August 1, 2020 |

How to Overcome the Fear in Trading

Last Updated on March 30, 2022

When we feel the concern that How to overcome the fear in trading, we would take fast steps to beat it, whether or not that leads to jumping out of, or into a trade. It’s important to not let the concern cause unhealthy behaviors, habits, or harmful cope mechanisms like habit. There are some brief details on it that might give you better idea to overcome the fear of trading. These suggestions or solutions may definitely help you to overcome the trading fear.Common varieties of concern seen in traders:

Fear of Losing cash
Concern of Missing Out Fear of property a Profit become a Loss
Fear of Being Wrong

How to overcome the fear in trading! Here square measure some solutions or suggestions:

1. Acknowledgement

The first factor once overcoming concern of commercialism is to acknowledge that it exists. Concern is simply one in every of the numerous emotions that any traditional person would possess. Instead, either because of ego or pride, several traders plan to place it aside, thinking that concern can escape miraculously. That’s one in every of the worst factor to try and do as a result of, by ignoring it, concern can hit you once you least expect it to come back and it’ll hit you arduous.

On the contrary, and as ironic because it sounds, acknowledgement additionally includes respecting concern. This can be vital as a result of once you begin to respect one thing, you naturally pay additional attention to that, you’re taking note of its type and form still as searching for however it works.

In a shell, you would like to consciously embrace concern and, in my view, the most effective start line to the current is to own a commercialism journal that records your emotions. You would like to jot down down once concern strikes you, why it strikes you and the way it strikes you.

When you have done it usually enough, then you’ll understand once to expect concern once it next emerges.

2. Stop Making an Attempt to Win

The aim of most traders is long run gain. However, some commercialism colleges fail to emphasize the numerous profitable commercialism systems lose additional then they win. Yes, believe it or not, several systematically profitable systems have additional losing trades than winning ones albeit they’re profitable. With that, I powerfully encourage traders to prevent making an attempt thus terribly arduous to win all the time.

As shortly as you stop making an attempt to win, the expectation of winning subsides and once there’s nothing to expect from the trade, there’s nothing to concern.

Do you see the consequence of making an attempt to win?
Instead of that specialize in winning or losing, I feel it’s additional vital to aim to trade your system cleanly i.e. attempt to excellent your commercialism edge. This leads Maine to my next topic.

3. Perfecting Your Commercialism Edge

Making each effort to excellent your commercialism edge could be a great way to scale back or eliminate concern.

In my view, this can be somewhat like the automotive trade. In theory, driving a automotive could be a high risk and life threatening activity. However, as folks have place their trust within the automotive makers, they begin to relax and to fancy the automotive because it is. A part of the rationale that trust exist is as a result of automotive makers perpetually upgrade and incessantly excellent their technology. This offers assurance to the users that each effort has been created to create the automotive safe.

Likewise, if you create each effort to boost, defend and excellent your commercialism edge, the amount of trust you’ve got can still increase. This implies your level of concern can decrease, forward you execute your commercialism edge consequently. And hence you can beat the fear of losing in trading as well.

4. Target the Currently

Believe it or not, very often, concern is triggered by voices that we have a tendency to hear in our mind. These voices sometimes return from our psyche and that they haven’t any factual proof to support them. Our psyche is extremely vulnerable to data generated from our acutely aware mind and, hence, it’s vital to figure our acutely aware mind. Typically, i’d counsel feeding it with positivism, however, during this context a higher plan is to target the currently.

By that, I mean to target what you would like to try and do currently to create ensuing trade an honest one. That specialize in actions helps avoid (but not eliminate) negative pictures on our mind. The secret is extremely being focus, rely on what you would like to try and do currently, select it and simply doing it. There’s no purpose watching your past commercialism results or considering the longer term (since you’ve got no plan what is going on to happen within the future). Hence, swing all of your energy and creating ensuing trade excellent could be a great way to eliminate concern and you can easily overcome the fear in trading.

