Beginners - Kill your emotions

Only 5% traders are making money in any financial markets(stocks,commodities and forex).If you are new to online trading my first advice is not to believe any websites that claim for 100% accuracy in trading.It's absolutely impossible.

My question is can we predict our future?The answer may be we can guess.That's it, we cannot tell exactly what our future will be tomorrow.Same concept is applicable to trading.Nobody cannot predict exactly about what will happen next in the markets.

So forex trading business is all about probability and not exact or accurate.

Killing one's emotions seems like a good plan in theory, but it's very hard to achieve in practice.

As a new trader I need more information about trading in the present market conditions as volumes seem to be low and holding positions for longer periods seems unavoidable.

I generally use short-term positions as well. I have no patience to wait for retracements.

Some new traders just need to get their account balance ruined with emotions in order to learn this lesson. Only after that they will confidently wait for appropriate entrances and exits disregarding emotional pressure and seemingly clear triggers for sudden movements. Tough experience is one of the best way for self disciplining, as in my opinion.

I would say that most new traders ruin their account balance because of lack of emotional discipline, to be honest. You either learn and start over or you quit.

Xiantero posted:
Tough experience is one of the best way for self disciplining, as in my opinion.

Unless you lose everything at once while your first experience :) In my opinion you should better start with demo account to try all the opportunities of trading soft. After sometime you will create your own strategy so it will help. Very important thing is to try this psychological moment when your hands are over your head

I agree with the above statements but take also into account that people go way too fast live. Whenever they have some positive trading experiences in their demo accoutns they change to live accounts. Better to get more experience and also take enough time to study analyses and charts. I frequently made in my demo time fibonacci analyses and this smoothed the way for my todays tradin abilities :)

Remember, take your time!

MarkoGersten posted:
I agree with the above statements but take also into account that people go way too fast live. Whenever they have some positive trading experiences in their demo accoutns they change to live accounts. Better to get more experience and also take enough time to study analyses and charts. I frequently made in my demo time fibonacci analyses and this smoothed the way for my todays tradin abilities :)

Remember, take your time!

That's a very good point, actually. Some people make a big profit a few times on demo account and think they're ready for a live account without having achieved being consistent in their profits, and that only leads to losses.

Although this 5% stat is not entirely wrong, yet i will personally disagree to it. It just scares the new traders. If you plan on going to moon without any training, what are you expecting? but if you are trained then stats are just to scare you. This Forex is the biggest financial market, everyone can join in, everyone can earn their bread through it. But train well and you can own the whole bread factory if you know what i mean.

Xiantero posted:
Some new traders just need to get their account balance ruined with emotions in order to learn this lesson. Only after that they will confidently wait for appropriate entrances and exits disregarding emotional pressure and seemingly clear triggers for sudden movements. Tough experience is one of the best way for self disciplining, as in my opinion.

Yeah your right,just as long as you keep that first live account small,not your life savings.

One should generally not invest their life savings into Forex, even if they can trade well. Or at least not all of their life savings.

mlawson71 posted:
One should generally not invest their life savings into Forex, even if they can trade well. Or at least not all of their life savings.

Better to spread your bets in this market for sure.

One of the biggest factors why new traders fail is controlling one’s emotions.
I found very reliable tips that can help you with trading non-emotionally:

1. After your analysis on the trade – set your stops and limits and NEVER adjust them. Sometimes you will be right, sometimes wrong, there is nothing in between. But keep in mind that if you start applying changes – that is a bad habit. Bad habits leads to more bad habits and the snowball gets bigger and bigger. Time to start with good habits as it would lead to other good habits.

2. You need to accept the fact that there will be “LOSING TRADES” – there always is. Most new traders cannot accept this truth, which is another reason why they FAIL. This leads to revenge trader & over-trading. At least 90% of newer traders will abandon a system if it yields 10 losing trades in a row… They will look for the “Holy Grail” strategy which clearly does not exist in trading.

3. You shouldn’t set “daily goals”. You don't know what will happen today, tomorrow, or the day after. Thinking you will for example, gain 1% every day is unrealistic. There will be losing days, flat days and big up days. Not reaching a previously established goal will led again to over-trading.

PipAKazi posted:
Although this 5% stat is not entirely wrong, yet i will personally disagree to it. It just scares the new traders. If you plan on going to moon without any training, what are you expecting? but if you are trained then stats are just to scare you. This Forex is the biggest financial market, everyone can join in, everyone can earn their bread through it. But train well and you can own the whole bread factory if you know what i mean.

Sounds optimistically, but I guess easier said than done. Becoming a successful trader is quite possible, but even taking to consideration your notes, 5% is 5%. And bread factory masters sit highly above us and earn on those 95%, so far not everything is that easy.

Xiantero posted:

PipAKazi posted:
Although this 5% stat is not entirely wrong, yet i will personally disagree to it. It just scares the new traders. If you plan on going to moon without any training, what are you expecting? but if you are trained then stats are just to scare you. This Forex is the biggest financial market, everyone can join in, everyone can earn their bread through it. But train well and you can own the whole bread factory if you know what i mean.

Sounds optimistically, but I guess easier said than done. Becoming a successful trader is quite possible, but even taking to consideration your notes, 5% is 5%. And bread factory masters sit highly above us and earn on those 95%, so far not everything is that easy.

Agreed 100% but, never ever willing to give up on mission Top Hill.

That's a very good point, actually. Some people make a big profit a few times on demo account and think they're ready for a live account without having achieved being consistent in their profits, and that only leads to losses.

yes you’re right but that's how hunger for money and greed works. a lot of people choosing forex do not think about a lot of work such as study, experiment, creation of your own strategy, study your own financial instinct or nerves and so much more, they mostly guided by a sense of fast money and implications that go beyond this. But they do not think about time-requiring education

Hero76 posted:

That's a very good point, actually. Some people make a big profit a few times on demo account and think they're ready for a live account without having achieved being consistent in their profits, and that only leads to losses.

yes you’re right but that's how hunger for money and greed works. a lot of people choosing forex do not think about a lot of work such as study, experiment, creation of your own strategy, study your own financial instinct or nerves and so much more, they mostly guided by a sense of fast money and implications that go beyond this. But they do not think about time-requiring education

Very well-said. Forex trading is a job - a highly complex and intellectual job, and as any such job it requires a lot of time and effort invested in education.

That is exactly what I am talking about. And it is very sad that a lot of people coming to this market are guided by a dream which is getting rich as soon as the speed of light and that is the main reason why they loose so much and do not assess the real cause of loss and about what they've done