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.
At the time of these announcements there is a high probability that the market will make a significant move. We do not trade the news, but we do trade after the news has been announced and when an entry signal appears.
Consumer Price Index for the USA
USA Non-Farm Payrolls
USA New Home sales
USA Existing Home Sales
International Trade Balance USA
Trade Balance for Canada
Retail Sales for USA
Retail Sales for Canada
Gross Domestic Product USA
Gross Domestic Product Canada
If you go to www.forexfactory.com you will find the news announcements for the week. When you see one of the above listed be aware that the market will probably make a good move
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 a trader first starts to trade there are many things to learn like:
1. How to use the platform
2. Which trading style I should use
3. Which indicators should I use
4. What time frames best meet my life schedule
5. How much money should I trade with
6. How much should I place on each trade
7. How much of a loss should I take
There are many other things to consider when trading but the one I want to address here is how much money you should risk in the market at one time. Here is one formula of how to calculate the amount of money you may want to trade at any one time.
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.
Having two or more versions of the trading platform can be helpful by putting different accounts or charts on each platform then watching both at the same time on different monitors (if you have two monitors).This way it is easier to track more stuff and have larger screen shots of what you are looking at.Below you will find the instructions of how to download two or more versions of the MT4 trading platform
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.