Move from simple to complex. Select a single market (for example, USD / JPY), and read his story at least the last ten years (the more stories the better). Scroll to the price schedule trends, levels of support and resistance, see how to behave when the price approaches those levels.
Look at the schedule of the familiar and unfamiliar figures tehanaliza you and carefully examine the conduct of the course in these figures. Try to “hear the melody” exchange rate as the one shown in the chart price. Having done similar exercises on different scale charts (month, week, day, hour), you will discover a lot of useful patterns.
1. Own decisions. Trader – the man who is responsible for the results of its work at all one hundred percent. Therefore, a trader always has a game plan and make independent decisions. Only dissociated from the majority opinion, a trader can understand the correctness or incorrectness of his actions, but it is the key to successful trading. “If you ever find yourself tempted to seek out someone else’s opinion on a trade, that’s usually a sure sign that you should get out of your position” – Linda Bradford Raschke, stock and options trader.
2. Learn at their own mistakes. Carefully analyze not only their own profit, but not least, loss of position. The bitterness of loss is much less, if you knew your fault and, therefore, confident that they do not repeat the mistake in the future. Traders who can benefit from the work done over errors doomed to success. “As long as you learn something from a loss, it’s not really a loss” – Tom Basso, stock and futures trader.
3. Your system – your advantage. To win in the stock market game, you must have some advantage over other traders. This advantage is its own trading system was tested on historical data and showing a positive result. The trade system should not be difficult, so that it can be easily tuned to the constantly changing market conditions.”The more complex system than in the more components, so it is vulnerable,” – Dr Alexander Elder.
4. Discipline – the key of success. Many traders fail even with a hands dreadful weapon “- his own trading system. The secret to success is self-trader, and his ability to follow the signals of the system without passing moments of opening and closing positions. “If you break a discipline once, the next transgression becomes much easier” – Gil Blake, fund manager.
5. Reasonable risk – the risk allowable. In order to start trading, the trader must have some money initially. A professional trader risks only the money that he can afford to lose without financial ruin for themselves or their families. This is a trader to make sensible decisions, and cold-blooded, to enjoy freedom of thought. Therefore, first of all decide what amount of resources you’re willing to take risks in order to sleep peacefully. If you’re afraid of losing money – you are sure to lose them.
6. During the stop the loss of all traders know how important it is quickly identified and eliminated erroneous position. But remember, as hard to part with the native position, which you “prikipeli soul. Indeed, to close loss-making position – is to acknowledge his mistake, but whether you tell yourself: “Yes, old chap, this time I am wrong. Hope to turn the market on its side and stick to the growing losses – a luxury for the trader. Remember, not only the wrong one who does nothing. If you make a mistake, then just close the position, but do not try to improve all kinds of hedges. “The single most important reason that people lose money in the financial markets is that they don’t cut their losses short” – Victor Sperandeo, fund manager.
7. Let the profit increase. A professional trader never gets profit for profit, it is important that the forecasting of exchange rate changes, and only as a consequence, obtaining financial compensation. For a successful trade must withdraw profits only if your trading system is showing you this. Let the profits grow and you will reach the maximum result. “It’s not whether you’re right or wrong that’s important, but how much money you make when you’re right and how much you lose when you’re wrong” – Stanley Druckenmiller.
8. Correctly build trading pyramid. Do not forget to increase the open position if the market goes your way and you feel its right. The trick in building a trading pyramid is that each new addition to the position was less than the previous one. Only with such a pyramid average rate of your open position will allow you to wait with no loss of short-term rate movements against you. “You can be far more aggressive when you’re making good profits” – Stanley Druckenmiller.
9. Trade – a marathon for life. Treat speculative game as a serious case, you want engage in a number of years, with material and moral satisfaction. Newbie seeking deals with the first double or triple your account, to identify teenagers, run away from home to Hollywood to become a star of screen and, as a rule, suffers a defeat in the first months of work. Your goal – to learn to deal competently and become a true professional. Only in this case, you’ll reach a stable positive results.
10. Use the cyclical impact. Many events in the world is cyclical. Life as a trader goes through times of victory and defeat. Increasing the size of their positions during the synchronization with the market and reducing otherwise, you can make a positive result of trade. Skilful management of your account (money management) uses the most successful traders (if not all). “The idea is to lose as little as possible while you’re in a losing streak” – Victor Sperandeo, fund manager.