It should be noted that millionaire traders, Elder, Williams and
some others are in fact professional psychiatrists. And it is not
accidental that not the economists are the leaders and most successful
traders, but professional psychiatrists and psychotherapists. Think
about it. You will become a successful trader when you understand why it
happens with Forex. You will understand what your Forex mistakes are,
and why you are making them. And when you correct these mistakes you
will become a trader who has no psychological barriers and obstacles on
his way to better earnings in the Forex market.
So, why do the psychiatrists make better traders than economists
who, as one would think, have the Forex market at their finger tips?
The economists are confused by:
— the fact that exchange rates are not always related directly
to the economic circumstances in the countries. Well, do you know any
economist who would be bidding for low fx rates when the economic
situation is getting better and better? Or the one who admits that
technical analysis of currency pairs is more important for Forex trading
than the fundamental one? Any economist is confident that this can
never happen because he knows all the economic dogmas. But it happens in
the Forex. After all, how can a trader lose with the currencies moving
up and down by the economic rules? The currency will surely react to the
economic changes in the country, but who knows when and how? Here is a
tip: there is the Elliott fifth way to teach a lesson to the ones who
believe that fundamental knowledge is enough (before the trend turns,
the currency spurts absurdly by the old trend), to confuse and draw the
newbies into the game, while the experts wait for the trend to turn
back.
— the lack of psychological knowledge that helps to understand the behavior of the crowd. And that is self-evident.
Are there any methods to overcome this fear?
It seems that every Forex book, every article offers efficient
solutions for psychological difficulties experienced by the traders.
IN FACT NEITHER OF THESE BOOKS CONTAINS METHODS TO OVERCOME THE FEAR EXPERIENCED BY A FOREX TRADER!
But what do these books offer instead?
Almost every book of this kind consists of two unequal parts:
— the bigger part of the book narrates about traders' problem
that interfere with their Forex work and make it unsuccessful
(nervousness, doubts, worries, fear, sleep deprivation, etc.). As if the
traders do not know their own problems.
— the considerably lesser part contains conclusions and
recommendations to the traders who are to solve their problems and
overcome their fears to become successful.
The conclusions are disappointing:
Many psychiatrists realize that the new field opens before their
eyes — now they may treat traders whose number amounts to millions all
over the world and is growing with every day. And since most traders
have a dream to become as successful as George Soros and other famous
traders, this new field promises to be rather lucrative.
One thing is bad though: the overwhelming majority of these
new-sprung trader brain specialists do not even know what the Forex is
all about.
by Alexander Brin
Learn to analyze day trading stock, online day trading, day trading software and online Forex trading. We focus on different aspects of Technical, Fundamentals analysis and Forex robot.
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Friday, October 25, 2013
Why is Swing Trading in Forex Popular?
Swing trading in forex is a form of quick trading performed by
investors aiming to maximize profits and minimize risks by making
strategic trades that last from 3 to 30 days. This is a very popular
style of trading among investors and day traders across the globe. Swing
trading depends on short-term variations in the market, forcing traders
to react to the changes in a rapid manner. This form of trading depends
more on stress price patterns than actual value.
As a trader, you do not wait for currency prices to hit either high or bottom, but wait for short term fluctuations in the market. Swing trading is highly favored by day traders, rather than by large financial establishments or brokerage houses. Swing trading is most profitable when markets are stable.
Advantages of Swing Trading in Forex
The reason for swing trading in forex being popular is the many advantages it offers over other conventional forms of trading, like buy-and-hold investing and position trading. The returns tend to be higher for an average trader. You can, for instance, trade for a short while and pay your monthly bills. Swing trading is, however, subject to market fluctuations and conditions. Like all forms of trading, swing trading is susceptible to lean phases.
When executed properly, you will experience less risk as compared to other methodologies. Unlike conventional investors whose fortunes are tied to bulls and bears, swing traders are free to exit losing trades and step out. There is an exit strategy for swing traders. Another strategy for a swing trader is to short the market even when the market suffers a slowdown.
Swing traders can have a flexible schedule unlike most day traders. All you need is to do some market research after work, and place new trades the next morning when the markets open. This style of trading offers more attractive returns due to its less labor-intensive requirements. You also need not worry about:
by Kitz S
As a trader, you do not wait for currency prices to hit either high or bottom, but wait for short term fluctuations in the market. Swing trading is highly favored by day traders, rather than by large financial establishments or brokerage houses. Swing trading is most profitable when markets are stable.
Advantages of Swing Trading in Forex
The reason for swing trading in forex being popular is the many advantages it offers over other conventional forms of trading, like buy-and-hold investing and position trading. The returns tend to be higher for an average trader. You can, for instance, trade for a short while and pay your monthly bills. Swing trading is, however, subject to market fluctuations and conditions. Like all forms of trading, swing trading is susceptible to lean phases.
When executed properly, you will experience less risk as compared to other methodologies. Unlike conventional investors whose fortunes are tied to bulls and bears, swing traders are free to exit losing trades and step out. There is an exit strategy for swing traders. Another strategy for a swing trader is to short the market even when the market suffers a slowdown.
Swing traders can have a flexible schedule unlike most day traders. All you need is to do some market research after work, and place new trades the next morning when the markets open. This style of trading offers more attractive returns due to its less labor-intensive requirements. You also need not worry about:
- Scrutinizing financial statements like most investors
- Monitoring market crests and troughs like position traders
- See your profits vaporize before your eyes due to unfavorable market conditions
- Using complicated systems like other traders
by Kitz S
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