There's a never ending supply of marketers trying to sell you on the idea of easy money. It's all lies designed to part you with your money. Buying the $67 system is only the first mistake, trading with it is what really costs you money. Learn the truth about the forex.
Sometimes I have members to my service, who can't seem to make any money. I am always surprised at this. But I do understand how it happens. A typical situation is they will have a few losses, and become afraid to trade. Then they will watch me have a few wins and jump back into trading again. Then I may have a loss, and that usually destroys what confidence they had left.
It's true that two people can trade the same system, and one will lose money. So it's what happens in your mind that is the most important. When you learn Forex trading, everything you do comes from your mind set.
So the first holy grail in trading is: "if you are not in control of your emotions, your emotions are in control of you" and for the most part, our emotions are illogical. Ask Spock.
Too many traders become obsessed with indicators. Without realizing what an indicator really is. An indicator is just a way of smoothing price action. Because it has to use historical data, it will always report a lagging view of the market. You should see indicators as an aid to help you, not as the complete guiding factor. Remember the market moves through the sum total of all the actions (trades) of the market.
So learn to not only read the market, but the mass mentality of the traders driving it. Also understand that there are two groups of traders in the market, the big players and the small players. The big traders know how to play the small players, just like an experienced poker player can outplay a rookie. Everyone thinks the USD is going up? Now watch the big players push it the other way, and take out small trader's stops. Start to think outside the box. Learn to think "what will hurt the most Forex traders right now?" don't trade with the herd.
"Never forget that it's the sum total of the actions of all the traders in the market that drives its movements."
The last thing you need is a good system. But it must be your system. I personally like to use EMA's and support and resistance only, somebody else may like RSI and Bollinger bands, others may use chart patterns.
When you learn forex trading, you can never ignore the other factors affecting the market. You must have a holistic view. Did news just come out that strengthens the dollar? Did price just reach the 200 ema on the 4 hour chart? Did a head and shoulders just form? is price hitting the top of a channel on the daily chart? It does not matter what system you use to pull the trigger, if you ignore everything else.
It is very easy to miss something really obvious when you are too close to the market and not standing back, observing everything.
"Learn how to take a holistic view of the Forex market, and keep track of the bigger picture"
It is very easy to overlook and dismiss the importance of this information. It is probably stuff you have heard before. While you learn Forex, you will see this advice repeated over and over again. There is a very good reason for that; all successful traders understand this information, and are successful because of it.
Sometimes I have members to my service, who can't seem to make any money. I am always surprised at this. But I do understand how it happens. A typical situation is they will have a few losses, and become afraid to trade. Then they will watch me have a few wins and jump back into trading again. Then I may have a loss, and that usually destroys what confidence they had left.
It's true that two people can trade the same system, and one will lose money. So it's what happens in your mind that is the most important. When you learn Forex trading, everything you do comes from your mind set.
So the first holy grail in trading is: "if you are not in control of your emotions, your emotions are in control of you" and for the most part, our emotions are illogical. Ask Spock.
Too many traders become obsessed with indicators. Without realizing what an indicator really is. An indicator is just a way of smoothing price action. Because it has to use historical data, it will always report a lagging view of the market. You should see indicators as an aid to help you, not as the complete guiding factor. Remember the market moves through the sum total of all the actions (trades) of the market.
So learn to not only read the market, but the mass mentality of the traders driving it. Also understand that there are two groups of traders in the market, the big players and the small players. The big traders know how to play the small players, just like an experienced poker player can outplay a rookie. Everyone thinks the USD is going up? Now watch the big players push it the other way, and take out small trader's stops. Start to think outside the box. Learn to think "what will hurt the most Forex traders right now?" don't trade with the herd.
"Never forget that it's the sum total of the actions of all the traders in the market that drives its movements."
The last thing you need is a good system. But it must be your system. I personally like to use EMA's and support and resistance only, somebody else may like RSI and Bollinger bands, others may use chart patterns.
When you learn forex trading, you can never ignore the other factors affecting the market. You must have a holistic view. Did news just come out that strengthens the dollar? Did price just reach the 200 ema on the 4 hour chart? Did a head and shoulders just form? is price hitting the top of a channel on the daily chart? It does not matter what system you use to pull the trigger, if you ignore everything else.
It is very easy to miss something really obvious when you are too close to the market and not standing back, observing everything.
"Learn how to take a holistic view of the Forex market, and keep track of the bigger picture"
It is very easy to overlook and dismiss the importance of this information. It is probably stuff you have heard before. While you learn Forex, you will see this advice repeated over and over again. There is a very good reason for that; all successful traders understand this information, and are successful because of it.
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