www.trading-naked.com mega for trader education.
http://www.forexisbiz.com/forumdisplay.php/8-Discuss-Manual-Trading
(the only one you gonna need for all the latest trading systems. free registration.. then just scrol half way down the page and all the threads are with systems attached to them.)
If there is one plaque you should put above your pc screen, it's this one. THERE ARE NO SECRETS IN TRADING, THERE ARE NO SECRET SYSTEMS. Don't ever buy one thinking you are the limited few getting it. Before the internet came along, information was limited to the privileged. Now the information to become a successful day trader is readily available on the web. The problem is that most people simply want some easy system to make a lot of money, so I guess the big secret of day trading is that this actually takes a lot of work. That is why more people fail; because most people are lazy.
The only people who try to pursuade you that day trading is easy are snake oil marketers trying to sell you some new propriatary trading system, indicator, trading robot, or £247 eBook full of drivel. I am sure you have over the years, like me, acquired the secret systems, only to be disappointed.These are also the same people who want you to believe that there is a such thing as day trading secrets. They are praying on the typical lazy humans who simply want to make a quick buck. The ironic thing, though, is that the only people making a buck are the people selling day trading secrets while those who are searching for them are simply wasting money.
There is no secret for trading system. Most Professional traders use the simplest of systems. In his book ‘Market Wizards’, Jack Schwager, (to read it click here) interviews numerous profitable traders in the United States. There is an interesting observation to be made about most of them. Often Schwager asked if they were to start trading again, what would they do differently. Many answered that they would not have wasted as much time initially on their entry signals and they would have rather spent that time concentrating and developing their risk management rules and working on their own mindset or psychology.
When trading does not go well for most traders though, they begin to wonder what part of their entry conditions is failing them. Thoughts like, is it the data they are using, the software, should they use different moving averages like weighted or exponential, or look at hourly data.What’s the difference between a professional and an amateur? Professional traders always control their emotion in every conditions. They believe that searching the Holy Grail is all about improved theirself. Rather than modified our system, we should learn about ourself. We can not control the market, but we can control ourself. The market has no rule. Then we should make the rules, trading rules. Trading is all about discipline and patience. You’ll make a lot of money from market if you can do that.
If you are still thinking there is magical trading system, you should avoid trading before you waste your time and money. There are many trading systems out there, free or paid system. Both of them should be suitable for your style. Trading style can be revealed as long as you keep learning. Do not use too many tools and indicators if you don’t want to be confused when analyzing the market.
Most of the times we have a good trading system but we usually destroy it because we want it to be perfect. Just follow your system and stick with it.
Successful traders have numerous personal traits in common. They are focussed, disciplined, passionate, and are totally committed to their trading. They are humble and always prepared to learn from their mistakes.
SO MY FRIENDS, LISTEN VERY CAREFULLY, The Holy Grail of trading has never existed and never will. Snake oil system sellers will always try to make us believe otherwise. Always be wary of sales pitch which contain the classic words such as, hidden secret, guaranteed no loss, anyone can make money with our secret even without any experience, incredible profits etc. etc.
now read the following word for word, i literally mean, word for word, and honestly ask your self, would you sell this for £66.00?
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"Something Fantastic"
happens every few days to the Dow Jones index.. that will
make you rich!
If you learn the one hidden secret
which is repeated for years, you will make an incredible profit!
Never lose Dow Jones index trade is all you need! You don't need to learn stock market trading at all!
Anyone can make money with our secret.. even without experience..
What if you knew a trading secret so simple, yet so powerful, that anyone could use to profit from the Stock market even without experience. All You need is to trade "Dow Jones Never Lose Trade" every few days. 50 -100 ticks daily can be yours! This is Guaranteed! There is no way to lose money! Forget Indicators and stock trading guides!
This Secret Will Completely Change Your Life! |
The System is 100% mechanical and doesn't need any tech indicators or other tech materials...it can be used by anyone... even beginners. Newbies will like the simplicity while experts will like the ease of use and amazing Dow Jones trading idea .... It is a complete plug and play system can be used by any people even without any experience of Stock indices trading! All You need is the idea and the exact plug-n-play trading algorithm.
Finally, these unbelievable trading secret are available to the public for the first
time ever. This method have the potential to completely change your life. 100% Mechanical system, which have been hidden for years, known to only a group of Wealthy Trading Elite! Join us know...
I guarantee once you read and apply for our method - you will never look back, and never want to use any other trading Stock market system!