Photo by Aarón Blanco Tejedor on Unsplash

Top 5 Forex Books You’ll Have to Read

Author: Eduardo Montero

Last Updated on March 30, 2022

The forex market is the biggest with the most liquid across the globe. As this is an international market, the average value traded often goes over $1 trillion per day. Since this is the foreign exchange, all currencies are also welcome, which can be incredibly scary to a new trader. Many people have wondered how do you become successful in such a booming worldwide market, and some experts have stepped up to lend their advice. These authors detail all kinds of strategies, maneuvers, tactics and mental skills needed to overcome challenges in the forex market. These are also seasoned traders who have worked with the forex market for many years. Whether you’re a beginner or just want to perfect your own forex strategies, these are some amazing reads that will truly inspire you to make successful trades.

1. Trading in the Zone by Mark Douglas
Mark Douglas is a well-known name in trading literary works. His book The Disciplined Trader was released in 1990 and got people talking about trading psychology. It’s still considered a classic to stock trading theory. Some people call Trading in the Zone the “Bible of Trading.” The book’s theories and explanations can apply to almost any market, but it seems particularly fond of forex. As a trader, this book will change the way that you look at foreign markets and currency trading. While the forex can be particularly risky, Douglas goes into a variety of ways to be inspired by that fear and make smart choices for success.

Douglas really focuses on the mental strategies behind doing well in trading including trending and non-trending techniques, mental strategies, trading dos and don’ts and much more. Through his guides, the reader is able to see how to get an edge on the market and utilize his theories to train the mind towards trading goals.

The book goes into why there is a lack of consistency in the market and also advises traders on how to overcome instinctual habits that may cost them more money when trading. There are also several exposed myths, which are very useful for today’s forex traders.

2. Jesse Livermore: World’s Greatest Stock Trader by Richard Smitten

Jesse Livermore is often regarded as one of the most legendary stock traders. The stock market hero was known for winning and losing millions of dollars during the stock market crash through short selling in the early 1900s. Even with his multi-million dollar losses, he continues to be one of the most talked about figures in modern stock trading theory schools. This book details the experiences and techniques of Livermore in a way that stock traders can truly appreciate.

Smitten starts off explaining about Livermore’s upbringing and how he ran away at the age of 14 with just $5 on his person. Livermore continues to be one of the most talked about stock traders in history. His tactics and short-selling skills during the American stock market crashes actually revolutionized Wall Street. This book details Livermore’s trading system and goes into the steps that Livermore took to secure his trades in the early 1900s.

The World’s Greatest Stock Trader also goes through valuable lessons and advice gained through Livermore’s trading skills that can apply to almost any market but especially foreign exchange. It will help you learn more about currency trading and recognizing significant opportunities across all markets. If you are inspired by Jesse Livermore, there is also Reminiscences of a Stock Operator by Edwin Lefevre, which focuses more on the legendary stock trader’s life.

3. Currency Trading for Dummies by Mark Galant and Brian Dolan
For beginners in forex trading, Currency Trading for Dummies is a must read. While it’s not specifically written about the foreign exchange market, the advice on market changes, currency charts and finishing trades is invaluable if you are a new trader. Galant really covers the basics and offers sound advice to trading on the forex market.

The book goes through how to spot the best trading opportunities, thoroughly comprehend what sparks market changes, pick the best brokers, complete successful trades, minimize risk, maximize profits and develop an in-depth analysis of currency charts.

Traders learn how to understand the tendencies of different currencies, how to look for the right times and reports, how to manage trades and a lot of other basics. If you’re just starting out on forex market trading, the tips and practical basics in Currency Trading for Dummies will really change how to perceive this global market. In addition you’ll learn the ins and outs of the most popular FX trading techniques.

4. The FX Bootcamp Guide to Strategic and Tactical Forex Trading by Wayne McDowell
Wayne McDowell is the Chief Currency Coach at FX Bootcamp and one of the seasoned traders of today’s Wall Street. This guide is entirely about how to trade successfully again and again on the forex market, which makes it an incredibly valuable tool for anyone who doesn’t have that much experience with the foreign exchange.

McDowell shows readers how you can combine technical indicators with guaranteed market strategies. This helps to create a “tactical trading plan,” which allows traders to easily maneuver in and out of a trade. McDowell gives specific advice on when to pull the trigger on certain trades and how to hold off on others that may just be above your head. The advice covers both technical and fundamental aspects that every prominent forex trader needs to be a success.

