|
The good news is that enough traders who were part of a large
test group successfully followed the S90/Crossover c
and extreme level (EL) instructions, including the applications,
while using proper protection to validate the duplication of the
procedural methodology. The success of traders within the study
group gave me the encouragement and motivation to share the
trading approach and applications with those traders who
sincerely want to attempt to increase their odds of having
success trading the forex.
Here are seven suggestions and points of advice to consider:
1. Follow the rules of a simple trading approach. Keep it
simple.
2. Accept responsibility for personal decisions and actions in
the market. No one—and
no methodology—is responsible for your interpretation of the
market.
3. Make sure you trade a demo or play money (paper trade)
successfully before moving
into the world of live trading. Once you are ready to trade
live, then consider trading
on a live mini account, with a very small amount of deposited
margin to ease into the
world of live trading. It is not only an emotional learning
experience to gain control
of but sometimes a very stressful event in one’s life to move
from trading demo
money to trading live money. Once you have achieved success with
a small live mini
account, then you can move on to the larger standard accounts,
where risk becomes
greater as well as potential profits.
4. Establish a live account with a broker who is known for
integrity. Brokers who play
games such as holding trades in order for the market to have
time to turn in order
*Disclaimer: Trading the foreign exchange market carries a high
level of risk and may not be suitable
for all investors. Before deciding to trade the foreign exchange
market, you should carefully
consider your investment objectives, level of experience, and
risk appetite. The possibility exists
that you could sustain a loss of some or all of your initial
investment; therefore, you should not
invest money that you cannot afford to lose. You should be aware
of all the risk associated with
foreign currency exchange trading, and you should seek advice
from an independent financial advisor
if you have any doubts.
to capture your money for their gain are not playing a fair
game. Reputations follow brokers who hold markets during slow
and fast moments of volume.
Note: Always plan a trade that has more than a scalper mentality
of gaining only 1
to 5 pips. This way, the broker has ample time to cover a
submitted trade or pass it on through to a bank or
clearinghouse. Data feeds are different for most brokers,
depending on their source, and you should allow a broker a
little chance to make money as well. After all, without a
broker, the opportunity to trade in the markets would be very
expensive. More will be offered on this value and need for
brokers within the industry.
|
 |
5. Invest in personal education before trading the
forex, even if you have experience
trading other markets. The forex is a totally different type of
industry, with much
more volatility than other markets. When selecting a firm or
mentor to assist you in
developing the skills necessary to survive your initial years
trading the forex, and
as you develop those skills, make sure the mentoring person or
company is walking
the talk. Many mentors teach but do not trade, and this may not
be the best way for
you to learn. A legitimate mentoring company or individual not
only is trading live
but is in a position to provide ongoing free daily support along
with a proven track
record of success to back up the ability to teach. Good mentors
will have on file,
for anyone to review, copies of documented live trading
histories from students that
they or their organizations have trained.
6. The greatest distance to overcome in each trade is found
between the ears. I feel attitude
is everything in the markets, and that is why I have placed so
much emphasis on
becoming a string trader. Many have told me that the truth comes
out about yourself
when you learn how to trade. You may learn much more about your
self-discipline as a forex trader than you have ever realized if
you keep an open mind as you pay your dues of time and practice.
More will be covered in future chapters on why you should strive
to be a string trader and how this may straighten out issues
regarding lack of discipline in the market.
7. You must persevere in the market, never giving up while
learning and paying the dues of time. It is necessary to just
hang in there even if it takes years trading a demo and a live
mini account before you are ready to move into the world of
standard account trading. All too often, traders go live way too
soon and lose their money because they skipped the necessary
steps of paying the dues of practice, spending time in the
market, as well as just growing and finding out who they are.
Trading definitely will reveal something about yourself that you
may have never known.
Reminders of the preceding statements are included at the
beginning of some chapters, to help keep you on track regarding
the focus and caution you need in the marketplace. |
