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forex trading

The Habits of Highly Successful Traders: Part 3

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The Habits of Highly Successful Traders: Part 3

Well here we are. The final habit! In todays post we are going to discuss the 3rd habit that I have seen that successful traders emulate. This is an important one. It actually ties into the other two habits on patience and resilience. Because if you do not have this third and final habit. You will not be patient and you will not be resilient.

Displaying all three together allows aspiring traders to cultivate success in the markets. We all know that trading is a very emotional business. The constant ups and downs in the market along with the news that the media portrays can make your mind spin in a million different directions. It can be difficult to decipher what is correct and what is incorrect. Both sides might actually seem to be right and have valid points! This really can throw your mind into a tailspin! 

Experiencing these emotions is a natural part of beginning to trade. As traders we are constantly bombarded with a mixed perception of the markets and whether to buy or sell a given instrument. This makes trading very difficult. A million opinions are thrown at us and we have to decide which makes sense to us. Even with technical trading… one chart timeframe will tell us one thing and the other chart tells us a completely different story. One indicator tells us to buy and the other tells us to sell.

This all can become very confusing and make it difficult for you to develop consistency in the markets. This brings me to the third and final habit we are going to be discussing.

Objectivity

As a trader, you must learn how to take all the information you are bombarded with on a daily basis at face value. What I mean here is that you cannot let the different opinions you hear about the market effect you. You must remain cool, calm and collected. As a trader you cannot be affected by your emotions and you must become numb to all the other news you hear about the markets. What matters most is YOUR opinion and only YOUR opinion.  

To illustrate the psychology of most investors I want you to take a look at the image below.

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I am sure you can relate to the “Emoji” or emotional feelings of investing at the different market cycles as illustrated in the info graphic. Everyone starts as what is called “most investors” on the top of the image. This is a disastrous place to STAY. To be an emotional investor means you will never get rich trading and investing… to put it bluntly.

What you want to do is naturally gravitate toward the bottom. Where no matter what the market or your particular trade is doing, you remain emotion less (cool, calm and collected). Your long-term success in the markets is directly tied to your ability to not be controlled by your emotions.  

How to remain objective and poised as a trader

This is such an important trait that all successful traders have and I wanted to share with you a way that can help you become more present and objective before you begin your trading session.

What I would recommend you incorporate into your routine is a moment of presence. Being present allows you to remain objective and not judge the situation that is unfolding in front of you. It quiets your mind and helps you to relax. You are naturally brought to that state of objectivity through presence. Because your thoughts about what “should” happen are no longer controlling you. You release your opinion of what the market “should” do and instead you live and trade in harmony with what the market is ACTUALLY doing. You become an observer.

 When you are an observer you are able to notice patterns within the market and exploit them. You don’t bring your biases from what the news or your friends from work are telling you the market is going to do. You remain in a state of balance. This is a fundamental KEY to your success. Developing a balanced mindset will ensure that you always take trades that are according to your trading plan. When you make trading decisions that consistently align with your plan… you are on the road to consistency in the markets.

If you missed the first part of the Habits of Highly Successful Traders… it can be found here. We also wrote the second part to this 3 part series which can be found here!

 One thing that has really helped me remain objective with my trading is implementing the use of trading robots. A trading robot has no emotion or bias about the current market condition. It just identifies trades and continues to execute no matter what is going on around it. By using this tool you to can develop a balanced perspective of the markets by only taking trades that are in alignment with your strategy. At DARA trade we have developed a robot advisor that assists traders in taking great trading setups based on a handful of strategies. The robot advises you of a great setup that is based on predetermined rules and you the trader make your decision on if you would like to take the trade or not. This is brilliant! You get the assistance of a trading robot to identify the setup with no emotions, exactly according to plan. While you the trader implement your market knowledge to actually execute the trade. To learn more about this system click the button below and join our telegram channel!

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The Habits of Highly Successful Traders: Part 2

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The Habits of Highly Successful Traders: Part 2

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Author: Shanda Matieshin


Todays post is going to be a discussion about the second habit of successful traders. So what is the second habit? Resilience.

Resilience is an interesting topic to discuss. Lets start with the definition

Resilience – “the capacity to recover quickly from difficulties; toughness.”

            - “the ability of a substance or object to spring back into shape; elasticity.”

The two definitions above can give us a pretty good idea of just what resilience means. Think of an elastic band. Just like the second definition says… elasticity… what exactly does that mean?

Being like an “elastic” means that you are be stretched in a million different directions but ultimately come back to your original shape and form. The forces of nature can try to pull you this way and that way but you stand your ground and always come back to your center (original form).

Nothing can permanently take a different shape or form. No matter what happens you remember your center and always come back to this place. 

So now lets apply it to the markets and being a successful trader. Being a long term successful trader will mean that you have endured a few loses and setbacks in the markets. But what will define your ability to keep moving forward is resilience. The ability to bounce back from setbacks is what makes successful traders. When your account is being pumbled by losses it can be hard to remain in a calm and peaceful state. But that is EXACTLY what successful traders do.

Experiencing a losing streak can make it incredibly hard to bounce back and continue trading. Newbie traders will want to adapt their strategy (when it is perfect the way it is) or completely change their strategy all together. Bouncing around from strategy to strategy only continues to pull the elastic and stretch it farther than it can be stretched. What happens when the elastic stretches to far?

It snaps. This is what will happen when you continue to adapt your strategy or move strategies based on spur of the moment decisions. You never truly master any strategy at this point. Continually moving strategies is the actions of a new trader who does not yet understand how to master the markets and wants to find the “perfect” strategy to make money NOW. To put it bluntly… this is NOT the way to success in the markets. Testing multiple strategies and moving from one strategy to the next pulls the elastic farther.