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Now hold your horses, before you rush to buy this holy grail, please read the review, click here and you will see what i mean.
http://www.greattradingsystems.com/2010/02/dow-never-loss-trade-review/
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So trading is a good business but is it a suitable business for everybody?
To become a trader, first you have to learn it. It is not very hard to learn. There are enough free information over the internet. You just need to spend a few months to learn everything. But the more important part is the experience. You have to learn how to use your knowledge to trade and make money.
Trading is like driving a car. You can sit at home and read a lot of books about driving and know about it more than a driver who has a 30 years experience. But as long as you don’t practice and don’t drive, you will not become a driver. To be a good driver you also need to have a healthy body and mind otherwise you will make problems for yourself and the others. This is true about trading too. Not everybody who knows the techniques theoretically can be a good trader.
You have to have three things to become a good and successful trader:
1. Knowledge
2. Experience
3. Suitable mental and psychological condition
A professional trader is not someone who makes money with each and every trade. When he loses in a trade, he tries to find the reason. If you lose your money as soon as you start working with the real account you should ask yourself that “Do I have enough knowledge? Do I have enough experience? Am I mentally and psychologically ready to trade with my money?”
If you answered no to any of the above questions, you should not trade with the real account.
You can learn everything about trading through the internet. Internet is full of free and invaluable information about forex. There are also free videos that you can watch and learn a lot. They all talk about trends, patterns, indicators, candle sticks, fundamentals and … and you can learn all of them word by word.
Then you sign up for a demo account and start trading. Sometimes your first trades are very good and it deceives you that you have learned everything and now you can trade with real money but you don’t know that the market is like an ocean. Sometimes it is calm. Sometimes it is stormy and sometimes there is a Tsunami because of an earthquake. Someone who has experienced sailing when the ocean has been calm may think that he is a sailor but he is not aware that the storm is on the way and he is not experienced enough to face a real storm. He goes to ocean and becomes trapped by the storm.
Professional trader means someone who has built his confidence through enough practicing and repeating his success. Beginners should keep in their mind that a few successful trades with the demo account doesn’t mean that they are good traders and a few successful trades with the real account, doesn’t mean that they can increase the amount of the trades.
Beginners have to keep on trading with the demo at least for 3 months. The other thing is that they have to have a system. Trading with the demo account without an especial and well-described system is wasting of time. You have to know what kind of signals you should be waiting for before you buy and sell and you should know that you only buy and sell when you see the signals not when you think that you are seeing the signals. Like waiting behind the red light. You start moving only when you see the green light.
So you have to trade with the demo account at least for few months. You have to learn to get stuck to your system. You have to learn to control your emotions. You have to learn to control your fear and greed before you start working with real money.
Unfortunately some greedy brokers push the beginners to open real accounts. They are not smart enough to understand that they have to have long term traders not one day traders. Most beginners who lose their money, will never reload their accounts and so the brokers will lose them for good.
When you work with the demo account for few months, you feel a confidence in your heart. This confidence is not a false confidence because it is gained through practicing and experiencing. If you don’t feel a true confidence, keep on practicing with the demo account. It doesn’t matter for how long. One year or even two years. Nobody has determined a deadline for you. So don’t rush. The market is always there waiting for your money. IF you jump to a real account without running a demo, I PROMISE YOU THAT YOU WILL BE DEMO-lished.
Then open a real account but please note that after opening a real account, you are at the BEGINNING of a new stage. Yes! Working with the real account is different from the demo account.
Why? Are the signals, charts, indicators, currency pairs and … different?
Absolutely not. They are all the same but something that is different is that you know that you are playing with your real money. The money that you have been working to the bone to collect. You don’t like to lose it. You want to increase it.
What will happen then?
You trade with more fear and greed. You don’t close the trade that goes against you because you don’t want to lose. You wait for the price to change the direction but it won’t and finally you decide to close your trade when you have lost a lot.
Or you keep a good trade to make more profit. You ignore the reversal signals and so you lose all the profit you had in your hand.
Sounds familiar, doesn’t it?
So what should you do?
1. Start learning first and complete your knowledge. Learn everything that you should know about the trends, patterns, support, resistance, candle sticks, reversal and continuation signals and … . There are a lot of websites that have these information for free. You have to spend at least three months to learn all these things.
2. Decide that if you want to be a swing trader or an intraday trader. As a beginner you should choose one of them because you have to be focused on one thing first.
