DEMO ACCOUNT

I am always telling new traders to practice on their demo account until they become consistently profitable.

WHY?????

Because I have found that it is a way to program a success pattern in your mind. Your mind doesn't distinguish between a live and a demo account, however we do. Sometimes we allow emotions to interfere with the successful program that our mind is running once we get a live account.

We want trading to be so ingrained in us that it is almost instinct. Your demo gives you the opportunity to train your mind toward automatic success.

Your brain begins to recognize patterns of success as you practice on your live or demo account, it doesn't matter which one?.

As a trader, every time you enter the market, you take a risk.

YOU CAN NOT BE BE AFRAID OF RISK!

But you must make SMART, CALCULATED RISK in the market. Risk no more than 2% of your capital in a trade. 2% on the right side of the trade is more than enough to provide your with a very comfortable life style. 2% on the wrong side of the trade can also take you out. That is why smart calculated risk give you the biggest advantage in the market. When you don't over trade your account it gives you more control over your exit as opposed to being forced out of the trade by the market.

ENTER THE MARKET WHEN YOU CAN SEE A CLEAR ADVANTAGE!

Use your demo up, blow it up several times if that is what is necessary for you to gain an understanding of what is going on in the market.

Take your demo seriously. Practice your successes and it will help your mind begin to eliminate those habits that are counter productive to good trading. Practicing success in your demo translates into success in your live account.

YOU CAN DO THIS (^_^)

Get 10 Trading Lessons FREE
http://www.ino.com/info/447/CD4033/&dp=0&l=0&campaignid=6

RUNNING PRICE

Many times when price is running like a mad train on steroids, it is very unsettling because all of your emotions are screaming for you to jump aboard. The problem with that is many time that same train that seduced you aboard will often abandon you at the station leaving you wondering what happened??????

One of the most difficult temptation to resist in trading is the urge and beckoning to follow running price. Running price will often leave you stuck at the top or abandoned at the bottom. When your eyes see price running, all of your emotions are screaming for you to jump aboard. DON'T DO IT! Many times it is a trap that will leave you licking your wounds. When you get off of the ground all scraped up, you still aren't sure what happened because you were in harmony with your trend. Many times price will speed up just before the critical end of that run.



Now if you are aboard a trend and price starts on super steroids x 20 then you might want to begin looking for the nearest exit point. It doesn't always happen like that, but I have seen it often enough that I never jump into running price, even though my emotions are still screaming for me to.

While I am looking at price accelerate, I am thinking "look at all of that money you missed, and you knew it was going to keep going" or thoughts like "crap you should have gotten in, you missed your chance." My Friend the market will give you another chance!

I would rather miss out on an iffy trade for a sure one any day. When things settle and I can see a clear advantage then I can enter the market with logic instead of emotions....

Study Your charts and learn the price rhythm of your currency pair or pairs

YOU CAN DO THIS (^_^)

Get 10 Trading Lessons FREE
http://www.ino.com/info/447/CD4033/&dp=0&l=0&campaignid=6

LIKE FINE WINE

Like a fine wine the surety of a trend reversal gets better with time. The more a trend has aged, the more likely you are to get a valid reversal.

The older a trend gets the more ripe it is for falling off, and the more likely a new more robust trend will take over. A trend that is young and vigorous maybe side tracked briefly, but is not very likely to be defeated. The end of the uptrend says that the last of the big buyers are gone and the end of a down trend says that the last of the big sellers are gone and that trend has now become ripe for a take over.

Think of a trend like a young lion protecting his pride, another lion is not likely to usurp his authority. As he gets older, he is much more likely to lose his pride in defeat to a younger more energetic lion. The same is true with a trend as it gets older it becomes much more likely to be taken over. When considering whether or not to take a reversal (especially in the short term) gauge the age of the trend first. If the trend has just begin then you are not likely to have a legitimate reversal on your hand. If the trend is still very close to the trend line then it is not likely to be a valid reversal.

There are no absolutes in the market, but you do need to keep an eye out for things that put the odds the most in your favor.

YOU CAN DO THIS (^_^)

Get 10 Trading Lessons FREE

http://www.ino.com/info/447/CD4033/&dp=0&l=0&campaignid=6

FEAR

How many times have you let the perfect trade pass you by? The trade that was screaming for you to take it, but fear kept you from pulling the trigger; then once you saw what a 'fat trade' it turned out to be; you beat yourself up.

