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  • 15 ways to avoid losing money

    1. Wrong Broker : A lot of forex brokers are horrible; get a good one. Read forums and chats in several different places to get an unbiased opinion.

    2. Trading During Off Hours Bank FX traders, option traders, and hedge funds have a huge advantage during off hours; they can push the currencies around when no volume is going through and the end game is new traders get fleeced trying to trade signals. There is only one signal during off hours it is better to stay out.

    3. Trading Against Prevailing Trend There is a huge difference between buying cheaply on the way down and buying cheaply. What was a low price quickly becomes a high price when you 're trading against the trend.

    4. Picking Tops and Bottoms - Looking for bargains works well at the supermarket but not trading foreign exchange; try to trade in the direction the price is going and your results will improve.

    5. Not Trading Around s Time : Most of the big moves occur around news time. The volume is high and the moves are real; there is no better time to trade fundamentally or technically than when news is released; this is when the real money adjusts their positions and as a result the prices changes reflect serious currency flow (compared to quiet times when bank traders rule the market with their customer order flow).

    6. Ignore Technical Conditions : Determining whether the market is over-extended long or over-extended short is a key determinant of near-time price action. Spike moves often occur when the market is all one way.

    7. Lack of Confidence Confidence only comes from successful trading. If you lose money early in your trading career it's very difficult to gain true confidence; the trick is don't go off half-cocked; learn the business before you trade.

    8. Being Too Smart : The most successful traders I know are high school ****uates. They keep it simple and dont look beyond the obvious; their results are excellent.

    9. Stop Losses : Putting tight stop losses with retail brokers is a recipe for disaster. When you put on a trade, commit to a reasonable stop loss limit that allows your trade a fair chance to develop.

    10. Relying on Others : Real traders play a lone hand; they make their own decisions and dont rely on others to make their trading decisions for them; there is no halfway; either trade for yourself or have someone else trade for you.

    11. Too Many Charity Trades : When you make money on a well thought-out trade, dont give back half on a whim; invest your profits from good trades on the next good trade

    12. Too Much Detail : If you are trading more than 2 indicators, then you need to clean house. Having many indicators stifles trading and finds reasons not to trade. A setup and a trigger is all you need.

    13.Overconfidence : Trading is not easy; statistics show a 95% failure rate. If your doing well dont take your success for granted; always be on the lookout for ways to improve what you 're doing.

    14. Knowledge Deficiency: Most new forex traders do not take the time to learn what drives currency rates (primarily fundamentals). When some news or a statement is due out, they close out their positions and sit out the best trading opportunities; they are taught to only trade after the market calms down. So essentially they miss the whole move and then trade the random noise that follows a fundamental price move. Just think for a moment about technically trading the aftermath of a price move; there is no potential.


    15. Rumors : Rumors are rumors almost 100% of the time; think about where in the motion you heard the rumor. If EUR/USD is up 50 points in last 15 minutes and the rumor is dollar negative, well then you missed it. Whenever you trade, determine where in the motion you are entering.

    Hope its will help all of you..

  • #2
    Once again, you are posting frivolously ... why can't you abide by the rules noob?
    Last edited by FloridaTrader; 20-08-14, 04:19.

    Comment


    • #3
      Originally posted by painofhell View Post
      1. Wrong Broker : A lot of forex brokers are horrible; get a good one. Read forums and chats in several different places to get an unbiased opinion.

      2. Trading During Off Hours Bank FX traders, option traders, and hedge funds have a huge advantage during off hours; they can push the currencies around when no volume is going through and the end game is new traders get fleeced trying to trade signals. There is only one signal during off hours it is better to stay out.

      3. Trading Against Prevailing Trend There is a huge difference between buying cheaply on the way down and buying cheaply. What was a low price quickly becomes a high price when you 're trading against the trend.

      4. Picking Tops and Bottoms - Looking for bargains works well at the supermarket but not trading foreign exchange; try to trade in the direction the price is going and your results will improve.

      5. Not Trading Around s Time : Most of the big moves occur around news time. The volume is high and the moves are real; there is no better time to trade fundamentally or technically than when news is released; this is when the real money adjusts their positions and as a result the prices changes reflect serious currency flow (compared to quiet times when bank traders rule the market with their customer order flow).

      6. Ignore Technical Conditions : Determining whether the market is over-extended long or over-extended short is a key determinant of near-time price action. Spike moves often occur when the market is all one way.

      7. Lack of Confidence Confidence only comes from successful trading. If you lose money early in your trading career it's very difficult to gain true confidence; the trick is don't go off half-cocked; learn the business before you trade.

      8. Being Too Smart : The most successful traders I know are high school ****uates. They keep it simple and dont look beyond the obvious; their results are excellent.

      9. Stop Losses : Putting tight stop losses with retail brokers is a recipe for disaster. When you put on a trade, commit to a reasonable stop loss limit that allows your trade a fair chance to develop.

      10. Relying on Others : Real traders play a lone hand; they make their own decisions and dont rely on others to make their trading decisions for them; there is no halfway; either trade for yourself or have someone else trade for you.

