A syno is of what it takes to deal with succe trading the fore market This is the firs
A syno is of what it takes to deal with succe trading the fore market
This is the first article of a series whose purpose is both educational and practical. And above all they aim to be interactive meaning that any comments suggestio or ideas are more than welcome.
Lets start from the basics. The first thing someone needs is very good education. And this requires a lot of thorough research as there are many sources but not all are worth the money for their services. So in this se e an online fore course could be a good idea along with some books. But here comes the first major problem. Which course and which books, which a ects to cover? The technical analysis i ue? The maxim goes with the trend? The candlesticks analysis? And which system to use and follow? There are thousands of them! So before we even begin a trader is confused. And confusion is a very bad enemy but it can be arranged. How it can be arranged? With some simple ste . Such as simplicity. The more you know the better chances you have to succeed trading fore and it all comes down to probabilities.
Education is a must to all trading a ects from stocks to futures to forex. But forex has two unique features. High liquidity and extremely high leverage. And although the liquidity is a very good feature high leverage is not. At least not until you know what you are doing. Here we focus again on education. Besides a participation in a forex course either online or not, an amount that will be put away as an investment for education is the first thing a trader must do. Some ideas are to focus on analyzing the current conditio of the market and to have a bias for a ecific currency pair. A system such as following the trend could be the core of a trading strategy. And a demo account with many virtual trades as many as po ible for a long period of time is the next step.
Now the most important part of the trading action is to make a plan, stick to it and a ly very strict money management rules because if the capital is finished and it very easy this to ha en then our trading career will finish within a few days, months or even hours.
Lets face the truth that trading is not easy. It is unfortunately far easier for someone to lose all his account rather than make wild profits beyond each expectation. That is because emotio and ychology are very crucial for succe . Some of the most important emotio are fear, uncertainty, euphoria and revenge. Revenge comes into play very very often as when someone loses an amount wants de erately to get it back and often the outcome is that more loses come simply because the trader is on the wrong side of the trend!
Discipline and patience are virtues that distinguish a good trader from a mediocre trader. Without ecific goals and a written procedure a trader is like a cargo ship that has sailed without any destination. Someday the fuel will be exhausted and many dangers from the weather to the potential physical damages may ha en. Risks exist all the time. The point is how to deal with them.
One of the most useful phrases is taken from the movie Forrest Gump.Life is like a box of chocolates, you never know what you going to get!
It is true. Be as prepared as po ible. Do not let the brokers excite you promising very high retur and extremely high leverage. Do some very thorough research before opening an account funded with real money. Compare the bid-ask reads and technical su ort to name only a few a ects.
Be very skeptical to previous results as offered from many signal services. The major aim should be to learn to trade and make your own decisio and not blindly follow some others decisio and opinio . Confidence and experience come with the pa age of time.
So we mentioned simplicity before. Being realistic and having a controlled life balance is very important. One major goal should be co istency so as to have the ability to make profits each month and keep them.
Fundamental news is another important i ue and in e ence the technical analysis is the mirror of fundamentals. Expectatio change rapidly and emotio also. And if you think about it emotio and expectatio mainly move the forex market. Most times like the recent Fed rate hike decision a move is under way but the danger is when it will be finished and certainly not getting in at the wrong time after all the move is completed.
The best a roach for a trader would be to set ecific goals and if achieved then stop trading. The worst idea is to trade in a cho y market where random noise will make it difficult to get ecific profits.
So a tested system with very precise rules such as entering exiting and having stop-lo orders may not be a holly grail but is surely one very good a roach to start with and focus on it. Pivot points are such a system. At least it is a good start. They encompa education, discipline, strict criteria, and targets and are a proven system that major players use. They are not foolproof always as nothing is certain but they deal with high probabilities and this is very important.
Also a very practical way is to act as organizes as po ible. Meaning that:
1.Develop your own trading journal where you will be writing down your trades and a brief explanation of what made you place a particular trade so as to evaluate performance. Note each day the major economic releases if any because it is often wise to be out of the market before the release of the news and trade only after having a much clearer opinion of what price action may be. Remember it is all about high probabilities.
2.A risk/reward ratio of 1:2 meaning that you risk an amount to get at least the twice if all go well is suggested but sometimes it is best to be co ervative and even a ly an 1:1 ratio by a lying very strict risk management risking no more than 2-3% of total capital per trade. Survival is everything.
3.It would be a good idea from time to time to have breaks from trading. O ortunities exist always so sto ing trading when lo es of 10-20% maximum of trading capital have accumulated is a good way to revaluate what is going on before a large amount of capital is lost. Trading is not gambling it is a way of investment. The philosophy should be to define realistic goals such as a number of pi per day and if achieved then stop trading. Greed is another bad enemy of traders. On the contrary the notion of compounding profits and retiring a portion of them each month is a good way to build a solid account and keep monitoring its growth.
So in this first article we touched briefly many ideas from education to ychology to a proven trading system etc. Each idea will have more in depth analysis in the very near future. Your comments and suggestio will help us a lot to focus on what you need or want to analyze. Above all interactive communication brings the best results.
Thats all folks!
