суббота, 11 февраля 2012 г.
четверг, 9 февраля 2012 г.
Golden rules of the forex market (forex), or 45 ways to avoid financial losses in Forex.
They are really 45 - how to avoid financial losses in the Forex market. Do not have a moral right to say that this is only the result of my research and own experience.
Here gathered the experience of many successful traders who found it possible to share these experiences and thus provided a unique opportunity to learn from their mistakes are not, and the mistakes of others - that this feature distinguishes the wise man from his opposition.
You just have to understand and follow very carefully the material set out below and you will avoid the very many problems at work in the forex market. Fully admit that nekotrye of these recommendations will seem inconclusive or uncertain.
But take it on faith that the phrase uttered underwritten by people who know very well their job. So try to just look at the forex market through their eyes, as if through the prism of their perceptions and attitudes to the profession of a trader.
The lack of knowledge.
Most beginners do not want to spend time to understand what drives the market and why this is the market behaves in a certain way (the fundamentals).
Excessive trading.
Frequent opening positions with tight stops and tiny profit will bring money just your broker. The desire to "just" to make a hundred bucks a day with a small profit wherever possible - is a losing strategy.
The use of borrowed funds.
Borrowings - is the road to the two ends. The broker wants you to use as much money, because your position size determines the amount of spread. The larger the size of the position, the greater the spread the broker earns.
Someone else's opinion.
Businesses selling themselves, they make decisions, and never allow others to make the decision for them. There is no middle - or you trade for yourself or someone trades for you.
Stop loss.
Statement of the hard stops, it's a straight road to disaster. Free stop loss makes the deal more likely to end up with a profit.
The demo account.
Demo accounts, which provide brokers are "stool pigeon" to entice customers. They are not as "sensitive" as real accounts and demo accounts running many systems that do not work on a real account. For example, the intersection of the short moving average may work well on a demo account, but in real life - no.
Trading in the quiet hours.
Bank brokers, traders, trading in options, hedge funds have a big advantage in the quiet hours when the market is not active. They can move the market when the volatility is not too big, forcing newcomers to open positions on the signals. During quiet hours there is only one signal - stay away.
Currency trading, not a couple.
Currency trading in the transaction - this is only half the success or failure of the transaction depends on the foreign currency, which together constitute a pair.
Trading without a plan.
"Make Money" - is not a plan. Trading Plan - a program for success. It should include the maximum loss in the transaction, otherwise it is not a plan and you will become yet another addition to the statistics (by 95% of beginners lose money and go away forever from Forex).
Trading against the trend.
There is a big difference between buying at the bottom and buy for less at a bearish trend. What was the lowest price, could quickly become a high price in a downtrend.
Closing the position.
If you reached a deal to develop and she is not the way you planned, try to get out of it at the best possible price, do not increase the loss. If your position is in profit, do not close it ahead of time just because you're bored, or to relieve stress. Stress - is part of the trade and need to get used to it.
Short-term trading.
If your goal is 20 points, do not open the transaction, as spread plays against you for such a small profit.
Search for peaks and troughs. Cheap things are better to look at the supermarket, not in Forex. It is better to trade with the trend, it will greatly improve your results.
Consider themselves too smart.
Most successful traders from those I know graduated from college. They always see the obvious and does not complicate. They get excellent results.
Mixing apples with oranges.
Sometimes there with you? You can see that the EUR / USD goes up and you buy GBP / USD because it has not risen - it is a mistake. In most cases, this can be explained by the fact that the pound is overbought, or have already increased by the news. If the euro is increasing - buy euros.
Shying away from challenging transactions.
Bank Forex traders say, "the harder bargain, the better it is." It comes with experience.
Too much detail.
If you use more than 2 indicators then you should review the strategy. With an abundance of information there is always a reason not to open the transaction. All you need is a setup and an indicator to open the transaction.
Quickly give up.
The first day can be a bad deal, but it does not mean that we should not continue to trade. You just need to determine how much you are willing to lose in a day. It is impossible to make money, regretting every loser. Bad deals happen and this should be ready.
Jumping out of the deal in the bargain.
Do not be penny-wise and pound-foolish. Wait for a signal, open trade, putting a good foot, so that market noise does not hurt him.
Fear of stop loss.
In trade, there is nothing superfluous, it's just business. You should not consider themselves poor, if you had a bad deal. Maybe you're a little rushed or "big players" entered the game, thus causing a sudden jump in prices. Once again, put a stop beforehand and never move it. If the price has gone wrong, then most likely it will continue its movement. I think Newton said: "The body in motion continues to move ...".
Rely on the formula "Risk: Win = 1:1."
In this formula does not win, but if your stop loss - 20 points, and Profit - 60 pips, then your formula "Risk: Win" will be 3:1.
The use of false reasons.
