STAGES OF A FOREX TRADER

STAGES OF A FOREX TRADER
Trading boils down to three main areas - your Mindset (or psychology), your Money management (how you manage your risk) and the Method you use to buy and sell (your trading system). Of those three areas, your mindset and your ability to control it are by far the most important! The key is that your mind drives everything you do in your life and trading is no exception.
Below is a brief outline how a forex trader advances in his skill.
Beginner Trader - To study and paper trade for a minimum of one month with imaginary money, gaining the experience required to establish a track record of profitable performance.
Advanced Beginner - To trade one or two lots with real money, working through emotions and establishing a track record of making money.
Competent Trader - To trade in control with equity management, achieving a financial return.
Proficient Trader - To trade based on my belief, education, and experience and achieves a financial return.
Expert Trader - To mechanically execute profitable trades with no emotion.

You can sill visit this site. www.princefxgold.blogspot.com www.successwatchng.com


PRINCE ADEWALE
FOREX TRADER/TRAINER
prindumy@yahoo.com 2348023085374

Risk comes from not knowing what you are doing

Risk comes from not knowing what you are doing

10 Steps
1) Knowledge Acquisition Great traders are voracious learners. Most professional occupations have a learning curve. Doctors, lawyers, criminals, etc.. Often study years to refine their craft. Novice traders often believe they are immune to such time intensive studies. Don't fall prey to such ignorance - study the markets, put in serious chart time, read and learn from those that are winning.
2) Money Management this one is simple. Trading more then 2-5% of your account on any one trade is account suicide. Let's assume you start out trading a $1000.00 mini-account. Your system has a 30 pip stop loss. The maximum you should risk on any one trade is a dollar per pip. The market will forgive a lot of things - bad trades, bad days even bad weeks but without the capital to withstand the draw down your trading career with be short lived.
3) Simplistic Strategy Have you ever noticed Forex scam sites often provide a unique system that only they have? Additionally - these systems are only known by a hand full of successful traders. Your system should do just the opposite. I use pivot points, psychological levels and trend line breaks because large institutions follow these levels. As a retail trader your goal should be to pick up the pennies in front of the steam rollers. Keep Occam in mind when adopting any trading system. Leave the over complicated systems to the guys at Long Term Capital.
4) Trade During Prime Time One of the biggest benefits of the currency markets is its hours. Its open 24 hours a day 5 days a week. This is great for trend analysis but not for trading. Don't let these extended hours fool you. Only the biggest players trade during the prime hours... so should you. Keep in mind that only 14% of all trades occur outside of non-financial institutions. That's where the retail trader lives. Since we only trade the EUR/USD we only trade between 2:00am and 11:00am EST. This time period covers the European open and close, the open of the US session and the overlap between the US session and the European session.
5) Follow Your Trade Plan You don't know where the market is headed. Don't guess. Hope isn't a strategy. Once you adopt a trading strategy that fits your trading style stick to it. Leave your ego at the door when you begin your trading day. This is one of the most difficult things to overcome. The old adage plan your trade and trade your plan is very important. When you trade outside your plan you will lose.
6) Double Your Demo Account Almost every Forex trading platform offers demo accounts. When you can double your demo account you are ready to trade real capital. Additionally - after your double your demo account trade the first few months of you real capital using micro-lots where each pip equals a small dollar amount. This will help ease the emotional impact of trading real capital.
7) Trade with the Trend All those little axiom's about the trend exist for a reason - the trend is your friend... trade with the trend until it bends... trade the trend or lose in the end - you get the idea. These exist for a reason. They are true. Use long term trend analysis to determine market direction. When you trade with the trend your chances of success are greatly enhanced.
8) Set Realistic Expectation what’s realistic? If you can return 5-8% a month you are doing great. While this may seem like a relatively small goal very few traders can achieve this month after month. If you set unrealistic goals - say 20% a month you better be sitting beside John Arnold because that's about the only way your going to see that kind of returns.
9) Post Trade Analysis when the trading day is over take a few minutes to analyze what happened. Did you follow your trading plan? Was your analysis accurate? Why? Why not? At the end of the week spend some quality time looking over the trades you placed during the previous week. How many trades did you take? Are you over trading? Many traders find it advantageous to keep a journal of their trades and their thought process for taking or not taking the trade. In a very short time you will see patterns emerge that will aide you in fine tuning your trading.
10) Predetermined Profit Targets and Stops Setting your stop loss is a must. Intra-day traders usually use a 20-40 pip stop. After you've adopted a system and spent hours watching the chart you will know where your stop should be. Once you've settled in on a stop never move it. One more time - never move your stop! Remember that capital accumulation is secondary to capital preservation. On the other side of the equation set profit targets prior to entering your trade. Utilizing pivot points will always provide you with realistic profit targets.

YOU CAN CONTACT ME FOR MORE DETAILS OR TRAINING
prindumy@yahoo.com 2348023085374
PRINCE ADEWALE

FOREX MONEY MANAGEMENT

Hello Friends,
I hope you are doing great. Today I would like to share few things that I believe are important to know as a trader. I want talk about a method which keeps your account always in green. You will get to a point where you will have a good run and you will make some cash only to loose it all and go back to your starting capital few trades later. If you already experienced this phenomenon then great, if you haven’t then I hope you do (earlier the better)

Our brain constantly battles between two emotions, Greed and Fear. When we see some green in your account, the “Greed” takes over and we start to bet more and take more risk. Basically starts to enter trades that we are not so sure about and skew the Money Management rule to make more profit. Life is even harder for people who trade with little amount since they have increased pressure of quickly doubling and multiplying their account several times over.

So here is the tip on how not to loose once you made some cash. Here is what you can do. Every time your account balance go up by 15-20% you take it out, either withdraw that money or move it into a different trading account. This way you don’t see that money in your account and you don’t fall into taking unnecessary risk.

This all sounds good but you might ask “How am I going to increase my equity so I can trade more lots? “. So this is what you can do. From the 20% you have taken out, put 50% away for trading, 10% for just for Merriment and rest 40% for everything else like paying bills, food etc. I personally think that the 10% is the most important part. When you use this 10% to do things that you love doing then your brain starts relating to trading as fun and rewarding exercise rather then just another way of making money. Bottom line is that we should try to have more fun and you would see that money would just come along as part of it. I would like to call this Advanced Money Management (AMM, another acronym for you)

If you think that above make sense then I would like to ask you to go and have fun with your 10% (10% of 20% total) and share your experience on the forum. It doesn’t have to big expensive holiday, even a nice dinner with your family would count

Thanks remain bless

Prince Adewale