Browse >
Home / Archive: November 2010
Nov 27 2010
Acquiring the knowledge of the market isn't difficult for anyone with average intelligence after a few years of hard study in the market. But it is neither the level of intelligence nor the knowledge that decides the result of the market operations of a trader. it is the decision making process that is so hard for most traders to overcome and that is the main reason for a success or a failure for all the traders. Some find it simple to make decisions and stick to it and most find it so hard to make decisions and stick to it. regrettably, any decision making process in trading is a pain-taking process and humans tend to keep away from pains and go for pleasures even if for temporary ones. Assuming one has acquired market knowledge and acquired one's proven trading process (this is the second most important element of success in trading, in fact. An edge in any process is based on the quality of information one has, charts being only an info of secondary quality not the best one)
You must modify your mental attitude first from a traditional person to that of a speculator. all traders i have met, except a few successful ones who really made millions and billions trading in the market, basically waste all their time trying to learn the simplest part in perfection, like about how to read data and charts, and trying to ideal entry and exit skills, etc. Trading is a mind game and without having a right frame of mind, it is a losing game even before it starts. Training a trader's mind is the first step for any successful trader but all new traders neglect that part and that explains why more than 95% of traders are a failure in the long run.
Through studies and research, a trader faces the task of making decisions to put this knowledge and process in to practice. Then, how lots of traders can honestly say they can commit their ranch when the trade is suggested by their own process (given that trading is a chance game) and let the profit run for weeks and months when their process tells them, and how lots of can manage to cut the loss as a routine process when the situation arise. It all sounds so simple when saying it but so difficult when doing it affecting actual money in the market. I still do not sleep well when I'm jogging position because even if the profits are jogging in to a few hundred dollars and the process is telling you to carryover on, there is no guarantee that the profit will turn in to a yard or three in a month time, and it may even turn in to a loss in a day or three when something unexpected happens. A painstaking process in actual sense. The pain isn't knowing what will happen in the future and in fear of losing. So at the end of the day, assuming one has first rate trading process and market knowledge and first rate info, it is ultimately how disciplined and how well that trader can take the pain of making right decisions at the right time that decides the result of the trades. Hence I call trading a mind game. When I interview potential young traders, I always look for disciplined and strong-willed person as my first priority as long as one has first rate schooling, but strangely in lots of cases, it is some kind of genius or half-genius with lots of brains with no disciplines who turn up for an interview thinking only bright people can make nice traders.
In fact, I always try to pyramid while position trading medium-term once i'm satisfied of a new medium-term trend emerging. Like in USD/JPY position trading 135-132 as an initial position, adding in 132 and 129 areas. Same for AUD/USD and EUR/USD with similar strategies. But sitting on positions and watching the counter-rallies costing truck load of money isn't simple job to do and causes lots of pain on a regular basis. Most traders even among experienced ones cannot bear that pain and quit early. But there is no other way to make a large money and they must bite the bullet and "sit and accumulate" as long as the medium-term trend is intact. That is why I always think psychological aspects of trading is far more important than anything else in successful trading. A mind game like those bluffing game of poker.
Entries and exits can seldom be "irrelevant" for any trader for any purpose. it is that psychological aspects of trading are much more important than entries and exits, and decisive for the success or failure of a trader in the long run. perhaps exits are more important than entries because any ideal or near-perfect entries are possible only in hindsight.
Discover how a newbie in forex trading earns a
full time income from trading using an
automatic forex system.
Readers that are searching Internet for more information about the niche of
forex trading online, then make sure to go to the site which was mentioned in this passage.
Nov 27 2010
Bravery Under Stressful Conditions When the result is Uncertain
All the foreign exchange trading knowledge in the world is not going to help, unless you have the nerve to buy & sell currencies & put your money in danger. As with the lottery “You gotta be in it to win it”. Trust me when I say that the simple task of hitting the buy or sell key is difficult to do when your own actual money is put in danger.
You will feel anxiety, even fear. Here lies the moment of truth. Do you have the bravery to be afraid & act anyway? When a fireman runs into a burning building I assume we is afraid but we does it anyway & achieves the desired result. Unless you can overcome or accept your fear & do it anyway, you will not be a successful trader.
However, once you learn to control your fear, it gets simpler & simpler & in time there is no fear. The opposite reaction can become an issue – you’re overconfident & not focused enough on the risk you're taking.
Start by analyzing yourself. Are you the type of person that can control their emotions & flawlessly execute trades, oftentimes under stressful conditions? Are you the type of person who’s overconfident & liable to take more risk than we ought to? Before your first actual trade you need to look inside yourself & get the answers. We can correct any deficiencies before we lead to paralysis (not pulling the trigger) or a immense loss (overconfidence). A immense loss can prematurely finish your trading career, or prolong your success until you can raise additional capital.
