Here is a comment from a trader that is trading with price movement rather than the trend.
“This really reminds me of my experience as of late. Every time the market moves against me, I wait until I just can’t take any more unrealized loss, then reverse the position hoping that the momentum will help me recover some of the loss, get me to BE, or even profit. Soon after I do this, the market reverses its direction and instead of putting me back in the green, exacerbates the situation. Worse yet, I come to realize that had I kept the original position, I would not lose or even gain from it. Effectively, the initial bad decision soon snowballs into a serious loss.
I was reading an article about a guy who started a computer business when the industry was new and growing. As he grew and was successful he noticed that there were many others doing the same thing. There was no longer anything unique about his company. He decided to take the gamble of focusing on data storage.
He said that even though a company may downsize the data never does. So he felt that there would be a place for his business for a long time to come. Keeping track of data storage for companies.
I was thinking how this is like the currency market. A currency pair may trend or channel but there are still good trades and an opportunity to make you some pips. News comes and goes the currency pairs go up and down. If you specialize on learning how to use some indicators you can trade any currency pair that is making a move rather than only trading one or two currency pairs.
What we are saying is, specialize on learning how to use a few indicators and not generalize in learning a lot of currency pairs. You might have your favorites but be ready to trade any currency pair that is moving. This way you will be an indicator specialist being able to move between the time frames to find the best entry point.
Be good at the trading platform and the use of a few indicators to enhance your currency-trading career.
When we refer to our broker we are referring to the people we talk to when we contact that broker. It may be someone in the funding department, the accounts department, the client services department, or a person placing a trade for us. In any event they are people.
Yes the broker should be there to serve the client or trader after all it is the trader who keep the broker in business. Since we are dealing with people we will always get better service if we show a little tact and politeness toward the person helping us. If we are rude we may still get our concerns taken care of but how much better would it be if we treat the person helping us with a little kindness and respect. Little do we know that that person may have the answer to a question that we didn’t even think to ask.
Client Service people are more helpful, more flexible and more respectful to their customers if they are treated with respect. Show a little courtesy and be polite, see if that helps. You may not have any problems with your PR skills we just thought it would be good to know that employees a
I once heard a trader say that after he made some money in his account he would take out the original investment. Then he was only playing with money he didn’t originally have making the losses not hurt as much. It became easier to make money because he had taken the pressure off himself.
By doing this he was better able to stay in control of his emotions and not get caught up in trading the money. He was just trading period. He was better able to follow the rules and not get caught up with the placing of the stop loss, getting out early, letting the news bother him and listening to others. He could just concentrate on trading.
Find a way to forget the money and just think about the mechanics of trading and see what a difference it makes. When you are trading your demo account you don’t get as involved with the money, you can concentrate on following the rules and you make money and wonder why you cannot make money when trading your live account.
Just relax and read the market. Trading will become fun again.
I just read an interesting article about when to stop trading live and go back to demo trading. Go to demo when you have lost 9% of your account. Trade on the demo account one week for every 2% of your account that you lost. We all know that it is better to have some money to come back to when you start to trade live again.
There is more to the article but this is what struck me as being of up most importance. It gives us a set point at which to stop trading live. There is no guessing it is straight forward.
Once you have figured out what you have done wrong by going back to basics, you can start trading live again. I thought this would be a good simple straight forward approach on how to get you back in the game.
I think you could even set the loss % to maybe 5% when you are first learning and have just started to trade live. It is better to protect your capital rather than have to save up again. Be cautious and conservative and you will be around as a trader long enough to become successful.
I came across a couple of quotes I want to share with you: “Wall Street never changes, the pockets change, the suckers change, the stocks change, but Wall Street never changes, because human nature never changes” Jesse Livermore “In order to make a success, the trader must act in a way to overcome the weak points that have caused the ruin of others” W.D. Gann
The reason indicators work in any financial markets is because human nature never changes. We remain greedy, emotional, and want things right now. If we can trade by using a system and following rules then we are doing the things other successful traders do. If we chase trades get caught up in one trade that is causing us problems and want more than the market is willing to give then we will do what most of the unsuccessful traders do and that is flounder.
Another way of looking at the quote by W.D. Gann is: If you keep doing the same thing you have always done then you will keep getting the same results you have always gotten. A trader needs to identify their strength and weakness then work on correcting their weaknesses and improve their strengths.
I once heard it said that: “It is insanity to think you can keep doing the same thing and expect to get different results.” Successful traders are successful because they are willing to do the things that unsuccessful traders are not willing to do. Successful traders will keep a trade journal, follow a trading system, and use a set of rules when trading just to name a few things they do.
First of all we must decide why we are trading. Then we must do what it takes to become successful. If we are not willing to do the things that successful traders do then we should never put money into the market we should just continue to demo trade and keep our money in a safe place.
If we trade the news and always lose, stop trading the news. If we chase trades and lose then stop chasing trades, if we trade against the major trend and lose then stop trading against the trend. If we trade without a stop loss and lose then start putting stops on our trades. Success leaves clues so look for the clues. We can be successful at trading if we are willing to change the way we trade when we lose.
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.
When exiting a trade, you can do so under four different assumptions. In the best of worlds, exit technique number one is the profit target. Exit technique number two is the trailing stop, which comes into play when the market is starting to move against you after you have accumulated an open profit. Number three is the stop loss for the occurrences when the trade goes against you right off the bat. Finally, you also can exit with a time-based stop, possibly in combination with any of exit techniques one to three. The time based stop is setting a time like at end of the day or when you leave for work etc.
One bad thing trader’s fall into the habit of doing is to try and get every last tick out of a trade.We have all experienced a trade that started off great then turned out to be a looser.Then there is the trade that starts out with a small loss and turns out to be a really large loss.
No one can pick the tops and the bottoms so when it is time to get out of a trade just get out.Each trade is only one of many ifa trader watches what is going on.If a trader lets it get out of hand then the trade may be the only one.
