Choppy Markets: How Does Your System Deal?

As we all know, the winners come easy when market conditions are ideal. But what about when markets are just plain UGLY?

The true measure of a trading system is how it performs under times of stress (i.e. chop, consolidation and ugly price action).

The Ultimate Swing Trader was designed to deal with choppy price action AND help you come out the otherside, ideally, more profitable than when you went in.

SWING TRADING VS DAY TRADING

Why so many people fail at forex trading?

1 - Most people treat Forex as a get rich quick scheme. This means they are not willing to invest time, energy nor money to be good or to improve their trading skills. They believe that with a few bucks, they open an account and by using a high leverage, they are going to make a fortune in no time. They couldn't be more wrong. The leverage is a good thing for a trader when used with caution. But these people use it at a very high limit and this will end with their millionaire dream really quick.

2 - Most people expect to have great returns in a short period of time. If you treat Forex like a business, you know this isn't the way things work. There are many factors that contribute to people think this way. One of them is again the high leverage traders use. You shouldn't use a high leverage because you face the high risk of losing your entire account in a couple of trades. Be wise and trade smaller lots. When people think about having great returns in a short period of time they are thinking about day trading. Well, I'm not going to say that day trading isn't possible; but I'll say that only the more experienced traders make profits from it. This is because, and this is another thing that is always focused when people talk about forex trading, there are no commission costs like in other financial markets. This is not absolutely true. It's true there aren't any commissions charged but you are charged with the spread. The spread is the difference between the bid and the ask and depends on the currency pair you are trading. If you want to day trade, you'll have to trade several times a day, which means that you will pay the spread several times a day. Most beginners don't realize they are actually losing money because they don't count with this cost. With day trading, you also need volatility. And volatility is more likely to appear in certain time frames. Volatility isn't always there and you need to develop a strategy that counts with this factor.

3 - Most people think it's easy to make money in Forex. Almost every time I see someone asking what he can do in order to get money quick, I see Forex. This is absolutely false. If you enter in the Forex market with this attitude, you'll get kicked off without even noticing. In order to be a good forex trader, you need to dedicate time, energy and money. You need to learn and keep learning. Things are changing all the time around us and if you want to be successful you have to keep it up. It is not a question of a day or two reading some free ebooks or courses. It's a constant learning. When you feel you have what it takes, open a demo account on a broker and test what you learned and your skills. Don't open a real account right away or most probably you'll lose all your money.

4 - Most forex traders believe they are better than other traders and the market. This is the worst attitude a trader can have. You don't know everything and you never will. That's why you need to keep learning even when you are already making profits in Forex. The Forex market is a complex and difficult market but it's possible to be profitable if you work hard and have the dedication to it. Don't forget: treat Forex as a business.

When things aren't working the way you expected, try to see what you did wrong. This is a difficult task I know. But if you go for the easy way and blame the market, you're in the wrong path. You need to accept responsibility for your actions either when winning or losing.

5 - Most people think that is possible to make money in Forex with no work. Well, let me tell you something that you probably never heard: Forex is a market where most people lose money. And most people lose money because they are not willing to try hard and dedicate time and energy to learn and keep learning.

6 - When people read about the Forex market they stay delighted. They read all its advantages and they run to open an account with the first broker they find. Most people choose a bad broker because they don't make a severe diligence about all the forex brokers in the market. They don't want to have work with it and it sometimes can get you in trouble. There are a lot of lousy Forex brokers. They have bad executions, big spreads, trade against their clients, don't have a good platform or charts and aren't regulated. If you are serious about Forex trading, look for a good broker. Take your time researching the market and see what they have to offer you. See where they are based, if they are regulated and if they trade against you. If you don't see some of these things in their webpage, contact their support team. But never open a real account with the first one that appears.

I strongly believe that successful traders keep learning and improving their strategies in order to get better profits. You can be a successful trader too. You just need to treat Forex as a business and invest time, energy and money to it.

AMARAN KERAS!!!

Sesiapa yg menceburi bidang pelaburan FOREX, STOCK, FUTURE, COMMUDITY, OPTION dan yg sewaktu dengannya, hendaklah melabur secara DEMO, sehingga anda boleh menghasilkan keuntungan konsisten selama 3 bulan , barulah boleh main duit real sedikit dahulu. jika DEMO pun tak boleh buat untung....maka duit real pun jangan harap boleh buat untung...... kekadang main demo boleh untung bila main duit real boleh rugi kerana emosi dan tak berdisiplin. jadi berlatihlah, sebulan, dua bulan, setahun , dua tahun pun tak apa melabur secara demo. bila dah terror betul mulakan melabur duit real dgn jumlah yg kecil dahulu.

Pesanan IKHLAS dari saya.