sh-paiqian.com

In Forex trading, there are five common reasons traders get wiped out when implementing their Forex trading strategy.

If you can avoid these mistakes and its simple to do, you can enter the elite 10% of online Forex traders that make consistent capital gains from the markets.

Here are the mistakes you need to avoid.

1. Learn the right knowledge

Many new online currency traders work hard and put in effort - but they don’t acquire the right Forex education.

FOREX trading attracts some of the cleverest people around, these traders are smart, but think they have a right to make money because of this.

Being clever and having an ego however, can be a bad trait to have in Forex trading.

These Forex traders tend to see the market the way they want to see it, not the way it really is.

If you want to make money, be humble , and simply focus on the main objective of Forex trading making money.

Humble trader who does not have an ego will beat a clever arrogant who’s obsessed with beating the market.

2. Keep It Simple

As stated in point 1, being clever doesn’t mean you’ll achieve success in online Forex trading.

You should also concentrate on trading using a simple system.

Many Forex traders think the more complicated their system is, the more successful the system is likely to be – Nothing could be further from the truth.

Simple systems are more robust than complicated systems, in the face of ever changing market conditions.

When developing your own Forex method, keep it simple and you will make money over complicate it and you will lose.

3. Accept Responsibility

When you’re trading currencies, it’s tempting to follow a guru, mentor or e-book seller who claims to have made money.

The Internet is full of Forex education you can buy for a few hundred dollars - and they all claim it’ll make you rich - but the reality is different!

The only way to succeed is to rely on yourself so don’t follow others and lose.

4. Don’t be too subjective

In Forex trading, the bulk of traders like to use technical analysis, and study Forex charts.

Studying charts can make you a lot of money, but you must NOT be too subjective.

Avoid methods such as Elliot Wave and cycles – instead use indicators that define trends.

Good indicators to use in conjunction with trend lines are:

Moving averages, MACD, RSI, stochastics and Bollinger bands.

This will keep you objective and focused and help keep your emotions out of trading.

5. Patience & chasing your tail

Many traders in FX trading want to achieve success quickly.

They start trading using one method, get frustrated with it when it doesn’t make money, and then switch to a different method and continually end up chasing their tail!

Bad periods are normally followed by good trading periods, (if you’re using a robust logical Forex trading system) so you need to stick with your Forex

Trading strategy through losing periods to reap longer term FX profits.

Know Your advantage

Ask yourself this simple question:

Why should I succeed when 95% of forex traders lose?

This is your trading advantage– if you don’t know what it is - you don’t have one and will join the losing majority.

Forex trading is not as complicated, or as hard as many traders think – you need to work hard in the right areas and be disciplined in your pursuit of success.

Fact is anyone prepared to learn Forex trading the right way, can become a consistent and profitable Forex trader.

By: Sacha Tarkovsky

About the Author:

Create a video blog…instantly.

Most traders underestimate forex trading discipline and yet without it you will never win even if you have a method that can make money - some explanation will make how important it is clearer…

What actually is forex trading discipline?

It’s the ability to execute trading signals in line with your trading system.

Why is it so Important?

Most traders believe the rubbish they read from vendors selling sure fire trading systems that they will not face a long period of losses but even the best traders have many weeks of losses and you will too.

This doesn’t mean you won’t win, you can - but you must keep executing your trading signals, while the market makes you look stupid and erodes your equity, until you hit a home run.

In forex trading you need to take your losses and keep them small if you are going to win it’s as simple as that. We don’t like taking losses but if you don’t learn to take them you will never win.

Why is it So Hard To Achieve?

When your emotions kick in, you are inclined to over ride your trading signals, or run your losses longer or simply stop trading your system rules. We all want to win and taking losses is hard the emotions of greed and fear then start to over rule our logical judgement.

Anyone who says trading discipline is easy, has probably never traded its hard, even for experienced traders - but get it and you can win and make a lot of money.

How do You Achieve Discipline then?

It’s based upon knowing what you are doing and having confidence in whatever trading system you are using. Most traders try and follow others and there confidence soon goes because they don’t know what there doing.

They don’t get the right forex education and you are unlikely to have confidence in something you don’t understand.

You need to do your homework and know how and why your forex trading strategy will lead you to success. Only by having this confidence in your forex trading system, will you stay on course and win.

A Combination of Method and Mindset

Forex trading is a combination of a simple logical robust method, which you have the confidence to execute with discipline and both need to come together for you to succeed.

Anyone can learn currency trading, it’s a specifically learned skill but 95% of traders lose and while some lose because they have bad methods, most will have poor discipline.

Forex trading success is more about mindset than method. Anyone can learn a method but fewer traders can execute a method with discipline.

So if you want to win at forex trading- never underestimate the importance of forex trading discipline, its vital to your success! So make sure you have the confidence in what you are doing by getting the right education which will give you the mindset to be disciplined.

By: Samuel Leslie Berkovits

About the Author:

Website content

Fact: Most traders don’t have the mental discipline to make big gains. This may sound odd we all want them don’t we?

Of course, but most traders don’t have the mental discipline to hold them they bank them early or get stopped out. Let’s look at why and how to hold and bank the big moves.

Why most traders cannot maintain discipline.

The reason lies in human nature. We all hate to be wrong and when we have a small loss we let it get bigger (after all it will turn around soon) so a small loss becomes a big loss – then it’s too big to take and the trader hangs on until he is wiped out.

Traders have problems with losses, but they also don’t have the discipline to make profits!

If this sounds odd (after all we all want forex profits) on reflection it’s not.

When a trader has a profit he gets excited and the bigger the profit becomes the more the temptation is there to take it before it gets way.

