It's known that most of traders lose because they can not beat their emotions and this causes them to make wrong-timed decisions and lose the most of their trading budget and forfeit quickly.
Trading psychology is known to be the first and most important factor for trading success or failure but its impacts are not initiative by many traders, they are just thinking about getting a good trading strategy but this is only part of the equation for gaining at FOREX trading.
In FOREX trading psychology, two emotions that are constantly present : Hope and fear are destructive emotions and all traders are influenced by them, they are part of all traders' psychology as they are part of the human nature, it just differs from one to the other how can he controls them.
In order to control these emotions and get the best out from your trades, I am listing below some tips that can help you achieve gains from FOREX :
• Trade with a DISCIPLINED Plan: The problem with many traders is that they take shopping more seriously than trading. The average shopper would not spend $400 without serious research and examination of the product he is about to purchase, yet the average trader would make a trade that could easily cost him $400 based on little more than a "feeling" or "hunch." The plan must include stop and limit levels for the trade, as your analysis should encompass the expected downside as well as the expected upside.
• Examine all of the facts carefully before you make a trade. Don't let excitement, fear, or someone else's influence cause you to enter or exit a position before the circumstances match YOUR guidelines. • What goes up must come down and what goes down should eventually come back up. A good trader understands that there are times when it's better to be in an all cash position and watching the market from the sidelines.
• Don't let temporary circumstances erode your convictions: You know that you should take steps to protect your profits when a trend is weakening, so do it. Likewise, you know what to do when the stock resumes trading up, so do that to.
• Don't fall in love (or hate) with your trades: The stocks don't care that you own them, and they are not your friends. Your only friend is your trading psychology. Pay attention to the technical aspects and do the right thing based upon your own system. Do not marry your trades: The reason trading with a plan is the #1 tip is because most objective analysis is done before the trade is executed. Once a trader is in a position he/she tends to analyze the market differently in the "hopes" that the market will move in a favorable direction rather than objectively looking at the changing factors that may have turned against your original analysis. Traders with a losing position tend to marry their position, which causes them to disregard the fact that all signs point towards continued losses.
• Remain emotionally detached from the market and the excitement that its movement creates : Don't constantly check your share prices all day long (unless you're day trading). If you get caught up in "tick" watching then you are going to make wrong decisions based upon greed or panic. There is no valid psychology that includes greed or panic.
• Unless you are a day or swing trader, the day-to-day prices of your stock are not that important. Stay focused on the large trends : and do not try to react to every market move.
• Unexpected things, both good and bad : Understand these events, be prepared for them, and take the appropriate actions. A good psychology takes into consideration that you can not predict what is going to happen in the market.
• Unless you're trading in short positions, only increase your position when prices goes up, not down : Generally, when a price starts to move it usually continues in that direction for a while.
These tips are not new ones, they were discussed so many times across thousands of articles and books, but I can say you will success if you follow them typically and this is hard though it is not impossible to do. The best resource for FOREX trading is MoneyTec MoneyTec, - Active Traders Community Forum, Chat. MoneyTec is an online trading community that promotes mature, intelligent & respectful discussion in a positive & safe environment for everyone.
About the Author
Balayya is an active trader at MoneyTec MoneyTec, - Active Traders Community Forum, Chat. MoneyTec is an online trading community that promotes mature, intelligent & respectful discussion in a positive & safe environment for everyone.
Saturday, February 28, 2009
Thursday, February 26, 2009
Forex Secret Weapon - The Art of Forex Scalping by Daniel Su
Forex scalping is nothing new to the forex trading market, it is just a niche that not all currency traders take the time to learn and that is a crucial mistake on their part. While it may not be right for you, you are about to quickly find out why having these skills can make you a better all around forex trader. Furthermore, you will find that it will also enhance your discipline in this action packed market.
A lot of individuals will get the wrong impression about the forex scalping niche because of traders who make trades just for the sake of making them. They have the wrong mindset and go into the day thinking that they are going to make 15 trades and they do exactly that with no regard for their overall profitability. What they should take the time to do is learn critical information by doing forex training that will make them more successful. There is actually one piece of information that is more critical than anything else that every serious currency traders need to know when they are learning to trade forex.
You must understand that the forex market is usually in consolidation, for as much as 60-80% of any given day, is one of the best things that any trader can come to grips with. The market will not make any significant moves during this time period and when the forex scalper comes to terms with this and can fully understand what this means to the market, they will realize how profitable this piece of information can be for them.
Developing a sense of recognition is key for any trader, but it is of particular interest to the forex scalper. They must be able to quickly identify key support and resistance levels of previous highs and lows so they can spot profitable situations.
Recognizing these spots enable the forex scalper to do what every good forex trader needs to do, buy the dips and sell the rallies. When you can take advantage of wide ranging, 20-40 pips, consolidation channels, you will be able to place your long orders on the floor price of currencies and place your short orders on the ceiling prices of currencies.
If you are looking past this information because you have no desire to be a forex scalper, you are making a critical mistake. Having this weapon in your arsenal of forex strategy will make you a better overall trader. You will also be able to utilize your time better when the market is not making any significant moves. Like anything else, the more well rounded you are, the better you will be at your art of forex trading.
About the Author
To learn more forex tips and get trading signals, click here to download my FREE 56-page ebook Forex Trading To Riches.The author, Daniel Su, is the founder of ForexTradingPower.com where you can get free premium forex trading tips and resources.
