Practice these concepts with a free practice charting and trading account here: http://bit.ly/forex-demo1 For the full lesson with images, text, links, and discussion, go here: http://www.informedtrades.com/5011-solution-why-traders-lose-money.html For our full beginner course in technical analysis and trading, go here: http://www.informedtrades.com/index.php?page=freetradingcourses And of course, don't forget to jump start your learning as a trader by registering as a member of our learning community: http://www.informedtrades.com VIDEO NOTES A lesson on the importance of money management in trading and how most traders of the stock, futures, and forex markets ignore money management because they do not consider it important and therefore loose money trading. Why the Majority of Traders Fail In our last lesson we finished up our series on Candlestick Chart Patterns with a look at the Inverted Hammer and the Shooting Star Candlestick Chart Patterns. In today's lesson we are going to start a new series on money management, the most important concept in trading and the reason why most traders fail. Over the last several years working in financial services I have watched hundreds if not thousands of traders trade, and over and over again I see smart people who have been intelligent enough to accumulate large sums of money in their non trading careers open a trading account and loose huge sums of money making what you would think are easily avoidable mistakes that one would think even the dumbest traders would avoid. Those same traders are the ones that consider themselves too good or smart to make the same mistakes that so many others make, and that will skip over this section to get to what they feel is the "real meat" of trading, strategies for picking entry points. What these traders and so many others fail to realize is that what separates the winners from the losers in trading is not how good someone is at picking their entry points, but how well they factor in what they are going to do after they are in a trade into their trade entries and how well they stick to their trade management plan once they are in the trade. For the few who do get that money management is far and away the most important aspect of trading, the large majority of these people don't understand the large role that psychology plays in money management or consider themselves above having to work on channeling their emotions correctly when trading. So in this series of lessons we are going to first start with a look at the psychology of money management and the role that this plays in causing so many traders to loose their shirts and then move on to ways of managing this before finishing up with specific strategies for managing trades once you are in them. While not the most exciting part of trading, I assure you that if you don't understand and work on the concepts presented in this section you are pretty much doomed to failure as a trader no matter how well you understand the other aspects of trading. Having said this I also assure you that if you do understand and work to expand your knowledge of the concepts presented in this series you will be well on your way to becoming a successful trader.
Views: 185170 InformedTrades
http://ftse100pro.com Come take a FREE PEEK on any day of your choice. I was the first in the world to offer this service and still going strong. I won't be here forever so pop in now whilst I am still here. Everyone is allowed a try before you buy Free peek. See you soon
Views: 13725 FTSE100TRADER
Set up a practice trading account to get started with trading success: http://bit.ly/forex-demo1 A lesson on how most traders have unrealistic profit expectations which cause them to lose all their money and what realistic profit expectations are when trading the stock, futures or forex markets. The first step in understanding and building a solid money management plan, the key component in successful trading, is setting realistic profit expectations. All too often I see people open trading accounts with balances of $10,000 or under expecting to make enough money to support themselves from their trading profits within a short period of time. After seeing all of the hype that is out there surrounding most trading education, trading signal services, etc it is no wonder that people think this is a reasonable goal, but that does not make it a realistic one. As most any truly successful trader will tell you, the stock market has averaged somewhere in the neighborhood of 10% a year over the last 100 years. What this basically means is that if you would have invested in the 30 stocks that make up the Dow Jones Industrial Average, the index which is designed to represent the overall market, you would have earned about 10% on your money on average over the last 100 years. With this in mind, what most any truly successful trader will also tell you, is that if you can consistently double that return, on average, over the long term, then you will be considered among the best traders out there. Learn more here: http://www.informedtrades.com/
Views: 122995 InformedTrades
Practice these concepts with a free practice charting and trading account here: http://bit.ly/IT-forex-demo3 For the full lesson with images, text, links, and discussion, go here: http://www.informedtrades.com/5099-psychology-trading-effect-trading-losses.html For our full beginner course in technical analysis and trading, go here: http://www.informedtrades.com/index.php?page=freetradingcourses And of course, don't forget to jump start your learning as a trader by registering as a member of our learning community: http://www.informedtrades.com VIDEO NOTES A lesson on how the ability and willingness to take losses when trading the forex, futures, or stock markets is one of the key factors that differentiates successful traders from unsuccessful ones. Trading Success Means Comfort with Being Wrong In our last lesson we introduced the concept that money management and the psychology of money management as the most overlooked but most important component of trading success. In today's lesson we will begin to look at one of the most important components of the psychology of money management: a willingness to be wrong. Humans in general grow up being taught by their environment of the importance of always being right. Those who are right are envied as the winners in society and those who are wrong are cast aside as losers. A fear of being wrong and the need to always be right will hold you back in general, but will be deadly in your trading. With this in mind lets say that you have been watching my videos and feel that I am an intelligent trader, so you want me to give you a method to trade. I say fine and give you a method and tell you that the method will trade 100 times a year with an average profit of 100 points for winning trades and an average loss of 20 points for loosing trades. You say great and take the system home to give it a try. A few days later the first trade comes and quickly hits its profit target of 80 points. Great you say and call a bunch of your friends to tell them about the great system you've found. Then a few days later the next trade comes but quickly takes a loss. You hold tight however and then the next trade comes, and the next trade etc until the trade has hit 5 losers in a row and amounting to 100 points in loses on the losers so you are now down 20 points overall, and all your trader buddy's who started following the system after the first trade are now down 100 points. Now you feel really dumb and are the joke among the group of guys that you trade with, so the next day you come back to me yelling about how bad the system I gave you is. I say ok and tell you I have another system for you. This one also trades 100 times a year but has a higher success rate that I think he will be happy with. You take this system home and the next day it quickly hits a winner followed by another then another and then another until over the next few days you have 5 winners in a row totaling 50 points in gains for your account. Getting very excited you call all of your trader friends and tell them that this time you have found it, you tell your wife how you haven't lost on a trade in two weeks and you rub your perfect trading statement in the face of all your trader buds as revenge. So now ask yourself this question. If you were really the trader in this example which system would you rather have? I can tell you from experience that the large majority of traders will take the second system without a second thought, and on top of that will stick with it even if it hits a few losses that wipe out most or all of its gains. Although the successful trader will want to know a lot more about both these systems which we are going to learn about in the lessons that come before deciding which one to trade I can tell you that what they will glean from the above information is the following:
