Archive for the ‘Day Trading’ Category
Personal Computer have changed the people life. And every person have a PC in their home in a normal family. And my opinion every one need a PC. But due the the huge amount of use of the energy due to the Computer in huge sector, the energy consumed is growing day by day. And there must be some solution to this problem. If the huge computer can be made to work in low power available then we can managed the energy saving and bring a revolution in the world.
After some research we found that green pc has been introduced by some people around the world and has been a great success. It has a saying that its energy costs reduced 60% of the current energy consumption. So a Low Power PC can be a great revolution for the people and countries.
Its not just about the power consumption, but they are also the cheapest found on market. If people are really concious about the energy and the money then, I suggest people surely should get a one. I have order a piece for myself, as every good things should be started from ownself.
Save energy, Save world – Go green.
Here was a question I was posed from an Inner Circle member, [1/15/2011 3:03:58 PM]xxx: My quick question is: How can I overcome from the perfecting phase to the performing phase? (I hope you know what i mean/think of) Thanks in advance, Tom. Cheers xxx from Denmark.
I figure if this person is struggling with this then others must be also. This and similar questions like this were answered in my Money Management E-book, but I am happy to answer the best I can for all to read and learn from.
Okay, so if I am reading this trader right and I think I am his question(problem) is that he is looking for the Perfect Trade the one that has zero chance for losses! He cant get himself to pull the trigger, or if he does pull the trigger self doubt overcomes him and he gets out before the s/l. The next trade he takes he may let run beyond the S/L, because the first was a winner after it challenged the s/l but was never executed. (However he got out before he should have.)
Lets pull apart the issue of:
Perfectionism: Definition in the English language.
per·fec·tion·ism
-noun
1. any of various doctrines holding that religious, moral, social, or political perfection is attainable.
2. a personal standard, attitude, or philosophy that demands perfection and rejects anything less.
Then The Medical Definition:
Medical Dictionary
per·fec·tion·ism definition
: a disposition to regard anything short of perfection as unacceptable
especially: the setting of unrealistically demanding goals accompanied by a disposition to regard failure to achieve them as unacceptable and a sign of personal worthlessness
This Medical Definition is the most useful definition for us as traders.
Perfectionism in trading is a form of procrastination. Procrastination in trading occurs because of the fear of being wrong, it is Ego based. This persons values being right(showing that they are smart) more then they value making money in the Forex Market. This will cause most to trade haphazardly. Taking one trade that sets up and disregarding another, then moving s/l (either up or down.) It just creates confusion, which produces non adaptive behavior. That will put you in the negative loss loop. Confusion===Errors===Losses!! Rinse and Repeat Confusion===Errors=== Losses.
Errors are not following your trading rules! Errors have nothing to do with losing Money we all do that, Trading without losses is like living only breathing in and never breathing out! Your main job as a trader is to Control The Losses. How Through Money Management.
Aldo always told me (and I think he pinched the line from someone)
*Professional Traders look for over all performance, Novice traders are always in search of Perfection*
When you are looking for perfection, you want to be right, you are not dealing with the market. You are trying to force the market to do what you want it do do. Huge mistake. There is a simple solution, make it okay not to be perfect. We are all far from it, some people more then others. Just ribbing you.)
Here are somethings that I learned all boiled down:
*You can never succeed at trading if all possible objections must be overcome first!*
AND
“*In trading with a plan, its better to be boldly decisive and risk being wrong than to agonize at length and be right too late…**
Lets look at the steps necessary to overcome this evil Ego Based issue.
- Realize trading is a game of probabilities, it is not a pure science. It is a bit like medicine part science part instinct. Just like medicine if you follow the frame work you will succeed over all.
- Trust your Money Management Plan, know that it will save you from ruin.
- Make it okay to lose, its part of the game!
- Have a high probability trading system in place(I taught him many these so that was all worked out, but obviously he doesn’t trust them, which is okay. He needs to come up with a mixture of mine and his own.)
- Test the systems using Entry And Exit formulas(again in my super ebook on Money Management. Hey a bit of self promotion doesn’t hurt.)
- Realize no trader or trade will ever be perfect
Pull The Trigger And Follow Your Rules.
