» Types of Traders http://www.forexstrategysecrets.com Thu, 22 Jul 2010 15:58:28 +0000 http://wordpress.org/?v=2.9.2 en hourly 1 The One Thing Every Trader Should Have In Their Trading http://www.forexstrategysecrets.com/blog/the-one-thing-every-trader-should-have-in-their-trading.htm http://www.forexstrategysecrets.com/blog/the-one-thing-every-trader-should-have-in-their-trading.htm#comments Wed, 26 Aug 2009 20:00:25 +0000 Jed http://www.forexstrategysecrets.com/?p=2517 The One Thing Every Trader Should Have In Their Trading

Back on January 17th, 2008, we posted a blog about the 6 things to leave out of the market.  They are:

Emotion: Wanting the market to go a certain way.

Revenge: Some people think they will get even with the market…

Anger: People will get angry with themselves and do foolish things…

Pocket book: When you are getting out of the market because you can not afford to be in it in the first place…

Greed: When a trade has ended expecting it to give you more. Then it turns and you lose all you just made.

Fear: Many times people have fear because they are trading with money they can not afford to lose.

Then, we discuss briefly the power of a good trading plan and sticking to it.  Then I saw that a comment was made by
Jewel, which reads, “You make some very good points here. I would say one thing that MUST be used
is patience. I think a lot of people get impatient when they are starting out: they want to make big money fast. Then they
make big trades and can lose a lot.”

This is extremely important and I agree whole heartedly with Jewel regarding this.  It is sad because I have seen many traders that are no longer trading because they did exactly what Jewel mentioned.  I think we need to take this to heart.  All of us can stand to evaluate how we are veiwing the market.  This world has a pandemic of impatience and this is a bad state of mind to be in;
especially as a trader.

]]> http://www.forexstrategysecrets.com/blog/the-one-thing-every-trader-should-have-in-their-trading.htm/feed 1 5. Create a magnificent trading picture. 5 of 12 http://www.forexstrategysecrets.com/blog/5-create-a-magnificent-trading-picture-5-of-12.htm http://www.forexstrategysecrets.com/blog/5-create-a-magnificent-trading-picture-5-of-12.htm#comments Wed, 05 Aug 2009 20:00:03 +0000 Kirk http://www.forexstrategysecrets.com/?p=2091 This entry is part 5 of 8 in the series Create Trading Plan

Let your trading journal teach you what you need to do more of. Create collateral (a pile of good trades in your
trade journal) that educates you and compels you to see the way you should trade. Make sure your trading journal
include tons of examples of your successful trades.  Make notes of what you do right and what you do wrong.  The
notes should include the processes and procedures you used to take a trade.  Just remember, you are not going to
want to spend hours going over your records so make the information to the point to accelerate your learning curve.

]]> http://www.forexstrategysecrets.com/blog/5-create-a-magnificent-trading-picture-5-of-12.htm/feed 0 4. Develop your core strengths. 4 of 12 http://www.forexstrategysecrets.com/blog/4-develop-your-core-strengths-4-of-12.htm http://www.forexstrategysecrets.com/blog/4-develop-your-core-strengths-4-of-12.htm#comments Mon, 03 Aug 2009 20:03:56 +0000 Kirk http://www.forexstrategysecrets.com/?p=2089 This entry is part 4 of 8 in the series Create Trading Plan

Identify the top three compelling strengths, you have uncovered for trading the currency market. Your strengths
should be easy to spot. Then make those strengths the core foundation that you use when trading.  You may be good
at picking entry points. You may be good at managing the trade once you are in a trade.  Now you should work on
becoming a mechanical trader, you might also have to tweak your trading plan to work around your strengths.  This
is all part of finding out what your core strengths are and learning how to have your strengths work for you.

]]> http://www.forexstrategysecrets.com/blog/4-develop-your-core-strengths-4-of-12.htm/feed 0 Big Gain, Little Gain = Big Loss, Little Loss Which Is For You? http://www.forexstrategysecrets.com/blog/big-gain-little-gain-big-loss-little-loss-which-is-for-you-2.htm http://www.forexstrategysecrets.com/blog/big-gain-little-gain-big-loss-little-loss-which-is-for-you-2.htm#comments Mon, 25 May 2009 12:47:14 +0000 Kirk http://www.forexstrategysecrets.com/?p=1639 There are forex traders that make livings by making large gains with large losses.  Then there are
traders that make a living with small gains and small losses.

Which ever style a trader uses they must be aware of what they are doing and keep the size of the
wins and the size of the losses in relation to one another.
Either style is great but a trader should not get them mixed up with large losses and small gains.

It would be great to have large gains and small losses and how would that be done?  The only way
this can happen is by using good money management.

