There is one thing anyone who trades the forex market will come to realize at some point in their trading career is that at any given time the market can and will do anything.
As technical traders we have spent time studying the markets and have grown fond of the lessons price action has taught us. We use events of the past to anticipate high probability actions of the future. But the hard and cold reality is that the market is the only one that truly knows what the market is going to do!
In the market there are buyers and sellers. Buyers will move a currency pair higher, while sellers will move a currency pair lower. Since there are human participants in the market we use tools of nature in our technical analysis such as Fibonacci ratios and Elliott Wave analysis. But in the end the profitability of a trader comes down to our basic beliefs.
When the market is moving up there are more forex traders with a belief of the market moving higher then there are traders believing the markets are moving lower.
It is that simple!
To keep trading profitably we must exhibit solid trading beliefs in ourselves and in our forex trading systems. Here are 3 traits we must incorporate into our currency training belief systems to have consistent success.
1. We must pre-define the risk before entering any trade. We must be able to quantify the “what if I am wrong” question. It is always the trader that is wrong and never the market itself.
2. Listen to the market. It will answer your question. Don’t ignore what the market is telling you. Solid traders will cut there loses with hesitation or reservation when the market goes against them.
3. Good forex traders have a systematic and organized system for taking profits. When entering a trade a successful forex trader will access the risk in a trade, enter a trade on a systematic risk-reward ratio and exit (without hesitation or reservation) when a profit target is achieved.
Expect the unexpected! Knowing the risk and reward and taking the trades that the market gives you is the best, most consistent way to succeed in the forex market. Trading the forex market is a marathon and not a sprint. You will hit some homeruns, but only if you apply a consistent and systematic approach to your trading.
We all must believe in something. Believe that the market is always correct and when you are wrong the market is not branding you as a failure, merely proving you with feedback to make you an even better trader!
For more information on the force market visit FX Trade Central , sign up for FXTC's Forex Education Newsletter and be sure and preview FXTC’s approved list of forex education courses and continuous learning tools.
Happy Trading!
Evaluating the Forex Market
Hello Forex Nation!
I recently wrote an article for EzineArticles.com about Evaluating the Forex Market. Check it out and it is free to include as content on your site or blog as well.
http://www.ezinearticles.com/?Evaluating-the-Forex-Market&id=180987
Happy Trading!
I recently wrote an article for EzineArticles.com about Evaluating the Forex Market. Check it out and it is free to include as content on your site or blog as well.
http://www.ezinearticles.com/?Evaluating-the-Forex-Market&id=180987
Happy Trading!
Trading Off Consensus Expectations: Does It Work?
Great article for all you Elliott Wave fans. This article focuses on the analysis of the economic data released this week!
Trading Off Consensus Expectations: Does It Work? Forex Focus Elliott Wave International
I have traded EW in my options trading for years and I have come to enjoy it as well in my forex market evaluations.
If you want to read more about forex education just visit FX Trade Central.
Happy Trading!
Trading Off Consensus Expectations: Does It Work? Forex Focus Elliott Wave International
I have traded EW in my options trading for years and I have come to enjoy it as well in my forex market evaluations.
If you want to read more about forex education just visit FX Trade Central.
Happy Trading!
Be Aware of Your Trading Patterns
If you're like most traders, you've probably noticed some patterns in your forex trading activities. These are situations that show up time and again under different circumstances. The end result usually remains the same. In and of themselves, such patterns aren't necessarily good or bad.
Your trading patterns can be the source of satisfaction in your trading performance or tremendous frustration in your inability to trade consitently, forex profit or loss. In fact, it's quite likely that you have both positive and negative patterns in your trading right now.
Let me share some of mine with you. I have very good trading preparation habits. I go through a routine like a golfer before every shot. This pattern has resulting in excellent entry and trade management practices.
Let me tell you about the dark side. I also have a habit of trying to measure myself against other traders. Mistake! Competition can kill your trading account.
I am working on correcting this habit in my trading, but I also recognize that in other entrepreneurial activities this is an asset.The root of most patterns lies in one’s individual belief system. These are translated into your personal expectation of what you can and cannot achieve.
Confidence also plays into the equation. If you believe that you cannot trade the forex market you will turn to internalize all losing trades and find yourself unable to pull the trigger on the trade. You will allow entry point after entry point pass.
Your account will not reflect your true talent; you get frustrated and join the chorus of all those people preaching the risky nature of forex!
Let’s look at some specific steps you can take to create new trading patterns that will improve your overall currency trading experience.
1. Note Your Current Trading Patterns – Keep a detailed record in your trading journal to document your patterns, both good and bad. Your trading journal shoul dnot oly contain the technicals. but any environmental factors that could impact your trading.
