What is your biggest forex trading weakness?
- Thread starter virmon
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well i would suggest you to be not over cautious and dont take decisions which may harm your trading strategies!
Well.. many traders cannot be patient with their profit targets. I know it is very tempting to grab the profits in a winning position before the profit objective is reached. There is a fear the market will turn around and the trade will become a loser. Be disciplined. There is a reason your profit objective is where it is. You did your homework before entering the trade and the profit objective you decided on justifies the trade in terms of risk/reward. Frequently take profits before the profit objectives are reached will destroy your whole risk/reward ratio and will finally be the difference between success and failure.
Right, 95% of traders are not disciplined and that is why they do not succeed. They always know better than their system, they always know better then what the market is telling them. Be amongst the 5% disciplined traders and I guarantee you will be light years ahead of the crowd.
Exactly, your psychological state of mind is more important than your dollars. Yes, that is correct. For example, entering a trade when you know you should not enter it and ultimately losing money on it will cause you a financial loss which hurts but can be recovered in the next trade or two. However, it will also cause you a psychological loss in the form of future fear and insecurity. This, will take more than one or two trades to recover!
Hey can anybody explain me how to make out an opportunity in any news release. I am very keen in learning news trading and i keep track of all news data release and market reviews. But can maximize my profit. Please explain me how to make out profit on every news releases.
Thank you
Thank you
I think that both statements are ok, every day there are good possible trading opportunities, but it’s true that after G8 the currency pairs are going to go crazy. I’m not a scalper, but in news releases I suggest to open a position and hold for like 10 min and then take as much profit as you can get from that, then make a diff trade. The “fresh” emotions of a news statement are more volatile and diff than the ones after the waters are calmed…
Hi Sofia,
News trading is simple. It is the trading of foreign currency immediately before or after an important economic news announcement. After such announcements, there is a high possibility that market prices will fluctuate, either for the better or worse, depending on the announcement. For example, if the U. S. Federal Reserve announces another increase of the interest rate, many traders might invest in the U.S. dollar as it is expected that its value will appreciate. The main advantage of news trading is the potential for a country’s currency to make huge gains or losses in very little time. Within minutes of an economic announcement, a country’s currency can gain or lose one hundred points almost instantly. The potential of huge profits attracts Foreign Exchange traders and investors, however there are various risks associated with news trading.
So do it by care!!
News trading is simple. It is the trading of foreign currency immediately before or after an important economic news announcement. After such announcements, there is a high possibility that market prices will fluctuate, either for the better or worse, depending on the announcement. For example, if the U. S. Federal Reserve announces another increase of the interest rate, many traders might invest in the U.S. dollar as it is expected that its value will appreciate. The main advantage of news trading is the potential for a country’s currency to make huge gains or losses in very little time. Within minutes of an economic announcement, a country’s currency can gain or lose one hundred points almost instantly. The potential of huge profits attracts Foreign Exchange traders and investors, however there are various risks associated with news trading.
So do it by care!!
I would strongly recommend reading Mark Douglas - "The Disciplined Trader" and "Trading In The Zone"
Also read http://forex.firepips.com/2009/07/10/forex-losers-1/
Also read http://forex.firepips.com/2009/07/10/forex-losers-1/
t is important to have realistic expectations from forex trading career. Whenever the expectations are beyond the reality, forex trader is likely to be disappointed when the results are not reached. Forex trading depends on a lot of factors and not just the desire to make tones of cash. Once the expectations are reasonable and met, they bring happiness, relaxation, devotion and eagerness to learn more about forex trading.
Yea definitely, any unreal expectations or desires can lead you depressions and dis encouragement to your trading career....
I agree that news trading involves a lot of analysis and studies but once you get the core knowledge its easier than anything else.
I got discouraged several time and given up for some time but I always came back still trying to learn my way up.
Thats a good spirit and a healthy way to move on in your life. I understand the panic situation that comes in the mind when we loose some of the trades but you know thats a part of life and good says always return.
I always believe that there are good day and bad days, there are good weeks and bad weeks, there are good months and bad months. Don’t let a bad day, week, or month put you down. Learn not to measure results in the very short term. Many traders give up after having three or four bad days. Don’t! Know that its part of the business. Hang in there, manage your money well, be persistent and I promise you it will pay off!
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