How to effectively avoid the mistakes in speculation in foreign exchange

{}Posted in2023/2/25 12:12:52 | 5Browse

What a bestforexrebatecompanye the tips to overcome the m rebatesforexbrokertakes forexrebatecommission speculation in foreign exchange? How to overcome speculation errors? In the speculation of foreign exchange you will encounter one or another error, these errors on your speculation of foreign exchange has a very big threat speculation errors how to overcome it? The following author reveals for you in depth Fatal error 1 failed to stop cashback forex quickly Successful trading, like successful life, is determined by how well we control losses, not by how well we avoid them If you really want to become a savvy trader, by making losses small, learn how to lose professionally, this is the key How to eliminate the error of not stopping loss quickly 1, when things go bad Never start a trade before you have decided where you should protect your boat, for example, never start a trade without setting a stop loss 2,Always stick to your pre-determined stop loss It goes without saying fxrebatecentral only a few aspiring traders have the discipline to do this Why is this so hard to do? Because getting out at a stop loss is a clear admission that you were wrong, an act that doesnt bring warm feelings of pride or build ones confidence. They do this because they have developed a sense of intolerance for positions that dont work for them best forex rebate company kill them as soon as they get out of trouble (firing unrestrained positions).3 If you have a hard time sticking to your stops, get in the habit of selling half of your position. find their situation less difficult and therefore feel better about how to handle the remaining half of the problem, but because half of the problem no longer exists, it becomes easier to come up with a workable solution. Fatal Mistake #2: Counting Money Constantly monitoring how a trade goes up or down is a destructive activity that can rob traders of years of profit. It not only deepens fear, but also raises the uncertainty of each moment, making it impossible to focus on the right technique, which ultimately determines how much profit we can make. Focusing too much on the idea of what position youre in, rather than doing what youre supposed to do, can lead to unwise, uninformed subconsciousness and too quick a reaction. And if the technique is followed correctly, profits will come naturally. Counting money is usually the fault of traders who are not used to taking profits on a regular basis not only robs traders of considerable gains, but also contributes to chronic uncertainty, fear of loss and an emotional imbalance that can lead to destructive behavior. Every trade you make should have an entry point and two exit points, i.e. a stop loss and a target stop loss for protection and a target for profit. 2,Sell only when the position you hold reaches the stop loss or target point, no matter which occurs before adhering to this principle, traders place the fate of each trade on their trading strategy, not on their own greed or fear. 3. This way, you satisfy your desire to sell while preserving the integrity of your trading strategy. Fatal Mistake #3: Transition timeframes do not have a precise point at which one cycle begins and the other ends, but rather overlap at the point of intersection. Point out a very common mistake that many market participants make: buying in one time frame and selling in another. This problem of switching time frames is just a reason to ignore the stop loss, which is our only protection against disaster. By cultivating false hope and paralyzing themselves into a state of fatal denial traders who make this mistake are in fact unfit to trade, and the market will not tolerate their pretense for long. 1,If you buy in a time frame, be sure to set your sell point in the same time frame 2,Do not adjust your stop loss (exit point 1) downward (upward) when going long (short), this is the main signal that you are going to make a switching time frame mistake A major signal that you are about to make a time-frame mistake is that, if used correctly, adjusting upward to protect your gains can be done, but adjusting downward to the stop loss will be meaningless and will make you more reluctant to do what you were going to do. Fatal Mistake Fatal Mistake #4: Needing to know more Its natural for us to need certainty before we act, but the truth of the matter is that the opportunity to make a fortune always goes to those who can act wisely without knowing more The market is first, and big profits always come before the fact The person who wants to know more before placing a bet will always be one step behind and always on the wrong side of the market Those who are not bound by the need to know more are free to act. When they truly understand the wisdom of uncertainty, they become chart makers, not chart readers, so the point is that you as a trader cannot afford to want to know more, because by the time you know all the facts, the opportunity will have run its course. We play with odds, not fortune telling, and traders who dont trade until all the facts are clear will never succeed How to eliminate the mistake of needing to know too much1,Dont buy on the heels of good news2,Use charts to shape your buy and sell decisions3,If you find yourself hesitating because you want to know more, then stop and ask yourself: Is what Im looking for necessary for trading, or am I just looking for a more comfortable feeling? This question will put an end to the hustle and bustle Fatal Mistake #5: Being too self-righteous When the market is doing well for you and everything is going in your favor, you cant escape the destructive hand of negligence When a string of profits bulges your wallet, you must do everything you can to protect your hard-earned gains and keep a clear head that will help you generate them Unfortunately, every trader will eventually realize that a string of profits is not enough. Many novices dont understand this because they dont realize that after a significant period of profit taking, some of the characteristics of the