Is there a correct Trading Philosophy?
How does one trade the markets? Trying to trade every tick is sure to blow your account. :D Ask me about it.
How do you build an account? Do you aim for a % return per week? Do you aim for X pips per week? Do you just take what the market gives you? The last option sounds fine and dandy, but how do you determine what that figure is? What is the best way to start building an account? Cheers and have a great day or night, where ever you are. :D |
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Regards |
Well, i prefer the intraday strategy compared to the long term basis strategy because of the high profitability and this is a more viable strategy for me who have more time to monitor the market.
I think, this forex strategy is also more beneficial for people who are using an automated forex software where is can place the trade itself according to the market trends and this will continue operating for 24 hours a day. |
Control on Emotions are very important in forex trading. The most successful strategies are those that give you the following three key aspects:
- Clear defined entry rules. - Clear rules for placing stop loss - Clear taking profit rules. |
I think control on emotions are the toughest part in forex trading. As we all are humans and we get excited with every profit and gets dull with every loss.
Thanks Jason for defining the guidelines to us. :) |
Frankly it does not matter what strategies you follow as long as it is not foolish. The key thing here is discipline with your stop losses. Remember - stop loss levels you set for yourself are holy. Cut your position out if you hit your stop loss. Losses do hurt - but they are a part of trading. Rest should fall in place automatically.
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I prefer an end of day trading strategy as I place my trades at night and forget about it till next night at same time. A company I have found good for this is makemoneycurrencytrading dot co dot uk as I can usually place the trades based on their strategy in 15-30 mins. I work full time and have a family so I can’t spend all day at screen nor would I want to. |
Well, I dont do that. as i keep the track of all my trades till time time i close them so that i know when yop exit the market and when to hold the position.
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I believe in following the trend. Majority of the forex trading strategies and systems concentrates on identifying trends and that is a right approach. Do not try to go against the trend and depending upon the rising or falling trend, choose to go long or short as appropriate. Resisting the trend will result in losing your money in most cases.
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I'm starting to believe that being successful trading Forex has more to do with your philosophy than anything else.
You cannot trade based on how much money you want to make. You cannot trade based on how much money you need to make. This means that you can't push money into the market, desperately searching for opportunity, risking a large portion of your net asset value in the process. You must trade lightly. When you trade lightly, you simply let the market give you the returns that it is willing to relinquish to you. Quite simply, it is not a process of taking. ____________________ Forex Decoder |
If you are looking for a nice trading philosophy then you must keep in your mind some points. You have to control your emotions, always use stop loss, never hold your loss making positions, trade in forex market manually, Never love any particular currency pair.
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Developing the proper trading psychology is crucial if a trader is to have any trading successes. This is an area that many novice traders tend to overlook while they are educating themselves. Sad to say, there is no magic formula with which a trader can forgo having to develop the correct “Trader’s Mindset”.
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There are two common mistakes that many beginner traders make trading without a strategy and letting emotions rule their decisions. After opening a FOREX account it may be tempting to dive right in and start trading. Watching the movements of EUR/USD for example, you may feel that you are letting an opportunity pass you by if you don't enter the market immediately. You buy and watch the market move against you. You panic and sell, only to see the market recover.
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Before you enter a trade set a clear profit goal. This means you know when close the trade and exit. Sometimes people get greedy and try to stay in there with the hope of making more profits. New forex traders often commit this mistake. They might even get few high profit trades only to see that finally a huge drop in currency price destroying all their funds.
Similarly, if a trade goes against you, do not try to hold on in the hope that the market will turn back your way. In such a case your forex trading strategy should be to cut your losses and get out and when you set proper goal for each trade you know when to quit. You can also make use of stop losses to do this automatically. |
Yes there is a good trading philosophy. 3 Ms to keep in your mind when it comes to investing or trading:
MIND METHOD MONEY |
If you do not have a trading plan, make one. If you have a trading plan, follows it strictly! Never ever attempt to hold your weakened position and hope the market will turn back in your favor direction. You might end up losing all your capital if you keep holding. Move on, stay within your trading plan, and admit your mistakes if things do not turn as you want.
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Always keep in mind that:
* There are no black boxes that churn out 80%-plus winning trades * There are no perfect indicators * And there ain’t no Holy Grail Trading is a tough game. There are many more losers than winners. If it was easy, we’d all be multi-billionaires by now. |
Re: Is there a correct Trading Philosophy?
Forex Traders that focus on longer term time frames can afford to be more selective in the hopes of getting in on that one big movement that can put a significant amount of money in their pocket. A 25% win rate isn't so bad when you pocket 3 or 4 times what you risked on the trade. Big movements like that typically only come by catching a trend as it is just starting with an A+ set up.
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Re: Is there a correct Trading Philosophy?
well it totally depends on an individual trader but still i believe that booking profit no matter how small it might be is important, when you make a positive trade just withdraw some part of it.
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