Saturday 23 August 2008

How to exist in Forex trading ? see more truth explanation on forex trading

To exist as forex trader not easy as like turning our hand side,based on the result of observation and experience of mine untill now around 100% trader both that already the experience and the amateur were only 10% that remained in this business and 90% of them
all went out,Why this could happen? The reasons were :

1.Less of knowledge,didnt understand and regarded could significant investment could be
fast rich (only saw the other person was successful) .In fact forex was the same as necessary education time and the hard work as well as the experience to know or understand it well.It also was needed capital for his training.

2.The despair of trading
Often experienced loss than the profit and regarded was in vain all with what in studied especially technical indicator.According to my experience in the use of technical indicator must be careful to avoid false signal that possibly happened because the trend was began from smallest timeframe to biggest timeframe so it was not depend on one timeframe only.Usually professional trader divided trend become 3 parts of timeframe,all of them are :
a.Main trend (timeframe weekly or moonly)
b.Medium trend (timeframe daily or 4 hour)
c.Small trend (timeframe 1 hour or 30 mnt ,sometime was smaller than 30 mnt)
The rule of trend above not standard at all ,sometime daily timeframe also could be the standard played trend whereas the medium trend according to me only to see how the power of trend could be strengthen and small trend was first supported all time frame.

In previous trading i was also not free from the mistake and have lost much money at that time , possibly was wrong in the election of played trend(main trend), for example saw chart below;

The truth main trend


But why, my choice were these below chart :





Weekly chart that was forgetable by me,i am so impulsif and rush in decision .okay just forget it even i am also lost much money.

3.Bad money management risk
Not discipline in the use of the problematic margin also danger in this business ,sometime it would happened because of the greedy characteristics from a trader that finally had been even unfortunate (loss money) .it would be better if we used the margin 10 or 20 percent of capital and tried to get the focus to one or two pair currency position.

4.Not yet in founding the good trading system.
A trader that succeeded in forex must have the certain system in their trading .According to my experience i have 3 category of them,they are :
I.Trader that analysed main trend we mentioned it swing trader where the pattern of the analysis often used Elliot's pattern wave and fibonnaci as the target loss or profit.The margin was used in small quantity but the profit target and loss was bigger .The weakness of this systems trading was not be able to use the momentum of the correction from some trend.
II.intraday trader ,a trader that analysed was based on the medium trend and small trend as the implement to execution open pair,usually they often used various things of technical indicator both custom and expert also robotrading.Here the margin quantity was big in use but target of profit or loss was small,almost every time in front of the computer if he was online trading.
Trader must be beautiful to see how much the power reversal signal strengthen that would happened or was the reverse signal that was seen from indicator technical only false signal or not .And they must know to take the profit because reversal signal or the correction trend.
III.scalping trader ,a trader that analysed or waited open position at the time of news fundamental was not release . Profit target was small and use big margin without stopping loss because they using the 90% margin available.

 

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