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Some Advices before Entering Forex Trading

  • #1
  • First Post: May 25, 2010 7:52am May 25, 2010 7:52am
Hey all , I will discuss with you Some Advices before Entering Forex Trading & here u r the advices :
There is an ideal mindset, character, and mental attitude that traders need to acquire. I say “acquire” because few people have the innate personality that makes this mindset “natural” With respect to your trading, this involves being free of anxiety, fear, despair or regret. It also involves being able to remain calm, confident, focused and disciplined in the face of adverse trading outcomes.
  • #2
  • May 25, 2010 9:27am May 25, 2010 9:27am
HI Mary, I would like to add something since I have been live on my account. I think one of the most important key focus is Patience... Without Patience you will not become successful, as a matter of fact you can blow your account in record time. I started becoming successful in my trades when I waited for the right setups, this prevented the emotion, the fear, the guilt, the doubtfulness, and this procceeded to produce a successfule trade(s).

If there is anything I can say about being in the 5% success of forex is learn patience. Demo account wont teach you this, only a live trading account will.

Most of the traders I see and have followed on here which are successful will go for hours, days, and even week(s) without placing any trades. I have gone from forcing my trades to, letting the trades come to me.

I hope this helps. I am not a pro yet but little by little I inch closer to the 5% and yes I have a long way to go but patience will shorten this path.
Know when to hold em, Know when to fold em!
  • #3
  • May 26, 2010 11:06am May 26, 2010 11:06am
I think patience and also discipline are important. I'm just now starting to learn about Forex but I played the stock market and messed around with penny stocks before and failed because I wasn't patient and I wasn't disciplined. I think with anything, it's important to have a good proven plan or strategy and stick with it.
  • #4
  • May 26, 2010 12:34pm May 26, 2010 12:34pm
Quoting Vega
I think patience and also discipline are important. I'm just now starting to learn about Forex but I played the stock market and messed around with penny stocks before and failed because I wasn't patient and I wasn't disciplined. I think with anything, it's important to have a good proven plan or strategy and stick with it.

Vega, Forex is a completely different animal than stocks. You need to have some time on demo to adapt to it.
Know when to hold em, Know when to fold em!
  • #5
  • Edited 5:34pm May 26, 2010 5:23pm | Edited 5:34pm
Wrong! There are several similarites, including use of same indicators and psychology of trading.

Quoting goods
Vega, Forex is a completely different animal than stocks. You need to have some time on demo to adapt to it.
  • #6
  • May 27, 2010 6:37am May 27, 2010 6:37am
I think there are many things are important before trading like study Forex well Also as goods said to be patience.
  • #7
  • May 27, 2010 5:08pm May 27, 2010 5:08pm
Quoting goods
Vega, Forex is a completely different animal than stocks. You need to have some time on demo to adapt to it.
I agree that there are key differences. FWIW, I listed some of them here.
  • #8
  • May 27, 2010 5:13pm May 27, 2010 5:13pm
Have the understanding that entering the World of Forex has the potential to completely ruin your life.
Don't wish it were easier, wish you were better. ~ Jim Rohn
  • #9
  • May 27, 2010 5:42pm May 27, 2010 5:42pm
Quoting LasVahGoose
Have the understanding that entering the World of Forex has the potential to completely ruin your life.
What? Like getting married?
Gone to a better place
  • #10
  • May 27, 2010 6:49pm May 27, 2010 6:49pm

Attached Image

Suddenly everyone's into Pole Vault.
Don't get into Forex for the wrong reasons.


Quoting smikester
What? Like getting married?
I guess one should never get married for the wrong reasons. Is that not common sense?... or is it too common that it doesn't make any sense!?
  • #11
  • May 28, 2010 11:23pm May 28, 2010 11:23pm
Quoting MaryMartinez
Hey all , I will discuss with you Some Advices before Entering Forex Trading & here u r the advices :
There is an ideal mindset, character, and mental attitude that traders need to acquire. I say “acquire” because few people have the innate personality that makes this mindset “natural” With respect to your trading, this involves being free of anxiety, fear, despair or regret. It also involves being able to remain calm, confident, focused and disciplined in the face of adverse trading outcomes.
If you wish to "acquire" this "ideal character, mindset and mental attitude" then I suggest not to focus on "acquiring" it, as many traders assume needs to be done.

Rather, my suggestion is to focus on developing a robust trading methodology built on a foundation of research, knowledge, good documentation, experience, continuous improvement, adapatbility, and flexibility (we're talking about a 3-5 year project here). And if you are able to develop your practical and robust methodology, then one of the outcomes will likely be the ability to trade in a calm, confident and patient manner.