So these are the steps needed to move away from the stuck state of Perfectionism. JUST DO IT!
Enjoy The Party…. Dance Near The Door!
PS Since he strives for perfection he will probably say this was not the answer he was looking for, and I misunderstood!
Also Please feel free to come on over to the blog and comment, if you have any tips of how you over came inner obstacles with trading,or you if you have inner issues that you want to discuss. Don’t be shy. We all enter the world naked!
Article source: http://ezinearticles.com/5741605
Do you currently set goals for successful day trading or in fact for any type of trading?
How is that working out for you?
It is all very well setting goals but you need to make sure that you have some parameters around how you set your goals, in order for them to work for you.
As a trader you will want to have a trading plan and also goals that will come from working that plan. These will include financial and education goals around your trading and it is also a good idea to put in your personal, fitness and relationship goals as these have a huge bearing on your success as a trader. The better you are holistically, the better trader you become.
Following is a proven model for successful goal setting:
- Concise – ensure that your goal statement is simple and easy for both your conscious and unconscious mind to understand and then act upon.
- Realistic – when a goal is relatively easy for you to accept and is not too much of a leap from where you are currently, the unconscious mind can work with that and start having you put things in order for this to become a reality. E.g. If you are currently losing money in the market, it could be too big a jump for your unconscious mind if your first financial target goal was to make $1 million in the next 6 weeks. It could be far more effective to set this at $10,000.
- Ecological – the execution of all goals needs to be safe to yourself and safe for others. This is just a step to ensure that what needs to happen does not include any possible harm coming to yourself, any other person, animal or the planet. I think you get the picture.
- As now – always have your goal stated as if you have already achieved it. Nothing is more powerful for your unconscious mind than to have every part of you feel that the achieving of this goal has already happened.
- Timed and toward what you want – attach a time frame to your goal statement. Think about a realistic time frame that you can expect to work with this goal and always make the statement towards what you want not away from what you don’t want. You will see in the following goal statement example how to best do this.
- End Step/Evidence – you will need to ask yourself ‘ What will I be doing when I have achieved this goal that will mean I KNOW that it has happened?’ What do you have to see, hear or feel in order to know? Again, see the example below to give you clarity on this.
So, get busy and C.R.E.A.T.E. your trading goals from the process above. Following are a couple of examples of how you can do this.
Financial goal
It is now 30 October 2011 and I am now sitting in my home office at my computer looking at my trading account that shows I now have a $50,000 balance.
Fitness/health goal
It is now 1 January 2012 and I am now standing on the scales looking down on my fit body that now weighs 55 kilos.
I hope the examples show you how easy and effective it is to create your trading goals using a proven process. There are many things that you can do to help make these goals even easier and faster to achieve.
Article source: http://ezinearticles.com/5733581
Have you ever put a trade on, it runs to a very acceptable paper profit and then… Well you know the rest, it turns tail on you, reverses and collapses down and runs into a small loss. Now, many traders have been there, he or she decides to stay with it as the analysis was clear it was going to up – right? Wrong, it continues to slide back and that small loss is now as big as the profit that could have been taken! Now, the trader goes into denial. Denial that it is actually a loss at all, the sub conscious mind rationalises and tells the trader it will come back so he or she holds on!
It keeps falling and the paper losses mount ever higher. Sooner or later the pain gets just too great and you close out for a substantial loss. By this time the hapless trader is blaming the market, the manipulators and everyone but him or herself. The final indignity is to watch the market recover from the level it was closed out to run all the way back up again!
Most traders have experienced that or something similar from time to time – but if the trader had a simple rule all that pain could have been avoided. And the simple rule. Always place a stop loss, always and do so at the time of opening the trade.
Twice in the past week, I worked with a couple of new traders who just had not grasped the importance of placing a stop loss order and then moving it up to protect paper profits from an actual loss. Before they had met me, both had taken eye watering losses, but both now know how to use this simple rule to stay out of trouble.
Traders money management is the subject of another presentation but the simple act of deciding on a level of maximum loss when a trade is taken takes the blind optimism that many new traders have. Successful traders know that a proportion of trades will be losers, they never know which ones, and so they are always prepared and setting a stop loss means they will never be wiped out.