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Practice these concepts with a free practice charting and trading account here: http://bit.ly/IT-forex-demo3 For the full lesson with images, text, links, and discussion, go here: http://www.informedtrades.com/7203-trading-using-martingale-anti-martingale-approaches.html For our full beginner course in technical analysis and trading, go here: http://www.informedtrades.com/index.php?page=freetradingcourses And of course, don't forget to jump start your learning as a trader by registering as a member of our learning community: http://www.informedtrades.com VIDEO NOTES A lesson on the two different categories that position sizing strategies fall into when used in the forex, futures, and stock market. In our last lesson we looked at how most traders pick a standard amount to trade per certain amount of equity in their account and how this probably isn't the best way to maximize profits and minimize losses of a potential strategy. In today's lesson we are going to look at the two categories that most position sizing strategies fall into which are known as martingale strategies and anti martingale strategies. A position sizing strategy which incorporates the martingale technique is basically any strategy which increases the trade size as a trade moves against the trader or after a losing trade. On the flip side a position sizing strategy which incorporates the anti martingale technique is basically any strategy which increases the trade size as the trade moves in the traders favor or after a winning trade. The most basic martingale strategy is one in which the trader trades a set position size at the beginning of his trading strategy and then double's the size of his trades after each unprofitable trade, returning back to the original position size only after a profitable trade. Using this strategy no matter how large the string of losing trades a trader faces, on the next winning trade they will make up all their losses plus a profit equal to the profit on their original trade size. As an example lets say that a trader is using a strategy on the full size EUR/USD Forex contract that takes profits and losses both at the 200 point level (I like using the EUR/USD Forex contract because it has a fixed point value of $1 per contract for mini forex contracts and $10 per contract for full sized contracts but the example is the same for any instrument) The trader starts with $100,000 in his account and decides that his starting position size will be 3 contracts (300,000) and that he will use the basic martingale strategy to place his trades. Using the below 10 trades here is how it would work: example As you can see from the above example although the trader was down significantly going into the 10th trade, as the 10th trade was profitable he made up all the his losses plus a brought the account profitable by the equity high of the account plus original profit target of $6000. At first glance the above method can seem very sound and people often point to their perception that the chances of having a winning trade increase after a string of loosing trades. Mathematically however the large majority of strategies work like flipping a coin, in that the chances of having a profitable trade on the next trade is completely independent of how many profitable or unprofitable trades one has leading up to that trade. As when flipping a coin no matter how many times you flip heads the chances of flipping tails on the next flip of the coin are still 50/50. The second problem with this method is that it requires an unlimited amount of money to ensure success. Looking at our trade example again but replacing the last trade with another loosing trade instead of a winner, you can see that the trader is now in a position where, at the normal $1000 per contract margin level required, he does not have enough money in his account to put up the necessary margin which is required to initiate the next 48 contract position. Example So while the pure martingale strategy and variations of it can produce successful results for extended periods of time, as I hope the above shows, odds are that it will eventually end up in blowing ones account completely. With this in mind the large majority of successful traders that I have seen follow anti martingale strategies which increase size when trades are profitable, never when unprofitable, and these are the methods which I will be covering starting in tomorrow's lesson.
Views: 100810 InformedTrades
Practice these concepts with a free practice charting and trading account here: http://bit.ly/IT-forex-demo3 For the full lesson with images, text, links, and discussion, go here: http://www.informedtrades.com/7054-fixed-position-sizing-avoid-common-trading-mistake.html For our full beginner course in technical analysis and trading, go here: http://www.informedtrades.com/index.php?page=freetradingcourses And of course, don't forget to jump start your learning as a trader by registering as a member of our learning community: http://www.informedtrades.com A lesson on why position sizing is one of the most important aspects to consider when trading the stock, futures and forex markets. So far in the lessons leading up to this one we have covered some of the different methods traders use to pick their entry points, as well as some of the different methods which traders use to set their exit points. In this lesson we are going to look at the factor which ties all of the above together and allows a trader the greatest control over their returns: Position Sizing. While position sizing is one of the Key components of successful trading, like many of the other things we have covered, it is often overlooked as an unimportant aspect of trading. What successful traders know however is that once the psychology of trading is mastered and a trader has developed a sound strategy for picking their entry and exit points, it is the method they use to determine the size of the positions they trade that is the final factor which will lead to their success or failure. To help illustrate this lets say that three traders are each given $10,000 and the same EUR/USD Mini Forex strategy to trade which has a win rate of 60% (makes a profit on 6 out of 10 trades) and makes an average profit on winning trades over the long term of 100 Points. On the losing side, this same system has a lose rate of 40% (takes a loss on 4 out of 10 trades) and takes an average loss on those trades of 90 points. So here we have a trading strategy that has more winning trades on average than it does losing trades, as well as a strategy that when it does lose it loses less than what it does when it wins. I think most traders including myself would take that system any day of the week. So we give these traders each this system and tell them to come back to us after 10 trades and show their results. As the system is the same for all traders, when they bring us back the trading results of their systems the entry points and exit points for each trade is going to be the same, leaving them only the position size as the factor that they can tweak. As they are trading mini EUR/USD forex contracts the value of a 1 point move is $1 per contract traded. With this in mind after 10 trades the system produces the following results:
