May 12, 2011

To Trade or Not To Trade - That's The Question?

To Trade or Not To Trade - That's The Question?

When everything is in place, Pull the trigger!

The two most known symptoms of bad trading habit are these:

  • Over Trade 
  • Analysis Paralysis

Over trade is taking more positions than they can handle. It is different from scalping. 
Scalping is a trading method to take little yet decent profit and needed a skillful trader to do it successfully. They may seem like over trading. But, they trade when everything is in place.

Over trade on the other hand, is emotional driven trades. The problem with it is, what you see is not what you get! The price goes up, your gut tells you, "This is it!" It drop seconds after you enter the market. 

When we put our emotion into our trading routine, it will be hurt when the market prove that our belief is wrong. The common solution for it is to make your mind ready to suffer a loss

Analysis Paralysis. 

When you learned to much, you will eventually reach the states of diminishing return. 
Read the title of this blog.

Don't fall trap to forex trading ads. They are all mean to lure you. Nothing else. 

Trading is never easy. In fact, it is hard as hell.
But, trading can be simple. It should be that way. 

When you push the 'New Order' button. What you see?
Right, either BUY or SELL. Very simple. But, because they want to sell you their seminar, books, video etc. Trading start to seems very complicated.

Look at your MT4 or trading chart right now. How many indicators are there?
How many fancy colored lines are there?

The more indicators or that 'things' on your chart, the more time and effort on your part to properly analyzed it. Keep it simple!


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About ArrowFX

Technically analyze the forex market mainly on USDJPY, EURUSD and GBPUSD by using market rhythm method started by Philip Nel on Forex Factory. The thread started on 2007 and still alive.
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