subject: Forex Trading Point & Speculating Vs. Gambling by Ivan Cavric [print this page] Forex Trading Point & Speculating VsForex Trading Point & Speculating Vs. Gambling by Ivan Cavric
1. In any trade there are 3 possible outcomes. You will either be up, down or even. That's it! Simple
2. If you can be profitable 55% of the time you will be successful.
3. The market doesn't know you, doesn't know what position you took and it's not out to get you. The quicker you can dispense with this distraction the more time you will have to focus on what matters.
4. This is similar to Point 3 with some stark differences. When you are on a run and everything is going your way keep in mind this does not make you a genius nor lucky. It's how markets function and a skilled trader is able to operate rationally in periods of organized chaos.
5. You will have losses. It's part of the trading experience. You must be prepared to accept them and more importantly learn from them.
Admittedly there are more points than these and you should take opportunities to learn them. However these are sufficient.
1. Speculating is a business not a hobby. You must treat it the same as running a business. That means you need to know at all times your working capital, cash flow and percentage return. If you are not prepared to do this go collect coins, it will be more pleasuring for you.
2. Prior to taking a position you have prepared and evaluated all possible outcomes. You will not be relying on a gut feeling or crutches. You will stick with you plan no matter what happens.
3. Hindsight is bullshit. Everything works on paper. Let me rephrase this everything can be justified on paper. Reality is a much harder judge. Don't be swayed by second guessing your methods.
4. Whatever you do avoid focusing on how much money you could have made if only. This is a lot harder to do than it sounds, don't kid yourself. Conversely don't focus on how you could have avoided the loss if only..What's done is done and each trade is a new trade and does not have the memory of your last trade. Neither should you.
5. Avoid bragging about how much money you made. The market has a way of making all of us foolish. Such behavior forces us to lie when we are losing money to save face. It's really no one's business except yours.