The size of the winners should be relative to that of your loses. Large wins, large losses, small
wins small losses.  When a trader knows when to get out if a trade is going no where and stay in
when the trade is taking off then they have really developed some skills of being in tune with the
market.

Just keep studying, practicing and developing your skills for the long haul.  It can happen if a
trader does not go all in for the big one and lose.  Slow and steady will win the game.

]]> http://www.forexstrategysecrets.com/blog/big-gain-little-gain-big-loss-little-loss-which-is-for-you-2.htm/feed 0 Drawdown’s Against Profits And Confidence http://www.forexstrategysecrets.com/blog/drawdown%e2%80%99s-against-profits-and-confidence.htm http://www.forexstrategysecrets.com/blog/drawdown%e2%80%99s-against-profits-and-confidence.htm#comments Wed, 04 Feb 2009 13:21:13 +0000 Jed http://www.forexstrategysecrets.com/?p=801 (1 of 2)

Kirk and Jed,

I wish not to make this eloquent or excessive in verbiage.  With this being said, let me continue.

This week was a difficult week.  Trading was down as were my emotions and confidence.  In times past, I would not let any given loss disrupt that which I was trying to obtain.  However, a very good friend of mine asked me if I would manage about $18,000 for him on the foreign exchange.  Reluctantly, I agreed to so do.  (He had been trading a bit on his own, had used Launch Pad, the Norwood Stop, et cetera, but wasn’t accomplishing a lot in his own trading.)  He let emotion get in the way.  He had suffered a few severe losses while trying to get even with the market.

I began trading his $18,000 first thing Monday morning with excitement, anxiety, expectations, and goals.  Monday’s trading went well, and we were able to grow the account to $21,500.  Tuesday, likewise.  However, on Wednesday I took shorted GBP at exactly the wrong place and it turned to go against me.  Because of my desire to make sure this individual’s account remain positive and "impressive," I let it go against me about 70 pips.  Not a huge loss, but not terribly small either.

It happened again.  And a third time.  I was worried about that which he would think and feel regarding my abilities to manage his funds and/or trade my own funds.  He has seen my trading reports and knows that I have had great success in trading the forex.  However, because of perfectionism, I wanted his account to remain perfect.  So, I went against my rules of trading and placed another trade following three consecutive losses in hopes of "making up" that which I lost.  Unfortunately (and fortunately) it happened again.  Being frustrated, I entered a fifth trade which … again … went against me.

By this point in time, my own confidence was drained, my emotions were utterly wrecked, and I hadn’t the faintest idea what to do.  Now, the account was still positive from the beginning capital of $18,000; however, I had grown it to $25,600 in 2.5 days.  (The five consecutive drawdowns brought it to $22,600.) So, what did I do?….
 

]]> http://www.forexstrategysecrets.com/blog/drawdown%e2%80%99s-against-profits-and-confidence.htm/feed 4 Become Good at Losing (16 of 26) http://www.forexstrategysecrets.com/blog/become-good-at-losing-16-of-26.htm http://www.forexstrategysecrets.com/blog/become-good-at-losing-16-of-26.htm#comments Wed, 31 Dec 2008 12:20:15 +0000 Kirk http://www.forexstrategysecrets.com/?p=595 This entry is part 16 of 26 in the series The Disciplined Forex Trader

We get a lot of questions and comments about what this means.  You should know by now that you will lose sometimes when trading.  That does not mean you will lose all of your account unless you use poor money management techniques or none at all.  It means don’t get all emotional about a loss they are going to happen and the sooner you can get over it and move on the faster you will become a good trader. Accept the fact that you are going to have losing trades throughout the day or week. Get out of your losers quickly. Love to get out of your losers quickly. It will save you a lot of trading capital and will make you a much better trader.

]]> http://www.forexstrategysecrets.com/blog/become-good-at-losing-16-of-26.htm/feed 1 “Ham and Eggs: A days work for a chicken, a life lost commitment for a pig.” http://www.forexstrategysecrets.com/blog/%e2%80%9cham-and-eggsa-days-work-for-a-chicken-a-life-lost-commitment-for-a-pig%e2%80%9d.htm http://www.forexstrategysecrets.com/blog/%e2%80%9cham-and-eggsa-days-work-for-a-chicken-a-life-lost-commitment-for-a-pig%e2%80%9d.htm#comments Fri, 10 Oct 2008 15:34:21 +0000 forex http://www.forexstrategysecrets.com/blog/%e2%80%9cham-and-eggsa-days-work-for-a-chicken-a-life-lost-commitment-for-a-pig%e2%80%9d/ For the record I love ham and eggs.  This is not a plea for pita.  I saw this quote and had Awe ha! Moment, I wanted to share.
Let me ask a personal question.  How do you trade?  Like a pig or like a chicken?  A pig trader is one who jumps into the market unaware of the risks the conditions of the environment inexperienced in the navigational skills of forging the waters.  They foolishly throw all they have at it with no thought of the consequences.  They feel that the market owes them something after all the market was made for them just like the farmer’s slop.  They fail to see the end result because they are caught up in the moment.  They become all consumed by the moment that they fail to see that they are losing everything.  The end of this road leads to a bleak end, nothing to show for it, and worse off than when they started out.
The chicken on the other hand produced small results every other day or so.  Only because they developed the ability over time practiced and perfected do they lay an egg.  Each time they do it does take effort properly selecting the right position to begin and knowing the outcome before entering the next box.  The chicken trader understands the importance of process, effort and repetition.  After each day a perfect little packaged, a record of the fruits of its labor.  A little effort everyday results in a life of productivity.