You stretch yourself so far and ultimately you will snap. This snap will represent you throwing in your towel and giving up trading altogether.

So how do you develop resilience in the markets and develop the ability to bounce back from loses with no loss of enthusiasm?

Well… it takes time. Through long hours dedicated to the charts you will find that your ability to bounce back becomes easier and easier. You confidence in your strategy and in yourself as a trader grows as you have more time on the charts.

The first losing streak or setback is always the hardest. But once you have gone through a few losing streaks you know that your winning streak is on the way. You develop an inner confidence in yourself and your strategy by spending hours and hours on the charts. This really is the way to develop confidence in your strategy. Take the time to backtest and identify your ideal setup. By looking at your ideal setup and knowing exactly what will make you take the trade you gain confidence to take trades in real time.

I would suggest you write out EXACTLY what makes you want to enter a trade in the market. Are you looking for a support and resistance level? A daily candlestick pattern? Write these characteristics out and have them beside you each trading session.

Another important list to have with you at all times is what makes you NOT take a trade. Perhaps it is when the market has been moving against your desired position. When the market is trending. Any market characteristics that help you make trading decisions are so important. When you can pinpoint these characteristics you will have a better chance of making great trading decisions in the real market.

Backtesting is an incredibly powerful tool for developing confidence in your trading abilities and your strategy. Through backtesting you can discover all of your statistics. If you find that your maximum losing trades in a row has been 8 in your backtesting and in your live trading you have had 3 losses in a row, you can have more comfort in knowing that your trading is still in line with your strategy. This is the power of backtesting. You really start to understand your strategy, where your strategy is strong and where it is weak. You can then have a new level of confidence trading in the live market with real money!

At DARA we help traders analyze their trading data. It is so important to gather data in your trading so that you can always learn, refine and grow. Backtesting helps traders to learn their strategy, refine it and grow when in live market conditions. Without gathering the data on your strategy you will be lost in the markets. We have developed a journaling software to help traders analyze their trading statistics. Learn more about how you can take your trading to the next level in 2019 by journaling and measuring your statistics!

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Why Discipline in Trading is SO Important


Author: Shanda Biggs


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I have learnt over the last number of years trading that there are a handful of things that make traders successful. I found a quote that I would like to share with you that outlines one of the most important, if not the most important thing that allows traders to sustain success in the markets.  

“Suffer the pain of discipline, or suffer the pain of regret”

This quote is simple and to the point. Practicing discipline on a daily basis is so important if you are a trader. It simply means that if you are not disciplined, you will not be a successful trader.

It is so important that we do not get caught up in the hussle and bussle of the market.  The market is a fast paced and exciting environment to be in. If you are not careful, the excitement can consume you to the point where you experience massive highs in your emotions while trading as well as lows. It is our job as traders to keep our emotional spectrum in check while being involved in the markets. We want the pendulum to be in complete balance. This allows us to look at the markets objectively and not through the lenses of our emotions.

Have you ever wondered what truly makes great traders successful? It has everything to do with the above quote. Great traders have incredible discipline. They have the discipline to take great trading setups but also to stay out of bad ones. 

They understand that sometimes the most profitable position is not being in a position at all. Yet they also know when to take action. They become masters and students of the game. 

Before you can be a disciplined trader you first need a vision. Why did you start trading in the first place? What drew you to the markets? Do you want to create freedom in your life? Develop and learn a new skill? Whatever the reason is. Be sure that you are clear. Nothing stops progress like a cloudy vision. When you have a vision and see where you are going and what you need to do to get there is when you take the action steps necessary to walk along the path. 

Create a vision for your trading and for your life and see where you are going and what you need to do to get there. Then you will take the necessary action steps to bring the goal closer to you.

How do you develop a clear plan to get to your trading goals?

One of the best goals I have set for myself and I recommend that you set as well is… making it a goal to follow the rules of your trading plan everyday. If you can do this one simple thing I guarantee you will see success in the markets. Creating the habit of following your trading plan increases your discipline.

One tool in particular that has helped many traders stay disciplined in the market is the use of algorithmic trading robots. These bots help keep the trader on track by only executing trades that are according to the trading plan.

Where many traders fall short is they do not have the discipline to follow their plans. Even a small deviation in the plan can be detrimental to a trader’s long-term success. Why?

Making small changes to your plan on the fly is trading based on your current emotions at the time. Someone who is disciplined would trade their plan no matter what. A trader making emotional decisions changes the plan from trade to trade and wonders why they are not improving.

Trading with robots helps you to not get caught in the heat of the market. It helps reduce emotional trading. You do not have to question your setup, you just execute because the bot tells you that there is a great setup available. Then overtime by following your plan, your edge presents itself.

Not following a set routine is why most traders are not improving. When you make changes to your trading plan on the fly you are not basing your decisions on concrete rules and data. If you have the data and back testing proof to backup your decisions, then you can make changes to your trading plan. But until then, stick with the rules you have set out for yourself. Only making real changes once you have the proof that the change will benefit you in the long run.

I have learned that keeping your trading plan concise and to the point is most beneficial. By having a focused trading plan you know exactly how to execute each and every position that you take. When your trading plan is focused, it is easier to be disciplined. You know what you are looking for and can execute accordingly.

A trader can have a HUGE advantage by using robots to aid in their trading. Many traders fail due to their poor psychology and mindset. If trading with the assistance of a robot could help you develop the discipline to be a successful trader than it would be a no brainer. That is exactly what robot trading will help you with. Being more disciplined! Allow trading with robots to help you follow your trading strategy!

At Evestin Forex we have developed some pretty great trading robots! We discuss each strategy that we trade in great detail in our FREE ebook. Click the here to download your FREE copy!

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