Why you Need to be a Gutsier Forex Trader

As a forex trader like in most other fields of life, courage is essential to progress and make a name for yourself; without being gutsy no one will ever take notice of you or try to get to know who you are. Being brave is an admirable quality to possess as a trader because it enables you to take on opportunities you might not have in normally, such as going for a trade with more risks involved than other trade you might have done before. Courage matters for quite obvious reasons, the prominent one being, that you cannot expect to do anything in any field (not only forex trading) without being courageous.

Courage doesn’t just enable you to take on new opportunities and step out of your comfort zone, courage can also help you get over a streak of losses. If you are brave enough, every time you lose, you won’t decide to quit and try and make thing better by holing up in your room or avoiding all trade related activities, you will actually pick yourself up and hold your head high while you enter new trades. In the forex business it’s usually the gutsiness of the trader that makes him hopeful and as most traders know, being hopeful is the key to success while trading. Courage is a very important aspect of one’s personality and it can help lead you to the path that ends at the goal you aim to accomplish.

Courage enables traders to express themselves in the right way so as to face the tough time- and there will always be a tough time in the career of a trader- effectively without going into loss, courage is very much required so that you can hold your confidence even after facing losses.

A trader should not ever lose courage- as a principle because lack of bravery often leads to self doubt and self doubt might force him to face many losses, not only trading but also in the practical life. A courageous man will surely be able to get good amount of money from forex than the other traders due to their positive attitude and gutsiness and ability to recognize a good opportunity when they see one.

-See more at:  https://goo.gl/N2GWIH

How to Get Back on Your Feet After Continuous Trading Losses

Most of us traders have been there, incurred so many losses, so many times that we’re actually unsure of whether or not we should continue trading. Well we’re here to tell you there’s nothing you morally did wrong (unless, of course you cheated to get on top) you might have made some common trading errors that a lot of beginners tend to make.

We’re here to help you get back up when trade financially and emotionally hits you hard in the stomach and reminding you that you can’t let one streak of losses ruin all your chances of succeeding in the future.

Understand What You Did Wrong

This step is extremely very important because before you can get back up and think, “Okay, I got it this time,” you need to know what you did wrong to fail the first time around, if you don’t do this you’re just in for even more losses. There are basically two types of losses that a trader can go through;

A statistical/normal loss:

A statistical loss is one which is incurred mainly due to some sort of overvalue or undervaluation that might have effected your trade strategy, this type of loss can also be called a normal loss because it is normal for a trader to often at times lose. The fact of the matter is that there will be losers in a trade as well as winners, statistically speaking, even if you employ the most winning trading strategies, a certain percent of you will definitely be losers.

Emotional loss

Emotional loss is pretty self explanatory, all traders are humans, and human beings sometimes do let their feelings and emotions get in the way of their work. Emotional loss also refers to losses made when you let your inner feelings such as desire for revenge, greed or over confidence get in the way of you and your real trading objectives. You can even feel pressurized- especially if you’re a full time trader to gain as much profit as you can and this can lead to losses if you’re not able to handle the pressure properly.

2. Understand That Everything Takes Time

Time is everything when it comes to trade, if you come up with a good strategy; do make sure that you give it enough time before you start doubting it and coming up with new ones. Your trading edge needs at least a couple of tries for it to prove its effectiveness, don’t get demoralized just because it doesn’t work the first time around because the odds will not always be in your favor and that is something you will need to deal with as a trader.

- See more at:  https://goo.gl/qmQEJf

Russian Markets Not Immune to Brexit’s Political Risk

Russian politics is celebrating this week the prospect of weaker European foreign policy, with many Russian financial experts weighing on the likely impact on Russia. Alexei Kudrin, former Finance Minister, believes that Russia will not be affected by a Brexit: “We can be sorry about the British leaving the EU. But there will be no catastrophe, even though financial markets will go through a brief period of instability”. 

Russian Economic Development Minister Alexei Ulyukayev declared on Thursday: “I believe that the markets have already taken under consideration the possible volatility and all the risks are taken into account. So I do not see any more risks”.

This view was also supported by some Western analysts. Michael McFaul, former US ambassador in Moscow Tweeted Friday: “Shocked by Brexit vote! Losers: EU, UK, US those that believe in utility of a strong democratic Europe. Winners: Putin.’

While any immediate economic impact on Russia might be muted, there is a real risk that the medium term political impact could have severe consequence for the outlook of the Russian market. 

This risk begins with the process of Brexit decoupling. Though it is understood that a British exit will take at least two years, what no one can factor in is just how orderly this process will be. As reported in the Financial Times, Stephen Weatherill, professor of law at Oxford University said: ‘Leaving the EU is a daunting challenge with no clear precedent. Brexit would unwind economic relations of ‘incomparable complexity and depth’.

