Compare the Act of Trading with a Leisure Activity.

[Compare the Act of Trading with a Leisure Activity.]

I would have to go with golf too... because of the mental aspect.

 

edit: My broker would be very pleased if I took 120 strokes to get through a trading session.

 

This is a very funny one. He sure would. And I think we have the same broker!

[Protecting Infrastructure]

That is quite serious. I have a large UPS for now (large - 10kw output for an hour), do regular backups. Just sometimes is strikes. Preparation is everything.

 

Desaster happened to me yesterday, all except possibly some emails in a spool was back this morning. Just when I wrote i used that for my first blog post on my own new trading side - Trade-Robots - Technical Risk. Are you prepared for a disaster?

 

Thank heaven I start being paranoid by now - all servers not at home are backed up every 30 seconds Having good backups saved me from a lot of problems this time. Not the first time a RAID array dies

 

I can only imagine. Damn! What a nightmare. And having experienced that,I don't think you are being paranoid. I think it's taking measures against any other future happenings,which is a good thing.

[Making Changes...]

I was going to post this in "Trading Psychology" but it didn't seem to be a proper fit:

 

Ever get the notion that goes something like this: "if I were to change a few things here and there I could be killing this market".

 

If you've been doing something successfully for some length of time, why change it? I've also come to think that it can be far too easy to forget all the toil and struggle that brought success about, forgetting… "why we do what we do".

 

I recently tried to make some changes to the way that I trade. What brought all this about was the notion that: "I leave a lot of potential profits on the table every day". That is a true statement; can't be denied. But really… so what? After abandoning this project, I had myself so messed up it took a couple of weeks to get my good stuff back.

 

We all concoct, or gravitate to trading systems (methods) that are suited to our temperaments and personalities, and finding that place can be a struggle. It took me a couple of years of trying different methods before I came to that moment when I could say… "Yes, this is what I was looking for" (on second thought, possibly it took that long to understand what I was looking for). This latest excursion has brought about the realization of how fragile trading can be (for a discretionary trader). My methods work because it's the right fit for me. Think about how it's all intertwined: temperament, risk tolerance, competency, and the methods devised to act or counteract with all that. To make major changes, one needs to deconstruct the entire thing… including one's motivations, triggers, and habits… Yikes!

 

Now, I do believe that nothing is static; you are either waxing or waning. Allowing oneself to become complacent can be the death of a career… besides, complacency is boring. It may well be that I will have to be satisfied with taking 10 ticks several times a day, because it's working… only a select few can play professional sports… maybe I'm stuck in the minor leagues (it's not a bad life). Don't know… going to have to think about it some more.

 

Comfort zone,huh? I find myself stuck to routines too because they work. I feel that maybe if I change then it won't work out or will not work out as good as it is right now. But then on second thoughts,I think maybe I am leaving something that could work even better out there. I think the best way to start changing is doing it gradually and not suddenly. That way we won't notice that we are changing until we look back and notice. If it is a good change,then we are happy we started it. If not,we could retrace our steps or try another direction altogether.

[And Now for Something Completely *]

This guy says that when putting his kids to bed and reading them a story, he realised that "they could have been without a dad tonight."

 

I'd have to agree ... but with more ... how did someone this crazy make the decision to have kids anyway, knowing that at any time he could, through his actions, rob them of that?

 

Base jumper survives equipment malfunction in Norway - ABC News (Australian Broadcasting Corporation)

 

It is just natural. We human beings feel the need to procreate,see our own offsprings and feel proud of ourselves. As much as he knows he could rob them that,he wanted to have them. Besides,we all live through risks daily....someone can die anytime and we all don't know when it is our time.

[Trading Thoughts of the Day]

Every time I lost badly,it was because I violated at least one of my rules.

-David J.Merkel.

[Patient Traders Are Winning Traders]

More from the old Innerworth...

 

Patient Traders Are Winning Traders

 

Winning traders show patience. They wait for ideal market conditions before entering a trade. And when they enter a trade, they follow their trading plan, even if it means patiently waiting for the right time to exit. But many traders are impatient. They impulsively jump into trades that they shouldn't have made. And at the first sign of danger, they sell. Why can't they wait? Trading experts suggest that it may be a matter of focusing on immediate gratification rather than waiting for profits to come after a realistic amount of time. Dr. Van K. Tharp, for example, suggets that impatient traders are obsessed with profits. Rather than focus on what is required to trade profitably in the immediate future, they dream about how great it would be to spend future profits immediately. Similarly, Ruth Barrons Roosevelt observes, "Some traders are in a hurry. They want to make money, and they want to make it today." But profitable trading takes time and patience.

