Tuesday, June 20, 2006
It is Better in Groups
Banks and Hedge Fund Managers do it! And you should too!!
Too often I hear about the lonely trader who sits at their computer while the Forex market forces devour their capital. These are the same people who say currency trading is too risky and it doesn't work.
So you have taken the classes and read the books. Most humans don't learn that way. We must also be shown how to do it. In our case we must be shown (and repeatedly) how to trade, when to trade and when not to trade. Repetition is the key to learning.
And so is trading in a group!
If you do not have a group of traders then form your own group. Just look on Skype to see the myriad of Forex traders out there. Ask questions in forums (know you source though). You interaction with other enhance your Forex trading skill and acumen.
This just may be what the doctor ordered to have that breakout that puts you well on your way to Forex success!!
Happy Trading!!
Click Here to visit a forex training and education site that offers cources and mentoring beyond the tex book and into the live currency market!!
Read More...
Too often I hear about the lonely trader who sits at their computer while the Forex market forces devour their capital. These are the same people who say currency trading is too risky and it doesn't work.
So you have taken the classes and read the books. Most humans don't learn that way. We must also be shown how to do it. In our case we must be shown (and repeatedly) how to trade, when to trade and when not to trade. Repetition is the key to learning.
And so is trading in a group!
If you do not have a group of traders then form your own group. Just look on Skype to see the myriad of Forex traders out there. Ask questions in forums (know you source though). You interaction with other enhance your Forex trading skill and acumen.
This just may be what the doctor ordered to have that breakout that puts you well on your way to Forex success!!
Happy Trading!!
Click Here to visit a forex training and education site that offers cources and mentoring beyond the tex book and into the live currency market!!
Thursday, June 15, 2006
CSI Forex
If you trade the Forex market you will inevitably encounter the proverbial down day (or worse yet a series of down days). By bad day I mean when you put on a trade and from 'pip' one just goes against you. Tell me, after this happened have you:
Chased the trade and ended up losing more?
Revenge traded against the trend to recoup your losses and ended up losing more?
Moved your predetermined stop and ended up losing more?
Flipped your position and ended up losing more?
Have you noticed a theme??
Well, when I have a series of losing trades I go into CSI mode!
I actually conduct a crime scene investigation on my trading. First if I suffer a big lost I close my trade station immediately. Experience has taught me that I am susceptible to revenge trading. After a break (could be several minutes or several hours or several days) I take a look at my trade journal and look for clues as to why I suffered a draw down. Keeping a detailed journal allows me to reconstruct my trades to isolate potential errors.
If I am lucky I found that I had sound analysis and execution, but just hit some losers. More likely is that I got away from my style of trading or over-complicated my technique and entered into a bad trade.
Go back to the basics! It works every time!!
Happy Trading!!
Read More...
Chased the trade and ended up losing more?
Revenge traded against the trend to recoup your losses and ended up losing more?
Moved your predetermined stop and ended up losing more?
Flipped your position and ended up losing more?
Have you noticed a theme??
Well, when I have a series of losing trades I go into CSI mode!
I actually conduct a crime scene investigation on my trading. First if I suffer a big lost I close my trade station immediately. Experience has taught me that I am susceptible to revenge trading. After a break (could be several minutes or several hours or several days) I take a look at my trade journal and look for clues as to why I suffered a draw down. Keeping a detailed journal allows me to reconstruct my trades to isolate potential errors.
If I am lucky I found that I had sound analysis and execution, but just hit some losers. More likely is that I got away from my style of trading or over-complicated my technique and entered into a bad trade.
Go back to the basics! It works every time!!
Happy Trading!!
Tuesday, June 13, 2006
Time for a Breakthrough
Have you every wonder why do Forex traders fail? Even better have you ever wondered what holds must of us back from reaching our true potential as a Forex trader?
Want a hint?
Just look in the mirror!!
