Trading education » Discipline

Learn Currency Trading – 5 Common Deadly Mistakes

admin — Mon, 28 Jun 2010 06:58:59 +0000

If you want to learn currency trading you need to get the right forex education and avoid the mistakes of the losing majority. The mistakes below are common ones but there easy to avoid and you must do so if you want to enjoy currency trading success.

1. Following a Vendor Blindly

One of the most common errors is to think someone else can give you success – they can’t.

Most systems sold are junk – but even if you do find a good one, how can you follow it with discipline if you don’t know how it works?

You cant to have discipline to follow a system you must have confidence in it so you need to take the time to develop your own trading system or have total confidence in someone else’s logic.

2. Trading News Stories

We have more news at our disposal than ever before and all those stories are very convincing – but that’s all they are stories. The news reflects the greed and fear of the crowd and they lose longer term – try and trade news stories and you are guaranteed to lose as well.

The best way for any novice to trade is to simply follow the reality of price action on a forex chart and trade it – your trading the truth not an opinion and that is the only way to win.

3. Day Trading

Simply the dumbest way to trade.

It doesn’t work as all short term volatility is random and you can’t get the odds in your favour.

Don’t believe me?

Try and find a forex day trader with a real ( not simulated ) track record that’s made real dollars over the long term. Let me know if you find one I have been searching for 25 years and still not found one!

Avoid day trading at all costs!

4. Trying to Predict Forex Prices

If you try and predict prices in advance you’re hoping or guessing and that won’t get you anywhere in life and certainly not forex trading.

You must not predict wait for momentum to confirm a turn and you can look up how to do this in our other articles – it is essential to confirm a price turn, rather than simply guess when it might come.

5. Markets are Scientific

It’s amazing how many people buy into this myth yet it’s obviously not true.

Why?

Because if prices did move to a scientific theory, there would be no market, as we would all know the price beforehand and there would be no market. The reason a market moves is because we all have different opinions of where the price may go.

The far out investment crowd love scientific theories and like to follow the works and methods of gurus such as:

Gann, Elliot and Fibonacci.

Well they made no money with their theories in forex trading and neither will you.

So if you want to learn currency trading correctly avoid the common mistakes enclosed and work and getting a simple forex trading system which will help you trade the odds, you can understand and can apply with discipline.

If you learn currency trading the correct way ( and 95% of traders don’t ), then you can enjoy currency trading success and create a life changing income – good luck!

By: Kelly Price

Learn Currency Trading – How Did These Traders Make Millions After Two Weeks Training

admin — Tue, 08 Jun 2010 15:11:50 +0000

If you want to learn currency trading and what it takes to win then you should make this story part of your essential for ex trading education. In just 14 days ordinary people with no experience learned to trade and make hundreds of millions of dollars. How did they do it?

In the nineteen eighties trading legend Richard Dennis decided to prove that anyone could learn to trade, with the right forex trading system and mindset.

He therefore gathered a group of people together who had no trading experience, who were of all ages, both sexes and of all educational standards. The group was diverse consisting of a security guard, to an actor.

He then taught them to trade forex and after 14 days gave them trading accounts.

This group made $100 million dollars in 4 years and went on to become legends.

So how did they do it -after all 95% of traders lose what made them different?

Dennis knew that the problem with traders is not so much method but mindset – they simply cannot stick to a plan and keep going when they incur losses. So although he taught them a simple method, he didn’t tell them blindly to follow it, he taught them to learn it and have confidence in it.

You cannot have discipline without confidence.

Even when your confident, its hard to keep trading when the market hands you loss after loss and makes you look a fool.

It’s a fact that anyone can learn to trade yet, few succeed and the reason is they either get the wrong information or simply cannot stay disciplined.

Most traders are simply unprepared for the fact that they must execute rules and stay on course when they lose trade after trade and don’t believe all the rubbish you read online, about regular income and 90% accuracy – that’s not the real world.

