Showing posts with label Forex Trading Tips. Show all posts
Showing posts with label Forex Trading Tips. Show all posts
Wednesday, July 08, 2009
Trading as a game
Andy Bushak always been interested in trade. It traded at a time when I was in the Naval Academy in Annapolis, and when he was a halfback playing football for the "Cleveland Browns". However, Andy did not consider his career as a trader when started, yet he has not received adequate commercial "education." He is actively traded on his own account since mid-1980's, and sometimes sold to hedge fund. Currently, he works with Tom Joseph in the "Advanced GET" and regularly conducts seminars with Michael Kvanbekom. He has made a significant contribution to the development of many concepts of price and time, working in the "Advanced GET". In trade, he specializes in intra-day trade futures, trade on the movement of currencies and positional trade shares.
Trading as a game
Trade like a game of football. What determines the professional level of your game? Preparation is key. A whole week passes before you go out to play with opponents. You are viewing a movie from playing another team, you start to follow the team, players, etc. Then, you treniruetes. When it comes to play, you do not have to think - all that you do - this reaction. I do the same when preparing for the trade. I collect information from more market pictures. I look at some long-term charts to check the trend and see whether there is a long-term trading opportunity.
I work with some tools and Hanna Fibona chchi to obtain good levels of support and resistance. The following graph shows the price value at the time when I zafiksiroval this piece.
Daily schedule for the S & P 500 E-mini with the key Fibonacci levels
Since I did the homework, then when the market starts trading days and start to develop the model, all that I must do - is to respond appropriately. My reactions are guided by my level of support / resistance and trade strategy, based on rules that correspond to this situation.
Therefore, as a result, trade has become as easy game. Follow the schedule of shows in my day, and levels of strategy that was used with them in this case. The following report shows the actual long position entered about 50%-level recovery, after having been installed at least the 5th wave to my predefined levels. I went out 4 contracts at the level of awards / risk on the same day and left a 1 contract for the next day from placing the appropriate stop-order.
A 15-minute schedule for the S & P 500 E-mini and a list of transactions
Market position works in the same way, but you have a little more time to think about it. You conclude their transactions in the afternoon, possibly even on a weekly schedule, but it is the same process. You did your homework, the market is in your target zone, and you just react: you have your orders, and the foot and plan their exits. Maybe you leave some of them, because you can never see these prices again. Traders, who have seen me in action over the years, know that I am holding some key positions in the stocks, like IBM and AMGN in those years. What I'm trying to do - as soon as possible to move to risk status.
For example, with the shares of which are at historically low prices, I take the profit from the share positions and regulate its stop-order in such a way as to remain loss-free. If the trend develops, I will still remain at a profit. If the trend continues to evolve further, I entered the market at a price that may not give to get back.
If you have some good rules, you should get rid of unnecessary emotions that can hinder trade. Once you reach the state where you do not have to think too much and you just react to events, the emotions are under control. The only way to achieve this state is to know his subject. This is what we are trying to do in our seminars. If you know "their opponents on the playing field" (in other words, you've done the necessary homework in advance), then play with time becomes much easier. I always tell people that I have the best job in the world. I continue to trade full-time and spend seminars to communicate with other traders. For me, trading on E-mini allows you to offset the operating costs, and my position on the transaction shares typically have the highest incomes.
Labels: Forex Trading Tips
at 5:20 PM 0 comments Links to this post
Saturday, June 27, 2009
When The Market Goes Against You
Eyb Kofnas is president of an educational Web site for traders forex market - Learn4x.com. The greatest challenge for the trader with trading on the FOREX market there, when he opened the position, and the market begins to move in another direction. Responses to emerging situations are the true test of endurance and intelligence trader.
This paper is dedicated to offer a few strategies that can help in such cases.
Here are the traditional methods of limiting the losses:
1. Stop order: The freeze order shall establish control over the passive losses. When you open a position, you can immediately place a stop order. One of the rules for placing stop orders for the purchase, for example, it would be a stop-order on the previous wage, or at the level of support. When selling, you have to stop a warrant for a previous maximum or on the level of resistance. This allows you to control the loss against extreme movements. However, this does not guarantee the exact performance, because, depending on your broker, the majority of stop orders become market orders when they are activated. In extreme movements, your stop order will be activated, and in fact met, when the price may be too far away. The negative feature of stop orders that recent levels of support and resistance is often tested with a view to increasing the stop-orders. Many faced with a situation where the position is closed by a stop-order, and then the market started to move in a direction which was originally expected.
2. Stop-turn: In this option, you open the position to buy or sell and post stoporder with an additional lot. For example, when buying a lot of euro 86.50, you place an order for the sale of two lots of Euro 85 95. This strategy keeps you in the market, and expands your position. Of course, this does not protect you from possible re-turn the market in the initial direction in which you will find yourself on the wrong side.
3. There is no stop-orders. You open a position and leave her alone. This strategy allows the market to work. There are two disadvantages: a) when the market intensely moving, you remain attached to the wrong side. b) you have to test their patience. A bit long, people may look at the position, which continues to build up their losses. The advantage is that the currency pairs fluctuate over time and have a wide range. If you focus on the longer time scale, the price will tend to remain in the direction of the trend, which is dominant.
Fortunately, there are alternatives to these strategies. Traders are not limited to these three strategies. We'll call this new technique for risk management - Simultaneous buying and selling. Some companies that provide services in the FOREX market offers this feature. Company "FXSOL" is one of the brokers and their trading platform podserkivaet it. We recently spoke with Tom rafts from "FXSOl" on this approach.
