forex discussion by muhammad kazim

[muhammad kazim]

Biting off more than can be chewed is a weakness of many traders. This form of over trading derives from greed and failing to have clearly defined trading objectives. Trading only to “make money” is not sufficient

 

[muhammad kazim]

The Daily Routine

Ask the following questions:
1. Where did the USD close (5pm EST) yesterday against the majors?
2. What effect will today’s economic reports have, if any, on the forex market?
a. FED interest rate movements
b. ECB decisions
c. Unemployment – Weekly Moving Average above or below 400k?
d. Greenspan speaking?
3. Are we at an all time high or low on the EUR or GBP or CHF? Or:
a. Are they way oversold or overbought? Is it better to not trade today?
4. If I make a trade now, what might go wrong? What’s the most I’ll lose? Gain?
Is the market just dead quiet right now? Moving fast?
5. Is the EUR or GBP moving right now? How far are the pairs from support and
resistance?

 

[muhammad kazim]

The 7:10 Principles

1. Buy and sell on breakouts. I teach this in the 1 on 1 training, and I do it myself.
2. Stop trying to make $8 million on every trade.
3. Set a 10-pip limit only. Exit the trade at 10. Exit the trade at 10. Stops are set based on market conditions, but are always set.
4. Goal: + 10 pips every day.
5. If I earn more than 10 pips on a trade because the trade moves so fast in my direction, I can set my stop to protect the 10 and then go for more. I like to teach traders to just start going for 10. There are advanced strategies that go for more than 10, but we just start here.
6. There is no ‘makeup’ strategy. If I take a loss, then I’m just trying to end up with a 10 pip gain for the day. If I can’t get it, then I don’t try for 20 the next day, or whatever. I can keep trying for the 10 pips gain as long as I haven’t lost more than 5% of my capital.
7. Time: I can trade for 5 hours per day, meaning I can have the trading platforms open and sit at my computer for a max of 5 hours per day. If I can’t earn my 10 pips during that time, then I can set my stops and limits and walk away, but I can’t actively watch the market any longer.

 

[muhammad kazim]

What is Emotion Management System?

Destructive Emotions

fear of losing money

premature exit

force you to not take a signal after a series of losing trading signals

twin brother of fear is greed

hold a position longer than dictated by your trading system

open a position when there is no entry signal from your system

greatly increasing your position size

 

[muhammad kazim]

Emotion Management Methods

your emotions should be system-related not price-related

you should shift your emotions from price to trading system

no single profit opportunity can compare with the possibility of long-term geometric capital growth made possible by consistent application of your trading approach

gave birth to the system or the collection of shiftsstrong motive power

treat your equity as your "trading life"

 

[Firma]

good info

 

[muhammad kazim]

Emotion Management Methods

your emotions should be system-related not price-related

you should shifno single profit opportunity can compare with the possibility of long-term geometric capital growth made possible by consistent application of your trading approacht your emotions from price to trading system

strong motive power

. It is best to desire geometric capital growth than a single chance profit not captured by your system

 

[muhammad kazim]

Mastering Emotion Control

any currency trading system is, in essence, an organized method to profit from other traders' emotions

 

[muhammad kazim]

Frustrated trader? Here’s a forex primer

Tired of the vagaries of stocks or the volatility of futures such as energy or gold? Then you might be a candidate for the largest traded "market" in the world. It’s not the U.S., Japanese or European stock markets but the foreign exchange – or forex or just FX – market, also called the cash currency market

 

[muhammad kazim]

Money Management

Listening To Opinion
Overconfidence
Hearing What You Want To Hear – Seeing What You Want To See
Fearing Losses
Valuing Invested Money More Than Won Money
Forgetting About Margin Inflation