Another trader I worked with had a similar problem, taking trades that were continually stopped out. We analysed those trades and found the majority of the positions showed a good profit before reversing and taking out the stop loss. We then decided on a rule for him, never let a profit become a loss. If a trade reversed from a profit, he closed out at his entry level and these small steps turned his account around from loss to profit with a few more simple rules…
Article source: http://ezinearticles.com/5714539
To be successful at day trading, you need to have the right day trading tools, choose the right markets, and have the right day trading systems. What’s more important than any of those however, is the right psychological and emotional outlook. Those little friends of yours that give you a nudge every now and then called fear and greed.
DAY TRADING PSYCHOLOGY:
Without the right day trading psychology, it’s almost inevitable that you’ll fail as a trader, and the reason I say that is because of a certain thing that controls all of our behavior; and that is emotions. Yes, although you might not like to admit it, and think that your decisions are “logical” or whatever, every decision you make is either to move away from pain or towards pleasure (or a combination of both). And although you might think that you can trade without emotional attachment, emotions WILL have a big impact on your trading, and may even prevent you from trading at all.
The two main emotions people experience when day trading are fear and greed, and while you will never be able to remove these emotions completely, you will need to manage and control them, understanding their purpose and how you can learn about yourself through day trading then you ever thought possible.
DAY TRADING FEAR:
Fear is the emotion that stops us from doing things that might be too risky. In most cases it stands for False Evidence that Appears Real, but in the case of day trading we’ve got to look at things differently. In the right quantity, fear is obviously an emotion that we need, it’s a basic survival instinct to allow us to act quickly and get out of situations that might harm us. But when fear becomes irrational or too great we can be prevented from doing things that might be necessary for us to achieve what we want to. This is called conflict of interest and is a challenge that many people face throughout their lives, not just in day trading.
In day trading, the main fear a trader has is that they are going to make a losing trade and lose money. This is a rational fear as no trader wants to lose money, but it is irrational if it prevents the trader from taking any trades in the first place. No trader, no matter who they are will be 100% right all of the time, it’s an impossibility due to the variety of factors and changes in the market and the world. Nothing is ever the same.
As an example of irrational day trading fear, a trader might make a losing trade, and then be too fearful to make the next trade, which of course turns out to be a winning trade, and would have covered the previous loss. By letting the fear take control, the trader now has a net loss, even though the next trade was winning. Of course this isn’t going to be the case every time, but it illustrates the uncertainty that traders face and have to learn how to deal with.
Day trading Fear can be overcome by a set of rules, education, mentoring and practice. This is the exact reason why we have structured our emini day trading course the way we have.
DAY TRADING GREED:
Greed is the opposite emotion to fear. It’s the emotion that makes us do things we would not normally do because we want more. Wanting more is not a bad thing because you need to be able to motivate yourself, however there is a line between greed and motivation that some people don’t see.
When we are being greedy we start doing things when we know that we shouldn’t. In day trading, greed can make traders take random trades, or hold on to positions longer than their trading system dictates.
For example, if a trader is watching a market moving strongly upwards, the trader might be tempted to make a trade even though their trading system says not to. They have allowed the greed to take control, and more often than not in this scenario, they will be buying right at the end of the move and will then consequently have a losing trade. Likewise, they can also stay in a trade too long and instead of exiting the market, they stay in and all the profit they have made is lost as the market turns.
The emotion of greed can also be overcome with education, mentoring and practice by testing and then trusting in your trading system, and knowing that if you follow it correctly, it will make a profit without taking every potential trade.
As the saying goes: Trade smart, not often.
Article source: http://ezinearticles.com/5710578
To be a successful trader you must know when a trend is starting, the strength of the trend, and when the trend is ending. Knowing these trend events is crucial since a trend is the fundamental market mode for most profitable trading methods. Having access to this trend information when it is timely and accurate can dramatically increase your trading profits.
