Let's now talk a bit about my real experience.
Was I scared to lose money in Forex? Not really. But still something bothered me. And it was - fear. Ironically it was a fear of losing my first real trading account in Forex. Yes, exactly like that. I didn't mind losing my investment I was afraid of becoming a loser in my first practice and join the bench of losers , those 90-95% of all Forex beginners who blow up their first trading accounts...
How did I cope with it? I shortened my trading lot size and started trading cents. I felt ok, but earned nothing. One day I promised to increase my lots and earn more.
It took me over a month to get over my fear.
Eventually, I've started trading with standard lot size. I was never scared again to be among losers, I felt ok about losing... may be because of that 1 month of practice with small money and building my confidence in the system I trade helped me to overcome my worries.
Cheese ~C:>
Saturday, November 24, 2007
Wednesday, October 31, 2007
Forex trading - trading scared
If to ask a trader whether he/she is ever scared when trading Forex, everyone will tell you they are not. But, why exactly people get scared, and what does it mean to be scared in Forex.
Let's try to classify it.
There are 4 groups of scared Forex traders:
- Forex traders who are scared to open a trade.
Those are mostly newbies with newly created Live accounts. Those traders are afraid of taking a decision about direction of their position as well as timing. Here only practice and confidence in own trading system can help.
- Forex traders who are scared to stay in a trade.
Reason behind it: there are some profits made... How to protect them?
Those traders are simply unsure whether to stay longer in trade or close a position. Many ask themselves: what if I exit and the trade moves on without me? Etc, etc. The cure is again a well designed exit strategy and no greed. It is that simple, but not everyone can achieve it.
- Forex traders who are scared to close a trade with a loss.
This is the biggest group of scared traders. No one of course wants to exit with a loss, but at times market just doesn't allow to make any profits. There is no reason to blame yourself or the system that "accidentally stopped working", exiting in time with a loss that hasn't become a huge loss yet is the best thing to do.
- Forex traders who are scared to lose money in general.
Those are bad investors who shouldn't be trading Forex. Forex is one of the riskiest form of investing that implies high risks of Losing money. One should never trade in Forex with money he can't afford to lose. End of story.
Let's try to classify it.
There are 4 groups of scared Forex traders:
- Forex traders who are scared to open a trade.
Those are mostly newbies with newly created Live accounts. Those traders are afraid of taking a decision about direction of their position as well as timing. Here only practice and confidence in own trading system can help.
- Forex traders who are scared to stay in a trade.
Reason behind it: there are some profits made... How to protect them?
Those traders are simply unsure whether to stay longer in trade or close a position. Many ask themselves: what if I exit and the trade moves on without me? Etc, etc. The cure is again a well designed exit strategy and no greed. It is that simple, but not everyone can achieve it.
- Forex traders who are scared to close a trade with a loss.
This is the biggest group of scared traders. No one of course wants to exit with a loss, but at times market just doesn't allow to make any profits. There is no reason to blame yourself or the system that "accidentally stopped working", exiting in time with a loss that hasn't become a huge loss yet is the best thing to do.
- Forex traders who are scared to lose money in general.
Those are bad investors who shouldn't be trading Forex. Forex is one of the riskiest form of investing that implies high risks of Losing money. One should never trade in Forex with money he can't afford to lose. End of story.
Saturday, October 6, 2007
Forex: how to stay in the game?
There are many many times that we take a position, it moves higher and higher and then starts to pull down. Maybe it loses 30 cents one day, then 50 cents the next day. By the third day it's hovering at or even violating our stop. If we feel the pull down is of no fault of the company itself, we might let it fade the stop, or finally just fold it up and move on.
But that creates the "why didn't I sell?" Syndrome. We all kick ourselves when the market is at 103.00 one day, then 102.60, then 102.25, and we finally pull the trigger at 102.00, and wonder why we didn't sell at the top. Well the answer of course is that no one really knows what the top is. But that's not what I want to focus on here today.
Everyone has different trading parameters. Some are comfy holding a position down 4 dollars. Some are in a panic if it's down 10 cents. Some are looking for 3, 4, 6 month time frames. Some are looking at today, tomorrow. We all have a different view of what we are doing and for how long.
