Most forex traders lose and the reason they do, is they don’t understand the simple equation for forex trading success enclosed in this article. So learn it as part of your forex trading education and get on the road to currency trading success.
Here is the equation and we will discuss its significance in a moment.
Robust Logical System + Confidence in = Discipline to Apply = Forex Trading Success
Now that’s nice and simple - but most traders fail to understand it’s significance.
Of course, some traders simply get the wrong forex education, try and apply it and lose - here are some common beliefs of losing traders:
- Believing forex day trading or scalping works
- Believing prices move to a scientific formula
- Trying to predict forex prices in advance
- Trusting their money to a forex robot with a simulated, paper track record
Believe any of the above and you will lose at forex trading.
To win you must understand that having a logical robust forex trading system is not enough, you have to apply it with discipline.
This means you must have confidence in the logic, because you are going to have to apply it with discipline and remember - if you can’t apply your forex trading system with discipline, you don’t have a system!
Most traders hear about the word discipline but have no idea what it means and how important it is and it’s a hard trait to acquire.
You need to hold your discipline when your trading system is taking loss and after loss (this happens to even the best traders) and keep executing you’re trading system with discipline.
In a famous experiment, Richard Dennis taught a group of traders who had never traded before to trade and he did it in 14 days.
The trading system taught was basically simple (a long term breakout system) but Dennis didn’t just tell them to follow it blindly - he taught them to have confidence in the logic, so they would have the discipline to apply it.
The result was stunning - these traders made over $100 million dollars in just 4 years and went down as trading legends.
When Dennis taught the group, he knew the importance of mindset and sticking with a plan through short term losing periods, to make long term profits and you must to.
Discipline is not easy, but if you get the right forex trading education and have the right mindset, you can enjoy forex trading success and you will be doing what over 90% of traders fail to do.
The rewards in forex trading are huge and you can generate a great second or life changing income, you must however be prepared to take your losses to get your profits. All successful traders know this and you must to.
Mental + Risk & Money Management + Method = Success
Get the information, visit : http://betrastrade.blogspot.com/
Tuesday, June 22, 2010
Monday, June 21, 2010
Why Forex Trading is not Easy and How You Can Win if Your Learn This Fact
If you read a lot of the material online you would think forex trading is a walk in the park but the facts state that 95% of traders lose their Money. To find out if you have what it takes to succeed read on.
Let me first start with story which involves a group of ordinary people who were taught to trade in 14 days and then went on to make $100 million in 4 years.
The above was an experiment conducted by trading legend Richard Dennis. He wanted to prove anyone could win at trading and that traders were made not born and he did it in spectacular fashion.
Now how did this group become so successful and do it in 14 days?
What Dennis knew was that in trading - you CANNOT give someone success, success comes from within. Further explanation will make this clearer.
Dennis knew that he had a good system and it was very simple - but if he just told the traders to follow it they would lose - Why?
Because as soon as they hit a strong of losses, they would not have the confidence to keep executing the system and if you don’t have the discipline to execute a trading system, you don’t have one!
He therefore made them learn all about it and didn’t just ask them to follow blindly.
He showed them how it worked and why it worked, so they would confidence in it and have the discipline to trade through a losing period, until they hit a home run.
Contrast this with most of the people who start to trade forex. They tend to want to follow others and buy systems from vendors which are mostly junk - but even the few good ones out there; they can’t follow, because discipline breaks down.
Of course you need a sound logical method and to avoid all the myths perpetrated online, this is really only half the battle though, the other half is in your head - keeping emotions out and maintaining disciplined.
Many novice traders fall for the myth you can avoid losing periods or only have them now and again but any seasoned trader knows they can last for many weeks. Sure you can win, if you stay disciplined but this is hard, when the market is handing you loss, after loss and making you look a fool!
If you think discipline is easy, you haven’t traded! Its hard and discipline is really what separates the winners from the losers.