Views: 71356 InformedTrades
Becoming a day trader involves setting aside money to invest, and sitting down with other traders to learn the craft. Become a day trader, but only invest with money that one is prepared to lose, with tips from a futures and options floor trader in this free video on personal finance. Expert: Mark Griffith Bio: Mark Griffith has graduated in economics and philosophy at Clare College, Cambridge. He has been a futures and options floor trader at LIFFE (London International Financial Futures Exchange). Filmmaker: Paul Volniansky
Views: 30208 eHow
Practice trading with a free demo account: http://bit.ly/IT-forex-demo3 Continue learning about trading and investing: http://www.informedtrades.com/ A lesson on the importance of the preservation of capital as part of a trading strategy for traders of the stock, futures an forex markets. In our last lesson we looked at what one can reasonably expect to earn from their trading over the long term, and how one can avoid the common misconceptions of most traders which ultimately cause them to fail. In today's lesson we are going to look at the next step in developing a successful money management strategy which is how to manage your losses. One of the main key's to successful trading is the preservation of capital. Beyond the obvious point here that if you loose your trading capital then you will be out of the game, is the fact that it takes much more to come back from a loss than it does to take the loss you are trying to come back from. As an example here lets say you start with $10,000 and loose $5000 from a string of bad trades. That $5000 loss represents a 50% loss on your account which now has $5000 left in it. Now ask yourself this question. What percentage gain will you need to make on the $5000 left in your account in order just to be back to breakeven (the $10,000 level) on your account? If you have done the math correctly you will see that in order to make back the 50% loss you took on your account you will need to make a 100% return or basically be twice as successful in your comeback as you were unsuccessful in your drawdown. It is this concept that is one of the most important to understand in trading, as it underscores the importance of protecting one's trading capital, as it shows the difficulty of coming back from a loss in relation to the ease of taking a loss. It is also most traders lack of understanding of this concept that causes them to take risks which are way to large and is a major contributor to the high failure rate among traders. That's our lesson for today, in tomorrow's lesson we are going to talk about how to design a plan before entering a trade or managing the position in case it starts to move against you so we hope to see you in that lesson. As always if you have any questions or comments please feel free to leave them in the comments section below so we can all learn to trade together, and good luck with your trading!
Views: 59796 InformedTrades
Practice these concepts with a free practice charting and trading account here: http://bit.ly/apextrader For the full lesson with images, text, links, and discussion, go here: http://www.informedtrades.com/5168-destroy-your-trading-account-these-two-mistakes.html For our full beginner course in technical analysis and trading, go here: http://www.informedtrades.com/index.php?page=freetradingcourses And of course, don't forget to jump start your learning as a trader by registering as a member of our learning community: http://www.informedtrades.com VIDEO NOTES A lesson on two of the most common mistakes that traders make when trading the stock, futures and forex markets. One of the most common mistakes is sticking in a trade where you know you are right in your analysis, but the market continues to move against you. As the famous economist John Maynard Keynes once said: "The markets can remain irrational longer than you can remain solvent" Perhaps one of the best examples of this are those who shorted the NASDAQ into the runup in 1999 and early 2000. At the time it was pretty obvious that from a value standpoint NASDAQ stocks were way overvalued and that people's expectations for growth that they were buying on were way out of line with reality. There were many great traders at the time who recognized this and began shorting the NASDAQ starting in late 99. As you can see from the below chart and the huge sell off that ensued after the peak in 2000, these traders were right in their analysis. Unfortunately for many of them however stocks continued to run up dramatically from already overvalued points in late 99 wiping out many of these traders who would eventually be proved correct. So as we learned about in last lesson, people's strong desire to be right will often times keep them in trades that they should have moved on from even though the market may eventually prove them correct. For those traders who are able to initially move on from trades where they feel they are correct but the market moves against them, another common theme which arises is for a trader to initially stick to his plan, but after being proved correct and missing out on gains he becomes frustrated and deviates from his plan so that he will not miss out on another profitable opportunity. One place of many where I have seen this time and time again is when watching traders who trade reversals at support or resistance levels. Many times when the market touches a support or resistance level it will have a brief spike upwards or downwards which hits the stops of a trader looking to profit from the reversal, taking him out of the market just as it turns in his favor. Because many traders think a like, often times the level at which the trader is taken out of the market is right at his stop level as well. After this happens once or twice to a trader he will then stop placing hard stops in the market and instead convince himself that he will manage the trade if it moves against him. This may work a few times for the trader giving him more confidence in the strategy until the market does finally break. As we have learned about in previous lessons often times when the market breaks significant support or resistance levels it will break violently to the point where the trader in the above situation is quickly down a large amount on his trade. Typically what will happen at this point is instead of taking the big loss, learning his lesson, and moving on the trader will remain in the position or worse add to it with the hopes that the market will turn back in his favor. If the trader gets lucky and the market does turn back in his favor this only goes to support this bad habit which will eventually knock him out of the market. Successful traders realize that situations such as the above occur constantly in the market and that one of the main things that separates successful traders from unsuccessful ones is their ability to accept this, stick to their strategy, accept that loosing trades are a part of trading, and move onto the next trade when the market does not move in their favor. That's our lesson for today. In our next lesson we are going to look at another major part of trading psychology which is related to not wanting to take losses which is people's desire to follow the crowd. As always if you have any questions or comments please post them in the comments section below so we can all learn to trade together, and good luck with your trading!
