Proper questions for traders
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    Proper questions for traders

    Hi traders.

    Our development in trading depends on what questions do we ask. What do I mean by that? The better questions we ask in our learning, the better answers we will get. I work with traders educating them for about more than 3 years now. I and will say to you, that most traders ask wrong questions. In this article I want to make a top-list of most popular questions that should be rephrase to give trader a chance to succeed.

    Bad Question: How much will I earn with trading?

    This question is very understandable, because every trader comes to the market to earn money after all. But this questions assumes that profit in trading is guaranteed. In fact, it’s much harder to survive in the long run than to earn in short-term perspective.
    Every trader can pick good trade from time to time, but there are too many factors that keep trader away from moving forward. It can be either psychological factors or market understanding, but statistics is merciless – around 70% of traders (and in fact, even more) lose money in the long run.
    I hear many times from traders what I call «10% mantra». They say – «I can earn 10% a month safely, if I try to make 20-30% it will be risky». It is far from true.

    So, question that sounds like «how much money will I earn with trading» is equal to «how many tigers will I kill hunting in jungle»? When task of survival is not achieved, talking about profits makes no sense. First trader needs to take protective actions – develop proper money management, loss limits, adequate market understanding. And when he learns how not to lose his capital, it will be fair to talk about profits. The only group of traders that can be motivated by profits, is expert traders.
    Only after you can learn to protect your capital, you can estimate the potential for profit (and it can vary upon market conditions, accepted risk and other parameters)

    Proper question: How can I preserve my capital and survive the learning curve?

    Bad question: Where will the price go?

    Another question that is not very useful for trader – «Where will the price go?» (What to expect from the market). You know, many would like to know what will happen. But studies have shown that behavior of price can not be predicted accurately. Best traders are ok to have no more than 50% of winning trades (yet their profitable trades bring more than losing ones). The game of prediction has nothing to do with real trading. It’s been proven by statistics that predictions have no correlations with real events in a long run. What about analysts? They have to create content every day, they can’t afford to issue one article a month or less (when they see really good opportunity). But trader has no such obligations. We can trade any time we want and we’d better choose the best of market can offer.

    The best question you can ask is not «where the price will go», but rather «where is trade location with low initial risk for my trade?». Focusing on predicting makes you concentrate on something you can’t control. All we can control in trading is our risk. Tools for managing risks are: Market analysis, trade location (reasonable level for placing your stop) and money management. As you see, market analysis is not the most dominant part in this triad, it is just «one leg of a stool», no more.
    It is important to have expectations about possible market movements, but it is more important to know your trade location – in other words, to know how exactly are you going to play this scenario.
    I'm not saying that being right is not important, but earning more when you are right and losing less when you are wrong is better objective. It’s realistic. It’s achievable.

    Proper question: How can I reduce risk in my trade and maximize return?

    Nothing new about it, huh?

    But it’s our human nature – we want to eliminate uncertainty, we want to know the future, therefore we focus on what we can’t control. Can we expect to have different statistics (70% traders or more lose their capitals entirely) having such beliefs?

    But you can be different. You can be a winning trader.

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    Last edited by Value trader; 01-12-2015 at 05:20 PM.

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    i often heard some traders who asked how much earning i will get at forex trading ? this is the mirror from them at forex trading busines and what will they do before make enough knowledge and ability, so just take the risk for making big money without know how to manage forex trading properly. honestly, i ever asked the same questions and got the same experiences, i realized that i was wrong and now i have changed this words with the seconds words like yours above

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    to stands of the good profiles as by the trace on the absence and the good returns of the constants of the stable works on delivering of the target as by the projected timeruns. those to prepare on more with the chance on experiencing of the extents by the sequences as having with the proper on basics with the nominal goods on putting with the good expense.

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    There are many things that a trader need to know but it is also a fact that every one does not know about these facts in start but when they spend time in this field .they come to know about these things and in this way they can reduce the risk.we should have patience and hopefulnes to survive in this field for long term financial success.

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    the work on having with the choice of the system and the strategy of the manage; those to leaves of the good chance on persevering of the best with the risks on complying of the good works on entering the market with the decision on selecting of the matching profiles as to avoid of the worse with the returns on deliverance as by the submission of the order. and to follows of the work on running of the customs with the evaluation of the open order with the trade.

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    [lang=id]right questions might be done well by the traders themselves where they know their weaknesses and strengths trade alone in determining a good trade which can be done well and certainly in the trade will be undertaken to determine the step we have to think how well we can manage our trades get[/lang]

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    Quote Originally Posted by Value trader View Post
    This question is very understandable, because every trader comes to the market to earn money after all. But this questions assumes that profit in trading is guaranteed. In fact, it’s much harder to survive in the long run than to earn in short-term perspective.
    Every trader can pick good trade from time to time, but there are too many factors that keep trader away from moving forward. It can be either psychological factors or market understanding, but statistics is merciless – around 70% of trades (and in fact, even more) lose money in the long run.
    I hear many times from traders what I call «10% mantra». They say – «I can earn 10% a month safely, if I try to make 20-30% it will be risky». It is far from true.
    This good statement! Many of my facebook friends usually share their profit as status. "This is my return a month from forex trading 1000$". " I make 100% proft a month". but to me they are all bullsh*t. They sahred profit but never share their loss. This is weird. I can trust them that they are profitble in forex. I agree that there are no exact percentage profit in forex trading. Someday we lost. And someday we profit

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    It is good that forex traders read a thing of great trading psychology like this often, it is the one that will change your trading ways from gambling in the market to trading rightly in the market because you will know the thing that is going on in the market very carefully before you take the trade. I think that it is a good point you ask yourself even more, so that yo are sure of yourself first.

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    Quote Originally Posted by cozard007 View Post
    It is good that forex traders read a thing of great trading psychology like this often, it is the one that will change your trading ways from gambling in the market to trading rightly in the market because you will know the thing that is going on in the market very carefully before you take the trade. I think that it is a good point you ask yourself even more, so that yo are sure of yourself first.
    Forex traders need to learn a lot of things so that they can keep growing their trading account. We will rarely see any traders that have the skill and the knowledge to become the top above the others but at the very least, traders in this business need to learn how they can gain the control over their own emotion when they trade for sure.

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    hard learning can give us a good profits . but how much money i want , i can't make a limit for that . i want a lot of money . i know it's very hard to make money from the market , but i wil never keep efforts to do it. time for me doesn't matter i will grow up in this business slowly. i am not in hurry to be rich in one night , i will take the low level of risk.

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