Successful trade composes of :
* Written trading plan
* Efficient money management and control
* Victory Psychology
The purpose of the given articles is:
1. Determination of a necessary element of victory psychology.
2. Determination of necessary personal qualities.
3. To show necessary structure of confidence for achievement and maintenance of necessary element.
4. Determination of blocks of Psychology of the Victory
5. To discuss some tools useful in this context.
There are two concepts which were to be researched in the beginning. The first concerns a method with which people acquire knowledge.
There is an objective validity which people feel through filters of the values, belief and rules. This perception usually deforms our feeling of the validity. How much we reduce or we eliminate this distortion, so we will be successful in life. It is especially true for traders.
The second concept which was to be entered is a development of the trader. Natural progress is:
1. The basic rule of the trader – “one rule: never break the rules”
2. The subjective trader – “two rules: the first, never break the rules; the second – the nobility when to break the first”.
3. for the intuitive forex trader – “there isn’t present any rules. If my intuition says me that this correct action in this transaction, it correct in the circumstances. This confidence will more often be agreed the validity, than isn’t present”.
All these traders can gain money while they correspond to rules of this stage, for example the trader at a stage of the basic rule, more than possibly, finally will lose money if he breaks the rules. At last, before to begin, it would be desirable to research of what it is necessary for motivation to success.
Trading is a success which it is simple, but it is not easy to reach. Simply, because “way” for success has been clearly stated in all three areas – the written plan of trade and is not easy to do, because, to follow this “way” isn’t easy, too.
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Well, first of all, in this article we will talk about trading with the brokers. In fact, the forex brokers are definitely not similar to equity ones. Thus they actually do not take positions by themselves. So they simply service the banks.
But let’s discuss their roles. First and foremost, they assist in bringing the buyers and sellers into the forex market. Besides, they also optimize that rate which they show their clients. Moreover, they faithfully, quickly and also accurately execute all trade orders.
Of course, this kind of business is done by so many forex brokers via the phone. And the call cost between the banks and the brokers are commonly free. Thus the forex brokers install the trading software for free of cost. Besides, the foreign currency brokers have their telephone direct lines to the firms all over the world. Moreover, the trading systems also have so called open box system in which a microphone is certainly in front of the forex broker. And thus it continuously transmits everything which he or she says on this direct telephone line to so called speaker boxes. So by that way, every bank is going to be able to hear each deal which is being executed. Without any doubt, due to that open box system that is used by the forex brokers, the foreign currency traders are going to be able to hear all about the prices quoted. To say other words, whether the offer was taken or the bid was a hit.
In fact, the forex traders are not going to be able to hear the numbers of the offers and the exact bids and also the names of the banks that are showing the prices. Well, the actual prices are kept anonymous because the trading can actually be made efficient and all the banks are going to have a good chance to trade.
In addition, the foreign currency brokers are going to charge some certain commission which is going to be paid by the buyers and sellers. Besides, negotiation will definitely take place on personal basis by the forex brokers and the banks as well.
And finally, foreign currency brokers also show the clients the rate that are made by some other customers either offer (two way) and bid prices or offer (one way) or bid rates from his or her customers. And so every forex trader is going to show price because every one of them view the forex market differently. Thus each one is going to have various expectations and also interests. The forex brokers are going to optimize the actual rates when he or she has more than only one price on one and more sides.
It is vital to gather as much info about currency exchange market as possible. Because this knowledge will help you not to lose much money on Forex trading or Forex investment.
Surely not a single piece of knowledge can be a 100% guarantee against losses, in particular on Forex, but sometimes just one Forex books can save you much money.
With what all Internet dazzles today? What advertized on each column? And what the radio and television shouts about?
Probably, any of us can answer this question with ease. Certainly, it is FOREX!
And, despite all general popularity of the given theme, the relation to it rather is not unequivocal. Someone, advertizing dealing centers, says that Forex is a pot of gold, and someone shouts that it is total fraud. So what to trust?
This question has interested me for a long time, and I have decided to find itself the answer on it. But it has appeared enough challenging because, as they say, as many people, as much opinions there are. And arguments of those who somehow faced Forex, at all haven’t helped me, as too they were inconsistent. There was one variant – to plunge into this sphere and to pass own way in the market Forex.
My desire to learn was very great, whether it is possible to earn in the market Forex really? I didn’t trust in possibility that it can be a simple fraud. And the world statistics convinces me in that.