2. Stop Blaming – Learn to take personal responsibility for actions, treat the negatives as a lessoned learned and move on! There is no such thing as failure only feedback!
3. Visualize Your Desired Pattern – Act as if you are the best forex trader in the world! I see myself being calm and cool when discussing trades with my fellow forex traders.
4. Watch the Words You Use. They Define You! – My list of Forbidden Words.
Try (I will Do or I will not do.)
Can’t (I even took it out of my spell check dictionary!!!)
But (It is an “And” world!)
Hope (I replace with “know”)
Problem (I replace with “Challenge’)
If (I replace with “when”)
Why (I replace with “what” or “how”)
5. Put Some Distance Between Yourself and from Your Old Habits – They say you are the sum of the 5 people closet to you. If you want to be a successful forex trader then start hanging out with successful forex traders. If you don’t know any, then create a local forex trading club.
This is why I am a champion of FX Trainer Financial Services Inc. forex education methodology. Their goal is to create that community of successful forex traders!
6. Take Supportive Action – The key word is to take action! My dog (I have a beautiful Vizsla) developed a jumping problem when he greeted people. To address this undesirable pattern I replaced it with another command – sit! Then I give him a treat.
Once I recognize a pattern, deploy a strategy to change the pattern and succeed I am sure to reward myself with a round of golf. That’s my liver treat!
Remember that awareness, personal responsibility and action will be the key to identifying and developing sound forex trading practices!
FX Trade Central has identified personal self-mastery has a key destination in your forex education roadmap.
For more information on forex education visit FXTC’s course listing.
Happy Trading!
Your trading patterns can be the source of satisfaction in your trading performance or tremendous frustration in your inability to trade consitently, forex profit or loss. In fact, it's quite likely that you have both positive and negative patterns in your trading right now.
Let me share some of mine with you. I have very good trading preparation habits. I go through a routine like a golfer before every shot. This pattern has resulting in excellent entry and trade management practices.
Let me tell you about the dark side. I also have a habit of trying to measure myself against other traders. Mistake! Competition can kill your trading account.
I am working on correcting this habit in my trading, but I also recognize that in other entrepreneurial activities this is an asset.The root of most patterns lies in one’s individual belief system. These are translated into your personal expectation of what you can and cannot achieve.
Confidence also plays into the equation. If you believe that you cannot trade the forex market you will turn to internalize all losing trades and find yourself unable to pull the trigger on the trade. You will allow entry point after entry point pass.
Your account will not reflect your true talent; you get frustrated and join the chorus of all those people preaching the risky nature of forex!
Let’s look at some specific steps you can take to create new trading patterns that will improve your overall currency trading experience.
1. Note Your Current Trading Patterns – Keep a detailed record in your trading journal to document your patterns, both good and bad. Your trading journal shoul dnot oly contain the technicals. but any environmental factors that could impact your trading.
2. Stop Blaming – Learn to take personal responsibility for actions, treat the negatives as a lessoned learned and move on! There is no such thing as failure only feedback!
3. Visualize Your Desired Pattern – Act as if you are the best forex trader in the world! I see myself being calm and cool when discussing trades with my fellow forex traders.
4. Watch the Words You Use. They Define You! – My list of Forbidden Words.
Try (I will Do or I will not do.)
Can’t (I even took it out of my spell check dictionary!!!)
But (It is an “And” world!)
Hope (I replace with “know”)
Problem (I replace with “Challenge’)
If (I replace with “when”)
Why (I replace with “what” or “how”)
5. Put Some Distance Between Yourself and from Your Old Habits – They say you are the sum of the 5 people closet to you. If you want to be a successful forex trader then start hanging out with successful forex traders. If you don’t know any, then create a local forex trading club.
This is why I am a champion of FX Trainer Financial Services Inc. forex education methodology. Their goal is to create that community of successful forex traders!
6. Take Supportive Action – The key word is to take action! My dog (I have a beautiful Vizsla) developed a jumping problem when he greeted people. To address this undesirable pattern I replaced it with another command – sit! Then I give him a treat.
Once I recognize a pattern, deploy a strategy to change the pattern and succeed I am sure to reward myself with a round of golf. That’s my liver treat!
Remember that awareness, personal responsibility and action will be the key to identifying and developing sound forex trading practices!
FX Trade Central has identified personal self-mastery has a key destination in your forex education roadmap.
For more information on forex education visit FXTC’s course listing.
Happy Trading!
Euro vs. Dollar: The Irony of It All
As you know I use Elliott Wave analysis for my swing trade setups. Here is an intersting article describing where Elliott Wave can aid you in your forex market evaluation.