]]> http://www.forexstrategysecrets.com/blog/%e2%80%9cham-and-eggsa-days-work-for-a-chicken-a-life-lost-commitment-for-a-pig%e2%80%9d.htm/feed 1 Successful Traders Summaries http://www.forexstrategysecrets.com/blog/successful-traders-summaries.htm http://www.forexstrategysecrets.com/blog/successful-traders-summaries.htm#comments Wed, 01 Oct 2008 17:26:39 +0000 forex http://www.forexstrategysecrets.com/blog/successful-traders-summaries/ Here are some thought by some of the best stock traders. Good trading principles apply in all markets.
Also, everyone who is truly interested in Forex should read as widely as possible.
Jesse Livermore: The World’s Greatest Stock Trader by Richard Smitten

1. Don’t lose money
2. Always Establish a Stop
3. Keep Cash in reserve
4. Let the (Successful) Position ride…until you have a Clear Reason to Sell.
5 Take the Profits in cash…and place 50% in a separate account
Lessons From the Greatest Stock Traders of all Time by John Boik

1. Trade with the Trend
2. Cut Losses short
3. Let Profits run
4. Manage Risk
How Legendary Traders made Millions by John Boik

1. Understand the General Trend of the market
2. Use the Knowledge of History in your Study and Observation of the Markets
3. Use your Own Research and Don’t Listen to Others
4. Buy the Leaders
These summaries of good traders thought are worthwhile. We thought that you might be interested in what other good traders think about the markets and how to trade.

]]> http://www.forexstrategysecrets.com/blog/successful-traders-summaries.htm/feed 0 Personality And Trading Style http://www.forexstrategysecrets.com/blog/personality-and-trading-style.htm http://www.forexstrategysecrets.com/blog/personality-and-trading-style.htm#comments Fri, 29 Aug 2008 16:47:51 +0000 forex http://www.forexstrategysecrets.com/blog/personality-and-trading-style/ Much of a trader’s success has to do with his personality matching up with the trading style he chose.  No matter what the approach is you must plan your trades and trade your plans.  If not, your strategy is no better than random, and that is hardly a stable platform for long-term success.
If a trader trades money he can’t mentally afford to lose it will lead to trading the money and not the trading plan.  If a trader finds it difficult to wait through a trade that is going against him or does not move as fast as expected in the beginning then finding a strategy that minimizes both of these scenarios, may be even more important than seeking  out rules that produce the absolute largest profit per trade.
For swing traders, there are plenty of trading opportunities that can become profitable trades.  In the end the trading strategy must fit the trader’s style, personality, and risk tolerance.  If the style and personality match up then a swing approach trading in the direction of the overall trend, has the potential to turn many losing trades into winning trades.
Trading a system that matches your personality will take much of the frustration out of trading.  Something that works for one trader may not work for the next trader. So find the strategy that works for you, stick to the rules, and be happy and profitable.

]]> http://www.forexstrategysecrets.com/blog/personality-and-trading-style.htm/feed 0 Are You A Trade Rusher? http://www.forexstrategysecrets.com/blog/are-you-a-trade-rusher.htm http://www.forexstrategysecrets.com/blog/are-you-a-trade-rusher.htm#comments Fri, 01 Aug 2008 16:48:23 +0000 forex http://www.forexstrategysecrets.com/blog/are-you-a-trade-rusher/



There are traders that lose money month after month, and the reason is that they always rush into trades without studying them carefully and seeing which way the trend is going or waiting for any sort of retracement before entering the trade. They see a breakout on a currency pair and put in orders to buy, once the order is filled they spend the next hour complaining that they bought the high of the move. They always seem to buy when the currency has had a big run up in 10 minutes.

They are scared to miss a big move, and so they rush in and then wonder why they can’t make money. The worst part is that they tend to exit these trades at the bottom of their retracement because they can’t take the pain anymore, and then watch the trade go to new highs, where they buy it again.

Develop patients, discipline, and observation of which way the trend is going. Once the trade comes to you get in and go for a nice ride not a journey of pain.

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