|
|
|
|
|
|
|
|
|
|
|
Success in any profession can be broken down into a number of critical factors. Trading is no different. Does your trading tick all 6 boxes or are there any areas you need to work on:
1. Do you have an edge? Trading futures is a zero sum game - you must have an identifiable edge over the other market participants. Have you identified a high probability pattern that can be exploited time after time? Remember though, the only constant in trading is change - you will have to constantly evolve your trading edge to stay ahead of the crowd.
2. Disciplined Execution. There is no point in identifying an edge if you can't execute the trade. Measure your trading success against your trading plan not the actual outcome of the trade. If you make a loss but you executed your trade exactly according to your plan than pat yourself on the back, don't beat yourself up over it.
3. Money Management. If your risk per trade is too aggressive then you run too high a risk of blowing your account, too conservative and you will not optimize returns from your system. It is essential to establish the maximum expected draw down of any system and set money management rules accordingly.
4. Have a Trading Plan. A trading plan will dictate what you will do in any given situation during the trading day. When the market is open you do not want to have to think - just concentrate on executing your plan. When the market is closed you need to be preparing for the next session to ensure you have a clear plan prepared.
5. Accountability. You are responsible for every trade. Ultimately the decision to put on a trade is yours. If your stop is hit and the market immediately reverses then you are responsible, not the 'big boys' gunning for stops - it happens, move on. If you get huge slippage on your trades then does your trading plan account for it or is your plan unrealistic for the market you are trading?
6. Commitment. Trading is not like a regular job, you don't pick up a pay check at the end of the month even though you did no work and spent the whole month surfing the web and emailing your friends. You must be committed to placing every trade according to your plan, even through the losing periods where every trade seems to end up a loser. Trading seems to throw up extremes of good times and bad times, you must not get over confident during the good times and you must not give up in the bad times - remember it is all part of the plan. You must set aside adequate time every day to compare your actual performance against your trading plan. You must be committed to continuous testing of new ideas and regular monitoring of your existing plan. Research into future ideas is essential - remember the only constant in trading is change.
Tim Wreford runs Online Futures Trading, a website that provides information and resources for traders. Tim also provides a free day trading system, the results of which are updated daily on the site.
Wind Chimes and more... Forex, or Foreign Exchange, is the simultaneous exchange of one... Read More For those unfamiliar with the term, FOREX (FOReign EXchange market),... Read More I received an email this week with a question (below)... Read More A Minister of Finance is morally right to lie about... Read More With currency trading becoming ever more popular, the number of... Read More Are you looking into a career in day trading? In... Read More Discretionary TradingPure discretionary trading will rely solely on the traders... Read More Since the US dollar is the centerpiece of the market,... Read More Long TermLong term traders will work from end of day... Read More Profitable day traders recognize that momentum trading is among the... Read More The following situation happens quite often to many traders. Look... Read More Foreign exchange market, or better known as FOREX, is the... Read More Forex option brokers can generally be divided into two separate... Read More Currencies are traded in dollar amounts called "lots". One lot... Read More We all know when you go on a trip to... Read More Countries devalue their currencies only when they have no other... Read More For the first time in several years the U.S. dollar... Read More Consider the following: As a trader you are in a... Read More There are lot's of Forex signals providers out there. New... Read More The Foreign Exchange Market ? better known as FOREX -... Read More Are you thinking of entering the fast-paced world of day... Read More What is Stocks Trading?Companies throughout the world issue new stock... Read More FOREX is the abbreviation for the Foreign Exchange market. FOREX... Read More What Is Commodity Trading?Commodity futures markets allow commercial producers and... Read More There is an old saying that the market is driven... Read More
Windchimes
for great gifts!
What is Forex Trading?
FOREX 101: Make Money with Currency Trading
A Fools Game
An Evaluation of the Devaluation
Choosing A Forex Broker
Exploring the World of Day Trading
Mechanical or Discretionary Trading - Which is Best?
The Major Players in the Foreign Currency Exchange Market - FOREX
Trading Timeframes
Day Trading Course or Day Trading Technique Seminar: Learn Day Trading Education
Disgruntled
Forex Trading
What are Your Options Regarding Forex Options Brokers?
The Seven Most Traded Currencies in FOREX.
How to Trade Currency
How Do Other Countries Devalue Their Currencies?
Is The U.S. Dollar About To Reverse Course?
The Nature of the Trading Business
Forex Signal, Forex Signals Advice
FOREX - Where Fortunes Are Made Everyday
Facts of Day Trading
Stocks Trading - Advantages and Disadvantages
A Beginner?s Guide to FOREX
Commodity Trading - Advantages and Disadvantages
How To Control Fear And Greed In Trading
IntroductionThe exchange rate refers to the value of the US... Read More
Cut your losses short and let your profits run. This... Read More
Since the US dollar is the centerpiece of the market,... Read More
One of the best kept secrets in trading is that... Read More
Over the past several years, the popularity of online currency... Read More
For those unfamiliar with the term, FOREX (FOReign EXchange market),... Read More
Q1: When you consider that the foreign exchange market has... Read More
As 90-95% of new forex traders lose money within the... Read More
Forex, or Foreign Exchange, is the simultaneous exchange of one... Read More
For the first time in several years the U.S. dollar... Read More
There is an old saying that the market is driven... Read More
For those of you who are interested in forex trading,... Read More
Could it be possible that you are staring right into... Read More
Below I will describe three basic principles that may come... Read More
Money management determines how much to risk on each individual... Read More
Most new traders tend to focus just about all their... Read More
FEARING LOSSESThere is a huge difference between being risk averse... Read More
The business world is a complex web of supply and... Read More
What Is Commodity Trading?Commodity futures markets allow commercial producers and... Read More
Throughout our course on futures trading, we have tried to... Read More
The following situation happens quite often to many traders. Look... Read More
When day trading the SP and Nasdaq futures, do you... Read More
I received an email this week with a question (below)... Read More
If you want to be a successful trader, you must... Read More
What is Forex Trading?Forex, or Foreign Exchange, is the simultaneous... Read More
Currency Trading |