Contact details :
1.http://www.forexsyno is.com
2.email: admin@forexsyno is.com
This is the first article of a series whose purpose is both educational and practical. And above all they aim to be interactive meaning that any comments suggestio or ideas are more than welcome.
Lets start from the basics. The first thing someone needs is very good education. And this requires a lot of thorough research as there are many sources but not all are worth the money for their services. So in this se e an online fore course could be a good idea along with some books. But here comes the first major problem. Which course and which books, which a ects to cover? The technical analysis i ue? The maxim goes with the trend? The candlesticks analysis? And which system to use and follow? There are thousands of them! So before we even begin a trader is confused. And confusion is a very bad enemy but it can be arranged. How it can be arranged? With some simple ste . Such as simplicity. The more you know the better chances you have to succeed trading fore and it all comes down to probabilities.
Education is a must to all trading a ects from stocks to futures to forex. But forex has two unique features. High liquidity and extremely high leverage. And although the liquidity is a very good feature high leverage is not. At least not until you know what you are doing. Here we focus again on education. Besides a participation in a forex course either online or not, an amount that will be put away as an investment for education is the first thing a trader must do. Some ideas are to focus on analyzing the current conditio of the market and to have a bias for a ecific currency pair. A system such as following the trend could be the core of a trading strategy. And a demo account with many virtual trades as many as po ible for a long period of time is the next step.
Now the most important part of the trading action is to make a plan, stick to it and a ly very strict money management rules because if the capital is finished and it very easy this to ha en then our trading career will finish within a few days, months or even hours.
Lets face the truth that trading is not easy. It is unfortunately far easier for someone to lose all his account rather than make wild profits beyond each expectation. That is because emotio and ychology are very crucial for succe . Some of the most important emotio are fear, uncertainty, euphoria and revenge. Revenge comes into play very very often as when someone loses an amount wants de erately to get it back and often the outcome is that more loses come simply because the trader is on the wrong side of the trend!
Discipline and patience are virtues that distinguish a good trader from a mediocre trader. Without ecific goals and a written procedure a trader is like a cargo ship that has sailed without any destination. Someday the fuel will be exhausted and many dangers from the weather to the potential physical damages may ha en. Risks exist all the time. The point is how to deal with them.
One of the most useful phrases is taken from the movie Forrest Gump.Life is like a box of chocolates, you never know what you going to get!
It is true. Be as prepared as po ible. Do not let the brokers excite you promising very high retur and extremely high leverage. Do some very thorough research before opening an account funded with real money. Compare the bid-ask reads and technical su ort to name only a few a ects.
Be very skeptical to previous results as offered from many signal services. The major aim should be to learn to trade and make your own decisio and not blindly follow some others decisio and opinio . Confidence and experience come with the pa age of time.
So we mentioned simplicity before. Being realistic and having a controlled life balance is very important. One major goal should be co istency so as to have the ability to make profits each month and keep them.
Fundamental news is another important i ue and in e ence the technical analysis is the mirror of fundamentals. Expectatio change rapidly and emotio also. And if you think about it emotio and expectatio mainly move the forex market. Most times like the recent Fed rate hike decision a move is under way but the danger is when it will be finished and certainly not getting in at the wrong time after all the move is completed.
The best a roach for a trader would be to set ecific goals and if achieved then stop trading. The worst idea is to trade in a cho y market where random noise will make it difficult to get ecific profits.
So a tested system with very precise rules such as entering exiting and having stop-lo orders may not be a holly grail but is surely one very good a roach to start with and focus on it. Pivot points are such a system. At least it is a good start. They encompa education, discipline, strict criteria, and targets and are a proven system that major players use. They are not foolproof always as nothing is certain but they deal with high probabilities and this is very important.
Also a very practical way is to act as organizes as po ible. Meaning that:
1.Develop your own trading journal where you will be writing down your trades and a brief explanation of what made you place a particular trade so as to evaluate performance. Note each day the major economic releases if any because it is often wise to be out of the market before the release of the news and trade only after having a much clearer opinion of what price action may be. Remember it is all about high probabilities.
2.A risk/reward ratio of 1:2 meaning that you risk an amount to get at least the twice if all go well is suggested but sometimes it is best to be co ervative and even a ly an 1:1 ratio by a lying very strict risk management risking no more than 2-3% of total capital per trade. Survival is everything.
3.It would be a good idea from time to time to have breaks from trading. O ortunities exist always so sto ing trading when lo es of 10-20% maximum of trading capital have accumulated is a good way to revaluate what is going on before a large amount of capital is lost. Trading is not gambling it is a way of investment. The philosophy should be to define realistic goals such as a number of pi per day and if achieved then stop trading. Greed is another bad enemy of traders. On the contrary the notion of compounding profits and retiring a portion of them each month is a good way to build a solid account and keep monitoring its growth.
So in this first article we touched briefly many ideas from education to ychology to a proven trading system etc. Each idea will have more in depth analysis in the very near future. Your comments and suggestio will help us a lot to focus on what you need or want to analyze. Above all interactive communication brings the best results.
Thats all folks!
Contact details :
1.http://www.forexsyno is.com
2.email: admin@forexsyno is.com
