Fundamental analysis is a method to interpret the news and events, both economic and political, which is expected to have an impact on currency movements associated countries. For example, the U.S. unemployment report the adverse effect on the strength of the USD, or a political feud between America and China, could affect the currency of countries that are commodity based, such as the AUD and CAD, because dikhawartirkan this feud will affect China's imports from Australia, Canada, and forth.
The analyst would predict links from news stories with each other, eg declining industrial production data, but consumer demand is still high, it can predict there will be price increases. Or another example, meingkatnya unemployment will trigger a decline in private consumption, this will affect the rotation slowing economy, the central bank will lower interest rates for the population more quickly turn their money and open up new ventures.
The advantages of fundamental analysis is that we know the long term trends, such as the end of 2009 UK GDP was released bad, still shows a slow economy, in the next few weeks look GBP continues to weaken because investors feel pessimistic about the UK economy, need something new to convince them that Britain's fine. So, by fundamental analysis, we can assess how the economy of a country, when compared with other economies, which is more powerful? Let's say middle America better than England, then the GBP / USD trend was likely to fall.
Of course, all methods must have a flaw. Fundamental analysis is prediction, and therefore no subjective element. How do analysts predict the numbers that appear to be influenced by the person of the analyst himself, eg in the U.S. unemployment data are released is an analyst with American, they will tend to put great expectations for his country. This is called 'bias'. In addition, the reaction of each person against the emergence of the actual numbers will be different, take the example trader A will assume rising house prices as a harbinger of faster rate of economic turnover, on the other side trader B, may think this is a symptom of inflation
Showing posts with label Forex Story. Show all posts
Showing posts with label Forex Story. Show all posts
Sunday, December 26, 2010
Trading Psychology
DO NOT ignore this. Seriously! The defeat is in sight if you carelessly in trading ... .. There are several key factor in successful trading: PERSONAL TRADER
There are 6 of psychology that affect the individual in the deal:
It is interesting that many people love to put their savings and funds in the hands of others, accept the losses as easily blame others rather than be responsible for their own funds.
1. Take responsibility of your capital (though only 5 USD capital that you receive for free). The first step as an individual is to believe in yourself and your own abilities. One of the most startling discoveries when you start trading or have a stock market observation of how the experts very often make mistakes.
This is a real advocate of the belief that when you begin to understand that with a solid background and knowledge, discipline and determination that good trading plan will make you perform professional acts. You will be in a market that moves several times faster than other markets and with leverage, appreciation and loss mixed repeatedly. The best way to overcome the thought of using your own money and volume of transactions you will make is to forget about money and talk in terms of points.
So instead of counting your gains and losses in the factors of dollars, talk in terms of points of gains and losses. If you take this at a very early, it will feel the same if you trade a demo. When trading a demo account, most people do very well. They trade without fear. But when they deal with real money, even just a mini account, they suddenly find themselves dealing with the attitude in which they lost a lot of opportunities and collect a lot of losses. They easily lose their courage and enter into the fear and greed. This can happen also when you go from a mini account to a full account of the contract or its own trade to trade multiple contracts. Try and trade without any thought of how much money you may be profit or loss. Trade thinking right, no matter how many contracts you are trading, or even if you are trading a demo account.
2. Cut your losses quickly and let your profits run. This simple concept is one of the hardest concepts to be implemented and this led to the death for most traders. Most traders violate their predetermined plan and take advantage of them before reaching their profit target because they feel uncomfortable sitting in a favorable position. These same people will easily sit on losing positions, allowing the market to move against them for hundreds of points in the hope that the market will come back. In addition, merchants that they stop orders have been exposed many times only to see the market return at their will, once they come out, they quickly move the stop from their trade with the belief that this will always be the case. Stop command is held to be subject to, and to stop you from losses exceed the amount specified in advance! The mistaken belief is that each transaction should be profitable.
If you have a profit 3 out of 6 transactions then you have to do well. How do you make money with only half of your trades being winners? You simply allow your profits on the winners to run and make sure that your losses are minimal. Another good strategy is to move the stop loss (points at which the transaction will be sold if it goes the wrong way) behind the trade to a level where a recall can be accommodated but a reversal will be locked at least gain a slight advantage.
3. Discipline Trade with a disciplined planning. The problem with many traders is that they take shopping more seriously than trading. The average shopper would not spend $ 400 without serious research and examination of products that would be purchased, as well as the average trader would make a trade with ease burden him $ 400 based on less than "feelings" or "alleged". Make sure that you have a plan before you start trading. The plan must include stop and limit levels for the transaction, the same as your analysis should include the underside of the expected well above the expected side.
