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  1. #1
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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.

  2. #11
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    Quote Originally Posted by Value trader View Post
    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.
    Yes. I always ask this question to my college and also ask myself this question. "where direction market will go?". I actually predict the market. The question describe the person who ask the question. The question 'How can I reduce risk in my trade and maximize return?' is the best question to maintain our psychology. I think psychology can be described from the words (question)

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  3. #12
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    Quote Originally Posted by aris90 View Post
    Yes. I always ask this question to my college and also ask myself this question. "where direction market will go?". I actually predict the market. The question describe the person who ask the question. The question 'How can I reduce risk in my trade and maximize return?' is the best question to maintain our psychology. I think psychology can be described from the words (question)
    You have the question which is not answered by yourself,then you ask it to other people,sure,you are now facing the situation,whenever trading you are absolutely get confused because of that question,where market pick you up? then you will trad any direction because of that.

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  4. #13
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    Good suggestion. We all need to follow it. We can see many unused and unnecessary question which are baseless. Hope the thread starter will follow it and put very authentic thread/question so that we all the traders can become benefited. Actually we all the traders are trading here to earn money. Even me also not exception to them.

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  5. #14
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    proper questions in trading do effect the mind of the trade like a bad question gives a negative impact on the mind of the trader and a good question makes the trader think and make him correct his mistake and earn profit so in trading providing proper questions are very much essential .

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  6. #15
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    to seems to be of the outstanding details as by the monitor on the absence and the outstanding earnings of the always the same of the continuous works on offering of the concentrate on as by the approximated timeruns. those to get prepared on more with the chance on affected by of the extents by the sequence as having with the appropriate on basic principles with the cost-effective items on putting with the outstanding price.

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  7. #16
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    [lang=id]but maybe it was caused by lack of knowledge or they just want to know it, and i guess there is no problem if they ask it, how much earning will they get at forex trading ? and after spend some time,and try to trade, they will understand and can answer it by themselves, and at last, they will grow up and think maturely, how can they stay at this business with keep good their balance or make it grow ? it will trigger them to start learning and practicing seriously and forget about the first answer[/lang]

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  8. #17
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    Quote Originally Posted by Value trader View Post
    Bad Question: How much will I earn with trading?
    This question also being asked to me many times. I think it's stupid question because forex is a business and there is no guarantee about how much we can get from forex. It's totally depend on our prediction, how many pips that we get, and also how much the lot size that will be used to trade. If last month we can get $1000 then there is no guarantee if this month we can get same amount.

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  9. #18
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    i told you all things that you know and you give to forex market you can earning most but your knowledge of forex trading best and you do not work in market in hurry and not use greed in forex makret then you can easily work in forex trading and earning more and more.

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  10. #19
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    Asking right question about the trading shows the real interest of trader.Those who ask this type of bad question they must be newbies who do not know much about trading.Thus after learning more and more about the trading a trader can differentiate between right question and wrong question.

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  11. #20
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    It can be good This forex traders read a good thing of amazing trading psychology just like this often, This can be your solitary that change your current trading actions from gambling on the market to trading rightly for the market since You\'ll learn your current thing It is going in on the market very carefully earlier anyone consider your own trade. when i think It that is a good point anyone ask yourself even more, thus The idea yo are sure regarding yourself first.

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