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Thread: Decision making skills for trader

  1. #1
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    Decision making skills for trader

    I’ve decided to make article using ideas from my last webinar «Decision making skills for trader». If traders ask what to develop in their trading, I would answer – develop your decision making skills, skills to perceive and process information e.t.c
    We forget that trading is an art, not a science, and like any art, it should be mastered. And too often we forget that trader first and foremost is a decision maker.

    What process of generating effective decision consists of?

    1. Collecting information

    Most of the time we don’t see the market, we see our projections, in other words – we don’t see things (market) as they are, we see things as we are. First, of all, we tend to be very filtering – pieces of information that don’t suit our beliefs and core convictions, are simply undervalued (if not rejected at all). Second, we tend to be superficial in our observations. Ability to observe is what we really lack.

    What is the cure? How can we be less filtering?

    We should train ourselves to think «outside the box» - to generate creative ideas instead of simply repeating old «mantras». You may oppose me saying that «there’s not too much space for creativity in trading». Yes, most of the time trading is about acting upon your plan and it can be boring enough. We should be rigid with our risk management. But in a process of trade selection, in a process of generating trading hypothesis, we can be flexible, we observe, we perceive and we generate idea… well, trading idea, of course.


    2. Recognizing patterns

    That’s really what most traders fail to do. I mean what I’m saying – it’s not difficult to draw a trend line, to spot a triangle or double top/bottom, but what is really difficult is to put everything in a context and understand – what is really going on. And it’s not actually about understanding – it’s about seeing. Some traders see good patterns, some don’t. Why?

    Most traders try to recognize patterns doing analytical work – they divide complex picture (chart) on several small parts (candlesticks) and apply formal logic trying to capture relationships between those parts. How do you think – why candlestick analysis has become so popular? Because it suits tendency of human mind to divide and split information, when we see something complex, we tend to immediately split it into pieces and try to figure out – how do those pieces relate to each other? Maybe, it’s a 1.618 principle? Or maybe we can connect dots with lines? Or, maybe, we can build fancy figures with those dots?

    Remember the impressionism art. Nothing was really visible until viewer has made several steps away. Hidden picture now was visible. The same is in pattern recognition – wherever you try to find it – it trading, in deciphering anything or solving a task. Until you are ready to change your view, to concentrate on big picture rather than on nuances, you will not be able to really see a good pattern.

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  2. #21
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    skill is the key to all traders and the ability to act where they control and which is the main supplier for all and now most people want to use Forex trading well and what is best for the better you can do and make money the short time

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  3. #22
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    In my view, only after traders have enough knowledge and skills can they take good decisions because the study of the market and opportunities can't be done without proper knowledge of good analysis. This is why trading without knowledge is just a form of gambling..

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  4. #23
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    Sir..., I agree completely with all your explanations, our creativity is determine for our success. So important for us to increase creativity in terms of understanding the market based on the pattern that we have made. Simplify the pattern is an easy way to understand the market. But unfortunately a lot of traders who only understand the form of charts, indicators, and other technical tools. Without understanding what is going on behind the market itself. Understanding the market is not as easy to understand indicator patterns. At least that's what I feel.

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  5. #24
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    Quote Originally Posted by robocomments View Post
    skill is the key to all traders and the ability to act where they control and which is the main supplier for all and now most people want to use Forex trading well and what is best for the better you can do and make money the short time
    our skills wwill determine result from our trade in forex trading,so we should have a good skills in forex trading if we want to get success and able to generate money from forex trading with consistent,but we should learn and make practice in a long time if we want to get a good skills in forex trading.

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  6. #25
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    Those two things are most important.Logical thinking can help us to do trade logically.Logical thinking can give us more knowledge and skill.If we can found a logical solution of any kind of problem about trading then we will able to solve any kind of problem within short time.But our observation also very powerful for our better trading in forex.Without proper practicing no one can become a good trader.So do work with your own hand and become a perfect trader in forex.

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  7. #26
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    Quote Originally Posted by powerz View Post
    In my view, only after traders have enough knowledge and skills can they take good decisions because the study of the market and opportunities can't be done without proper knowledge of good analysis. This is why trading without knowledge is just a form of gambling..
    Gambling is what we can not run away for in this business, but it is good that you double sure of your trading decision before filtering gambling in your trading the more. I believe that forex is for the traders of like passion, but it can never be done when emotion is fighting the trader more than the way he traders could concentrates.

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  8. #27
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    [lang=ar]Many are already trading in the market make us gain more experience, which will help us in the big market and therefore I think that the skills useful but not absolutely necessary by learning the basics and therefore we have to know everything about forex before putting money by[/lang]

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  9. #28
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    Very good material for me.Indeed those who are experts in forex they can know couples who want to go up or down. I have not been able to figure out a couple of money that rises and falls. I was practicing on a account and I want to know which currency pair would go up and down so that I can benefit. I am learning to improve my intellect knows it.We need to learn and study every time from our mistake and make it right.

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  10. #29
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    I think the decision traders make should be built on real analysis of the market because this can give them an overview of the direction of the currency pair they trade. And I think if they take their decisions depending on their feelings and hope, they will lose badly.

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  11. #30
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    Thanks for sharing great information from last webinar and i think traders should attend these kinds of webinar to get more and more learning about forex business and for this purpose brokers webinar are very much good and informative,Traders needs good decision making skills at right in this business because if you not make good trade decision then you have to watch the market all the time..

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