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Forexforbeginners

Patience is a Virtue in Trading! Learn Why: In trading, timing is everything. Winning traders are patient. They know how to control their impulses so as to act decisively at the opportune moment. Rather than acting on a whim, they carefully devise a detailed trading plan, in which precise entry and exit strategies are specified, and strictly follow it. Discipline is the key to successful trading. Although discipline can be learned, some people are more disciplined and self-controlled than others. It is useful to determine where you stand on this trait, and if you’re impulsive, developing psychological strategies to compensate for it will allow you to trade profitably. Research studies have demonstrated that some people have difficulty delaying gratification. In the jargon of behavioural economics, they “discount delayed rewards.” That is, they would rather take a small profit now, instead of waiting for a larger profit later. Depending on your style of trading, discounting a delayed reward can be a problem. For a long-term investor, for example, it is necessary to buy-and-hold long enough for one’s long term strategy to play out. There may be minor fluctuations during the waiting period, but seasoned investors have learned to wait it out. Most novice investors, in contrast, impulsively sell as the masses panic and buy the stock back at a top, which usually results in a losing trade. If you are a long-term investor, it is necessary to be able to control your impulse to make a profit and allow the price to rise over time. Even shorter-term traders, such as a swing trader, must fight the urge to sell early. Although trades are held for much shorter windows, a swing trader must know how to wait patiently for the optimal time to sell. Selling a winner too early is not going to allow one’s account balance to increase exponentially at an ideal rate. The scalper is at the opposite end of the spectrum. Most scalpers feel an overpowering need to take a quick profit as soon as they can get it. To some extent, it may be wise for a person who has trouble patiently waiting for the price of an investment instrument to increase to become a scalper. The conventional wisdom these days, however, is that decimalization has made scalping less viable. It is useful to take other steps to work around one’s inclination to sell prematurely. For example, one can use the automatic settings on one’s trading platform to specify an exit strategy. It has often been said that looking at one’s screen during the trading day is like sitting in front of a slot machine and trying to resist gambling. It’s hard. Just as the one-armed bandit tempts recreational gamblers, charts and indicators on a computer screen tempt seasoned and novice traders alike to make hasty trading decisions. It may be useful to refrain from constantly looking at how a particular stock or commodity is doing while you’re waiting for your trading plan to play out. If you have to walk away, while having the automatic settings on to manage risk, then, by all means, turn off your screens or walk away. It is also useful to objectify the trade. The more you can learn to view the trade objectively, as if you just don’t care what happens, the more you’ll be able to resist the temptation to close out a trade prematurely. A cold, rational approach to trading, along with a detailed trading plan, is the best defence against impulsive trading decisions. Patience is a virtue when attempting to trade profitably. It is useful to remember that humans have a strong, natural tendency to avoid risk and loss at all costs. This tendency often protects us from harm, but there are times when it can compel us to act impulsively. We are naturally inclined to avoid losses at all costs, even if it means selling a potentially winning trade before it reaches fruition. Unless one can let winners increase in price sufficiently, profits won’t balance out losses. The ability to control one’s impulses and wait for larger, delayed rewards is vital for long-term survival. It’s worth developing this ability. Hey traders, let me know what subject do you want to dive in in the next post?
OANDA:XAUUSDEducation
by TopTradingSignals
9
Identifying a Trend — #Forex for BeginnersA trend is the general direction of a market. Unless something happens to change the trend, a currency or commodities price tends to move within a channel. A channel is formed by a Support level and a Resistance level. The Support level is the trendline for the Lows and the Resistance is the trendline for the Highs. Adding in additional Trendlines, between Support and Resistance, using the Ray Tool builds addition points of interest. Trendlines (how to draw) Identify 2 Lows or 2 Highs The Support Trendline can be identified as soon as 2 Lows are formed and Resistance Trendline can be identified as soon as 2 Highs are formed. Traders use the Ray Tool instead of the trendline tool to extend trendlines into infinity (Check off “extend right” in the settings by double-clicking on the ray). This is important because traders use trendlines to assist them with locating future trade opportunities as well as locating important areas in current trades. Traders always draw trendlines from candle wick to candle wick. By using the magnet tool in TradingView, this allows locking on to the candle wick to be much more easy and accurate. A best practice is to touch as many points as possible even if other candle wicks are cut through along the way. Always draw multiple trendlines for Lows and Highs on different time frames. A minimum of 2 touches is required for a valid trendline. The more touches the better. Using the @alphamindfx Method with the AM All-In-One Indicator
Education
by elleferrero
Weeky forex analysis - EurUsd expert analysisThe idea shared is an analysis of EurUsd for a mid term swing. Fundamentally, The Usd has shown strength owing to the recently released NFP reports. Next week will usher a series of News releases which hopefully will further boost investor confidence in the US economy. Sentimentally, As Europe experiences hard economic sanctions as a result of Russia's involvement in Ukraine, sanctions placed on one of the biggest economic contributors in Europe (Russia), Investors tend to move their investments to more stable economies or what we know as safe haven assets or currencies. For this pair, the Usd is favoured. Technically, the pair is trading below our trick moving average and in a downward trend, with the recent demand zone broken (refer to our previous analysis on Eurusd), a supply zone also created on the 1hr chat time frame. It is expected for price to fill in the supply zone and then continue downwards. On the Daily charts as seen too, a support structural level has been broken, price may have to retest that level and face resistance there for a drop in price. Our sentimental bias hence is to watch and plan for a sell trade on EurUsd. Let's go take some risk, let's go make some money, Millionaire Logistics.
Short
by MillionaireLogistics
2