market environment that they are familiar with are about to change. It has a different set of characteristics and a different set of opportunities. However, it is precisely when the market is about to change that the untested trader starts to become complacent, raises his chips, and takes risks without realizing that the environment that brought him a string of victories no longer exists. After each successive profit, take a step back and 1) cut your trading chips in half 2) reduce the frequency of your trades Fatal Mistake #6: Profiting the wrong way We all know that money can be made in an honest way, and on the other hand, we also know that it can be made in a dishonest and shameful way The end result may be the same, but the means of getting the money may be very different Its like asking a heart surgeon and a drug dealer, both of whom make just as much money. This is like asking a heart surgeon and a drug dealer, both of whom make just as much money, whether they can be equally respected. These people got a taste of success for their mistakes, and sooner or later the market will recoup those undeserved profits. The next time these people are in a trade that triggers a protective stop, what do you think they will do? Once a trader has tasted success from the wrong way, they almost always repeat the mistake until the wrong way impresses them and they recover even more money gained from the wrong way. Master traders are not interested in getting lucky in the market, they dont pursue it, they hope or enjoy it. They dont pursue, hope for or in turn enjoy the gains that come to them despite their mistakes and wrong trading* actions. After each profitable trade, review every aspect of the trade: buying, initial stop setting, waiting, money management, selling, etc. and identify mistakes and rule violations. Whenever a trader allows himself to feel like a winner on a trade that is not really a win, they are sending a message that what was done was right, well this will reinforce the wrong behavior and encourage a person to repeat these mistakes and needless to say, mistakes will eventually catch the trader. Lets see if you can hit where the trader went wrong in the following scenario An excited trader finds a great trading opportunity on an intraday chart Everything looks right and all the market indicators come alive on a particularly positive trading day after an afternoon of consolidation Then, the entry point is hit and the trader executes the action and After a short period of trading, they suddenly start to turn down, spitting out short-term profits, and are now consolidating at the entry point. Traders think this is very funny! The late afternoon rally has now completely evaporated, the market is clearly weak and retaliatory now his stop loss is only one pip away the trader starts researching, looking for clues as to why the perfect entry variety has started to fall after checking all the news (there is no news) the trader checks the daily chart yes, the daily chart looks good really good he comments, I am going to move my stop loss down to todays low right. No way it can fall below that point 10 minutes later, with the perfect entry variety taking his money down to the South Pole, the new stop loss is broken very confused, the trader closes the position and cant believe the loss of so much what did this trader do wrong? Did the trader ignore the weakness of the developing market? Not exactly. The trader made three fatal mistakes: 1. Switching time frame selection and buying on an exclusively intraday basis from an intraday entry point and a tight intraday stop to a daily chart and adjusting the stop loss based on the daily line completely changed the initial trade and tilted the initial risk/reward ratio against the trader. 2. Planning the trade but not executing it. Executing the trade plan sticking to the initial plan, regardless of the time frame, is absolutely necessary. Not executing the trade plan puts you in the grace of the market and corrodes the confidence necessary to trade effectively. 3,Rationalizing the other two faulty psychological underpinnings that rationalize changes in time frames and plans is a raw form of denial, denying the fact that honesty - true honesty - no matter how ugly the truth is - is happening. If you wish to approach the market with wisdom, planning each of your trades is a necessity Most failed traders drive by feel, without even the slightest knowledge of how to plan their trades. However, planning your trades but not trading as planned is a far worse sin. Those who know how to do it, but dont do it, deserve this knowledge the least, and the market usually takes care to give them the reward they deserve: loss rationalization is the culprit hiding behind this and many other fatal mistakes, because most people are overly optimistic by nature and they find it hard to When the time comes to take action, its safe to say that many people cant muster enough determination and courage to take a leap of faith and instead they begin a process of rationalization. The key signals that you are talking yourself out of taking action are the following: Asking why a variety behaves the way it does The reasoning behind a varietys behavior has no meaning for the traders planned action The right action for the trader is to sell first and then ask why Checking the news and understanding the news is not a bad thing in itself However, when the real purpose behind checking the news is to delay the planned action, it is nothing more than an escapist approach Whenever a trader starts using possibilities when a stop-loss or price target calls for action, uncertainty prevails and it is almost always better to stick to a pre-established trading plan than to choose to change it in the middle. Once a trader has spotted a signal to rationalize, the only correct action is as follows: Sell the position This may sound harsh, but my years of experience have convinced me that rationalization more often leads to harm than good. A trader who stays in a position without a solid reason will be a failed trader.

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