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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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The Habits of Highly Successful Traders: Part 1


Author: Shanda Biggs


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Todays post is going to be solely dedicated to YOU…the aspiring trader. Now I know all of our posts are for you but this one in particular. Many people just touch the surface when it comes to the habits that make traders successful but do not identify the TOP habits that you must develop in order to succeed in the markets.

In my time trading the markets I have noticed these 3 habits are a common thread amongst full time traders. If you can develop and cultivate these habits in your own life, I have no doubt that you will develop into a successful trader as well. For this post we are going to focus on what I would consider the most important habit for you to develop. The following posts on habit 2 and 3 will be shared in the weeks to come.

If you have been exposed to the self-development industry for a period of time you have probably heard of the following line…

“Do what successful people do and you will get what they have.”

When you start to study others success you will actually find that these people are JUST like you. Most people are not born into success. They had to develop and cultivate these habits that we are going to discuss as well. They had to go through the trials and tribulations JUST LIKE YOU. It is comforting to know that others living their dream live had a similar story. It makes us feel like we are not alone. Because trust me it feels like that some days and I’m sure you know the feeling as well!

But it really is true that if you do what successful people do and you will naturally follow in their footsteps. There is not much difference between a successful trader and yourself. They have just been in the game longer than you. So if you can learn and develop the traits we are discussing faster and earlier in your trading career, you will become consistent quicker.

 The first thing I would encourage you to do is find a trader who you resonate with. Pick a trading mentor if you will. Maybe it is their lifestyle or the way they talk about life and their philosophies. Find someone who you really admire that is a successful trader and sit down and think about what makes this person successful. Start with a blank sheet of paper and list out 10 qualities that you think makes traders successful.

 After writing these traits down think about how you display each one of these traits in your own life. Every person has every trait it is just shown in different ways. So think about some examples of how you showcase each trait you wrote down. After careful thought and consideration you will find that YOU have EVERY trait that successful traders have. You display them in different ways but ultimately you have every characteristic. Through time and dedication to the markets you can learn how to cultivate and develop these characteristics in the way that successful traders do.

Naturally because you are doing what other successful people are doing… you to will follow in their footsteps and become successful.

Now this is not an overnight process. It takes time, energy and dedication. But I promise that if you follow the correct path you WILL develop the characteristics that it takes to be a trading success story! 

Which brings me to my first point… Patience.

 Patience is one of the most important traits you must develop if you want to be a successful trader. Not only does patience help you with your trading but it also gives you a fresh and new perspective on life. When you develop patience, you find that you do not focus so much and getting things done NOW.

Living while always thinking about the future makes you ungrateful for the experiences and life you are living right now. In order to move forward I have found that you must bring your focus to the present moment in your life and adapt and move forward according to what is happening in this moment. By focusing on the future you forget what is happening in this moment. Even in trading, by bringing your attention to the present now you will develop an intense focus while looking at the charts. You will realize that each NOW moment will build together to form the future you ultimately want to manifest. By being your best today you will see all the pieces coming together to be the trader you want to be a year, two or three years from now.

To bring this future into reality requires patience.  By living in the present moment you naturally will develop patience because you do not have your full attention constantly on the future. You focus on being your best right now and that means making good trading decisions today. Each great trading decision builds on the last and becomes the foundation for consistency in the markets.

We want to bring our attention to the present moment and not consistently focus on the future. This can put us into a state of fear and ungratefulness for the life we live now. We can often forget that each day we live is a stepping stone to that better future and the more we focus on making our today better… the better our future will be. 

So today I encourage you to stop and be present. Realize that each day you have is a stepping stone to creating that better future and focus on that. Focus on TODAY not 365 days from now. By bringing your attention to being the best trader today, you will see great progress when you look back a year or even a month from this moment.

It is encouraging to those of you struggling right now to know that every trader went through the same struggles you did. All successful traders had to develop the characteristic of patience.

At DARA we help traders develop the characteristic of patience. Not only does DARA notify you of great trading setups but we also have an amazing trading community. You can talk with full time traders every day! You can see what setups they are taking and begin to develop the habit of patience. DARA helps traders develop patience because now they do not have to go hunting for trades but rather wait patiently for DARA to alert them of great trading opportunities. To learn more about how DARA works and how it can help you improve your trading results click the button below. Also drop us a comment if you have any questions :). For now… Happy Trading!

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Why you Should not be Looking at Charts 24/7


Author: Shanda Biggs


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Trading is an interesting profession. I don’t think I know of any other skillset that requires so much mental focus and strength. Now being successful in any endeavor requires you to put in similar amounts of time and effort. But trading is different in a couple different ways. The most important being your mindset and psychology. 

The single most important thing that will determine your trading success is your psychology and your ability to manage your emotions. You will just not succeed unless you are able to numb yourself to what is happening in the markets.

I wrote this blog post to help you new traders or even seasoned traders see why it is not a great idea to be on your charts all waking hours of the day. It is important for your mind to take breaks. If you have your consistent focus on one thing 24/7 you are prone to burn out. Your mind needs breaks in order to bring clarity and order.

