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A Look at Online Forex Brokers
An online forex broker is a firm that facilitates retail trading using Internet technologies. Global Forex Trading (GFT), one of the popular online forex brokers. It provides retail traders with a free demo trading account, allows users to open a...
Forex broker involvement optional
To trade on the forex market, the largest financial market on the planet, one must use a forex broker. Not unlike a stock broker, a forex broker can also makes suggestions about which moves to make when exchanging foreign currency. Some forex...
Hawala, or the Bank that Never Was - Part I
I. OVERVIEW In the wake of the September 11 terrorist attacks on the USA, attention was drawn to the age-old, secretive, and globe-spanning banking system developed in Asia and known as "Hawala" (to change, in Arabic). It is based on a short...
Is This Really A Recovery?
Money Matters January 2004 Is This Really A Recovery? Presented by The Money Management Firm, Inc. www.moneymanagementfirm.com EBay I.D. optionsforyou ______________________________________________________________________ Bill Gates and General...
The Basics of Forex
Foreign exchange market is also known as Forex or FX market. To date, it is the world’s biggest “economic bazaar”. FX produces an average of over $1 trillion daily earnings. That is 30 times more than combining all the volumes of America’s equity...
The Miracle of Forex
My father, who owns a small parts store and garage for vintage British sports cars, called me up recently and droned on and on about how he is getting killed by the Euro. Confused as to how the Euro could possibly be affecting his small and...
Three Reasons to Start Derivatives Trading
If you are looking for a trading option outside of traditional stocks and bonds, derivatives trading may be a good option. Derivatives pay off over a period of time based on the performance of assets, interest rates, exchange rates, or indices. The...
Trading Profitably on the Foreign Exchange Market
You may be asking yourself "how does one begin to trade profitably as a currency trader?". First, it is important to closely monitor foreign equity markets to attempt to predict or model how their respective currencies will perform against...
Why Demo FX Account Performance Is Often Better Than Real Account Performance
Over the past several years, the popularity of online currency trading has grown substantially. Each day, online FX brokerage firms attract new investors - each of them lining up with a glint in their eye, lured in by promises of easy money. ...
Your Mother Could Make Money In Forex Trading
The question would be not whether she could but rather would she enter the Forex trading market. The Forex day trading arena is a veritable snake pit ripe for scam artists to bilk money out of unwary investors. On the other hand, it is a forum for...
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Investors - What Separates the Good Traders from the Bad Traders?
There are many forms of investing online. While I can give you a
list that is a mile long, these are the most common forms of
successful investments. Some of the following know how to invest
terms are:
1. Option trading
2. Future trading
3. Currency trading
4. Stock trading
5. Future trading
6. Forex trading (or) foreign exchange trading
I want to start this investing online critique out with a
story... On a beautiful late spring afternoon, twenty-five years
ago, two young men graduated from the same college. These men
were very much alike. Both, better than average students, were
personable and filled with ambitious dreams for the future.
For the sake of my example, I will set both college graduates off
online trading using a day trading plat form. Through a gift,
both start with the same online investing investment risk
capital, the same daytrading plat form, and the same trading
system with precise rules for entry and exits.
Shockingly, there is a difference. After one month, one
day-trader went broke / bust, while the other day trader returned
a 20% profit.
Have you ever wondered, as I have, what makes this kind of
difference in people's trading? It is not always a native
intelligence, talent or dedication. It is not that one person
wants success and the other does not.
The difference lies within the psychology of the brain. Your
psychological mind set is likely to play a larger role in your
trading online career than your chosen technique or any other
details associated with your day-to-day practice.
Here are some good examples:
1. One person looks at a glass ˝ empty, while the other
personality looks at that same cup as ˝ full.
2. Someone may look at problems and call them stress, while
another individual looks at troubles as challenges.
3. Another one may look at a ship in a storm as an adventurous
roller coaster ride, while another human being sees the same
situation as a hurricane that has a death call.
I am not the only one to discover this...
In his book, "Trade Your Way to Financial Freedom", the renowned
American psychologist Dr. Van Tharp discusses the role psychology
plays in trading success. He divides trading into three
Ingredients.
In his pie chart:
-- System is 10%
-- Money Management Success is 30%, and
-- 60% pertains to the psychology of thought and emotion.
Tharp discovered that the trader's psychology make up of the mind
has more to do with his success than anything else does.
However, what exactly is the psychology of the mind?
In
short, the psychology of the mind refers to your thinking and
emotional actions and responses to any given situation...In
trading, fear, greed, vanity, pride, hope, jealousy, denial - all
these can affect investment decisions. Although, your aim in the
market is to maximize your profit and minimize your risk,
thinking and emotions often make this easier said than done.
FOR EXAMPLE - Traders, who cannot control the psychological
process of thought and emotion, make the wrong decision - such as
the common amateur mistake of holding a losing position in the
belief that someday it will become a winner.
Loss aversion is a classic mistake. By nature, humans value a
loss. Therefore, you suffer almost twice as much pain losing $1
as you would in gaining $1. Loss aversion compels most traders to
hold a losing stock while it plummets downward. This clouded
judgment clearly contradicts the trading adage: cut your losses
and let your profits run.
Emotional investors hold losing positions because they view paper
losses differently from realized losses. An investor also engages
in other forms of irrational behavior.
EXAMPLES are attributing success as natural and losses to bad
luck.
This is just the tip of the iceberg. When talking about the other
devastating effects of trading, if you do not have the psychology
of your thought and emotions in the proper prospective the
consequences can be devastating.
This is what opens up problems for new traders, and then they
lose manage money very quickly in the markets. Most people
completely wiped out their finances within the first year of
trading. So, as you can see, your thinking and emotions play a
big part in determining whether you fail or succeed, but did you
know that thought and emotion make up two different spheres
pertaining to trading success?
-=-=-==-=-=-=-==-=-=-=-=-=-=-=-=-=-
David Jenyns is recognized as the
leading expert when it comes to
designing profitable trading systems.
Learn how *you* can become one of his
students. Subscribe to eZine at:
trading-secrets-revealed.com@getresponse.com
http://www.trading-secrets-revealed.com
-=-=-==-=-=-=-==-=-=-=-=-=-=-=-=-=-=-=-
About the Author
READ my articles; you'll FIND the best trading plans put together. Searching for these on your own, is a needle in a haystack. I trade everyday & my progressive efforts found the perfect system & plans work. These trading systems are unbelievably powerful, yet simple to use. Until recently, I've kept this formula to myself. NOW, I reveal all. CUSTOM ARTICLES AVAILABLE UPON REQUEST :-)
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