Views: 373750 InformedTrades
http://www.michaelglass.com - In day 6 of Accendo Traders 30 Day Stock Market Challenge, we are going to focus on the psychology of trading. We will talk about what separates those traders who make money on a consistent basis and those who lose and become frustrated with the stock market
Views: 1322 MoveUpWithMike
Visit http://www.tradingtips.com to find out what works and how to make money in the stock market. Stock day trading teleseminar. Series of day trading classes to learn how to become a better First Hour Trader. Learn more about the First Hour Trading system at www.tradingtips.com. Day trading stocks can be very profitable if it's done the right way. Day trading online with the First Hour Trading system can help you make enough money in just 1 hour a day to take off and do whatever you like for the rest of the day. PART 1: http://www.youtube.com/watch?v=ojBEW5WkH2U PART 2: http://www.youtube.com/watch?v=WTBFanKPr-Y PART 3: http://www.youtube.com/watch?v=3kHVz-2xmko PART 4: http://www.youtube.com/watch?v=odL7kq8JZ84
Views: 18666 Trading Tips
Practice trading with a free demo trading account: http://bit.ly/IT-forex-demo3 View full lesson: http://www.informedtrades.com/21041-forex-market-participants.html Behind central banks in terms of size and ability to move the foreign exchange market are the banks which we learned about in our previous lessons which make up the Interbank market. It is important to understand here that in addition to executing trades on behalf of their clients, the bank's traders often times try to earn additional profits by taking speculative positions in the market as well. While most of the other players we are going to discuss in this lesson do not have the size and clout to move the market in their favor, many of these bank traders are an exception to this rule and can leverage their huge buying power and inside knowledge of client order flow to move the market in their favor. This is why you hear about quick market jumps in the foreign exchange market being attributed to the clearing out the stops in the market or protecting an option level, things which we will learn more about in later lessons. The next level of participants is the large hedge funds who trade in the foreign exchange market for speculative purposes to try and generate alpha, or a return for their investors that is over and above the average market return. Most forex hedge funds are trend following, meaning they tend to build into longer term positions over time to try and profit from a longer term uptrend or downtrend in the market. These funds are one of the reasons that currencies often times develop nice longer term trends, something that can be of benefit to the individual position trader. Although not the typical way that Hedge funds profit from the market, probably the most famous example of a hedge fund trading foreign exchange is the example of George Soros' Quantum fund who made a very large amount of money betting against the Bank of England. In short, the Bank of England had tried to fix the exchange rate of the British Pound at a particular level buy buying British Pounds, even though market forces were trying to push the value of the Pound Down. Soros felt that this was a losing battle and essentially bet the entire value of his $1 Billion hedge fund that the value of the pound would decrease. The market forces which were already at play, combined with Soro's huge position against the Bank of England, caused so much selling pressure on the pound that the Bank of England had to give up trying to prop up the currency and it preceded to fall over 5% in one day. This is a gigantic move for a major currency, and a move which netted Soros' Quantum Fund over $1 Billion in profits in one day. Next in line are multinational corporations who are forced to be participants in the forex market because of their overseas earnings which are often converted back into US Dollars or other currencies depending on where the company is headquartered. As the value of the currency in which the overseas revenue was earned can rise or fall before that conversion, the company is exposed to potential losses and/or gains in revenue which have nothing to do with their business. To remove this exchange rate uncertainty many multinational corporations will hedge this risk by taking positions in the forex market which negate any exchange rate fluctuation on their overseas revenues. Secondly these corporations also buy other corporations overseas, something which is known as cross boarder mergers and acquisitions. As the transaction for the company being bought or sold is done in that company's home country and currency, this can drive the value of a currency up as demand is created for the currency to buy the company or down as supply is created when the company is sold. Lastly are individuals such as you and I who participate in the forex market in three main areas. 1. As Investors Seeking Yield: Although not very popular in the United States, overseas and particularly in Japan where interest rates have been close to zero for many years, individuals will buy the currencies or other assets of a country with a higher interest rate in order to earn a higher rate of return on their money. This is also referred to as a carry trade, something that we will learn more about in later lessons. 2. As Travelers: Obviously when traveling to a country which has a different currency individual travelers must exchange their home currency for the currency of the country where they are traveling. 3. Individual speculators who actively trade currencies trying to profit from the fluctuation of one currency against another. This is as we discussed in our last lesson a relatively new phenomenon but most likely the reason why you are watching this video and therefore a growing one.
Views: 35696 InformedTrades
Continue your trading education: http://www.informedtrades.com/ Practice day trading with a demo account: http://bit.ly/IT-forex-demo3 A lesson on the advantages and disadvantages of day trading the stock, futures, and forex markets for active traders and investors.
Views: 20862 InformedTrades
Erich Senft CTA, founder of tradershelpingtraders.com and supportandresistance.com gives his weekly chart lesson on using support and resistance, upon which almost all technical analysis is based regardless of whether you trade forex, futures or stocks; whether you're a scalper, day trader or position trader. Required Disclaimer: Commodity Futures Trading Commission: Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with money you can’t afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results. CFTC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN. TESTIMONIAL DISCLOSURE: TESTIMONIALS APPEARING ON TRADERS HELPING TRADERS MAY NOT BE REPRESENTATIVE OF THE EXPERIENCE OF OTHER CLIENTS OR CUSTOMERS AND IS NOT A GUARANTEE OF FUTURE PERFORMANCE OR SUCCESS.
Views: 1493 Erich Senft
When using an online broker for stock trading, make sure to formulate a strategy as to how long to hold on to stocks before selling them. Trade stocks online, but start small and be careful not to lose money too fast, with advice from a futures and options floor trader in this free video on investing. Expert: Mark Griffith Bio: Mark Griffith has graduated in economics and philosophy at Clare College, Cambridge. He has been a futures and options floor trader at LIFFE (London International Financial Futures Exchange). Filmmaker: Paul Volniansky
Views: 8256 eHow
Practice trading with a free demo trading account: http://bit.ly/IT-forex-demo3 In our last lesson we finished up our discussion the different styles of trading with a look at the longer term style of position trading. In today's lesson we are going to start a new discussion on one of the trader's most powerful tools, the trading journal. As I think most people who are successful at anything will tell you, a major factor that separates the successful from the unsuccessful is those who are successful look at each experience as a chance to learn and grow where those who are not move from one experience to another without learning much at all. With this in mind one of the major things that separates the profitable trader from the unprofitable trader is an openness to learning from each trade, and a willingness to put in the effort it takes to document and periodically review each trade that is made. Traders who document their trades do so in trading journals. This can be as simple as writing down certain details of your trades in a notebook or in a word document, however those who know a bit about excel normally find this a much more powerful option Below are 10 things that in my opinion it is important to document about each trade. : 1. The general market conditions for that specific trading day. For example is there a lot of volatility in the market, is the market trading lower or higher, ranging or trending? 2. Why you entered the trade, the time you entered the trade, and the price you entered the trade. 3. Why you exited the trade, the time you exited the trade, and the price you excited the trade. 4. Whether the trade was a long or short trade. 5. What happened with the market from the time you opened the trade to the time that you closed the trade. 6. The money management parameters you used in the trade and which we covered in our previous lessons on the subject. 7. Many traders will also attach a chart with their analysis on it to help them remember the trade when they review their trading journal. 8. Where you were weak that particular day and what you are going to do to address those weaknesses. 9. Where you were strong that day and what you are going to do to address those strengths. 10. Any other thoughts that you had that day which should be noted. http://www.informedtrades.com/20418-10-components-successful-trading-journal.html That's our lesson for today. In tomorrow's lesson we will look at the next and equally important step of how to go about reviewing your trading journal periodically in order to make sure that you leverage your journal to improve your trading.
