Here's something that should help newbies and losing traders (ZT

来源: 华尔街大混混 于 07-04-21 12:40:03 [档案] [博客] [旧帖] [转至博客] [给我悄悄话

1. Put a big sign on your computer that reads: "I DON'T HAVE TO TAKE THIS TRADE!"

2. Before entering a trade, be sure that you know the reasons why you're making the trade, regardless of the direction or how quickly the price is moving. Don't fret about missing a trade. Look at all the trades you missed before you even started trading. Tomorrow's another day!

3. Set up Bollinger Bands (Close/20/2) on any time frame. If the price breaches the upper band, chances are that the price will reverse down. If the price breaches the lower band, chances are that the price will reverse up. Experience has shown that this is especially true when the Bollinger Bands are narrow.

Believe it or not, the easiest trades, especially for the newbie, are when the currency pair is consolidating (or ranging), which it does most of the time. Use the Bollinger Bands (which are narrow during consolidation). During consolidation, when the price breaches a band, take a trade in the opposite direction and be happy with 10-20 pip profits per trade.

4. Whether the pair is consolidating or trending, if the price breaches the upper band and you are about to buy, think twice. It may be better not to take the trade. If the price breaches the lower band and you are about to sell, think twice. It may be better not to take the trade. However, if the price breaches the band and continues to ride that band for the next few bars, that may indicate a strong trend and it may be safe to take the trade in the same direction.

5. Always, always, always trade in the direction of the trend after it has broken out of consolidation. If the trend is up, for example, and it starts to reverse down, don't sell (even if your indicators are also pointing down). A dip or price reversal doesn't necessarily mean that the trend has reversed. Instead, wait for it to continue dipping (it may even breach the lower Bollinger band), and then buy. Do this unless you see a confirmed trend reversal.

6. I am not implying that Bollinger bands, or any other indicator for that matter, should decide your trade. Simply use it to confirm a trade that you have already "carefully" planned.

7. Haste makes waste. Don't be too quick on the trigger. Don't worry that the price is moving quickly in the direction you want. If it was to be a good trade, you can take it as much as a half hour to an hour later, and you'll still make a profit.

8. Above all, don't let anyone else decide your trade for you. I know that there are some posters that you respect, but only use their assessments as confirmation of your "own" intentions.

I firmly believe that the above will help you more than 99% of the books and systems out there. Use this weekend to read this carefully, over and over again until you know it by heart, and even print it out to keep by your computer.

PS. A few other pointers that should be helpful:

1. If you enter a trade, and then you see the price go against you, don't get scared. Prices go up and down in waves just like the tide at the beach. Don't make the mistake of closing your trade too soon and settling for small profits. About the only time you'll see prices go straight up or down is during the few seconds (or minutes) after a major news release. Even then you'll probably see "spikes" instead of normal waves. It is best to avoid those times, and plan your trades so that they will not still be open during major news releases.

2. You've heard it repeated, "Always set your protective stops." The problem is how far away to avoid getting stopped out on what should have been a winning trade.

I solved that dilemma by never setting protective stops, BUT instead, I will set an audible alert on my chart just ahead of where I would have placed the stop.

I use CMS Forex: http://www.cmsfx.com/ (not to be taken as a recommendation, but I know someone will ask).

If and when I hear the alert, I can then reassess the situation and decide to either stay in or close the trade.

3. Get used to the fact that you will have losing trades. A losing trade is not a bad thing, nor does it necessarily mean that you did something wrong. Rather, it is a great time to reevaluate your trade decision and, if it was wrong, you can learn a great lesson from it. Use it make your own list of rules which can be added to the ones I gave you.

Losses are a normal part of the trading game. Just be sure that you have good money management and that your losses are not too big. Most losing traders are over-leveraged. You will find a lot of good information on money management by simply doing a Google search.

4. Finally, and this is probably the most important rule: Don't just focus on increasing your balance. Rather, your main focus should be on not losing your balance (both your money and your emotional balance).