Sunday, December 29, 2013

Profitable trading career

You need to use trailing stops to lock in your profits and not think about how much money you are making on the trade. Selling to soon is where fear comes in instead of watching your charts and waiting for the selling to stop. If you have set a proper stop loss and the trade is still above it let the trade pan out.
  These two emotion can ruin a new traders experience and wipe out their trading account. You need to keep these two emotions out of your trading as much as possible. Make sure to have a trading plan that will consistently make you money in the markets. You need to be careful when you see a large green candle going up fast so you decide to chase the trade. Chasing a trade or greed will work against you especially if you buy at the top of the green candle and the sellers now start to take their profits. As you see the next candle turn red you sell out of fear this is a trap most new traders get caught in. if you are basing your trading decisions on emotions you will quickly wipe out your trading capitol.
  Traders who get past trading out of emotions will learn to follow their trading plan and become profitable. Money management is most important to new traders especially in the forex markets. There are many candle spikes in the currency markets and to trade with poor money management will kill you in the end. You need to wait for the right set up before you enter your trade. Trends change all the time due to news and the world markets which goes on everyday. You need to understand your not missing anything so be patient and wit for your trade to develop. Do net trade out of boredom this is a mistake. Make sure to stick with your trading plan and work on good capitol management. Your winning trades will increase as long as you keep emotions out of your trading and have a solid plan to make trades. As you have profitable trades make sure to evaluate the trade and why it worked.