4. Never Too much information, like many other endeavors, it is important to keep your trading simple. Many traders start with a simple and successful strategy, but find themselves trying to cut and change to find a better system. They also allow themselves to be influenced by other opinions and too many fundamentals. Stock market trading is usually similar in this regard. Good training is to teach a child or adolescent is a simple trading strategy or design rules to follow and allow them to trade a demo account. Many traders who have done this have been surprised that their children can enter into transactions with good, consistent, and often with spectacular results.
The lesson is that they do not deviate from the rules that exist and are not affected by the media or fundamentals. Many traders do not pay attention to fundamentals at all and succeed in the deal. The rule here is to keep it simple, do not allow yourself to become confused with too much information and if you're unsure or are not in a good emotion in the mind, do not trade.
5. Do not marry your trades. The reason trading with a plan is very important because most objective analysis is done before the trade is executed. Once a trader is in a position, they tend to analyze the different markets in the "hope" that the market will move in the desired direction rather than an objective vision of the changing factors that may be turned against your original analysis. This is particularly an actual loss.
With a losing position tend to marry their position, which causes them to ignore the fact that all signs point towards continued losses. Do not trade, even more so with the expectation that the market will turn in your favor. This will only accelerate your losses.
6. Do not bet on this field. Do not overdo the transaction. One of the most common mistakes that traders make is leveraging their account too high by trading much larger sizes than they ought to balance their trade wisely. Leverage is a double-edged sword. Just because one lot (100,000 units) of currency only requires $ 1000 as a minimum margin deposit, it does not mean that if a trader with $ 5,000 in the account should be able to trade 5 lots. One lot is $ 100,000 and should be treated as a $ 100,000 investment and not put $ 1000 as a limitation.
Most traders analyze the charts correctly and place sensible trades, yet they tend to over leverage themselves. As konskuensinya, they are often forced to exit a position at the wrong time. The best rule is to trade with 1-10 leverage or never use your balance more than 5 at any given time. Trading currencies is not easy. (If easy, everyone would be a millionaire!)
There are 6 of psychology that affect the individual in the deal:
It is interesting that many people love to put their savings and funds in the hands of others, accept the losses as easily blame others rather than be responsible for their own funds.
1. Take responsibility of your capital (though only 5 USD capital that you receive for free). The first step as an individual is to believe in yourself and your own abilities. One of the most startling discoveries when you start trading or have a stock market observation of how the experts very often make mistakes.
This is a real advocate of the belief that when you begin to understand that with a solid background and knowledge, discipline and determination that good trading plan will make you perform professional acts. You will be in a market that moves several times faster than other markets and with leverage, appreciation and loss mixed repeatedly. The best way to overcome the thought of using your own money and volume of transactions you will make is to forget about money and talk in terms of points.
So instead of counting your gains and losses in the factors of dollars, talk in terms of points of gains and losses. If you take this at a very early, it will feel the same if you trade a demo. When trading a demo account, most people do very well. They trade without fear. But when they deal with real money, even just a mini account, they suddenly find themselves dealing with the attitude in which they lost a lot of opportunities and collect a lot of losses. They easily lose their courage and enter into the fear and greed. This can happen also when you go from a mini account to a full account of the contract or its own trade to trade multiple contracts. Try and trade without any thought of how much money you may be profit or loss. Trade thinking right, no matter how many contracts you are trading, or even if you are trading a demo account.
2. Cut your losses quickly and let your profits run. This simple concept is one of the hardest concepts to be implemented and this led to the death for most traders. Most traders violate their predetermined plan and take advantage of them before reaching their profit target because they feel uncomfortable sitting in a favorable position. These same people will easily sit on losing positions, allowing the market to move against them for hundreds of points in the hope that the market will come back. In addition, merchants that they stop orders have been exposed many times only to see the market return at their will, once they come out, they quickly move the stop from their trade with the belief that this will always be the case. Stop command is held to be subject to, and to stop you from losses exceed the amount specified in advance! The mistaken belief is that each transaction should be profitable.
If you have a profit 3 out of 6 transactions then you have to do well. How do you make money with only half of your trades being winners? You simply allow your profits on the winners to run and make sure that your losses are minimal. Another good strategy is to move the stop loss (points at which the transaction will be sold if it goes the wrong way) behind the trade to a level where a recall can be accommodated but a reversal will be locked at least gain a slight advantage.
