Lesson three, the scientific path to financial freedom through forex trading. Welcome to lesson three. My name is Sam ADA. I'm a global macro Currency Trader and the owner of FX renew calm. This is the advanced forex course for smart traders. Fanthorpe said life starts out in the neutral position between profits and losses are neither fears losses, no desires profits.

However, as a human being developed self awareness, fear and greed also arise. But when you get rid of the greed, and the fear that comes from lacking, you reach a special unity with all and that's where the great traders and investors emerge. Financial Freedom may be closer than you think. By following these three potentially life changing steps, you could achieve financial freedom years earlier than you thought or in some cases, some of my students have actually found that they're already there. One, discover your financial freedom number two redefine what financial freedom means to you and three set meaningful goals. This approach to financial freedom is scientific.

We want to give you a method that generates action steps that are proven in specific to your own circumstances. But as with most things that involve human emotion, science will only take you so far. While you'll become very clear on what you need to do to achieve financial freedom, you need to think hard about what is important to you and your loved ones, as well as how much you have appeared to give to get it. This is a human element that makes goal setting so inspiring and empowering. Goal setting is essential to developing a winning forex trading system that suits you. Before we get into the nuts and bolts of financial freedom, it's important to understand why goal setting is the core element of developing your forex trading system.

A forex trading system is a set of rows you have for placing a currency trade. For example, the Forex trading systems that we use it rules for objectives, defining the market type setups stopping an entry Defining the initial risk, managing the position what seated, how much to buy and when to stop trading, you will likely develop three or more forex trading systems to assist you in achieving your goal of financial freedom. The first part of developing a top quality forex trading system is defining objectives. For example, here is a set of objectives for an imaginary system. I would like my system to make 10 bucks in a month, I'm prepared the rest to be seen of my capital to make 10% a month and I only want a 30% chance of losing 2% of my capital. Once you have to find these objectives, you then develop a set of position sizing rules to use when you place trades that are designed to meet these objectives.

This is the how much element in your trading strategy. For example, this could be our risk $500 a trade or I will buy one lot of your USD without first uncovering your financial freedom number and having a deep Standing of your goals and risk profile, it's hard to know if these objectives are in alignment with your needs. It's much better to integrate your overall financial goals into your trading systems. Otherwise, there'll be internal conflict or conflict with a loved one, they will cause mistakes and losses. And the model of successful traders that we teach in this course effective goal setting is essential before developing objectives for individual systems, the definition of financial freedom. So what exactly is financial freedom?

One definition is financial freedom is having enough passive income to cover your expenses. According to this definition, if you're earning more money each month from your trading income, then you're spending on your lifestyle, then you're technically financially free. So let's look at some simple math to see how achievable This is. So you set a young couple a reasonable goal of becoming financially free in 10 years time. They start off with $50,000 in capital and are able to save 100 As a weak over this period of 10 years are able to earn 15% on average returns. After 10 years, they have 323,000 or so.

Assuming a 15% return on this capital, they are earning 48,000 or so per year in passive income or about 4000 a month. If their expenses are less than 4000 a month and they've achieved financial freedom. To calculate your financial freedom number, you simply calculate your monthly expenses. This is your financial freedom number. For example, if your monthly expenses are 5399, then your financial freedom number is 5399. Like in the above example, once you have more passive income than you do expenses, you are financially free, simple.

Next, you want to calculate your net worth. You can now work out what return you need on your net worth to achieve financial freedom. Say your expenses are 100,000 a year and you Have $1 million. If you make 10% per year on your $1 million, you're financially free. If instead you have 500,000, but we're confident you can make 20% a year we'd also be financially free. Some of you may be having aha moments where you realize how close you actually are to what you thought was an elusive goal.

Change your definition change your world. By redefining what financial freedom means to you, you take one more step beyond the matrix and start to create a future that you own rather than automatically living a life run by others. There are numerous path to financial freedom. Once you open your mind's eye and think creatively, you'll realize that in many ways, you're more limited by your own imagination and willingness to live a life less ordinary than you are by money. What really is passive income. Possibly the simplest way to redefine the definition of financial freedom is to change what the term passive income means to you.