McDowell also talks about all of the different challenges that traders face in the forex market and how to overcome those difficulties. Some of those challenges are re-learning old mental habits so that you’re not held back from taking risks. In addition, traders learn how to handle the emotions and predicaments that come with trading on the foreign exchange. There is a lot of loss and isolation that traders often don’t know how to go through.

5. Forex Patterns and Probabilities: Trading Strategies for Trending and Range-Bound Markets by Ed Ponsi
The forex market is particularly vast and daunting for most traders. There are so many variables, and if you’re not careful, you may find yourself on a trading ledge. Ed Ponsi gives you some incredible advice on how to capture huge profits with forex while also avoiding those mistakes that lead so many traders to despair. This book is definitely for those with a little bit more experience in forex trading. After you’ve read some of the others on this list, you’ll definitely find more clarity and even hone your strategies.

Ponsi developed his approach after years of trading on today’s forex market. However unlike some beginner guides and general trading theory books, Ponsi goes in-depth with Forex Patterns and Probabilities to really help traders understand the mechanics of currency trading as it is today.

The book is divided into four detailed parts that go over how to understand the playing field of forex markets, analyzes specific trading strategies including FX-Ed trend techniques, develop an insider’s view of behavioral patterns of prominent forex traders and explains non-trending trading techniques like the volatile “squeeze play.” It’s a definite must read for anyone who already has an understanding of forex markets but wants to know more.
Some other good reads for forex traders include Face the Trader Within by Chris Lori, Warrior Trading by Clifford Bennett, The Secret of Candlestick Charting by Louise Bedford, Nison Candlesticks – Japanese Candlestick Charting Techniques and Beyond Candlesticks by Steve Nison, Encyclopedia of Chart Patterns by Thomas N. Bulkowski and How to Trade a Currency Fund by Jarratt-Davis.

While there are plenty more books on forex trading, these are a great start for any trader just beginning their journey into the foreign exchange market. Each book goes into great detail about the nuances of forex trading that separates it from Wall Street. You learn about different currencies and how to spot anomalies that are worth the risk. These books also give traders lessons on how to train your mind to understand forex. These tips allow traders to push themselves farther while also making sound decisions. The advice from seasoned experts in forex trading can greatly impact even those with some experience in forex trading. With these books as tools and guides, you’ll be able to make some incredible investments and hopefully avoid the most common mistakes of beginners on the forex.

Do You Have What It Takes To Become A Day Trader?

Author: Eduardo Montero

Last Updated on March 30, 2022

To become a day trader, you need to have certain qualities. In day trading, positions are opened and closed within the same day. This helps define the type of personality that tends to be drawn to day trading.

You don’t mind being at your computer the whole day, or if you’re part time, for the time you have allocated to trade. If you have a demanding job, or a lot of family or other commitments, day trading may not be a good fit for you.

You want/need to keep an eye on the trade and monitor it whilst it’s open. Because a day trader opens and closes positions in the same day, they aren’t going to be affected by things that are happening whilst the market is closed, or they are asleep, or involved in social activities.

Day traders are in many ways more impatient than other traders, though they do need to have some patience to be successful. A good day trader needs to be patient enough to wait for a trade to come along that fits their strategy. They need enough self-control that trades aren’t entered out of boredom, or the need to ‘do’ something – even if it means waiting for hours.

Day traders tend to feel the need to be doing something all the time, hence they don’t mind watching the stock market for a good trade whilst that session is open. Those that compulsively micro-manage things might be drawn to day trading.

A good day trader needs the ability to take decisive action when conditions are identified that meet their trading criteria. This is partly related to confidence in your own judgment, as well as how you handle a sense of risk psychologically. Leaving it too long to enter a trade by waiting until a stock moves into profit can mean the window of entry that would make it a good (profitable) trade, is missed. This is a mistake that beginners can make, and could be a function of needing to learn more, or simply a lack of experience leading to a lack of confidence. Certainly, if you prefer someone to take you by the hand, joining a service that recommends stocks might be a good idea.

The flip side to the above is about not making rash decisions. A good day trader does not approach trading like a gambler would. Day traders mostly use technical analysis, which follows price movements in the stock market, to determine whether to make a trade. Most people who become a day trader are risk averse, so this may not be a problem. Day traders tend to use small stop losses to limit the possible amount lost per trade.

