Deadly Trading Habits

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Deadly Trad forexcashbackcalculatorg Habits Failure to Stop Losses in Time Stopping losses cashbackforexbtc the first lesson any financial trader must learn because any good offensive strategy is based on proper defense East forex cashback in the forex Eastforexcashback, misconceptions and human habits lead us to always let our losses widen Successful forex trading, like successful life and business, is determined by the level of control we have over our losses. If you really want to be a smart forex trader you must master how to make losses smaller and how to look at them correctly, this is the key to success In fact, it is not difficult, we have all the resources to solve this problem, and to activate these resources, we need to be determined to follow the discipline and instructions of the trading system We have to learn the spirit of Murphys Law, always be prepared to prevent Never start a trade in haste before deciding where you should exit, cashback forex is, never start a trade without setting a stop loss, think of a way back, then move forward. This may seem very easy, but only few traders with ambition and will power have the self-discipline to meet this requirement. After all, to stop out is to unmistakably admit that ones initial judgment was wrong. They are able to do this because they have developed a sense of intolerance for positions that are not valid, and will understand the existence of these positions as soon as the wrong signal comes out and will never hold the wrong position. By cutting the psychological problem in half, Forex traders usually gain a greater degree of clarity and mental focus, when their mindset returns to neutrality and balance, so they can think and make decisions on their own. The problem of what to do with the remaining positions still exists, but because some of the positions have been closed, a neutral psychological attitude emerges and it becomes easier to come up with a viable solution to the problem of caring too much about profit and loss itself. So, he finds it necessary to keep a certain distance from the market. If you sit in front of the computer and constantly monitor how the exchange rate rises or falls, then this behavior will eventually take away your long-accumulated trading profits. This process is often called "counting money", in which the trader is hypnotized by fears that penetrate deep into the subconscious mind and heighten the uncertainty in the consciousness at every moment, making it impossible to focus on the correct trading strategy, which will ultimately determine how much profit we can make. The "following the market trend" will lead to unwise, uninformed, subconscious and impulsive reactions traders must be sure that their current trading behavior and position direction is in line with the current market trend as long as they follow the market trend, profits will come naturally "counting money "The habit of "counting money" is often the fault of beginner traders. This behavior not only shortchanges the traders considerable gains, but also contributes to a persistent sense of uncertainty and fear of loss, an emotion that can lead to destructive trading behavior. Every trade you make should have an entry point and two exit points (i.e., a stop-loss position and a stop-win target) Stop-loss is for protection and stop-win is for profit. If you are a trend-following trader then you are better off using a trailing stop as a combined stop-loss and stop-win tool and only sell when your position reaches a stop-loss or stop-win point, whichever happens first. In this way, you satisfy your desire to sell, while preserving the integrity of your trading strategy. In multiple time frames, many market participants make a very common mistake: buying in one time frame and selling in another time frame The problem of "switching" time frames is just a reason to ignore the stop loss, which is our only protection against disaster. By switching from one time frame to another, traders postpone the ultimate feeling of being a loser by masking their failure with a flimsy plan, paralyzing themselves into a state of fatal denial by fostering false hope. Ultimately, the timeframe shift mistake will erode the traders resolve, deprive them of the ability to think and act freely, and relegate them to the status of tragic victims forever. Generally speaking, if you buy in a time frame, you must set your sell point in the same time frame. You can sell in a lower time frame, but you cannot decide to postpone selling in a higher time frame, that is, the time frame for selling is lower than the time frame for buying, but not higher. If you try to widen your stop loss/then this is usually a major signal that you are going to make the mistake of switching timeframes, adjusting up to protect your gains is fine, but adjusting down loses its meaning and makes you more reluctant to do what you intended to do. Once you take this action, you will do it again and again until the stop loss loses its ability to protect you from catastrophe by waiting for the market to fully confirm your judgment. Where there is more action the money market is ahead of the game and the big profit opportunities always appear before the facts are fully revealed and those who try to know the exact direction of the market before making a trading decision will always be one step behind and always on the wrong side of the curve. The point here, reader, is that by the time you know all the facts, the opportunity has run its course. Waiting for the market to fully confirm your judgment" is a deadly trading habit, a mistake that makes traders not act when they should and encourages you to act precisely when you shouldnt. We play with probabilities, not algebra, and traders who dont trade until all the facts are clear will never succeed. Dont wait until the market has completed its judgment before entering in Forex trading. When you find yourself hesitating because you want to know more, stop immediately and ask yourself, "Is what Im looking for necessary for trading, or am I just looking for a more comfortable feeling?" This question will put an end to the hustle and bustle of pretentiousness. In todays Chinese stock bull market environment, everyone thinks they are