The fact that the euro is going up, says nothing about what to buy. Buying Euros in the flat or worse. You pay the spread, not even knowing where to go currency. If you're bored - do not trade, you are bored because they just do not have deals.
Rumors.
The rumors - it's just a rumor. Think about when you heard the rumors. If the euro goes up for 15 minutes and you know that the rumors are not in favor of the dollar - you're already late. Stay in motion.
Trading on the short crossing medium.
This is the biggest swindle in Forex. When the shorter moving average crosses the longer it merely means that the price in the short term, equal to the price in the longer term. I could never understand why that signal "bullish" or "bearish". This signal is easily obtained than are companies producing software for the Forex, but in terms of profit - this is an absolute zero.
Stochastic
Another device for pumping out money. Personally, I think that this indicator only works vice versa. Overbought - a strong point, oversold - weak. Buy when the price is in the overbought zone and sell in the oversold area. You will have time to catch the trend and remove a lot of points.
A bad broker.
Most brokers just awful. Read the forums to choose a broker.
False results.
Be careful when buying a system of "black box". There are systems that do not disclose the manner in which a signal. Most of them - just garbage. They show a history of huge profits, but think about it: if you had the ability to use dozens of filters and you've got a look into the past, would you have done a good strategy. But in this strategy may not work. In the stories, you can create a lot of strategies, but be careful in their actual use.
Incompatibility.
In every business (including forex) must have a plan. As long as you do not take the time and did not write the rules that you follow, your trade will be random. Write a plan, write the rules and follow them. Put a real purpose, and you'll get his.
For two hares.
Concentrate on one pair. Each exchange their own style, and until you learn it, you do not understand how her trade. No need to be sprayed, focus first on one pair, while you were not fully understood.
Long-term planning.
Do not do this. Stay in the present, especially if you're a day trader. No matter what happens in a month, or next week. If your stop loss of 30-50 points, then send your thoughts on this. But, I'm not saying that long-term trend does not matter. I just want to say that long-term trend does not always help you if you are trading short term.
Excessive self-confidence.
Trading is simple, but it is not easy. Statistics show that 95% of newcomers are losing in the Forex market. If you work, then you should not take it for granted.Always seeking to improve what you do.
To lose control.
When you open a deal, you have to think as calmly as if you did not have an open position. To do this you need to relax and have fun.
Staying in the game.
I do not recommend demo trading because traders presses bad habits by playing fictitious money. On the other hand, I do not agree with those who say "let it settle down first." Need to start trading and take risks that you did not have all the same, you win or lose.
Here gathered the experience of many successful traders who found it possible to share these experiences and thus provided a unique opportunity to learn from their mistakes are not, and the mistakes of others - that this feature distinguishes the wise man from his opposition.
You just have to understand and follow very carefully the material set out below and you will avoid the very many problems at work in the forex market. Fully admit that nekotrye of these recommendations will seem inconclusive or uncertain.
But take it on faith that the phrase uttered underwritten by people who know very well their job. So try to just look at the forex market through their eyes, as if through the prism of their perceptions and attitudes to the profession of a trader.
The lack of knowledge.
Most beginners do not want to spend time to understand what drives the market and why this is the market behaves in a certain way (the fundamentals).
Excessive trading.
Frequent opening positions with tight stops and tiny profit will bring money just your broker. The desire to "just" to make a hundred bucks a day with a small profit wherever possible - is a losing strategy.
The use of borrowed funds.
Borrowings - is the road to the two ends. The broker wants you to use as much money, because your position size determines the amount of spread. The larger the size of the position, the greater the spread the broker earns.
Someone else's opinion.
Businesses selling themselves, they make decisions, and never allow others to make the decision for them. There is no middle - or you trade for yourself or someone trades for you.
Stop loss.
Statement of the hard stops, it's a straight road to disaster. Free stop loss makes the deal more likely to end up with a profit.
The demo account.
Demo accounts, which provide brokers are "stool pigeon" to entice customers. They are not as "sensitive" as real accounts and demo accounts running many systems that do not work on a real account. For example, the intersection of the short moving average may work well on a demo account, but in real life - no.
Trading in the quiet hours.
Bank brokers, traders, trading in options, hedge funds have a big advantage in the quiet hours when the market is not active. They can move the market when the volatility is not too big, forcing newcomers to open positions on the signals. During quiet hours there is only one signal - stay away.
Currency trading, not a couple.
Currency trading in the transaction - this is only half the success or failure of the transaction depends on the foreign currency, which together constitute a pair.
Trading without a plan.
"Make Money" - is not a plan. Trading Plan - a program for success. It should include the maximum loss in the transaction, otherwise it is not a plan and you will become yet another addition to the statistics (by 95% of beginners lose money and go away forever from Forex).
Trading against the trend.