A lot of individuals will get the wrong impression about the forex scalping niche because of traders who make trades just for the sake of making them. They have the wrong mindset and go into the day thinking that they are going to make 15 trades and they do exactly that with no regard for their overall profitability. What they should take the time to do is learn critical information by doing forex training that will make them more successful. There is actually one piece of information that is more critical than anything else that every serious currency traders need to know when they are learning to trade forex.
You must understand that the forex market is usually in consolidation, for as much as 60-80% of any given day, is one of the best things that any trader can come to grips with. The market will not make any significant moves during this time period and when the forex scalper comes to terms with this and can fully understand what this means to the market, they will realize how profitable this piece of information can be for them.
Developing a sense of recognition is key for any trader, but it is of particular interest to the forex scalper. They must be able to quickly identify key support and resistance levels of previous highs and lows so they can spot profitable situations.
Recognizing these spots enable the forex scalper to do what every good forex trader needs to do, buy the dips and sell the rallies. When you can take advantage of wide ranging, 20-40 pips, consolidation channels, you will be able to place your long orders on the floor price of currencies and place your short orders on the ceiling prices of currencies.
If you are looking past this information because you have no desire to be a forex scalper, you are making a critical mistake. Having this weapon in your arsenal of forex strategy will make you a better overall trader. You will also be able to utilize your time better when the market is not making any significant moves. Like anything else, the more well rounded you are, the better you will be at your art of forex trading.
About the Author
To learn more forex tips and get trading signals, click here to download my FREE 56-page ebook Forex Trading To Riches.The author, Daniel Su, is the founder of ForexTradingPower.com where you can get free premium forex trading tips and resources.
Saturday, February 21, 2009
Learning Forex Trading to Begin Trading Smarter, Faster
Learning forex trading is a powerful asset to have if you're looking to make a small profit on the side or if you're looking for a new career path altogether. Don't waste any time and find out what you need to know about getting started sooner and what it takes to succeed.
Start With a Practice Forex Account - There is a wealth of resources online about how to trade currency, but until you've been in the trenches and have experienced it yourself then you won't be prepared or able to do it confidently. Practice forex accounts exist for this reason. Think of this as your education before going out into the real world where you can learn with a complete feeling of safety and security while still making trades in the real market using real market data, only trading with virtual money which you keep track of instead. You'll also be more inclined and willing to make the learning mistakes which you otherwise wouldn't be had it been your own money which you were risking.
Follow Trends - After you've traded with a practice forex account for a few months and have amassed a number of profitable and winning trades under your belt, you're ready to transition into the real thing. One thing you'll notice in your practice forex account is that the market is expansive, turbulent, and ever changing. Your best path to success is not predicting where the market will go, but acting on changes which have already occurred effectively. Trends are your best friends in this market, follow them religiously and act accordingly.
Employ a Trading System - You'll likely get an idea of what is required from you for your success while trading with your practice forex account. Trading currency can be a full time job if you're serious about it, with simply keeping tabs on where the market is and where its going can account for the majority of your day. This is why an increasing number of traders are outsourcing this task to a trading system, or an automated system which trades automatically for you in responding to changes in the market to ensure that you always land on the winning sides of your trades. These systems work around the clock for you so that you don't have to and you can leave a campaign on autopilot this way while you begin another trading campaign or simply work at your day job or spend time with the family.
Not all trading systems are created equal. Because of the potential for success and profits by using this technology, this technology has become very popular in recent years and led many disreputable publishers to throw together hyped products just out to capture your dime. Visit http://www.forexautotradingreviewed.com to find in depth revealing reviews on only the most reputable, guaranteed, and leading systems available today and begin your path to financial independence right now.
Article Source: http://EzineArticles.com/?expert=Max_Branner
Start With a Practice Forex Account - There is a wealth of resources online about how to trade currency, but until you've been in the trenches and have experienced it yourself then you won't be prepared or able to do it confidently. Practice forex accounts exist for this reason. Think of this as your education before going out into the real world where you can learn with a complete feeling of safety and security while still making trades in the real market using real market data, only trading with virtual money which you keep track of instead. You'll also be more inclined and willing to make the learning mistakes which you otherwise wouldn't be had it been your own money which you were risking.
Follow Trends - After you've traded with a practice forex account for a few months and have amassed a number of profitable and winning trades under your belt, you're ready to transition into the real thing. One thing you'll notice in your practice forex account is that the market is expansive, turbulent, and ever changing. Your best path to success is not predicting where the market will go, but acting on changes which have already occurred effectively. Trends are your best friends in this market, follow them religiously and act accordingly.
Employ a Trading System - You'll likely get an idea of what is required from you for your success while trading with your practice forex account. Trading currency can be a full time job if you're serious about it, with simply keeping tabs on where the market is and where its going can account for the majority of your day. This is why an increasing number of traders are outsourcing this task to a trading system, or an automated system which trades automatically for you in responding to changes in the market to ensure that you always land on the winning sides of your trades. These systems work around the clock for you so that you don't have to and you can leave a campaign on autopilot this way while you begin another trading campaign or simply work at your day job or spend time with the family.
Not all trading systems are created equal. Because of the potential for success and profits by using this technology, this technology has become very popular in recent years and led many disreputable publishers to throw together hyped products just out to capture your dime. Visit http://www.forexautotradingreviewed.com to find in depth revealing reviews on only the most reputable, guaranteed, and leading systems available today and begin your path to financial independence right now.
Article Source: http://EzineArticles.com/?expert=Max_Branner
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