Wanna become successful trader, follow these..

 To become a trader , this is enough,

1.A sytem with more than 60% accuracy. 

2.proper money management method

3.good risk reward ratio

4.Discipline

5.Sticking to these rules 

If you follow this you too can become succesfull trader

 Learn the Basics

Yes this is a simple one but it has to be said. A man has the pleasure of talking to scores of new traders on a daily basis. If there is one thing I have learned it’s that most newbies forego the basic training and jump straight into the warzone. This is of course a fatal error, on their part, so if you’re a newbie LEARN THE DAMN BASICS!

 You Won’t Get Rich Quick, Experience Makes You Rich

If you’re here to get rich quick you’re just a clueless tourist. Don’t be naive. Trading is all about experience. As is the case with any career, the longer you do it the more efficient you become. The journey to becoming a trader is a long one so be prepared to stick it out for 1-3 years before you’re consistently profitable. Always remember, Forex/any trading is a career not a get rich quick scheme.

Do Your Own Analysis

Continuing from the last call, blindly following others will make you blind. Your goal should be to become a successful trader, not a pigeon following others around for scraps of information.

As a trader you need to pick a method and learn to analyse the market. Being able to do your own analysis will bring you closer to being a pro trader. Doing your own analysis allows you to:

1. Be self reliant.
2. Actually learn to trade.

If you choose to blindly follow some self-proclaimed guru all you are is a pigeon. How will you make the money when the guru stops giving CALLS or the CALLS stop working? Will you even understand why they worked in the first place and why they no longer work

 Stick to Your Method

Every trading method has its ups and downs. No trading system, method or style will be 100% profitable, all year round. My method, for example, has on average an 80% success rate. Some periods of the year I will win only 6 in 10 trades (60%). Other periods in the year I win 100% of trades for a month or two.

I know each year, I will have some bad periods in which case I lose more trades than normal. I do not lose faith though. I stick it out and keep on trading. The problem with most newbie’s is they will give up on a method after its first bad week.

 Keep It Simple

This is an easy one. Keep it simple!

There is no reason to complicate trading. For example, my trading method is extremely simple yet extremely effective. I spend 2-5 hours per week trading and the rest of the week enjoying life.

Your method does not have to be incredibly complex to work. Keeping it simple will allows you to:

1. Work much more efficiently
2. Work less
3. Speed up your learning (KISS)

If you remember nothing else from this article, remember this…..

Trading With Bollinger Band and RSI

Bollinger Bands

Bollinger bands are an integral part of just about every charting system I have ever seen but many traders are unfamiliar with how to use them. In this lesson we will cover the basics of Bollinger bands and one particular technique which I have found to be very reliable.

History

Bollinger Bands were invented by John Bollinger as a means of determining what could be considered as high or low around a give price.

The bands are plotted at a standard deviation (statistical term for measuring volatility) around a moving average. Typically the standard deviation used is 2.

The bands appear on charts as 3 bands.

A simple moving average  in the middle. Most charting software defaults to a 20 period moving average.

An upper band calculated around a simple moving average plus 2 standard deviations.

A lower band calculated around a simple moving average minus 2 standard deviations.

For our examples we will use the most common setting of a 20 period simple moving average. This will give us 3 bands, the middle band of a 20 period simple moving average and the upper and lower bands calculated around the middle band with standard deviation of 2. The closing price is most commonly used to calculate the moving average.

Bollinger bands can be used to generate buy and sell signals but that is not their primary use. The main purpose of the bands are to:

To identify areas of high and low volatility.

To identify periods when prices are at an extreme and possibly ready for a reversal.

To identify a trending market.

See Chart Below

The Squeeze
The squeeze (tightening) is a period of low volatility and often happens before a big move. It can also help identify potential breakout areas.

Reversal
In conjunction with other indicators you can identify potential reversal points.

Trending Following
Although Bollinger bands will not tell you when the trend has started if you combine it with certain indicators they will confirm the trend. It is also easily identifiable visually.

My Use Of Bollinger Bands
As I mentioned earlier Bollinger bands are not really meant to be used as a signal generating indicator but in conjunction with another indictors can be very useful.

I like to use Bollinger bands and RSI together to generate possible buy and sell signals or to confirm overbought or oversold areas.

I normally set the RSI at 14 and when it reads over 70 and price is at or pushing through the upper band then I know we are overbought and ready for a reversal. I will either start thinking about shorting the market or if I am already in a long position will start to cover.

When the RSI reads below 30 and price is touching or pushing through the lower band then I know we are oversold and I will either consider buying the market or close existing short positions.

See Chart

how to paper trade?

do u play chess?

if yes, has it ever happened that u made a move only to forcefully request your opponent to let u retract the move?

what if ur opponent refuses to let u?

chances are that u might have quit the  / surrendered / scrambled up the game!

why do u do that?

possibly because of frustration.....knowing the sheer hopelessness of the situation u find urself in courtesy that one wrong move.

but, if ur partner lets u withdraw the move, he/she is doing harm to u by programming u with the habit of always being careless with the moves knowing that u will be allowed to take it back.

on the contrary, if ur partner doesn't let u do that, he/she is doing u a world of good to u.

u will soon be free off the habit and start making right well thought of moves. u will act slow and own the responsibility for ur moves.

paper trading is like such a game of chess.

budding trader should do paper trading before he/she commits hard earned money to the market black hole.

just like a trainee pilot who initially is allowed to fly a jumbo in a  simulator!

but how to paper trade.

if u paper trade in the way that chess player was playing knowing that u can always take back the move, the purpose behind that paper trade is deafeated.

ur ego is intact. u r emotionally not involved. nothing is at stake.