You can win at forex trading but you must be able to take losses to win longer term.

Most traders simply don’t have the discipline to do this.

We don’t have time to explain all the aspects of trading discipline here but it’s hard to achieve but that’s why traders who can trade with discipline are so successful – Dennis proved it.

The forex trading system used was simple ( essentially a long term breakout strategy) but it was the mindset he taught the traders – to stand on their own two feet, be confident and take short term losses, to seek longer term gains which was so important.

If you can learn a simple forex trading strategy, get confidence in it and apply it with discipline, you can win.

Sure its not easy, but you wouldn’t expect it to be with the rewards on offer.

So if you want to learn currency trading the right way get a simple forex trading strategy and focus on your discipline and remember if you can’t trade a system with discipline you don’t have one!

There are big rewards to be made but your on your own and must have courage, confidence and conviction in what your doing – do that and you can enjoy spectacular currency trading success.

By: Monica Hendrix

Forex Trading Made Easy – A 3 Step Simple to Follow Plan For Big Profits in 30 Minutes a Day!

admin — Wed, 05 May 2010 19:27:19 +0000

Here we will discuss the subject of Forex trading made easy and despite the fact that over 90% of traders lose money, it’s a known fact that Forex trading is a learned skill and in this article, we will show you how to get the right mindset and education, to enjoy big profits in 30 minutes a day.

Lets go to the first step to success which should be obvious but most traders don’t understand it and lose money – here it is:

1. Accept Responsibility for Your Actions

Most traders don’t and they think they will get rich quick by buying a Forex robot for a hundred dollars or so and making no effort. These systems are laughable in their claims of easy money and anyone who tries them soon gets wiped out. If only making an income for life was as easy as paying a hundred dollars and making no effort. Accept you have to work and now for some good news…

2. Get a Simple Robust Strategy

Forex trading is simple and simple, robust systems work best. If you make a strategy too complicated, it simply has to many parameters to break. Many people think there is some holy grail system and constantly look for it – but there isn’t one so don’t bother looking. Get a simple strategy and you will do just fine and you should be able to learn a system which can make you great profits in around two weeks.

Learning a system which can make money is easy but you have to adopt the mindset to make it work lets take a look at why and how you can get the mindset of a winner.

3. Staying on Course with Your System

When you trade, you will have losing periods, all traders do and it’s the way you deal with these losses which is the key to making money in Forex. Let them run and hope they turn around and you will lose, cut them quickly and you can preserve your equity, until you hit profits again. When you trade Forex, you need to keep your emotions out and follow your system with discipline.

Be a Winner…

Simply understand the three points above and you can enjoy currency trading success. If you do understand them, you can see how you can win and make great profits, when the vast majority of traders lose – good luck and good trading!

By: Kelly Price

Successful Forex Trading – Secrets of the Millionaire Traders and What You Can Learn From Them

admin — Thu, 29 Apr 2010 08:39:49 +0000

Successful forex trading can be achieved by anyone so, what separates out the real pros who make huge long term profits, from the vast majority of losers? Let’s find out…

I am going to start with an experiment which is in fact one of the most successful in trading history which proved anyone could learn to trade.

The Experiment

The experiment took a group of ordinary people, who ranged from a security guard to a kid fresh from school and in 14 days they learned to trade – the result?

They made a $100 million and went down in history as legends.

The experiment was conducted by trading legend Richard Dennis, who wanted to prove anyone could learn to trade, with the right trading education and he proved the point.

The paradox is – anyone can learn to trade but most people lose. So what set this group of millionaire traders apart?

The answer is, forex trading is mostly down to mindset and not method, further explanation will make this clear…

If you take the above trading experiment, the system the traders learned was simple ( a long term trend following breakout method), so simple in fact they mastered it in 14 days. The hard part though was not learning the trading system, but learning to apply it with discipline.

The Key to Forex Success

You need to have a totally different mindset when trading forex.