3. Choose a system (strategy). Your system should be as simple as possible. Complicated systems are not applicable. You can only lose with them. A System should be as easy as 1, 2, 3. Also choose a system that works according to technique and knowledge not according to superstitions. In an e-book I read about a strategy that says you should buy when you see the price has gone up for 80 pips before noon!!!
4. Start trading with the demo account using the system you have chosen. If you see that you don’t like your system or it is not good, change it. Find a better and simpler system. Get stuck to it and test it over and over and over. Spend several months to one year with the demo account. Do not be fooled by some of the forums members who say “I have started trading two months ago and now I make 100 pips everyday”. This is not true.
5. Forget that the account you are working with it is a demo account. Consider it as a real account. When you see you are losing, think that it is your REAL money that is burning. And when you see that you are making profit think that it is going to your real bank account. Keep in your mind that if you rush and trade emotionally you lose your money. This will help you to experience your fear and greed before trading with the real account. If you experience them, you will learn to control them. Don’t let them show themselves right when you start trading with your real money.
6. Then start working with a real account BUT trade with a very very small amount of money. I don’t care if you have a £500k account or a £100 account. Start trading with the minimum amount that you can place an order. Keep on working with this amount of money for a few weeks. If you saw that you are trading exactly like when you have been trading with the demo account, increase the amount of the money gradually. Do not play with a huge amount of money after a few successful trades.
7. Don’t give up! Don’t get disappointed when you lose. Everybody loses at the beginning. Even the best traders lose in some of their trades. Learn from your mistakes. Keep in your mind that losing is part of the game. We do not practice to learn not to lose. We practice to learn how to lose small amounts and win big amounts. Your stop loss will be triggered in some cases. This is natural. It should not prevent you from entering to another trade.
Most asked questions from newbies.
Eddy, help, I can't afford to buy all these expensive books on trading, charting and systems making?
You don't have to. Just click on this link, All the sytems and PDF books you will ever need. once on the site, then in the search bar type in, trading systems, or trading books. Choose the ones that catch your eye, and hit the " download now " button. it delivers a 400 page book in 20 seconds.. lovely jubly...
Before I put even a single penny on the line I like to test my strategy on a demo account. Demo trading helps me speed up my learning time many folds and it also acts as initial qualification of a strategy’s potential of success. I can then safely test the strategy.
Demo trading is the best way to make yourself familiar with the brokers platform. download their demo and press every single button and check all options. You can’t break anything in demo.
Demo trading helps me speed up my learning time many folds and it also acts as initial qualification of a strategy’s potential of success. I can then safely test the strategy.
Rule number one, risk. Yes risk you never ever risk more money on any one trade than makes sense. Of course we all have different levels of risk tolerance that goes without saying. But if every time you open a trade you have your whole bankroll riding on the trade how many times do you think you can be wrong before your trading days are over and you’re looking through the want ads again?
Which brings us to most asked question number two, losses. Yes everybody has losses, I do, you will even the most experienced trader on the planet will have losses. The sooner you accept that and move on the better off you will be. You can’t beat yourself up over having a couple of losses. Try not to look at them as losses, look at them as business expenses. They are just a part of doing business, nothing more nothing less. You could see a market that looks setup perfectly to make a move all the planets have aligned and sure enough you jump in and get your fill. Only to have the market turn the other way and take off like a Jack Rabbit, it happens far more often to us than most traders would like to admit. You can’t take losses personally you can’t try to trade your way out of them and you can’t control when they are going to happen. So just don’t beat yourself up, take your loss chalk up to a learning experience and move on. Sometimes there isn’t even anything to learn. You made the right move everything looked good, the market just turned. It will do that more than you care to think about.
Most asked question number 3, what’s the best system for trading? Well the best system for you is your system. Let that one sink in for a bit. There are as many systems out there as there are traders. They aren’t all perfect and what works for you might not work for me or anything else. The one thing I can tell you, there is no holy grail of systems. They all can be used by just about anyone; they just all need the personal touch of the user. A system working for a week or two or eight does not making it a winning system. All systems have their good and bad points; none of them seem to work in all markets. There is so much to choose from between systems and how to use them I think I’m going to make that a topic for an entire newsletter all by itself. The bottom line about systems is to do what works for you, learn what you like. Do you like swing trading, scalping, intra day…whatever you like there will be a system you can buy to get you started down the right path while you figure out all the nuts and bolts.
I hope this has giving you a little bit of insight into a long term successful trader’s mind.
Check back as I’ll post more once I have some time to put pen to paper a bit more. Take care and thanks for reading.
an amazing insight into the frame of Mind needed for day trading.
