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Trading Thoughts Compiled

  • #21
  • Mar 1, 2010 1:06pm Mar 1, 2010 1:06pm
So, let's take the example of Iraq, businesses in this country is been affected by wars, which is also affects the whole economy of the country. The economy is not stable, so that affects the market power of their currency. Comparing it to country who has a stable economy and politics. Investors or traders will of course choose a country's currency that is better than the other.

Traders, especially that fundamental analyst used this analysis for a long term trades, because it takes time for them to analyze and predicts before they trade. These are few of those fundamental analysis objectives.
* to predict its probable price evolution,
* to make a projection on its business performance,
* to evaluate its management and make internal business decisions,
* to calculate its credit risk.
  • #22
  • Mar 2, 2010 12:47pm Mar 2, 2010 12:47pm
Humor in trading

I read a lot of forex forums and read some of them. Most forums that I read speaks about the way they trade, when to trade and how much money is needed in the trade. Forex trade is a serious business, since it speaks about money. Not a single currency but a whole and wide topic about currency.
  • #23
  • Mar 2, 2010 12:48pm Mar 2, 2010 12:48pm
I am just curious... I wonder how traders look like after the trade. Maybe all traders look the same with that serious face and the unapproachable facial reaction, that even little creatures can't come closer to them. I am not saying this to criticize traders but to say that in trading, humor should not be out in the circulation. I am thinking maybe this is one of the reasons why other traders lose because they are so very serious on their trades. Comparing it to those who just stay relax but stay focus on their trade.
  • #24
  • Mar 2, 2010 12:50pm Mar 2, 2010 12:50pm
Sometimes traders forgot to do this and are sometimes neglected; they forgot to balance their lifestyle. Don't underestimate your trades, but do not forget to smile and laugh. When you lose in the trade, laugh it out, when you win in the trade, then laugh it out. If you keep on losing, don't look at it as the end of your trade, but rather look at it as a learning experience then laugh it out. Scientist say that people who often laugh or smile increases their face value. So why not laugh at your losses rather than keeps on thinking on it, and blaming or cursing Forex trade. Make a difference.
  • #25
  • Mar 2, 2010 12:51pm Mar 2, 2010 12:51pm
"Personal reasons not to trade"

There is one main reason why traders go for a trade,and that is to gain profit. But there are reasons why traders should not trade, either of this two. Personal or Market Reasons. Let's see what the personal reasons are.
  • #26
  • Mar 2, 2010 12:52pm Mar 2, 2010 12:52pm
1. Do not trade while drunk.
If you really want to gain pips, you have to avoid liquors before you take the trade. Sounds funny, but some traders do this. So think twice, never mind those martini, vodka, tequila or whatsoever liquor you have their in your storage. Be wise, don't drink.
  • #27
  • Mar 2, 2010 12:54pm Mar 2, 2010 12:54pm
2. Get rid of all distractions.
Whatever your other businesses are, provide a time for your trade. To avoid distractions from outside factors, such as the sounds of vehicles (if you live along the road), the loud music of your neighbor and so on and so forth, you have to focus. The world is full of distractions and noises, so whatever your potential distractions are, deal with them before you start to trade.
  • #28
  • Mar 2, 2010 12:55pm Mar 2, 2010 12:55pm
3. Emotional times.
If something emotional has happened, and you can’t be subjective, then do not trade. Before you trade, make sure you are emotional stable. Don't trade when bad things happened with you because this will affect the way you trade. Emotions play a big part on this trade, so it is advisable for you to manage your emotions first.

These personal reasons not to trade should not be neglected nor underestimate, these are the things that you can control or have some degree of control over
  • #29
  • Mar 3, 2010 4:14pm Mar 3, 2010 4:14pm
Yesterday I wrote about the personal reasons why a trader should not trade. Now, were going to see what the market reasons not to trade are.

