General Info to safeguard against choppy and whipsaws - courtesy FF member ( FrankTheTank)
================================================
Only trade with the medium term trend and ignore counter trend signals.
Only trade during certain times of the day (avoid market open and close and news time)
Use pivot points and S/R levels for your entry and exits (or at least be aware of them). For example, dont take a trade directly into a support level, it
needs "room to move"
Trend info - Courtesy of FF Member ( Jacko )
======================================
DETERMINE THE TIME FRAME THAT YOU WANT TO TRADE.
1. If the graph on the chart starts in the bottom left hand corner and ends in the top right hand corner, the market is going UP.
2. If the graph on the chart starts in the top left hand corner and ends in the bottom right hand corner, the market is going DOWN.
3. If you are still confused, print it off and show it to a 5 year old...they will get it right EVERY time...LOL
The trend is the BEST friend you will ever have in the Forex market.
When you trade with the trend, even if you make a mistake, the market will get you out of your problem....If you make a mistake and you are fighting
the trend ...YOU ARE STUFFED, BIG TIME !!!
Just some additional little things that may be of assistance to anyone looking to position trade:
Firstly, don't over-trade. Some people here seem to want to bet on every tic. The thing that kills new traders is the "wild punting" on everything that
moves two ticks.
Secondly, stop thinking that you have to "outsmart" the market.
You don't have to..this business is very easy if you leave your brain at the door....just follow the trend = follow the money =going with the flow =
barking with the big dogs.
Stop thinking that "it can't be that easy".......it is!!!
Thirdly,, you have to detach yourself emotionally from the money...that is the hard part...stop seeing it as money, and look at it as numbers.
Also, don't play with money you can't afford to lose...or alternatively, put the money aside and tell yourself that it is already lost. (You MUST detach
yourself from the money
Finally, I am not saying anything different to what all the good trading books say...but it is amazing that every newbie wants to "take on" the market
and then wonders which express freight train flattened them (and destroyed their trading accounts).
Most people are trading for the adrenaline rush rather than the boring concept of just maximising profits
Recommended Books to Study - Courtest FF member - Jacko
Also, everyone who is truly interested in Forex should read as widely as possible. I have recently read some excellent books. I have highlighted the
salient points:
Jesse Livermore: The Worlds Greatest Stock Trader by Richard Smitten
1. Don't Lose money
2. Always Establish a Stop
3. Keep Cash in reserve
4. Let the (Successful) Position ride...until you have a Clear Reason to Sell.
5 Take the Profits in cash...and place 50% in a separate account
Lessons From the Greatest Stock Traders of all Time by John Boik
1. Trade with the Trend
2. Cut Losses short
3. Let Profits run
4. Manage Risk
How Legendary Traders made Millions by John Boik
1. Understand the General Trend of the market
2. Use the Knowledge of History in your Study and Observation of the Markets
3. Use your Own Research and Don't Listen to Others
4. Buy the Leaders
5. Buy only on Breakouts and Use a Pyramiding Strategy to add to those Winners
6 Cut Your Losses short
7. Hold on to your Winning Positions until Classic Sell Signals tell you to unload your Positions
================================================
Only trade with the medium term trend and ignore counter trend signals.
Only trade during certain times of the day (avoid market open and close and news time)
Use pivot points and S/R levels for your entry and exits (or at least be aware of them). For example, dont take a trade directly into a support level, it
needs "room to move"
Trend info - Courtesy of FF Member ( Jacko )
======================================
DETERMINE THE TIME FRAME THAT YOU WANT TO TRADE.
1. If the graph on the chart starts in the bottom left hand corner and ends in the top right hand corner, the market is going UP.
2. If the graph on the chart starts in the top left hand corner and ends in the bottom right hand corner, the market is going DOWN.
3. If you are still confused, print it off and show it to a 5 year old...they will get it right EVERY time...LOL
The trend is the BEST friend you will ever have in the Forex market.
When you trade with the trend, even if you make a mistake, the market will get you out of your problem....If you make a mistake and you are fighting
the trend ...YOU ARE STUFFED, BIG TIME !!!
Just some additional little things that may be of assistance to anyone looking to position trade:
Firstly, don't over-trade. Some people here seem to want to bet on every tic. The thing that kills new traders is the "wild punting" on everything that
moves two ticks.
Secondly, stop thinking that you have to "outsmart" the market.
You don't have to..this business is very easy if you leave your brain at the door....just follow the trend = follow the money =going with the flow =
barking with the big dogs.
Stop thinking that "it can't be that easy".......it is!!!
Thirdly,, you have to detach yourself emotionally from the money...that is the hard part...stop seeing it as money, and look at it as numbers.
Also, don't play with money you can't afford to lose...or alternatively, put the money aside and tell yourself that it is already lost. (You MUST detach
yourself from the money
Finally, I am not saying anything different to what all the good trading books say...but it is amazing that every newbie wants to "take on" the market
and then wonders which express freight train flattened them (and destroyed their trading accounts).
Most people are trading for the adrenaline rush rather than the boring concept of just maximising profits
Recommended Books to Study - Courtest FF member - Jacko
Also, everyone who is truly interested in Forex should read as widely as possible. I have recently read some excellent books. I have highlighted the
salient points:
Jesse Livermore: The Worlds Greatest Stock Trader by Richard Smitten
1. Don't Lose money
2. Always Establish a Stop
3. Keep Cash in reserve
4. Let the (Successful) Position ride...until you have a Clear Reason to Sell.
5 Take the Profits in cash...and place 50% in a separate account
Lessons From the Greatest Stock Traders of all Time by John Boik
1. Trade with the Trend
2. Cut Losses short
3. Let Profits run
4. Manage Risk
How Legendary Traders made Millions by John Boik
1. Understand the General Trend of the market
2. Use the Knowledge of History in your Study and Observation of the Markets
3. Use your Own Research and Don't Listen to Others
4. Buy the Leaders
5. Buy only on Breakouts and Use a Pyramiding Strategy to add to those Winners
6 Cut Your Losses short
7. Hold on to your Winning Positions until Classic Sell Signals tell you to unload your Positions