"There are several reasons to open a multidirectional stand on the same currency pair," said Raft. First - this is the psychological advantage of the fact that to always be involved in the market. Even though the position zahedzhirovana, and the customer can not lose money because of adverse market movements, it is still emotionally involved in the market and can tailor the hedge in accordance with how the situation develops in the market. The second relates to the ability to remain involved in the market during a limited range of the market. It helps a trader to avoid quick turn, are worst enemies of traders. "
In this strategy you open a position and, if the market moves against you, then you open an opposite position. They will not vzaimozakryvat each other. The position on the purchase, there is the account in conjunction with the position to sell. What makes this really - fix the situation and allow the trader is not the time to manage risk. Say, for example, the position moves in for the purchase of lucrative direction. You can leave a position to sell as is and add to positions on a purchase.
If the market starts to move back, the position on the sale can be closed when it becomes profitable. The advantage of this approach is that it allows the trader quietly assess market conditions and does not become hostage to these conditions. Trader can choose how to balance between these positions. A full hedge occurs when a position in the buying and selling equivalent. This freezes the ratio of profits to losses. But it does not freeze position.
If the profit from the position at one side quickly reaches a certain level, they may be closed for a fixed profit. You can add more to one side and to increase one direction than another.
One of the best applications of this technique is possible when trading ranges. When there is no certain clarity in which direction to go, you can open the position to buy and to sell and let the market come to you for help. To do this, you do not need to test its strength.
While it is not absolutely oshibkoustoychivoy technology, it certainly deserves attention. Ability to be on both sides of the market at the same time is rarely used, but probably could be applied more effectively by most traders.
based on www.futuresmag.com
Labels: Forex Trading Tips, Forex Tutorials
at 5:28 PM 1 comments Links to this post
Wednesday, May 20, 2009
Professionalism in the trade
If you are serious about becoming a successful trader to full-time, you can be helpful these comments. Otherwise, stop reading and do not waste your time.
To become a successful trader requires special intellectual abilities, as well as the ardent desire and self. You can be the best in the world trading system, software and platform, and yet not be successful. Why so? Almost always, your character and control over emotions determines your destiny. Everyone must change and improve the situation, so that, ultimately, to become so, by whom he wants to be in trade. Trading discipline is born out of control emotions. Typically, traders themselves are a very bitter enemy. Clearly, the market environment is critical for success, but not as critical as control of emotions. You need to gain control in order to be successful. There is no substitute for this control. As you can understand what your emotions out of control? Lack of ability to stop when you lose a good indicator.
How do you manage your emotions? Just try to develop patience and focus on the system, rather than the results of your actions. Stay immersed in the present. In other words, stay immersed in the trade, reading charts, indicators, the presence or lack of momentum in the market. This way, you are connected to the market and overcome the emotional proclivities. Do not try to outsmart the market. Stay away from the "results" or as I call it thinking "what if", because it destroys your objectivity and focus on what is important and creates a process of negative thinking. If the golfer to focus on the fact whether he will trehfutovy shock and effects of errors, instead of the implementation of impact, which is required for a successful outcome, it certainly lose this strike. It "puts a heavy cargo on the shoulders, worrying about the consequences of performance or failure of this strike. Especially if there is pressure to do a double kick, sending its share of responsibility in a team of two persons, etc. The same thing happens in commerce, except that there is usually a much larger pressure associated with this activity. This could almost be a question of "life and death" if you allow him to become one. These reflections on the "result" or "what if" makes you lose your concentration on the really important things that will help you be successful. What is important is the process of trading, performed by a step-by-step. It really is as simple as it sounds. At least it was for me. Once I had this vision in the approach to the market, I got control, in which I needed, and things started to straighten. Remember that the only thing you can control when trading in the market - this is how you react to things that you see. Controlling your emotions is crucial, with the right response to those situations that you see. Let's look at the personal aspect. I have had unfavorable family (my wife hated my trade), by a small and a large number of failures that I had to overcome, when I began trading. Familiar, does not it? The only way to get out of this situation was to develop a solution that I will be successful and to refute all of those skeptics, regardless of everything. More importantly, I decided that I achieved patience and slow down things in my world of commerce. I took this notion of "deceleration of things" from the allegations that I have ever seen in a very successful professional athletes and some of the principles of learning that I used in the training of leadership in military schools. When professional golfers, professional basketball players, and, interestingly enough, many drivers of "NASCAR" was very successful, it is like that all slows and it becomes easy to see what to do and how to do it. In the art of war, with enormous strain of battle, the same thing happen when a leader is working properly. This is like a time-lapse. With this in mind the approach I chose to trade in AB, because the market seemed to be moving more slowly than the NQ or ES. I tried to choose methods and time scales (R100 and R75), which were slower in terms of signals. This slowed things happening for me and helped to gain control over my emotions and decision-making. I was more fortunate. Then I found a chat with a man named Woody showed me a way to remain calm in the face of disaster, and remember that the course will be the best deal. Also, I found a software which allows some pretty good template to suit my purposes. However, more importantly, what I did, it took a conscious decision to learn to manage their emotions. I wanted to learn to control themselves. I do not let anything or anyone hinder me to achieve this basic goal. It worked, but every day brings a new struggle to achieve this. But once this was done once, there is confidence that helps you do it again and again. Emotions never go completely - this is quiet the panic with which the majority of traders constantly lives. You can only learn how to manage them. Do this, and will be much easier to succeed, you are thirsty.
based on www.ensignsoftware.com