Most of us have heard that classic acronym for Fear:

F-False
E-Evidence
A-Appearing
R-Real

There are a million ways to be successful in this market, but most people defeat their own success with fear. Fear is that paralyzing emotion that happens when you feel certain that you should pull the trigger, but can't.

As a trader, Fear can be an almost constant companion.........
How do you tame this beast??? What can be done about this monster that creeps into your psyche and holds you hostage????????

If you find yourself victim to this dreadful enemy. Stop trading your real money and paper/demo trade for a while. Make note of every trade and write down what is working most of the time. When you miss it, write down what happened and what you can do to improve your odds. This will take the discipline that most people lack, but it can be a big help. Also feed yourself new messages about your ability to succeed in this market. Read about others who are doing it and how they are getting this done.

A solid education will also help tweak and perfect your skills. The Market is an arena that is always offering you an opportunity to sharpen your skills. Learn, Learn, Learn.

Practice pulling the trigger on trades that are showing you a clear advantage and practice letting them ride into glorious profit. "Remember the shorter your time frame, the shorter your profit run will be...........

You have got to talk to yourself about who you are, (ex: "I am a super forex trader, making more money in the market than I can spend.") Don't keep feeding that demon that's telling you 'this won't work for you'. The one that keeps telling you when you take a hit, 'you can't do this', or 'GOD helps everyone else but you', or any of that other nonsense......

I would say that your mental ability to play this game is even more essential to your success than your education. You can not be afraid of good smart calculated risk if you are going to win at this game.

You are looking for trades that stack the odds in your favor. Trades that are showing you a clear advantage. Trades that are begging you to come and partake of the sweetness.

Every time you enter the market you take a risk, but you want to find the lowest risk entry trades. There will be times that despite your best efforts, you will still miss it. So what, cut the legs off of that monster, save your capital and thrive to trade another day. The market is very generous and will give you the opportunity to make your loss back and so much more. If you took a hit yesterday, so what; that no longer exists. Today is a new trading day filled with new trading opportunities.

When I take a hit, I just wait for another good entry and usually I will get all of the money back that I lost in the hit and then some. THE MARKET IS VERY GENEROUS AND WILL GIVE YOU MANY OPPORTUNITIES FOR PROFITS.

1. Exceptional Trading requires discipline, patience, education, good money management and the ability to pull the trigger on a good entry in spite of any present fear.

Demo trade, Demo trade, Demo trade, and fill your head with good positive things about your ability and who you are as a trader until you are consistently profitable and until you can pull the trigger on trades with confidence.

YOU CAN DO THIS (^_^)

Get 10 Trading Lessons FREE

http://www.ino.com/info/447/CD4033/&dp=0&l=0&campaignid=6

WHAT ARE MARKET MAKERS

In the financial markets, we often hear the term Market Makers, but who are the Market Makers and what do they do????????????

Market Makers are the people who insure that your orders get filled, they keep the market liquid. If you want to move 3,000,000 shares of xyz and there is no buyer waiting for those shares; the Market Makers will buy those shares from you even if though there is no buyer on the other end of the transaction.

Won't the Market Maker go broke doing this???????????

No the Market Makers are Banks and very large financial institution that make their money off of the the difference between the Bid/Ask price which is referred to as the spread. The spread acts to offset the risk of their buying your xyz with no seller lined up in case something goes wrong. Though the spread is often very little, millions of transactions a day creates a very lucrative profit for the Market Maker.

The Market Maker makes money by buying your xzy at 25.5 and reselling it at 25.8. The Market Marker buys low and sells high or sell high and buy low. The Market Maker takes advantages of both the buy/sell, making money in both directions as the market goes up and as the market comes down.

Can a Maker Maker lose money??????????

Sure, if the Market Maker misjudges the market sentiment thinking that the market is going to go up when it comes down. If he bought your xyz at 25.5 and it falls to 13.3, the Market Maker is in trouble if unable to get rid of those shares before price plummets .

Market Makers also get rebates from ECN's (electronic communication networks) for each share that is sold to you at the bid price. On the other hand, the trader who buys the bid of an ECN (your trading platform) is charged a fee. The Market Maker will profit regardless of what kind of order you place whether buy/sell.