I never enter a trade with the idea of it being a one day event. The fact is I don't have a time limit or a price target to shoot for. Overall market mood, bad news, economic reports, etc, can all conspire to make a price drop, and I'm not into holding through the pain like some are.
So, what's my point? Just this folks. If you enter a trade and it's climbing nicely and then starts to fade, there is no rule that says you have to hold it to our stops, there's no rule that says you have to hold it over night, nothing. In other words, if you are comfortable with the gains a trade has made since the time you opened it, then by all means sell it. If it goes on for more, don't kick yourself, say a prayer of thanks that you got "some" and now someone else is getting "some".
I will occasionally hold a position below my initial stop. Maybe I really believe in the story, or maybe I just think it wasn't right that the market got tossed in the trash in sympathy with a sector leader or what have you. But once you do hold it under your stop, each day becomes more dangerous. Many times it doesn't resolve itself higher and I have to sell for a bigger loss than I should have.
Over the past few weeks, with the market being so incredibly choppy, I've seen several positions move up sharply and then just as sharply fade back. Holding to the stop or worse like holding below my entry has been a bad bet more times than not. So, my word of advice in a market like this is to not try and overstay your welcome. Until we bust out or break down out of this range, taking what you can, versus sticking to self imposed stops, is probably more profitable.
The best way to maximize profits and still "stay in the game" is to sell portions of your position. A position that's up for you a dollar or two in a couple days, is a victory, and taking one third or one half off the table locks in that portion of profit and lets you be a bit more relaxed with the balance. In a choppy market, you simply "have" to be more nimble, and act a bit quicker than you would in a trending market. It's a lot more work, but it's certainly worth the effort.
But that creates the "why didn't I sell?" Syndrome. We all kick ourselves when the market is at 103.00 one day, then 102.60, then 102.25, and we finally pull the trigger at 102.00, and wonder why we didn't sell at the top. Well the answer of course is that no one really knows what the top is. But that's not what I want to focus on here today.
Everyone has different trading parameters. Some are comfy holding a position down 4 dollars. Some are in a panic if it's down 10 cents. Some are looking for 3, 4, 6 month time frames. Some are looking at today, tomorrow. We all have a different view of what we are doing and for how long.
I never enter a trade with the idea of it being a one day event. The fact is I don't have a time limit or a price target to shoot for. Overall market mood, bad news, economic reports, etc, can all conspire to make a price drop, and I'm not into holding through the pain like some are.
So, what's my point? Just this folks. If you enter a trade and it's climbing nicely and then starts to fade, there is no rule that says you have to hold it to our stops, there's no rule that says you have to hold it over night, nothing. In other words, if you are comfortable with the gains a trade has made since the time you opened it, then by all means sell it. If it goes on for more, don't kick yourself, say a prayer of thanks that you got "some" and now someone else is getting "some".
I will occasionally hold a position below my initial stop. Maybe I really believe in the story, or maybe I just think it wasn't right that the market got tossed in the trash in sympathy with a sector leader or what have you. But once you do hold it under your stop, each day becomes more dangerous. Many times it doesn't resolve itself higher and I have to sell for a bigger loss than I should have.
Over the past few weeks, with the market being so incredibly choppy, I've seen several positions move up sharply and then just as sharply fade back. Holding to the stop or worse like holding below my entry has been a bad bet more times than not. So, my word of advice in a market like this is to not try and overstay your welcome. Until we bust out or break down out of this range, taking what you can, versus sticking to self imposed stops, is probably more profitable.
The best way to maximize profits and still "stay in the game" is to sell portions of your position. A position that's up for you a dollar or two in a couple days, is a victory, and taking one third or one half off the table locks in that portion of profit and lets you be a bit more relaxed with the balance. In a choppy market, you simply "have" to be more nimble, and act a bit quicker than you would in a trending market. It's a lot more work, but it's certainly worth the effort.
Sunday, September 30, 2007
Forex 200 EMA
What is so important about this 200 EMA as it runs along price bars on Forex charts?
For some really unknown to me, as a relatively new (only 1 year with Forex) Forex trader, this EMA has happen to be favorite EMA for many Forex traders...