1. Bank Holidays.
These are scheduled and there is nothing you can do about it, since Banks serve as the biggest participants in the Forex market.
  • #30
  • Mar 3, 2010 4:16pm Mar 3, 2010 4:16pm
2. News.
These can be found, in advance, in a number of places but the most popular one seems to be the Forex Calendar, provided by Forex Factory. It’s not a good idea to trade, for the hour before or after the news.
  • #31
  • Mar 3, 2010 4:17pm Mar 3, 2010 4:17pm
3. Erratic Periods.
There will be times where a currency is moving differently from normal. Perhaps it’s spiking and you don’t know why. This is a good time to stay out of the market. If you don’t understand why it’s moving like this then it’s generally because there is unscheduled news that has been released or leaked.
  • #32
  • Mar 3, 2010 4:19pm Mar 3, 2010 4:19pm
4. Weekends.
It’s not advisable to hold trades over the weekend, unless your method is a long term strategy which specifically involves holding trades for longer time frames, such as weeks or months.
  • #33
  • Mar 3, 2010 4:20pm Mar 3, 2010 4:20pm
5. Market close/open.
Good idea to avoid these or be wary around these times. At market close a number of trading positions are being closed. This will lead to volatility in the currency markets and can cause the price to move erratically. The same applies at market open. A lot of people are opening positions as they do not want to hold them over the weekend for the reasons stated above.
  • #34
  • Mar 3, 2010 4:23pm Mar 3, 2010 4:23pm
6. December and Summer Holidays.
Banks tend to trade the Forex markets at least once a day for balance sheet reasons and can also trade a number of times throughout the day for speculation reasons.

You got to keep your body in prime fighting condition but holidays are also part of giving your mind some relaxing time to recharge those batteries, ready to go when you return.
  • #35
  • Mar 4, 2010 5:04pm Mar 4, 2010 5:04pm
Holy Grail? What is the connection of the holy grail with forex. Well, it's not what you are thinking. In forex, holy grail is somewhat a perfect strategy in a trade, having this strategy will lead you to gaining pips. Other traders says that holy grail doesn't exist, because there is no such thing as a win win strategy or 100% win. Well, I am getting confuse with this holy grail, I wasn't suppose to give attention to this, but because of curiosity I was like reading forums about this thing. Blame it to curiosity.
  • #36
  • Mar 4, 2010 5:05pm Mar 4, 2010 5:05pm
Arguments are in the air, when I am reading this particular thread talking about the "holy grail" thing. I was trying to weigh which is the real from not real. I am also curious where did they get the name as holy grail. Making me confused. After I read all those posted replies on the forums, my brain was like boggling.
  • #37
  • Mar 4, 2010 5:06pm Mar 4, 2010 5:06pm
Well, anyway, no matter what they call it, for me it's still a strategy. Some traders spend their time looking for this so called holy grail, but it's not only on the strategy. A successful trader has the all-in-one formula why did they became successful in their trade, and it's not because of the holy grail, BUT because of the more important factors in trading
  • #38
  • Mar 10, 2010 4:42pm Mar 10, 2010 4:42pm
"Money Management"

It is a paradox, but its the real thing. Some traders overlooked this because of one reason "GREED". I read one of the forums, someone wrote about his losses in the trade that makes his life miserable. And this is because of the purpose of wanting to gain bigger profit. He uses his funds that aren't disposable in his trade which compose of his family, food, child support and the like.
  • #39
  • Mar 10, 2010 4:42pm Mar 10, 2010 4:42pm
Sad to hear that some traders are so stuck with their trade and sacrifice their family's well-being just to be in the trade. They simply determine how much they can stomach to lose in a single trade and hit the “trade” button. There’s a term for this type of investing….it’s called GAMBLING!
  • #40
  • Mar 10, 2010 4:43pm Mar 10, 2010 4:43pm
When you trade without money management rules, you are in fact gambling. You are not looking at the long term return on your investment. Instead you are ONLY looking for that “jackpot”. Money management rules will not only protect us, but they will make us very profitable in the long run
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