WALKING AGAINST THE CROWD
“Watch out! Be on your guard against all kinds of greed; a man’s life doesn’t consist of the abundance of his possessions.” – Jesus Christ
Hello:
Necessity is the mother of invention. The ideas and methods used by successful traders have been tried and tested in the heat of the market. They’ve even been used by hedge funds to develop their trading strategies. Yes, your future survival on the markets depends on the trading principles that work.
The best trading strategies are the ones that survive all market conditions. When a sensible risk-to-reward ratio is applied to a system, survival is possible even with a random price series which can contain protracted losing streaks. Reality based studies of price behavior show that prices move up from demand zones and fall from supply zones. Based on this conclusion, rule-based trading methodologies are invented to improve the near-term trader’s survival odds when speculating on the markets. The near-term trader reacts by going long at demand zones and taking short trades at supply zones. This is much better than any game you’ll ever play in
Good trading experience, I believe, should make a trader survive any unpredictability and uncertainty on the markets. Many trading systems can actually survive on the markets providing that effective risk management principles accompany them. While there are traders who get mad because of a losing streak, real experts go thru losses, doing everything possible to minimize drawdown, and always keeping a positive spirit. Serious-minded experts aren’t in a hurry to make hundreds of percentage in a short period of time. More haste, at times, equals to less speed. The more people are in a hurry to make money, the less money they make – it’s simply a matter of one step forward, two steps backward.
Looking Forward to the Year 2011
We’re now looking forward to the next year. An individual trader needs to evaluate their trading results this year, learning from past mistakes and strategizing for the new year. You got to walk against the crowd if you’d make nice profits next year (the majority of market players are losers). When it comes to popular opinion, genuine traders have the courage to walk against the crowd. My past articles have dealt with popularly preconceived trading ideas – a snare to beginners!
Accept the truth about trading and incorporate the secrets of master traders into your trading plans. Shouldn’t you begin to take care of your own financial destiny? It’s possible for you to follow winning trading styles, manage your own account and eventually make some profit. Don’t expect huge returns, but small consistent monthly or bi-monthly returns can turn into very nice profits over time.
You might also like to benefit from my trading activities by following my trading signals and watching my accounts(s) as I place trades. By doing this, you can manage your portfolio effectively. You can subscribe to a free one-month trial here: http://www.fxinstructor.com/en/analytics/ituglobal
The EURUSD-USDCHF strategy, which brought good profits in the past, is being modified to generate such signals on EURUSD, EURNZD and EURCAD possibly by the end of January, 2011. It’s therefore going to be a swing system having the features below:
1. A risk-to-reward of 1:2
2. Maximum of 5 trading signals on it per week
3. Past results displayed
4. Less spread paid
5. The use of 0.01 lots per $1000 recommended
6. Only 50% accuracy needed to move ahead
7. NFA-compliant
8. A simple directional/reversal strategy
9. Long-term survival
The market is now in a period when skills matter more than fluke. The period of December – January requires good skill. Anyone who can survive it is definitely a good trader. You need to be reading my articles in order to keep breast of trading facts.
A surprise awaits you soon!
NB: Recent trading results of one popular funds manager would be displayed on Friday: with great lessons.
Some good words of advice from Louise Bedford (a successful professional female trader) end this article:
1. “You can learn how to trade as a full-time occupation or alongside your other activities, wherever and however you like. Develop the skills to trade effectively and no one can ever take them away from you.”
2. “People generally quit their job prematurely to become full-time traders. There are no guarantees in this game. Even though trading for a living offers unparalleled freedom, make sure you have profit. However, there are other times when the market is a volatile beast, where neither your long trades nor your short trades will make you money.”
3. “If you judge yourself by the money you make, your self-esteem will be forever joined to your sharemarket profits and you’ll be tossed around by the vagaries of the markets. Your goal should be to be the best trader. Your goal should be to be the best trader you can be. You should be aiming to develop and follow your trading plans with complete obedience. You should be developing your mind, and hurling yourself at your education.”
Your questions and opinions are highly welcome.
Thank you.
With best regards,
Azeez Mustapha
Forex Signals Strategist, Funds Manager &Coach
Senior Analyst
FX Instructor, LLC
Email: amustapha@fxinstructor.com
Get my Forex trading signals at: http://www.fxinstructor.com/en/analytics/ituglobal
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