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  1. #1
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    3 habits that prevent traders from making profit

    Hi traders!

    Successful trading is often not about unique trading system, it’s about doing certain things over and over again, or I would rather say – not doing them. Many beginner traders often do the same mistakes over and over again and if you would simply avoid what they do (or even do the opposite), you would get an edge on the market.

    I created my own TOP-3 list, you can add some more in commentaries to this post. I haven't uncluded money managent here, just chart patterns (market behavior) that traders fail to read properly.

    Selling «expensive» and buying «cheap»

    Most popular version of this principle is «buying bottoms» and «selling tops». When price suddenly breaks out from some range (say, to the upside) and starts to move rapidly, most traders will sell against this rally. That’s an instinct. If we’ve seen before small volatility and absence of significant price action to whatever side, we tend to deny breakout, we treat to new prices as «unfair» and rush to open a trade. Why in this case most traders are in hurry? They thing that current price action won’t long last and price will quickly drop back to the previous trading range.

    Look at yesterday’s example of NZDUSD:

    Attachment 10474

    It has rallied heavily, and believe me – there were many traders caught in short positions. Price has finally moved back to day opening, but I’m not sure that any short-sellers could benefit from that movement. You can’t enter short position (or long position, any position) if you don’t know your risk, if you are unable to calculate or estimate it. You can, of course, but it won’t be low risk trade, your risk will not be defined (don’t tell me that you know your risk because you have your stop-loss)

    So, in most cases shorting against such rally can be only reasonable when market is overbought and ready to liquidate to the downside. Such situations are pretty rare and this topic goes beyond our post.
    To avoid catching tops and bottoms, I recommend to switch between timeframes from time to time.
    What is cheap for one timeframe trader, may be expensive for other timeframe trader.


    Catching the «whipsaw»

    The second habit of beginner traders is to be aggressive after big price swings. Let’s say, we had news announcement and market reacted emotionally, We can see whipsaw with significant volatility.
    Most traders, who are bored with previous low volatility, think that market is going to move now more rapidly, more aggressively.
    But truth is that often market consolidates for 2-3 days after that, nothing happens, volatility goes down again. It’s very easy to be caught in such price action.

    Attachment 10476


    «Trading near support» (resistance)

    Third habit is too much reliance on horizontal lines that are considered to be support or resistance. In fact, support and resistance are often areas, not lines. I mean, real support and resistance areas, not local levels where day traders put their positions.
    When support/resistance «line» is already visible for everyone, it no longer provides good opportunity. Many traders can see those lines, they can calculate risk and they will enter either to the short or to the long side (trading breakouts or reversals) placing their stops beyond this line. So, a lot of orders will be concentrated near those lines, and market will not have reason to leave this level – the more liquidity it has near certain level, the less reasons it has to go away from it. The most expectable scenario is «whipsaw» near such «levels».

    Attachment 10475

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    Quote Originally Posted by Hukam View Post
    No trading strategy and not demo trading learning or practice contain and feeling term, mate you well said that we can test our real feeling only in real trading account by getting a lot of trading experience. That's why trader's should spend more time in real trading account, and should not fully depend upon demo trading learning
    You can read the story of a successful trader, you can search the internet. You will know a lot of forex experts say the feeling is important. because they are familiar with the character and the character pair trading strategy. You have not yet reached that level. novice traders do not have a good feeling, because they lack experience, they can not rely on feeling

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    Quote Originally Posted by Hukam View Post
    No trading strategy and not demo trading learning or practice contain and feeling term, mate you well said that we can test our real feeling only in real trading account by getting a lot of trading experience. That's why trader's should spend more time in real trading account, and should not fully depend upon demo trading learning
    but as my point of view, we do not ever do trading with use the feeling and even at real account, but we just need to trade based on the market condition and have been analyzed first, and if the traders always do practicing continuously, it will become a good reflex, and it will work with fast to make a decision, ( reflex is very different with feeling ), reflex was created by hard practice and practice it regularly

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    Quote Originally Posted by newentry View Post
    but as my point of view, we do not ever do trading with use the feeling and even at real account, but we just need to trade based on the market condition and have been analyzed first, and if the traders always do practicing continuously, it will become a good reflex, and it will work with fast to make a decision, ( reflex is very different with feeling ), reflex was created by hard practice and practice it regularly
    [lang=id]i do agree with reflex and not with feeling, because reflex was practiced with well by the traders, and they can do it in a short time to analyze and make decision, and feeling, i do not have a comment with it, but i do not want to trade with feeling, because we are trader and not as a gambler and although there are some traders who thought that expert used the feeling, this is not a concept for trading[/lang]

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  5. #504
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    Quote Originally Posted by newentry View Post
    but as my point of view, we do not ever do trading with use the feeling and even at real account, but we just need to trade based on the market condition and have been analyzed first, and if the traders always do practicing continuously, it will become a good reflex, and it will work with fast to make a decision, ( reflex is very different with feeling ), reflex was created by hard practice and practice it regularly
    reflex is to take a decision without consciousness, feeling formed from a lot of experience and training. you will never understand the feeling traders experts, because you are a novice trader. You do not have the level of expert traders. so you can not accept the way traders trading experts. novice traders should only be trading based on the analysis, without the use of feeling

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    Quote Originally Posted by vipuldevkar View Post
    As you said we should not rely more one the single line like the support or the resistance at one price because many times the market keep on ranging between the zone of the price which is bounded, so in that case it is very necessary for you to consider that zone and trade when price get out of the zone.
    Well, I remember that I used to be caught in whipsaws too when I was a beginner. I did a lot of mistakes too and I learnt from them, but I must say that those were not painful because I gave enough time to my demo account, and surely I have no regrets on that.

