Category: forex trading

Technical Analysis Course – How Losers Think Part I

We’re going to look closely at the thinking of losers with this technical analysis course series.

Tagore – the famous poet: —- wrote , “Pessimism is a form of mental dysomania. It distains healthy nourishment and indulges in the strong drink of denunciation and creates an artificial rejection which thirsts for a stronger draught”.

Lemmings that race to the ocean is what losers are like . The trap of rejection and self denunciation catches them and they can’t wait to get more of it ! Parents and relatives constantly bombarding kids with negatives through their lives is as if there is a conspiracy to develop and sustain an attitude of “can’t do” in people . Conditioning continues through song lyrics, television commercials, pressures from friends, relatives, neighbors, social contacts and nearly all of society . A paper can’t be distributed , a news hour cannot be made interesting unless you have misery and unpleasantness …. which is what makes up a loser .

Losers out there love misery – it is the only thing that makes him happy . Think of it !

The losing trader is a self-defeatist . He does the best when stress and strain occur, and losing money makes him feel at home . The loser who strikes gold in the market, literally falls apart … that isn’t what he is used to . Success is something he doesn’t know how to enjoy . Struggling and losing have always been what his thoughts are build upon . A win occurs, he loses it, becomes an expert – he develops what one prominent futures trader (Larry Williams) called “the King Kong feeling”. Self control is lost and he quickly loses his profits , and he goes back to the struggling and the misery – something he’s used to, – like lemmings to the sea , and he may not wish to admit it but he loves to struggle,- to struggle to win . Winning is something his mind can’t cop with . Struggle is what he copes with . It’s incredible, isn’t it? Especially if you look closely at it with a technical analysis course.

He correlates a posture of immaturity . It’s easy to see why he is made a fool of by the cordial politician that says “Don’t worry about things. We’ll deal with it. We know what’s best for you” .

A loser has a desire to win that is overwhelming . They tell themselves that winning can happen , and to save face they keep coming back . In their psychological patterns ineffectualness is already programmed in. He almost becomes hypnotized with success by those events that occur. Mind hypnotism or a trance occurs to him. Sinking feelings about various things occur to him. The things he did right he can’t wait to apply, usually to the very same market but at a time that is all wrong. His mind is almost saying to him, “It really isn’t happening to you” . He is unaware of where he is. He becomes another person .

[ It’s always great to see a win occur to a loser, but it becomes sad when you see them in a trance state, and you know that soon they’ll start losing once again – so much, that they will be right back where they started .]

In some cases when a profit happens , the profit will make their mind so happy , that it will grab it, but nearly always prematurely . If there is a loss occurring, his mind says “It will all work out in the end” and he/she hangs on . He cuts profits short and allows losses to run on.

Shorting the market is difficult for a budding trader. He thinks that prices have no ceiling and that the sky is the limit . Growth is inevitable as long as he is buying against base zero , since to his mind that is what life is all about, – growth, upward movement . We will continue this discussion about how losers think in our next article in this technical analysis course series.

Overcome Your Fear While Trading

Most of the traders sabotage their Intraday trading because of their fear. Fear may be good and helpful in our lives. But in trading, it is harmful.

Fear makes you to avoid things in the environment, which you perceive as threatening. What you perceive may not necessarily be threatening. When you try to focus on your losing trades, mistakes etc, you give your subconscious mind powerful directions. You would then easily end up with those same losses which you were actually trying so hard to avoid. What you focus your attention is usually what you get.

If you want to be successful as a trader, then try to focus your attention on winning trades and proper trading mechanics. But if you intensely focus on your mistakes and poor trading decisions, then you will end up with the same. Your subconscious takes the mental pictures which you are giving it and acts accordingly. It does its very best to act out these directions on your behalf.

Your subconscious is not bothered about your interest. It simply attempts to follow the information. When you trade with fear, you can easily block things out. Fear acts as a warning mechanism. Fear will lead you to make wrong trading decisions. You will ignore different pieces of information that would help you to make good trading decisions. This is very dangerous.

A fearful trader will handle a winning trade in the negative way. His fear of losing will cause him to focus on what the Stock market can take away from him in his current winning trade. A fearful trader will ignore all the information that states the Stock market has potential to continue in a profitable direction. So, he will exit the trade early regardless of the profit potential left in trade. Whereas, in a losing trade, the fearful trader will focus on only those information from the Stock market that supports his current position and ignore other factors that may not agree with his opinion.

