You Control Your FX Success.
mostly all people start trading with the robot..
and spend time every time just to research which robot return more profit..and they end with nothing..
so prepare yourself with the knowledge first...trade is business...not just a game..
Remember what H. Rearden said:
Now, 2 patterns of market behaviour happen on a regular basis:
1) the price breaks to new high's (or low's)
2) the price reverses from new high's (or low's)
"Look, for example, at this elegant little experiment. A rat was put in a T-shaped maze with a few morsels of food placed on either the far right or left side of the enclosure. The placement of the food is randomly determined, but the dice is rigged: over the long run, the food was placed on the left side sixty per cent of the time. How did the rat respond? It quickly realized that the left side was more rewarding. As a result, it always went to the left, which resulted in a sixty percent success rate. The rat didn't strive for perfection. It didn't search for a Unified Theory of the T-shaped maze, or try to decipher the disorder. Instead, it accepted the inherent uncertainty of the reward and learned to settle for the best possible alternative.
The experiment was then repeated with Yale undergraduates. Unlike the rat, their swollen brains stubbornly searched for the elusive pattern that determined the placement of the reward. They made predictions and then tried to learn from their prediction errors. The problem was that there was nothing to predict: the randomness was real. Because the students refused to settle for a 60 percent success rate, they ended up with a 52 percent success rate. Although most of the students were convinced they were making progress towards identifying the underlying algorithm, they were actually being outsmarted by a rat."
P64 HOW WE DECIDE
"Think about the stock market, which is a classic example of a "random walk," since the past movement of any particular stock cannot be used to predict its future movement. The inherent randomness of the market was first proposed by the economist Eugene Fama, in the early 1960's. Fama looked at decades of stock market data in order to prove that no amount of knowledge or rational analysis could help you figure out what would happen next. All of the esoteric tools used by investors to make sense of the market were pure nonsense. Wall Street was like a slot machine."
Pg 67 - HOW WE DECIDE
"Unless you experience the unpleasant symptoms of being wrong, your brain will never revise its models. Before your neurons can succeed, they must repeatedly fail. There are no shortcuts for this painstaking process."
(Page 54) HOW WE DECIDE
ALL YOU NEED TO KNOW ABOUT TRADING
* Price either goes up or down.
* No one knows what will happen next.
* Keep losses small and let winners run.
* POSITION SIZE = RISK / STOP LOSS
* The reason you entered has no bearing on the outcome of your trade.
* You can control the size of your loss (skill) but you can't control the size of your win (luck).
* You need to know when to pick up your chips and cash them in.
Expectancy = (Probability of Win * Average Win) - (Probability of Loss * Average Loss)
You can not control the probabilities of wining or losing.
You can not control your average win size.
The only part of the equation of the equation that you can control is your average loss size.
Choose Your Advice Carefully
Since your mind is your most valuable asset and your most valuable lever, you need to be careful what you put in it. Sometimes it is even more difficult to get rid of thoughts and ideas that are already in your mind than it is to learn something new - Pg 119 WHY WE WANT YOU TO BE RICH
F - Follow
O - One
C - Course
U - Until
S - Successful
- Pg 110 WHY WE WANT YOU TO BE RICH
THE ILLUSION OF CONTROL
"Individuals appear hard-wired to overattribute success to skill, and to underestimate the role of chance, when both are in fact present."
[Langer, E. J., The Illusion of Control, Journal of Personality and Social Psychology 32 (2), 311-328 (1975)]
FINANCIAL MANAGEMENT
"After a full cycle of rise and fall after which stocks were valued just where they were at the start, all his clients lost money (Don Guyon, 1909).
Many academic works suggest that most managers underperform "buy-and-hold" strategy; persistence of winners is very rare, etc.
Most funds consistently fail to overperform random strategies (dart throwing)."
OVER-OPTIMIZATION
Rats beat humans in simple games
People makes STORIES!
"Normal people have an "interpreter" in their left brain that takes all the random, contradictory details of whatever they are doing or remembering at the moment, and smoothes everything in one coherent story. If there are details that do not fit, they are edited out or revised!"
(T. Grandin and C. Johnson, Animals in translation (Scribner,
New York, 2005)
If the rat is beating you, you are the reason why.
thanks for the advice again.....
well motivated will keep me to trade for...yeahhh
Read it over and over until YOU GET IT!
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Have you thought about investing in FOREX or perhaps you are already trading on the FX. To be a successful forex trader you have to take forex trading serious. Just like a home-based business, it takes time and money to be successful.
You have probably heard that you don't need a lot to start trading with on the FOREX. That is correct. The demo accounts are free and mini accounts can be opened up with $100. The initial investment doesn't have to be that much. But, at some point in time all forex traders are going to lose money. If you don't do your homework, you are going to lose quickly.
Do your due diligence! Read lots of forex and economic articles, become informed on financial markets, economic markets and practice on a demo account. Forex is not a get rich scheme. It can be profitable if you really put the time into developing a strategy.
A demo account is great because it doesn't cost you any money. However, it will require your time. Everyone's learning curve is different. Also, the amount of time that one can devote to learning forex will vary. If you have a full time job, learn forex in your spare time. Don't quite your day job.
To be a successful trader you have to develop your own strategy. Some will say the fundamental analysis is the best approach. Fundamental analysis is performed on historical and present data, but with the goal of making financial forecast. The data used in this analysis is; money policy, government policy and economic indicators. Some examples are GDP, exports and imports. The analysis of this data is for a specific business cycle.
Ours will say the technical analysis is the best strategy. Technical analysis is a security analysis technique that claims the ability to forecast the future direction of prices through the study of past market data, primarily price and volume. In its purest form, technical analysis considers only the actual price and volume behavior of the market or instrument. Technical analysts, sometimes called "chartists", may employ models and trading rules based on price and volume transformations.
Some successful traders use a combination of both analysis. Whatever forex strategy you choose a good forex software application will provide you with some good tools. Start off with the demo account. Trade on the demo account for a few months before you open up a mini account. Concentrate on 1 major currency pair. It gets far too complicated to keep tabs on more than one currency pair when you first start trading. Keep it simple at first.
Remember, Forex trading is a SKILL that takes TIME to learn. Skilled traders can and do make money in this field. However like any other occupation or career, success doesn't just happen overnight.
For more forex information please visit Forex Trading Articles, Audios, News and Tools - Forex-Money-Exchange.com
By Tracy Lenyk