Achieve goals, realize success
Welcome to tuitar..My latest trades:
Open a LONG position in USD:YEN @77.90 and Closed @80.23
Index (L/S) Date Open Date Closed No. Pips
USD:YEN (L) 15/02/2012 22/02/2012 233
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Scroll down to Read My Routine for a Successful Trading Session and Please read the Risk Warning.
A lot of individuals who commence to trade the currency markets for the very first time will soon discover that forex trading can be a quite emotional business. You will experience a range of distinct emotions at distinct occasions, and if you're not careful this can begin to have a negative influence on your trading.
Introduction
After studying my secondery education. I then found a job in a well known American company. I never liked the job I was doing but had no choice other than to earn a living. While I was employed by this company, I realised that I should do something productive during my spare time. I had a desire to be my own boss. Believing in myself, believing in my desires and believing in the good within me drove me to accomplish this. Life is a learning curve that we shape as we try to do something different.
Personally, I feel I am extremely patient and deciplined in whatever I do. I try my best to achieve the goal I set out. To cut the story short, A great financial crisis hit the world and my employer eventually decided to close down the company so therefore I was made redundant. One thing I learnt from this worldly economic distress, is that someone has to suffer or experience a loss to make their own personal gain. Someone, somewhere has made a great deal of money and someone, somewhere has come to a huge loss. It's known as "Market." To buy or sell. To gain or lose. To be rich or poor.
I treat my life as a market too. For example in life you experience both happiness and sorrow; both good times and bad. They are all fundamentally the same. Each experience in life has its own affecting variables but at the end of the day the same emotions are felt and the same actiones are concurred. I respect and learn from this: the "Market" is just a reflection of life. Open your ears, your mind and your heart. This is how you open your future.
The first thing to understand is that forex market is a global market created by banks, market makers and brokerage houses where trading in currencies takes place 24 hours a day and 7 days a week.
The market is open to all and has the potential to give huge profits. It is also the biggest financial market in the world where trillions of dollars are traded during the course of a day.
At the same time forex trading is a growing market as more traders are turning away from trading in stocks.
You're probably wondering why it's so important to choose a strategy for forex trading.
It's very important because the temptation to chase price is so great with enormous leverage and unlimited profit potential.
Without a proper forex day trading strategy, all you have to rely on is how you feel, which isn't a reliable indicator. Without one or two forex day trading systems, you won't have the resources you need to succeed.
When you're just waiting and speculating on when to enter and exit the market, you're just guessing and you would be better off trying your luck at the Roulette table.
Risk Warning - FX trading carries above average risk and is not for everyone, so please ensure you understand the risks. You should not engage in FX trading unless you understand the nature of the transaction you are entering into, the risks involved and the true extent of your exposure to the risk of loss. Please read the Risk Warning section of the websites you are trading with to make sure you are familiar with the relevant risks. Never use the money that you have saved for your retirement or for any other purpose. If you think it's for you then good luck - trading can be one of the most rewarding and profitable occupations out there - so good luck and happy trading. Determination and Discipline, Mindset and Money Management for Success.
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Started with US$ 500 and making money
After all these years, one thing I have never actually discussed is my routine: what I do to help prepare myself for a good run. The articles here always have and always will stress a need for individuality; everyone is different and what is right for me might not necessarily work for others.
Mental Preparedness and Staring the Day
I have a simple rule: No computer and phone for the first hour after I get up. This is “me” time, and allows me to relax and start the day in a composed manner. I drink my coffee, eat my breakfast, relax and get my things together before hitting any form of work or challenging my brain in any way, shape or form. I’m unplugged.
I work from home. My home has everything an office should have: computers, monitors, phone, printer, books and records, some plants, and a good amount of space so I never feel cramped. I also get in a “breathing” session at some point prior to heading to my home office. A brisk walk around the neighborhood.
There are a few tools that I use everyday, and simply can’t function without. There aren’t that many:
Execution Platform... Several charting software platforms, from different providers, to compare bids and asks... A phone with my broker’s trading desk’s numbers listed on speed dial... Internet browser for the regulars: Bloomberg, CNBC, Reuters, WSJ, Financial Times, etc... Easy-to-see / access monitors... Multiple internet connections and backup plan – because you never know …and that’s pretty much it. Not too bad and it doesn’t take a lot.
The Task: Analysis
I have been trading for about 3 years now, and I am a little shocked I even made it this far or where I am at in general. It started after I was made redundant from full-time employmnet, and then spawned into an entirely different animal.
The Fundamentals
Reading the news and understanding where you are is like reading a map when you’re lost in the forest. You have to understand what the underlying backdrop is for any given time period and where price sits in relation to it all. Reading the news tells me where I am and why price is moving in certain ways. It’s my map. Fundamentals are the cause, traders reacting is the effect. By the time I am done reading I have a very general but concise sense of what is happening, as well as raising my attention to anything that I might have missed. Awareness is key, I say it all the time. If you don’t know what’s going on, you’re going to fumble.
Checking the Calendar
Next on the list is to simply check the economic release calendar for the day / days ahead. I use a calendar provided through one of my live news feed providers for this, as most retail Forex websites simply overlook key events, like sovereign debt auctions, for instance, that could really shake a market. Again: awareness. Look at who your sources are and judge their quality.
