Forex Crunch 9 Tips To Separate from the 90% That Don’t Make Money in Forex |
- 9 Tips To Separate from the 90% That Don’t Make Money in Forex
- EUR/USD Sep. 16- Breaking to Higher Ground
- Powerful Yen Intervention, Aussie Tests and Goldman Move in the Mid-Week Video
- Forex Daily Outlook – September 16 2010
| 9 Tips To Separate from the 90% That Don’t Make Money in Forex Posted: 16 Sep 2010 02:38 AM PDT
There’s a general notion that 90% of forex traders lose money and only 10% are successful. With this low success rate, many try to differentiate themselves. Here are 9 tips that make the difference. The article was originally published on PivotFarm, a great site I recommend checking out. What separates the 10% that make money from the 90% that don't? In his recent book 'Outliers' Malcolm Gladwell describes the 10,000-Hour Rule, claiming that the key to success in any cognitively complex field is, to a large extent, a matter of practicing a specific task for a total of around 10,000 hours. 10,000 hours equates to around 4hrs a day for 10 years. For some reason most people that 'try their hand' at trading view it as a get rich quick scheme. That in a very short space of time, they will be able to turn $500 into $1 million! It is precisely this mindset that has resulted in the current economic mess, a bunch of 20-somethings being handed the red phone for financial weapons of mass destruction. The greatest traders understand that trading much like being a doctor, engineer or any other focused and technical endeavor requires time to develop and hone the skill set. Now you wouldn't see a doctor performing open heart surgery after 3 months on a surgery simulator. Why would trading as a technical undertaking require less time? Trading success, comes from screen time and experience, you have to put the hours in! 2. Education, education, education. The old cliché touted by politicians when they can't think of anything clever to say to their audience. The importance of education to success in trading cannot be placed on a high enough pedestal. You have to learn to earn, the best traders work obsessively to refine their edge further to stay ahead of the curve. 3. Think for yourself. "NO! NO! NO!"… "Bear Stearns is not in trouble"…"Don't move your money from Bear! That's just silly! Don't be silly!" A quote from well known stock guru Jim Cramer aired on CNBC days before Bear Stearns lost 90% of its value. Many followed this call and felt the obvious pain as a result. As the old saying goes, "too many cooks spoil the broth" it is very much the same in trading. Successful traders blinker themselves from the opinions of others; they focus on their own analysis of fundamental and technical information. 4. Adapt or Die. Market conditions change and technology advances, thus the conditions for trading are always evolving, the rise in mechanical trading is testament to that. The very best traders through a process of education and adaptation are constantly staying ahead of the curve and creating ever new and ingenious methods to profit from the markets evolution. 5. Fail to plan, you plan to fail. The best traders have a well documented plan; they know exactly what they are looking for and follow that plan to the letter. Their preparation for a trade starts long before the market open, it is this meticulous planning and importantly adherence to that plan that helps them avoid the biggest demons for any trader, over trading and revenge trading. 6. "Be like Machine" As human beings emotions pay a key role in our existence, for a trader emotions can be a source of great pain. Trading psychology and the management of your emotions in a trade play a key role in overall success. Fear and greed can cut your winners short and let your losers run. Dealing with emotions follows on from your plan; the more robust your plan the less likely you are to fall into the emotional mine field. 7. Know your tools Every trader has a set of tools they use, DOM, Charts, News feeds etc. These tools are a traders bread and butter; they are the most vital part of a traders arsenal, without which it would be impossible to trade. The best traders have mastered their order entry methodology, they know all about the features they need from their charts. This mastery of their tools, allows the trader to get the very best out of the resources they have available to them and ensures perfect execution of their trading ideas. 8. Know Thyself Behind all the egos and excess, the best traders know their limitations; they focus on what can go wrong in a trade, and expend a lot of energy in limiting and controlling their risk before thinking about profits. They have a heightened sense of self-awareness and focus on incremental self improvement. 9. Profit & Loss The best traders focus on the trade itself rather than the P&L; they view each trade as a technical exercise and focus on getting the most out of the market in accordance with their plan. They do not think in terms of the grocery payment, the electric bill and the desire to make X amount to cover a mortgage payment. Focusing on the money behind a trade can cloud technical objectivity. In Conclusion The greatest traders work hard to get ahead and even harder to stay ahead. Through increased and niche knowledge they constantly adapt with the market and remain profitable in every environment. Drive, tenacity and the will to succeed is the greatest edge of every successful trader. Harvesting profits from the financial markets – www.pivotfarm.com |
| EUR/USD Sep. 16- Breaking to Higher Ground Posted: 15 Sep 2010 11:51 PM PDT
EUR/USD broke to higher ground, rising above 1.3050. The busy US calendar promises that the action will continue. Here is a quick update on technicals, fundamentals, and community trends.
