Tag: trading style

  • Can I get Rich by Trading Forex?

    Can I get Rich by Trading Forex?


    Some people really got rich by trading forex but they spent a lot of time and money to reach that level. Forex trading is a seductive but rocky path.

    By Guy Avtalyon

    Can I get rich by trading Forex? Yes, you can. Honestly, it’s possible but you have to learn a lot. When you first start learning something, you acquire information. As you acquire more and more information, your mind will sift through it and will organize it, and will only leave the most important information that pertains to you. And that becomes your knowledge. Then as you start acting on your knowledge, and start gaining experience on a subject, that knowledge turns into wisdom.

    I would like to emphasize this. In order to become successful,  it isn’t that you need to only be knowledgeable, but you also need to be wise, and wisdom is only acquired through action and experience.

    Listen to the wise people if you want to get rich by trading Forex

    But there is also a second point in this story. You can’t become a successful trader, no matter how much information you were gathering, and no matter how many books you read from “knowledgeable” experts if you are not ready to carefully listen to what wise people have to tell to you.

    So please, before you open up space in your mind to someone or something, make sure they are a wise person who is actually trading and making money in forex, instead of just giving you a bunch of useless theories. When you find such a person you will know that. You will feel like the guy who discovered the king’s tomb.

    Oh, yes, you will have one of those moments where you are staring at one of those optical illusions, staring at it for hours until KABOOM! It hits you “it’s a f***ing ship out to sea!”

    Until you get rich by trading Forex here are some tricks!

    Choose a Broker With Appropriate Trading Platform 

    You must know each broker’s policies and how it goes about making a market. Spending time researching the differences between brokers will be very helpful but choosing a reputable broker is of paramount importance.

    Define Your Goals, Methodology, and Style 

    It is vitally important, to have some idea of your goal and how you will get there. Hence, it is imperative to have clear goals in mind. After that ensure your trading method to be capable of achieving these goals. Each trading style has a different risk profile and each of them requires a certain attitude and approach to trade successfully. Whichever methodology you choose, be consistent, and be sure it is adaptive. Your system should follow the changing dynamics of a market.

    Choose Entry and Exit Time Frame 

    Some traders are disoriented by conflicting information that happens when looking at charts in different time frames. If you are taking your basic trading direction from a weekly chart and using a daily chart to time entry, be sure to synchronize those two. If the weekly chart is sending you a buy signal, just be patient and wait for the confirmation from your daily chart. It should also give you buy signal In Forex trading timing is everything.

    Learn to Love Small Losses

    Think of your trading money like holiday money. Have the same attitude toward trading, once the holiday is over, your money is spent. This will mentally prepare you to take small losses. This is key to managing your risk. You will be much more successful by accepting small losses rather than constantly checking your balance.

    How to use Forex trading system  

    When knowing what to expect from your Forex trading system you must have the patience to wait for the price. It needs time to reach the levels that your system indicates for either the point of entry or exit. If your system point to entry at some level but the market never reaches it, then move on to the next opportunity. There will always be another trade. Sit on your hands until your system triggers an entry or exit point.

    Forex can change your life

    This is pretty much true but you must have realistic expectations. You can’t expect to invest $300 in your trading account and make $15,000 in each trade. That means being not – realistic. However, the Forex market sometimes can make a much bigger move than you expect. But it is not the rule, keep this in mind. It is better for you to be positively surprised than to lose everything. This is particularly true for Forex trading beginners.

    Build Positive Feedback Loops

    When you plan a trade with due diligence and execute it well, you create a positive feedback pattern. Success produces success, which grows confidence and you have a profitable trade. A positive feedback loop is formed as a result of a well-executed trade. But when you know that it comes in accordance with your trading plan the effect is more intense. Even if you get a small loss, you will be building a positive feedback loop. Think about the feedback loop as a tool and you’ll understand how important is to create this tool. That is the secret of how to get rich by trading Forex.

    Test Your Skills

    Open some free demo account and test. Submit trades in a virtual ambiance with virtual money before you start risking your own money. You should never ever trade a setup just because candles are moving. The aim is to be prepared and anticipate movements. You have to understand one rule: when a currency pair is moving fast, the reward to risk ratios are decreasing very fast. That means, there are more chances of the currency pair moving more pips before it makes a retracement. By jumping in a trade that is moving, the likelihood of a lower reward to risk ratio is high and the chances of a continued move without retracement are smaller.