In short the market maker makes it possible for you to buy/sell whether there is an existing counterpart to your trade or not for a small fee as long as there is a bid/ask price available.


Get 10 Trading Lessons FREE
http://www.ino.com/info/447/CD4033/&dp=0&l=0&campaignid=6

YOU CAN DO THIS (^_^)

RESISTANCE, DROP

Resistance is a powerful word, but in the market it can mean the end of a long climb up the latter of a successful bullish run. Points of resistance aren't necessarily concrete, think of them more as a tightened rubber band that if you push into it to hard, it can send you plummeting very quickly.

Resistance is what it implies, a possible push against current price action. There are two correct responses you can have at a resistance, turn back (with a proper candlestick confirmation), or wait to see if the resistance is overcome, You never want to go head on into resistance because chances are you will get your butt handed to you. The other thing you don't want to do is automatically turn back without a little push. YOU DON'T ALWAYS WANT OR HAVE TO BE IN THE MARKET. There are times when you need to be on the sidelines in observation mode; at a point near resistance is one of those times. Trying to break resistance is like trying to run over a locomotive on a bicycle. You can't do it!! Your best option at resistance is to rest to see either the strength or weakness of your price action. Whether price is successful at demolishing or chipping away resistance or does a turnabout, wait until it makes a concrete decision before following. NOTE: wherever price leads, follow until you get a signal that it is no longer safe to do so, or until you have had your fill of a nice fat profit.



Let other traders jump in front of the locomotive to slow it down; DON'T YOU DO IT! Save yourself and wait until it is safe. Resistance points can either be safety zones put in place to help you protect your profits or the force and authority to crush you if you try to cross the line. When you come to a resistance point it means STOP!!!!, DO NOT PROCEED WITH CAUTION it is a RED LIGHT, when it is green, proceed with caution because there are times when price will break resistance only to fall back limp under the weight of the break through triumph.

This is not rocket science.

YES, YOU CAN DO THIS (^_^)

PRACTICE, DRILL, and REHEARSE ON YOUR DEMO!!!!!!!!!!!!
EDUCATION, EDUCATION, EDUCATION

Get 10 Trading Lessons FREE
http://www.ino.com/info/447/CD4033/&dp=0&l=0&campaignid=6

TAMING A HOSTILE MARKET

Every day you get up to face a hostile market where the odds are stacked against you.......

How do you Win in the face of such odds ??????????..........

You educate yourself, you practice, you practice and you practice more on your demo and never quit until all of the nonsense and backwardness of the market makes sense enough to where you are consistently profitable........

The Financial Markets are the Biggest most advanced Chess Game in the world, with some of the Richest and Savvy people on the planet as it's players.

When you are first introduced to the financial markets what you see is all of the money you can make quickly, and all of the luxuries attached to conquest.........

What you don't see is the education and hours of dedication and study that the Pros put into making this look effortless. It is by no means effortless, but is put on like a very well rehearsed play and in many instance the Actor before you has gone broke many times, but just never gave up, or the smarter Actors got a good education from the ones who went broke first.

If you find a Pro who is willing to spill her/his guts, learn everything that person has to teach even when it is repetitive, because there is a reason that teacher is stressing that point. Trading is simple with the right tools, foundation and education. You can not build a Major Highway with a hammer and nails, YOU MUST have the right tools to accomplish this. If you get a Bull Dozier, some Dump Trucks, some engineered plans etc......., then your chance of success is much greater than it would be with a hammer, nails and an idea.

With the vision, YOU MUST possess the RIGHT TOOLS. What is absolutely essential for your success is constant education and your charts are the best, most accurate teachers and they will shower you with a wealth of information if only you spend time with them listening to their wisdom........

A good start to success in the market is to understand Price action; what price has done in the past, what it is doing now and where it may be headed. You can begin this journey by picking up Steve Nison's Candlestick book at your local library, master your trend line, master your knowledge of support and resistance. If after mastering these great market jewels, you feel that you need more, then you can then add additional tools with confidence........

The market is like a treasure hunt and the one who has the best map will possess the Treasure.......Education, Education and Education!!!!!!!!!!!!

Education is the Highway out of poverty, and a MASTER KEY to success!!!!!!!!


YOU CAN DO THIS (^_^)

Get 10 Trading Lessons FREE
http://www.ino.com/info/447/CD4033/&dp=0&l=0&campaignid=6