3. Discipline Trade with a disciplined planning. The problem with many traders is that they take shopping more seriously than trading. The average shopper would not spend $ 400 without serious research and examination of products that would be purchased, as well as the average trader would make a trade with ease burden him $ 400 based on less than "feelings" or "alleged". Make sure that you have a plan before you start trading. The plan must include stop and limit levels for the transaction, the same as your analysis should include the underside of the expected well above the expected side.
4. Never Too much information, like many other endeavors, it is important to keep your trading simple. Many traders start with a simple and successful strategy, but find themselves trying to cut and change to find a better system. They also allow themselves to be influenced by other opinions and too many fundamentals. Stock market trading is usually similar in this regard. Good training is to teach a child or adolescent is a simple trading strategy or design rules to follow and allow them to trade a demo account. Many traders who have done this have been surprised that their children can enter into transactions with good, consistent, and often with spectacular results.
The lesson is that they do not deviate from the rules that exist and are not affected by the media or fundamentals. Many traders do not pay attention to fundamentals at all and succeed in the deal. The rule here is to keep it simple, do not allow yourself to become confused with too much information and if you're unsure or are not in a good emotion in the mind, do not trade.
5. Do not marry your trades. The reason trading with a plan is very important because most objective analysis is done before the trade is executed. Once a trader is in a position, they tend to analyze the different markets in the "hope" that the market will move in the desired direction rather than an objective vision of the changing factors that may be turned against your original analysis. This is particularly an actual loss.
With a losing position tend to marry their position, which causes them to ignore the fact that all signs point towards continued losses. Do not trade, even more so with the expectation that the market will turn in your favor. This will only accelerate your losses.
6. Do not bet on this field. Do not overdo the transaction. One of the most common mistakes that traders make is leveraging their account too high by trading much larger sizes than they ought to balance their trade wisely. Leverage is a double-edged sword. Just because one lot (100,000 units) of currency only requires $ 1000 as a minimum margin deposit, it does not mean that if a trader with $ 5,000 in the account should be able to trade 5 lots. One lot is $ 100,000 and should be treated as a $ 100,000 investment and not put $ 1000 as a limitation.
Most traders analyze the charts correctly and place sensible trades, yet they tend to over leverage themselves. As konskuensinya, they are often forced to exit a position at the wrong time. The best rule is to trade with 1-10 leverage or never use your balance more than 5 at any given time. Trading currencies is not easy. (If easy, everyone would be a millionaire!)
Saturday, December 25, 2010
Forex Advantages
Investment through the On-line Forex Trading (FOT) needs to get its own records, because it has many advantages, and is the investment in the millennium. Just like investing in commodity futures because futures trading FOT investment is included in FOT has facilities Two Ways Leverage and Opportunity, the equity investors for margin deposit only 40-10% of the total investment required, is likely to benefit can come from two occasions, ie when the exchange rate which we hold strong or weak.
In addition, investors also can actively control the investment risk is minimal. In terms of fund flows as well as fast as commodity futures.
Another advantage of investment Online Forex Trading is:
1. Leverage levels. The level of leverage in commodity futures generally 20: 1, whereas the level of leverage in the FOT 100: 1.
2. Liquidity levels. The amount of trading volume per day in the FOT is reached USD1.5 trillion create liquidity in the forex rate is much greater than any trade.
3. Trade time. The wide range of global trade make time FOT FOT trading 24 hours a day, no stopping, while the trading in stocks and commodity futures only 7 hours a day.
4. Free Real-time Quotes. In the FOT, investors are given the facility which contains information on price movements in real time, continuously for 24 hours for free which can be accessed from the internet, while the stock and commodity futures trading conventional, does not provide this facility.
5. Guaranteed Limited Risk. Unlike conventional traded commodity futures, where investors can experience losses greater than the funds paid in, in the FOT, secured investors will not experience losses in excess of the funds paid in capital.
In addition, investors also can actively control the investment risk is minimal. In terms of fund flows as well as fast as commodity futures.
Another advantage of investment Online Forex Trading is:
1. Leverage levels. The level of leverage in commodity futures generally 20: 1, whereas the level of leverage in the FOT 100: 1.
2. Liquidity levels. The amount of trading volume per day in the FOT is reached USD1.5 trillion create liquidity in the forex rate is much greater than any trade.
3. Trade time. The wide range of global trade make time FOT FOT trading 24 hours a day, no stopping, while the trading in stocks and commodity futures only 7 hours a day.
4. Free Real-time Quotes. In the FOT, investors are given the facility which contains information on price movements in real time, continuously for 24 hours for free which can be accessed from the internet, while the stock and commodity futures trading conventional, does not provide this facility.
