Are You Really Committed To Your Trading Business

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There are at least two very good reasons for what I’m saying and they both involve continuity. The first reason has to do with watching the market day by day. By seeing what’s happening in a market and by seeing how it’s happening, a trader is much better able to get an understanding of context and get in sync with market rhythm. And this gives a trader enough insight to know when to pass up on an opportunity and when to really hit the gas.

Key Takeaways:

  • Here at Netpicks, we’ve helped many different traders over the years and there’s one recurring theme. Retail traders frequently just don’t have the level of dedication in order to make it. In fact I see it all the time – even now.
  • By seeing what’s happening in a market and by seeing how it’s happening, a trader is much better able to get an understanding of context and get in sync with market rhythm. And this gives a trader enough insight to know when to pass up on an opportunity and when to really hit the gas.
  • Seeing what you’re good at and what you’re not is one part of this. Another aspect is then dissecting your problems and fixing them. One of the best ways to use a trading journal during every interaction you have with your trading business and the market.

“By taking the time to practice it every day you will give yourself a much better chance to improve.”

http://www.netpicks.com/dont-just-another-statistic-be-commited-to-trading/

Originally published at Are You Really Committed To Your Trading Business

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The Hidden Costs of Missing Forex Trade Opportunities

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Forex traders who want to be consistently profitable know the importance of tracking the rights and wrongs of the trades that they take. Unfortunately, the impact of the trades that they DON’T take is too often overlooked. Traders are no strangers to missing good trade opportunities. At one point or another we’ve encountered setups that we didn’t take even though they so clearly fit our biases and strategies. All too often, those missed trades also tend to be winners.

Key Takeaways:

  • Forex traders who want to be consistently profitable know the importance of tracking the rights and wrongs of the trades that they take. Unfortunately, the impact of the trades that they DON’T take is too often overlooked.
  • While there are good reasons for missing trade opportunities, not taking valid setups can also cost you in the long run.
  • For mechanical traders, not taking all the valid trades would create discrepancies between your backtested results and your actual performance. You could lose confidence in your system before you even give it a chance to reach its full potential.

“Missed trades can also make a dent on your trading psychology.”

http://www.babypips.com/blogs/pipsychology/forex-missed-trades-20170213.html

Originally published at The Hidden Costs of Missing Forex Trade Opportunities

Advanced Training: Trading Psychology

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There is a tremendous correlation between Psychology and Trading. In particular, emotions such as Greed and Fear are intimately associated with trading.These emotions often operate very subtly in the background, often without the trader realizing it. In addition, Anger, and Hate also operate against the trader in the form of Revenge Trading. Elation and Ecstasy operate in the form of “I can’t do anything wrong” and we start taking unnecessary risks and violate all our pre-established rules. These are all things we need to guard against as we trade.

Key Takeaways:

  • Stop Losses are meant to protect your account NOT your trade. Once you’ve drawn your “line in the sand” don’t deviate from it just to give the trade “a little more chance of turning” unless your rules allow for it.
  • Have trading maxims (sayings, mantras) that help you remember what you are supposed to be accomplishing and that help you avoid doing stupid things. Repeat your maxims as they apply to your current situation.
  • Before you enter a trade, be sure it meets the entry criteria. Don’t take a trade that’s “close”. Don’t enter a trade just because it makes you happy to be in a trade. Act like a professional.

“Taking losses is part of the “job” of trading.”

http://winnersedgetrading.com/advanced-training-trading-psychology/

Originally published at Advanced Training: Trading Psychology

3 Reasons Why Traders Miss Out on Breakouts and Trend Reversals

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A trend reversal is when something very popular stops being so and an older idea comes to the forefront again. Traders need to keep up on this. They need to know what is and isn’t doing well at any given time. This explains three things which may hinder a trader’s ability to do this successfully so they can watch out for them.

Key Takeaways:

  • Despite what you’ve heard, there are only a number of really good trading opportunities in a given day.
  • It’s not every day that we see a catalyst that would push price action in a single direction.
  • In times of heightened market volatility, an average trader tends to focus on how many pips he can get from his trades.

“Consistently profitable traders not only focus on their pips, but they also note the event’s impact on the markets and how it affects the bigger picture.”

http://www.babypips.com/blogs/pipsychology/forex-breakouts-reversals-20170206.html

Originally published at 3 Reasons Why Traders Miss Out on Breakouts and Trend Reversals

All The People, Books, And Sources That Shaped Me As A Trader

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You’re always hearing about who shaped a writer, a musician, etc, but who ever heard of hearing the influences of a trader? This is very novel and interesting. They discuss books, people and sources they were influenced by in their career. If you might trade yourself these books would be good reads for you.

Key Takeaways:

  • All the knowledge I have acquired over the years through first consuming a lot of information and then doing tons of my own research and refining, shaped my proprietary trading approach, which is laid out in our newly-released Tradeciety Pro trading class.
  • I believe that everyone has got to say something. Experiences make us what we are, they shape our view of the world and the interpretation of events in our life.
  • And that is what makes reading autobiographies so interesting. It is a brief look into the minds of others, and thus, their worlds. There is so much to learn from that.

“The Tradeciety Trading Academy and our Forex 101 video classes are the best places to start out for any beginning trader, in my own humble opinion, even though those weren’t around when I started out.”

http://www.tradeciety.com/all-the-people-books-and-sources-that-shaped-me-as-a-trader/

Originally published at All The People, Books, And Sources That Shaped Me As A Trader

How To: Backtesting A Trading Strategy The Right Way

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You may think you’re clever for coming up with your trading strategy. You may or may not be right about that. Testing it will tell you if it will work. This tells you how to test a trading strategy in the right way so you get telling results that you can use to judge it.

Key Takeaways:

  • There are two basic ways to go about your backtest. The first one involves creating a script that will do the backtesting for you. If you enjoy and/or are good at coding, this might be a good option.
  • The other option consists of manual backtesting, by which you go through the charts yourself and place the trades.
  • That being said, any trading platform (MetaTrader, TradingView, NinjaTrader, etc.) can be used to backtest manually. The only thing you need to do is to scroll back in time and hide the future price movements.

“I am a big fan of Trello, a free web-based tool (also on mobile) that is like having a board with multiple sections in front of you.”

http://www.desiretotrade.com/backtesting/

Originally published at How To: Backtesting A Trading Strategy The Right Way

Worst Time To Day Trade Most Markets

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Statistically speaking, the worst time of day to trade is from noon to 2 p.m. This “no trades during lunchtime rule” applies especially to intraday traders. On average, the 30-minute volume and range of trades bottom out during this two-hour window. Bid/ask sizes will be lower during this period and it’s less likely that there will be directional movement. Of course, there will always be outliers that show some market activity to be optimal during this time, so use your best professional judgment. But in general, since all traders need a refresh break, why not take it from noon to 2?

Key Takeaways:

  • One of the worst times to day trade is during the time when many traders take lunch and this is a good time for you to stand aside.
  • The statistics clearly show that the average 30 minute volume and range bottom out between 12-2pm EST i.e. LUNCHTIME. The specific time a particular market’s activity hits it’s low point with its primary session will in fact vary from product to product.
  • These basic statistics give a general feel for what it might be like over lunchtime, but to show the kind of movement, it’s a little clearer in the video below. Again, there are always going to be days when there are outliers in the data and there are some great opportunities during lunchtime.

“Unless your system takes advantage of the volatility surrounding news releases, any day that has a significant amount of important releases (even inventory reports) would be a day you should approach with caution.”

http://www.netpicks.com/day-trading-during-lunchtime/

Originally published at Worst Time To Day Trade Most Markets