Author: Sacha Tarkovsky
Source: articledashboard.com
The logic of day trading is totally flawed and will never make, Stock Day Trading, you money over the longer term and will wipe out your equity. If you want to prove it ask anyone who says it does to give you a real time track record of profits and you won't get one. Why? Because day trading does not make money. Before we begin, you may ask yourself why there are so many people claiming they make money at day trading? Well the answer is it's a good story and appeals to peoples greed.This creates system sales and revenue for the vendor OF these day trading methods so they make money you lose. Here are the reasons day trading does not work: 1.Time Period A day is to short a time period to judge market trends accurately. Think about it. Trillions of dollars are traded, Stock Day Trading, everyday and prices can go anywhere and there is no, Stock Day Trading, way of guessing what the volatility in a day will be or the direction. Short term moves are simply random. You could probably flip a coin and do as well as most day traders. 2.Stops Day traders use the daily range to buy and, Stock Day Trading, sell and set stops. Stops therefore tend to be close to entry by the very nature of day trading. Volatility in a single session is impossible to judge and most times simply picks off the stops and creates small, Stock Day Trading, losses which add up.3.Banking profits early, Stock Day Trading, Most day traders are looking to scalp a few pips here and there. They do have some wining trades (more by luck than by judgment) but of course they break the fundamental rule of trading leveraged investments which is:Run your profits to cover your inevitable losses. As they have a lot of losses and marginal profits the net result is the erosion and eventual wipe out of account equity. Day Trading is a good story, but in reality day trading doesn't work over the long term. Simply, Stock Day Trading, ask any vendor who, Stock Day Trading, sells a day trading system for this:A real time track record of their profits over 3 years and see the answer you get. The conclusion from all of this? You guessed it - Avoid day trading if you don't want to lose your money.
Showing posts with label currency trading. Show all posts
Showing posts with label currency trading. Show all posts
Sunday, September 27, 2009
Wednesday, September 23, 2009
Learn Forex Trading - Essential Beginners Tips Part 1
Author: kelly Price
Source: articledashboard.com
In this series, Stock Day Trading, of articles I am going to share my 25 years of experience with you - I am not an article writer I am a trader, so my views are based upon experience, not just talk. To Learn Forex trading is not easy, but it's not hard either, it simply requires application in the right areas to succeed. Let's get started and look at what you need to do to become a successful forex trader. If you want to do it you need to do it on your own and not trust the gurus and mentors who tell you they can give you success - the only person who can do that is you. The first point that is vital to grasp is that forex trading is essentially simple, yet few traders succeed, Stock Day Trading, (less than 5%) but anyone can learn to trade, Stock Day Trading, . The reason is that forex trading is a combination of method and mental control and the latter, Stock Day Trading, is very hard to achieve. The first, Stock Day Trading, bit, learning your method is easy - all you need to keep in mind is to: Work smart and not hard Working smart means focusing only on the information you need to win and nothing else. To learn forex trading doesn't take long and you can get a method together in around 2 weeks by studying the right information and the good news is its all available free online. 1. You should use a technical analysis, Stock Day Trading, system, 2. Base you're trading on long term trend following (forget day trading it doesn't and will never work) 3. Base it on support and resistance and a breakout methodology and use momentum indicators to confirm your trading look them all up in our other articles and get familiar with them. Finally keep it simple!Many traders think the harder they work at forex trading the more they will make, but you only get rewarded for being right in forex trading NOT for the effort you put in. Don't make your system complicated keep it very simple - it's a proven fact that simple systems work best and beat complicated ones as they have fewer elements to break in the brutal world of real trading. 25 years ago when I started trading we didn't have access to all the tools that traders do today, but the ratio of winners to losers is no greater today than it was then which leads to an obvious conclusion: That the trading world is constant and technology and information overload won't help you win - in fact it will help you lose which will be the subject of another articleNow you know the basics of devising a currency trading system the next step will be to construct one that works - this will be the subject in part 2 & 3 of this article.
Source: articledashboard.com
In this series, Stock Day Trading, of articles I am going to share my 25 years of experience with you - I am not an article writer I am a trader, so my views are based upon experience, not just talk. To Learn Forex trading is not easy, but it's not hard either, it simply requires application in the right areas to succeed. Let's get started and look at what you need to do to become a successful forex trader. If you want to do it you need to do it on your own and not trust the gurus and mentors who tell you they can give you success - the only person who can do that is you. The first point that is vital to grasp is that forex trading is essentially simple, yet few traders succeed, Stock Day Trading, (less than 5%) but anyone can learn to trade, Stock Day Trading, . The reason is that forex trading is a combination of method and mental control and the latter, Stock Day Trading, is very hard to achieve. The first, Stock Day Trading, bit, learning your method is easy - all you need to keep in mind is to: Work smart and not hard Working smart means focusing only on the information you need to win and nothing else. To learn forex trading doesn't take long and you can get a method together in around 2 weeks by studying the right information and the good news is its all available free online. 1. You should use a technical analysis, Stock Day Trading, system, 2. Base you're trading on long term trend following (forget day trading it doesn't and will never work) 3. Base it on support and resistance and a breakout methodology and use momentum indicators to confirm your trading look them all up in our other articles and get familiar with them. Finally keep it simple!Many traders think the harder they work at forex trading the more they will make, but you only get rewarded for being right in forex trading NOT for the effort you put in. Don't make your system complicated keep it very simple - it's a proven fact that simple systems work best and beat complicated ones as they have fewer elements to break in the brutal world of real trading. 25 years ago when I started trading we didn't have access to all the tools that traders do today, but the ratio of winners to losers is no greater today than it was then which leads to an obvious conclusion: That the trading world is constant and technology and information overload won't help you win - in fact it will help you lose which will be the subject of another articleNow you know the basics of devising a currency trading system the next step will be to construct one that works - this will be the subject in part 2 & 3 of this article.