Views: 37245 InformedTrades
Practice these concepts with a free practice charting and trading account here: http://bit.ly/IT-forex-demo3 For the full lesson with images, text, links, and discussion, go here: http://www.informedtrades.com/5356-crowd-psychology-following-sheep-slaughter.html For our full beginner course in technical analysis and trading, go here: http://www.informedtrades.com/index.php?page=freetradingcourses And of course, don't forget to jump start your learning as a trader by registering as a member of our learning community: http://www.informedtrades.com VIDEO NOTES A lesson on crowd psychology and how it relates to trading the stock, futures, and forex markets. The best summary that I have seen on this subject, as well as a great book on trading in general is Dr. Alexander Elder's book Trading for a living. As the Trader and Psychologist points out in his book, people think differently when acting as part of a crowd than they do when acting alone. Dr Elder points out that "People change when they join crowds. They become more credulous, impulsive, anxiously search for a leader, and react to emotions instead of using their intellect." In his book Dr. Elder gives several examples of academic studies which have been done which show that people have trouble doing simple tasks such as choosing which line is longer than the other when put in a situation with other people who were instructed to give the wrong answer. Perhaps no where is the strange effect is the psychology of crowds seen than in the financial markets. One of the more recent examples as I have spoken about in my other lessons of the effect that the psychology of crowds can have on the markets is the run-up of the NASDAQ into 2000. As you will find by pulling out the history books however, this is not an isolated incident as financial history is littered with similar price bubbles created and then destroyed in the same way as the NASDAQ bubble was. So why does history continue to repeat itself? As Dr. Elder points out in his book, from a primitive standpoint chances of survival are often much higher as part of a group than they are alone. Similarly war's are often one by militaries with the strongest leaders. It is thus only natural to think that human's desire to survive would breed a desire to be part of a group with a strong leader into the human psyche. So how does this relate to trading? Well as we learned in our lessons on Dow Theory, the price is representative of the crowd and the trend is representative of the leader of that crowd. With this in mind think about how difficult it would have been to short the NASDAQ at the high's in 2000, just at the height of the frenzy when everyone else was buying. In hindsight you would have ended up with a very profitable trade but, had the trade not worked out, people would have asked how could you have been so dumb to sell when everyone else knew the market was going up? Now think about all the people who held on to their positions and lost tons of money after the bubble burst in 2000. As they had lots of company there were probably not a whole lot of people who were laughing at them. Yes they were wrong but how could they have known when so many others were wrong too? By looking at this same example, you can also see how panic selling often ensues after sharp trends in the market as this is representative to a crowd whose leader has abandoned them. In order to trade successfully people need a trading plan which is designed before entering a trade and becoming part of the crowd so they can fall back on their plan when the emotions which are associated with being part of a crowd inevitably arise. Successful traders must also realize that there is a time to run with the crowd and a time to leave the crowd, a decision which must be made by a well thought out trading plan designed before entering a trade. That completes our lesson for today and our lessons on the psychology of money management. In tomorrow's lesson we are going to begin looking at different strategies which can be used to manage a trade once you have entered, which many traders also use to help remove some of the negative emotional effects of trading as part of a crowd. As always if you have any questions or comments please leave them in the comments section below so we can all learn to trade together, and good luck with your trading!
Views: 83460 InformedTrades
Practice these concepts with a free practice charting and trading account here: http://bit.ly/apextrader For the full lesson with images, text, links, and discussion, go here: http://www.informedtrades.com/5837-how-set-stops-using-average-true-range-atr.html For our full beginner course in technical analysis and trading, go here: http://www.informedtrades.com/index.php?page=freetradingcourses And of course, don't forget to jump start your learning as a trader by registering as a member of our learning community: http://www.informedtrades.com VIDEO NOTES A lesson on how to include volatility in setting for traders of the stock, futures, and forex markets. In our last lesson we looked at determining how much you are willing to risk on any one trade as the first step in developing a successful money management strategy. Now that we have established this, in today's lesson we are going to look at some of the different ways that you can then set your stop, which fit within this initial criteria. As we learned in last lesson, risking more than 2% of total trading capital on any one trade is a major reason for the high failure rate of most traders. Does this mean that when setting a stop we should simply figure out how many points away from our entry represents 2% of our account balance and set the stop there? Well, traders could obviously do this and to be honest it would probably be a lot better than most of the other money management strategies I have seen, but there better ways. Although many traders will look at other things in conjunction, having an idea of the historical volatility of the instrument you are trading is always a good idea when thinking about your stop loss level. If for instance you are trading a $100 stock which moves $5 vs. a $100 stock that moves $1 a day on average, then this is going to tell you something about where you should place your stop. As it is probably already clear here, all else being equal, if you put a stop $5 away on both stocks, you are going to be much more likely to be stopped out on the stock which moves on average $5 a day than you are with the stock that moves on average $1 a day. While I have seen successful traders who get to know a list of the things they are trading well enough to have a good idea of what their average daily ranges are, many traders will instead use an indicator which was designed to give an overview of this, which is known as the Average True Range (ATR) Developed by J. Welles Wilder the ATR is designed to give traders a feel for what the historical volatility is for an instrument, or very simply how much it moves. Financial instruments that exhibit high volatility move a lot, and traders can there fore make or lose a lot of money in a short period of time. Conversely, financial instruments with low volatility move a relatively small amount so it takes longer to make or lose money in them all else being equal. As with many of the other indicators we have studied in previous lessons, Wilder uses a moving average to smooth out the True Range numbers. When plotted on a graph it looks as follows: What you are basically seeing here is a representation of the daily movement of the EUR/USD. As you can see when the candles are longer (which represents large trading ranges and volatility) the ATR moves up and when the candles are smaller (representing smaller trading ranges and volatility) it moves down. So with this in mind, the most basic way that traders use the ATR in setting their stops is to place their stop a set number of ATR's away from their entry price so they have less of a chance of being knocked out of the market by "market noise". That's our lesson for today. In tomorrow's lesson we are going to look at how you can use volatility based stops in conjunction with another method traders use for setting stops based on technical levels so we hope to see you in that lesson. As always if you have any questions or comments please leave them in the comments section below so we can all learn together and good luck with your trading!