When you take breaks, you give your mind a mental break and this gives it room and space to open up for new ideas. Order flows into your mind when you release what you are focusing on just for a moment and bring your attention to something else. Its almost like you forget what you were working on and bring your focus elsewhere. Being in the present moment. This is powerful because it opens your mind up to new ideas.

Have you ever found that thinking so hard about something actually stifles your ability to think clearly at all? Take for instance trying to write a research report. When you think so hard about what you should write your mind comes up with no ideas. But when you are out for a walk not even thinking about the report you get a million great ideas to begin writing about! The same phenomenon can be applied to trading and mainly when you are analyzing charts which brings me to my main point of discussion for today.

Over Analysis

Over analyzing charts is one way to sabotage your trading success. Over analysis most commonly occurs when traders do their initial analysis but then they go back and “review” what they have seen on the charts. By looking at the charts over and over again they begin to see and imagine patterns and price action that is against what their initial analysis pointed to. They then develop doubt in their mind about what they initially saw on the charts.

I like to call this analysis paralysis. Maybe you have heard of this term. It is very real in the trading world and stumps a lot of traders. The trader gets so many conflicting ideas about what the chart is telling them that they literally cannot develop a bullish or bearish bias on the pair. 

How does this happen? It happens when a trader looks at a chart but does not exactly know what they are looking for. They don’t know how to dissect the chart and break it down into a story that the price action is telling them. Instead they look at various indicators, support and resistance and possibly trendlines or other technical tools and find that they all point in different directions. Indeed, this can be very confusing for a new trader and a seasoned trader!

What I have found to help me not over analyze the charts is having a crystal clear strategy so that I know exactly how I analyze charts and what types of setups I will be looking for. Then once I know exactly what I’m looking for I glance at a chart quickly to see if there is a possible setup. I don’t look at the chart for to long because this is when over analysis can kick in… when you stare at the chart for to long!

You may know what I’m talking about when I say your mind starts to develop patterns in the price action that you just didn’t see a few seconds ago! What I always like to say and implement into my trading is that if you look at a chart and do not see a possible trade within 30 seconds of looking at the chart then there probably is no setup.

Why? Because clear setups do not have to be dissected. They are so obvious that they just jump right out at you! Of course you must dig further to see if the setup meets all of your trading plans criteria but at the initial first glance you should be able to see if there is a valid trade on the chart.

I have implemented this strategy into my trading routine and found it to help immensely with over trading and emotional trading. I do not get emotional when trying to find a setup by making up possible price scenarios in my head.

By spending a little less time actually finding trades on the charts I am able to get back to the real reason I started trading in the first place. That is for freedom! I now have more time to analyze, backtest and review my strategy. Which are all vital components to trading success and growth.  Not being on the charts 24/7 allows you to cleanse your mind and come to the charts on the next trading session with a focused and clarified mindset. This is absolutely essential. So rather than analyzing possible setups 24/7 why not go out and enjoy some time with your family? Remember the reason you began trading in the first place! I guarantee you that by taking the time away from the charts between your trading sessions you will come to the charts when you are supposed to be trading with a clear and focused mindset!

At DARA trade we actually have a tool to help you NOT have to look at charts 24/7. When the perfect setups present themselves according to predetermined criteria you get an alert on that particular currency pair! DARA notifies you once your rules are met and ensures that you are only taking the highest quality setups! How awesome is that? If you want to see what DARA is all about click the button below to learn more and become a member. From here you can download our FREE software and begin your trading journey with DARA as your trusted sidekick.

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Why Forex Trading Is Better Than Any Other Financial Trading?

Size:
The Forex market is vast – the largest market in the world with more than $5 trillion traded on a daily basis, compared to the futures market that trades a mere $30 billion every day. All this liquidity means orders can be executed with little to no slippage and there’s always someone willing to take the other side of the trade.
 
Around The Clock:
Forex is the 24-hour market – around the globe trading. No waiting for exchanges to open. Trading begins at:

  • 5 p.m. EST for the Sydney market
  • 7 p.m. EST for the Tokyo market
  • 3 a.m. EST for the London market
  • 8 a.m. EST for the New York Market

Before trading closes in New York, the market in Sydney opens up – 24 hours of market trading.

 
Buy or Sell Makes No Difference:
Unlike the equity market, there is no restriction on short selling in the currency marketing. Trading opportunities exist in the currency marketing regardless of whether a trader is long or short or whatever way the market is moving. Since currencies get traded in pairs, it always involves buying one currency and selling another. Therefore, there is no structural bias to the market. This means you always have equal access to trade in a rising or falling market.
 
Easy Access:
Many brokers offer high leverage, which means you can start trading with just a few hundred dollars. Although we don’t recommend using more than 1:100 leverage and start with $2,500 if you’re a beginner.

Scalability:

Forex trading strategies can be easily replicated on large or small account. It does not matter do you have $2,500 account or a $1 million account, you can trade the same trading systems and expect the same order fills and same account growth.

 

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