This fear will make the trader to come out of the profitable trade. This will lead him to leave the money on table. This is the reason why most of the traders cut their profits short and let their losses run.

In this way, the fear will sabotage your Intraday trading. To prevent it, you must learn to trade without fear. In order to trade without fear, you should completely trust yourselves to know that you will always act in your own best interest. Fear would definitely do nothing good to your Intraday trading career. It would put your trading career in doldrums. So, it is very important to overcome the emption of fear.

If you are not sure about the entry and exit to the trades, then take the help of the stock advisory company which provides sure shot Intraday tips. This company will tell you when to come out of the trade or when to stick to the trade. In this way, you can earn even in volatile stock market. Your Intraday trading career will also be safe.

Learn The Secrets of CFD Trading

The financial markets have changed and now anyone with a computer, an internet connection and a small investment can start to make big money with contracts for difference trading, or CFD. Some people use CFD trading as a chance to make a little extra money on the side, while others leave the day job behind to become full-time traders on the markets. Whatever you choose to do, it is important to be well prepared and well informed before you set out to make an investment. CFD trading is becoming increasingly popular thanks to its accessibility, as well as the possibility for normal people to make incredible returns on their investments.

Becoming a CFD Trader

Preparation is vital wherever your capital is at stake, so before you begin you should attempt to find out more about the market, the trading platforms and the various methodologies different traders prefer to operate. There are literally thousands of websites and blogs dedicated to CFD trading, each with its own unique perspective on the market, so it is worth your while to invest some time in the forums, getting to know the trading community and seeking advice from friendly online communities who are all interested in the same thing. Many sites also offer introductory courses and training in the various forms of CFD, allowing you to learn more before you put your money on the line. The key attributes of a successful CFD trader are ambition, willingness to learn and a healthy prudence in protecting their investment. CFD trading offers enormous potential returns, but as with any leveraged product, there is a risk of loss, so the first and most important thing to do is act wisely to protect your savings, avoiding rash purchases and keeping your impulses in check while you consider each situation carefully in light of your training.

CFD Trading – How to Begin

Once you have thoroughly read up on the theory and principles of CFD trading, the time has come to choose your platform and think about starting to trade. There are hundreds of trading platforms out there, each offering a variety of different styles and features, so it may take you some time to find one that works for you. Fortunately, many platforms offer a free trial version where you can try out many of the features without having to put your money on the line. These trial versions also offer an excellent opportunity for new traders to test the waters without having to risk their savings, as they allow you to put your training into practice with a trial balance. This can give you a feel for the way the markets operate as well as allowing you to decide which one of the many trading platforms feels right for you. Once you have completed your training and found your platform, you can think about beginning to trade for real, but remember you can never know too much about CFD trading, and that you can always learn something new which could help increase your profits exponentially.

Day Trading For Dummies

Because they happen on the market, it is therefore important to talk about the method that you as a dealer may maximize your endeavours towards the greatest day time trading.

A trader in which wants the very best of stock investing would have become familiar with the type of the market. These kinds of particular man or woman is actually surely a great optimist that feels customers with rock-bottom prices chance to make awesome stock income in the active marketplace. He understands that the consequences of every moment available, and that he can certainly use these so that you can his / her advantage. Finest day time stock trading involves ability to discern industry having around accuracy, if not exactly. This is not for very sluggish traders or perhaps idiot’s since it demands considerable endeavours by the particular trader.

On the web stock-trading demands you to come with an accounts using a trading organization that gives online stock trading of stocks. So once you’ve made the decision the kind of buying and selling that you simply need to proceed with you must switch on an account using these online stock trading businesses. Deciding which company will be the most effective for you could be complicated but with some study through keeping the next at heart it is possible to choose which may be the greatest for you personally.

The particular investing types (swing or day trading) then the company.

Will the business offer you management of their bucks expertise?

Based on how extended has the business been functioning?

Will be the online stock trading method given by all of these user-friendly?

Will the organization provide you with techniques on how to move around in that scenario?

