September 17th, 2009
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Trading the Forex markets is something that has to be learned and 95% of those who go through that learning process actually fail. But it’s not their intelligence that’s letting them down, it’s their emotions. Emotion is the fork in the road and choosing left or right will make or break your chances of becoming a profitable trader.
Pic: Alosh Bennett
This simple fact – that 95% of traders fail – has lasted well over the years, despite even more sophisticated tools emerging. There are countless Forex bots around that claim to win every time, numerous systems that guarantee profits. Yet still most traders take the wrong turn and lose it all.
To a certain extent Forex is simply logical. You can apply technical analysis approaches and come up with a straight forward, logical answer to the common question, “when should I buy or sell?” There are those that don’t use a logical approach to trading and lose but far more traders let their feelings influence their trades. It’s human nature.
All Forex traders will always face losses, whatever system, bot or ’secret’ they use. It’s easy to say you’re going to be disciplined about trades, too, but when it comes to crunch time there’s money on the line and no-one likes loosing money. You have to be strong mentally to succeed as a trader.
So how do you get to that point? How do you make yourself disciplined as a trader?
The answer is that you need to learn good risk management and you need to practice consistency. Don’t even think about trading with real money until you have spent a good two months using the same system consistently, without fail. It’s not so much that you need to test the system out, but that you need to prove to yourself that using the same system consistently will bring you the success you desire.
Of course I’m going to tell you that it’s this type of approach that is taught in LiveConnect, but that’s how Jarratt taught me and it worked! If you’re not convinced, check out the webinar this Saturday!
Tags: consistency, discipline, Forex, Jarratt Davis, LiveConnect, logic
Posted in Psychology | No Comments »
September 17th, 2009
Here’s a treat for you all. On Saturday, Vic Noble and Jarratt Davis, who host the LiveConnect service from Forexmentor, will be conducting a live webinar.
Special guest, and LiveConnect member, Rob Pampling will be going through some of the techniques used in the LiveConnect service and demonstrating some real results that they’ve produced. Rob is a fund manager who works with Jarratt so you are sure to get something useful out of the webinar for your own trading skills. You will also be able to ask questions!
The webinar takes place at 3pm GMT (see when this is in your city) and details are available on the LiveConnect site.
Tags: Forexmentor, Jarratt Davis, LiveConnect, Vic Noble, webinar
Posted in Announcements, LiveConnect | No Comments »
August 12th, 2009
While I was crawling around the BabyPips forum yesterday I noticed two seperate threads both asking the same question, “what do I do now?”
Having been through the educational material on the site these new traders didn’t actually know where to start. They knew how to buy and sell and which pairs they could buy and sell but they didn’t have the why and when to make a trade. They can see the road, they know where their destination is but don’t have any way to get there.
Pic: tj scenes
It reminded me of when I first started trading. Having learned all about the Forex markets and familiarised myself with Metatrader4 I didn’t actually know when or why I should make a trade.
The answer is simple: you need a method, a mode of transport to reach your goal.
Fortunately for me I had Jarratt Davis at my side teaching me his high reward, low risk style of trading. It’s not a system in itself but a set of principles which help you to build your own system of trading that you’re comfortable with and will help you on your way to consistent profits.
This was the vehicle I took control of and started down the Forex road to riches. It might not be the method you choose, but it’s certainly a good start.
Tags: Babypips, Forex, Jarratt Davis, learn forex, LiveConnect, Metatrader
Posted in Beginners | No Comments »
August 3rd, 2009
Whilst checking out the Newbie Discussion forum over at Forex Factory I stumbled on a short thread about aggressive brokers.
I found it interesting because the original post talks about a new trader who, after one trade (a profit-making one), was prepared to move from a demo to a real account.
Luckily his friend was there to stop him and he subsequently wiped out his demo account.
The lesson to be learned is that until you are supremely confident in your own trading abilities you shouldn’t trade real money. I asked LiveConnect’s Jarratt Davis what you should look to achieve before you can be confident enough to trade real money. He said, “traders should stay on a demo account until they have acheived a steady gain on their account over a minimum of 2 months using the same system consistently.”
Of similar significance is Jarratt’s suggestion of using one system consistently. Many new traders are guilty of system chasing which is ultimately the product of impatience and results in long-term losses in Forex trading.
Are you a confident trader?
Tags: Brokers, demo account, Jarratt Davis, LiveConnect, system chasing
Posted in Brokers, Psychology | No Comments »
August 3rd, 2009
According to some brokers, 93% of all new traders wipe out their accounts in their first few weeks of trading.
Why is this though?
There can be a number of reasons but a common one is a much too high risk/reward ratio.
Firstly, on a trade level, new traders will often set their stop loss and take profit at similar levels. For example, the stop loss and take profit levels are both 50 pips away from the entry point. This means that the risk is quite large. Risking a lot can reap bigger rewards but it only takes a few trades going the wrong way to create huge draw downs on an account.
The second reason is that often traders will risk a substantial amount of their balance by taking many trades at a time. It’s not necessarily a bad thing to take lots of trades at once, but only if the overall risk is still manageable. If all the trades loose it’s easy to get rid of an entire balance in just a few trading sessions.
Jarratt’s risk management video takes you through how he manages risk. He explains how best to calculate your stop losses and how best to manage your trades to keep your overall losses at an absolute minimum. These lessons are re-inforced every day in the chat room and the trade examples.
So if you have wiped out your balance before, you might want to try out LiveConnect and the accompanying Coach’s Corner.
Tags: coach's corner, Forex, Jarratt Davis, LiveConnect, Risk, Risk Management, stop loss, take profit
Posted in Risk Management | No Comments »
