Books and experts say 95% of traders fail or maybe lower but whether the statistic is true or not still it is a fact that most traders suffer years of constant struggle in the market, trying every strategy available, tweaking your system here and there but the end result is that you are still losing money and it become a cycle, why?
Based on my own experience all this things happen in a trader's life because of the inability of that particular trader to consistently follow or implement his strategy and risk management in a consistent basis. Traders try to do some stupid things somewhere along the way and will lead them to more losing trades that can drive them to become indiscipline, psychologist called it self-sabotage. Of course a good trading strategy is also part of becoming a profitable trader but if you cannot follow its trading rule in a consistent basis all efforts will be in vain, whether you have a bad strategy if you follow proper risk management approach you wont get your account wiped out.
Trading needs discipline all the time that by just one mistake it can turn your trading upside down, in order to have better chance of success in trading we need to think logically all the time, we are emotional by nature but we have to suppress emotions during trading and emphasize in our sub-conscious mind that the only way to succeed as a trader is to have the right mindset and be logical in making decisions all the time otherwise we will be just part of the majority of traders that keeps on losing money through years of trading. Aspire to be psychologically prepared first before you attempt to try any trading strategy in real market. Emotional and technical preparedness is a must in order to achieve your goal in becoming a successful online trader.
It easier to say be a discipline trader all the time than doing it, in reality it is very hard to be a discipline trader and follow a certain methodology once you engage the live market, once the price start to swing up and down in front of your naked eyes your brain start to react differently that can most of the time lead to actions that you don't intend to do or do things not according to your trading plan or strategy, the real challenge to every trader is to suppress or control emotions during actual trading and act based on your chosen strategy not on your own discretion.The process of becoming a discipline trader may take months or years but we have to persevere in order to achieve our ultimate goal to become a financially independent individual.
Saturday, November 19, 2016
Monday, November 14, 2016
Do's and Dont's In Trading!
Trading is all about being discipline in following your specific strategy, that one wrong move can bring disaster to your trading account, so I would like to point some do's and don'ts when you are into trading so that you can avoid the bad habits and implement the proper approach. All in the list are very vital to a trader's success and must be fully embed in your sub-conscious mind.
Do's:
1. Be discipline in following your strategy all the time
2. Always follow proper or appropriate risk management in your trading
3. Trust your system all the time
4. Let the market come to you
5. Be logical in making trading decision all the time
6. You must submit that market is always right
7. Stick to the rule all the time
8. Always trade on what you see not on what you think
9. Learn to accept loses, its part of trading
Don'ts:
1.Never ever adjust or remove your stop loss price
2.Never shift or used to an untested strategy
3.Never chase the market, there are always good trade setup to come
4.Never allow emotions to interfere in your actions
5.Never ever think that you can control or beat the market
6.Never force your entry,always wait for high probability trade setup
7.Never glued your eyes monitoring your trading chart
Having a good and battle tested strategy is important to succeed in trading but without discipline in implementing its trading rule all the time everything will still fail. Online trading is a 24 hour business but it does not mean that we have to trade the market all the time.
Happy Trading!
Do's:
1. Be discipline in following your strategy all the time
2. Always follow proper or appropriate risk management in your trading
3. Trust your system all the time
4. Let the market come to you
5. Be logical in making trading decision all the time
6. You must submit that market is always right
7. Stick to the rule all the time
8. Always trade on what you see not on what you think
9. Learn to accept loses, its part of trading
Don'ts:
1.Never ever adjust or remove your stop loss price
2.Never shift or used to an untested strategy
3.Never chase the market, there are always good trade setup to come
4.Never allow emotions to interfere in your actions
5.Never ever think that you can control or beat the market
6.Never force your entry,always wait for high probability trade setup
7.Never glued your eyes monitoring your trading chart
Having a good and battle tested strategy is important to succeed in trading but without discipline in implementing its trading rule all the time everything will still fail. Online trading is a 24 hour business but it does not mean that we have to trade the market all the time.
Happy Trading!
Saturday, October 29, 2016
The most important part of trading!
Online trading is one of the most unique way to make money online and if you can gained the right knowledge and develop the character that successful traders have then your own your way of amassing wealth in this business, but on the negative side trading is also the hardest profession on earth because statistic shows that the ratio between winners and losers is very bad, in fact some say 95% of traders fail in this business, whatever the real figure is the fact remains that trading is indeed a very tough nut to crack.
So, what is really the reason why majority of traders fails in trading? this is a very important question that a trader must ask and answer before he continue his trading activities otherwise he or she will just end up in a cycle of losing money. We all know that successful traders needs 3 components in order to succeed,these are a good trading strategy, implementation of risk management then handling well of our psychology. Of the three mentioned it is important to note the degree and order of which component you will give importance first in the learning phase of your journey as a trader because if you mess up with the order you will end up in the losing bracket in this industry and that is particularly is happening to majority of traders.
