Understanding of Technical Analysis
This is where most traders fall to truly put their effort.
Most FX traders opt for the shortcuts because they want to make money fast. They erroneously think that this market is simple and should propel you into stratospheric money making in weeks. Not so; most traders can see the market (after the fact) but make the mistakes of not understanding the why of the market move and concentrate on just getting an entry and then clicking their profit out way to soon.
In order to successful you have to learn to:
“Let your winners run and click your losses out early”.
Unfortunately, for the vast majority of traders it is just the opposite. We let our:
“Let our losers run and click our winners out early”
It’s because, for most forex traders it’s a combination of the emotions of Fear, Greed and the Lack of knowledge in analyzing the market. Fear and greed will tackle when we look at psychological factors that play in trading. Most novice traders don’t know where the market will go so they take any small profit just so they can have a winner. Sound familiar, right?
If you take only 5 pips on trade and then accept one loser 30 pip stop, it takes you 6 trades in a row “just to break even”. You have to trade at 90% more to stay ahead of this losing curve.
So what the real Traders exactly for know “Where the market should go?” We will talk soon.
Most FX traders opt for the shortcuts because they want to make money fast. They erroneously think that this market is simple and should propel you into stratospheric money making in weeks. Not so; most traders can see the market (after the fact) but make the mistakes of not understanding the why of the market move and concentrate on just getting an entry and then clicking their profit out way to soon.
In order to successful you have to learn to:
“Let your winners run and click your losses out early”.
Unfortunately, for the vast majority of traders it is just the opposite. We let our:
“Let our losers run and click our winners out early”
It’s because, for most forex traders it’s a combination of the emotions of Fear, Greed and the Lack of knowledge in analyzing the market. Fear and greed will tackle when we look at psychological factors that play in trading. Most novice traders don’t know where the market will go so they take any small profit just so they can have a winner. Sound familiar, right?
If you take only 5 pips on trade and then accept one loser 30 pip stop, it takes you 6 trades in a row “just to break even”. You have to trade at 90% more to stay ahead of this losing curve.
So what the real Traders exactly for know “Where the market should go?” We will talk soon.
AUDNZD Technical Fundamental
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