Making a Fundamental Decision
After I’m satisfied with the fundamental inputs for the day, I make a basic determination for how price is going to/could possibly move based on everything I have gathered. I don’t care about price at this point. I care about all the noise, fluff and rumors out there that I know, based on my experience, how market-moving traders react. The directions of my trades are usually determined at this point unless something harsh strikes me in my upcoming technical analysis.The market moves in trends driven by all sorts of different things:
Finally….The Rest of the Day: Execution, Management, Moving Forward
First off, I am always monitoring the market. I execute in generally two different but very simple ways: long term and short term. I like to keep the books open in terms of opportunity and I know through experience that diversifying my techniques is generally a favorable tactic. I personally prefer, and generally have a higher hit rate with longer term trades. I ride out the noise and let underlying fundamental themes carry me for however many days as a market fad will last. Shorter term trades can be simply harder to call sometimes due to the dynamics at play. I go for high probability moves that I am very comfortable with and only trade during these times. I know my strengths and know my weaknesses and tend to only play my strengths. If no opportunity exists that fits this criteria, nothing gets done. Better to have a zero than negative number posted for the session. There is nothing I detest more than wasted time and putting yourself in the red for an unnecessary cause wastes future time by making up money lost. Risk gets managed between these types of positions based on some simple arithmetic, contingent, always, on how much I am willing to lose. I size my positions based on what I believe could be my total potential loss. I am also more willing to risk more when very high-probability scenarios present themselves….there’s nothing wrong with this as far as I am concerned.
Taking Breaks and Long Lunches
I make it a habit to step away from the computer for a while and gather myself. I can tell when my brain starts to muddled and instead of seeing things one by one, I see them all together. Break time calls. Moving around and getting your blood flowing is something I can’t stress enough.When people are overtrading, it is usually a function of an underactive brain, staring into space at charts and simply getting lost in the motions of the day. Don’t ever put yourself in a situation like this. It is bad for your health and bad for your trading account. Taking breaks to mess around and taking breaks for increased productivity are two very different things.
Ending the Day
I always try to end every day on a high note. Sometimes I call it day after a huge winner, though I rarely finish on a big loser. Even though I might know it is going to be a down-day, I try to make something up. But I don’t force it. I want to relax feeling like I did my best and losers certainly don’t put me in that state of mind. If I must take a loss I try and “reset” myself and back to focus on where I went wrong. I am at the point where being wrong sometimes is just a function of the business. I don’t blame it on psychology or anything of the matter. It just happens, and has to be dealt with in a logical manner. Having a huge win doesn’t necessarily mean that the day is simply over either, though. If something needs to be done I make sure that it is. Oftentimes opportunities carry from one session over to another so if I need to invest more time in analysis or research I simply make it happen.
This is my day in a nutshell, in as plain language as I can really give it. Thanks as always.
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Is Successful Forex Currency Trading Possible?
You have to develop an internal ability to control your emotions and any subsequent actions which result from your emotions if you want to be a successful forex trader. The currency markets are dynamic and always in a state of flux. A rigid mechanical approach will often fail over time.If you develop a framework to work within, this is the best approach to trading dynamic markets.
To be a profitable forex trader, you have to mentally prepare yourself.You have to overcome your own fear and greed, which is not as easy as it may sound.Trading with a clear state of mind is optimal. You need to accept the reality of the forex markets.
In reality, you can make a living trading a $1,500 forex account.If you learn one method and apply good money management, you can turn your consistency into trading profits over time. Too many traders focus on making money first and this is usually the start of their downfall.An experienced forex trader realizes losing trades is part of the process of trading and they do not get upset and blame themselves for losing trades.
You can not always count on earning the same amount of profits each month in the forex profession. Expecting to make a lot of money every month just sets you up for failure because this mindset is not reality. Why put this additional pressure on yourself? Approach the markets by thinking about opportunities.
You have to prepare yourself mentally before you begin trading forex.Keep your emotions in control. Fear and greed can destroy your trading account very quickly. When you lose control of these two emotions, you begin to spin out of control. It is during these moments when most forex traders begin the process of blowing out their accounts.
How do you prevent or overcome these emotional trading errors? You need to mentally prepare yourself every time you sit down to trade.What is your trading plan? Did you write out your trading rules? Do you use a trading journal to record each trade's details?
You have to treat forex trading like a business. You are the boss and you need to hold yourself accountable for your results.A trading plan outlines your trading strategy and incorporates your money management into a specific set of written objectives to which you may refer to on a daily basis. A trading plan acts as part of your framework to keep you on track to meet your trading goals.The dividends for staying disciplined will payoff in future profits.
A disciplined trader has a greater chance of long term trading success than an undisciplined trader.Review your previous trades which you record in your trading journal.Try to learn from your mistakes, but don't be too hard on yourself. This is a learning process.Don't forget, you can also learn more about yourself and making money with forex by reviewing your winning trades.
Holding yourself accountable for your trading results will speed up the process of you learning more about yourself and making necessary changes. Each time you review your trading journal and make a small effort to improve any inefficiencies, your trading results will continue to improve and bring you close to your trading goals.
At the end of the month you will either make money or lose money. If you are not making money, review your losing trades.
See if you can avoid a few losing trades and turn these into winning trades. This small change could make a very big difference in your monthly profits.
My trades of January 2012: I closed my Euro and AUD Long positions with a massive 1123 points gain. I opened the Long position on Euro @ 1.2689 and closed @ 1.3218. Also 594 points on AUD. I closed the both positions because profit is not a profit until you banked it. I did not want to risk untill dust settle. Enough profit for six months. Good Luck. Please do your own research and Remember "YOU ARE RESPONSIBLE FOR YOU OWN ACTIONS." Be Patience & Disciplined.
My trades of February 2012: I have Closed two positions and made 320 points so far, I have Closed my Long position on USD:YEN with a profit of 233 points. My target reached."YOU ARE RESPONSIBLE FOR YOU OWN ACTIONS." Be Patience & Disciplined.