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Forex - You Need A Real System! Although it has been some years since I was
actively involved in trading, I have just returned to the markets and have
begun to trade a small account on my own behalf. This has perhaps given me a
slightly skewed perspective of the markets, almost like a new entrant, but
one with a lot of experience.There have been some big changes whilst I have
been inactive, not least in the number of online brokerages fighting for
every dollar.But many things stay the same, at the heart of which is one, I
guess, unbreakable truth. Trading is basically a very simple business, with
any trading stocks, options, FOREX, whatever only really involving three
steps:1. Find several possible trades evaluate them and decide which to go
for,2. Calculate how much to trade, and decide at what points to enter and
exit the market3. Keeping an eye on, or monitoring, open market positionsNow,
these three steps were basically all there was to it a few years ago, and
they still And, guess what, people are still getting totally bogged down
right here, at this early stage of the trading process, generally, for one
of two reasons.The first possible reason is that they simply are not aware
that these are the steps involved in the trading process, or (the second
reason) they have no clearly defined rules for actioning these steps. Thus,
less experienced, more nervous, traders can often take hours to evaluate a
small number of potential trades.Experienced day traders, on the other hand,
are fully aware that, with little time available to execute their trading,
they must have a process plan and they must stick to it.A day trader will
set out his (or her) plan of action something like this:1. Recognize the
opportunity, enter the market2. Stay in the trade for as long as possible if
it is going for him or3. Get the heck out of there with minimum losses, as
soon as it is clear it is going to go the wrong wayThat s it! That s
essentially what a day trader in any market was doing years ago, and that is
what a day trader is still doing today, with little or no change to their
working practices brought about by the vastly more advanced technology of
today.Savvy day traders learn very quickly that they must plan ahead of
time, so that they are in prime position to take full advantages of the
opportunities that occur in real time.Thus, day trading, which on paper at
least is a pretty dangerous and risky manner of working markets is, in fact,
one of the most disciplined trading schools! By the nature of market
movements and the way they operate, day traders simply cannot afford to run
their trading business on a wing and a prayer! |