Views: 175135 InformedTrades
Practice trading with a free demo account here: http://bit.ly/IT-forex-demo3 http://www.informedtrades.com/ A lesson on how to incorporate multiple support or resistance levels into a trading strategy for the stock, futures, or forex market to reduce the chances of being stopped out on a trade. In our last lesson we looked at how many successful traders incorporate support and resistance into their trading strategies. In today's lesson we are going to expand on this concept by looking at how many traders look for multiple support or resistance levels when placing trades as well as how many chart patterns incorporate this concept already, providing traders with areas in which they can place their stops. As we learned about in our last lesson, when setting a stop many traders will find a level of support if they are buying to enter the trade or resistance when they are selling to enter the trade and place there stop outside of this level. When entering trades many successful traders will also look for trades which have few if any levels of support/resistance in the direction they are trading, but several levels of support/resistance in the direction in which they are placing their stop. Chart example: As we have also learned in previous lessons, one of the key reason's why traders favor or recognize certain chart patterns is because they often times signal what is next to come in the market. What is often overlooked however about almost all of the most popular chart patterns, but perhaps just as important, is their ability to point out potential places where you want to place your protective stop loss. As you can see from the below chart the head and shoulders pattern is a perfect example of this. By entering the trade on a break of the neckline and placing the stop just above the right shoulder of the pattern traders ensure that there are at minimum two resistance levels in between their entry price and their stop level if not more. Chart Example For patterns such as the triangle pattern which do not already incorporate this multiple support/resistance levels between your entry and your stop concept, it is often wise to find entry opportunities which provide these additional levels naturally in addition to the setup when looking at the chart pattern in isolation: That's our lesson for today. In tomorrow's lesson we are going to look at another way traders use to set their stops: Indicator based stops so we hope to see you in that lesson. As always if you have any questions or comments please leave them in the comments section below so we can all learn to trade together, and have a great day!
Views: 61593 InformedTrades
http://www.informedtrades.com/20448-7-things-your-trading-journal-should-tell-you.html In our last lesson we began our discussion on how successful traders leverage trading journals in order to learn from their past mistakes and successes. In today's lesson we are going to wrap up our discussion on trading journals with a look at what to look for when reviewing your trades. Simply writing the days activity down in your trading journal is the first step. The next and equally important step is to review your journal on a regular basis to see what is working and what is not. This way you can leverage your journal to help you improve in areas where you are weak and make sure you continue to leverage your strengths where you are strong. There is a great article from Brett Steenbarger at Traderfeed.com which addresses some of the major things that traders should analyze when reviewing their trading journal. In this article Dr. Steenbarger says: Number of long and short trades -- I correlate this to the trend condition of the market to see if I'm trading with the current or against it; if I'm trading in a one-sided way in a range-bound market. The number of trades also tells me if I'm overtrading. [/I] Number of winning and losing trades -- When I'm trading well, I have more winning trades than losers by a reasonably healthy margin. When the ratio dips for more than a short time period, I need to re-evaluate my trading and my trading strategies. Time holding trades -- I'm a short-term trader, and I tend to have a relatively narrow time band in which I hold trades. Moving beyond that band tells me I'm either cutting trades short or going for home runs—and neither of those have worked for me in the past. Time holding losing trades versus winners[/B] -- It is very hard to make money over time by holding losers. Eventually, the size of the losers becomes greater than the winners so that even a trader who has more winning trades than losers can end up in the red. Profit/Loss broken down by long and short trades and broken down by market condition. This tells me if I'm trading ranges better than breakout movements; whether I'm doing better on the long side or the short side. If my performance is significantly worse in one mode than another, I start to examine my trading for needed improvements. I would add to this list average profit on profitable trades vs. average loss on unprofitable trades and largest drawdown or loss the account suffered before returning to profitably. That completes our lesson for today and also wraps up our course on the basics of trading. In our next lesson we are going to begin a new course which covers the basics of Forex Trading so we hope to see you in that lesson.
