How to achieve what you want on Forex?
Many people like to repeat that, they say, 90% of life's success is blood, sweat and tears. I don't agree that the psychological component is 90% of success. In fact, it's 99! But this is definitely a success.
There are many examples of how beginners who diligently studied market theory, tried to create a trading system without a flaw, in 90% of cases stopped trying to succeed.
For what reason?
This was probably not obvious, but the psychology of behavior in the stock market was not taken into account. Trading on the stock exchange is not only theory and calculation, it is also extremely strong emotions and experiences. They are often the cause of failures on the stock exchange. "Cold head is one of the most important tools for trading on the stock exchange.
But how do I keep it like this?
Books that cover the problem of stock trading in one way or another from the point of view of psychology are widely available on the Internet. Individual works are worth reading and re-reading. There are even more articles warning against all sorts of dangers of trading on the stock exchange. But all this does not prevent 90% of people from getting a negative experience from trading on the stock exchange. The problem is that theory is dry and lifeless, but the tree of practice is eternal and full of life.
Reading the calculations, a person believes that everything is simple in stock trading. And then he sees that this is not the case at all.
Who should ask questions about the stock exchange?
A natural question is: who should ask questions whose answers are worthy of attention and useful for novice traders on the stock exchange?
How do you even make a decision about a deal if the theory is silent? You will have to make an attempt on your fingers to tell about your approach, although it is not easy.
So, "fundamental analysis is not an authority for me. I just ignore it when trading on the stock exchange. Assumptions and forecasts based on news – what could be more meaningless? However, news, regardless of whether it is good or bad, is still useful. This is an indicator of movement, and sometimes a catalyst for it. My deals sometimes get ahead of the news. Because I understand how the market situation will develop, no matter what the news is.
It is important to understand that I do not trade news. The potential of the deal can be seen without news! And you have to sign it or not — depending on what kind of potential you see.
Technical analysis seems to me a more appropriate tool for evaluating the profitability of transactions. The chart is a real assistant in decision-making. If I see on the chart that the divergence is not far off, the deal will not be concluded. However, for many beginners, everything looks different. Accepting as the ultimate truth everything written in books full of smart thoughts, beginners carefully study the schedule. They search for technical analysis figures and use indicators… As a rule, two or three hastily concluded deals sharply cool the enthusiasm. Not for nothing A. Elder said that there is no point in looking for the perfect deal on the chart, it is already striking.
Despite the fact that the market is a mess, you can understand the subtleties of its work. All you need is patience and hard work. Be patient-stock up on it. Read charts, predict what will happen in the market and how-these skills are necessary. What exactly you need to do is always prompted by the market itself, you just need to listen carefully to these signals.
In Smitten's book entitled "the Life and death of the world's greatest stock speculator, there is such a character: Livermore. And there is an episode where Livermore explains to his son the essence and meaning of his work, showing graphs. Livermor said that the figures, which represent the quotes, for some only numbers. And he, Livermore, hears music while looking at the numbers. But you can't teach them to listen to music. This can only be understood by yourself.