Warren Buffet. Unfortunately, every trader eventually has a hard time realizing that a string of wins usually reduces his or her own awareness, when complacency has taken over the center of thinking The vast majority of novice traders dont understand this because they dont realize that when profits have been made for a significant period of time; some of the characteristics of the market environment that they are familiar with are about to change. In fact, in many cases, the market environment and the opportunities it presents have changed. The inexperienced trader becomes complacent, raises his chips and gambles without realizing that the environment that brought him a series of victories no longer exists. You should learn to take a step back after each successive profit, try to reduce your trading chips by half when trading is going very well, and deliberately reduce the frequency of trading when trading is going very well by taking profits in the wrong way. As a product of thousands of years of human civilization, we all know that money can be made in an honest way, but of course, we also know that it can be made in a dishonest and shameful way. The end result may be the same, but the means of making money may be very different. Many novice traders do not realize that it is possible to profit in the market in the wrong way. Think about those who do not adhere to a protective stop on a position that may end up making money on the trade, not realizing that they have sinned against themselves and that punishment will follow. What do you think they will do when a trade triggers a protective stop loss? Once a trader gets a taste of success from the wrong way, they almost always repeat the mistake until the wrong way robs them of their money and takes back the profits they didnt deserve. They are not interested in getting lucky in the market, they do not pursue, hope for or then enjoy the gains that come their way despite their mistakes and wrong trading actions. But one thing is for sure, repeated wrong actions will eventually lead to the demise of a lazy trader. Make sure you are taking profits the right way. We will talk about the trading journal later, you should make good use of this tool to manage your trading behavior, emotions, thinking and habits. Initial stop-loss settings, monitoring the market, exits, etc. and identify mistakes and rule violations Whenever traders allow themselves to feel like winners on a trade when in fact it wasnt really a win, they send a message - what was done was right, and well this will reinforce the wrong behavior and encourage the individual to Repeating these mistakes needless to say, mistakes will eventually catch the trader This is the conditioned reflex As a forex trader, you should be aware of two evil habits - hope and self-deception One is the two criminals that lead to profit in the wrong way Looking for reasons to support entry and holding Lets see if you can find the following scenarios in which An excited trader finds a great trading opportunity on an intraday chart. Everything looks right and all market indicators come alive on a particularly positive trading day after an afternoon of consolidation, then, after hitting the market point, the trader executes and closes. The trader suddenly starts to turn down, spitting out short-term profits and consolidating at the entry point. the trader thought "this is very funny!" The late afternoon rally has now completely evaporated, the market is clearly weak and retaliatory and now his stop loss is only one pip away. The trader starts researching, looking for clues as to why the perfectly manned variety has started to fall. "He commented, "Im going to move my stop loss down to the lowest point of the day, right, theres no way its going to fall below that. What did the trader do wrong? Did the trader ignore the weakness of the developing market? Not exactly. The trader made three fatal mistakes: operating on an inconsistent time frame selecting and buying on an exclusively intraday basis, switching from an intraday entry point and a tight intraday stop to a daily chart and adjusting the stop loss based on the daily line completely changed the initial trade, skewing the initial risk/reward ratio in the traders favor. The above mentioned trader planned the trade but did not trade the plan adhering to the initial plan, regardless of the time frame, is absolutely necessary to not execute the trade plan and place himself in the markets favor, corrupting the confidence necessary to trade effectively and rationalizing himself Rationalizing changes in timeframe and plan is a form of disguised denial of the trading plan, denying the fact that it is happening, engaging in self-deception Honesty, true honesty - no matter how ugly the truth - will put you above the majority of market participants Those who rationalize their mistakes fail to summon strength from within, preferring instead to remain comfortable and put themselves at the mercy of the market. Instead, they prefer to remain comfortable and blame their losses on something or someone other than themselves. In short, if you wish to approach the market with wisdom, planning each of your trades is a necessity. Those who know how to do it, but dont do it, deserve this knowledge the least, and the market usually takes care to give them the reward they deserve. Many people cannot muster enough determination and courage to make the jump; instead, they begin a process of rationalization. This process of talking themselves out of doing the right thing will eventually cause traders to leave the game altogether. "The rationale behind the behavior of a variety has no meaning for the traders already planned action. The correct action for the trader is to sell first and ask why second, check the news. Third, thinking in terms of "maybes" whenever a trader should act on a stop loss or price target, start thinking in terms of "maybes" and uncertainty prevails. This persistence in doing what was previously planned may not always produce the best results, but it will develop self-discipline, which is the most valuable quality a trader possesses / Fourth, it is difficult to sell a full position. A trader who stays in a position without a solid reason will be a failed trader

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