Sometimes it seems like the market is out to get you; every trade you make goes against you like some sniper waiting to shoot you down. Rest assured that you are not alone in feeling this way. In fact, it is a common feeling among both seasoned and novice traders.
8. “Adventure. Excitement. A Jedi craves not these things.” The Empire Strikes Back
Some might say that the word Investor replaces the word Jedi quite well in this sentence; for some reason, the glamorous life of investing just doesn’t pull to some people. However, being a boring investor can equal some exciting returns when it’s time to retire.
“Genius is one percent inspiration and ninety-nine percent perspiration.” -Thomas Edison
Take a look at this equity curve from one of Apiary’s demo accounts:
What do you see?
It is true when they say that most things in life follow patterns. However, sometimes it is hard for us to recognize these patterns. The markets are no exception. To be successful, a trader must train his or her eyes to recognize and predict upcoming patterns. See if you can guess the next shape in the pattern below:
A question a trader might ask themselves frequently is, "How can I identify high probability trades?"
Risk management is essential to profitable trading. No matter how good your trading strategy is you're going to experience losses. As Forex traders, we know that we don't need to fear taking a loss. However, if you don't manage a losing trade then you're going to find yourself in trouble pretty quickly.
Trading Forex can be exciting, and has the potential to provide a little extra positive cash flow on the side. However, there are certain things traders should do when dealing with the markets, especially if they are going to be trading someone else's funds. Here are some tips for trading responsibly.
If you think about it, following a trading plan is really just creating trading habits. A habit is a tendency or customary practice like turning off the lights when you leave the room, waiting 30 minutes after you eat to brush your teeth, surrounding a trade when you see the start of a consolidation phase, or even placing an order when you see a candle cross the end of your Bollinger Bands. A big part of trading forex is just developing profitable habits.
I was on facebook the other night, and I ran into an article, “Will Your Child be Rich or Poor? 15 Poverty Habits Parents Teach Their Children.” I read the article, and was surprised by Habit #4. It stated,