One of the most commonly used yet outdated tools to identify trends is the ADX indicator. The ADX line rises to show the strength of a trend. The most accurate means of using the ADX is to only pay attention to a rising ADX line, since that is when the trend strength is the strongest. Most ADX Indicators have a threshold level line somewhere around twenty or twenty-five. When the ADX is above that threshold you have a trending market and when it is below that threshold it is not trending. It’s important to know these details about a trend, unfortunately, the ADX is too “hit and miss” at delivering this important trend information.
A huge problem with the ADX Indicator is the long “lag” recovery time that occurs after a strong up move. Just look at a chart with a quick strong uptrend followed by an immediate quick strong down move. You will see that the ADX Indicator completely misses the second down trend movement since the ADX line is still in a recovery phase. Another ADX deficiency is that it gives no information about the direction of the trend. I know you can use other indicators like the DMI+ and DMI- to get the direction of a trend, but I want each and every indicator on my chart to provide the most amount of accurate and timely information as possible. So why not use a trading indicator that does a lot more than the old outdated ADX Indicator can?
The Price Action Indicator is the perfect ADX Indicator replacement for the following reasons:
- First, it accurately answers when a trend is starting, the strength of the trend, and when a trend is ending.
- Second, it gives this information without “lag”. Getting these signals in a timely manner translates to more profitable trading.
- Third, it tells the direction of the trend without the need for other indicators like the DMI+ and DMI-.
- Fourth, it can be placed right on your price bars to see the inter-relationship between the price bars and the Price Action Indicator.
The Price Action Indicator simply and clearly displays all of this trend information. It shows the start of the trend by changing both the color and direction of the price action line. It displays the strength of the trend by increasing the thickness of the price action line. It does all this without the “lag” inherent in the ADX Indicator. Finally, it can be placed directly on the price bars to see the trend’s relationship to the price bars, making this a vastly superior tool over the ADX. The Price Action Indicator replaces the ADX, DMI+, DMI- and most moving averages.
As fantastic as the TradeStation Price Action Indicator is, the price action line that we have covered above is just one line taken from our Multiple Time Frame Price Action Indicator which is made up of 8 different time frames price action lines. The MTF Price Action Indicator provides the greatest trading “edge”.
Article source: http://ezinearticles.com/5687128
Many people use to think that to be a successful trader you must have a big money to invest. My answer to that is No. to be a successful trader is more than having a big money to invest, even if you invest big money without knowing how the system works, you will lose all the money in a trade.
So, my question is how can you trade successfully? What are the tools that you need in order to succeed in forex trading? Now follow me carefully.
1. Your mindset: your thinking ability is very important; you cannot achieve what you have not already achieved in your mind. The battle to be success in whatever you do begins from the mind. So many people are defeated already in their mind before setting out to do something. If you’re defeated in your mind already before going out to do something, there is no way you can succeed in that thing. Your mindset is a key to your success in life; not only in forex trading or any other e-currency market, but in everything you do in life. So I want you to have the right mindset and believe you can do it. Believe you make it big in forex trading and be positive about it when you are doing it. Even if you lose money, be positive because to be a winner you must experience failure.
2. See forex trading as a Simple Market: people fail right away from far believing that forex trading is complex. The way you see things that’s the way you will approach it. So if you see forex as something simple to do, you have won the first battle and if you set out to trade it, you will trade it successfully. Please work on your mind and be mentally strong before you trade at all. Forex is emotional and it will test your knowledge, emotion and everything that has to do with your body.
3. Know when to buy and when to sell. In forex market, right position is very essential. If you know the right time to buy and the right time to sell then you will make profit non stop in your account. You should know that when the currency you are trading is strong, then you should put yourself in buying position but if the currency is weak you should sell that currency.
Article source: http://ezinearticles.com/5707106
This article will help you know some questions you can ask your potential broker you know if it’s a good one or not.
You need to ask some good questions from a broker in order to know if it’s a good broker or not. Look, to choose a good broker is a serious work because broker will determine if you are going to succeed or fail in your trading career. Here are some questions to ask.
• What is your Leverage? You need to ask about the leverage of that broker because this will determine how much you will make with that broker. Your success is based on how good the leverage is. A good broker must be able to offer a good leverage if the leverage is small that means investors can make good profit from such broker.