5. Guaranteed Limited Risk. Unlike conventional traded commodity futures, where investors can experience losses greater than the funds paid in, in the FOT, secured investors will not experience losses in excess of the funds paid in capital.
Forex Online Trading
FOREX transaction turnover in financial markets already far exceeds the turnover of transactions in real markets (export-import and domestic trade), then this shows the many parties who "play" in the forex market it. In 2001, forex trading turnover on the major exchanges just reach $ 1200 billion per day, this figure jumped to $ 1,900 billion per day.
Many interested parties are due to start investing in forex trading is not required a long process, simply have the capital then one can go to invest. When carried out an intensive investment, the investment is no longer a job on the side (side job), but has become a new profession or main occupation (main job).
Many such investors their daily work just staring at the computer screen to see the foreign currency price movements. They are persons with a new profession known as day traders, that is, those who perform daily forex transactions on-line. But, does not mean the term was 24 hours daily, but could have been after the purchase, an hour later investors to sell. Or even a few minutes later. With this on-line system, a day trader can make transactions anywhere in real time, including at home, as is done by Brett Wilson, a Cathay Pacific pilot. Even a housewife in the Philippines were a day trader from his living room (Nathaniel & Erck, 1999).
The trend has hit Indonesia. One of the pioneering provide investment services on-line forex is PT. KAPITALINDO ASIA COMMODITY FUTURES. This company has secured a license from BAPPEBTI to conduct forex trading online. With the legality of the permit then all transactions are secured by BAPPEBTI
Many interested parties are due to start investing in forex trading is not required a long process, simply have the capital then one can go to invest. When carried out an intensive investment, the investment is no longer a job on the side (side job), but has become a new profession or main occupation (main job).
Many such investors their daily work just staring at the computer screen to see the foreign currency price movements. They are persons with a new profession known as day traders, that is, those who perform daily forex transactions on-line. But, does not mean the term was 24 hours daily, but could have been after the purchase, an hour later investors to sell. Or even a few minutes later. With this on-line system, a day trader can make transactions anywhere in real time, including at home, as is done by Brett Wilson, a Cathay Pacific pilot. Even a housewife in the Philippines were a day trader from his living room (Nathaniel & Erck, 1999).
The trend has hit Indonesia. One of the pioneering provide investment services on-line forex is PT. KAPITALINDO ASIA COMMODITY FUTURES. This company has secured a license from BAPPEBTI to conduct forex trading online. With the legality of the permit then all transactions are secured by BAPPEBTI
What is Forex?
Forex is the foreign currency trading. Foreign currency trading is no different than other goods, namely exchange activity occurs, where the owner of the goods handed over the goods to the buyer, then buyer will hand over money in exchange for goods that gets.
In the case of currency trading both sides of sellers and buyers alike hand over the money, in exchange, but money is a different origin. For example, we in Indonesia have the rupiah currency, then we want to buy dollars, then we hand over our dollars to get U.S. dollars. Of course the value of the exchange according to market prices.
If in the market, the price of a cow USD. 5,000,000, then we have to hand over money was to get a cow. Well, in the forex market, we also have to hand over our money market rates over a number of U.S. dollars that we buy. If the market price of U.S. dollars is USD 9.000, then we should hand over Rp. 9.000 to win U.S. $ 1, or Rp. 18.000 to earn U.S. $ 2
In the case of currency trading both sides of sellers and buyers alike hand over the money, in exchange, but money is a different origin. For example, we in Indonesia have the rupiah currency, then we want to buy dollars, then we hand over our dollars to get U.S. dollars. Of course the value of the exchange according to market prices.
If in the market, the price of a cow USD. 5,000,000, then we have to hand over money was to get a cow. Well, in the forex market, we also have to hand over our money market rates over a number of U.S. dollars that we buy. If the market price of U.S. dollars is USD 9.000, then we should hand over Rp. 9.000 to win U.S. $ 1, or Rp. 18.000 to earn U.S. $ 2
Monday, October 18, 2010
Dads Message
Once upon a time there are 2 people brothers. When his father died prior notice three things:
Do not collect the debt to the people who owe you
If they go from house to shop not to face the sun Eat cuisine from 10 animals
Time has moved on. And the fact occurred, that a few years after his father died, the firstborn child get richer while the youngest became increasingly poor. His mother is still alive to ask that question to them. Answer the youngest child:
This is because I followed my father's. Dad told that I should not be getting a debt to those who owe me, and as a result modalku shrinkage because the people who owe me no pay while I'm not allowed to collect. Father also told that if I leave or come home from the house to the store and vice versa should not be exposed to sunlight. As a result I had to take a pedicab or horse cart. Actually walking is enough, but because the message father my expenses so then multiply the result. And every day I was I had to buy 10 chickens to eat as that mandated that turned out to drain my possessions.
