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Saturday, August 20, 2011

Trade to Win!

“If I can’t do it myself, how am I supposed to help others?” - Clem Chambers

Hello:

The first few years of many traders are a series of spectacular vicissitudes. They risk big (You risk big when you use large position sizing. It doesn’t matter whether or not your entry method is correct. Low risk is small position sizing, not a correct entry). On many instances, some traders make great profits. During this period they tend to make, either by good luck or bad luck or something else, a decision that’s wise and another decision that’s foolish. Acting wisely, some traders would invest some of their gains in other ventures that can yield additional income. Acting foolishly, some traders become overly concerned with multiplying their capital many times. Many won’t accept this until they experience the fact, and when it happens, many kind of obstacles may come in and they’ll begin to experience serious roll-downs. Eventually, a trader may come to terms with this novice behavior – trading for financial rewards rather than flawlessly executing one’s trading plans and setups. Profit and loss will take care of themselves if you can do this. If you know this fact, you could quit your conventional job and become a full time trader. This is easier said than done, for there would be a period of time in your trading career when you’d doubt the sense in being a full time speculator. Majority of highly proficient traders blew themselves in the past (when they were still novices).

Can you be a successful trader? Can you trade to win? The answer is a big YES. No matter what happened to you in the past or what may be happening to you now, you can be a competent trader.

You just need to have modest and realistic expectations. You just need to have an effective setup that works at least 50% of the time. You’ll then use a good risk-to-reward ratio of at least, 1:2. With very small lot sizes, you’ll then use risk control measures to safeguard your capital in an event of a series of losses. You’ll always be a winner – no matter what happens in the markets.

You need to believe you can be a competent trader. You can move from the level of failure to the level of competence in trading. You’ve the potential to win most of the trades you make. You just need to follow your rules and use small position sizes as appropriate for your long-term survival. You can take your financial destiny into your hand and manage your portfolio(s) successfully.

To achieve the level of competence you need, you’d only take high probability setups in keeping to your strategy. This strategy must’ve worked well in the past. Then you must imagine your trades as they head to your targets. Imagine seeing price movements going in your direction. Imagine yourself being satisfied as you hit the buttons to open and close trading positions. Imagine yourself saying, "Great trades. Wow!" when you see yourself in the green. You need to be disciplined enough to stick to your strengths while you contain harmful feelings of worry, dread and avarice. You need to put your focus on being the best trader you can be. Think of yourself as being result-driven and your trading ‘genius’ would be awakened. Look for setups, according to your trading rules and exploit them adeptly. You should be aware of the time you’ve to trade alongside the price actions and get satisfied with your gains.

You must confirm your trading belief by surviving and profiting consistently in the markets. Take all trading setups that come up according to your rules; for you don’t know which setup would be a winner. Irrespective of the uncertainties of the financial markets, you can be a triumphant trader. You can trade to win.

What about me? With effective risk control, I’ve removed margin call from my trading glossary. I made serious efforts to survive my learning curve, but I had a great time evolving as a skillful trader. I wouldn’t trade that experience for anything! The rewards I received far outweighed the sacrifice involved.

NB: Please watch out for my coming articles with these titles: “Mastering the Market Equilibrium Zones,” “How I Apply Risk Management – Part 3,” “Testimonies from My Subscribers,’ ‘Excellent Money Management Flexibility – Make the Best Choice!’ ‘Resist the Lure of High Risk – Part 3 (Use Low Risk and Reap Benefits),’ ‘Worst-case Scenarios – Facts Are Sacred,’ ‘Effective Swing Trading in Forex,’ ‘Advanced Gap Trading – Trading with Insane Accuracy,’ ‘3 Recent Gap Trades,’ ‘Developing the Right Attitude towards Losses - Part 3(Losses Aren’t Abnormal) ,’ ‘The True Holy Grail – The Long Sought for,’ ‘Suicide Trading Techniques,’ ‘Achieve Success through Sensible Risk-to-reward Ratio (An Interview with a Trading Enthusiast),’ ‘ Clarifying Some Issues – Part 5,’ ‘Optimization of the USDCAD Hedging Strategy – Bringing the USDCAD to Subjection,’ ‘A CHF Breakout Strategy,’ ‘Overview of My Signals Strategies,’ ‘The Cost of Discipline,’ ‘2 Examples of the USDCAD Hedging Trades,’ ‘Is It Realistic to Give Guarantees in Trading?’ ‘Monthly Trading Report (Augsut 2011),’ etc.

This article is concluded with these quotes:

1. “When starting out, the world of Foreign Exchange can seem like an environment of unlimited opportunity. Long trends, large moves, rapid changes in prices will appear as opportunities. It’s only when trying to harness those moves, which with hindsight seemed so easy, that you probably found the tough bit of trading… What’s of particular interest is the same challenges exit regardless of continent and culture.”Steve Beaumont

2.It is vital for us to acknowledge that our own behavior and actions are the true catalyst which drive our results, not the behavior of the market, for the market is simply too great a force for anyone to control. Defining your rules effectively defines your behavior, which in turn dictates your actions. Your actions are then what lead to your final results.” - Sam Evan

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

Yahoo! Messenger ID: saazalmu

Are you facing any challenges in trading? You might want to explore the secrets of markets wizards and duplicate their success. Get the secrets from my past articles at:

www.fxinstructor.com/blog/author/amustapha

www.fxinstructor.com/blog

Get my Forex trading signals at: http://www.fxinstructor.com/en/analytics/ituglobal

And my past articles are also available at: www.ituglobalforex.blogspot.com

NB: There is risk of loss in trading, but it is possible to be a successful trader.

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