With online trading it is possible to trade options sitting at your home as well as handle your account much more. Most of these on the internet stock-trading organizations offer you on the internet help for their users so that they can get their questions in regards to the currency markets responded to. The actual trading professionals connected with these companies might assist you with assessing any scenario as well as allow you to organize any strateg

A few principal options associated with backtesting are:

A single. Homemade! Sure, it is very gradual, dull and time consuming, but it’s the only real alternative that really teaches you concerning investing. The knowledge acquired through backtesting will probably be worth each and each second spent. Homemade backtesting entails experiencing traditional data eventually at any given time, keeping the actual diary in regards to the trading signs during the day forward, next looking into the next chart and also document the investments as well as indicators for an additional day. Open up a trial accounts using a brokerage of your liking which fits backtesting computer software package through the trading program. Make sure that your forex boker features a good reputation and the trading program will be easy. My own suggestion is MetaTrader 4.

Two. Automated Software program. Hottest choice among dealers, because it is less difficult then “Do-It-Yourself” backtesting. The commercial software program retains the records with the buying and selling information (and therefore you don’t need to do all the effort yourself). The majority of computer software package assists you to trade the past. Indeed, you are able to actually trade the body for a long time as well as figure out whether or not the program is effective upabout prolonged time frame.

3. System The Software system. This method is just with regard to personal laptop or computer system software engineers. The theory is always to signal the script so that you can retrieve the actual trades in the past in accordance with your own buying and selling technique. This may look like a great optimum backtesting approach, but you can find tones of restrictions. For starters, you have to be a good developer! In the event you never had a good come across along together using development earlier, it is prudent to not even think about this alternative. It really is tricky to system the particular trading plan. For example, you must work out how to deal with Eu buying and selling classes if the product is made to take trades only during the Hard anodized cookware buying and selling session.

Some Specific EMini Scalping Techniques

It seems that if you ask hundred successful e-mini traders what style of trading they employ you might well get 100 different answers. For whatever reason, e-mini traders often employ highly individualistic styles. There may be a number reasons for this, the e-mini contracts have not been around for decades and decades, and the contracts themselves have grown exponentially over the last 15 years. In short, the e-mini contract is relatively new.

Which contract should I trade, YM or the ES?

I have very strong feelings on this topic and start all the students in my room on the YM because it is my opinion it is an easier contract to learn on. The YM tends to move in better trending patterns and is frequented primarily by smaller traders, though there are a decent number of professional on contract.

I have a number of trades on the YM that are among my favorites and on most I’ll trade with the trend. I am particularly fond of finding an important support/resistance line and setting up three ticks past that particular support/resistance line. I prefer to set-up inthe direction of the trend and let the price action hit my buy order with a bit of momentum. The idea that you are trading with trend is an important one and I strongly recommend that 90% of your positions are with the trend. I can’t tell you how many times I have taken a boneheaded set-up and have the fact that it was a boneheaded set up with the trend save the trade and my futures account from disaster.

Odd as it may sound, one of my favorite places to trade is in equidistant continuation channels with at least 15 ticks at the boundaries. I can’t explain why I enjoy trading this odd configuration, especially when the vast majority of trading educators strongly recommend avoiding trading in channels (and rightly so.) In any event, I developed an interest in trading in channels at the onset of my career and 30 years later I enjoy trading in channels as much as ever.

One thing I noticed early in my career was that breakouts from parallel continuation channels nearly always failed. Based on that knowledge, I generally take three contracts back in the direction of the channel when its boundaries are reached; if it continues another two or three tax I proceed to break every rule of sound trading and add two more contracts. Generally speaking, you can count on the breakouts failing and the price action will fall to the lower level of the Bollinger bands. As most members of my trading room can attest, I have her remarkable success with this trade, though I’ve yet to entice any newer traders to take this trade because it involves initiating a resting order in the exact opposite direction the market is moving.

In summary, we have talked about it to trades that can be relied upon when trading the e-mini contracts. The first trade was a basic momentum trade that has a high level of success and the second trade I described took advantage of continuation channels tendency to break out and then fail. Both are good trades, and there are a host of other great trades that may resonate with traders in a positive way. The point is a simple one, as you begin to trade the e-mini, find a few good trades to start with and they may be sufficient to carry you a long way. As you progress, you will add new trades and techniques to complement your initial learned trades. Learn each set up thoroughly, and execute with precision. That’s the name of the game.