So the moral of this bit of forex education is - anyone can learn to trade (Richard Dennis proved this in spectacular fashion) but its not easy and you wouldn’t expect it to be, with the rewards on offer.
If however you understand the above and you are prepared to work smart, avoid the myths and get confidence in what you are doing, you will have the disciplined mindset to go and seek a great second, or even life changing income.
Forex trading is a challenge but the market doesn’t defeat the trader, the trader defeats himself.
So you can be a winner at forex trading if you want to and that’s great news for anyone who seeks currency trading success.
The package is Betras Swing Method. It works for me, it should work for you…
Get the information, visit : http://betrastrade.blogspot.com/
Wednesday, June 16, 2010
Forex Tutorial
Forex tutorial is the first thing that a beginner should look for before making real trades in the forex market. This is the most basic thing to do in order to succeed in forex otherwise; the chance of losing will be dominant. Forex training is an excellent foundation to learning everything about forex - how it works, how you can make money, and how to make real good trades. Without proper know-how about the inner workings of Forex, there is no way that you can prosper and make money from it. So, if you are serious about venturing in this lucrative market, be sure to get a good forex tutorial.
Through good forex training, a beginner can understand basic trading skills and strategies. More than that, he or she will be able to analyze forex currency trends and all other essential information. Getting a forex tutorial is important to anyone who wants to make it big in the forex trading world. However, the problem is finding the best forex training. With the many forex courses, tutorials, and forex classes offered out there, deciding which one can be a daunting task. So, it is a must that you take careful research on which forex tutorial will meet your needs and will provide you a solid ground in forex trading.
The fact that forex trading is a complex market; one needs a good forex tutorial to go about with real trading the most profitable way as possible. Forex market deals with real time and instant decisions are a must. This means that traders need to be armed with sheer knowledge and skill in order for him to make sound decisions and avoid losing massively. A forex training is not completely beneficial on its own. One’s eagerness to learn and intelligence play a great role in winning and earning in the forex trading market.
Most successful forex trader started from the basics of Forex Currency Trading. Anyone who wants to enter the world of forex must understand the ins and outs of the market. This is the key to profit and succeed in Forex. But how can you do this? Well, the answer is by taking a good forex tutorial. Get the best information on forex tutorial here. It is not easy to find excellent forex tutorial these days. This is the reason why we are here to provide you valuable information on the importance of learning forex basics thru tutorials. Get tips on how to choose a good forex tutorial and know what you can learn from them.
The package is Betras Swing Method. It works for me, it should work for you…
Get the information, visit : http://betrastrade.blogspot.com/
The Right Forex Education Really Pays Off
Currency trading can be a lot of fun and can make you a lot of money if you know what you are doing. Trading currencies is not only a nice alternative to stock investing, but it seems to be easier to learn and getting involved in. However, before your get into the forex market, you should seek out the best training possible.
While some people leap into FX currencies before they learn to crawl, you will make the most money by learning as much as you can before you take the real-world plunge. This training is the foundation to your success and will propel you forward into unlimited possibilities.
People are making a lot of money trading currencies. It is exciting to watch your investments grow as the currency values shift in your favor. However, it can also be an emotional rollercoaster ride when the currencies start fluctuating. Learning to managing your emotions is one of the keys to successful trading. This is something that all successful traders have in common.
Currency trading can be described as an activity in which people from different countries trade on the value of money. Each country’s currency has a different monetary value on the world market. As these values are influenced by world economics, the exchange rate also changes. If you are a trader, these differences can either make you money or cause you to lose money.
It is important to learn as much as possible before you trade real money. Start by searching the Internet on the subject of forex trading. You will find many websites devoted to teaching you all of the basics. Some are free to join while others may require a small fee.
Libraries and local colleges are also solid sources of information. Many community colleges have financial curriculums offering forex courses. Unlike the library that provides free sources of information, learning the forex market under the training of an instructor gives more advantages to learn the dynamics much faster such as Q &A and hands on training.
