SKILL YOU DON’T NEED IN FOREX TRADING

In the novel The Mysterious Island, by Jules Verne, five men escaped a civil war prison camp by hijacking a hot-air balloon. Very quickly, they realized that hot-air balloon is carrying them out over the ocean. As the hour passed they saw the horizon receding and realized that they were also losing altitude. Since they had no way of heating the air in the balloon, they began to throw some of the excess weight overboard. Shoes, coats and weapons were reluctantly discarded, yet they rejoice that balloon began to rise. Soon, they drew dangerously close to the waves again and began to toss their food overboard. Better to be alive and hungry! Yet a third time, the balloon began to descend and this time, one of the men suggested they tie together the ropes that connected the balloon to the basket in which they are riding, and then sit on the ropes and cut away the heavy basket. The very floor they had been standing on the fell away, and the balloon rose once again suddenly, they spotted land. With not a minute to spare, they live were spared, not because of any heroics, but because they had learned what they could live without. To be successful in forex market do away with all this:

1. Greed

The way to avoid being greedy with your trading is to find out why it’s so easy to be greedy with the markets. Greed stems from a belief that there is no enough and there will be no enough. The most reason people are greedy when trading forex is because they bring non-market factor(like how badly they need the money, what they need it for, can they afford to risk, etc.) and apply them to the forex market. It doesn’t really makes sense to do this because those non-market factor have nothing whatsoever to do with which direction the market is going. So to take those factor like I want to use this money to buy a car or I need this money to pay my bills. While those things may be true, they don’t have anything to do with which direction the market is heading to. So letting those things control your trading decisions makes you greedy, makes you want more than the market may be offering, and influences your into not acting in your own best interest. Being greedy will shorten your trading career faster than any other mistake you can make. Aviod it.

2. Stop looking for hundred percent accurate indicator.

There is Chinesse proverb that even monkey also fall from tree. There is no technique that will produce 100% profitable trades in forex. There is no single indicator that will make trading a breeze and making money an easy task. This is reality. All you need is define your trading system, set specific goal, the goal must be measurable, realistic and attainable. Meanwhile, a person with good self-discipline but a poor trading method will outperform a person with poor self-discipline but the best trading method currently available.

3. Excess indicator on your trading platform.

This will lead you into over-analying, procrastinating and hesitaty decision. I know many times traders have come into my office terribly depressed because they knew the market was going one way or another; however they failed to take position. When I ask them why did not take the position, there answers are always the same: they were waiting for there all indicators to comform the direction of the market(only two out of the excess indicators were present and they were waiting for the rest.) as a result they miss the trade setup or enter at wrong point. We don’t get paid in forex unless we take a position. Don’t over analyze the trade. Place the trade and manage the trade, if you are wrong, get out. When you over analyze and in hesitate, the net result of all is zero.

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TIPS FOR THE NEWBIE IN FOREX

This blog is written to suggest techniques, secret and a never-ceasing flow of money (pips). This is simply a practical, direct- action, personal- improvement steps with the sole objective of helping the reader achieve a wonderful, satisfying, and worthwhile trade. I strongly believe that if you will read this thoughtfully, carefully absorbing its methods and will sincerely, persistently practice the effective principles and formulas outline herein. You will experience an utmost improvement. In fact too many traders are defeated by the every day bad trade which ought to be benefiting trade, I certainly do not disagree or minimize the hardships and tragedies of trade but there is also wonderful and sophicated method by which we can control or even determine those bad trades. By using the techniques outline in this blog you will modify the bad trade, assume control over your trade rather than continuing to be losing in forex .

Above all, you will attain a degree of trade; experience a new and keen pleasure in trading .Be part of namby-pamby trader who has benefit from these formulas. Learn to trade in a bigger way and forex will rate you bigger way, don’t forget that sophicated method brings pips, while pips is money. Make yourself indispensable (although nobody is indispensable but some are more easily than others) the best kind of pride is that which compels a man to do his best, even when no one is looking. Be on the move, be creative, do standstill, continually look for new ways of doing things until you find a better solution, be pro active, forward thinking. Have a work plan, give yourself target, and stretch yourself if you fail to plan, you plan to fail. Be respected, valued, admired and recognized .

