Do you know what makes great professional poker players great? Its their money management. The reason why there are few great poker players and a lot of people just gambling using luck is because great poker players know how to use money management. They know the probabilities of each card they are dealt.
In forex trading , try to make wait for the right moment to open position, rather than trying your luck just because you want to open a position. The downfall of most forex traders is that they tend to over trade.
They want to open a position just for the sake of opening a position. This is detrimental to a good trading strategy, whatever the strategy is. Money management, i believe, is the best part and makes the most part of a forex trading strategy. Systems for entry and exit like fibonacci, technical analysis and whatnot are just the small portion. A poker player does the same thing, to survive the table, he must manage the money if there comes a time when he suffers consistent losses.
Trading is the same way, you must survive consistent losses until the next big trend comes where you can make back your losses and then some. When you think about forex trading and charts, what comes to mind is that, what ever time charts you are in the principles are still the same. A 1 minute chart will be the same as the daily chart. What I found out last week while I try to trade intraday chart is that. While I wait for the next candle stick, it will take another day.
That is why when I tried trading on smaller time frames. I never got any profit. Maybe its just me. I still follow my rules but the fact that intraday trading is a whole new beast than the other charts.
I realize that if I really want to be successful in this. I need to master one chart at a time. Many books claiming that their method are great on any charts. Maybe just my strategy is not that good. That is why I bought some books for reading. I realized that you can really minimize the risk in trading.
To do that, you want to open your position on currency pairs that are correlated. If I want to open a position on EURUSD, you may realize after a while that you might be wrong, an attitude that is always good to have.
Having said that, you may want to look at the correlation table below. Doing this strategy may give you lesser risk because once EURUSD may go downtrend other currency may go uptrend thus minimizing the risk. But it also minimizes the reward. If you want to be a daredevil and amped up your profits, you may use the one below. Knowing what currency relates to one another gives you the advantage to play your cards well in case you are not sure.
People who are new to forex trading or people who are aspiring to trade in the forex market always baffles me. You know the typical people who have 9 hour job Monday to Friday and thinks that they can self sustain themselves with their job and become a millionaire in forex trading. There is nothing wrong with this train of thought and many people have started with this. If you want to succeed in forex trading, you should be competitive, have focus and never ever underestimate the market.
You can do part time work part time trading all you want, but nothing comes out anything good about being a wishy washy son of a gun. I lost quite a bit this week because of some positive news about the Eurozone and news about the USD and all good news.
And will probably for a long time. This week has been so emotional for me. This is the exact same feeling that I felt before. Its a burning passion to change. To get the things that I want, and to do whatever it takes to get it. Makes me crave for change. Makes me live life. But for those of you who have done something in their life at a roll of a dice and risk everything just for that one moment, I know you understand. Its a great feeling to risk something and be rewarded.
Its a great feeling to pursue something, no matter how impossible it may seem, and just enjoy the journey. Simply put, I think I have found my purpose and real goal for the next 10 years. And I thank Forex Trading for making me realize all that. I believe it will go down because of the momentum of the buying pressure has now probably ended.
I am still not sure. I have nothing to back up this trade but instinct. I might screw this up but at least its listed here and I can still go back with all the forex trades I made. My trade is now at I can still see that its going down now. Might as well be on the trade. I will raise the steaks. I already have a trading goal.
My ultimate goal is to earn my first million dollar with forex. But it will take a while I know. Just keeping a more reachable goal for now based on my experience. It has been a long journey and I was late for about 1 year achieveing this goal. But it has been a very good adventure and a lot of learning curve. At first I thought its impossible and now I can move on to bigger things. Bigger means bigger profit. As I trade into , I realized that my forex trading is slowly becoming a more mature system.
This I think is better than suffering the stress of day trading. But as I realize this, I might also be posting less and less because the trade have nothing to be excited about as I search for longer trades, traveling and searching for the meaning of life.
My analysis and opinion and of course open questions about how I trade and my indicator, ichimoku. What do you guys think? A signal service or a membership club or both? A lot has happen last week. The strategy for me investing in the stock market is for a less risky, long term, income generating approach. While my forex trading will be my aggressive side.
Never put all your eggs in 1 basket as they say. Last week has been good forex trading not so good on local markets and stock market though. Kind of practiced patience not only in trading but in general as well. You see, last week, this site was hacked. And I thought that was a good opportunity to test patience as I never panicked and just calmed myself that everything is alright.
Now looking back at it, it felt pretty good. Friday, I got a chance to enter a trade that I thought was a good time. Its a good buying opportunity. Even if it is not the end of the trend, it is still a small risk to take with great rewards. Weekly is on a downtrend and Monthly has just reach a support. Seems to me that it already hit rock bottom. Remember to use stop losses so you can lessen risk. How to Reach Goal Study more about money management Risk more and be defensive Always think that I might be wrong in a given trade.
Making me think defensively rather than offensive taking unnecessary risks. Put more risk on successful trades. And reduce risk for wrong trades. Always think about the exit more than the entry. Money management, psychology and exit strategy. Trade only on longer charts. Remind myself to refrain from overtrading. Anyone also investing in the stock market?More...