so, how to make paper trade real like? how to involve almost real emotions which u r likely to encounter in the trading war time?

one good way is to announce ur paper trade. this way, though ur money is not at stake, ur pride is.

ultimately pride or face loss is as painful as the money loss.

u can announce that paper trade to urself (as by writing/noting in a diary whose page u would not tear), or to ur peers in a forum (like mudraa.com) etc.

once u have announced it, u have taken the plunge, bitten it. u would now have to chew it!

now, u can't disown it. u would have to face "the consequences"

u r "in" the trade....."in the real learning"

keep a record of 5 such trades and look in the mirror............u will see something real!

after the pride, get ready to pawn ur sweat, tears and blood....money can wait for the safe shores!

http://thebestbusinessintheworld.blogspot.in/2014/09/how-to-paper-trade.html

trading is essentially answers to these 3 questions!

trading is essentially answers to these 3 questions!

for me trading is essentially answer to 3 questions:-

1. is there a trade?

= should i trade or should i stay out?

2. which direction?

= if there is a trade, judging the direction is the next question. finding the trend, knowing which way the market is or about to move is the single most important decision. this is decisive! this is the heart of the trading. it took me years to get this right. once this step is right, rest is fine tuning, though therein lies the efficiency of the trade.

3. what quantity?

= this decision, answer to this question, decides the effectiveness / efficiency of the second decision above. not all situations are to be traded with same quantity. you have to enter and exit in steps. u have to commit the stake depending upon the probability, risk. u have to hold some cards for the contingency!

once the answer to first and second question are settled, all i am left to do is keep adjusting and managing the third one. i have to keep reducing or increasing or monitoring the magnitude of my stakes.

all this depends upon my market analyses and my answer to operator games. this also took many years to spot and learn.

i am rarely with zero stakes in the market when the answer to first question is 'yes'.

Sources:http://thebestbusinessintheworld.blogspot.in/2014/09/trading-is-essentially-answers-to-these.html

Fact : Poor Trader

Trend is our Friend, if you follow it, you will never loose.

Traders Must read

Here is some great trading advice I have gathered around the web. These were either answers from real traders to the question “What is the best trading advice you ever received?” Or it was advice given be successful traders when asked “What one piece of advice would you give to traders?”  There are some gems in here.

Don’t treat trades like their actual cash, separate the thought of money lost and focus on the next gain.

Always use stop losses.

Don’t trade with funds you can’t afford to lose.

Don’t be obsessed by indicators .

Always, always,  put in a trailing stop and take your profit.

Decide what kind of trader you wish to be. Do you want to be a day-trader, a short term trader, or a longer term trader?

The Holy Grail of investing/trading is risk management. If you don’t have an exit strategy or proper position sizing, you are gambling. I recommend all traders spend 90% of their time perfecting risk management, and success will come with time. -Damien Hoffman

Cut losses, cut losses, cut losses. If I followed my own advice, my email would be unlisted or a Hawaii address. -Howard Lindzon

Cut losses quickly, take gains quicker when the investment doesn’t act EXACTLY the way you expected it to. -Timothy Sykes

Lots of good stock pickers out there, millions. Thats 1 percent of trading. Trade management/position management thats the next level stuff that takes you from doing this as a hobby to a living.  -Kunal Desai

The number one piece of advice I can give is this. Know your trading strategy and stick to it. Think of yourself as a baseball player. Not all hitters hit for power, some go up to the plate with the intention of hitting singles and stealing bases. Each player knows what type of game he plays which makes him successful, there is no one right way about it. Know your strategy and master it. -Leigh Drogen

I would offer two suggestions:

1) more important that picking your next double digit winner is your exepctancy per position sizing and your reward to risk ratio. You can have good results wiped out by one or two big losses.

2) Always go into a trade with a solid plan: entry, target, exit stop. Your plan should come from your diligent research. Do not blindly follow others, even if they claim to be successful. -Matt Davio

“A good trader knows that the best trades work almost right away and never takes a big loss. If it doesn’t ‘feel’ right, remove it!” -Trader Stewie

I try very hard not to risk more than 1% of my portfolio on a single trade. –Bruce Kovnar, from Market Wizards, by Jack Schwager

The first rule we live by is never risk more than 1% on a trade. –Larry Hite, from Market Wizards, by Jack Schwager

Be prepared to put in the time and the work to be successful in trading, it is a career like any other. -Steve Burns

7 Expensive Bad Habits of New Traders

1. Trading with no stop losses. You can’t control your profits but you can control and limit your losses with a planned exit. Not having an exit plan can be very expensive when a trend takes off against you and you start hoping instead of just cutting your losses and moving on.

2. Your opinion can be very expensive. Trading your opinion against all other market participants can be very expensive. The market goes where it wants and when you disagree with where it is going it will cost you.

3. “Egos are expensive things.” – Ray C. Freeman. Inflated egos cause a trader’s #1 priority to be proving they are right and refusing to admit when they are wrong. It is very expensive for ego gratification to be above making money.

4. Trading off predictions can cost a lot of money when they are wrong. There is more to be made by reacting to what the market is doing instead of predicting what you think it will do later.

5. Stubbornness causes small losses to become big losses. It causes a trader to make the same mistake over and over becasue they do not assimilate feedback they keep doing the same thing over and over and getting the same results.

6. Not having an exit strategy for a winning trade can be very expensive, it is possible to ride a big winning trade into being a big loser if you do not have a set way to take profits. Trailing stops and targets can put the profits in the bank.

7. Trading too big of position sizes for your account size can be very costly because no manner how good your winning trades are you are set up to give back the profits with a few big losing trades.