Best Pairs to Trade as a Beginner

Author: Eduardo Montero

Last Updated on March 30, 2022

WHAT ARE THE CURRENCY PAIRS EVERY BEGINNER SHOULD TRADE?

There are a multitude of currency pairs available to Forex traders. Unfortunately, many beginners make the mistake of choosing the wrong ones when venturing into the market for the first time. If you are a Forex beginner, it is much easier to start off by trading the major currency pairs, such as the EUR/USD, USD/JPY, and the GBP/USD, rather than the myriad of minor currency pairs that are available. Here are several reasons why these are often considered the best currency pairs to trade, especially for Forex novices:

– The currency cross pairs are the most widely traded pairs, which makes them extremely liquid with the volatility needed to conduct profitable trades every day.

– They have extremely tight spreads. For instance, most brokers only have a one or two pip spread for the EUR/USD. However, most Forex brokers place a higher spread for the GBP/USD, due to the much higher volatility of this currency pair.

– All of these currency pairs involve the USD and are actively traded during the New York session, which takes place from 8:00 am to 4:00 pm EST. This is the most active trading session and regularly has the highest volume of trades.

– There are numerous trading systems that have been developed specifically for trading these pairs. Many of these trading strategies and systems can be found online for free.

Now that you know what the best currency pairs are for beginner traders, next it is necessary to know which ones should be avoided. Every serious trader agrees that trading exotic currency pairs requires advanced knowledge of the market. Novice traders should only focus on trading the following list of major currencies and avoid any others until they have proven that they can trade these profitably:

US Dollar (USD)
Euro (EUR)
Japanese Yen (JPY)
British Pound (GBP)
Australian Dollar (AUD)
Swiss Franc (CHF)
Canadian Dollar (CAD)

It is important to note that only pairs containing two of these currencies should be traded by novice traders. If one of these currencies is paired with an exotic currency, then it should not be traded.

It is also important for novice traders to avoid trading currency pairs that have high spreads. Typically, the major currency pairs listed above have much lower spreads than exotic pairs. Most of the time, currency pairs with high spreads are much more volatile, causing price spikes and wide price changes that are difficult for beginner traders to execute profitable trades. Although spreads vary by broker, the spreads employed by a broker can easily be found on their website or on their online trading platform. Most traders typically just subtract the Bid price form the Ask price, both of which can be found on the Bid/Ask table.

All too often, beginner traders make the mistake of trying to monitor and trade too many currency pairs at one time. In addition to making trading complicated and difficult to handle, this also makes it difficult to gain in-depth knowledge of each currency pair and learn the unique behavior of each.

Every currency pair moves in a unique way, forms trends, and reacts to political and economic events. Therefore, it is necessary for novice traders to study one currency pair at a time so that they can observe its behaviour and learn the most effective way of trading the pair.

THE MACD AND MOVING AVERAGE METHOD FOR TRADING THE EUR/USD

The EUR/USD is well-known as a trending currency pair, especially during the morning hours of the New York session, making it perfect for implementing this short-term trading strategy utilizing the 15-minute chart.

This proven strategy requires the use of the following technical indicators:

Two-period exponential moving average
Five-period exponential moving average
Ten-period exponential moving average
MACD

Some traders prefer to use a custom MACD indicator that features bars that change colour when a change in price direction occurs. However, this is not necessary, because a standard MACD makes these changes quite clear and can allow traders to spot the change in time to prevent a lag.

Long Entry Rules:

When going long on a trade, you simply need to identify the point in which the two-period EMA begins to cross over the long-term EMA’s. A buy order should be executed when the two-period EMA crosses above the five-period EMA, and also when both the two and five-period EMA’s cross upward over the ten-period EMA. The bars of the MACD indicator should also change from a downward position to an upward position at the same time as the EMA crossovers.

There are no predefined rules that govern the use of profit targets or a stop loss as these can be executed at your discretion. However, since this system is designed to be implemented on a 15-minute chart, the trade outlook is very short. Therefore, it is recommended that profit targets be set to no greater than 30 pips, and stop losses should be set around 15 pips for a risk/reward ratio of one to two.

