HOW TO GET GOOD AT FOREX

Many people are wondering how to get good at forex. Forex is very easy, the discipline to do what you need to do in forex when you need to do it is what is hard. I always talk about discipline in forex, today I want to talk about how You get good at forex.

The first thing I want to suggest is to STUDY!

Study and learn your candlesticks/bars, it doesn't matter which one, although your candlesticks provide more of a visual signal than your bars. This is the language of your charts, learn it well! Get to know the language of the charts like you get to know a lover. You can not be successful in forex without a deep understanding of chart language. Both the internet and your library provide some valuable inexpensive material on your candlesticks and bars. I picked up Steve Nison's Candlestick books at my local library.

You have to learn to be a chameleon. You have to have the ability to switch sometimes very quickly as price may change from it's course and choose a new course. Forget the "Trend is Your Friend", "You need to be the Friend of the Trend", when it changes, You'd better change too!!!!!

You must be confident.

You need to observe price movement and study past charts.

You have to take baby steps and keep going forward. Trade tiny amounts first; get your feet wet before jumping in the pool.

Open one position at a time until You are proficient and disciplined enough to handle more.

You have to be able to WAIT (for a proper trade set-up)

You have to be in the market, even if it is with a penny. You have to trade so that you can learn to deal effectively with your emotions.

You must learn to control your fear, and take risk on good trade set-ups.

You have to believe that you can trade successfully, I have made every mistake in forex that can be made, more times than I dare to think. I am no smarter than You. I have probably just gotten my butt kicked a lot more.....lol (^_^).

My success has come through GOD's grace and persistence on my part. A Trader is much like a Doctor or Lawyer. We are Practitioners always perfecting our craft.

The 5 things that are going to make You successful in forex are these
knowledge
discipline
patience
consistency
faith

YOU CAN DO THIS (^_^)


Learn the language of Your charts
Wait for a proper trade set-up
Cut bad trades quickly, then wait to see where the market is going and follow profit once the trend has revealed itself
NEVER LET THEM TRAP YOU! it is better to be tricked than to be broke

YOU CAN DO THIS (^_^)!

IF YOU FOLLOW GOOD TRADING RULES!

If You follow good trading rules, You will come out ahead. The problem is Traders want instant gratification.

If You are 70 pips in the plus and You get stopped out, cut that bad trade. What we forget is that if we take a 15pip hit then we are still ahead by 55pips.

As a Traders, You will lose some battles. SO WHAT?!!!! The important question at the end of the day is; have You won the War! You must win the war here in order to succeed, and that is going to involve learning to cut trades that are eating away at Your hard earned capital.

As Traders if we play all day and come out ahead by 8 pips, all we focus on is the 30 pips we lost
WRONG!!!!!!!
Mourning the loss puts Your focus on what is wrong instead of what is right, which puts You at a huge handicap the next time You are up to play.
There are 2 things that I believe will help Your game...........

#1 Congratulate Yourself on a good day's play and the fact that You came out ahead!...

#2 Lastly never beat Yourself up for a bad trade, review Your missteps and see how You could have played better. After analyzing it, use the lesson to improve Your game.



Many traders will make 30 pips and see another good entry that ends up going against them and many times will give the market back that gain because they don't want to lose any money.

If You don't have the discipline to cut a loss, then You don't need to play this game! All You do when You hold a bad trade is make rich fat cats out of those who spend their lives tricking traders.

Listen to me, if You play by good, sound, solid rules then You will mostly come out ahead. You can take up to 4 hits a day and still come out ahead as long as You follow good sound rules with discipline.

http://tradersbud.blogspot.com/2009/10/discipline.html

Keep Your losses small and stick with Your trade until Your rules say cut it. Don't forget that the best traps look like legitimate trade set-ups; that's how they get us.

They lead us into traps deliberately, but it is up to us to spring these traps and free ourselves to follow profit. They only trick us to get us out of the way so that they can enjoy the real price move without our interference.

Too many of us will lose several hundred pips because we refuse to take another loss, when the simple, but not easy truth is: when We realize that price has gone against Us, We can cut that bad trade and make great money following profit, instead of rationalizing why that bad trade has to work out!

Many of Us will go so far as to call Our bad trading bad luck, but the truth is, it is bad trading that comes from a lack of a good set-up, a lack of discipline or refusal to follow good trading rules in the face of a loss.

No GOD is not punishing You, You are as smart as the next girl/ guy doing this, they have just learned the level of discipline that it takes to be successful and YOU CAN TOO!

Listen, I hate a loss worst than anybody and have lost more money than I have gained because of it. What I am discovering is that with patience and discipline, I can take much more from the market than I ever give!

Following good rules all of the time will put You in the winners circle and keep You there! It is possible and it is possible for Y-O-U!

You can absolutely do this. You can be successful at forex, with patience, discipline and a good trade set-up!