Euro vs. Dollar: The Irony of It All Forex Focus Elliott Wave International
FXTC has more information on Elliot Wave and other forex education topics.
Happy Trading!
Euro vs. Dollar: The Irony of It All Forex Focus Elliott Wave International
FXTC has more information on Elliot Wave and other forex education topics.
Happy Trading!
Special Forex Education Reports
Special Forex Education Reports
I have just completed 2 special reports that are now available on my website. A lot of you readers seem to enjoy when I am ranting and raving about the global economy and how it relates to forex and trading.
Well I have taken those topics and created 2 FREE editorials.
Special Report #1: The Perfect Economic Storm
About the coming change to the global economy and steps we can take today to be prepared to not only survive, but to prosper!
Special Report #2: Forex and Your Retirement
Discusses why you should consider honing your forex education skills now and deploy FX trading to expand your portfolio well beyond your retirement date.
Just follow the link to FX Trade Central and sign up for ourand you will be included in the mailing for these revealing reports!
Happy Trading!
I have just completed 2 special reports that are now available on my website. A lot of you readers seem to enjoy when I am ranting and raving about the global economy and how it relates to forex and trading.
Well I have taken those topics and created 2 FREE editorials.
Special Report #1: The Perfect Economic Storm
About the coming change to the global economy and steps we can take today to be prepared to not only survive, but to prosper!
Special Report #2: Forex and Your Retirement
Discusses why you should consider honing your forex education skills now and deploy FX trading to expand your portfolio well beyond your retirement date.
Just follow the link to FX Trade Central and sign up for ourand you will be included in the mailing for these revealing reports!
Happy Trading!
Free Food Tomorrow
Let’s take a look at your trading self-esteem.
Next time this occurs, write down those negative thoughts in your forex trade journal. Currency trading (and any trading for that matter) is 90% mental and we should explore and embrace this side along with our pips and moving averages.
When we have a string of losing trades our trading self-esteem tends to take a real hit. The successful forex traders learn from their mistakes and move on.
Just look at a Hall of Fame baseball player. Most of the hitters in the baseball Hall of Fame are described as having a slightly greater than .300 batting average. That means that they are successful in getting a base hit 3 out of 10 times.
THAT’S A 30% SUCCESS RATE!!!
They failed to get on base 7 out of 10 times! Yet, they are considered the best in their profession.
They study the pitchers and evaluate every situation when they are at bat to maximize the probability for success.
When they succeed, they celebrate!
We as forex traders must learn to carry this same approach to our trading. We cannot treat our trading experiences like a sign hanging in the window of a restaurant saying “Free Food Tomorrow.”
When we come back the next day for our free meal the same sign is hanging in the window. Well, we will never receive that free meal. You will never feel satisfied.
You must learn self-satisfaction. You must become your own cheerleader. You must learn to celebrate your success, even if it is a losing trade! Take the positive aspects and expand them, because what we focus on expands!
Just like the baseball player we study the forex market, evaluate the trade and execute the trade with a belief of a successful outcome every time. Do we always succeed? No! But we know we can also be successful and profitable losing a high percentage of the time.
Trade and money management rules allow us to prosper.
The other day I was patently waiting for a trade set up with the USD/CAD. I waiting and the trade triggered. I had it planned and entered on the correct candle pattern, with the correct lot size and the correct stops.
Just before my plan said to tighten my stops the pair reversed and stopped me out at my predetermined exit.
I was happy! Why?
There is a big difference between a bad trade and a losing trade. I did everything correct according to my plan and the trade did not go my way.
I celebrated by giving myself a high five and began looking for the next trade. The law of averages will eventually work in my favor just like the baseball player.
Just like my freshman year in college when I was competing for a spot on the baseball team. I was really practicing well and had an assistant coach in my corner.
He convinced the manager to give me a chance in the next game. I got my chance and went 0 for 4 at the plate. I had a 0% success rate, but that did not tell the whole story. I hit 4 solid line drives that the other team caught for outs.
The next game I went 4 for 5 with 4 RBI’s because I had the belief that I was doing everything correct.
For those of you who are struggling to manage your losses try this.
Conduct a review of your trading journal and write on a 3X5 index card all those mistakes you have made in the past that you feel are creeping into your current trading decisions. Have this card next to you when evaluating your next trade.
I bet you that those mistakes and negative thoughts that are holding you back today will soon vanish and you will be trading in the correct frame of mind.
Embrace your mistakes and don’t beat yourself up! No more “I am not good enough to make money in forex” thinking.
Anything fully experienced will soon vanish!
Check out FX Trade Central for more exploration of trading psychology.
Happy Trading!
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