EUR/USD breaking above 1.3050. Click to enlarge. EUR/USD Technicals
EUR/USD Fundamentals All times are GMT. Most important events emphasized.
EUR/USD Sentiment
Want to see what other traders are doing in real accounts? Check out Currensee. It's free.. |
| Powerful Yen Intervention, Aussie Tests and Goldman Move in the Mid-Week Video Posted: 15 Sep 2010 04:08 PM PDT
On the weekly interview on Forex TV, I spoke with Julie Sinha about the aftermath of the massive yen intervention, the tests for the Aussie’s strength after reaching a two year high, Goldman Sachs’ effect on EUR/USD, the calendar and more. Enjoy:
Note also some technical levels of selected currency pairs, such as the Swissy. USD/CHF is now struggling with parity and this battle isn’t finished. The Swiss rate decision could go both ways – an intervention to weaken the Swissy or a rate hike on the Libor rate at the other end of the scale. Also note Friday’s busy calendar, also discussed in the video. Want to see what other traders are doing in real accounts? Check out Currensee. It's free.. |
| Forex Daily Outlook – September 16 2010 Posted: 15 Sep 2010 03:00 PM PDT
U.S. Unemployment Claims, U.S. Producer Price Index and U.S. TIC Long-Term Purchases make the headlines today. Here is an outlook on market moving events before the close of another trading week. In the US, Unemployment Claims dropped sharply last week to 451K. A rise to 463K is expected. Only a drop under 430K will be significant.
Later in the US, Producer Price Index shifts from negative to low positive figures signaling deflation trend. Following a rise of 0.2% in July, a small rise to 0.3% is expected now. Core PPI is likely to rise by 0.1%, weaker than last month's 0.3% rise. U.S. Current Account released quarterly, a duplicate of the monthly Trade Balance data, expected to increase deficit by 25B reaching 124B. More in Great Britain, CBI Industrial Order Expectations a leading indicator of economic health released monthly is forecasted further improvement to -12 points, 2 points less than in the previous month. As production anticipated to rise further we will see additional reductions. Later in Great Britain, External BOE MPC Member Adam Posen speaks at the Macroeconomic Advisers 20th Annual Policy Seminar, in Washington DC May affect interest rates and provide information regarding future monetary policy. Finally in Britain, Consumer Inflation Expectations leaped to 3.3% in the previous quarter a drop is expected now. Read more about the Pound in the GBP/USD forecast. In Switzerland, Swiss National Bank Interest Rate Announcement is likely maintaining its monetary policy leaving the low rate of 0.25%. More in Switzerland, Libor Rate measuring the London interest rate for 3-month Swiss franc deposits expected to maintain 0.25% interest rate as in the previous months. Finally in Switzerland, Industrial Production a leading indicator of economic health, released quarterly predicted to surge 3.3% following a sharp and unexpected 7.8% drop in the previous quarter. In Australia, MI Inflation Expectations reached 2.8% in July lower than in June. a rise is expected now. For more on the Aussie, read the AUD/USD forecast. In Japan, BOJ Governor Masaaki Shirakawa speaks at the Second Annual Fall Conference of the International Journal of Central Banking, in Tokyo May affect interest rates and provide information regarding future monetary policy. That’s it for today. Happy forex trading! Want to see what other traders are doing in real accounts? Check out Currensee. It's free. |
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