For example, you can only be wrong and the market price is always right, it will give you long periods of losses and make you look a fool. The challenge for any forex trader is to keep going, through these losing periods, executing trading signals with discipline, until you hit a home run.

You have to have a set of rules you can survive with and have total confidence in them to bring you victory. This means not falling prey to your emotions and ego as most traders do and staying on course.

If you can’t follow a method with discipline you don’t have one!

Dennis knew this and that is why he made them not just learn the system but taught them everything about it, so they had confidence and could stay on course.

A Mindset for Success

Anyone can learn Forex trading and that’s a fact, what you need to concentrate on is your mindset. This means having these traits – An acceptance of you are responsible, confidence in what you are doing, iron discipline to reach your goal and a humble nature with no ego.

If you think it’s easy to do this -its not but if you come into forex trading with the right attitude, learn the right education and trade with discipline you can win.

In any financial market the trader is not defeated by the market itself, he defeats himself success comes from within and if you want to be a successful forex trader you can be its as simple as that.

By: Sonia Kristina

Learning To Trade Futures

admin — Sat, 24 Apr 2010 00:07:16 +0000

It has been said that success in this life is made up of equal parts of learning and yearning. For nearly everyone, it’s possible to accomplish your goals if you have sufficient desire and education. If your desire is to trade futures, you already have a direction; next, you need to couple a relentless pursuit of education with a strong desire to succeed at something very interesting and potentially rewarding. Commodity trading can be complex and frustrating but it is also well worth the effort.

Necessary Traits to Trade Futures

What are the four things necessary to trade futures? They are:

1. You need to have the desire to succeed as a trader – There is a certain air that is needed to trade futures…part student, part bulldog, part daredevil. Desire to succeed will push you to learn more and trade futures smarter.

2. Persistence and motivation – This is a by-product of your desire. Once you have the desire to succeed, you will be willing to put in the time to learn to trade futures and the motivation to make your new business a success.

3. Discipline, discipline, discipline – Discipline to learn the nuances of how to trade futures, discipline to do technical analysis, and the discipline to make smart futures trades. If you trade futures like it is a business you will acquire the discipline to be successful.

4. Someone to help you get started – Whether you learn from someone you know, from going to seminars, or reading books, you will need some help when you start to trade futures. It is important to learn the terminology, techniques and practices that make a successful trader and that knowledge is best passed down from person to person.

An Overview of Futures Trading

Futures trading is different that investing in the stock market or bonds since you don’t actually own anything; in futures trading, you are speculating on the future direction of the price in the commodity you are trading. This is like a bet on future price direction. The terms “buy” and “sell” merely indicate the direction you expect future prices will take. He or she must only deposit sufficient capital with a brokerage firm to insure that he will be able to pay the losses if his trades lose money.

Futures trading is a sort of insurance plan for those who are trading and investing. A farmer may sell futures on his wheat crop if he thinks the price will go down before the harvest; conversely, a bread manufacturer may buy futures if they think the price of wheat is going to rise before the harvest. Regardless of the price movement, both are guaranteed their price. The final component of the equation is the investor in futures trading who looks for changes in the futures markets and seeks to gain advantages by buying or selling at a profit.

The Potential of Futures Trading

Trading futures is an excellent way to make money. It is said that Richard Dennis, a famed commodities trader, was able to parlay $1,600 of borrowed money into $200 million over ten years. Futures trading has a bad reputation as being filled with risk and while there is risk, the truth is that futures trading is only as risky as a trader makes it. This is not the lottery or a trip to the casino; if you take a conservative approach, look for a reasonable return and make this a business then the probability of success in commodity trading is very good.

Some of the better known futures markets are:

• Agriculture – This is a broad, commonly traded futures which includes such things as wheat, soybean and corn futures.

• Currency Trading – Currency trading, also known as FOREX (foreign exchange) trading, this involves buying and selling currency from many different countries such as the US dollar, the British pound and the Japanese yen.

