6 of 10: Lack of Psychological Preparation
Awareness #5- Lack of Psychological Preparation
When a trader is using a live account he pays more attention to the results, the cause and effects, or at least he should. This gives psychological feedback to the trader. In demo accounts the ability to learn from emotions during trading is limited. In fact, they are often [...]
5 of 10: Lack of Performance Analytics
Awareness # 4- Lack of Performance Analytics
Traders have the account history to monitor what they have done on their trades but they lack the discipline or knowledge on how to use this information.
We like to suggest that you take blocks of 20 trades to analyze. Once you have completed the first block keep track of [...]
4 of 10: NO-RISK Control
Awareness # 3- NO-RISK Control
Examples of no risk control are: jumping out of an airplane at 10,000 feet without a parachute, going scuba diving without air in your tanks, or going bungee jumping with out a bungee cord. Trading with out any risk control will have the same disastrous out come. To have a positive [...]
3 of 10: Let’s See What Happens Trading
Awareness # 2- Let’s See What Happens Trading There is NO penalty for just putting on any trade at any given time in a demo account. Because there is no penalty when demo trading a trader can fall into the habit of not putting on a stop loss, not managing the trade, and just [...]
November 24th, 20082 of 10: Trading The Big Dollar Moves
Awareness #1- Trading The Big Dollar Moves
When trading, how does a trader know which move is going to be the big move. They don’t. Trying to catch the big trades alone to get rich quick is a destructive habit. A trader should take all good signal trades. By doing this, they will make a lot [...]
Trade Journal Entry 11-21-08
This week has been a productive trading week. I have been spot on in my trades. I am up in all of my accounts for the week by the follow percentages: (1) 3%, (3) 5%, (1) 13%, (1) 23%.
It is Friday morning and I have been at the computer for a little over 30 minutes [...]
1 of 10: Take Demo Trading Seriously
We are about to begin a 10 post series that we are really excited about. In this series we will go over the importance of demo trading as part of a traders educational process. We will release one post on it for the next 10 tens. Demo trading should not be taken to lightly. [...]
November 20th, 2008Knowing When To Stop Trading
If you talk to enough traders you will find that most traders can make money in the currency market. The big issue is that most traders cannot keep what they make. We might think it would be easy to hang onto the money because we made the money while trading but as we all know [...]
November 19th, 2008How To Win At Trading
The inspiration for this article came from the famous football coach Vince Lombardi.
Put your faith in the basics. You don’t have to have great entries and exits but you do have to have good money management. Good money management will win more often than not and preserve capital. Every trade boils down to doing the [...]
Understanding Margin, Leverage, and Margin Calls
In the following illustrations you will see the equity level change and the Margin Level % change. There are several views of the change in a positive direction and one view with a negative direction. The Margin Level % is calculated by dividing the equity by the margin. In the illustration below we take [...]
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