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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. #371
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    Quote Originally Posted by AmitChallenger View Post
    Success will never come fast it will come when it has to come. Experience can teach us lessons and make our trading improve day by day. Without experience it is totally out of profit of new trader.Gathering experience and be skilled . Those two things are really very need in Forex trading.
    [lang=id]that is right , there is no shortcut, and will take a time to get success on this place, and also the traders will have different ways and ability to learn and understand this business till know how to do the right trading in the market, the experiences will show them the ways to get the success and if only they want to evaluate them[/lang]

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  3. #372
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    Quote Originally Posted by samprazaan View Post
    [lang=id]that is right , there is no shortcut, and will take a time to get success on this place, and also the traders will have different ways and ability to learn and understand this business till know how to do the right trading in the market, the experiences will show them the ways to get the success and if only they want to evaluate them[/lang]
    Shortcuts are very dangerous in any business.Learning with patience is what gives us the knowledge and skills. A demo account does not give real profits but I still say demo accounts is not a time wasting experience but it gives us an edge to know what is obtainable from forex trading.and as well a way for us to be successful traders.

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  4. #373
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    Quote Originally Posted by shivanandfx View Post
    Shortcuts are very dangerous in any business.Learning with patience is what gives us the knowledge and skills. A demo account does not give real profits but I still say demo accounts is not a time wasting experience but it gives us an edge to know what is obtainable from forex trading.and as well a way for us to be successful traders.
    Yes we should not look for shortcuts but learn with patience. Learning continues along with the real trading and its experience. When i was learning to trade, i used to dedicate all odd hours of the day. i used to think about trading and my losses 24hrs a day. But now that i am a better trader, I am now stable.

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  5. #374
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    Well definitely there is no shortcut way to become an perfect trader in forex, we need patience and seriousness in our learning, We have to give proper time for our practice and have to gain a long experience to make our trading system more powereful and money maker for us. I believe that good skill of trading can give us good profit consistently so spending time on learning is a good idea for us.

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  6. #375
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    Quote Originally Posted by forexlearner View Post
    Well definitely there is no shortcut way to become an perfect trader in forex, we need patience and seriousness in our learning, We have to give proper time for our practice and have to gain a long experience to make our trading system more powereful and money maker for us. I believe that good skill of trading can give us good profit consistently so spending time on learning is a good idea for us.
    Becoming a successful trader is a matter of hard and smart work with patience. Consistent earning is the aim of all traders. Once we are able to earn consistent income we can even draw a loan to increase our capital and also our earnings. It is a very good idea only if you are a very professional trader otherwise not.

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  7. #376
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    Quote Originally Posted by ANANDCHENNAI View Post
    Becoming a successful trader is a matter of hard and smart work with patience. Consistent earning is the aim of all traders. Once we are able to earn consistent income we can even draw a loan to increase our capital and also our earnings. It is a very good idea only if you are a very professional trader otherwise not.
    i guess not good idea to take the loan for trading forex and although for them who have the skill for it, the logical is here, when they can make consistent profit, and so i guess they do not need to take a loan to increase their capital, because they can compound the profit to get more lots size to get more earning,

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  8. #377
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    being with the good chance as entering schemes of work with the trading projects those leaves as trader to gains with the notice on defining risks of obstacles as conducting the relation between returns of work with the past terms of modulation having with the returns on condition as measuring of the different aspects on individual preference to leaves as best with the chance as trader improving the running examination as complying with the continuous arrange of works with the customs of analytics and evaluation.

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  9. #378
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    we need to be clear with the question and all that we will want to ask. Basically my suggestion is always that traders has to be focused and learn from the experienced traders. You need to ask questions in regards with the way you will make progress gradually and not making fast money . Because what a lot want to know is how fast they can get it done.

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  10. #379
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    Quote Originally Posted by Value trader View Post
    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.

    the first question that I often encounter when meeting someone who doesn't know forex is how much profit can we get with this money? what percentage of the money we invest?
    questions like this that I often receive and make me sit for a moment and take a deep breath.
    they only see and wish but cannot yet understand how high the risk is, how wild that forex market is.

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