Forex Articles - HYIPs Talk

d4tacom · #1 (**permalink**) 05-01-2007, 06:52 PM

Some Of Forex Articles
I Hope Its Usefull & Hellpfull For Your Trading

Regards

d4tacom · #2 (**permalink**) 05-01-2007, 06:55 PM

Market Mind Games

The adage goes

"If Doctors and Attorneys are so smart, why are they still practicing their professions?"
Well, it is a fact that to be good you must always keep honing your skills. The persistent practitioner becomes the consistent performer.
When I was a kid, I would dash around in my eagerness to grow and learn new things. My dad would always caution me,
"Don't rush it. Take your time and do it right the first time. You can always make the time to go back and do something a second or third time if it's important, but it's a lot easier just to do it right the first time."
Truer words were never spoken and in trading there is far too many folks starting over or giving up altogether.

d4tacom · #3 (**permalink**) 05-01-2007, 06:55 PM

Hardwired to Mess upAll your life you have been conditioned to be tough and strive to win. That will work for you in life but it will fail you in the market. Being tough, optimistic and hanging in there when a trade is going against you is not a good thing. And being right is not the measure of a good trader. A good trader is ambidextrous. Upside and downside moves are seen as equal opportunity. A good trader appears fickle and almost too willing and eager to leave trade that is not going as planned. A good trader never loses. A good trader sees the small amount of money associated with being stopped out as a cost not a loss. The good trader sees that cost as the price to find out if a potentially big move would happen. A good trader knows when a stock / index has reached a Pivot Point and sets up entry and exit points that make sense. A good trader knows that with proper reward risk ratio, more than 1/2 of the trades can go off base and profits can still be made.

d4tacom · #4 (**permalink**) 05-01-2007, 06:56 PM

Contrary to popular wisdom, being successful in the market has little or nothing to do with winning. In fact trading, which is often compared to warfare and battle, is not about winning and losing at all. If it rains on your picnic did you lose? Hey it looked like a nice day. Was it your fault that a sudden storm showed up and your picnic was washed out? Since you can have nothing to do with the direction of a stock or the market, how can you win or lose? The market is going to do what it is going to do whether you play or not, all you can do is to act and react so as not to get run over. If you have taken a position and it moves against you, it is not your fault unless you did not anticipate that possibility and have an exit strategy in place. Well it may not be your fault but is still your problem.

d4tacom · #5 (**permalink**) 05-01-2007, 06:56 PM

Ok, so if you can't dictate the outcome, then your odds are 50/50 every day that you are in the market. 50/50 you say??? Yes 50 / 50. Time and time again the market moves the opposite way that was expected. News stories can reverse the direction of a stock or market and the market often reacts the opposite way the news might suggest.

d4tacom · #6 (**permalink**) 05-01-2007, 06:56 PM

Trading must involve a comprehensive plan for a move in any direction.
My Bracket Trading™ process is the vehicle for properly setting up the trade. It keeps you Calm, Confident, Consistent and Profitable. This is done by taking a tactical approach to the trading. You identify all the relevant price levels and targets along with the pivot points. Knowing how to do this correctly will identify the right expectation of a trade, the cost if it turns against you and the reward if it moves in your favor. It lays out the instructions for every "IF - Then" scenario that might happen and sets the follow though and execution. A broker, either live or online is charged with the job of follow through so you don not have to stare at the monitor all day. It is truly liberating and removes your opinion and ego from the trade. As a bonus, bracket trading creates a perfect journal record of you thought process as well as the trade. Bracket Trading removes the burden of being right or wrong in a trade by keeping your opinion and ego out of the process. It's about doing what was appropriate not being right or wrong.

d4tacom · #7 (**permalink**) 05-01-2007, 06:57 PM

BlendingIn the market, blending is the magic bullet not attacking. Blending requires balance and perspective. A trader must be able to set criteria and act on it like merging onto the freeway. When the time is right you go and you don't stop and don't back up. The destination is clearly targeted and so is the exit ramp if something goes wrong.

d4tacom · #8 (**permalink**) 05-01-2007, 06:57 PM

Maxim's to Live By
You are not in the game, you are in the bleachers. All you can do is enter and exit.If the market goes with you, all you can do is try to go with it and jump off quick if turns against you.

d4tacom · #9 (**permalink**) 05-01-2007, 06:59 PM

Defense Wins

Why do people trade? For most, their primary motivation is to make money. Sure, there are secondary reasons however they all stem from the undeniable urge to make money.

Ironically, this would have to be the main reason why people fail. With most of our trading decisions, it is only natural that we focus on making money because this is the main reason we consider trading in the first place.

Whilst I concede the idea of making money is important, it is not as important as protecting the money that you have to trade with. I think Paul Tudor Jones says it best when he said, “Don’t focus on making money, focus on protecting what you have.”
Stephen Waugh is a former Australian cricketer and was the captain of the Australian Test Cricket Team from 1999 to 2004. He is credited with a quote that can be applied to trading. He said the best advice he was ever given about batting was to “Not get out!” That was it … in other words, how can you score runs if you have been dismissed. So whilst making runs is very important, there was something more important – protecting his wicket. If he protected his wicket, he was going to make runs.

So whilst most of us will admit to ourselves that our primary aim is to make money - yes, it is important, it is not as important as looking after the money you have to trade with.

d4tacom · #10 (**permalink**) 05-01-2007, 06:59 PM

No more money - no more trading! Simple ...
This is hard to do because when we start trading, all we can think about is all of the money we are going to make. Eventually reality sets in and we realise that trading successfully may be a little more difficult than we first realised.
How can we change our mindset and approach trading from a different angle to ensure we do everything we can to protect our capital. How can we become more defensive minded and conservative with regards to our capital? Let’s think of this from a sporting perspective.