Wednesday, 31 August 2011
How to trade forex like a business...
Identify Strong trend.
A trend is a friend till it bend.
When everyone see the trend it is too late.
Focus on trend.
Identify early trend.
$10,000 per month earning from Forex Trading.
Forex trading is a business
How to make Forex a low risk investment
Can make it a recession proof business
Too good to be true?
Double your money, 10 times return, too good to be true?
Learn it in systematic way, do it and better it.
Trading income more than personal salary income.
More recession in life. Mentally prepared. Being realistic.
Take charge of financial life. People can make money despite recession, despite economic cycle.
Subprime mortgage crisis.
Market you are doing well. Be good investor.
Forex is high volume, high volatile, No one can corner it.
High risk, learn to control risk
No require of high intellectual.
Require control / discipline
Foreign currency , Buy one currency sell another currency.
There is not such thing as good market. One currency good is another currency bad.
Capture a trend.
Thoughtful systematic plan required.
Involved thoughtful systematic business plan.
Spend 2-3 hour in a day Forex Trading. internet connection, small capital.
Plan your trade. Focus on 2-3hour, Fix your routine. Trading is boring.
If trading bring you excitement, you are doing it wrongly.
10%-15% per month. 100% per month is risky. You are utilising too high leverage.
High leverage, high risk, lose money fast.
$1000 capital allow you to trade up to $100,000 trading amount , 100 times leverage.
Do not abuse leverage.
People make money in Casino. They are going back again. This is the beginning of their disaster.
Don't make forex trading casino.
Not knowing why you win or why you lose. We conclude it is all about luck.
10% per month is your goal in forex trading.
Gambler win $100,000 and lose all and more later.
Trader win $100,000 and lose small partial win later.
What drive Forex market?
Interest rate, economic data, news
Fundamental analysis.
Technical analysis. Chart pattern, technical indicator.
How people use FA , TA is important to win
Trading or investing. People become emotional.
When emotion high, logic or intellectual low.
Market's reponse to news, drive forex market up and down. No!
Crowd psychology is. It is reflected in the chart.
Financial media, breaking news. Economist, analyst, journalist, Why?
They answer the why?
Trader answer the how ? How to profit.
We should focus on the trend, not why.
Subconsciously, we get stuck with majority of psychology.
Logical, do not find the explanation. Focus on Trading opportunities, Trend.
Technical indicator, MACD, stoachastic, RSI, ociliator, lagging indicator, not right.
leading indicator, create high probability forecast, still is using historical data.
Trade Plan.
1) Entry rules
2) Stop loss, Exit rules
3) Profit Target, Exit rules
Trend, support/ resistance, signal, target,
High probability
24 hour trading in Forex, 5-10 trades done in one month.
Be selective. You don't have to trade everyday. Don't trade when the condition is not right.
Entry level is important
Stop loss level is important. You set stop loss depending on market volatility, market condition.
Profit level is important. Must be achievable and high reward than risk.
Invalid your trade.
When hit stop loss, let it rest.
Don't let ego take over you
Control risk
Risk Reward ratio.
Trading Psychology.
Work on this psychology trading.
Risk control
Capital risk 1-3%
Start small.
For 100 trades, 70% win , you are ahead of the game with risk reward ratio 1:1
Set reward 3% or more with risk 1%-3%
10% per month over 2 years is achievable. Lasting business
Market action is random
Don't watch market that is wasting your mental
Trading plan
Execute trade
and switch off your computer
Comprehensive trading plan is important.
Repeat. $10,000 to $100,000 in 2.5years
10% month is possible.
Not to fulfill a quota.
Don't overtrade
don't be greedy, or fearful
Luck matter sometimes but it is short term.
Consistent long term profit is trading skill
Risk control, by systematic calculated.
Triple your capital in one year.
10 times in 2 year.
Seem unrealistic
10% per month is realistic , but most retailer trader cannot do it as they are gambler.
Goals is 10 times return in 2years.
Average 10% per month.
Consistent and skill
Practise demo account as if real account.
Think in term of %
Follow trading rules to control risk so that in the long run your trading is profitable.
% is still not good.
The probability is how many reward vs risk hit.
Be committed
Develop a skill that last a lifetime!
Subscribe to:
Posts (Atom)