Markets are not simple win or lose types of scenarios. The cost of losing trades can be different from that of the wining trades. Most traders tend to maximize their probability of winning trades while creating a small chance of large loss. Continue reading The Trap of Winning Strategies
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Mr. Winsor Hoang, based in Vancouver, British Columbia, switched to automated trading about three years ago and says he was up about 20% last year. Continue reading Winsor Hoang in the Wall Street Journal 2011 An edge in trading is commonly defined as a statistical advantage over the market. What is your edge? That is a common question amongst traders. When most traders think about having an edge in the market, trading strategies, indicators and secret formulas are what generally come to mind. Trade planning does not. In this article, however, we are going to discuss the power of a trade plan and why having one can act as a definite edge when trading financial markets. Continue reading The Power Of A Trade Plan In the last two posts, I discussed the greed and fear in Forex trading. It is a combination of greed and fear that traders tend to open too many trades. As long as traders continue to fear about losing trades, they will affect their abilities to make sound judgment. Traders should avoid trading systems with 95% winning trades as these systems are designed to target the greedy and the fearful. In this post, I will cover the lack of discipline. Instead of talking about it in a negative connotation, let’s restate it as the discipline. Continue reading The Lack of Discipline in Forex Trading In the last post, we discussed the greed in Forex trading. Most Forex traders are too greedy and have an unrealistic expectation with their trading results. Learning how to trade is similar to learning a musical instrument. It takes years of dedication and perseverance to excel at it. Most traders want to break the bank with a string of few winning trades. Good traders know that it is their net gain after hundreds of trades, which make them profitable. This post will cover the emtional fear in Forex trading. There are over 1,000 rules that new forex traders fail to adhere. It is extremely difficult to memorize and observe them all; hence, I am going to group them into three categories. This will help you accelerate your learning curve. The first is greed. Most forex traders don’t realize that trading is a skill which has a learning curve. Continue reading Greed, Fear & Lack of Discipline in Forex Trading As a user of MetaTrader 4 a.k.a MT4, I don’t care much for MT5 as there are so many restrictions. I agree that MT5 has its advantages such as speed, execution, security and encryption; however, other advantages are meaningless to a forex trader. One of the claimed advantages is Depth of Market. This may be advantageous for stock trading but not for Forex trading. MT5 claims to have more indicators and more time frames but indicators and time frames do not make you a better trader. Sometimes having too many choices can be perplexing. I personally think that MT5 will benefit the brokers more than the retail traders. I understand that MT5 will allow traders to access to various financial markets such as futures, options, and stock markets. This worries me. I rather have one software that specializes in currency trading rather than a general software that tries to trade every entity available. When you are trying to fit everything into one mold, it is not beneficial to the retail traders. Metaquote language a.k.a MQL4 and MQL5 are not compatible; hence, all the custom indicators, scripts, and expert advisors are required to be rewritten. MQL5 is approximately 20 times quicker execution than MQL4, and I am willing to put up with the conversion. With the built in debugger for testing and error finding, this should make the conversion faster. The deal breaker for me is that MT5 does not allow hedging. Hedging is a great risk management tool and removing this tool the retail traders are further at a disadvantage. Continue reading The Evil of MetaTrader 5 A.K.A. MT5 Special Guest Post Trading is difficult. In fact, industry legend states that over 90% of traders lose money on a regular basis. The truth is that very few traders are consistently profitable over the long term. Becoming a professional trader involves a huge sacrifice of time and energy, and most professional traders agree that it takes several years to develop the full skills set necessary in order to make money in financial markets consistently. However, for those interested there is good news! A person does not have to trade to make money in the forex market. Continue reading Want To Make Money In The Forex Market, But Don’t Have Time To Trade? The beginning of September was extremely busy for me. I created a Facebook account, Twitter account, and added several forums. You can now find us at the followings: www.facebook.com/ctsforex (FaceBook) www.twitter.com/ctsforex (Twitter) www.ctsforex.com/blog (Blog) www.softpedia.com/ (free software download) Tweet . . . → Read More: CTSForex on Social Media Managed Forex Accounts It seems that most forex traders will tend plateau out. The reason why this happens because they continue to chase the indicators and expert advisors. You have to realize that there is no Holy Grail. We have all been scammed by the marketers with their get rich quick Forex trading. Every time that you see return on investment (ROI) calculated in day, week, or month, it is guaranteed to be a scam. Continue reading Are You a Forex System Chasing Junkie? |
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