Some lessons in our life are boring, some are not. I like lessons that bring value along with fun.
Would you like to take another couple of free Forex lessons from amazing dark Forex host?
With those Forex lessons I stumbled upon lately you will be able to look inside your trading soul and may be find some hidden answers to your everyday Forex struggle.
Anyway, just a fun to read and learn. I'd recommend and you decide for yourself whether such dark mentor style is good for you :)
Friday, March 14, 2008
Friday, February 22, 2008
Stop placing tips to minimize losses in Forex
It is worth pointing out that when active trading position becomes a losing one it doesn't mean that our trading balance is going to actually shrink this time until we allow it to shrink by either accepting the loss and closing a position or moving our Stop loss too close or too soon or something else.
The art of placing Stops in Forex trading determines the success of failure of every trading order opened. It sets apart Forex traders that lose from Forex trader who win... on the same time frame, under the same market conditions!
Here are some Stop placing tips that may help avoiding painful losses in Forex:
1. Don't accept losses too soon, do your market research and have confidence in the trend you trade with.
2. Trading smaller lots increases tolerance to open negative trades. Small lot trading with wide stops is much better than big lot trading with tight stops!
3. Setting initial stop wider than you'd like to, gives a space for a new trade to develop in. Don't set stops tight, let the trade to mature, then move your Stop to a desired position.
4. Bring stop to break even to protect your balance, but not when you are +20 pips, wait till you get at leat +50 pips!
5. Set fixed targets near important support/resistance levels so that you can be sure that your trade has a fair chance to hit the profit mark rather than turn against you!
Cheese from Mouse ~C:>
The art of placing Stops in Forex trading determines the success of failure of every trading order opened. It sets apart Forex traders that lose from Forex trader who win... on the same time frame, under the same market conditions!
Here are some Stop placing tips that may help avoiding painful losses in Forex:
1. Don't accept losses too soon, do your market research and have confidence in the trend you trade with.
2. Trading smaller lots increases tolerance to open negative trades. Small lot trading with wide stops is much better than big lot trading with tight stops!
3. Setting initial stop wider than you'd like to, gives a space for a new trade to develop in. Don't set stops tight, let the trade to mature, then move your Stop to a desired position.
4. Bring stop to break even to protect your balance, but not when you are +20 pips, wait till you get at leat +50 pips!
5. Set fixed targets near important support/resistance levels so that you can be sure that your trade has a fair chance to hit the profit mark rather than turn against you!
Cheese from Mouse ~C:>
Wednesday, January 30, 2008
Is discipline in Forex so important indeed?
Yes, I'm absolutely convinced, it has a paramount importance in everyones trading.
Let me get an example for you.
Suppose, a trader found an allegedly winning system. He brought it to MT4 and back-tested it. the system promised high yields. Our hero is ready to trade it.
But, although the factor of system potentials was positive, there is still one problem left. It is a human factor.
Trading is done by humans, unless a trader uses an automated system... this article is not for such traders, they should be fine. Do read on if you trade manually.
Let's go back to our example. Back-testing results were promising, but how smooth was the system performing? Did it require some nerves from times to times to hold a position open? If so, how prepared is a trader to trust a system and follow the rules without involving any emotions.
Discipline is a difficult part of the trading. It is most important part and it is most crucial part in trading success.
Many novice traders pay very little attention to discipline recommendations given all the time by experienced traders. But inevitably every trader comes to understanding the word "DISCIPLINE" in Forex.
Let me get an example for you.
Suppose, a trader found an allegedly winning system. He brought it to MT4 and back-tested it. the system promised high yields. Our hero is ready to trade it.
But, although the factor of system potentials was positive, there is still one problem left. It is a human factor.
Trading is done by humans, unless a trader uses an automated system... this article is not for such traders, they should be fine. Do read on if you trade manually.
Let's go back to our example. Back-testing results were promising, but how smooth was the system performing? Did it require some nerves from times to times to hold a position open? If so, how prepared is a trader to trust a system and follow the rules without involving any emotions.
Discipline is a difficult part of the trading. It is most important part and it is most crucial part in trading success.
Many novice traders pay very little attention to discipline recommendations given all the time by experienced traders. But inevitably every trader comes to understanding the word "DISCIPLINE" in Forex.
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