Views: 18491 InformedTrades
GRAB THE 3 SETUPS WHILE YOU STILL CAN...http://www.bollingerbandgenius.com/bollinger-bands.html - This simple formula is how I turned $532 into over 50K in a little over a year. I have been trading with Bollinger bands for over 10 years. This video will show you how I do it. If I was only able to use 1 tool or indicator to trade with I would use Bollinger Bands and If you watch this video you will see why. make sure to download my free report on Bollinger bands as I go into much more detail and show you my exact setups. Plus by downloading the report you get access to a 10 part email series that will make you an expert. http://www.bollingerbandgenius.com/bollinger-bands.html
Views: 823289 Mark Deaton
Practice trading with a free demo trading account: http://bit.ly/IT-forex-demo3 View full lesson: http://www.informedtrades.com/21008-how-forex-broker-provides-access-individual-traders.html The platform featured in the video is the FX Trading Station. Click here to try a register for a free practice account on the FX Trading Station: http://bit.ly/register-fxcm-demo Before the internet, very few individuals traded foreign exchange as they could not get access to a level of pricing that would allow them a reasonable chance to profit after transaction costs. Shortly after the internet became mainstream however several firms built online trading platforms which gave the individual trader a much higher level access to the market. The internet introduced two main features into the equation which were not present before: 1. Streaming Quotes: The Internet allowed these firms to stream quotes directly to traders and then have them execute on those quotes from their computer instead of having to deal over the phone. This automated trade processing, and therefore made it easier for firms to offer the ability to trade fx to the individuals and still be profitable. 2. Automatic Margin Calls: What is not so obvious but what was perhaps even more key is that the internet allowed an automated margin call feature to be built into the platform. This allowed firms to accept cash deposits from clients instead of having to put them through the process of signing up to trade via a credit line. As we discussed in our last lesson it is very difficult to get a credit line to trade FX and for those who do it is a lot of paperwork and hoops to jump through before they can begin trading. This would have made it impossible to offer FX trading to smaller individual traders as the cost involved in getting them set up to trade would not be worth it. As the electronic platform allowed clients to deposit funds and then automatically cut them out of positions if they got to low on funds, this negated the need for credit lines and made the work to get an individual account open well worth it to the forex broker from a profit standpoint. If you don't understand all the ins and outs of margin at this point don't worry as this is something that we are going to go into much more detail on in a later lesson. For now it is simply important to understand that what these firms did was take all the traders who were not big enough by themselves to get access to good pricing and routed their order flow through one entity that was. This allowed these firms access to much tighter pricing than would otherwise have been possible which was then passed along plus a little for the brokers to the end client. So now you can see why although the forex market has been around for a relatively long period of time, individuals have only started to trade the market over the last few years. Anther key thing that it is important to understand here is that the larger a firm gets in terms of trading volume, the greater access that firm has to tighter prices and liquidity and the more likely that firm is to be able to pass on better pricing and execution to their clients. This is another reason that many traders will evaluate the size of a firm as one of the key factors in deciding who to trade with.
Views: 31507 InformedTrades
Living in Our Vans (2008): Mortgage crisis forces thousands of Americans to live in their vans. Subscribe to journeyman for daily uploads: http://www.youtube.com/subscription_center?add_user=journeymanpictures Since the beginning of the mortgage crisis one and a half million Americans have lost their homes. With banks repossessing their houses, many have been left no other option than to move into their cars. The streets of California are now filled with people who call their car their home. Jennifer Clement, explains, "The estimated value of our house went to 120,000 U.S. dollars within a month. After losing all the money, we literally landed on the street and were forced to live in our caravan". It is a vicious circle: Without a job - no home. Without an apartment - no job. For Similar Stories See: Overdose: The Next Financial Crisis: https://youtu.be/4ECi6WJpbzE Rogue Traders' Behaviour Helps Give New Insight Into the Global Financial Crisis: https://youtu.be/wN1timTYasc Meet the Californian Homeowners Hit Hard by the Housing Crisis https://youtu.be/wN1timTYasc Like us on Facebook: https://www.facebook.com/journeymanpictures Follow us on Twitter: https://twitter.com/JourneymanNews https://twitter.com/JourneymanVOD Follow us on Instagram: https://instagram.com/journeymanpictures ORF - Ref. 4122 Journeyman Pictures is your independent source for the world's most powerful films, exploring the burning issues of today. We represent stories from the world's top producers, with brand new content coming in all the time. On our channel you'll find outstanding and controversial journalism covering any global subject you can imagine wanting to know about.
Views: 704980 Journeyman Pictures
The platform featured in the video is the FX Trading Station. Click here to try a register for a free practice account on the FX Trading Station: http://bit.ly/forex-demo1 A lesson on getting set up with a forex trading demo account for active currency and foreign exchange traders.
Views: 141123 InformedTrades
Check out: "Top Psychological Mistake Traders Make (from a Golf Perspective)" https://www.youtube.com/watch?v=QHI0TCG8kdU --~-- This is the one fatal mistake that most traders make that puts them in the 90% that lose - and why. http://insideouttrading.com
Views: 2161 Brian McAboy
Practice placing orders with a demo trading account: http://bit.ly/IT-forex-demo3 A lesson on how to place a stop loss and take profit order in the forex market. For active traders and Investors in the forex market.
Views: 66997 InformedTrades
http://www.informedtrades.com/ The second lesson of two on interest rates, why they are so important to the stock market and to traders and investors in the stock, futures, and forex markets with an introduction to the Federal Reserve. In yesterday's lesson we began our discussion on Monetary Policy with a look at one of its primary components, interest rates. In today's lesson we are going to continue this discussion with another look at how interest rates affect the economy and therefore the markets, and by introducing the institution which implements Monetary Policy, the Federal Reserve. As we saw in our example yesterday, small movements in interest rates can have dramatic effects on the economy. Just as small changes in interest rates can dramatically increase the costs for individuals to own a home or borrow money to purchase other goods, they can also have a dramatic affect on the cost of doing business. It is for this reason that when interest rates rise, making borrowed money more costly, that people will also be less likely to start or expand a business. This not only has an effect on the business owner themselves but filters throughout the entire economy as less businesses being started and expanded means less jobs, which means less people getting paychecks, which means less people spending money and on and on down the line. The opposite is of course also true for when interest rates fall and business owners take advantage of access to cheaper borrowed money. In addition to interest rates affecting the stock market, interest rates also have direct and indirect affects on the bond, foreign exchange, and futures markets. Here are a couple of quick examples of this which we will expand on in later lessons: The Bond Market: When interest rates rise the value of existing bonds fall as investors can now purchase the same bond with a higher interest rate and vice versa. The Forex Market: When Interest rates it becomes more attractive from a yield standpoint to own the dollar against other currencies or to invest in interest bearing dollar based assets. This creates a demand for dollars which will many times cause the dollar to strengthen. The reverse is also true when interest rates fall. The Commodities Market: When economies grow at a greater rate as a result of lower interest rates this will mean a greater demand for commodities so their value will rise and vice versa.