The key to success in trading the Forex market is to just plain get out of our own way!! Here are the common mistakes that leads most traders to failure or better yet, hold the true successful trader in all of us back from achieving our true potential. See if any of these areas you can improve upon.
Lack of Forex Education - training is the true key to success. That is why I have dedicated my website, FX Trade Central, this blog and my Lens to this enitre topic. The money spent on proper currency education will be recoup and paid back 1000X!! Click Here for a list of Forex training and education courses on FXTC or Click Here for Forex training opportunity Lens.
Emotions - great if you are watching the NBA Playoffs or World Cup, but it has no home in trading. Again, this is another topic I am passionate about and quite honestly one I struggle with each and every trading day.
Not sticking to a trading plan - or not having a plan at all!! This goes a long way in predetermining your trading decsions and help removing the emotions from your trades.
Expectations - Having realistic expectations at all times. My "Ah-Ha" moment was when I focused on the pips and let my trading plan worry about the lots. Compounding works!
Risk Management - I still hear from people time to time who continue to trade without a stop loss. One word ... STOP!! Just for the fact that you are risking your account on your ISP my account started growing when I managed my risk, took trades that fit my reward-risk profile, and used my stop-loss as a mechanism of last resort to exit a losing position and not a first option.
Bottom line, focus on these areas as much as the mechanics of the trade and you will get over the hump and start benefiting from the most powerful financial market in the world!!
Happy Trading!!
Read More...
Want a hint?
Just look in the mirror!!
The key to success in trading the Forex market is to just plain get out of our own way!! Here are the common mistakes that leads most traders to failure or better yet, hold the true successful trader in all of us back from achieving our true potential. See if any of these areas you can improve upon.
Lack of Forex Education - training is the true key to success. That is why I have dedicated my website, FX Trade Central, this blog and my Lens to this enitre topic. The money spent on proper currency education will be recoup and paid back 1000X!! Click Here for a list of Forex training and education courses on FXTC or Click Here for Forex training opportunity Lens.
Emotions - great if you are watching the NBA Playoffs or World Cup, but it has no home in trading. Again, this is another topic I am passionate about and quite honestly one I struggle with each and every trading day.
Not sticking to a trading plan - or not having a plan at all!! This goes a long way in predetermining your trading decsions and help removing the emotions from your trades.
Expectations - Having realistic expectations at all times. My "Ah-Ha" moment was when I focused on the pips and let my trading plan worry about the lots. Compounding works!
Risk Management - I still hear from people time to time who continue to trade without a stop loss. One word ... STOP!! Just for the fact that you are risking your account on your ISP my account started growing when I managed my risk, took trades that fit my reward-risk profile, and used my stop-loss as a mechanism of last resort to exit a losing position and not a first option.
Bottom line, focus on these areas as much as the mechanics of the trade and you will get over the hump and start benefiting from the most powerful financial market in the world!!
Happy Trading!!
Sunday, June 11, 2006
Money, Banking and the Federal Reserve
I have never been a big fan of the FED. If you have a moment follow this link and view this video. It will provide some interesting insight!
http://video.google.com/videoplay?docid=-466210540567002553&q=mises
Happy Trading!!
For Forex training and education visit my Forex Journey Lens
Read More...
http://video.google.com/videoplay?docid=-466210540567002553&q=mises
Happy Trading!!
For Forex training and education visit my Forex Journey Lens
Friday, June 9, 2006
Philosophical FX Mistakes
Trading the Forex market can be tricky at times. We all see this massive flow of money moving between central banks and all we want is to cast our little net into this river of money for some pips. As a technical trader these are the coomon traps I fell into while developing my trading plan.
Don’t Analyze the News for Future Price Action!
Fundamentals matter, but as a technical trader we are aware of economic news as they tend to act as catalyst. News events offer opportunities, but price action is what matters most! How often have you seen news spur price to technical support and resistance levels? I will leave that to the economist!
Don’t Trade the News!