Short Entry Rules:

When using this strategy for a short trade, the two-period EMA should cross downward over the five and ten-period EMA’s. Similar to a long entry, both the two-period and five-period EMA should also cross below the ten-period EMA. The bars of the MACD indicator should also go from an upward position to a downward position. This transition usually occurs gradually, giving you plenty of time to spot the impending price change and prepare for a trade.

Similar to a long entry, profit targets should be set for no more than 30 pips, and stops losses should also be placed around 15 pips. However, rather than setting a profit target, trailing stops can also be used to lock in profits and ride the trends that are commonplace with the EUR/USD.

CONCLUSION

When venturing into the Forex market for the first time, it is important to trade one of the major currency pairs, such as the EUR/USD. Pairs such as this have greater liquidity and provide plenty of safe trading opportunities. By utilizing the multiple EMA crossover and MACD system, you will be able to easily identify trade set ups on the EUR/USD and execute profitable, short-term trades. When used to trade the EUR/USD, this system has proven to be profitable for beginner traders time and time again.

As you know, the spread of a particular currency pair can greatly affect your potential profits. Since each broker offers different spreads, it is imperative to find a broker that offers the lowest spreads possible for each of the major currency pairs. Get your trading off to the best start possible by finding the right broker and utilising this EUR/USD trading system today.

Generating profit through Forex Day trading

Author: Eduardo Montero

Last Updated on March 30, 2022

Forex day trading is another great technique in generating profit from investment, which refers to one day trading. In this way, all transactions are traded from one currency to another in one day. This approach is really fast and easy to make money in just a single day. People who are engaged in this day trading are earning a lot of money and they hold the top positions in currency trading market. Therefore, they can afford to invest more and earn more money. With these traders, people can get good amount of money by selling their currency.

Forex day trading is based upon an easy concept and that is “with money, more money can be earned”. To be an effective trader, it is important that the individual is familiar with all kinds of tricks and techniques used in the market. It is way different from other usual long term investments. In a regular trading, investors look at the trading history and other factors; all in all take time to make right decisions, however, in forex day trading, decisions are made instantly and even in minutes.

Forex day trading is viewed as dangerous approach to some people. Although risks are accompanied with such trading approach, but, if proper decisions can be taken, it is also a wonderful opportunity to be utilized and make great money. In fact, the regular investor spends 60 or 90 minutes every day and makes the final decision after long overview and analysis of the market and after all these effort the regular investor makes as much money as the forex day trader. Considering the amount of time and effort spent on it, forex trading is the better one to choose. However, some bad sides are also there in forex day trading. An inexperienced investor who does not have necessary skills, are going to be at the risk of losing the invested money. Apart from that, even the experienced one can get frustrated spending the day in trading and ending up with a zero return. Thus, after analyzing all aspects, potential investors should make right approach.

How To Choose the Right Forex Trading Software

Author: Eduardo Montero

Last Updated on March 30, 2022

Forex trading software is becoming more popular among traders as time goes by. One reason for this is the software’s ability to continue working even if you are not. There are several forex software programs available but it is important to choose the one that is right for you.
There are three important things to remember when choosing the right forex software for your trading needs. These three things include:

Good Security Measures
Proper Customer Support
Easy to Understand and Operate

These are the three most important things to remember when trying to determine which forex software you want to use.

Security

When choosing forex trading software it is important to pick one that uses good safety measures. This should be one of the first things you consider when making the decision of which one to use.

Customer Support

This is also a very important aspect of a good forex trading software program. This is especially important for beginners as you are most likely going to have lots of questions until you learn your way around the market and gain a little experience. For this reason it is important to choose software that has unlimited and constant customer support to answer those questions.

Easy to Understand

It is equally important to use software that is easy to understand and operate. Because most people are just learning this market it is going to be pointless to spend money on a good forex trading software program if it is too complicated for you to use and understand. If you don’t understand what is going on you will lose money quickly and in large amounts.
Although there are many forex software programs available it is important to know which ones are the most effective as well as the easiest to understand and operate. One such software program is Forex Tracer.

Forex Tracer has the ability to continue trading by automation making it effective even when you can’t be right there to monitor ever move that is made. This makes it easy to continually earn money and further increase your profits over manual trading alone.

It is recommended that you use the program on a trial basis for a few days before making a purchase to ensure that you understand how it works and that it is the right program for your trading needs. This goes a long way in determining your success rate.