forex discussion by muhammad kazim

[muhammad kazim]

Key Mistakes

Confusing trading with investing
Copying other people’s trading strategies
Ignoring the downside of a trade
Expecting each trade to be the one that will make you rich
Having profit expectations that are too high
Not reviewing your financial goals
Taking a trade because it seems like the right thing to do now
Taking too much risk.

 

[muhammad kazim]

How do I get myself to be in control in trading?

First, you have to believe in the process which leads to the generation of your entry signals. Does that process make sense to you?


Second, method you decide to go with, back-test it. In today’s modern world of software, there’s no excuse not to run all the back data you can through your method and see what the results would have been.
Third, THINK about the process you are choosing and why it’s right for you. THINK about the results you get from your back-testing and your real-time testing of your system

Fourth, BE A MACHINE (DON’T THINK) when you are trading your method

 

[muhammad kazim]

Main Drawbacks of a Forex Trader

The search for the Holy Grail

Looking for Easy Money

Looking for Excitement

Not Using Money Management
Not Being Psychology Tuned

Lack of Education

 

[muhammad kazim]

Making Decisions

What we DO is based on what we BELIEVE
Therefore, if we BELIEVE the wrong thing, we DO the wrong thing.

 

[muhammad kazim]

One way to acquire discipline in trading

I believe discipline can be learned, although at times it is very painful. When I began trading, I was a very undisciplined person. But trading and the markets forced me to become disciplined. Was the discipline already there and just needed to be extracted? Or did I actually learn it? I can’t truly be sure.

 

[muhammad kazim]

Don’t Deny Reality

you want to be a successful trader, you must make sure you do not deny reality in any phase of your trading. You cannot deny losses, price direction, mistakes you make, being undercapitalized, or a whole host of things you would rather not think about

 

[muhammad kazim]

Start Trading: Throw Those Excuses Out the Window

"I don’t have time"
I don’t have the money"
"It’s too risky"

"It’s too complicated

 

[muhammad kazim]

Start Trading Real Money Early

The limits of demo trading

Pitfalls of going live
Learning from the jump

Conclusion

 

[muhammad kazim]

The Importance of Trading Time Frame Assessment

Trading requires time in a couple of ways. The first is the time dedicated to developing a trading system


The basic decision one has to make is in what timeframe the trader can reasonably expect to operate on a consistent basis. The individual must be able to do all the data gathering, research, market analysis, trade execution and monitoring, portfolio management, and any other functions required of her or his trading system

 

[muhammad kazim]

New Trader Pitfalls

Avoid Errors in Order Entry!
Use Only Risk Capital
Start With Enough Capital
Trade Small!
Avoid Trading Too Often