to live a crazy, lavish lifestyle. Being completely honest, that was what attracted me to trading in the first place but I think as time goes on, a lot of people realize that trading can bring a lot of flexibility to your life than a regular job and it ends up being the main job for a lot of people. A lot of the big time traders that I know live just the same or slightly better than their previous job and they trade because they just genuinely love trading. They love that they can be their own boss and they just love the flexibility that trading can bring to their life. ! Hugh Kimura: I see. Very cool. Very cool. OK. Well, thank you very much Lynette and I appreciate you coming on and giving us your perspectives. ! Lynette Allen: No worries. Thanks for having me. ! Hugh Kimura: Take care. ! ! —————— ! To hear more professional trader interviews, visit: TradingHeroes.com 6