 

 

How can you learn to become more patient? First, it's necessary to admit that you are impatient. This can be difficult to do. It's hard to admit our limitations, but the first step in solving any problem is admitting that you have one. Second, as you monitor trades, practice looking at events objectively. Pretend you are watching a television show about yourself. Pretend the character on television isn't you. Watch how impatient you are. See yourself as an objective observer would see you, and then, think about how you might act more patiently. Third, realize that your impatience may be a signal that you need protection from the potentially harmful consequences of a trade. When you are afraid of facing a potential loss, you may impatiently close a trade for fear of experiencing a bigger loss. Rather than allow these fears to lurk in the back of your mind, it's better to face consequences head on. Can you afford to lose capital on a series of trades? Or are you making up dire consequences that don't exist? It's necessary to consider the consequences of your actions and decide if you can deal with them. If you know you can handle the potential negative consequences easily, you will feel calmer, and be able to control your impulses. Fourth, examine the situations that preceded your impatient behavior and avoid them in the future. Identify the times when you were the most impatient. Were you tired? Were you hungry? Were you risking too much? Situations are powerful determinants of behavior. The best way to control your impatience is to avoid those specific situations where you are likely to act on impulse. Fifth, examine your self-talk, which is the dialog you use to talk to yourself as you trade. Scrutinize your underlying attitudes and beliefs. People who are impatient want rewards now, rather than later, and their thoughts reflect this obsession. They think, "It's either now or never" or "If I can't get what I want right now, I never will." It's essential to identify these beliefs and refute them. If you find yourself thinking, "I must make a profit," or "It will be unbearable unless I make a profit," you will act on impulse. Similar beliefs are, "My hard work must pay off now" or "I can't wait any longer." When you notice yourself thinking such statements, refute them. Remind yourself that you can wait. In "Overcoming 7 Deadly Sins of Trading," Ruth Barrons Roosevelt suggests supportive beliefs that can help you trade patiently: "Time is on my side. The market moves in its own rhythm, and I can move fast or slow depending on its pace. A person is able to create wealth slowly through trading."

 

Don't give into the temptation to act on impulse. Trading takes time. Don't think that you absolutely must make profits immediately. Stay calm. You may not make profits immediately, and you don't need to, but if you build up your skills, and gain valuable trading experience, you'll eventually make the profits you want. It's just a matter of patience.

 

Good things come in time. If we are impatient as traders then we are bound to rush into bad trades and make bad decisions. Patience goes hand in hand with consistency. If we have these two,we can face most of challenges that come with trade.

[What is Leverage?]

Leverage can be created through options, futures, margin and other financial instruments. For example, say you have $1,000 to invest.

 

Is this explanation complete? It left me hanging

[Considerations for a Wannabe Trader...]

So after 3 years, do you feel you have addressed all these point poorly/well/got them nailed? It's important for new traders to realise how many things they have to look at and how many more things they will find out they have to look at when they get into trading. Being extremely organised should help!!

 

I feel that before we begin the training journey,we should consider our interest in it,mostly. It shouldn't be just for the money. The moment we really love it,then our attitude will be positive. Our efforts will be great and we will have the heart to face any challenges that come with it. The moment we love it,everything else will fall into place.

[Christmas Tree Definition]

An options trading strategy that is generally achieved by purchasing one call option and selling two other call options at different strike prices. When drawn structurally, the strike price of the long option is located below the two successively higher written calls and loosely resembles a Christmas tree.

[What PMI in Forex Industry?]

An economic indicator that measures manufacturing conditions and performance month over month by tracking the percentage of purchasing managers that report better or worse business conditions from the previous month.

[Helpful Tips and Tricks About the Forex Market]

Great to here friends,

I want to learn best forex trading. So anyone who have good experience, plz share some knowledgeable Fx trading tips here.

Tips must be relevant to anyone looking make a second online revenue in Forex trading.

 

 

I hope you have started off with a demo account and not straight to a live one. Demo account helps you learn a lot.

[Beginner's Question]

Why not? Open and hold long position and then open short one for short-term period. Guess in MT4 you'll be required to do it manually, unless you don't have an EA for it.

 

P.S. with stop and limit orders you can do even more...

 

Short and precise answer. Helped me too. Thanks.

[Introduce Yourself Here - Don't Be Shy!!]

Hello,

 

 

I have traded day, night and whenever, lost all my trading accounts because of ignorance and lack of self controls with trading rules, and listening to brokers .... bad idea ! But I am seeking a come back and hopefully recover all my losses of 7 years ago and regain my place in the annals of "not a bad day" $$$$$$$

 

 

Thanks

 

 

motor

 

That's a good spirit right there. Hopefully you have learnt from your mistakes. All the best in the come back.

[What is Leverage?]

Hi guys,

 

Have a good day. What is correct the meaning - Leverage? Explain me.

 

“Leverage” in general terms simply means borrowed funds.

[What is a “good” Time to Trade Forex?]

Here we will be going to take a look what are the best months of the year and the best days of the week to trade forex. The foreign exchange market is open 24 hour for 5 and a half (Sunday) days a week around the whole year. But there are certain times when it is more attractive to trade.