To the first-born children who get richer, ibupun ask the same thing. Answer firstborn:
This all is because I obey my father's. Because the father told him that I did not charge to people who owe it to me, then I do not lend thus not capital losses. Father also gave the message that so if I go to the store or home from the store should not be exposed to sunlight, so I went to the store before sunrise and return after sunset. As a result the store before I open another store to open, and close long after the other stores closed. So because of the habit, people become aware and be selling my shop because they have longer working hours. And I'm very grateful because I only eat fish that cheap pindang and occasionally dried fish that cost is also cheap.
Do not collect the debt to the people who owe you
If they go from house to shop not to face the sun Eat cuisine from 10 animals
Time has moved on. And the fact occurred, that a few years after his father died, the firstborn child get richer while the youngest became increasingly poor. His mother is still alive to ask that question to them. Answer the youngest child:
This is because I followed my father's. Dad told that I should not be getting a debt to those who owe me, and as a result modalku shrinkage because the people who owe me no pay while I'm not allowed to collect. Father also told that if I leave or come home from the house to the store and vice versa should not be exposed to sunlight. As a result I had to take a pedicab or horse cart. Actually walking is enough, but because the message father my expenses so then multiply the result. And every day I was I had to buy 10 chickens to eat as that mandated that turned out to drain my possessions.
To the first-born children who get richer, ibupun ask the same thing. Answer firstborn:
This all is because I obey my father's. Because the father told him that I did not charge to people who owe it to me, then I do not lend thus not capital losses. Father also gave the message that so if I go to the store or home from the store should not be exposed to sunlight, so I went to the store before sunrise and return after sunset. As a result the store before I open another store to open, and close long after the other stores closed. So because of the habit, people become aware and be selling my shop because they have longer working hours. And I'm very grateful because I only eat fish that cheap pindang and occasionally dried fish that cost is also cheap.
Fool Trader
Long time Floating habit obviously not planned, because they do not want to accept that position dah wrong / not ready to bear the loss.
Market drift, the market rose ragu2 go up, fitting dah new high rises, tiba2 down market panic, when it comes down dah much shock finally dispose of distinguished pairs of buy sell, at market permainkan, eventually rising again.
Greedy, initially target 20-30 pips uh see I think ya can ride a lot, finally opened a take profit and then end the story ends sadly, should have been easy to minus 30 pips profit hehehe.
Hope, when the position of -30 - 40 continue to hope that the position would suit our direction, finally stress - the greater the positif2 not.
Margin call, this error newbie trader, do not understand the calculation of margins, and how many numbers safe / secure quantity, playing too much money end up exhausted the taxable margin call.
There are still many difficult fools mistakes who actually were dictated by the words. I think you guys understand is, for those who had also became a stupid trader Smile So the reader until this point must have thought, "how do you know" so the solution is how?
Hahaha, easy to readers. You have to get used to trading planned, like going into a position in any number, enter the position for what, going out where if you are wrong, going out where if you are correct. Sesimple wrote it anyway, not some complicated-complicated. If still confused, too? Yes have read it slowly and think of first. Have you understood? FOREX world is not no master of the forex words, all must learn and learn !
Market drift, the market rose ragu2 go up, fitting dah new high rises, tiba2 down market panic, when it comes down dah much shock finally dispose of distinguished pairs of buy sell, at market permainkan, eventually rising again.
Greedy, initially target 20-30 pips uh see I think ya can ride a lot, finally opened a take profit and then end the story ends sadly, should have been easy to minus 30 pips profit hehehe.
Hope, when the position of -30 - 40 continue to hope that the position would suit our direction, finally stress - the greater the positif2 not.
Margin call, this error newbie trader, do not understand the calculation of margins, and how many numbers safe / secure quantity, playing too much money end up exhausted the taxable margin call.
There are still many difficult fools mistakes who actually were dictated by the words. I think you guys understand is, for those who had also became a stupid trader Smile So the reader until this point must have thought, "how do you know" so the solution is how?
Hahaha, easy to readers. You have to get used to trading planned, like going into a position in any number, enter the position for what, going out where if you are wrong, going out where if you are correct. Sesimple wrote it anyway, not some complicated-complicated. If still confused, too? Yes have read it slowly and think of first. Have you understood? FOREX world is not no master of the forex words, all must learn and learn !
