(level 9) Another 5 Ways to Avoid Losing Money Trading Forex
.Pumped Up : The trick is to maintain an even keel. When you are in a trade, you want to think exactly as you would if you didn't have a trade on. To do this requires a relaxed disposition; this is not a football game. Don't get psyched up, relax and try to enjoy it.
42. Don't Think for a Long Term : Stay in the moment. Especially if you're a day trader. It doesn't matter what happens next week or next month, if you are trading with 30 to 50 point stops restrict your thought process to what's happening right now. That is not to stay the long-term trend is not important; it is to say the long-term trend will not always help you when you are trading in a significantly shorter time frame.
43. Overconfidence : Trading is hard; statistics show a 95% failure rate. If your doing well don't take your success for granted; always be on the lookout for ways to improve what you're doing.
44 focus on one currency: Focus on one currency for technical trading. Each currency has a unique way of trading and unless you get intimate with it, you will never truly understand its underlying idiosyncrasies. Don't spread yourself too thin. Focus master one currency at a time.
. 45. Staying in the Game : I don't recommend demo trading because traders learn bad habits when trading with play money. I also don't think letting it all hang out right away is wise either. Start off doing trades and taking risk that is relatively small but still makes a difference to you if you win or lose. About a quarter to a third of what you expect to reach as your trading matures is reasonable.
42. Don't Think for a Long Term : Stay in the moment. Especially if you're a day trader. It doesn't matter what happens next week or next month, if you are trading with 30 to 50 point stops restrict your thought process to what's happening right now. That is not to stay the long-term trend is not important; it is to say the long-term trend will not always help you when you are trading in a significantly shorter time frame.
43. Overconfidence : Trading is hard; statistics show a 95% failure rate. If your doing well don't take your success for granted; always be on the lookout for ways to improve what you're doing.
44 focus on one currency: Focus on one currency for technical trading. Each currency has a unique way of trading and unless you get intimate with it, you will never truly understand its underlying idiosyncrasies. Don't spread yourself too thin. Focus master one currency at a time.
. 45. Staying in the Game : I don't recommend demo trading because traders learn bad habits when trading with play money. I also don't think letting it all hang out right away is wise either. Start off doing trades and taking risk that is relatively small but still makes a difference to you if you win or lose. About a quarter to a third of what you expect to reach as your trading matures is reasonable.
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