Well, its been a while since i posted anything here. Been busy with work and trading.
I know there are some greenhorn traders so i got to share a few words to help with their education and confidence: the truths about trading.
1. You will not make any money from Forex unless you understand the architecture of the market (why prices move) and the psychology behind it all. Why does the price change and why this pattern is formed? Why a trend-line break is so powerful? What can pinbars tell us about market sentiment and what the big boys are thinking
2. Once you know the architecture and the psychology of those who make up the "market" you will have to apply some money management strategy to keep your growth (or shrink) consistent/controlled. You do not want to have 5 winning trades and 1 helleva loser that breaks the piggy bank.
3. Trade by looking on weekly, then daily then maybe 4hr chart for now . The weekly and daily have their own patterns and patterns on this magnitude are hard to break by lower time frames. So its a good idea to trade with the bigger waves.
4. IF your expectations are too high it will reflect on your account equity. Trade as frequent as u see fit. Its your money
updated: DONT AIM TO MAKE X% per month. Just trade what you see. Being in the market at all times may not be healthy. There are three positions in the market: Long, Short, Out of trade (sidelines)
5. There are a few good solid trades per month. Those that are A+ trades and God bless when u find them.
6. Dont hope, but its ok to fear. REASON it OUT. IF the market is running out of steam, don't hope and pray u gonna make more pips....GET OUT of the trade, at least partially. If you are wrong, you are wrong. GET OUT. No way the market is gonna say "guys, we made a mistake"
No, YOU made the mistake and must correct yourself by exiting the trade.
7. In the same breath, learn to live out your trades lifetime...dont exit too quickly WITHOUT A REASON. A good question to ask yourself when thinking of exit is this: (if u were selling) ask yourself would you buy here? why would you buy? if u find a reason to buy then you found a reason to exit your sell trade. Reasons may be support/resistance area....or a price pattern forming that is against your trade direction.
8. Remember, that retail traders are only about 2-3% of total trading volume (now i'm hearing 20%). Others are institutional traders who trade for liquidity and some could care less where the price will be next week: some even profit from the spread.
You are only following a herd much bigger than yourself. You are trying to stay alive by not letting the market run you over.
I know there are some greenhorn traders so i got to share a few words to help with their education and confidence: the truths about trading.
1. You will not make any money from Forex unless you understand the architecture of the market (why prices move) and the psychology behind it all. Why does the price change and why this pattern is formed? Why a trend-line break is so powerful? What can pinbars tell us about market sentiment and what the big boys are thinking
2. Once you know the architecture and the psychology of those who make up the "market" you will have to apply some money management strategy to keep your growth (or shrink) consistent/controlled. You do not want to have 5 winning trades and 1 helleva loser that breaks the piggy bank.
3. Trade by looking on weekly, then daily then maybe 4hr chart for now . The weekly and daily have their own patterns and patterns on this magnitude are hard to break by lower time frames. So its a good idea to trade with the bigger waves.
4. IF your expectations are too high it will reflect on your account equity. Trade as frequent as u see fit. Its your money
updated: DONT AIM TO MAKE X% per month. Just trade what you see. Being in the market at all times may not be healthy. There are three positions in the market: Long, Short, Out of trade (sidelines)
5. There are a few good solid trades per month. Those that are A+ trades and God bless when u find them.
6. Dont hope, but its ok to fear. REASON it OUT. IF the market is running out of steam, don't hope and pray u gonna make more pips....GET OUT of the trade, at least partially. If you are wrong, you are wrong. GET OUT. No way the market is gonna say "guys, we made a mistake"
No, YOU made the mistake and must correct yourself by exiting the trade.
7. In the same breath, learn to live out your trades lifetime...dont exit too quickly WITHOUT A REASON. A good question to ask yourself when thinking of exit is this: (if u were selling) ask yourself would you buy here? why would you buy? if u find a reason to buy then you found a reason to exit your sell trade. Reasons may be support/resistance area....or a price pattern forming that is against your trade direction.
8. Remember, that retail traders are only about 2-3% of total trading volume (now i'm hearing 20%). Others are institutional traders who trade for liquidity and some could care less where the price will be next week: some even profit from the spread.
You are only following a herd much bigger than yourself. You are trying to stay alive by not letting the market run you over.
100% of traders are losers. Just that some win more than they lose!
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