After all just imagine – daily turnover of the market transships Forex constitutes 3 trillion dollars (for me, for example, such figure even in a head doesn’t keep within). About 25 % of millionaires and billionaires worldwide have made the fortune on Forex. In Europe and the USA every second family increases the savings in the exchange markets. So why then we with such little trust concern Forex?
This wave of forex trading has overflowed Europe and the USA in 70-s’ years. And for us much comes from Europe and West, and with lateness this forex wave has flooded the whole world. That is, quite probably, in some years our opinion on Forex in a root will change, and for us begins a commonplace to work in the exchange market. And for our pensioners Forex becomes a habitual additive to pension …
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Bulls against Bears
The candle shows an antagonism between Bulls (buyers) and Bears (sellers) for the given period of time. It can be similar with it single combat between two soccer teams which we also can name Bulls and Bears. The bottom (an intra-sessional minimum) candles represent a goal for Bears and top (an intra-sessional maximum) a goal for Bulls. If the closing is closer to a maximum the Bulls are closer to a goal. The closing is closer to a minimum the Bears are closer to a goal. Though there are many variations, we will reduce it to 6 types of trade (or candles):
1. The long white candle shows that Bulls managed a ball (trade) during greater time parts.
2. The long black candle shows that Bears managed a ball (trade) during greater time parts.
3. Small candles specify that any of commands couldn’t move a ball and the prices were closed in the same place where have opened.
4. The long bottom shade specifies that Bears managed a ball a game part, but have lost the control by the game end, and Bulls have made impressive return.
5. The long top shade specifies that Bulls supervised a ball a game part, but have lost the control in the end and Bears have made impressive return.
6. Long top and bottom shades specify, as Bears and Bulls were a success during trade, but nobody could keep advantage, therefore it is a drawn game.
Candles don’t reflect sequence of events between opening and closing, only a ratio between opening and closing. The maximum and a minimum are obvious indisputable, but candles (and time fame schedules) can’t tell to us that was in the beginning.
The long white candle assumes that the prices raised the session most part. However, being based on sequence of maxima/minima, session could be more changeable. The example that is seen above represents two possible sequences of maxima/minima which would generate the same candle.
The first sequence shows two small steps and one big movement: small decrease downwards from opening has generated a minimum, sharp increase forms a maximum and small decrease for closing forming.
The second sequence shows three enough sharp movements: strong increase after opening forms a maximum, sharp decrease has generated a minimum and strong increase forms closing. The first sequence displays the strong supported pressure of purchasings and looks more bull. The second sequence reflects the big variability and some flow of offers on sale. These are only two examples, and are hundreds potential combinations which could end with the same candle. Candles offer the valuable information on relative positions of opening, a maximum, a minimum and closing. However, trading activity which forms a separate candle can be various.
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A little bit of history
Japanese have started to use the technical analysis, trading rice in the 17th century. While this early version of the technical analysis, probably, differed from the American version pledged by Charles Dow in the beginning of 1900’s, many main principles were similar enough.
* what (price action) is more important – news, the income, etc.
* the known information is reflected in the price.
* Buyers and sellers trade in the market based emotions and market expectations.
* the Markets fluctuate.
* the Actual price can’t reflect mortgaged valuables.
According to Steve Nison, the candle schedule has arisen later and has possibly begun somewhere after 1850. The Most part in development of candles and schedules was brought by the legendary dealer rice from Sakaty Homma. Even, though is not clearly “who” has created candles, Nison notices that they, most likely are a fruit of the collective effort developed for many years of trade.
Forming of Japanese candles
Candles are formed, using opening price, a maximum, a minimum and closings. Without opening price, the candle schedule can’t be constructed. If closing price above opening price the hollow candle (it is usual shown as white candle is forming). If closing price below opening price the filled candlestick (is usual shown as black candle is forming). The hollow or filled part of a candle name a body (also named as a real body). Long thin lines above and below a body represent a range a maximum/minimum and are called as shades (also referred to as matches and tails).
Many traders consider that in comparison with traditional time frame schedules the candle schedule is more visual and easier for interpretation. Each candle provides “easy for decoding” picture of price action. Instantly the trader can see the relation between opening prices and closings the same as also a maximum and a minimum. The relation between opening prices and closings is considered the vital information and forms essence of candles. White candles where closing prices above, than opening, specify in pressure of buyers. Black candlesticks where closing prices lower than opening specify in pressure of sellers.
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