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Dec 1 2010
One feature that every successful trader should have is regular self evaluation. You might have already heard this before, but when it comes to trading it is true. You are the first enemy of yourself. The following checklist can help you to define the psychological barriers that every trader comes across in the long run of his career. Spend a few minutes for reading it, give frank answers and re-read the list from time to time. You will be surprised by your progress and will see noticeable results in your trading account balance.
1. When you have lost the trade, do you have a desire to “revenge” and enter another trade at once for regaining lost money? If so, do you often experience the losses? If you are in a revenge mood, do you aim to extend your top loss order or to trade without stop loss at all? You will see that your trading performance is bad when you feel frustrated or distributed by somebody.
2. Do you work on yourself mentally when the market is already close? Do you make an analysis of your trading activity and try to define what you are doing right and wrong in your trading every day with definite steps? Successful traders always make a review of their recent trades and analyze them. They have a trading diary and write down comments. It is called business quality control enabling successful traders to change with the volatile forex markets.
3. How do the days affect you when you are lack of discipline and the right risk control on your total profit/loss? Do you strictly follow risk and money management rules?
4. In what state of mind do you often trade? Before entering a trade: Do you think about the winnings? Do you like the trade itself? Experienced forex traders do not have a money oriented mindset when they trade. They think about the pips. If you think about money, you do not act from the right motives. Besides, top traders are not searching for excitement, recognition or self-esteem. They trade for pips. An in many cases it is difficult to tell whether they had a good or bad trading day.
5. Do you talk to yourself when you are trading? What kind of self-talk do you have? Is it negative or positive; defeat oriented or optimistic? Is this talk constructive?
6. Do you exit trades early in order to see the market rally to your closed position? Do you become obstinate when experiencing the losses, converting small losses into large ones? Bear in mind: decrease your losses and let your winnings grow. It is a simple rule and the main key to success but you will find it difficult to stick to.
7. Do you like trading? Are you satisfied when you trade or trading is a systematic agony for you? Forex rading is difficult, sometimes boring work. The profits can be high, but this money making opportunity is not for everybody. Does forex trading suits you?
8. Do you see real trading opportunities and trade them or you get accustomed to creating opportunities when they are not? Traders who lack discipline often push the trigger constantly and not according to their trading plan.
9. Do you have a unique feature that makes you stand over the crowd? It can be tight spreads, some tool, or fast internet connection or your determination. If you can identify special edges and keep them, you will soon come close to the top 5 percent of those traders who make most of the profits in the forex market.
10. How much are you ready to sacrifice just to become a successful forex trader? Think of the time and money that every professional had to sacrifice just to make a living from his job. Forex trading is not an exception.
Because of troubles in the economies of many countries Forex has become a very popular way of earning money. Those who are looking for productive strategy, might be interested in
managed forex accounts. But please it's important that you read about
forex trading scam before getting engaged with forex trading.
It is a must to read reviews to make a decision "
is forex a scam?" before you invest money into trading activity. This is important, don't forget that we are living in the world where info makes life easier.
That is why if you are properly armed with the info in your sphere of interest you can be sure that you will in any case find the solution to any bad situation. So, please make sure to get back to this web site on a regular basis or - best of all - sign up to its RSS. In such an easy way you will have your hand on the pulse of the freshest info updates here. Blogs can be helpful, you just need to know how to use blogging for the currency exchange market.
Dec 1 2010
It is a well-known fact that forex trading is a developing industry, but many traders find that it is difficult to become a trader. The main problem of the most beginners in forex trading is that they do not know how to manage their money successfully.
This can be important because even if you use a successful trading strategy, you can still lose your savings if you play with big stakes that you can not afford. The greatest mistake is when you use a gambler’s way of thinking and open a large position when you are confident about a specific set-up that may happen.
Of course you can be lucky and enjoy some great winnings, mainly if you use much of leverage when opening the position. Nonetheless, it takes a couple of losing trades to decrease your trading investment, use stop losses lest you should not lose all your savings.
So, you should give up an idea to find a get-rich scheme in forex trading. It is gambling and it is not a sure way to make stable incomes on a long-term basis.
Use an effective strategy of building your trading pot gradually and steadily. Since you are using a good trading strategy, you will see that your account will increase on a permanent basis just because the size of your positions will grow according to your trading finances, if you subject a definite part of your money on every trading position.
For instance if you are ready to risk 5% of your money on every set-up then you will be risking $500 per trade if you start off will $10,000. Nonetheless if your account goes well, your winnings will go up whenever experiencing some winning trades.
As for me, I do not think that you should be risking 5% on every trade. I think that 3% is more suitable and reasonable amount. We all aim to achieve a 100% success rate, but it is unrealistic goal, so you should take into account that you will experience losses along the way, so risking 3% of your investments is a reasonable approach.
A very effective strategy is to make your winning trades go for as long as possible because this will decrease your success ration and it also means that your winning trades will be in surplus. For instance if you risk 3% of your finances on every set-up, you can find that a trade moving heavily in your favour could easily make the equivalent of 6 – 10% of your overall fund.
So, I should stress the point that it is important to protect your trading finances and use a good staking plan when trading the forex markets. If you do not do this you will be risking your savings.
Because of hard times in the world economy Forex has become a very popular way of earning money. Those who are searching for effective strategy, might be interested in
managed forex accounts. But please it's important that you read about
forex trading scam before getting engaged with forex trading.
It is obligatory to read unbiased reviews and perform
forex scam check before you invest money into trading activity. This is important, don't forget that we live in the world where knowledge quickly enhances the quality of our life.
Due to this if you are properly armed with the knowledge in your topic you can be sure that you will always find the solution to any bad situation. So, please make sure to get back to this web site on a regular basis or - an ideal solution for you - sign up to its RSS. In such an easy way you will have your hand on the pulse of the latest informational updates here. Blogs can be helpful, you just need to know how to use blogging for the currency exchange market.
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