Monday, September 21, 2009
Currency Trading Systems - Getting A Successful One For Big Profits
Author: kelly Price
Source: articledashboard.com
If you are going to trade, Stock Day Trading, currencies then you need a currency, Stock Day Trading, trading system and below we are going to give you the points you need to consider when building one for yourself which is a lot simpler than many traders believe.
Firs Things First.
Currency trading is a game of odds not certainties so ignore any of the theories or inputs that claim you can predict with science.
So immediately bin Fibonacci, and anything to do with Elliot wave or Gann. They don't work and won't help you achieve currency trading success.
Now - its time to get a currency trading system together, that trades the odds and keep this in mind:, Stock Day Trading,
Your system should be simple.
It should only contain a few indicators and use support, resistance as its foundation.
It's a known fact that simple systems work best, as they are more robust in the face of ever changing market conditions.
Make a system to complicated and it has too many, Stock Day Trading, elements to break and will lose.
Now here is your currency trading system plan.
1. Base it On Support and Resistance
Make sure that it's valid i.e. several tests, that if the levels hold or break, their considered important by the market.
2. Use valid Data
That means forex swing trading or trend following, with data long enough that you can calculate the odds. Forget forex day trading systems - they don't work and never will as the data is too short to be meaningful.
3. Use Breakouts
By all means sell into resistance and buy into support, but if the levels give way remember to:
Buy breakouts!
If you don't, you will miss some of the best high odds trades.
It's a fact that most of the best trends start from new market highs NOT market lows. If you don't know about breakout methodology, its simple to understand and a timeless way of making money, so make it part of your forex education.
4. Confirm Confirm Confirm!
Don't simply execute trading signals and hope that levels hold or break - confirm them first.
This is one of the major errors novice traders make, they want to predict.
Well, if you predict you are hoping and the market will slaughter you - so make sure you confirm.
Make sure price momentum, Stock Day Trading, is going in the direction of your trading signal. If you don't know about momentum indicators then its time to learn. Start with the stochastic, Relative Strength Index and ADX, There are more but these are excellent, Stock Day Trading, ones to start with.
These indicators will confirm and trigger your trading signal so you're trading with price momentum and the odds will be on your side.
5. Understand Standard Deviation
If you don't understand standard deviation of price and volatility, you will lose.
Volatility destroys more novice traders than anything else - so learn to deal with it or join the 95% of traders who get wiped out.
REMEMBER
If you understand the 5 points above and work on them, you can build your own currency trading system - it's not hard to do.
The difficult part about forex trading is not so much getting a method - but having confidence in it and trading it with discipline. If you don't trade with discipline you will lose and you must have confidence to acquire discipline.
If you build your own system based upon the above points, you will have a logical simple system, which is easy to understand have confidence in, can lead you to big Forex profits and currency trading, Stock Day Trading, success.
Source: articledashboard.com
If you are going to trade, Stock Day Trading, currencies then you need a currency, Stock Day Trading, trading system and below we are going to give you the points you need to consider when building one for yourself which is a lot simpler than many traders believe.
Firs Things First.
Currency trading is a game of odds not certainties so ignore any of the theories or inputs that claim you can predict with science.
So immediately bin Fibonacci, and anything to do with Elliot wave or Gann. They don't work and won't help you achieve currency trading success.
Now - its time to get a currency trading system together, that trades the odds and keep this in mind:, Stock Day Trading,
Your system should be simple.
It should only contain a few indicators and use support, resistance as its foundation.
It's a known fact that simple systems work best, as they are more robust in the face of ever changing market conditions.
Make a system to complicated and it has too many, Stock Day Trading, elements to break and will lose.
Now here is your currency trading system plan.
1. Base it On Support and Resistance
Make sure that it's valid i.e. several tests, that if the levels hold or break, their considered important by the market.
2. Use valid Data
That means forex swing trading or trend following, with data long enough that you can calculate the odds. Forget forex day trading systems - they don't work and never will as the data is too short to be meaningful.
3. Use Breakouts
By all means sell into resistance and buy into support, but if the levels give way remember to:
Buy breakouts!
If you don't, you will miss some of the best high odds trades.
It's a fact that most of the best trends start from new market highs NOT market lows. If you don't know about breakout methodology, its simple to understand and a timeless way of making money, so make it part of your forex education.
4. Confirm Confirm Confirm!
Don't simply execute trading signals and hope that levels hold or break - confirm them first.
This is one of the major errors novice traders make, they want to predict.
Well, if you predict you are hoping and the market will slaughter you - so make sure you confirm.
Make sure price momentum, Stock Day Trading, is going in the direction of your trading signal. If you don't know about momentum indicators then its time to learn. Start with the stochastic, Relative Strength Index and ADX, There are more but these are excellent, Stock Day Trading, ones to start with.
These indicators will confirm and trigger your trading signal so you're trading with price momentum and the odds will be on your side.
5. Understand Standard Deviation
If you don't understand standard deviation of price and volatility, you will lose.
Volatility destroys more novice traders than anything else - so learn to deal with it or join the 95% of traders who get wiped out.
REMEMBER
If you understand the 5 points above and work on them, you can build your own currency trading system - it's not hard to do.
The difficult part about forex trading is not so much getting a method - but having confidence in it and trading it with discipline. If you don't trade with discipline you will lose and you must have confidence to acquire discipline.
If you build your own system based upon the above points, you will have a logical simple system, which is easy to understand have confidence in, can lead you to big Forex profits and currency trading, Stock Day Trading, success.
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