Saturday, October 16, 2010
Rich Minded
You would never hear the name Robin Hood, right? This figure is favored by many people because of heroic stories that rob money from the rich and then distribute the results to all people equally poor. If we look at the radical side, the high popularity of Robin Hood shows that many people who feel that the world is not fair because the rich people can have so much money. Indeed, the facts show that most of the money in circulation is dominated by only a small part of the community. Now the question is, how the condition of the world if Robin Hood managed to collect all the money and distribute them evenly to all people? At first glance looks more beautiful world. No more rich people, and no longer poor. All people living with the same prosperity. Marshall Sylver, in his book Passion Profit Power, explained in more detail about the questions above. What will happen to this world if the money is distributed evenly to all people? And apparently the answer is pretty pathetic. Within 5 years, the composition of the money will go back to normal. The people who used to be rich will return control of most existing money. Why does this happen? The answer lies in the mindset of people about their money. Most people, who in turn will re-poor, would think "Yummy this money used to buy what?". Then the money was spent to purchase goods, vacation or have fun. In short, consumptive. After all money is spent, they again become poor. Different things happen to rich people. Wealthy people will think how to utilize the money for to bring in more money. They will use the money to open businesses, or invest. Eventually they will collect money far more than ordinary people. Most people can not accept this fact. The people who are poor are more likely to blame the environment, others or fate. These are actions that are not appropriate. Action blame will not change the poor become rich. It would be far better if we all are willing to evaluate the situation objectively. We can observe the rich people around us, we can learn positive ways of thinking, and we can apply in our lives. Wealth will come by itself. Let us jointly develop ourselves by studying the mindset of people rich, and apply them in our daily life.
Do you can called a trader?
whether the profession a trader promises?
why most traders lose a lot of reply?
why play forex & stock always lose?
This is the stage of a trader to become successful play and abaca frex and after this stage please addressed wisely and not emotionally ....
Level 1 unconscious incompetence
Once you sign the agreement settled trades, this is where you are. You became a trader because you heard that a trader can beat the revenue income of a state director. After all when you have profit simulation 3 times, then what is hard?. You may be able to profit with stunning results of 100 points to 200 points per lot per day, but it all just beginners luck alone. You would not believe at first, relying solely an indicator only, or even just by instinct (read an article about instinct in trading psychology), yet you can profit. But unfortunately, the market will beat you. No successful trader only by a factor of LUCK. loss after loss over you, but if you try to survive until the margin out, who can stand??. You did not realize that you can not trade, you still think you can trade even if all the facts say otherwise (whether this month's profit?, Profit last month?, This year's profit?). You still think that you are someone special, someone who will be able to get the key to the wealth of trading. And you do not realize that 90% of traders who fail to have feelings like that. You do not have a system that kumplit, you are ruled by your emotions, you are always averaging position if the loss is because of you Anger on the market, you always take profit in small quantities or let profits turn into losses because you are ruled by Greed, you never trading because you fear / FEAR. You let yourself controlled by emotions so that your equity margin suffers. 90% of people who trade only up at this level, they usually give up, stop trading and take this all just a bad dream again belaka.sebagian morale plummeted, they are still looking for investors and trading like mad. within a month or two months ago exhausted their margin to find prey again. They still claim to be traders, but their actual executor. and usually the moral of this drop will gladly served as the broker management. and some will remain as usual and claimed ngantor trader but never trading, they usually blame themselves. Only a matter of time, until when they can survive at this level and the time always wins. 90% of Trader is on this level, and only 10% aware and move to level 2.
Level 2 Conscious incompetence
At this level you realize that you could not trading, you do not have the ability to generate trading profits consistently. And you know the solution, you realize that while in level 1 is obscured by the emotions you thought you so that you can not think clearly. At this level you will find the holy grail (a perfect system, the system is 100% profit, the system that never loss), you begin to purchase the existing system on the internet, you read all the websites that exist about trading from the UK, USA, Australia , Europa to Russia, you see all existing ebook, you practice all the systems that you get, you're thirsty for knowledge like a wanderer in the desert is thirsty for drinking water. At this level you will read all the details about the indicators, you will test all existing indicator in metatrader, even you might create your own indicators (usually a combination of 2 or 3 indicators), you'll play with moving averages, Fibonnacci lines, pivot point, camarilla pivot, deMark, Fractals, Divergence, DMI. ADX, Bollinger Bands, and hundreds of other indicators. You know that the market is too complicated for the Predict with only 1 indicator only, you know the ideal combination of each indicator. you know percis excellence indicators and also his weakness. You will try to guess the TOP and BOTTOM of the market with these indicators. You will join a chat room traders and ask stupid questions on senior trader. because you know if you do not ask now then forever you will never know.