Again, we should always be aware of news releases during our trading session. I don’t trade the news, but I then again I am not a fundamental currency trader either. I do know some super successful fundamental currency traders. It is just not my game. I like to wait for the dust to settle a trend to emerge before jumping into the fray. If, and that is a strong if, I have any open positions going into any major announcements I am really focused on where my stops are located to protect my position if I am deep into profit. More often than not I exit open trades if minimally in profit or in a losing position. News is the fuel, but technicals are in control.
Keep it Simple!
When I began trading I wanted to learn every forex strategy on earth. I found that the simpler strategies afforded me more consistency! And that is what I was after all along. After being able to consistently drive profits out of my trading activities I turned my focus to maximizing entry and exit points, yet deploying simple strategies all along.
Happy Trading!!
Read More...
Don’t Analyze the News for Future Price Action!
Fundamentals matter, but as a technical trader we are aware of economic news as they tend to act as catalyst. News events offer opportunities, but price action is what matters most! How often have you seen news spur price to technical support and resistance levels? I will leave that to the economist!
Don’t Trade the News!
Again, we should always be aware of news releases during our trading session. I don’t trade the news, but I then again I am not a fundamental currency trader either. I do know some super successful fundamental currency traders. It is just not my game. I like to wait for the dust to settle a trend to emerge before jumping into the fray. If, and that is a strong if, I have any open positions going into any major announcements I am really focused on where my stops are located to protect my position if I am deep into profit. More often than not I exit open trades if minimally in profit or in a losing position. News is the fuel, but technicals are in control.
Keep it Simple!
When I began trading I wanted to learn every forex strategy on earth. I found that the simpler strategies afforded me more consistency! And that is what I was after all along. After being able to consistently drive profits out of my trading activities I turned my focus to maximizing entry and exit points, yet deploying simple strategies all along.
Remember, these are my "Enlightened" thoughts. You should develop your own strategies and plan.
Happy Trading!!
Thursday, June 8, 2006
Joys of Compounding
Hello Forex Nation!!
Here is a simple tip. Trade in at least 2 forex accounts. I have a compounding account where I have a dialy pip goal of only 15. I also have what I call my true currency trading account. Here are the differences.
Compounding Account
15 pip daily goal
Intraday trading only
5% maximum risk
When daily pip goal is reached I close all trades and trade station
I rarely withdraw from this account and only for investments into other wealth buidling vehicles (eg real estate)
Trading Account
PIP goals established by reward -risk ratio (minimum 2:1)
Focus on swing and position trades
2% - 5% maximum risk
Use exit strategies predifined in my trading plan
Withdrawals allowed (I use this as an incentive)
My true joy is the compounding account. For those of you who want to witness the true power of trading forex then this is what a compounding account can do for you!!
January 1st - Open a Super-Mini Account with $300.00. Average 15 pip daily goal throughout the year (5% risk). December 31- Account balance ~ $168,000.00
This same scenario with a Mini Account with a starting balance of $3,000.00 would yield a year end balance of ~ $1,680,000.00!! Lots of zeros people! Just want to save for retirement? Average 15 pips PER WEEK and you will have the same amount in 5 years.
How's your 401(k) looking now!
Happy Trading!!
Vistit me at my Forex Lens to jump start your forex education and training!!
Read More...
Here is a simple tip. Trade in at least 2 forex accounts. I have a compounding account where I have a dialy pip goal of only 15. I also have what I call my true currency trading account. Here are the differences.
Compounding Account
15 pip daily goal
Intraday trading only
5% maximum risk
When daily pip goal is reached I close all trades and trade station
I rarely withdraw from this account and only for investments into other wealth buidling vehicles (eg real estate)
Trading Account
PIP goals established by reward -risk ratio (minimum 2:1)
Focus on swing and position trades
2% - 5% maximum risk
Use exit strategies predifined in my trading plan
Withdrawals allowed (I use this as an incentive)
My true joy is the compounding account. For those of you who want to witness the true power of trading forex then this is what a compounding account can do for you!!