Sure, a good attitude and mindset is required for your 3-5 year apprenticeship, but quite often the 'good pyschology' required for trading successfully is just an output of a good method, and is not neccessarily an objective unto itself as many aspire to. "Anxiety, fear, despair or regret," are also often outcomes of a poor method and should be treated as symptoms not underlying causes...

Focus on what is tangible and real, the emotional stuff will follow.
  • #12
  • Jun 2, 2010 8:46am Jun 2, 2010 8:46am
Here u r another Some Advices before Entering Forex Trading

Good Execution Good Anticipation
Everybody knows that trading is a number game. I mean, our success is not depending on the outcome of the next trade, our success is depending on the overall profitability of many trades. So, while we are trading, whether the last trade we did was profitable or not is definitely not important. There is no point drawing conclusions on the outcome of just one –or even a few-trades. We can only access our anticipation skills when we have made a reasonable number of trades and see the longer-term result of our action. It is so important that when we are trading, our goal should be focus on executing our trades with ruthless efficiency and to judge only that. If you consider the ways that you lose money trading, you will find that it is down to poor execution, rather than poor anticipation.
Cut Your Losses Early and Let Your Profits Run
This simple concept is one of the most difficult to implement and is the cause of most traders demise. Most traders violate their predetermined plan and take their profits before reaching their profit target because they feel uncomfortable sitting on a profitable position. These same people will easily sit on losing positions, allowing the market to move against them for hundreds of points in hopes that the market will come back. In addition, traders who have had their stops hit a few times only to see the market go back in their favor once they are out, are quick to remove stops from their trading on the belief that this will always be the case. Stops are there to be hit, and to stop you from losing more then a predetermined amount. You simply allow your profits on the winners to run and make sure that your losses are minimal. What is it about cutting a loss that is so hard?
Do Not Over Trade
Do not bet on the farm. One of the most common mistakes that traders make is leveraging their account too high by trading much larger sizes than their account should prudently trade. Leverage is a double-edged sword. Just because one lot of currency only requires $1000 as a minimum margin deposit, it does not mean that a trader with $5000 in his account should be able to trade 5 lots. One lot is $100,000 and should be treated as a $100,000 investment and not the $1000 put up as margin. Most traders analyze the charts correctly and place sensible trades, yet they tend to over leverage themselves. As a consequence of this, they are often forced to exit a position at the wrong time. A good rule of thumb is to never use more than 10% of your account at any given time.
Do Not Marry Your Trades
The reason trading with a plan is the #1 tip is because most objective analysis is done before the trade is executed. Once a trader is in a position he/she tends to analyze the market differently in the hopes that the market will move in a favorable direction rather than objectively looking at the changing factors that may have turned against your original analysis. This is especially true of losses. Traders with a losing position tend to marry their position, which causes them to disregard the fact that all signs point towards continued losses.
So should you before you trade. In order to start the trading day in the optimum state of mind you should take 15 to 20 minutes to prepare. Treat each day like an elite athlete prepares for a competition. Here is how to do this:
1. Get yourself in a comfortable sitting position and close your eyes
2. Breathe in and out slowly, pushing your stomach out each time you breathe in
3. Consciously relax all your muscles
4. Focus your entire attention on your breathing
5. When your mind starts to wander (as it will) re-focus on your breathing so that you eliminate from your consciousness whatever your mind had started to think about -including bodily sensations
6. Become aware of being exclusively -in the present moment. Exclude memories or thoughts about past events, and worries or anticipation or planning about the future
7. Do this past the point of boredom, until your restless mind settles down and you enter a peaceful, relaxed state. This usually takes 15 to 20 minutes, but it can be longer for some people
  • #13
  • Jun 2, 2010 10:13am Jun 2, 2010 10:13am
Don't go to the "Interactive Trading" board and any post discussing any pairs. Ignore people's opinions on the future movement of the currency.
  • #14
  • Jun 2, 2010 5:02pm Jun 2, 2010 5:02pm
Quoting smikester
What? Like getting married?
Confucious say: " Man is incomplete until he gets married......then he's finished"
It never gets easier, you just get better
  • #15
  • Last Post: Jun 3, 2010 2:48am Jun 3, 2010 2:48am
Quoting Sharni
1. Get yourself in a comfortable sitting position and close your eyes
2. Breathe in and out slowly, pushing your stomach out each time you breathe in
3. Consciously relax all your muscles
4. Focus your entire attention on your breathing
5. When your mind starts to wander (as it will) re-focus on your breathing so that you eliminate from your consciousness whatever your mind had started to think about -including bodily sensations
[font=Verdana]6....
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