At the end of this level you will get 5 to 10 complete system and try to figure out which system is best suited to your personality. Of the 10% of traders who is on this level, only about 7% of the successful move to level 3.
Level 3 The EUREKA Moment
At the end of level 2, you finally realize the main problem lies not in the system. You realize that you can get a profit even if only using a simple system such as moving average without any other indicators, if you can use your head and money management right. You begin to read books on trading psychology, and identify with the character described in the book. Finally came the Level of Enlightenment. This makes the brain level of enlightenment you realize one important thing, in this world no one is able to accurately predict what will happen to the market 30 seconds later. You begin to master one trading system and modify it so that it fits with your character, and able to provide more profit than the original system. You start trading if you know the probability for a larger profit than for loss, you are only trading if there is a signal from your system, you always use stop losses, because you know that stop losses are business risks that exist in the world of trading. When you hit stop losses, you are not emotionally because you know no one can predict, and it's not your fault. The next trading will increase the probability of profits because you know your system is the system of profit. You are instantly aware that trading in the world there is only one important thing is consistency in the system, trading psychology and money management you. And discipline you to do any trading that occurred. You learn about money management, 2% risk, and other things. and it reminds you a year ago when someone gave the same advice to you and you choose to ignore it. when it is you are not yet ready but now you're ready. At the level of enlightenment, your brain will accept that you can not predict market movements, because no one could. Of the 7% of traders who is on this level, only about 5% who successfully advance to the next level.
Conscious Competence Level 4
Okay, now you're just trading system if and only if you give the signal. You cut loss as easily with a take profit. because you know your system will give more profit than loss, and cut loss that you do is a business risk that is max 2% of your account. At this level you start with a profit target of 20 points per day, and after you are able to do it consistently for several weeks, you increase the target by 40 points per day. And it could ultimately do. You still have to work hard to get it, fix your system, control your emotions, and implement money management that you hold. this level usually runs about 6 months. Than 5% of traders only about 3%, which could advance to the next level.
Level 5 Competence unconscious
Well now you get to the level 5, this is a level that most expected by all traders in the world, at this level you can trade in nature, you have mastered it all, you can be Dancing with the Market, the direction the market is running, you have open in the right position, so you live to see the profit you move from 2 digits to 3 digits. This is the top level of a trader, this is the level of utopia, you have mastered your emotions and now you are trading with an account that continues to grow each day from the cumulative profit that you earn. You'll be a star in the trading chat room, and people will listen to what you said, you are familiar with their questions, because you're positioned them 2 years ago. You will provide advice to them, but you know that most of them will not listen because they are still level 1 trader. You will not have financial problems again, you can buy all the items available for sale, you can buy the island and trading there as long as there is internet, you can move to a 5 star hotel, and became permanent residents there. You have income like a superstar, you can create their own book, you can trade on margin without limit, and your account will be many times more than initial account. Only 3% of traders who can reach this level. Now you can proudly say "I'M A TRADER".
why most traders lose a lot of reply?
why play forex & stock always lose?
This is the stage of a trader to become successful play and abaca frex and after this stage please addressed wisely and not emotionally ....
Level 1 unconscious incompetence
Once you sign the agreement settled trades, this is where you are. You became a trader because you heard that a trader can beat the revenue income of a state director. After all when you have profit simulation 3 times, then what is hard?. You may be able to profit with stunning results of 100 points to 200 points per lot per day, but it all just beginners luck alone. You would not believe at first, relying solely an indicator only, or even just by instinct (read an article about instinct in trading psychology), yet you can profit. But unfortunately, the market will beat you. No successful trader only by a factor of LUCK. loss after loss over you, but if you try to survive until the margin out, who can stand??. You did not realize that you can not trade, you still think you can trade even if all the facts say otherwise (whether this month's profit?, Profit last month?, This year's profit?). You still think that you are someone special, someone who will be able to get the key to the wealth of trading. And you do not realize that 90% of traders who fail to have feelings like that. You do not have a system that kumplit, you are ruled by your emotions, you are always averaging position if the loss is because of you Anger on the market, you always take profit in small quantities or let profits turn into losses because you are ruled by Greed, you never trading because you fear / FEAR. You let yourself controlled by emotions so that your equity margin suffers. 90% of people who trade only up at this level, they usually give up, stop trading and take this all just a bad dream again belaka.sebagian morale plummeted, they are still looking for investors and trading like mad. within a month or two months ago exhausted their margin to find prey again. They still claim to be traders, but their actual executor. and usually the moral of this drop will gladly served as the broker management. and some will remain as usual and claimed ngantor trader but never trading, they usually blame themselves. Only a matter of time, until when they can survive at this level and the time always wins. 90% of Trader is on this level, and only 10% aware and move to level 2.
