May 5, 2012
Dr. Doug Hirschhorn is a performance coach who has helped hundreds of traders gain more confidence in the trading skills. Here we talk about why writing down your “ideal trade” and grading your trades as A, B, or C is important. We also discuss how to deal with all the noise in trading chat rooms and on Twitter. We also talk about why finding a trading style that matches your personality is so critical to your long—term success.
May 4, 2012
Stuart McPhee, author of Trading in a Nutshell, discusses the main reasons why he feels that traders fail, and the fine balance between confidence and overconfidence.
Mar 31, 2012
Stuart McPhee stats “Competence yields confidence in trading… this is the key to to mastering your trading psychology.
No discussion about trading, or the consideration to begin trading, can be done without a harsh realization — the vast majority of all traders lose.
It is said that the reason that most traders lose is because they are not psychologically prepared to trade, that is they are not prepared to accept financial risk for something of which they have no control over the outcome. Trading is much more of a psychological problem then a methodological one, only the traders who have first accepted this have a chance of being consistently successful traders. Without an understanding of trading psychology and the various issues that circumvent method, there will be virtually no chance to overcome the fear, confusion, and despair that can be inherent in trading.
???Genius is 1% talent and 99% hard work ?????? – Albert Einstein
Hello:
If all traders the world over would focus more on risk management instead of the allure of bounty without the burdens of labor, they???d be a lot better off. Portfolios can be kept permanently safe thru risk control measures. Trading offers you only 2 possibilities at the opening of a new order: either the trade goes in your favor or it goes against you. If it goes in your favor, fine. If it goes against you, then you ought to have set your risk parameters so that the negative trade would cause negligible damage. But people tend to put too much confidence in trading systems and analyses, and thus wouldn???t care much about risk management. It???s not the market or bad luck that causes us to fail but our very overconfidence.
Now going to my trading analyses for this week, I have no open positions right now but I???m going to enter new positions soon.
AUDUSD
Primary Trend: Bullish
The primary trend remains bullish despite the panic sell-off that occurred this week ??? owing to the natural and technological woes that beset Japan. The present scenario would have to continue for some days before the primary trend can turn bearish. Otherwise a new bullish trend would resume. Japan is trying all she can to curb further effects of these disasters and do all in her capacity to bring things to normal. It???s a beginning of a slow, but steady recovery.
NZDUSD
Primary trend: Bearish
This week has brought serious bearish run on this pair. Even any temporary bullish rally only caused further downward move. But I believe this can???t continue forever, since there may be a turn in the trend any time. Strongly trending markets are prone to correct; and you never know when what appears to be a correction may in fact be the end of the trend.
EURCAD
Primary trend: Bullish
Contrary to expectation, this cross continued a strong bullish journey. However, this is expected to come to end very soon. The higher the market goes, the better the entry price for sellers when the price does turn finally. The much anticipated weakness in the EUR would cause strong downward journey and the primary trend could turn bearish.
EURAUD
Primary trend: Bullish
The outlook on this cross is similar to that of the EURCAD. Buyers are still predominantly victorious here. Level 1.4300 has proven to be a strong resistance, and if the price can???t re-test it, or re-test it without breaking it successfully, then I???d expect a resumption of a strong bearish move, breaking one support after the other. If one is caught on the wrong side of the market, the Stops would limit losses (Stops have been described as the life insurance policy of traders that constantly survive mad market movements) and save one from a margin call; even if it???s a pyrrhic victory.
EURNZD
Primary trend: Bullish
This week, NZD is very weak and the EUR is very strong ??? hence the reason behind the present strong bullish movement. The price is still trying to inch above the SMA 20. The ADX 20 level is showing a very strong trend. +DI has gone much above its ???DI. Nevertheless a serious turn is possible anytime, and the best thing a trader can do is to be ready for their opportunity when it comes.
AUDJPY
Primary trend: Bullish
In spite of a steep fall on this market this week, the trend is still bullish. But if the present event continues, it???d make the long-term bias go bearish. The events in Japan are saddening and disturbing. Since the Yen is an anti-cyclical currency, it gained a remarkable strength against all currencies ??? something that doesn???t favor the country???s export industry. As with every strategy since the dawn of trading, when the crowd catches up, the edge is gone.
Conclusion: Educational research tells us that learning is most likely to occur when learners are actively involved in the acquisition of knowledge and skills. At a recent seminar, noted trader Linda Raschke said that one of the primary reasons most traders fail is that they underestimate the time needed to learn and develop trading skills. It does take time, and also a certain kind of practice.
I end this article with quotes from Dr. Gary Dayton:
1. ???It is not enough, for example, to know a trade setup. The real secret is to practice that trade setup in all different market conditions and situations.???
2. ???Use a daily practice routine to acquire highly specialized trading knowledge, skills and abilities. Reaching high levels of success come not from your genes but from your effort??? Achievement comes from the hard work of deep, deliberate practice.???
3. ???Top performers in every field study their craft diligently and most all have a coach, mentor, or trainer who helps them develop their particular skills. A music prodigy learns the foundations of music and is then shaped and trained by their teacher(s) until they reach high levels of excellence. Professional tennis players work hard with coaches in developing weapon-like strokes, mental toughness skills, and winning game strategies. A skilled lawyer is usually mentored by a senior attorney. Traders, too, can benefit by careful study and working with coaches on both technical and mental skills.???
Your questions and opinions are highly welcome.
Thank you.
With best regards,
Azeez Mustapha
Forex Signals Strategist, Funds Manager &Coach
Email: amustapha@fxinstructor.com
Get my Forex trading signals at: http://www.fxinstructor.com/en/analytics/ituglobal
And my past articles are also available at: www.ituglobalforex.blogspot.com
Yahoo! Messenger ID: saazalmu
NB: There is risk of loss in trading, but it is possible to be a successful trader.
Forex TV – Alaron’s Kozak gives his forecast for the Forex market. The JPY fell against the world’s 16 most-active currencies after Abu Dhabi said it will buy a stake in Citigroup, giving investors confidence to buy higher yielding assets with loans from Japan.
bit.ly With My System You Can Make Money from the Stock Market DURING the Recession… No Matter How Bad the Economy Gets! ===================================== Here’s what you’ll be getting in the course There are a total of 41 videos within the course. The videos are grouped into several “Modules”, with each Module containing ‘hands-on’ videos walking [...]
bit.ly Forex Bling is a tested automated tool which works based on a complete requirement to make money in FOREX Market. It is a tool equipped with proven trading plans and money management, which gives you: * Peace of mind, and frees your mind from anxiety, fear, and stress. * Disciplined trading behavior * Confidence [...]
www.ForexAutopilotRobot.com – Most Powerful Forex Day Trading Software to Multiply Your Profit Earning! – Forex Day Trading Software is designed to analyze and identify the outstanding and potential Forexs that are profitable to the traders. One does not need to spend days and nights to do this tedious work with the help of trading software. [...]
bit.ly Forex Bling is a tested automated tool which works based on a complete requirement to make money in FOREX Market. It is a tool equipped with proven trading plans and money management, which gives you: * Peace of mind, and frees your mind from anxiety, fear, and stress. * Disciplined trading behavior * Confidence [...]
Warren Buffett says that distressed assets are a great investment in an interview with Charlie Rose. He talks about Mortgage-Backed Securities, the government bailout. He says if you buy distressed assets at distressed prices, you will make money. He also mentions his confidence in the US economy over time, and closes with his classic quote: [...]