 

Best Months to Trade

 

The worst months for trading are certainly the summer months of June (second half), July and especially August. Many institutional traders in Europe and North America are on vacation which results in less trading activity in general, drying up of trading volume and smaller swings in currency pairs.

 

If you trade during the summer months you will have to take into consideration that prices will be range-bound for a long time and get rather unpredictable. Starting in September – usually after Labor Day in the US – trading activity picks up again as traders return to their desks. Then the best three months of the year follow until volume dries up again in the second half of December as traders take extended Christmas holidays. From January until May it is also very good to trade as we usually witness good swings during these months.

 

Just be very cautious during the summer period and during the second half of December. What normally works in “normal” conditions might not work during these low volatility months.

 

 

Best Days to Trade

 

While the Forex market already opens on Sunday evening Central European Time (Monday morning in New Zealand and Sydney) it is not recommended to start your trading week on Sunday already. Unless there was major news over the weekend there won’t be much going on as volumes and volatility are usually at an extreme low on Sunday evening.

 

Monday can also be very difficult to trade as many traders – especially in Europe – wait for economic news and macro data before they put up new positions. Trading ranges on Monday are usually smaller on average compared with the other days of the week. Tuesday, Wednesday and Thursday are considered to be the best days of the week for forex trading. These three days are usually the days which get the most action. If you want to trade only three days a week and spend the rest of the week at the beach you should chose these three days.

 

The first half of Friday is also pretty decent for trading but please be aware that volumes dry up in the second half of the day as traders head for the weekend. Be also aware of the fact that on Friday trends which have persisted for the whole week can be reversed on Friday’s as traders close their positions to avoid the weekend risk. You should be especially cautious on the first Friday of each month as this is the day when the non-farm payroll report from the US is due. This data usually leads to erratic swings in all major currency pairs, especially in the dollar related pairs.

 

If there is a holiday in more than one major financial center such as Easter Monday or Christmas we usually also witness a drying up of volumes and sometimes erratic swings. Be especially careful on these major holidays as most of the big traders are off their desks. If you avoid these low volatility days you will usually diminish potential frustration and boost your performance.

 

I think it depends on the country one is in and the world economy in general. One should consider this mostly when deciding the best time to trade.

[Don't Understand BID/ASK]

Hello everyone

 

When I select let's say PUT->$1.00 Bid then:

 

I am selling it for $1.00 to a buyer?

or

I am buying it for $1.00 from a seller?

 

I read the following statement:

"The Bid price represents the maximum price that a buyer or buyers are willing to pay for a security"

Does that mean $1.00 is the maximum price I am willing to sell for or buy for from seller!?

I can't seem to understand that simple concept!!! :crap:

WHO AM I WHEN I CLICK On: PUT-BID!?

Does the $1.00 represents: seller of the PUT or a buyer!?

 

Thank you for your time!

 

I had the same confusion once but it got all cleared out finally. The responses you have here so far put it all out clearly,I have nothing more to add to it.

[Stress Makes You Stupid]

the best way to handle stress is by getting into the stock market well-prepared for what it will hurl your way. You need the right education, experience, tools and mindset for this. When we are mentally prepared for a trading day we are less likely to experience stress. Similar to the surgeon, you have to know what you will do in case the market goes against you. You have to know how you will handle yourselves throughout your trading day.

 

Perfectly put. I wouldn't consider a person who was unprepared for a bad turn of events in trade a good trader. Trade won't always be good and if a trader can't handle that fact,they may as well quit business. Cheers

[Keep Trading AFTER Monthly Goal is Hit?]

Im finally getting ready to start trading a live acct. I have been studying and learning for about 4 years and I am now ready to go live. I have been fine tuning my system for about 3 months.

 

I will start out trading 1 contract.. (add 1 ct per every $5000 gained). my goal is $2000 net profit, or about 200 net ticks per month.

 

I trade intraday.. TF, CL, GC, and 6J.. I use tick charts...144, 233, and 610.

 

my system is an overall winning sytem, so my question is this: should I trade every set up I see, or trade more conservatively..ie..stay out after I net 20-40 ticks...per day? with this being said, should I stay out if I meet my monthly goals? or keep trading my set-ups evenafter monthly goals are met?

 

I figure if I meet my monthly goal of $2000 per contract per month, then I should stay out, thus limiting my risk even further.

 

just would like to know other traders thoughts on this particular aspect of money management. thanks in advance

 

Traders are risk takers,naturally. You should continue even after reaching your monthly goals. Besides,some months may be difficult and hinder you from reaching your goals. The months you make more than your goal should cover up for those.

[What is the Last Trading Day of the Year for You?]

My last trading day of the year depends on how good the business is in that year. If my balance sheet allows me,I take my break as early as 1st December otherwise I work up to 20th December.

[More Pips or More Profits ?]

More profit. I dont care for the pips. Its all abt the money in the end.

 

More profits sound good until you start losing pips in a recession. Then you realize it is better to have more pips. Besides,it is easier to slowly work towards increasing your profits with more pips.