January 1st - Open a Super-Mini Account with $300.00. Average 15 pip daily goal throughout the year (5% risk). December 31- Account balance ~ $168,000.00
This same scenario with a Mini Account with a starting balance of $3,000.00 would yield a year end balance of ~ $1,680,000.00!! Lots of zeros people! Just want to save for retirement? Average 15 pips PER WEEK and you will have the same amount in 5 years.
How's your 401(k) looking now!
Happy Trading!!
Vistit me at my Forex Lens to jump start your forex education and training!!
Wednesday, June 7, 2006
Embrace Your Flaws
Hi Forex Nation!!
I have returned! Sometimes you need a vacation from your vacation, if you know what I mean! While I was enjoying beautiful Southern Califoria I had time to reflect on my trading. I had some good points and some ... well, let's just say some not so good points. Instead of getting down about what I felt were flaws in my trading game I thought I would list them out and embrace them.
I had no problem listing my top five areas of trading psychology that required attention. I did this in order to identify strategies to counter these feelings and allow me better overall trade execution. That's what it's all about after all.
Before I continue, remember that I am a flawed individual, so be kind! I also recognize that these flaws serve me well in life and in trading I simply need to understand that they are present and devise methods for incorporating them into my trading plan so they have a positive effect.
Here they are!!
1. Afraid of Failure
This is presetn in almost every traders life.
Counter - read trading plan and mission statement before every trading session.
2. Lack of Discipline
I still find myself occasionally chasing trades.
Counter - I maintain a detailed trading journal that reminds me of how effective I am when deciplined.
3. Impulsive
My arch enemy!
Counter - I find I am more impulsive when tired. If I do not have enough rest I do not trade.
4. Competetive
The old athlete in me. In the past I have joined the herd.
Counter - I trade live in a focus environment with CNBC off and ensure that I make all decisions based on my trading plan and what the market is willing to allow me to take.
5. Greed
It cannot be a true list without fear AND greed.
Counter - Ironically, I employ discipline to maintain a rigid pip goal in my compounding account. Another trait that usually raises it's ugly head when I did not get enough rest.
Kowing what these negative trading traits are and when they are triggered will allow you too to manage your mind-set and turn these into positive currency trades!
Happy Trading!!
Read More...
I have returned! Sometimes you need a vacation from your vacation, if you know what I mean! While I was enjoying beautiful Southern Califoria I had time to reflect on my trading. I had some good points and some ... well, let's just say some not so good points. Instead of getting down about what I felt were flaws in my trading game I thought I would list them out and embrace them.
I had no problem listing my top five areas of trading psychology that required attention. I did this in order to identify strategies to counter these feelings and allow me better overall trade execution. That's what it's all about after all.
Before I continue, remember that I am a flawed individual, so be kind! I also recognize that these flaws serve me well in life and in trading I simply need to understand that they are present and devise methods for incorporating them into my trading plan so they have a positive effect.
Here they are!!
1. Afraid of Failure
This is presetn in almost every traders life.
Counter - read trading plan and mission statement before every trading session.
2. Lack of Discipline
I still find myself occasionally chasing trades.
Counter - I maintain a detailed trading journal that reminds me of how effective I am when deciplined.
3. Impulsive
My arch enemy!
Counter - I find I am more impulsive when tired. If I do not have enough rest I do not trade.
4. Competetive
The old athlete in me. In the past I have joined the herd.
Counter - I trade live in a focus environment with CNBC off and ensure that I make all decisions based on my trading plan and what the market is willing to allow me to take.
5. Greed
It cannot be a true list without fear AND greed.
Counter - Ironically, I employ discipline to maintain a rigid pip goal in my compounding account. Another trait that usually raises it's ugly head when I did not get enough rest.
Kowing what these negative trading traits are and when they are triggered will allow you too to manage your mind-set and turn these into positive currency trades!
Happy Trading!!
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