torsdag den 8. september 2011

How to manage your losses?

How to manage your losses?


The worst part of the loss is that it tends to create pessimism. Operators should not feel bad when they lose money if they fought the trend of the market, or violated their trading strategies. There is no reason to feel bad about the losses if the discipline of negotiation has been successfully used. We have already discussed the logic of the market in an article and it said that two traders who follow the same system can have different results, then the losses are very common in the world of FX.




Analyze losses, then let them go forward, it's the best thing to do.

Understanding the relationship of man to time is one of the greatest challenges of life. When man becomes free from the constraints of time, he lives life to the fullest and reach goals on its own terms. Pessimism trap traders in the past, present and deprives them of their future. Imagine a world without time, where death is not an end of life. If money was not the result of your work-related behavior, then who are you?

Where are you and what do you do? Who shares this life with you? How will you allow a loss of trading today affect your life for five years or more? The problem with self-realization is that many people have a self-destructive mentality. Traders destructreurs self-destruction do not stop their accounts. Markets offer unlimited opportunities for self-sabotage, as well as for self-fulfillment. Act on your internal conflicts in the market is a very expensive proposition. Traders who are not at peace with themselves often try to address their conflicting desires in the market. If you do not know where you go, the wind will take you somewhere you never wanted to be.

It will be beneficial to turn vore loss of a bad memory for an experience that you probably will in the future, as it flows into the sea of ​​pessimism and regret that only destroy your account and damage your life.

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How to trade without pressure?

How to trade without pressure?



The trade is a bit like playing sports. Players must remain on their objective, calm, and do not crack under the pressure of wanting to be "the best" or "perfect".



in 2010 the Barcelona team seems to play "so well" that some say they are "invincible". Throughout the season, they were the only unbeaten team, until they lost 2-0 against a small team that has just arrived in La Liga. What is surprising about this loss is not that Barcelona have lost, because every team can lose. That was how they lost and how they seemed to be defeated psychologically.

The first few minutes they seemed to be stunned and shaken. For the rest of the game, they could not even make an organized attack. It was unexpected and hard to believe. They knew how to win, but, upset and overturned, they did not know how to get back up.

The same thing can happen for a trade, but unlike a football game that may threaten your account and your future. So how to overcome this?

The most obvious way to relieve pressure is to think of your chances and carefully manage the risks. It is worth remembering that you can not win all the time, but after a series of trades, you start to make money in the long term. It is also important to manage your risk. Determine your initial risks and do not risk a small amount of your capital on one trade. This reduces the pressure, you can be more open to see the opportunities the market offers. Above all, do not crack under the pressure of a financial loss.


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Things you should know about trading!

Things you should know about trading!


How difficult is it to trade on the Forex market? How long does it take to really be able to make real trades?




Trading on the Forex market has many advantages over other financial markets, the most important are: superior liquidity, market 24 hours, better performance, and others. Traders and investors see the market for a new foreign currency speculation because of these advantages. Does this mean it is easy to make money on the Forex market? Not at all.


Brokers confirm that 90% of traders end up losing money, 5% of traders end up in the balance and only 5% of them arrive at positive results. But is it more difficult to control trading that control other activities? I do not think so, if we're talking about musicians, writers, or even other businesses, the success rates are substantially the same, there are a whole bunch of them who have never had the upper hand.

Now that we know it is not easy to achieve results, why some traders come to success while others fail to do so? There is no firm answer to this question, or recipe to follow to achieve consistent profitable results. What we do know is that traders that reach the top think differently. Yes, they do not follow the crowd, they are an independent part of the crowd.
A few things that separate top traders from the rest are:

The forex education: They chose to learn all the unique and important aspects of trading. The best traders know that every trade is a learning experience. They approach the Forex market with humility, otherwise the market will prove them wrong. The money management: avoiding the risk of ruin is a primary subject for the best traders. After all, you can not succeed without fund your trading account. Trading psychology: They are aware of all the psychological problems that affect the decisions made by traders. They agreed that each individual can arrive at two likely outcomes, and it can not be always on the winning side. The trading system: the traders have their trading system. They follow it rigorously, because they know that only trades that are reported by their system have a higher success rate.