• Interest Rate Futures – This market focuses on financial transactions, interest rates and bonds.

• Energy Futures – This market centers its attention on gas and oil futures.

• Foods – This sector includes items such as coffee, sugar and orange juice.

• Metals – This is one of the more popular and better known sectors. The typical commodities in metals are gold and silver.

Trade Anywhere

One of the real advantages when you trade futures is that you can literally do it anywhere. Since market data can be delivered easily via the Internet, you are free from any geographic restrictions, allowing you to implement trades from almost any location in the world.

Getting Started

In order to get started, you need to equip yourself with a good understanding of how to trade futures, which markets you will target, and above all, you need a trading plan. The trading rules in your plan will help you to understanding yourself and your responses to the things you see on the charts. You need an unemotional approach, backed up by the confidence that you can do it. This confidence comes from proving to yourself that you can win more often than you lose when you trade futures.

By: Stephen Bigalow

Forex Trading Made Easy – A Lesson From a Group of Super Traders For Big Forex Profits!

admin — Thu, 01 Apr 2010 23:58:21 +0000

95% of all traders lose money and that’s a fact but Forex trading made easy is possible and to show you how you can win, I am going to tell you about a group of traders who learned to trade in two weeks and enjoyed stunning trading success…

Richard Dennis was a well known trader who wanted to prove anyone could win at Forex trading, so he set up a test and the test was simple. He set out to get a group of people who knew nothing about trading and taught them to trade in two weeks. He completed his test and his pupils went on to make several hundred million dollars in just 4 years – he had proved that anyone could win with the right guidance.

Before you say, these people must have been college educated or nerds, they were the exact opposite, just ordinary people a security guard, an actor, a boy just out of high school and an actor, to name just a few of the group.

So why did they do so well when most traders fail? Lets take a look in more detail and see how they achieved success.

The strategy itself was simple, it traded long term trends and did so, by entering trading signals via breakouts which all experienced traders know, is a timeless way to make money. The system had far more losing trades than winners and actually had losing periods that lasted months but long term, it did triple digit annual gains.

The key to the systems success was its simplicity which made it very robust and the fact it had strict money management rules which cut lossers quickly and ran profits. Dennis knew the system was easy to understand but the traders would all have problems following it with discipline and this is true for most traders. Most traders simply can’t take losses or stay on track, through losing periods and here Dennis focused on giving them the right mindset to succeed.

Having the right mindset is a choice – if you want to feel smart and clever and win all the time trading is not for you – but if you can accept losses cheerfully, keep them small and stay on course you can win, as the group showed.

Now you may not become as rich as this group of traders, life is simply not like that – but there is nothing to stop you winning as trading success can be specifically learned. Getting the right education is easy but getting the right mindset is harder however you can do it and you can make a lot of money as the experiment we have just looked at proved.

By: Kelly Price

Currency Trading Tutorial – Getting Started in Currency Trading

admin — Sun, 28 Mar 2010 11:13:02 +0000

This is a concise currency trading tutorial, which will give you all you need to get started in currency trading and develop a trading system for triple digit annual gains…

The first point you need to keep in mind is 95% of traders lose and only 5% win. While anyone has the ability to learn currency trading and win, most lose.

So what separates out the winners from the losers?

The real difference is mindset and currency trading is really 20% method and 80% mindset and some explanation will make this clearer.

Discipline and Self Control

Anyone can learn a forex trading system but the key to success is, executing it with discipline when you are losing. It’s not easy to keep putting in your trading signals, while the market hands you losses and makes you look a fool. You need to be disciplined until you hit a home run.

You only get discipline from confidence and understanding.

This means, learning currency trading basics, on how and why prices move and getting the right forex education. You can then build a simple currency trading system.

Sheep Get Slaughtered

The traders who act like sheep and try and follow others, by buying forex robots or gurus and mentors never win.

Most of the forex advice just mentioned, is poor and even the minority which is good, a trader who doesn’t understand the markets will never have the discipline to follow it.

