Last week I was in Dubai walking in a Souk (shopping area) with a very good friend from Algeria. For those who have never been to Dubai, it's a great place, but many of the shops are the same shops we have in the United States. We walked by a Starbucks and I said, "There is another U.S. store." She said, "Yes, another copy - paste"... In the major malls in Dubai, most of the shops are U.S. brands, even Toys R Us is here. Don't get me wrong, you have never seen malls like this. Aquariums the size of a big hotel, with thousands of fish and full-grown Whale Sharks, that you can scuba dive in, all in the middle of the mall. Another mall has a ski mountain with snow, moguls, and a couple really fast runs... All this in the middle of the desert! But as you walk around and focus on the shops themselves, you realize that "copy – paste" is everywhere. I found her comment simple yet powerful as it relates to those who are successful in trading and those who are not. As I have said many times, those who don't know what they are doing get paid from those who do. What most don't realize is that the first step in successful trading is to simply think different than most. The losing trader has a "copy – paste" mind. They simply see what actions others are taking, copy those novice actions and paste them into their belief system.

The copy – paste function for computers has not been around all that long. However, the copy – paste mind has been around forever. Think about how many people you know that make consistent income from trading based on the information they read in conventional technical analysis books. I would be very surprised if you knew one or two. Yet, every day, more and more people buy the conventional "copy – paste" books and take the novice "copy – paste" action those books suggest. People who reach goals and achieve success don't care what others are doing. They ignore the "copy – paste" function in their brain and repeat the actions that lead to their success. They can do this because they are focused on what is REAL in money and markets. They understand the reality of how prices move in markets and realize that this whole game comes down to people supply and demand analysis.

Let me walk you through an Extended Learning Track (XLT) class trade I took in my account in the Euro/US Dollar. This trade is a simple example of how simple reality-based logic works. In the lower left portion of the chart, price was trading sideways for a bit. Supply and demand appeared to be in balance. Then, price rallied from that level telling me that behind the scenes, there was no balance, demand was greater than supply. Once that rally happens, we wrap two lines around that level and carry those lines forward, creating a demand zone which is a potential turning point in the future. Once price declined back to that level, it was time to buy. The risk was low, reward was high, and the odds of the trade working were very strong. The high odds came from having a good idea as to who was on the other side of my trade, the seller. What I knew to be true was that I was buying from a seller who was making the same mistakes every consistent, losing trader makes. That seller was selling after a decline in price and into a price level where demand exceeds supply. Only a market speculator with a "copy- paste" mind would do that and this is the group I always want on the other side of my trades.

Lessons From The Pros

After buying at demand, price rallied up to the supply level above. As expected, the "copy – paste" came in and made the same two mistakes. They bought after a rally in price and into a price level where supply exceeded demand. This is where I took my profit and sold to the "copy – paste" buyers. I wish I had more to say and write about to explain this trade and all the others, but the truth is, proper market speculation is simple; actually having the right knowledge and discipline to do it is not easy. What makes it most difficult and sometimes impossible is if you have a "copy – paste" mind and live a "copy – paste" life. Life is too short to settle for anything less than living the life YOU choose to live. Do you live the life YOU choose to live or do you live a life of "copy – paste" and simply do what others do? Do you follow the paths of others or do your actions leave a path for others to follow? Take some time and think about your decision-making process and determine who you are. If you find that you "copy – paste," delete that function and send me an email when you do.

Learn to Trade Now

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Editors’ Picks

EUR/USD steadies near 1.0550, looks to post modest weekly gains

EUR/USD steadies near 1.0550, looks to post modest weekly gains

EUR/USD has lost its bullish momentum after having climbed above 1.0570 with the initial reaction to the US data in the American session and retreated toward the mid-1.0500s. On a weekly basis, the pair remains on track to close in positive territory. 

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GBP/USD struggles to hold above 1.2300

GBP/USD struggles to hold above 1.2300

GBP/USD has edged lower following a jump above 1.2300 in the early American session on Friday. The market mood remains upbeat ahead of the weekend with Wall Street's main indexes posting strong daily gains on upbeat US data. 

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USD/JPY: Loss of upside momentum looks imminent

USD/JPY: Loss of upside momentum looks imminent

The USD/JPY pair is displaying wild moves after the release of Japan’s Inflation. The asset is facing barricades around the round-level resistance of 135.00. On a broader note, the major has witnessed a steep fall after failing to sustain above the critical hurdle of 136.00.

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Editors’ Picks

EUR/USD steadies near 1.0550, looks to post modest weekly gains

EUR/USD steadies near 1.0550, looks to post modest weekly gains

EUR/USD has lost its bullish momentum after having climbed above 1.0570 with the initial reaction to the US data in the American session and retreated toward the mid-1.0500s. On a weekly basis, the pair remains on track to close in positive territory. 

EUR/USD News

GBP/USD struggles to hold above 1.2300

GBP/USD struggles to hold above 1.2300

GBP/USD has edged lower following a jump above 1.2300 in the early American session on Friday. The market mood remains upbeat ahead of the weekend with Wall Street's main indexes posting strong daily gains on upbeat US data. 

GBP/USD News

Gold stays below $1,830 as US yields edge higher

Gold stays below $1,830 as US yields edge higher

Gold continues to fluctuate below $1,830 on Friday and looks to close the second straight week in negative territory. Fueled by the risk-positive market environment, the benchmark 10-year US Treasury bond yield is up more than 1% on the day, limiting XAU/USD's upside.

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Why Cardano could surprise over the weekend

Why Cardano could surprise over the weekend

ADA  set to close out the week with a gain on the workday trading week and over the weekend? Central banks signaled that the rate hike cycle is ending, meaning less stress and tight conditions for trading, opening up room for some upside potential with Cardano set to pop above $0.55 and test a significant cap.

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