YOU CAN DO THIS (^_^)

4RunnerForex.com Affiliate Program

YOU CAN'T AFFORD NOT TO

When most Traders are facing the possibility of taking a loss, they tell themselves that they can not afford to take that loss, I am saying, You can't afford not to take it. A running loss is like a poison that sucks the life out of our accounts until it is dry. The biggest gift that I would give to all trader if I could is how to take a loss and follow profit. I know that I am always taking about this, but it is the #1 thing that cause Traders heartache and financial ruin.

If You are giving Yourself pep talks about bad trades, like "It will come back" then You are already in trouble. I have learned to set my stop losses tightly; You may not be comfortable with that, but whatever Your stop loss is, You must honor it and not move it if price is approaching it. If You are stopped out, it means that Your opinion of the market's direction was wrong and the market did not do what You thought it would do.

So what, it is no big deal. I take losses and believe me it sucks, but the truth is, once You let the bad trade go, You are better prepared with more capital for the good trade. If You trade a good set-up, then You are eventually going to find the right trade, but it is an art that requires discipline. It is all timing, discipline and set-up my Friend.

Trading is not hard, every day the market does 3 things, moves up, moves down, moves sideways, that's all. We make this a hard process by holding on to bad trades. LET BAD TRADES GO AND NEVER LET THEM TRAP YOU!!!!!!!!!!!!

LET BAD TRADES GO, AND DON'T STOP UNTIL YOU ARE AHEAD OF THE GAME. YOU WILL NOT GET EVERY TRADE RIGHT, SO WHAT, SUCK IT UP AND MOVE ON. EITHER PLAY WITH DISCIPLINE OR DON'T PLAY! IF YOU LACK THE DISCIPLINE TO PLAY PROPERLY, YOU WILL ONLY BE ENRICHING YOUR OPPONENT WITH YOUR HARD EARNED MONEY. EVERYDAY SOMEONE HAS TO WIN THIS GAME AND AT THE END OF THE DAY I WANT THAT SOMEONE TO BE ME AND YOU SHOULD WANT THAT SOMEONE TO BE YOU. I CAN'T WIN ALL OF THE TIME, BUT I CAN SCORE BIG WHEN I DO WIN!!!

A loss is like putting a rattle snake in your pocket, it will eventually kill You!

YOU CAN DO THIS (^_^)!

BASKETBALL AND FOREX

We can learn a lot about how we should strategize in forex from basketball. In basketball if a player misses a shot, the team doesn't sit down, close their eyes and ears, while the other team is still playing; hoping that the game is going to come back in their favor. If a coach told you that was his strategy, you'd say that was ludicrous. Yet in forex a trader will put in a bad trade, turn off the computer, leaving the mistake to grow bigger, hoping that things will come back in his/her favor.

Good trading doesn't work like that, you have to practice good defense, you have to protect yourself!!

Everyday in forex you have an opponent and you must use your defense if you are going to be consistently profitable.

In basketball if your point guard has an injury that is keeping him from scoring, you cut that player and use the back-up point guard. In forex You must do the same thing. When your primary plan fails, you MUST cut that position and use a back-up plan..

Many times as traders we take a hit and quit. If you have a good strategy, you can keep playing until you are ahead of the game.

Two things you must remember to get into the big leagues. #1 CUT BAD TRADES QUICKLY #2 DON'T OVER-TRADE YOUR ACCOUNT. When I say don't over-trade, I mean if you have $1000.00 account don't trade a half of a lot.

If you have a $100.00 account and you trade 1 micro lot (.10) you can grow that by $5.00/day. Everyday that You reach your goal you can add 2 more pennies, which will give you an extra dollar everyday on 50pips. At that end of the 1st week, you will have $35.00, $75.00 the 2nd, and if you stop at that (.30), you can make an additional $150.00 for the month, for a total of $260.00 the 1st month; which is more than double what you started out with. The 2nd month you'd have $300.00, that is an additional $3560.00 for the year if you add .02/day to .10 and stopped at .30 and stayed there the rest of the trading year.

Remember forex is a get rich slow game, so don't over-trade your account.

Use discipline with a good strategy. Most importantly CUT BAD TRADES QUICKLY, because the best strategy in the world is no match for a free running loss!

NEVER LET THEM TRAP YOU!!!!!!!!!!!!!!!!!!

CUT BAD TRADES QUICKLY!!!!!!!!!!!!!!!!!



If you take a hit, don't sit down and quit hoping the other team is going to have mercy and let you win. They are your opponent, they are not your babysitters, they are out to beat you. You have to stay in the game, practice good defense, and protect yourself if you are going to come out ahead!!!!!

You can do this(^_^)!!!

CONTROLLING RISK

One of the most important things You can do as a trader is to control your risk. In other words pre-set a point that You have determined that You could possibly be wrong.



Remember, trading isn't hard, it is just tricky because everyday the market does the same thing, it moves up and down and sideways and gets choppy. It not only does this every day, but every week, every month and every year. Your job is to determine the primary direction of the market's movement and try to profit from that knowledge.