You must accept success is on your shoulders and comes from within – NOT someone else!

You must understand what you are doing and why it will be successful and this point cannot be stressed enough.

Getting a Simple System For Huge Profits

Any currency trading system that is successful is simple!

Many traders think the more complicated they make their system, the better the chances of it being successful – but this is simply not true.

Simple systems work best and always have as they have fewer elements to break in the volatile and brutal world of currency trading.

A simple long term breakout system, with a few confirming momentum indicators, is all you need and we have covered how to build one in simple steps in our other articles, so look them up.

Why Anyone Can Win

Its because currency trading is a learned skill – you just need to work smart and learn the right forex education and have the right mindset and now I want to tell you a story to inspire you…

Richard Dennis decided to prove anyone could learn to trade so he picked a group of people of all ages, both sexes and of varying levels of intelligence. The varied in occupation from a security guard to an actor and Dennis set about teaching them.

In 14 days they had completed their trading education and went on to trade, they quickly went on to make $100 million dollars and go down as trading legends.

So why did this group do so well?

They had a good teacher for sure – but he only taught them a simple trading system.

The key element he gave them was the confidence and discipline to apply it for themselves and in later interviews, many of the traders said:

Learning the system was the easy bit – remaining disciplined was hard.

So get a simple system you understand and the chances are, you will be able to maintain discipline and go onto achieve currency trading success.

Anyone can win at currency trading and the real lesson to take from this currency trading tutorial is:

That the market doesn’t beat the trader, the trader beats himself.

So work smart, have the right mindset and you could be making a great second income, or even get on the road to financial freedom and remember – success can be yours if you understand the points in this article.

By: Kelly Price

Forex Trading Success – Understand the Only Way to Win is Enclosed in This Article

admin — Thu, 25 Mar 2010 11:42:55 +0000

If you want to win and enjoy Forex trading success, you need to understand the key points in this article or you will lose all your money and do so quickly. Let’s look at this key point and how you can get on the road to trading success.

Many traders think they can beat the market and make no effort so they buy a cheap piece of software and lose money. These traders seriously think they will get rich by following a cheap software package and they all lose. If you could buy an income for life so cheaply the whole world would be trading and 95% of traders wouldn’t lose money.

The good news is Forex trading remains simple and simple strategies work best and this is because they are more robust than complex ones with fewer elements to break, cvan you learn one? Of course you can anyone can and you don’t need to work hard or have a college education either. The important point to keep in mind is Forex trading success does not just rely on having a sound method, it relies on having the courage and discipline to apply it. The reason 95% of traders lose, is not because they can’t learn to win, they can but they lose because they are just not prepared to get the right mindset.

The fact is you will have periods of losses and you must keep them small. Most traders fail to do this and over ride their trading signals when they lose and hope the loss turns around and that leads to disaster. Understand this – to win you have to accept losses and keep them small, there is no strategy that wins all the time. Don’t worry about losing though, if you keep the losses small you can run your profits to cover them.

Anyone can win and learning a method is not hard getting the right mindset takes a bit more practice but with a sound Forex education and the desire to succeed, you can enjoy a great second income in 30 minutes a day, it really is that simple.

By: Samuel Leslie Berkovits

Forex Trading – These Traders Had No Experience But in 14 Days Became Super Traders – How?

admin — Thu, 25 Mar 2010 11:34:17 +0000

Imagine having no experience of forex trading, being trained for 14 days and you then went on to make millions – sounds far fetched? Well, it happened in the 1980s in one of the most famous trading experiments of all time which is enclosed and should become part of your essential forex education.

In the nineteen eighties, trading legend Richard Dennis wanted to prove a point and the point was simple:

It doesn’t matter what you do, how intelligent you are, if your young, old male or female, you can become a successful trader, if you have the right mindset and a willingness to learn.

He set out to prove his point.