Add to this the uncertainty, and potential ‘domino effect’ effect the Brexit could cause within the European Union, and there will only be further volatility.

Unpopular immigration policies across Europe has seen a growing rise in anti-establishment parties. A June poll reported by the BBC and released by the Pew Research Centre, found that only 51% of respondents across 10 European states still favoured the EU. France and Greece had unfavourable responses of 61% and 71% respectively.  In the unlikely event that a large integrated economy like France left the EU, a multi-year downward pressure on commodity prices would be the least of the market’s concerns.

-See more at:  https://goo.gl/JKYLdZ

Is it Possible to Make Currency Trading Your Career?

It all really seems easy enough doesn’t it? Especially if you consider the fact that it’s not every day that you run into someone who’s a successful forex trader, you automatically conclude that there mustn’t be very many people in this field and if there aren’t many people in this field, it would be easy to rise to the top with the proper knowledge and training, correct? Well, I hate to rain all over you parade but the fact of the matter is that despite the fact that not many people make trading currencies their profession, the ones that do, are so powerful- we’re talking Soros- billionaires kind of powerful that you can’t hope to bring down or accompany on the top. So whatever leverage you think you might have over everyone else just because you thought of this brand new way of earning- forget about it because you and your five hundred dollar bank account are not running into any quick money any time soon.

The forex market is fluid which means that it’s constantly changing- experiencing fluctuations and such. It’s fast and unpredictable and sure, this may mean that you can make money fast, but what it also means is that you can lose money just as fast- if not quicker. Because they’re ever changing, it’s hard to predict much in the forex market regarding currencies and government laws unless you’re one of those big shots with insider connections.

With the rise of scammers and manipulation it’s quite easy to fall for the whole get rich quick ordeals and schemes, instead of wondering whether or not you should take the opportunity and run, you need to ask yourself (and the person offering the opportunity to you) why you’ve been given this opportunity and why you of all people. If the answers you give yourself or get from them do not seem legitimate enough, take that as your clue to opt out of the whole ordeal right then and there.

-See more at: https://goo.gl/q9oMTB

How to Think Like a Successful Trader

You’re at it again, you’re spending the day sitting before a chart and bickering with yourself over what trading card to play next.

You think you have it, you feel the adrenaline coursing through your veins as you watch all the signs point towards profit and success for you, success so close you can almost taste it but wait!- there’s a shift in the trade, and it’s unexpectedly moving against you, your shoulders sag, both your stomach and your mouth drops.

You wait and watch in dismay as the trade continues to move against you and then that’s it. You’ve lost, again, you’ve made the same mistakes you made the last ten times.

What you need to realize is that you can’t help what you’re feeling but what you can do is try and make a change. As a trader you need to understand that emotions and feeling often take over all logical thinking and successful traders keep their feeling in tow when trading amongst doing other things.

Successful Traders are Fully Aware of the Workings of Their Minds

To think like a successful trader you need to develop an understanding of your mind, especially when you are trading, a good trader knows his limits and what his goals are, he does not easily get distracted by other unimportant things while trading. Good traders know what it is that will motivate them and what kind of thoughts they should be having while trading that will have a positive effect on the way that they trade. So to get the mindset of a winner, first get to know your mind and get to know it well.

They Know the Importance of Being Biologically Healthy too

What most traders don’t realize is that their biological condition has the ability to greatly impact their mental stability while they trade. Something as simple as taking deep breaths at the right time could have been the difference between you losing or you winning. The mind and the body are linked together instead of getting worked up and letting the adrenaline take over them, successful traders exercise and know well enough what the advantages of being healthy are.

-See more at: https://goo.gl/t4YrA6

How to Trade With Your Gut

The best traders are observers and anticipate their moves beforehand; this is called the “gut feeling”, every trader should rely on the gut feeling while trading as it is something that will undoubtedly establish to a higher degree as you gain your experience in the market.

Gut feeling can be understood by starters if we call it trading inspiration as well as high hopes, this is a very significant and dominant tool that you will need to develop to move up into the top 10% outstanding traders.

Gut Feeling and Price Action Trading

The various strategies that the trader uses will eventually become common facts to the experienced trader and as time goes on, the traders’ gut feel will help him determine if a trade is worth taking or not. Sometimes the trader may not even know why he is choosing the side of the market and not the other but his experienced mechanism will build up his thinking level, while he makes decisions the more experience and exposure that he has gotten with the charts and price action, the more prompt he will become.

It won’t come very quickly and will require lots of time of practice and experience but as you look at the charts and price actions, the gut feel will develop along with the development of strategic thinking.