Views: 20315 InformedTrades
http://www.ForexCoachingPros.com http://www.ForexTidalWave.com http://www.forexeducationstation.com/funnel_events/3965 Stephen Story discusses the benefits of learning Forex Trading from others as opposed to hacking through it on your own.
Views: 9694 ForexCoachingPros
While Russian markets are in for another tough day Wall Street has seen the Dow Jones sink to its lowest point in years, despite the government's 700-billion dollar bailout plan. Monday saw stocks take their most brutal one-day beating in a decade.
Views: 997 RT
http://www.informedtrades.com/ A look at what forex traders need to know about the currency of Australia, the Australian Dollar.
Views: 6884 InformedTrades
http://goo2.be/fxofficial Forex Insider Jason Alan open the doors to his closely guarded trading techniques and provides daily updates to you, see his trade in real time, see how he make real lot of money, This is where you will get your first look at what makes a professional FOREX Trader! If you want to make money trading the FOREX Markets I have the knowledge and the tools to put you ahead of the curve. Let's start with the basics Have you ever wondered why the majority of FOREX Traders LOSE Money? With all the trading systems, along with the latest and greatest FOREX trading technology, not to mention all the education and training; you would think more than a select group would be able to consistently make money, right? I'm not talking about winning trades here and there or for a month or two - I mean REGULAR and SIZABLE gains
Views: 230 Oleisaksen
Erich Senft of Traders Helping Traders presents some tricks of the trade Required Disclaimer: Commodity Futures Trading Commission: Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with money you can’t afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results. CFTC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN. TESTIMONIAL DISCLOSURE: TESTIMONIALS APPEARING ON TRADERS HELPING TRADERS MAY NOT BE REPRESENTATIVE OF THE EXPERIENCE OF OTHER CLIENTS OR CUSTOMERS AND IS NOT A GUARANTEE OF FUTURE PERFORMANCE OR SUCCESS.
Views: 975 Erich Senft
The platform featured in the video is the FX Trading Station. Click here to try a register for a free practice account on the FX Trading Station: http://bit.ly/IT-forex-demo3 View full lesson: http://www.informedtrades.com/21270-setting-up-your-demo-forex-trading-account.html A lesson on what trading on margin is and how this applies when trading the forex market. For active traders and investors seeking to learn how to trade the currency market.
Views: 39410 InformedTrades
CNBC anchor Rick Santelli talks about reaction of traders in Chicago market during Ron Paul questions to FED chairman Ben Bernanke.
Views: 39033 peacespeech
http://www.1-forex.com Forex trading is one of the most looked for occupations for many people these days. Around the world people is getting tired of fixed working hours and tight cubicles that limit their aspirations of a more relaxed and satisfying working life. In order to start Forex trading the new trader doesnt need a fortune or good Wall Street contacts that will let him become part of the chosen ones. The only thing the new forex trader needs is some starting capital (as low as $100, but an amount around $5000 would be more recommendable) and the free forex trading platform that will be provided by the Forex broker. But one thing is to start Forex trading and other very different is becoming a profitable Forex trader. In order to become a profitable trader the new trader will immediately discover the imperative need of having an accurate knowledge of the markets and a good understanding of the forex technical indicators. Concepts as Moving Averages, Fibonacci levels, Bollinger Bands, etc; are the basic knowledge every trader must have. This basic knowledge is indeed essential but once in front of the trading station, with real money on the line and with an open trade subject to the currency markets oscillations; things will start to get tricky even if the basic technical concepts of forex trading have been understood by the beginning and sometimes also by the experienced trader. Knowledge will start to fade in front of one of the most basic instincts we humans beings have. Fear will ask for an entrance to the traders mind and if let in by the inexperienced trader, it will turn the making of critical decisions difficult and many bad trading moves may follow. It is very natural to be afraid and let fear invade us if we are not really sure of what we are doing or we can not afford to lose even a cent in a bad trade; or seen in a different approach, the trader is so anxious and perfectionist that he wont let him lose anything and will take it very seriously if he loses a trade. Fear is one of the worst enemies of the Forex trader. In order to become a profitable trader it is essential that the person involved in trading understands that he must leave fear aside and stick to the trading plan he has constructed and arranged before, always understanding that losing trades happen to everyone and they are always part of a profitable trading career. A forex trader must learn how to profitable use his stops without heavily compromising the capital in his trading account, i.e., he must play safe but realizing that a calculated risk must be undertaken in order to maximize profits. In short, fear is a natural emotion we all humans have given the right environment is present; therefore it is the traders obligation not to arrange a fear environment around him and be psychologically prepared for the ups and downs of the trade. No one is prefect and thats an even deeper truth in forex trading. Forex Killer Forex Funnel Silicon Forex Forex Raptor Find them all in this site.
Views: 1131 articlewis
http://ftse100pro.com/ To check out the site please click the link above.
Views: 294 FTSE100TRADER
http://www.millionairetrader.co.uk Here is a clip from the Sold out Making Money From Global Financial Trading Day. For over 8 hours Vince Stanzione revealed his secrets to a worldwide audience with attendees coming from China, Australia, USA, Europe and the Middle East. Vince Showed how he had made over £3.7 million pounds trading profits spending less than 30 mins a day working from anywhere in the world. To find out more and how to enrol for the 2009 millionaire trading program please go to www.millionairetrader.co.uk
Views: 50529 Vince Stanzione Making Money From Trading