As promised, this is the first post in a series of practical trading tips.
The main intention is to showcase the topics that will be covered in the upcoming London workshop on 21st – 22nd June.
http://www.fibforex123.com/Forex_power_Workshop.htm

As mentioned, this workshop is not about “book patterns” or “theory” but practical information which you can use to trade the markets successfully.
It is specifically designed to show the new and experienced traders the path to success by providing practical information.

So let’s start with some of the most common misconceptions -

• Have realistic expectations from this business. Most traders come to this market with the expectation of doubling their account in one month, and wanting to buy a ‘Ferrari’ in one year. It does not and cannot happen. Just for comparison sake & for a dose of reality, have a look at the best “Managed funds” to check out the “Return on Investment” they offer. They have professional traders on their payrolls, access to the best tools and deep pockets. Compared to their modest returns, why does a new trader expect to make 100% a month?

• You must treat this like a business, educate yourself, understand the structure of price…like you would do for any business, and plan a slow and steady growth.

• Accept the fact that you will have losing trades. Once you accept this one factor, you are on the path to become a successful trader.

• There is no Holy Grail in trading. Success in trading will come only if you have a Trading Plan. Writing down a plan and following it simply means that you do not enter orders on emotional “knee-jerk” reactions. You must know the reason to enter a trade and have your stops and exits planned out….before you enter the trade.

• You cannot predict the price movement. As a trader, you are here to make money and you must follow price, instead of trying to predict it. Once you enter a trade, the market takes over and it’s out of your hands. Yes, what you can control, are the factors which are your hands…and that is managing your trades and managing your risks.

• Remember, this is a business of probabilities and you must have an “Edge” that puts you in the top 15% of the winning traders.

We thus, use the tools of technical analysis to enable us to manage our trades…to gain that edge.
Sunil.