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How To Think Like A Master Trader
Forex Trading Explained.
DrForex's top selling forex book Bird Watching in Lion Country - Forex Trading Explained in e-format.
Author: Tim Wreford Article source: http://forextradinginfo.blogharbor.com/. Used with author's permission.
Do you think like a winner or a loser? Here are 6 key elements of a winning trading mindset:
1. Have a trading objective. You must know what you are trying to achieve before you can set about creating a plan to achieve those goals. Are you trying to create a certain level of income from trading or creating a pension fund? Break down your overall aim into achievable steps. Creating an income of $100,000 per year is daunting but breaking that down by 220 trading days (after holidays etc) per year means averaging $450 per day. That's 9 ES points per contract per day or just 1 ES point trading 9 contracts per day. Be realistic with your trading capital.
Once you know what you are trying to achieve you can start to formulate a plan to achieve that goal. You must then have the belief that you will achieve that goal and that confidence comes from a well developed trading plan. The more you visualise your goal being achieved the stronger your belief and confidence will be.
2. Have a trading plan. Your trading plan acts as a road map to achieving your goals. It must be as detailed as possible. Your trading plan also acts as a guide to your daily trading - compare your daily trading performance to your plan and ensure you are still on the right path.
3. Plan each day. Before each trading day starts you must know exactly what you will do in any situation. We don't know what the market is going to do but we can make sure we know what we are going to do. Without a daily plan you will be reacting to the market, you will get in late on moves and panic when the market doesn't do what you want it to. Be pro-active and plan your day in advance - you shouldn't have to make any decisions when the market is open.
4. Monitor results. Regularly compare your actual trading results to your trading plan. Periodically you will find that adjustments will need to be made to your plan to improve it and move you forward towards your goal.
5. Discard negative emotions. You will have losing trades, do not dwell on a loser and move on to the next trade. Do not let a losing trade affect your next trade - stick to the plan.
6. Focus. Trading futures is a zero sum game (negative if you include commission costs) and you are competing against professional traders who are completely focused on the markets all day long. You cannot expect to win at trading if you dip in and out of the market here and there when you get a chance between meetings at work or popping to the shops. If you have limited time available then develop a trading plan to focus on this time alone. Develop a trading plan to suit your lifestyle. Tim Wreford runs Online Futures Trading, a website that provides information and resources for traders. Tim also provides a free day trading system, the results of which are updated daily on the site.
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The largest physical size of a paper bond was issued by "The New York Cable Railway, which measures approximately 2 feet by 3 feet including coupons, the denomination was $1000 and dated 1884.
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