Thursday, April 23, 2009
Brand new CANON Powershot G10 selling at S$750
What is the difference between a good Forex Trader and the Bad Forex trader
So what kind of trader are you? Are you making huge profits in Forex or are you going bankrupt?
The good trader
Good traders have firm control over their emotions.
Good traders never think of prices as too high or two low – they are interested in only one direction or the market
Good traders make evolutionary adjustments to their trade plans, rarely revolutionary ones
Good traders do not pyramid. Pyramiding profits is risky; pyramiding losses is suicide
Good traders – even part time ones – consider trading a business, not a hobby
Good traders can tell when they are on and when they are off and never trade if and when the latter is the case
Good traders are prepared in advance for all possible market action during a session. They may be wrong but are rarely surprised
Good traders never trade just to trade but follow their trade plan and trading heuristic consistently
Good traders understand the importance of good money management and attitude
Good traders trade only with money they can afford to lose
Good traders take small losses and let profits run
Good traders use stops and rarely pull them or change them after a trade is entered
Good traders give the market time to work. Once they take a position, they sit and wait for developments with a stop loss level and a take profit objective established in advance
Good traders know when to hold them, when to fold them, know when to walk away, and know when to run
As you will see, the bad trader is very close to the opposite of the good trader
The Bad trader
Bad traders trade without a plan
Bad traders think all they need is a trading method and ignore money management
Bad traders trade without a stop and change it frequently
Bad traders trade too large a position for their capital
Bad traders trade too many market at once
Bad traders jump from market to market and do not specialize in three, four or five pairs and crosses
Bad traders do not control their emotions – they get giddy and over cpnfident after a profitable trade and despondent after a losing trade
Bad traders has unrealistic expectations
Bad traders add to losing positions
Bad traders overtrade
Bad traders make frequent and major changes to their trade plan and trading method
Bad traders don’t keep good records of their trades and seldom review any recordsthey do keep for learning purposes
Bad traders don’t give the markets time to tell the tale and often made ad hoc decisiona after taking a position for no substantial reason
Bad traders hold for too long, fold too soon, walk when they should run, and sun when they should walk
So what kind of trader are you? Are you making huge profits in Forex or are you going bankrupt?
The good trader
Good traders have firm control over their emotions.
Good traders never think of prices as too high or two low – they are interested in only one direction or the market
Good traders make evolutionary adjustments to their trade plans, rarely revolutionary ones
Good traders do not pyramid. Pyramiding profits is risky; pyramiding losses is suicide
Good traders – even part time ones – consider trading a business, not a hobby
Good traders can tell when they are on and when they are off and never trade if and when the latter is the case
Good traders are prepared in advance for all possible market action during a session. They may be wrong but are rarely surprised
Good traders never trade just to trade but follow their trade plan and trading heuristic consistently
Good traders understand the importance of good money management and attitude
Good traders trade only with money they can afford to lose
Good traders take small losses and let profits run
Good traders use stops and rarely pull them or change them after a trade is entered
Good traders give the market time to work. Once they take a position, they sit and wait for developments with a stop loss level and a take profit objective established in advance
Good traders know when to hold them, when to fold them, know when to walk away, and know when to run
As you will see, the bad trader is very close to the opposite of the good trader
The Bad trader
Bad traders trade without a plan
Bad traders think all they need is a trading method and ignore money management
Bad traders trade without a stop and change it frequently
Bad traders trade too large a position for their capital
Bad traders trade too many market at once
Bad traders jump from market to market and do not specialize in three, four or five pairs and crosses
Bad traders do not control their emotions – they get giddy and over cpnfident after a profitable trade and despondent after a losing trade
Bad traders has unrealistic expectations
Bad traders add to losing positions
Bad traders overtrade
Bad traders make frequent and major changes to their trade plan and trading method
Bad traders don’t keep good records of their trades and seldom review any recordsthey do keep for learning purposes
Bad traders don’t give the markets time to tell the tale and often made ad hoc decisiona after taking a position for no substantial reason
Bad traders hold for too long, fold too soon, walk when they should run, and sun when they should walk