As normal market action eats into open equity, the greater the temptation becomes to take it, after all no one goes broke taking a profit?

YES they do!

If you don’t have the discipline to run the big profits, you will ever cover your inevitable loses.

The way to get disciplined in simple steps is.

1. Understand what you are doing

If you follow anything you don’t understand you will lack discipline and this is what many traders do.

They follow gurus or systems they don’t understand the logic of and of course wilt and throw in the towel when losses occur.

Understanding is the key to:

2. Confidence

If you don’t understand you won’t be confident to follow your system through the bad times. You will over ride it or bin it and frankly you may as well not have a system at all

3. The key

Here is the equation for success

Understanding = Confidence = Discipline

Let’s look at this in a bit more detail.

1. On your method make sure its simple and you understand why it works long term and think of losses as just a normal cost of doing business. Don’t ever follow a system blindly.

2. Make sure you place your stop as soon as you open a trade

3. Understand that the big profits in forex trading are made following the long term trends – and these last months or years and can be worth 10, 20, 30,000 or more!

4. To hold these trends you must learn to take pullbacks in open equity. This is hard when you lose a 1,000 in a day or more but keep your eye on the bigger picture – Don’t move stops to soon, you will get taken out by market noise

5. To win you have to have the discipline to cut losses, but you also have to have the mental discipline to accept big profits.

If you think about the above it’s logical, but is very hard to achieve in practice when money is on the line emotions kick in even with experienced traders, but if you understand the above you can stay disciplined and if you do you can achieve some huge forex profits.

By: Sacha Tarkovsky

About the Author:

Content for WordPress

In a famous trading experiment, it was proven that anyone could learn to trade, learn quickly and make huge profits and in the example enclosed it was millions. Let’s look at what you can learn from this experiment…

In the 1980s, trading legend Richard Dennis taught a group of people with no experience to trade and they ranged from a security guard to an actor, they were of both sexes, all ages and none were rocket scientists.

They got two weeks training and then were set off to trade and made hundreds of millions of dollars.

So if anyone can learn to trade, why do the vast majority of traders lose?

The answer is in the experiment and you should make it part of your Forex education.

Forex trading is simple to learn because all you need is a simple system!

The system the traders learned was basically a long term trend following breakout method.

Simple systems work best, because they are more robust than complicated ones and this is proven by the fact that all the advances we have seen in technology have not increased the number of winners.

The ratio has remained the same for decades 95% lose and only 5% win.

So what is it that separates winners from losers? There are two key points to consider.

1. You have to Deal with Losses

This means money management needs to be strong. Despite what all the get rich quick vendors will tell you, you need to trade through periods of losses that last week on end and preserve equity, until you hit a home run.

This is hard and can only be achieved if you have a disciplined mindset which is the subject of the next point.

2. Discipline is the Key

Discipline is needed, because when you lose, your emotions come into play and you need to carry on even when the market makes you look a fool. Discipline comes from knowing what your doing and having confidence.

It’s the one trait most traders lack and if you don’t have the discipline to follow your trading system you simply don’t have one!

Forex Trading is a Combination of method and Mindset

Anyone can learn a forex trading strategy for success but the key is executing it with discipline. So when you learn to trade you need to - get a simple system, know what you’re doing, have confidence in the logic and then you will have the discipline to trade and win.

You can learn and you can win but don’t think you can follow a junk robot, guru or mentor and be given success - you can’t.

You need to learn the basics, get confidence and rely on yourself. If you do this, you will be rewarded with a great second or even life changing income.

By: Samuel Leslie Berkovits

About the Author:

Create a video blog

Forex trading is risky and most traders simply can’t deal with the high risk that it presents. If you do then you can enter the elite minority of winners. Let’s look at some tips to manage risk…

Here they are in no particular order of importance there all important and will help you with your Forex trading Money Management!

Leverage

Today you can 400:1 leverage or more and most trader’s use as much as they can and get blown out the water. For a novice trader 10 - 20: 1 is plenty. Don’t over leverage or you will lose.

Every Trade Puts Your Money at Risk

There is no such thing as one trading opportunity being better than another they all put your money at risk and the fact is the more sure fire a trade looks the more likely it is to lose money. It’s generally the most uncomfortable trades that are the best. Always expect the worst and things can only get better.

Never Place Stops in Random volatility

Day traders and scalpers do this and lose. You may think you have low risk by having a tight stop but if its to close and your 100% guaranteed to get stopped out and that means a lose of your account equity to zero.

Risk has got nothing to do with your stop minus your target - that’s an opinion! Risk is related to probability and it’s a fact if you place stops outside of random volatility you have better odds of success.

In Forex trading you need to take calculated risks to make money. If you think you can trade with low risk and no drawdown, go and put your money on deposit - Forex trading is a big boy’s game.

Have the Courage to Accept Big Gains

It may sound odd, as we all want big gains but most people don’t have the courage to accept them. Why?

Because as soon as an open profit starts to get big, the trader wants to lock it in, before it gets away and puts his stop to close to lock it in and he does lock in a profit a minor one! He gets stopped out by normal volatility and then sees the trend continue and make thousands of dollars and he’s not in!

Have the courage to accept big gains and hold your stop back behind normal volatility and accept drawdown and open profit and keep your eyes on the bigger price at the end of the move. Sure, you give a bit back but you get more of the trend, if you don’t jack your stop up to close. Forex trading is about making money not perfection!

Putting it all Together.

You have to take risks - but you don’t want to lose too much or get too far behind. It’s a delicate balance and Forex money management needs to be taken seriously, its not an after thought, it’s the basic foundation of long term currency trading success, so make it part of your essential Forex education.

By: Kelly Price

About the Author:

Content - Members-Only Content for WordPress