He gathered a group of people who met the above criteria and they included:

An actor, a security guard, a kid fresh from school and a female auditor – diverse they were but they were all about to get a trading education.

In 14 days, Dennis taught them to trade and set them up with live accounts and they went on to make hundreds of millions of dollars and go down in trading history.

This group was nicknamed “the turtles” and proved Dennis right – anyone could learn to trade with the right education and the right attitude.

That’s interesting you may say… but 95% of traders lose, so how come this group was so successful?

The answer lies in the way they learned.

They learned a simple long term trend following trading system (essentially a breakout system) and it was so simple anyone could understand it. It’s a fact also, that simple trading systems always work best, because they have fewer elements to break than complicated ones.

Now Dennis didn’t just say off you go and trade – he rammed home why it worked, gave strict money management rules and made sure they would be prepared to trade it with discipline, to achieve success.

The above is the important part.

Learning a trading system is not enough, you need to execute it with discipline and take loss after short term loss, without quitting and then profits follow. You need to take losses to win and stay on course.

To trade you need to follow your system with discipline and you need confidence to do this. He taught them to stand on their own two feet and appreciate – learning a trading system is easy – executing it with discipline is the hard bit.

You can learn from someone else – but you have to make the system work for you!

Most traders can’t do this, they like to ask experts, trade worthless robots with simulated track records, or believe drawdowns don’t last and trading is easy and they all lose.

Trading is all about having the mindset to succeed and to execute a plan. Most traders are to lazy or naïve to do this and most think forex trading is easy. Well, when big money is on the line and to be earned – it’s not easy. However, there is a big difference between something being easy and something being achievable.

Sure you might not become as successful as the above group life simply isn’t like that but the opportunity is there – they did it you could to.

Even if you don’t achieve such great success, you can find success which more than makes up for the effort you have to put into your forex trading.

Sure forex trading is not a walk in the park, it’s a challenge but accept it – work hard, have the mindset to succeed and you can find success – it’s up to you.

By: Monica Hendrix

Forex Education – How a Group Of Traders Made Millions After Just 14 Days Training!

admin — Sun, 21 Mar 2010 01:06:48 +0000

If you want to learn the right forex education then you need to study the story enclosed in this article. We are going to look at a group of traders who had no experience but with just 14 days training went on to make over $100 million in 4 years.

The story takes us back 25 years as legendary trader Richard Dennis set out to prove a point:

The Experiment

That anyone regardless of their educational background, age, sex or profession could learn to trade so he gathered together a diverse group he nicknamed “the turtles”

The diverse group consisted of an female auditor, an actor, a couple of professional card players and a security guard – so a diverse group.

The only thing they had in common was they had never traded before.

Dennis set them to work and in 14 days had them trained and they were given accounts to trade and the result was hundreds of millions in profit.

Dennis had proved his point – Anyone can become a trader if taught the right knowledge.

The Paradox

You maybe thinking – if anyone can learn to trade then why do 95% of traders lose their money?

You can learn the answer to this from the turtle experiment.

Dennis knew that teaching a method is easy but the problem is the trader must have the right mindset to apply the method – If you don’t have the discipline to apply your method you don’t have one.

He taught them a simple method – but also everything about it, terms of the logic behind it and why it works. This meant they could have confidence in what they were doing and the discipline to apply it.

Discipline the Key to Forex Success

A forex trading system is easy to learn, executing trading signals through is strong of losses is hard even for experienced traders. If you think it’s easy try it and see.

The turtle experiment shows that trading success is open to all – regardless of educational background, age or sex. We all have a chance to succeed, what we make of that chance depends on our forex education and mindset.

More Info

You can read more about the experiment in Jack Schwagers excellent book Market Wizards and from one of the most successful “turtles” Curtis Faith in “The way of the turtle” where he outlines everything about the experiment and its application including the rules and the challenges the turtles faced.

Finally

The story of the turtles inspired me to trade over 20 years ago and I hope it inspires you as well.

By: Kelly Price