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    Find more that doesn't work

    Hi everybody! In trading, as well as in any other performance field, there are many gurus telling you what to do. In fact, if we even don't think about trading and refer to field of psychological self-help, we may see a lot of "How-to" books. "How to become a millionaire", "How to become healthy". And we may really have an illusion that we can reproduce somebody's experience.
    Warren Buffet had said once, that his work consists of saying "no" multiple times. He analyzes lots of investment proposals, and answers "no, no, no". Then he finally finds one or two ideas and says "yes". Bill Gates says that being an innovator means rejecting multiple ideas over there and accepting few of them. This mindset means risk management - you test ideas (putting very small or no risk to this process), reject it quickly (if they don't work) and move forward. That's how most venture capitalists and innovators do. And of course this experience can be transfered to trading as well.

    Trading also often is no more than process of testing and rejecting ideas (trades) in attempt to find ones with decent payoffs.
    So, we come to completely different principle - we'd better not explore what works but explore what doesn't work (and reject it). Certain risk (loss) and uncertain (maybe, huge) profit is better than certain profit and unknown loss. If you know your risk in advance but don't know your profit, it might be better than knowing your profit but not knowing your loss (trading without stops)
    Everybody remember this old trading wisdom - "Take care of losses, profits will take care of themselves". Yeah, self-help books must have different titles - "How not to become a bancrupt on your way to millions", "How not to become sick and tired on your way to ultimate health" :)

    Also, this approach completely changes our perception of "failure". Losses are often difficult to accept (even small losses) because they symbolize "failure". Psychological discomfort in case of of losing money (even small amounts of money) is 2.5 times greater than positive emotions in case of getting profit (even large one).
    So, how to change our perception of "failure"?
    Here comes another example of great inventor Thomas Edison. He had invented many things but he had much more "failures" (inventions that don't work). In fact, there were thousands of inventions that were not going to work. Once he was asked - "How can you sustain motivation in these circumstances? Why haven't you given up already?".
    Thomas Edison answered - "I have no failures. I just have learned a lot of things that don't work".

    I recommend you to take this approach for granted

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    Last edited by Value trader; 03-28-2014 at 03:38 PM.

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    This is an interesting learning tools through which I came to know about the proper system of forex trade. So far I understand that we need to avoid many things that does not not working properly. I agree to this point, we need to choose the best system for this trade through which we can get better benefit. I am also trying to avoid those things which are not appropriate for me.

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    Quote Originally Posted by Jamuna View Post
    This is an interesting learning tools through which I came to know about the proper system of forex trade. So far I understand that we need to avoid many things that does not not working properly.
    There are lots of system which doesn't work. Alongside there are many strategy which is suitable for some traders but not suitable for others. So at first a trader should read about different types of trading strategy,find out which is suitable and throw away others.That'll help him to make his trading plan less complex.

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    Quote Originally Posted by Value trader View Post
    Trading also often is no more than process of testing and rejecting ideas (trades) in attempt to find ones with decent payoffs.
    So, we come to completely different principle - we'd better not explore what works but explore what doesn't work (and reject it). Certain risk (loss) and uncertain (maybe, huge) profit is better than certain profit and unknown loss. If you know your risk in advance but don't know your profit, it might be better than knowing your profit but not knowing your loss (trading without stops)
    that is the way on managing good options by the return of the evaluation of different system by the running test of strategics that is to alter further with the more of lodgement to request the submission by risking the proper level of focus and spends by the resource and the expenses by the entrance.

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    Well the more we gain the better we procure in Forex. Absolutely negative procedures are significantly more than productive methodologies. A fruitful dealer needs to study different methodologies and put greater part of them aside and just acknowledge few of them that suits his exchanging needs and which he sees appropriately. There will dependably be space for us to enhance around here.

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    It seems to be quite interesting article about being self confident and taking the factor of risk in mind in order to avoid bad results. In the market there are many people selling auto trading software claiming that they can help you make thousands of dollars each month. A good investor never looks down to these attractive packages and always make his own trading in order to be successful.

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    I believe strongly that the success of forex traders is not in the way of making the trades, so, never you even borders yourself to be having many trading system, but have good trading management, this is the place the stop loss placement will come in , and this will be the reason why traders will be successful.

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    so we just need to take something simple and easy to understand, and it will be suitable with our style as the basic of talent then master it, and it will help us to get more understanding about how to trade and do not need to change it because the system does not work, and at this business, actually we do not need a complicated system and hope to get the best results but at last, we were be trapped at hard situation

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    Registered user lawners1791's Avatar
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    Quote Originally Posted by Value trader View Post
    Trading also often is no more than process of testing and rejecting ideas (trades) in attempt to find ones with decent payoffs.
    yes that even the worse of the return with the past work should still to gives the chance on useing more with the future entrance on managing the good customs with the evaluation on improving the good system of the choice. that the way should have the focus on spending the chance on running the customs with the work of the good evaluation and the analytics by the running timeline.

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    Quote Originally Posted by paritosh View Post
    Accepting the advice of all guru is quite difficult. Selecting the right strategy in the right time is another quality of a forex trader. We should be more selective knowing our own ability to cope up.
    Having a good system of trading is what I know that can save traders, but in the ways of you are saying, it is equally good if one can do with the advice of the guru as well. But never it let it enter you that it is until you get things fro the so called guru before you can make it, try to devise your own things.

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