You forex training should cover all the basics of currency investing. This means learning the dynamics of the markets and how they change as well as what influences those changes. A good course should also teach you all the tools and strategies used by successful traders so you can manage risks properly. This involves learning how charts and signals work as well as the fundamentals of using these tools for maximum profits.
A good forex education should provide you with a demo account that you can use to practice on. Demo accounts are great for giving you experience in the real world of trading without using real money. Additionally, these types of account will teach you the basics of how to open a forex account. Once you are confident in your ability to trade, go live with real money. Start slowly and build up over time.
by Franks Nieves
Apply Knowledge When Taking Part In A Forex Trading
Taking a Forex trading course and what is involved are simple steps that can be taken to master strategies and methods in which a person can benefit and practice to build their trading business. Trading can be challenging, but any person can pick up the skills required to be successful, even though they were not born knowing how to trade.
As long as a person is willing to open a brokerage account and put up an investment of 100 dollars, the market of forex trading is open to anyone. Getting the education of trading will provide basic knowledge that will enable one to begin. When a new trader learns what should not be done in the markets, it will help prevent situations that could be detrimental to a growing career.
At the same time, training will give useful advice on what one should do, including practicing patience, studying, being humble and keep away from gambling. Those who take a trading course will grow in ways they never thought possible. Forex can be rewarding and exciting as well as materially enriching. Having power such as this takes some time to achieve, but it will happen for anyone desiring such advantages.
Even though many have little or no interest in currencies of different kinds, it is almost inevitable that the value of the U. S. Dollar will be a topic of conversation among certain groups of people. Chances are, many have participated in trading currencies without realizing it when one visits another country and has to trade their money in order to spend within the country they are occupying.
The Forex market is just another name for the currency market and is defined as being the comparisons of one money value to another currency value in different areas of the world. When traveling, one has to exchange their currency for another, making them traders already. They are also aiding in the quote creations that are provided through the media every day. International trading that banks are involved in are just the same as the trading that is done when a tourist exchanges their currency for another.
Reading price quotes in Forex trading will be one of the many important things one will learn by taking a course. Trading can only be successful when done in pairs or two different currencies. One currency cannot be funded by the use of the same currency. It must be different in order to be considered a trade. A successful trade will result in the creation of a Forex quote.
There are various types of currencies, which a student will be versed on in a trading course. When one learns how to read values, this information will be used to aid in their success. These values will change from time to time, depending upon the economic environment and government policies of a country. The art of detecting such factors will help considerably when trading.
Monies are divided into four classifications or categories. These include Commodity Currencies, Reserve Currencies, Exporter Currencies as well as High Risk, High Deficit and High Yield Currencies. Currencies from Turkey, Europe Brazil, Russia, Canada, China, Japan and South Africa are those in which both small and large traders take interest in. In taking a trading course, one will be able to decipher the differences in monies from various places.
Wise choices made when trading will be of the utmost importance and will have the best outcome by one who has taken a Forex trading course. Success and failure cannot be measured the same across the board. It will vary from person to person and whatever works for one should be the very route one should take. For some, who do not benefit by using certain formulas in trading, it would be best to stay away from those particular methods.
Some trader might choose to just become a mechanical trader that trades using only one very effective and reliable method with a strict discipline on the risk and money management. Even so, it is imperative for a mechanical trader to trade with sound basic knowledge in Forex. Those knowledge must be learnt and applied throught the trade activities. Decision making process for any trader should always have a concrete foundation in forex knowledge.