• What is the spread? Spread is what investors should look out for before investing with a broker. A good broker should tell you the spread and it is calculated in pips. Investors should know that the lower the spread of a broker the more money you can make. Because brokers are also in business to make money so they make their money through spread.
• Do you give out educational material? So many brokers update their investors on their site and give them good information or articles that can help them in their trading account. Investors should try to get a broker that will provide a training material to help and develop their investors. Some good site offer real-time charts and website support or you can subscribe for their news letter.
• Do you have Credentials? Most brokers online are connected to a banks for financial support. Brokers that are connected to banks for financial assistance are good brokers and they must have credentials before any banks can approved them. They must also register with futures commission merchant (FCM) and commodity futures trading commission.
Article source: http://ezinearticles.com/5706978
If you are a day trader that has been losing money then it is time that you learn what you need to do to fix this problem. Losing money is the worth thing in the world and being a day trader it is bound to happen, but you don’t want this to be a daily occurrence. When it comes to trading there are some things that you can do in order to stop your losing streak and make more money than ever before.
What to do when losing money
Analyze your trades – The first thing you need to do when you are losing money as a day trader is to analyze your trades. The reason you need to analyze your trades is because there must be something that you are missing when making the trade in the first place. If you are constantly making poor decisions then it might just mean you aren’t reading into each stock the way you should.
Diversify your daily picks – Something newer day traders don’t do is diversify their daily picks, they just diversify their long term trades. This is where you might be making a mistake. Although you can earn a lot of money by putting all your cash into one stock it is very risky and that could be where you are losing money. Always stay diversified on a daily basis or you will run the risk of losing all your money.
Stay focused – Something many people forget is that staying focused is the key to making any money in the stock market. If you are a day trader you don’t have time to goof off, you need to stay focused every second that the market is open in case it is time to buy or sell.
Don’t lose confidence – The last reason why you might be losing money is because you are probably losing confidence with your strategy and your trades. Never lose confidence because you will end up broke. The reason you want to stay confident is because the second you start to doubt yourself you will make rushed decisions of even try a new strategy without the proper testing.
The biggest thing about day trading is that you have developed a strategy and you are sticking with it. Most beginners in the day trading market don’t spend enough time perfecting their trading strategy and that is why they lose money. If you need help with your trading strategy then click here and get some free stock trading training.
Article source: http://ezinearticles.com/5724084
Web access on mobile phones has been available for quite some time, but its access was quite limited (remember the days when there was WAP). Some traders would attempt browsing through mobile-friendly websites to get a quote, but things were very much limited to that (email, on the other hand is relatively recent but that’s a separate story).
The launch of the iPhone in 2007 was a major breakthrough together with Wifi being available very much everywhere. The ability to develop and install custom applications meant that people started downloading all sorts of apps on their phones through the App Store.
And the major forex brokers certainly didn’t miss the opportunity to jump on the bandwagon. All the major guys such as eToro, FXCM, ForexYard, etc started developing their applications.
Most of these apps had the functionality to pull up interactive charts, retrieve live quotes and even trade…all great-sounding capabilities…
Well, bear in mind they also have limitations. Yes, they have technical limitations but I’m not referring to those.
Its greatest advantage is very much its greatest disadvantage too: the fact that they are ubiquitous. This means that, especially if you are following automated forex trading systems, you can easily get addicted. Many would be following every tick on the chart non-stop. This may lead to getting too emotionally-involved with whatever automated forex trading method you are using. And as we know, emotions are one of the greatest enemies of profitable trading. Sometimes it’s good to completely disconnect, focus on different topics and them look back at the positions with a fresh pair of eyes.
If your automated forex trading requires you to be connected on the go then try limiting its usage. For example, avoid opening new positions when not in front of your computer. The research functionalities on the mobile device are limited anyway, which increases the chances of you making a bad decision. Just use it to close out positions for example.
Automated forex trading systems rely more and more on mobile connectivity of the traders. Whilst this may sound a good thing, remember this will most likely increase your emotional involvement with he positions. Be very wary of this, especially if you are a relatively inexperienced trader.
Article source: http://ezinearticles.com/5721345