      11. Too Many Charity Trades : When you make money on a well thought-out trade, dont give back half on a whim; invest your profits from good trades on the next good trade

      12. Too Much Detail : If you are trading more than 2 indicators, then you need to clean house. Having many indicators stifles trading and finds reasons not to trade. A setup and a trigger is all you need.

      13.Overconfidence : Trading is not easy; statistics show a 95% failure rate. If your doing well dont take your success for granted; always be on the lookout for ways to improve what you 're doing.

      14. Knowledge Deficiency: Most new forex traders do not take the time to learn what drives currency rates (primarily fundamentals). When some news or a statement is due out, they close out their positions and sit out the best trading opportunities; they are taught to only trade after the market calms down. So essentially they miss the whole move and then trade the random noise that follows a fundamental price move. Just think for a moment about technically trading the aftermath of a price move; there is no potential.


      15. Rumors : Rumors are rumors almost 100% of the time; think about where in the motion you heard the rumor. If EUR/USD is up 50 points in last 15 minutes and the rumor is dollar negative, well then you missed it. Whenever you trade, determine where in the motion you are entering.

      Hope its will help all of you..
      The first point is very important to traders. So, choose the good broker for your trading.

      Comment


      • #4
        Originally posted by Caspar Contzen
        Thanks a lot for your contribution. I believe this post is very useful for the new Forex trader. I read your 15 points very carefully. You are right. My opinion is Money management is the key of success.
        Those keys is very important for traders, and keys to success. The traders should follow it to get the consistency profits.

        Comment


        • #5
          Originally posted by Caspar Contzen
          Well! I will
          Care to mention when new guy? Let's not play the losing game of dancing with me .... not a good idea.

          Update: Seems like our noob is actually flooding the forum with spam which I removed, gave three infractions, removed previous irresponsible rule violating postings, requested a ban and he is out the door.
          Last edited by FloridaTrader; 14-09-14, 13:24.

          Comment


          • #6
            There are plenty of ways to avoid loosing your money but most of the lessons a trader leans is by experience and how he deals with it.

            Comment


            • #7
              All tips are good. Always the problem is that all these rules are followed. Or at least most of them

              Comment


              • #8
                Originally posted by painofhell View Post
                1. Wrong Broker : A lot of forex brokers are horrible; get a good one. Read forums and chats in several different places to get an unbiased opinion.

                2. Trading During Off Hours Bank FX traders, option traders, and hedge funds have a huge advantage during off hours; they can push the currencies around when no volume is going through and the end game is new traders get fleeced trying to trade signals. There is only one signal during off hours it is better to stay out....

                Yes, nice summary of what trader should or shouldn't do... But if trader doesn't know what he is doing, no mater how long are this rules, it doesn't help anyone...

                Here are my two cents how to not loosing money in trading (at least it worked for me

                1. Find your edge - first and foremost!
                Find/create trading system which works for you and will meet your personality (scalper, swing trader... rule based system, discretionary...)

                2. Backtest it!
                Once you found your edge, start with backtesting. Backtest will tell you how your system performed in the past so it will build your faith in your system.

                3. Start demo/ forward testing.
                Once you are done with backtesting, start trading your system on demo for at least 2-3 months. You have to be disciplined as it is a live account. This stage will build your confidence with opening positions.

                4. Trade it live.
                DISCIPLINE, DISCIPLINE, DISCIPLINE... Just trade your system no mater what. Of course you will have losing trades, but it's part of the game.
                1. You have your edge, 2. you know how it performed in the past, 3. you know how your system is reacting in real life situation 4. so just trade it and don't look for another "holy grail" after few loss trades... Losing traders are mostly those, who are constantly looking for new systems...

                Hope it will help someone

                Comment


                • #9
                  Trading discipline is very important. It is exact and absolute observance rules of chosen trading system. More than 95% traders have loses because they haven’t self-control and discipline in spite of the fact that they have good strategies.

                  Comment


                  • #10
                    1 Way to avoid losing Money

                    Don't Trade---LMAO--- sorry couldn't resist

                    Comment


                    • #11
                      One more way to keep your money in your pocket is to learn how to withdraw from trading in time. I mean set some certain number of trades you make in a day and never exceed it. It's important part in money management and quite effective to avoid overtrading.

                      Comment


                      • #12
                        Hi friends

                        Recently I've signed up for FreshForex live contest to win a car. It is rather simple. Click here and proceed as I did. I made some snapshots to show that it is quite easy.



                        That's it! You are in!

                        Just to remind: you can start with just $100 and take part in as many stages as you like. Good luck!

                        Comment


                        • #13
                          I'd rather join free demo contests with real cash prizes such as Hotforex offers. With real cash I won't take high risk to take first place because in 90% everybody will lose with such risks.

                          Comment


                          • #14
                            do u guys have a myfxbook account? and with what broker do you trader? is this a hotforex pamm account?

                            Comment


                            • #15
                              Originally posted by maligno View Post
                              do u guys have a myfxbook account? and with what broker do you trader? is this a hotforex pamm account?
                              Yeah time to time I invest in Hotforex PAMM but recently there was a flow of new traders so you need to make deeper research on quality and professional fund managers..

                              Comment

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