The package is Betras Swing Method. It works for me, it should work for you…
Get the information, visit : http://betrastrade.blogspot.com/
Tuesday, June 15, 2010
Prince of the Pit - Richard Dennis
Richard J. Dennis, a commodities speculator once known as the "Prince of the Pit,"[1] was born in Chicago, in January, 1949. In the early 1970s, he borrowed $1,600 and reportedly made $200 million in about ten years. When a futures trading fund under his management incurred significant losses in the stock market crash of 1987 he retired from trading for several years.[2] He has been active in Democratic and Libertarian political causes, most notably in campaigns against drug prohibition.[3]
He became an order runner on the trading floor of the Chicago Mercantile Exchange at age 17. A few years later, he began trading for his own account at the Mid-America Commodities Exchange, an entry-level floor where "mini" contracts were traded. To circumvent a rule requiring traders to be at least twenty-one years of age, he worked as his own runner, and hired his father, who traded in his stead in the pit.
Dennis earned a bachelor's degree in philosophy from DePaul University, then accepted a scholarship for graduate study in philosophy at Tulane University, but then changed his mind, and returned to trading. He borrowed $1,600 from his family, which after spending $1,200 on a seat at the Mid-American Exchage left him $400 in trading capital. In 1970 his trading increased this to $3,000, which he described as "compared to $400 ... a real grubstake", and in 1973 his capital was over $100,000. He made a profit of $500,000 trading soybeans in 1974, and by the end of that year was a millionaire, just short of twenty-six years of age.
Dennis profited, as he bought successively new weekly and monthly highs in the trending inflationary markets of the 1970s, an era of repeated crop failures and the "Great Russian Grain Robbery" of 1972, when agents of the Soviet Union secretly purchased 30% of the U.S. wheat crop in the space of a few weeks. This set the stage for solid, sustained price trends in both directions for the next several years, a period in which "anyone with a simple trend-following method and a dart board could make a million dollars".[1][4]
In contrast to the vast majority of floor traders, who quickly scalped trades throughout a trading day, Dennis held positions for longer periods — riding out short term fluctuations and holding over the intermediate term. Dennis often pyramided his positions. In the late 1970s he bought a full membership at the more expensive Chicago Board of Trade and opened an office upstairs in order to trade more markets.
Dennis believed that successful trading could be taught. To settle a debate on that point with William Eckhardt, a friend and fellow trader, Dennis recruited and trained 21 men and 2 women,[5] in two groups, one from December 1983, and the other from December 1984. Dennis trained this, known as Turtles, for only two weeks about a simple trend-following system, trading a range of commodities, currencies and bond markets, buying when prices increased above their recent range, and selling when they fell below their recent range. They were taught to cut position size during losing periods and to pyramid aggressively - up to a third or a half of total exposure, although only 24% of total capital would be exposed at any one time. This type of trading system will generate losses in periods when the market is rangebound, often for months at a time, and profits during large market moves. Then he gave each of them a million dollars of his own money to manage. When his experiment ended five years later, his Turtles reportedly had earned an aggregate profit of $175 million.[6] The exact system taught to the Turtles by Dennis has been published in at least two books and can be back-tested to check its performance in recent years. The result of such back-test shows a drastic drop in performance after 1986, and even a flat performance from 1996 to 2009[7]. However, a number of turtles (eg. Jerry Parker of Chesapeake Capital, Liz Cheval of EMC, Paul Rabar) began and continued careers as successful commodity trading managers, using techniques similar but not identical to the Turtle System.
Dennis managed pools of capital for others in the markets for a while, but withdrew from such management in the spring of 1988 after his clients suffered heavy losses. In the Black Monday stock market crash of 1987, he reportedly lost $10 million,[8] with a total of $50 million reportedly lost in 1987-88.[2] In 1990 his firm settled investor complaints of his failure to follow his own rules, for over $2.5 million, without admitting or denying any wrongdoing.[9] He also managed funds for some time in the mid and late 1990s, closing these operations after losses in the summer of 2000.
Dennis has published op-ed articles in The New York Times, The Wall Street Journal, and the Chicago Tribune. He is the president of the Dennis Trading Group Inc. and the vice-chairman of C&D Commodities, a former chairman of the advisory board of the Drug Policy Alliance, and a member of the Board of Directors of the Cato Institute.
Reference : http://en.wikipedia.org/wiki/Richard_Dennis
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