Both the inability to initiate a trade, or close a losing trade can generate serious psychological issues for a trader going forward. By calling attention to these potential stumbling blocks beforehand, you can properly prepare prior to your first actual trade & develop nice trading habits from day one.
For example, actual estate tycoons make their fortune riding out the bad times & selling in the work of the boom periods. The issue with trying to alter a 'hold on until it comes back' strategy in foreign exchange is that most of the time the currencies are in long-term persistent, directional trends & your equity will be wiped out before the money comes back.
The difficulty doesn’t finish with “pulling the trigger”. In fact what comes next is equally or perhaps more difficult. Once you are in the trade the next hurdle is staying in the trade. When trading foreign exchange you exit the trade as soon as feasible after entry when it is not working. Most individuals who have been successful in non-trading ventures find this idea difficult to implement.
So your fear is a baseless irritation. Don’t try & fight the fear. Accept it. Have a laugh about it & then move on to the task at hand, which is determining an exit strategy based on actual cost movement. As Garth says in Waynesworld “Live in the now man”. Worrying about what could be is irrational. Studying your chart & determining an objective exit point is reality based & rational.
The other side of the coin is staying in a trade that is working. The most common pitfall is closing out a winning position without a valid reason. Once again, fear is the culprit. Your unconscious demons will be scaring you non-stop with questions like “what if news comes out & you wind up with a loss”. The reality is if news comes out in a money that is going up, the news has a higher probability of being positive than negative (more on why that is so in a later article).
Another common pitfall is closing a winning position because you are bored with it; its not moving. In footy, after a star walking back breaks free for a 50-yard gain, we comes out of the game temporarily for a breather. When we reenters the game we is a serious threat to gain more yards – this is unquestionable. So when your position takes a breather after a winning move, the next likely event is further gains – so why close it?
In the event you can be fearless under fire & strategically patient, foreign exchange trading may be for you. If you’re a natural gunslinger & reckless you will need to tone your act down a notch or one & we can help you make the necessary adjustments. If putting your money in danger makes you a nervous wreck its because you lack the knowledge base to be confident in your decision making.
Plenty of new traders think all you need to profitably trade foreign currencies are charts, technical indicators as well as a little bankroll. Most of them blow up (lose all their money) within a few weeks or months; some are initially successful & it takes as long as a year before we blow up. A small minority with nice money management skills, patience, as well as a market niche go on to be successful traders. Armed with charts, technical indicators, as well as a little bankroll, the chance of succeeding is probably 500 to 1.
Patience to Gain Knowledge through Study & Focus
To increase your chances of success to near certainty requires knowledge; acquiring knowledge takes hard work, study, dedication & focus. Compile your knowledge base without taking any shortcuts, thereby assuring a solid foundation to build on.
Discover how a newbie in forex trading earns a
full time income from trading using an
autmatic forex system.
If you are surfing for more info about the topic of
forex trading online, then please check out the link that was mentioned right in this passage.
Nov 27 2010
Investing is a prospect which several individuals make the decision to pursue, yet it is surprising to see the high level of limitation which many choose to adopt. One of the largest suggestions of many successful investors relates to finding diversity in your financial portfolio. While you might be more comfortable trading in the well-known settings of the stock market, it does not mean you must pass up the opportunity to invest in
Futures Trading and Forex Trading Systems. With diversification you can benefit from many different sources of revenue and if one area of your portfolio is struggling, it does not represent a loss in your total monetary package.
If you are an individual who is trying to grow beyond the limitations of stock investing but prefer simplicity in their trading environment, look no further than the Futures Trading System. Futures are in reference to the purchasing and selling of commodities as they rise and fall in the investment market. This possibility normally generates a great deal of interest as it relies heavily on predictable trends of when items are in season and when they are out of season. Buying out of season enables for an individual to purchase a good at it's lowest price and avoiding a natural disaster has the possibility to sell that commodity when it becomes in season again.
You’ll have first gain the knowledge and information required to predict these common seasonal changes, this is the secret of succeeding in this endeavor. If Futures Trading doesn't interest you or you are looking to further increase the diversity in your portfolio, seek the opportunity that can be found in the
Forex Trading System. This unique investment opportunity focuses greatly on the utilization of the global economies and the means each nation interacts economically.
It refers to the buying and selling of global currencies as they interact with one another, based on their continuously fluctuating values. When you are able to invest in a currency that shows a great deal of promise, you can discover a considerable growth in profit that benefits any financial portfolio. Of course there are concerns over getting an invested currency back to a useable currency to take advantage of your profit, therefore look to education as a cure to help with this financial dilemma.