These are, among others, the most important factors influencing the success rate of traders.

We now know that it's not easy to trade, but it's possible. We also discussed the most important factors influencing the success rate of traders. But, how long does it take to get positive results? This differs from one trader to another. For some, it could take a lifetime, and still do not get the desired results, for others a few years are enough to get results. The answer to this question can vary, but what I am making here is that the negotiation is not something you can do in one night.


Successful trading is not an easy task, a process that can take years to achieve the desired results. There are some things that every trader should consider that and
could accelerate the process: having a trading system, using the money management, being aware of psychological problems, and follow your trading system with discipline and your trading plan.


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Mechanical or discretionary: which best suits your personality? Mechanical or discretionary which best suits your personality?

Mechanical or discretionary: which best suits your personality?
Mechanical or discretionary
which best suits your personality?






There are basically two types of trading systems, mechanical and discretionary systems. The trading signals that come out of mechanical systems are mainly based off technical analysis applied systematically. On the other hand, discretionary systems use experience, intuition or trial to indicate the correct time of entry and exit. But what works best? Or, more importantly, one that best fits your trading style? These are the questions which we will try to answer in this article. We will first analyze the pros and cons of each system.

Mechanical systems

Advantages: This type of system can be automated and tested efficiently. It has very rigid rules. Mechanical traders are less susceptible to emotions than discretionary traders.
Disadvantages: Most traders are testing a system that incorrectly. The Forex market is always changing. The Forex market (and all markets) has a random component. Market conditions may seem similar, but they are never the same. A system that worked successfully last year does not necessarily mean it will work well this year.

Discretionary systems

Benefits: Discretionary systems are easily adaptable to new market conditions. These are business decisions based on experience. in this system traders learn to know which signals are more likely to succeed.

Disadvantages: They can not be tested or automated, since there is always a decision to make. It takes time to develop the necessary experience to trade successfully and follow operations in a manner discrétionnaire.Au early can be dangerous.


Now, who is the one who best fits your personality. For example, if you are a trader who has trouble keeping his trading signals, you might want to use a mechanical system, where your decision will not play an important role in your system. You take only the trades that your system reports.
If the psychological barriers that affect every trader (fear, greed, anger, etc.) puts you in unwanted scenarios, you are also advised to follow the mechanical systems, because you just follow what your system tells you . No further action need be taken.
On the other hand, if you are a trader disciplined, then you are better off using a discretionary system, because discretionary systems adapt to market conditions and you are able to change your trading conditions when market moves. For example, you have a target of 60 pips on a long trade. But suddenly, the market begins to rise quite strongly, then you can move your target to 100 pips.

Can we say that a discretionary system has no rules? This is absolutely untrue. Discretionary trading systems means that once a trader finds its configuration, it then decides what to do. But every trader still needs certain rules that must be followed, such as the size of the position, conditions that must be met before thinking of entering the market, and so on.


Whether you choose then? Being a discretionary trader or dealer mechanics? there are some important points you should consider: You must ensure that the trading system you are using totally fits your personality. You must also have a few rules and above all have the discipline to follow them. Take your time to build the perfect system for you. It is not easy and requires time and hard work, but in the end, if done correctly, it will give you positive results. Before trading a real account, try on a demo account or even a small account.

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614

what is the time to enter the currency market?

what is the time to enter the currency market?



Once you have decided to enter the world of Forex you will find that foreign exchange has many advantages over the capital markets. Including, among others, the very low margins, free trading platforms, the high leverage, a market open 24 hours a day, 5.5 days a week.




This is my main concern in this article to let you know what time you should be ready to go, so you can expect the most from trade, not just assume that the term open market means you have to chance choose a time in the day to trade. In short, it is important to know the best time to start, because if you want to find a significant number of trades, you will need to enter the foreign exchange market at the best period, ie, when the activity, the volume of transactions, is the highest.