200 EMA counts long period average of 200 price bars. It is known to be a moving flexible sort of a trend line, that draws a line between bears market and bulls market territory.
Vast majority of Forex traders obey 200 EMA suggestion and sets their orders accordingly: trading above 200 EMA - only buy orders, trading below 200 EMA - only sell orders.
Also if to set 200 EMA on the chart one can notice that a clear break of 200 EMA is always followed by a decent rally or a sell off.
Not having 200 EMA on Forex daily chart is believed to be a bad manner... Is it so?
May be yes, if to consider that 200 EMA has somehow become so popular; may be know if a trader is not intended to use this 200 EMA suggestions anyway.
For some really unknown to me, as a relatively new (only 1 year with Forex) Forex trader, this EMA has happen to be favorite EMA for many Forex traders...
200 EMA counts long period average of 200 price bars. It is known to be a moving flexible sort of a trend line, that draws a line between bears market and bulls market territory.
Vast majority of Forex traders obey 200 EMA suggestion and sets their orders accordingly: trading above 200 EMA - only buy orders, trading below 200 EMA - only sell orders.
Also if to set 200 EMA on the chart one can notice that a clear break of 200 EMA is always followed by a decent rally or a sell off.
Not having 200 EMA on Forex daily chart is believed to be a bad manner... Is it so?
May be yes, if to consider that 200 EMA has somehow become so popular; may be know if a trader is not intended to use this 200 EMA suggestions anyway.
Thursday, September 20, 2007
Dancing at 200 EMA
No reason for adding another GBP/JPY screenshot today as the price is dancing tight at 200 EMA border. Kind of boring scenario, but what are you gonna do?
Trading is often about waiting and no one likes to wait... except for disciplined Forex traders of course.
Trying to be disciplined... wish you the same.
Cheese ~C:o never bored me :)
Trading is often about waiting and no one likes to wait... except for disciplined Forex traders of course.
Trying to be disciplined... wish you the same.
Cheese ~C:o never bored me :)
Wednesday, September 19, 2007
GBP/JPY entry at resistance again
Hmm, the bulls don't give up, however the bears got the point i guess and hold resistance firmly. Another week of consolidating market.
Yesterday evening the price was testing the same old resistance level - perfect opportunity to Short. Today we see that it worked and we aim at at least 300 pips, or even more.
Setting Daily Pivots is recommended to see what's on the menu.
Cheese ~C>
Yesterday evening the price was testing the same old resistance level - perfect opportunity to Short. Today we see that it worked and we aim at at least 300 pips, or even more.
Setting Daily Pivots is recommended to see what's on the menu.
Cheese ~C>
Monday, September 17, 2007
GBP/JPY resistance held
Today we see a progress move down of GBP/JPY pair after a battle at 200 EMA, which also coincided with 0.618 Fibonacci level on a daily chart.
Looking at upcoming support levels, but they shouldn't be a problem.
Cheese ~C:>
Looking at upcoming support levels, but they shouldn't be a problem.
Cheese ~C:>
Friday, September 14, 2007
Good morning everyone, trading GBP/JPY
GBP/JPY pair is now in a tight consolidation.
There is a battle going on at 200 EMA level. it would be very difficult for buyers to break that levels of enormous resistance.
In addition sellers are so confident because they also have Fibonacci 0.618 level to back them up.
Waiting for a solution of this very tight battle. Sellers have all the arguments, but buyers somehow don't give up yet...
There is a battle going on at 200 EMA level. it would be very difficult for buyers to break that levels of enormous resistance.
In addition sellers are so confident because they also have Fibonacci 0.618 level to back them up.
Waiting for a solution of this very tight battle. Sellers have all the arguments, but buyers somehow don't give up yet...
Thursday, September 13, 2007
Forex mouse trading
Click your mouse and start trading Forex with us.
We will post Forex signals, reviews, books and a lot of other free and useful stuff about Forex trading.
Did we mention Forex news, fundamentals? No? Ok, add those as well.
Cheese :)
Forex mouse
We will post Forex signals, reviews, books and a lot of other free and useful stuff about Forex trading.
Did we mention Forex news, fundamentals? No? Ok, add those as well.
Cheese :)
Forex mouse
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