Level 2 Conscious incompetence
At this level you realize that you could not trading, you do not have the ability to generate trading profits consistently. And you know the solution, you realize that while in level 1 is obscured by the emotions you thought you so that you can not think clearly. At this level you will find the holy grail (a perfect system, the system is 100% profit, the system that never loss), you begin to purchase the existing system on the internet, you read all the websites that exist about trading from the UK, USA, Australia , Europa to Russia, you see all existing ebook, you practice all the systems that you get, you're thirsty for knowledge like a wanderer in the desert is thirsty for drinking water. At this level you will read all the details about the indicators, you will test all existing indicator in metatrader, even you might create your own indicators (usually a combination of 2 or 3 indicators), you'll play with moving averages, Fibonnacci lines, pivot point, camarilla pivot, deMark, Fractals, Divergence, DMI. ADX, Bollinger Bands, and hundreds of other indicators. You know that the market is too complicated for the Predict with only 1 indicator only, you know the ideal combination of each indicator. you know percis excellence indicators and also his weakness. You will try to guess the TOP and BOTTOM of the market with these indicators. You will join a chat room traders and ask stupid questions on senior trader. because you know if you do not ask now then forever you will never know.
At the end of this level you will get 5 to 10 complete system and try to figure out which system is best suited to your personality. Of the 10% of traders who is on this level, only about 7% of the successful move to level 3.
Level 3 The EUREKA Moment
At the end of level 2, you finally realize the main problem lies not in the system. You realize that you can get a profit even if only using a simple system such as moving average without any other indicators, if you can use your head and money management right. You begin to read books on trading psychology, and identify with the character described in the book. Finally came the Level of Enlightenment. This makes the brain level of enlightenment you realize one important thing, in this world no one is able to accurately predict what will happen to the market 30 seconds later. You begin to master one trading system and modify it so that it fits with your character, and able to provide more profit than the original system. You start trading if you know the probability for a larger profit than for loss, you are only trading if there is a signal from your system, you always use stop losses, because you know that stop losses are business risks that exist in the world of trading. When you hit stop losses, you are not emotionally because you know no one can predict, and it's not your fault. The next trading will increase the probability of profits because you know your system is the system of profit. You are instantly aware that trading in the world there is only one important thing is consistency in the system, trading psychology and money management you. And discipline you to do any trading that occurred. You learn about money management, 2% risk, and other things. and it reminds you a year ago when someone gave the same advice to you and you choose to ignore it. when it is you are not yet ready but now you're ready. At the level of enlightenment, your brain will accept that you can not predict market movements, because no one could. Of the 7% of traders who is on this level, only about 5% who successfully advance to the next level.
Conscious Competence Level 4
Okay, now you're just trading system if and only if you give the signal. You cut loss as easily with a take profit. because you know your system will give more profit than loss, and cut loss that you do is a business risk that is max 2% of your account. At this level you start with a profit target of 20 points per day, and after you are able to do it consistently for several weeks, you increase the target by 40 points per day. And it could ultimately do. You still have to work hard to get it, fix your system, control your emotions, and implement money management that you hold. this level usually runs about 6 months. Than 5% of traders only about 3%, which could advance to the next level.
Level 5 Competence unconscious
Well now you get to the level 5, this is a level that most expected by all traders in the world, at this level you can trade in nature, you have mastered it all, you can be Dancing with the Market, the direction the market is running, you have open in the right position, so you live to see the profit you move from 2 digits to 3 digits. This is the top level of a trader, this is the level of utopia, you have mastered your emotions and now you are trading with an account that continues to grow each day from the cumulative profit that you earn. You'll be a star in the trading chat room, and people will listen to what you said, you are familiar with their questions, because you're positioned them 2 years ago. You will provide advice to them, but you know that most of them will not listen because they are still level 1 trader. You will not have financial problems again, you can buy all the items available for sale, you can buy the island and trading there as long as there is internet, you can move to a 5 star hotel, and became permanent residents there. You have income like a superstar, you can create their own book, you can trade on margin without limit, and your account will be many times more than initial account. Only 3% of traders who can reach this level. Now you can proudly say "I'M A TRADER".
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