The self-image control everything we do in life, It is what we believe to be true about ourselves. It may not necessarily be true, but it is what we believe to be true.

No matter which group of trader you may be or may be wanting to be - a newbie who has recently started testing waters, an voyager by experience, or someone that making her or his living exclusively from trading, you can be successful. Many aspiring traders are limited in their thinking and assume that they need to have a masive capital, or years of experience, to trade successfully. That’s not the complete truth.

What you need to become a successful forex trader is a right attitude; a positive frame of mind; certain strength to deal with ups and downs, and complete understanding of things. One thing that you should be mindful as a trader or a hopeful trader is that with forex or currency trading you don’t have to succeed all the time.

These days everyone I meet is interested in making money through forex trading. And it’s not astonishing at all. After all currency trading markets transact trillions of dollars, not millions or billions. This makes it even more attractive. People are always asking if it is a fact that you can create wealth from the convenience of your home. And I always tell them that every bit about it is a fact but I also tell them that trading is not that simple. And that it is not a wise idea to jump right in without a strong foundation and mental readiness.

If you are ill-equipped at mental level to handle the uncertainties and stress related to trading, or don’t stay disciplined, focused, and rational, you’ll end up being a losing trader - your higher level experience and expertise notwithstanding. All successful forex traders generally start as small investors with strong mental frames, they didn’t trade more than they could safely risk, and above all when they lose they don’t lose the lessons. They learned from their mistakes, and so they developed systems that worked for them. It’s about being mentally active and smart.

Successful forex traders set goals in terms of revenue and also qualitative improvement in their trading. They’re confident that they will be able to meet their goals. In most cases where I have tried to learn from the stalwarts and what I have read about them, it’s their confidence that helps them to succeed and stay rational, logical, and disciplined in their currency trading. Starting with small, realistic goals can help build your confident outlook along with your abilities. This is the first step towards building a realistic frame of mind to be a winner.

I always tell people who join me that there aren’t different techniques for different levels of forex traders because trading principles are the same for everybody in the markets and that are: focused, confidence, discipline trading creates success.

Since we are on the topic I would also like to take the opportunity to share another important fact with readers. It may sound strange but it’s true - most forex traders cannot accept big profits even when they strike the right deal and earn it. It’s disappointing but true that most forex traders fail not because they can’t restrict losses, but because they don’t have the courage to accept profits.

We will go deep into this and see why this happens. The fact remains that currency trading is risky, but the irony of situation is that most traders try so hard to play, save and restrict risk that they hardly give themselves any chance of making profits. As a result of this playing narrow leads to the following outcome.

They choose to day trade. These traders think that this is a low risk of trading, whereas the fact is that it’s the highest risk form of currency trading which such a non risk taking trader can do, because if things go wrong it guarantees a wipe out of equity.

Most traders also like to believe that they will make money by keeping the risk low and having tight stops, but when they implement it as strategy they find out that they get stopped out all the time. So they do not end up gaining at all. If you have faced this situation learn your lesson and move on.

These safe playing traders do feel good when they get a profit, but these are not often and minor and they never pay for their huge amount of losses.

The result is like I already mentioned earlier - Complete equity wipe out.

The next outcome about choosing to day trade is that they decide to follow the trend.

There are these other category of traders who trend follow and aim to make a profit and yet, with all the indicators pointing to a continuation of the trend - they take profit or get stopped out. This also results in the same old story. And it is certainly not a good mental attitude if one wants to stay in trading and succeed at that.

These guys end up earning only a minor profit, when they could have earned a huge profit, had they been more realistic and logically in their approach to trading. When these forex traders get any profit on their forex trading system, they get excited and the bigger it gets the more they want to take it before it gets away.

As normal movements and volatility eats into the profit of these safe playing traders, they panic and move their stop up or snatch the profit. Most traders are so obsessed with keeping the risk low that I openly tell them that they may as well not trade at all. What they should do is learn a few lessons to attain mental fitness required for trading.

To round it off – what every individual wanting to be a successful trader needs to build the courage & conviction to run profits and understand that as a trader he will have to take risk to get closer to goal of earning a steady above average profits over the long term.