Diversity is often defined as a key element to finding success in your financial portfolio. Whilst the stock market may offer a comfort zone for many investors, there exist a great deal more advantages a person can profit from when they invest in other markets.
In addition to the education you’ll get with the use of
Futures Trading Software, you will even have the possibility to tap into resources which will help you in your investing efforts. Resources like tools which will supply you with the answers you’ll have in identifying trends and understanding how various graphs display the history of purchasing and selling success.
Nov 27 2010
Download the
Disciplined Trader Training Program 17 Page FREE Report by Norman Hallet that shows how to backtest your trading plan. Get these
Forex Scalping Cheatsheets by Jason Fielder FREE. Learn this powerful
Fibonacci Retracement method FREE that pulls 500+ pips per trade. Let me tell you a quick story about two traders...They both follow the exact same system... they both trade the same Forex markets... and yet one consistently makes profits each month and the other is struggling to break even. What makes the difference? It's the missing secret that all top traders know...
The foundation of successful trading is more than a proven method or system... that of course is essential. But a successful trading method is a PART of an over all Trading Plan. If you are NOT consistently profitable in your trading then... before you answer that, consider this...Even top traders have weeks where they lose money and weeks where they make more. They treat it like a game and the profits are just a way to keep score. So when I asked how'd it go this week, what I meant was did you follow your trading plan? Too many struggling traders admit, reluctantly, that they don't HAVE a plan. Here's the bad news... A winning week doesn't mean much if it was just luck of the draw.
If you want peace of mind and a consistently growing trading account it starts with a solid trading plan to follow. That's one of the secrets to having the confidence to trade and the rock solid emotional control to be a consistently profitable trader. So often I hear traders say they don't really know what a good trading plan should be... and it's not your fault if you have unanswered questions, too. Fact is, there are few resources out there for creating a winning trading plan that works for YOU. The good news is that now you have a solid trading plan resource at your fingertips... at no cost, too!
What if you could ask ANY Trading Plan question you wanted to one of the top trading plan development minds in the world? Well, that's exactly what students of Norman Hallett's 'The Disciplined Trader Training Program' were able to do. I told you last Monday about something I don't emphasize often enough. It's the importance of having a solid trading plan as the cornerstone of your wealth-building strategy. If you don't have a trading plan and you missed my post on Monday, you're definitely going to want to continue reading...
My friend, Norm Hallett, is a master at not only helping people build a plan, but also at helping them stick to it. You can continue reading to learn more about Norm's philosophy. He's one of the most well-respected teachers in the industry, so it's worth the read...When you approach the market with the intention of trading your way to consistent profit, you have two basic tools at your disposal...
ONE: Your Trading PLAN and...
TWO: Your Discipline To Follow That Plan
Nov 26 2010
As you know there are so many ways of making money in this world. But to my great regret the vast majority of these money making ways can’t be successfully used by you due to many reasons. For example some ways of making money can’t suit you because most probably that it will conflict with your character, your beliefs and your general attitude to life. Of course I just mean that some ways of earning one’s living can have problems with laws and our human morality. But on the other hand there are a lot of other opportunities to earn ones living and they are rather legal but to my great regret the problem here is rooted in us. For example we can be lazy and light-minded and accordingly we aren’t able to take responsibility and start up our own business. In this case we aren’t able to find a well paid job too because we lack some aggressive initiative so we go on standing still. But some people aren’t light-minded at all and they are ready to work hard but the problem is that they are too conservative and accordingly they have rather a suspicious approach to almost every aspect of our human everyday life. This means that they simply lose an opportunity to be competitive.
I really hope that you aren’t conservative and you really like to discover new things every day of your life. So to cut a long story short exactly this ability to learn new things should be considered to be the basis of your further success especially when dealing with such an extremely promising thing as Forex trading. Forex trading is exactly that thing which can really reward you with a real financial freedom you could only dream about. And many guys living in different parts of the world are already taking advantage of their everyday buying and selling currencies. It goes without saying that these guys know for sure how be efficient competitive. Of course they appreciate comfort and accordingly they are used to executing their trades in the comfort of their home. And there’s no need for them to get up early in the morning because they know for sure that their profits won’t run away so they can afford themselves to sleep enough. As you might have guessed they needn’t rushing to get to their workplace on time because their workplace is situated by their bed in most cases. Every day they keep their hands on the pulse of the global currency market. They use advanced software, trading signals and certainly their deep knowledge when making their profitable trading decisions. They do this professionally and you can do the same of course. But you should start attending corresponding courses immediately.
One of the methods to improve your online currency trading activity is to use
forex trading signals. But, be prepared to the fact that now the market full of
forex trading signals - do you really expect that all of them work properly and bring income?
Definitely no. So we highly recommend you to visit this blog and read how to choose
forex signals service that really work.
RSS FEED