    The best trading occurs when traders have both the mindset and trading mentality of a hunter when approaching the Forex market. If you coolly view and analyze what the conditions of the market are and then comparing that setup to the desired market environment, you are on the right path. If the market is offering sufficient odds of success and reward to risk ratios, then the trade plan is executed without any emotional disturbances.

    Stick a note on your computer that will remind you to take small losses often and quickly rather than wait for the big losses.
    What are your experiences? Share them with us or share this post with others.

    Last update: 10/07/20
  • Secrets About Trading Stocks Revealed

    Secrets About Trading Stocks Revealed

    Secrets About Trading Stocks Revealed
    Trading stocks isn’t rocket science but it is helpful when you know some secrets about it

    By Guy Avtalyon

    I’ll reveal all secrets about trading stocks. Yes, that’s exactly what I’m going to do. First of all, you must understand, trading is a younger cousin of investment. As a newcomer, you can be overwhelmed by the quantity of the data available in the stock market.

    When you simply sign up at one of these online brokerage companies and dump your life savings into the market, you are ready to start.

    The most important decisions you’re going to have to make in your road to becoming a successful trader of the financial markets is, what your trading style is going to be. Different trading strategies have their own collection of benefits and drawbacks. If you’re new to the trading scene and might not understand the differences of each trading style, you may be confused.

    Damn, what I have to do?

    You have a choice to simply buy and hold positions in any market for long periods of time, for years or even decades. Or you can complete your trades within one 24-hour period which is easy but the most challenging and fraught with the highest levels of risk, though it can bring big rewards.

    If you choose long-term trading and buy-and-hold trading, offer is a lessened risk in exchange for fewer opportunities for reward.

    ”And now, what is the next I have to do?”
    Well, you have to pick your trading days. Research has shown that the third week of the month is the best time to buy stocks.

    According to researching, the best of the best is the period between 18. and 22. of the month.

    Why is that? The prices tend to hit their lowest monthly points at that time because cash flows from dividend reinvestment and pension funds are likely to be at their lowest as well in that period.

    That means the best time to sell stocks is closer to the beginning and end of the month when cash flowing into the system is at its highest.

    Speaking about of period of the whole year, April and May are the most successful time to sell your stocks, while buying new stocks in September and October is going to get you the best price (in that time the market tends to bottom out).

    Do you want to become a day trader?

    If you want to be a day trader, there’s a right time for you as well.

    The best time of day to trade stocks, if you are from Europe, is between 9:30 to 10:30 AM. This time frame is offering the biggest moves in the shortest amount of time (a great and efficient combination). You can extend it out to 11:30 AM EST if you want another hour of trading. The best time for a US-based day trader will typically be in the late afternoon Eastern Time. Corporate earnings reports and statistical reports from the federal government usually released in the morning, waiting until around 1:30 pm to 2:00 pm.

    Secrets about trading that make you successful

    I was waiting for you here!
    There are no instant solutions. Unless you are idiot, you have to understand that you can’t find a secret formula or secrets about trading. If there is any secret or key, it is this: keep it simple, be systematic, and get educated.

    If you had enough capital to open a trading account, this doesn’t mean that you’re going to be successful right out of the gate.

    But, let’s assume are a beginner and if you’ve never spent a day in your life in trading before. So you may think you’ll be able to dive without educating yourself because trading stocks isn’t rocket science. Really?  Well, you’re likely to end up learning the hard way. You will watch how all your investment capital disappears into the ether in exchange for a handful of stocks that end up not worth much. Even worse, not worth anything at all.

    Keep in mind: trading is not gambling. But there are some tips and secrets about trading.

    One secret you should know: everyone is selling the stock or vice versa. But it’s obvious that someone has to be buying the stock also.

    The ultimate secrets about trading are this, learn to identify and trade with Smart Money!

    Secrets about trading stocks

    1.  Focusing on odds trading and risk/reward vs. hunches and feelings can lay the foundation for a very long and successful career.
    2. The stock market does not care about your feelings or wants. These major principles are the biggest contributors to the losses realized in the stock market.
    3. Know your risk tolerance, and trade the consistent strategies. If you stay focus on these 2 things you can be sure you will be trading longer than 1 year, even longer.
    4. Don’t be risk-averse, learn to evaluate risk, and learn to understand yourself.
    5. Trade up to the point you can bear the loss, don’t ever cross your limits it’s better to wait for your time.

    Final words: Always have a plan, consolidate your portfolio, stay away from all the mumbo jumbo, only invest in the coins that will turn over a profit, find others that you trust to keep you properly informed, use the tools of the pros.

    Good luck!

    If you find that this article may interest someone else, feel free to share. If you have personal experience, share it with me.