Sounds easy, but there are hidden traps in the market to snag You, and keep things interesting. Market Makers are always trying to to trick You before taking price strongly against You. They are attempting to trap You in a losing position. This happens everyday in the market, and it WILL eventually happen to You too.



You advantage is in keeping your losses small. Have a predetermined amount of pips the You are willing to lose. Once You have determined that amount, 'say 20 pips or so on a short term trade, MAKE NO EXCEPTIONS!!!!!!!



A FREE RUNNING LOSS can be a major game changer!



It should not take a -200 pips in short term trading before You realize that You have loss Your advantage. If You are telling yourself "Ah it will come back", chances are very good that You are already in trouble!



Being a pro traders does mean that you never take losses, being a Pro Trader means that You never let losses take You out of the game!!!



NEVER LET THEM TRAP YOU!!!!!!!







If You are telling yourself "Ah it will come back", chances are very good that You are already in trouble!



CUT BAD TRADES QUICKLY AND GO IN THE DIRECTION OF PROFIT!!!!!

YOU CAN DO THIS (^_^)!

SEASONS

This was an amazing gift from a Friend this morning and I had to share it:

There was a man who had four sons. He wanted his sons to learn not to judge things too quickly. So he sent them each on a quest, in turn, to go and look at a pear tree that was a great distance away.

The first son went in the winter, the second in the spring, the third in summer, and the youngest son in the fall.

When they had all gone and come back, he called them together to describe what they had seen.

The first son said that the tree was ugly, bent, and twisted. The second son said no it was covered with green buds and full of promise.

The third son disagreed; he said it was laden with blossoms that smelled so sweet and looked so beautiful, it was the most graceful thing he had ever seen.

The last son disagreed with all of them; he said it was ripe and drooping with fruit, full of life and fulfillment.

The man then explained to his sons that they were all right, because they had each seen but only one season in the tree's life.

He told them that you cannot judge a tree, or a person, by only one season, and that the essence of who they are and the pleasure, joy, and love that come from that life can only be measured at the end, when all the seasons are up.

If you give up when it's winter, you will miss the promise of your spring, the beauty of your summer, fulfillment of your fall.

Moral :

Don't let the pain of one season destroy the joy of all the rest. Don't judge life by one difficult season. Persevere through the difficult patches and better times are sure to come some time or later.



Thanks Jonathan, it was a much needed lesson for life (^_^)

YOU CAN DO THIS (^_^)

A LOSS IS LIKE A RATTLE SNAKE

A loss is like a rattle snake, DROP IT BEFORE IT KILLS YOU!!!!!!!

As of late, I have been getting emails from traders who have blown up their accounts. Believe me, I know first hand the pain, desperation and frustration that comes with that experience as I have had it many times. The first time I blew up an account I had to get two jobs 7 days a week to almost cover my bills and I was still struggling.

No matter how many accounts I have blown up, I have always managed to do it the same way every time 'holding on to a loss' that grew up to kill me because I refused to let it go, hoping and praying that the market would come back in my favor.

When I would read other traders info that said cut losses, I thought they were being negative and trying to make me lose my money. Had I listened to that wisdom, it would have saved me many heart-aches.

Let's deal with some hard facts about trading:

#1 YOU ARE GOING TO LOSE MONEY HERE!

This is a big girl's game, if You are afraid to lose money, You should be doing something else with your life, it will be much more profitable.

#2 THE MARKET IS VERY VERY GENEROUS AND WILL ALWAYS GIVE YOU OPPORTUNITIES TO MAKE MONEY!!!!!!

-CUT BAD TRADES QUICKLY AND GO IN THE DIRECTION OF PROFIT!!!!!!

Most of us got into forex with the idea that this is easy money, ignoring everything that told us that 95% of all 1st time traders go broke in the market. We ignored it because we decided that we would be part of the 5% who beat the odds. If You are like I was, You read every book You could get your hand on, every website and attended every webinar to make sure You were part of the 5% who were successful here.

FOREX IS NOT HARD. FOREX IS TRICKY AND WITH THE RIGHT EDUCATION AND DISCIPLINE ANYONE CAN DO IT (^_^)

What we fail to realize is that forex is like any other profession, it take most of us a while to be successful here.

NO ONE WHO IS TRULY GREAT DID IT OVERNIGHT, it took continuous education, practice, discipline and sometimes a little blood, sweat, and tears.

I don't care how brilliant a surgeon is, You don't want him to cut on you without PROPER TRAINING & PRACTICE. Notice how many high powered professions are always practicing, 'Practicing Physician', Practicing Attorney'. Other professionals are practicing to get better and so should You.

You can be successful at forex, but not if You are not willing to do what it takes to succeed.

SUCCESS LIST FOR FOREX:

WAIT for a proper trade set-up before entering the market!

LET GO of bad trades quickly!

ALWAYS TAKE MORE than You give!

YOU CAN DO THIS (^_^)