Be a qualified trader. Read this.
I am always asking, what kind of trader do I want to be? What kind of trader can you become? Like me, many traders are or have experienced this embarrassment and blind obedience.
Life is full of accidents and opportunities. In fact, many times your efforts have not met the opportunity. Really nothing, let alone fly to heaven, how is it possible. I don't mean not to work hard, but to say that you should not be too aggressive with yourself. The future is full of unknowns, and there are too many unpredictable things. Trading and life are not linear, full of skyrocketing and plunging. What is needed is to be prepared and wait for the chances to come. When the opportunity comes, you will be succeed in what you will be doing. As long as we do what we do now, it is enough to do every transaction in the moment. We are always ready to wait for our own success.
- Short term mice
In my opinion, all the traders who are twitching and following the market, just to grab that little bit of money are short-term mice, including myself. We lack of understanding in the market trend . We are wary and cautiously accumulate small money. It has nothing wrong with this. Short-term mice approach is to accumulate profits. Nonetheless you will have to spend few days to earn back i you do not perform the risk management properly.
Long-term trading requires religious, and many traders who do intraday trading are also very religious. The understandings of the market and self understanding have created our confidence. Every time we judge correctly, we earn enough in our trading system, we can't waste, waste is crime, it is the embarrassment of our trading system and self. Long-term trend trading relies on the market wave. If you encounter a big market wave, you must ride on it. Otherwise you will have to spend a lot of time waiting for the next big waves.
Most traders enter the market from technical analysis. John Morphy's "Technical Analysis of Stocks" is a must-have for many traders out there. You will gain your confidence after number of time of reading trading technical analysis books. However, technical analysis is only the essence of a probabilistic game, and you cannot reject this essence. It is really "the closer the truth is, the more confused it is."
I am not saying that technical analysis is useless. On the contrary, in my opinion, those who just started trading should still study technical analysis seriously. After all, that is one of the few equipment that small investors can use. Many traders, sometimes believe 100% of technical analysis chart without understanding the real meaning behind it. They may even bet all their wealth into it.
That's because they don't know that technical analysis is just a game of probability, and they need to be prepared to make mistakes. Stop loss, this is a very important points for technical analysis. Otherwise, pure technical analysis becomes gambling, and it is no longer important to not look at technical analysis.
With the same technical analysis, some people earned a lot of money, and some people lost money and went bankrupt. Why is that?
Since everyone has already understood that technical analysis is only a game of probability, why is the gap so large? This is due to the gap in execution. For many traders, regardless win or lose money. They are all looking at technical analysis in a rigid way. However, when they really into the game, they tend to hesitate and lose the opportunities when it appears. In the end, the only weapon of technical analysis is basically the same.
- Trading System
The simpler the trading system, the better, don't make it complicated, and the conditions often contradict each other.
With a clear trading system, trading behavior can be integrated and consistent, and it is enough to maintain the consistency of the transaction. Then continue to modify the trading system based on the results of the transaction.
Greed and fear are the mentality issues that every trader must face. Our hearts control our trading behavior. Forex market is always full of all kinds of temptations and traps.
Traders who are not greedy and do not want to make a fortune are afraid to be a bad trader. Those who are not afraid of losing money are also very few. How to solve this problem?
I have been through this statement and I think it was a good answer to this. "Be greedy and not feeling of fear. Do analysis, implement it calmly. Clearly set target profit and stop loss”. That’s enough! The rest is waiting for the final result of the market.