tips 4 traders
Saturday, September 10, 2016
Friday, July 29, 2016
How to Trade With Your Gut
The best traders are observers and anticipate their moves beforehand; this is called the “gut feeling”, every trader should rely on the gut feeling while trading as it is something that will undoubtedly establish to a higher degree as you gain your experience in the market.
Gut feeling can be understood by starters if we call it trading inspiration as well as high hopes, this is a very significant and dominant tool that you will need to develop to move up into the top 10% outstanding traders.
Practice Makes Perfect
A lot of professional sports players have put in massive amounts of effort and practice and because of this; they have been able to go pro, they have played with a wide range of different players and this is what gives them the gut feeling to what their opponent’s next move will likely to be, this gives them leverage out on the field, much in the same way, in your trading strategy when you’ve put in enough screen time, you will start to develop the gut feel. There are many more situations where gut feelings takes place, whether it be sports, trade or other more practical fields in life, but in all, it surely requires experience and commitment for development.
Gut Feeling and Price Action Trading
The various strategies that the trader uses will eventually become common facts to the experienced trader and as time goes on, the traders’ gut feel will help him determine if a trade is worth taking or not. Sometimes the trader may not even know why he is choosing the side of the market and not the other but his experienced mechanism will build up his thinking level, while he makes decisions the more experience and exposure that he has gotten with the charts and price action, the more prompt he will become.
It won’t come very quickly and will require lots of time of practice and experience but as you look at the charts and price actions, the gut feel will develop along with the development of strategic thinking.
-See more at: https://goo.gl/pPHoLn
Thursday, July 28, 2016
How to Think Like a Successful Trader
You’re at it again, you’re spending the day sitting before a chart and bickering with yourself over what trading card to play next.
You think you have it, you feel the adrenaline coursing through your veins as you watch all the signs point towards profit and success for you, success so close you can almost taste it but wait!- there’s a shift in the trade, and it’s unexpectedly moving against you, your shoulders sag, both your stomach and your mouth drops.
You wait and watch in dismay as the trade continues to move against you and then that’s it. You’ve lost, again, you’ve made the same mistakes you made the last ten times.
What you need to realize is that you can’t help what you’re feeling but what you can do is try and make a change. As a trader you need to understand that emotions and feeling often take over all logical thinking and successful traders keep their feeling in tow when trading amongst doing other things.
Successful Traders are Fully Aware of the Workings of Their Minds
To think like a successful trader you need to develop an understanding of your mind, especially when you are trading, a good trader knows his limits and what his goals are, he does not easily get distracted by other unimportant things while trading. Good traders know what it is that will motivate them and what kind of thoughts they should be having while trading that will have a positive effect on the way that they trade. So to get the mindset of a winner, first get to know your mind and get to know it well.
They Know the Importance of Being Biologically Healthy too
What most traders don’t realize is that their biological condition has the ability to greatly impact their mental stability while they trade. Something as simple as taking deep breaths at the right time could have been the difference between you losing or you winning. The mind and the body are linked together instead of getting worked up and letting the adrenaline take over them, successful traders exercise and know well enough what the advantages of being healthy are.
-See more at: https://goo.gl/t4YrA6
Wednesday, July 27, 2016
How to Get Back on Your Feet After Continuous Trading Losses
Most of us traders have been there, incurred so many losses,
so many times that we’re actually unsure of whether or not we should
continue trading. Well we’re here to tell you there’s nothing you
morally did wrong (unless, of course you cheated to get on top) you
might have made some common trading errors that a lot of beginners tend
to make.
We’re here to help you get back up when trade
financially and emotionally hits you hard in the stomach and reminding
you that you can’t let one streak of losses ruin all your chances of
succeeding in the future.
Understand What You Did Wrong
This step is extremely very important because
before you can get back up and think, “Okay, I got it this time,” you
need to know what you did wrong to fail the first time around, if you
don’t do this you’re just in for even more losses. There are basically
two types of losses that a trader can go through;
A statistical/normal loss:
A statistical loss is one which is incurred mainly
due to some sort of overvalue or undervaluation that might have
effected your trade strategy, this type of loss can also be called a
normal loss because it is normal for a trader to often at times lose.
The fact of the matter is that there will be losers in a trade as well
as winners, statistically speaking, even if you employ the most winning
trading strategies, a certain percent of you will definitely be losers.
Emotional loss
Emotional loss is pretty self explanatory, all
traders are humans, and human beings sometimes do let their feelings and
emotions get in the way of their work. Emotional loss also refers to
losses made when you let your inner feelings such as desire for revenge,
greed or over confidence get in the way of you and your real trading
objectives. You can even feel pressurized- especially if you’re a full
time trader to gain as much profit as you can and this can lead to
losses if you’re not able to handle the pressure properly.