    Today, I am a pro trader, and trading for life. I don't have other earning sources than Forex, and my future seems very bright (I hope) because everything is going perfectly. I have learnt a new charting style about 1.5 year ago and that change brought improvements in my trading results.

    Today, I am able to look on pure price action and that is due to the usage of "Renko Charts". People are not aware of the potential but if they would know, they will surely jump in it. My first recommendation for any beginner would be, to start trading with renko charts. M1 and M5 and M15 chart will often bring losses for you.

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  7. #506
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    Quote Originally Posted by ngalapreceh View Post
    reflex is to take a decision without consciousness, feeling formed from a lot of experience and training. you will never understand the feeling traders experts, because you are a novice trader. You do not have the level of expert traders. so you can not accept the way traders trading experts. novice traders should only be trading based on the analysis, without the use of feeling
    so we have different opinion and it is okay, we do not need to push the others to take it right ? and also i always feel like a newbie , so you can see my username with " newentry" heheh. and at this side, i just wanted to share my opinions, many people think that reflex is a thing happen not from the main command, of course, but it is saved deeply in the subconscious and we can trained it, like a fighter who hone their reflexes with a stance, so when there is an attack not think ahead too long to parry or dodge, because everything is recorded properly but still can be controlled..i ever talked about this with master forex.

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    Quote Originally Posted by princewahaj View Post
    Well, I remember that I used to be caught in whipsaws too when I was a beginner. I did a lot of mistakes too and I learnt from them, but I must say that those were not painful because I gave enough time to my demo account, and surely I have no regrets on that.

    Today, I am a pro trader, and trading for life. I don't have other earning sources than Forex, and my future seems very bright (I hope) because everything is going perfectly. I have learnt a new charting style about 1.5 year ago and that change brought improvements in my trading results.

    Today, I am able to look on pure price action and that is due to the usage of "Renko Charts". People are not aware of the potential but if they would know, they will surely jump in it. My first recommendation for any beginner would be, to start trading with renko charts. M1 and M5 and M15 chart will often bring losses for you.
    Trading using renko chart is good to use or maybe candlestick chart? for me I think what makes you become as what you are today is because you learn how to become a discipline and consistent trader after years of struggle in the market, whatever technique a trader use in this market if he give emphasis on being discipline in following a good strategy, strictly follow risk control approach then a trader will achieve what other traders dont in this market.

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    " Trading is 70% Psychology, 15% Risk Management and 15% Strategy ! "

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    Quote Originally Posted by techboy View Post
    Trading using renko chart is good to use or maybe candlestick chart? for me I think what makes you become as what you are today is because you learn how to become a discipline and consistent trader after years of struggle in the market, whatever technique a trader use in this market if he give emphasis on being discipline in following a good strategy, strictly follow risk control approach then a trader will achieve what other traders dont in this market.
    I am really sorry that I don't understand fully if you did question to me or informed me about yourself. But, if it was a question about renko chart, then Yes! A renko chart only presents price action in front of you and you would just need to take the right action. Renko itself is a good indicator which eliminate a lot of noise from your trading.

    You don't need to believe on me! All you need to do is to generate a renko chart, try for one day and see by yourself, or maybe you would need to give it a week or even a month but mark my words, you will surely feel the taste of success there.

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    Quote Originally Posted by newentry View Post
    so we have different opinion and it is okay, we do not need to push the others to take it right ? and also i always feel like a newbie , so you can see my username with " newentry" heheh. and at this side, i just wanted to share my opinions, many people think that reflex is a thing happen not from the main command, of course, but it is saved deeply in the subconscious and we can trained it, like a fighter who hone their reflexes with a stance, so when there is an attack not think ahead too long to parry or dodge, because everything is recorded properly but still can be controlled..i ever talked about this with master forex.
    think traders should trade with full awareness, control of emotions to make the analysis. all decisions should be based on careful analysis, patient, do not rush, and not based on reflexes. but the feeling will always be present in making the analysis. I think traders can practice feeling, the more experience, the trader will have a feeling about the direction of price movement. it is a feeling and not a reflex

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  11. #510
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    Quote Originally Posted by ngalapreceh View Post
    think traders should trade with full awareness, control of emotions to make the analysis. all decisions should be based on careful analysis, patient, do not rush, and not based on reflexes. but the feeling will always be present in making the analysis. I think traders can practice feeling, the more experience, the trader will have a feeling about the direction of price movement. it is a feeling and not a reflex
    In this regard, I think that poor trading practices of the trader is what causes it, not really emotion. We are always saying emotion when it comes to faulty trades, but have the trader really understand the consequences of things before trading them? Some are mainly because of greed and overconfidence in what the trader is doing.

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