There is a big difference between buying at the bottom and buy for less at a bearish trend. What was the lowest price, could quickly become a high price in a downtrend.
Closing the position.
If you reached a deal to develop and she is not the way you planned, try to get out of it at the best possible price, do not increase the loss. If your position is in profit, do not close it ahead of time just because you're bored, or to relieve stress. Stress - is part of the trade and need to get used to it.
Short-term trading.
If your goal is 20 points, do not open the transaction, as spread plays against you for such a small profit.
Search for peaks and troughs. Cheap things are better to look at the supermarket, not in Forex. It is better to trade with the trend, it will greatly improve your results.
Consider themselves too smart.
Most successful traders from those I know graduated from college. They always see the obvious and does not complicate. They get excellent results.
Mixing apples with oranges.
Sometimes there with you? You can see that the EUR / USD goes up and you buy GBP / USD because it has not risen - it is a mistake. In most cases, this can be explained by the fact that the pound is overbought, or have already increased by the news. If the euro is increasing - buy euros.
Shying away from challenging transactions.
Bank Forex traders say, "the harder bargain, the better it is." It comes with experience.
Too much detail.
If you use more than 2 indicators then you should review the strategy. With an abundance of information there is always a reason not to open the transaction. All you need is a setup and an indicator to open the transaction.
Quickly give up.
The first day can be a bad deal, but it does not mean that we should not continue to trade. You just need to determine how much you are willing to lose in a day. It is impossible to make money, regretting every loser. Bad deals happen and this should be ready.
Jumping out of the deal in the bargain.
Do not be penny-wise and pound-foolish. Wait for a signal, open trade, putting a good foot, so that market noise does not hurt him.
Fear of stop loss.
In trade, there is nothing superfluous, it's just business. You should not consider themselves poor, if you had a bad deal. Maybe you're a little rushed or "big players" entered the game, thus causing a sudden jump in prices. Once again, put a stop beforehand and never move it. If the price has gone wrong, then most likely it will continue its movement. I think Newton said: "The body in motion continues to move ...".
Rely on the formula "Risk: Win = 1:1."
In this formula does not win, but if your stop loss - 20 points, and Profit - 60 pips, then your formula "Risk: Win" will be 3:1.
The use of false reasons.
The fact that the euro is going up, says nothing about what to buy. Buying Euros in the flat or worse. You pay the spread, not even knowing where to go currency. If you're bored - do not trade, you are bored because they just do not have deals.
Rumors.
The rumors - it's just a rumor. Think about when you heard the rumors. If the euro goes up for 15 minutes and you know that the rumors are not in favor of the dollar - you're already late. Stay in motion.
Trading on the short crossing medium.
This is the biggest swindle in Forex. When the shorter moving average crosses the longer it merely means that the price in the short term, equal to the price in the longer term. I could never understand why that signal "bullish" or "bearish". This signal is easily obtained than are companies producing software for the Forex, but in terms of profit - this is an absolute zero.
Stochastic
Another device for pumping out money. Personally, I think that this indicator only works vice versa. Overbought - a strong point, oversold - weak. Buy when the price is in the overbought zone and sell in the oversold area. You will have time to catch the trend and remove a lot of points.
A bad broker.
Most brokers just awful. Read the forums to choose a broker.
False results.
Be careful when buying a system of "black box". There are systems that do not disclose the manner in which a signal. Most of them - just garbage. They show a history of huge profits, but think about it: if you had the ability to use dozens of filters and you've got a look into the past, would you have done a good strategy. But in this strategy may not work. In the stories, you can create a lot of strategies, but be careful in their actual use.
Incompatibility.
In every business (including forex) must have a plan. As long as you do not take the time and did not write the rules that you follow, your trade will be random. Write a plan, write the rules and follow them. Put a real purpose, and you'll get his.
For two hares.
Concentrate on one pair. Each exchange their own style, and until you learn it, you do not understand how her trade. No need to be sprayed, focus first on one pair, while you were not fully understood.
Long-term planning.
Do not do this. Stay in the present, especially if you're a day trader. No matter what happens in a month, or next week. If your stop loss of 30-50 points, then send your thoughts on this. But, I'm not saying that long-term trend does not matter. I just want to say that long-term trend does not always help you if you are trading short term.
Excessive self-confidence.
Trading is simple, but it is not easy. Statistics show that 95% of newcomers are losing in the Forex market. If you work, then you should not take it for granted.Always seeking to improve what you do.
To lose control.
When you open a deal, you have to think as calmly as if you did not have an open position. To do this you need to relax and have fun.
Staying in the game.
I do not recommend demo trading because traders presses bad habits by playing fictitious money. On the other hand, I do not agree with those who say "let it settle down first." Need to start trading and take risks that you did not have all the same, you win or lose.
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