-See more at: https://goo.gl/VRXKYx
Friday, July 22, 2016
The US Dollar in the Aftermath of the Brexit Vote
GBP has dropped more than 8% against USD in the aftermath of Brexit vote. This is a serious concern and one should be alarmed if they trade US dollars.
Brexit 52% vote over 48% Bremain vote sent shockwaves in the International financial market on Friday. This marked an end to UK’s 43 years EU membership in a referendum that attracted a record 72% of the registered voters. The pound dropped more than 8% against the dollar in the early trading session while its Euro counterpart was down more than 7%. In the run up to the voting day, polls showed a tightly contested campaign too close to call with major pollsters showing a bias towards remain.
At 2100GMT the polling stations closed, YouGov polls showed remain with its nose ahead of leave by a 4 point lead at 52% remain Vs 48% leave. Another survey carried out by ComRes implied a 6 lead at 48% remain compared to 42% leave camp. At the end of the Friday trading session, assets worth over $10 trillion had been wiped out of FTSE benchmark as the yield on 10-year UK government bond fell below 1% for the first time in history as reported by Sky News.
It will take approximately two years for Britain to formally withdraw from the EU. Until 2007, there was no formal procedure for member states to withdraw from the EU. No member state has ever rescinded its EU membership even though the Lisbon treaty sets out the withdrawal procedures.
David Cameroon resigned after the vote, in The Guardian article “I was absolutely clear about my belief that Britain is stronger, safer and better off inside the EU. I made clear the referendum was about this, and this alone, not the future of any single politician, including myself.
-See more at: https://www.hiwayfx.com/forex-articles/us-dollar-aftermath-brexit-vote
Thursday, July 21, 2016
BREXIT: Game Changer for the UK and the EU? What to Expect Next
EU leaders have already met to ponder over the way forward after Britons surprised the world by voting to leave the EU. Ex-PM David Cameroon urged the EU to give Britain more control over immigration. Cameroon had promised the EU leaders in the run-up to the referendum that he would deliver the win. EU leaders may blame him for allowing the Brexit referendum in the first place, but as he explained, the pressure was too huge to avoid.
At the EU summit in Brussels, French President Francois Hollande, made it clear that UK must be ready to bear the consequences of leaving the biggest single market union. It is not business as usual, U.K. won’t enjoy the advantages of the EU single market after rescinding its membership without applying the rules governing trade in the monetary union, reported Bloomberg.
Ben Bernanke weighed in his thoughts on Brexit. The former chairman of Federal Open Market Committee and leading US economist says that the biggest loser is Britons themselves. The votes open doors to numerous political and economic uncertainties in the UK. Uncertainty about how the UK will manage the trade rules with its neighbors in continental Europe. The fate of workers in the UK of foreign origin as well as UK workers in EU countries. Bernanke also makes a case on the uncertainty over the political direction the deeply divided country will take going forward.
-See more at: https://www.hiwayfx.com/forex-articles/brexit-game-changer-uk-and-eu-what-expect-next
Tuesday, July 19, 2016
Theresa May and the Way Ahead With Brexit for the UK
Background Analysis
Theresa
May is going to be the new prime minister of the United Kingdom. It is
also a fact that most people know what led to her becoming the prime
minister. But for the sake of those that are not so conversant with
developments in the United Kingdom or current affairs in general, I will
give a little background of what led to her succeeding David Cameron as
prime minister.
There
were calls from UK citizen for the country to break away from the Euro
block in which the country was a key player. The argument from this
group of citizens was that the country will be better off being alone
than being a member of the euro block. While the calls were going on,
some citizens not in support of the break-away called for restraining
and caution.
David
Cameron being the then prime minister left with the task of conducting
the popular Brexit referendum to decide whether the country will remain
in the block or pull out. He, however, made his decision clear to the
citizens and fellow politicians of his intention to resign as prime
minister if the citizens voted to leave the block during the Brexit
referendum.
Brexit Outcome and its Aftermath
Following
the successful conduct of the Brexit referendum and the eventual
outcome of the voting result, it became clear that majority of UK
citizens voted in favor of the country breaking away from the Euro
block.
The
attention of the world then shifted from the outcome of the referendum
to wanting to know how the decision will affect not just the Euro block
but the world in general economically and financial.
There
were fears of how the result will affect financial markets in Europe
and the world in general. There were equally fears of what will become
of the Pound Sterling and the Euro when compared to other major
currencies of the world.
Financial Impact of Brexit on the Pound Sterling
Following
the end of the referendum, the country’s currency gained slightly
against the United States dollar and the euro. The currency also gained
against other major world currencies. But there were fears whether this
gains will be sustained or not following the change of power in the
country, as a result of the resignation of David Cameron as prime
minister and the coming to power of Theresa May.
This
is due to the fact that she may likely introduce new economic changes
and financial policies which could affect the country’s currency
positively or otherwise.
-See more at: https://www.hiwayfx.com/forex-articles/theresa-may-and-way-ahead-brexit-uk
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