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.
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?
Note: This is for informational purposes only, it is not meant to be advice of any kind.
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Also check out this video: https://www.youtube.com/watch?v=B7xEo9aZgts