I read e-books, watch and listen different seminars and talks from trading gurus and experts perhaps a hundred times or even a thousand times, yet I still struggle to achieve the profits that I dreamed about 8 years ago, I may not be a bad trader now compare a few years back but I also know that it will still take time before I can consider myself a professional trader, but for sure I will achieve my goal soon.
Looking back from all of my experiences in this business that most reason why I failed in my trading is because of "BAD PSYCHOLOGY", it is not about risk management and trading strategy that cause a traders to fail but majority of traders never realize it or perhaps realize it but ignores it, in fact I analyzed all my wiped out account before it is not really caused by a bad trading strategy or poor risk management, a trader cannot implement a good strategy and risk management if he has bad psychology so before a trader think about what strategy to use or what risk he will use in his trading, it is better if he gives emphasis first in learning the psychology of the market so that he wont suffer the same fate with the majority of traders. Knowing the importance of how our mind reacts to different market conditions and the degree it brings to our trading every time we commit trading mistakes is a vital point in once trading. Learning the psychological aspect in trading should be given much emphasis in traders education first before learning other stuff. In fact if I draw a relevance figure of the 3 components in trading I would enclosed trading strategy and risk management inside psychology.
So, what is really the reason why majority of traders fails in trading? this is a very important question that a trader must ask and answer before he continue his trading activities otherwise he or she will just end up in a cycle of losing money. We all know that successful traders needs 3 components in order to succeed,these are a good trading strategy, implementation of risk management then handling well of our psychology. Of the three mentioned it is important to note the degree and order of which component you will give importance first in the learning phase of your journey as a trader because if you mess up with the order you will end up in the losing bracket in this industry and that is particularly is happening to majority of traders.
I read e-books, watch and listen different seminars and talks from trading gurus and experts perhaps a hundred times or even a thousand times, yet I still struggle to achieve the profits that I dreamed about 8 years ago, I may not be a bad trader now compare a few years back but I also know that it will still take time before I can consider myself a professional trader, but for sure I will achieve my goal soon.
Looking back from all of my experiences in this business that most reason why I failed in my trading is because of "BAD PSYCHOLOGY", it is not about risk management and trading strategy that cause a traders to fail but majority of traders never realize it or perhaps realize it but ignores it, in fact I analyzed all my wiped out account before it is not really caused by a bad trading strategy or poor risk management, a trader cannot implement a good strategy and risk management if he has bad psychology so before a trader think about what strategy to use or what risk he will use in his trading, it is better if he gives emphasis first in learning the psychology of the market so that he wont suffer the same fate with the majority of traders. Knowing the importance of how our mind reacts to different market conditions and the degree it brings to our trading every time we commit trading mistakes is a vital point in once trading. Learning the psychological aspect in trading should be given much emphasis in traders education first before learning other stuff. In fact if I draw a relevance figure of the 3 components in trading I would enclosed trading strategy and risk management inside psychology.
Different ways to profit in online trading!
Nowadays there are different ways to profit in the market, when online trading just introduced in the market way back in the 90's, their is only one way to make money in it which is to learn how to trade in a profitable manner in a consistent basis, but the problem in this setup is that becoming a profitable trader is just a pain in the ass and may take years of constant practice before you can fully understand the in and out of the market.
Most traders shy away in trading after a few months of losing money in a constant basis, so brokerage firm try to innovate the market by introducing PAMM account or copy trade program so that traders has the chance of making money right away without really going into a lot of practice and learning, all you have to do is just to chose and pick a profitable trader and copy his trade in your account so that you can also profit from his strategy.
Another way to make money in the market is to use a trading robot or EA(expert adviser), instead of learning how to trade manually aspiring traders can just chose and purchase a trading robot and run it 24/5 in his PC or in a VPS(virtual private server), creating a trading robot is also one way of automating your current manual strategy so that you wont have to spent hours of monitoring your trading chart looking for trade opportunities.
Whether a trader uses manual strategy, copy trade or use a trading robot it is important that he/she must test a particular strategy before using it in live account to avoid excessive lose of money.
Most traders shy away in trading after a few months of losing money in a constant basis, so brokerage firm try to innovate the market by introducing PAMM account or copy trade program so that traders has the chance of making money right away without really going into a lot of practice and learning, all you have to do is just to chose and pick a profitable trader and copy his trade in your account so that you can also profit from his strategy.
Another way to make money in the market is to use a trading robot or EA(expert adviser), instead of learning how to trade manually aspiring traders can just chose and purchase a trading robot and run it 24/5 in his PC or in a VPS(virtual private server), creating a trading robot is also one way of automating your current manual strategy so that you wont have to spent hours of monitoring your trading chart looking for trade opportunities.
Whether a trader uses manual strategy, copy trade or use a trading robot it is important that he/she must test a particular strategy before using it in live account to avoid excessive lose of money.
Subscribe to:
Posts (Atom)