Pepsi believes that you are financially free if you can generate more money then you need to exceed your financial freedom number and 20 hours work a week. Perhaps you would consider yourself financially free if you only need to work 20 hours a week trading forex and to take a three month holiday a year. have a date. Think about the lifestyle you want to live. When you're financially free, you may well not want to stop work altogether. Or maybe you do either way.

It's fine. Just make it personal and above all, make it achievable. quit your day job move to a tropical paradise and live the dream you should seriously consider it. I mean, why not? By benefiting from a strong Western currency, you can have a lifestyle that will be the envy of most of your friends and family by living in the Philippines, Paraguay or any other stable emerging market. Okay, well, this stuff is all true quitting jobs and moving your family to a different country is not necessarily that simple.

So it can be where there is a well the point of this is to think creatively about how you can redefine your concept of financial freedom. Let the mind wander down all the exciting paths you can come up with and see what arises. You may get a surprise about what you realize you can do. Have fun with this. Think about how you can influence your financial freedom number for the better what you could do to change your lifestyle. In case you're wondering, we actually did this.

Myself and my fiance quit our jobs and move to Phuket in Thailand. And since then, we've moved to a beautiful small town in New Zealand called Nelson. Setting meaningful goals. Once you have uncovered your current financial freedom number and realize that you can redefine financial freedom to suit your needs, it's important to start thinking about what you truly want from life. having enough money to cover your expenses is great but if you can link your trading to a higher purpose, you raise yourself up is another level. Start by asking yourself this question if I achieve my forex trading What will it enable me to do?

Now get out a pen and paper and spend five to 15 minutes brainstorming potential answers. This could be anything from put my children through university to retire in five years time and live off the income. net, pick the number one goal from your list, the one that gets you the most excited. Once you've thought about what achieving your financial freedom goals will mean to you. I then want you to take a moment to think about these questions. What would you do to achieve that goal?

What would you give? And how committed are you to making sure it happens? When I've asked people this question in the past, the main art so I guess anything, whatever it takes. We need to this process be sure to include your family. If you set objectives on your own without buying from your loved ones, you could create conflict that could impact your trading performance. It's best to talk openly and honestly without an agenda.

When Listen carefully and non judgmental to the concerns of others you are sure that come to an even better solution. If you are having trouble in this area, you could try reading Stephen Covey's book. The third alternative, by the way I want to make money is not a good goal. It's not specific or a motive enough to really work. It's best to come up with a number, like your financial freedom number, and very personal reasons why you want to achieve your goals. Studies show that if you set specific and meaningful goals, you're far more likely to achieve success.

Market wizard van Tharp actually believes that 50% of the time developing a successful trading strategy should be dedicated to creating clear objectives. it's that important. Goals are a work in progress. As the saying goes, no plan survives first contact with the enemy. When you set goals realize that they don't have to be set in stone. Your initial goals are likely to change down the track.

Keep them Simple, robust and flexible. Your hard work now will be life changing. Every moment you spend working on your goals will pay bands for dividends down the track by obtaining clarity in what you want. Not only do you create a roadmap to achieve your goals, but you'll have a fire within. The burning passion that well developed goals inspire helps you to stay disciplined, avoid procrastination, and ultimately to help you become the person you want to be. Goal setting works on a subconscious level.

Aside from the conscious actions you will take your subconscious mind is now hard at work finding ways for you to achieve your goals. You have awaken the sleeping giant that is your true self. And it will relentlessly work on your behalf to guide you toward financial success. Take the time now to think very carefully about what you want out of life. Spend some time sitting on a park bench walking around the block or at a cafe with a loved one and brainstorm about your future. Take detailed notes and make sure you enjoy the process.

If you feel bad lol, sit back, take a deep breath and just be in the moment. And when you are ready again, let the creativity flow. The more time you spin on this exercise, the better so don't rush it. You'll know when you're ready. The coursework for this lesson is the live my dream worksheet. So I want you to go and fill that out.

I'll see you in lesson four.