Every time someone, somewhere in the world buys and sells currencies. if a market closes, another market opens. The exchange continues as day becomes night and night becomes day. Giving you full 5.5 days. The Forex market started in New Zealand to Sunday 17 hours GMT-5 and is followed by Australia, Asia, the Middle East, Europe and America in that order and throughout the day and throughout the week until Friday, 16 hours GMT-5 when the U.S. market closes.

Other important things that every trader should know are: the markets of the United States and United Kingdom account for over 50% of transactions on the foreign exchange market, Forex major markets are: London, New York and Tokyo. Nearly two-thirds of NY activity occurs in the morning hours while European markets are open. This may be one of the most important activity is the heaviest trading when the major markets overlap.

So the answer to the question "At what point should I trade?" Is dictated by this last characteristic, you should be trading when the major markets overlap. Now when they overlap?.


Strassenpiraten



Considering the different time zones of the world and time of opening and closing of markets del'Australie, New Zealand, Japan, America and Europe. We can come to the conclusion that there are two important gaps in time when two major markets overlap during trading hours. These hours are 2:00 to 4:00 GMT-5 (Asia / Europe) and from 8:00 to 12:00 GMT-5 (Europe / N. America). So if you want to catch the best opportunities for exchanges of the day and you are in the Americas, you must be prepared to wake up early or stay up late sometimes. Of course, things change in the world. So what's the best part of the world or you can trade during these periods without need to wake up early? Maybe Ukraine:)

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681

Why do you need to develop your own trading system?

Why do you need to develop your own trading system?

There are many trading systems and strategies offered free articles printed in journals, books and on websites (like ours). Further, you can buy it as software or you can subscribe periodically.




Tradeurs novices say they do not have time, ability, talent or the brains to work on how to negotiate properly. They prefer to buy a program or to subscribe to a trading system for hundreds - or in some cases - thousands of dollars. They say they can do rine unless they are told what to buy, when to buy and how much you need to buy. Some ask me if this strategy or approach is recommended to trading on financial markets. To answer this question, then I am obliged to consider the advantages and disadvantages of using such an approach to negotiation.

There are reasons why a trader uses a system or strategy that someone else has already developed and tested:

1. Ease: A novice trader does not need to study how the market works and how it interacts with the market. He does not need to learn: it does not need to bother with books and seminars. He does not need to test the system, since the seller has already done for him.

2. Tradeur a novice hopes to get a trading system at a negotiable price: sometimes even free.

The dangers of using a system or strategy developed and tested by someone else are:

1. Defective Systems

There are many defective systems there. They may be defective because of their assumptions and mechanisms can not be true, accurate or valid. As tradeur beginner, how can you distinguish good system if you do not know how trading systems are built?

2. Discipline and trust

All systems of withdrawal periods. Some systems can not make good money for six months or a year. Although it was a good system, can you continue to follow him, even if it gives you a loss after loss after loss? How do you do if you do not trust enough? How can you be confident if you do not know the ins and outs of the system and if you have not tested yourself?

I do not think there are people who blindly follow a system even if they had been told he will bring them wealth. I can give someone a trading system, I can provide outstanding results and even hypothetical or real, it would not be able to follow him.
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To overcome the dangers above, I see no way except to learn how to develop your own trading method. It's the only way for traders to know if a system is bonn or not. Once a trader learns to develop systems and strategies, then it may be better equipped to test them too. At this point, it might even find it better to use the system he created, as it becomes more difficult to find another system more suited to its profitability objectives while operating within its level of risk tolerance. It is likely that once he develops this skill level, it simply acquire scaffold systems other than to dissect, take the parts he likes and add them to its own system. .

In conclusion, I would say that if you are not inclined to learn how to develop your own trading methodology, then perhaps you should consider giving your money to someone else to invest. Give it to someone who is a trading system that he developed and tested himself because he is more likely to have the confidence and courage to follow its own set of rules.

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