Practice Makes Perfect

A lot of professional sports players have put in massive amounts of effort and practice and because of this; they have been able to go pro, they have played with a wide range of different players and this is what gives them the gut feeling to what their opponent’s next move will likely to be, this gives them leverage out on the field, much in the same way, in your trading strategy when you’ve put in enough screen time, you will start to develop the gut feel. There are many more situations where gut feelings takes place, whether it be sports, trade or other more practical fields in life, but in all, it surely requires experience and commitment for development.

Being Objective

There might be and most often are two views to something in a market, one trader might see a chart and think its convincing and the other might think that it’s vociferous. So, it would be best for you to view the market objectively rather than subjectively, if a chart looks very long, you may have a gut feeling that it’s wrong and although we can’t see it, our subconscious mind is being objective, it is having a view from the opponents side and guiding us to that view. Therefore, our subconscious can be objective without us even knowing because it sees the other point of view in a trade based on our previous experience on it.

Are you a trader who uses their gut feeling often while trading? Do you feel like you need to start developing your gut feeling? Be sure to let us know!

- Source from: https://goo.gl/pPHoLn 

Countdown To The EU Referendum: Can The British Government Avoid Brexit?

The countdown begins. Within a month, precisely June 23rd, the British will vote to determine its future within the European Union. This is coming in the midst of doubts of what the outcome of the referendum will be. The uncertainty is already being seen in markets across the globe. It needs to be determined how we all got here, the keys are now offered on a historical query that can trigger a process hitherto unexplored. No nation has ever left the EU block. How then will the block manage if the eventual outcome of the Brexit referendum turns out to be unfavourable to the block?

Who Can Vote in the Referendum?

All British citizens that are 18 years and above, Irish and Commonwealth citizens living in the UK , along with British citizens residing abroad  who have been on the electoral register in the last 15 years. European residents in the UK may not vote.

Can Spain Claim Gibraltar?

Although Gibraltarians are not lovers of the community project, but they are ready to defend themselves so long as it gives them a solution to the difficult relationship they have with Madrid. For this reason, all political parties of the Rock are campaigning within the EU block. According to the treaty of accession of the United Kingdom to the EEC in 1973, the Rock came as a "European territory for whose external relations the UK government is responsible for."

The Spanish has emphasized on several occasions that London does not want to leave the block. Although, according to British newspapers, if that scenario occurs, Madrid could take advantage of it to return to claim sovereignty over the Rock 

What is the Official Position of the British Government?

Given the popularity in recent years, the Eurosceptic UKIP were the ranks 'Tories' which pushed David Cameron to convene the referendum. The 'premier' is campaigning for permanence. But to avoid internal revolt, he was forced to give freedom to his people to defend the position that most convince them. Half of the Conservative MPs, including five ministers, are campaigning for the exit. The most significant case is Boris Johnson. The former mayor of London had always defended the European project, but now advocates leaving the club. According to analysts, more than conviction, by a sheer strategy to prepare his way to party leadership.

- See more at: https://goo.gl/oqHd9L

How to Control Online Trading Investment Losses

One might wonder why a profit/loss account is necessary when investing is about extreme highs and extreme lows the simple answer to this is that investors are only human beings. When taking a loss, investors too get disappointed and demoralized; to be a disciplined and courageous investor, one must adopt a strategy like the profit/loss account.

What is the Profit/loss Account?

A profit/loss account is a plan that sets a limit of loss or gains that a retail investor will take on a stock; it’s a sensitive strategy as containing losses is an important part of forex trading. A profit/loss account enables a trader to recognize what they do wrong in failed trades that result in losses and helps them avoid making the same mistakes twice.

Working Out Your Plan

Working out or deciding on a plan may sound like an easy task, but really it’s the hardest part about the whole profit/loss account strategy.

To start, you need to decide on the maximums and minimums that can’t be the same for each stock that you hold. To effectively devise a plan, you must use your analytic skills as a trader to understand that each stock needs individual attention and the trader needs to learn how much the capacity of each stock to move in either direction is, to do this most investors use fundamental analysis while some use technical analysis or even a combination of both these techniques to determine the right limits for gains and losses.

Something that also needs to be taken into consideration when a trader is deciding on what profit/loss account is to be formed is your patience and ability to withstand risks amongst other factors like your time frame and characteristics of the trader.

- See more at:  https://goo.gl/zkqy3v

How to Set Goals That are not out of Your Reach as a Forex Trader

We’ve all been told that we should set goals, and we assume that we can set realistic goals- but most of us have never been taught how to go about setting goals effectively so that they are realistic and achievable. I think a large part of why 25% of New Year resolutions are broken in the first week is due to the fact that they aren’t realistic goals, without something to shoot towards; it’s quite easy to get discouraged and give up quickly.

Don’t Aim Too High

To begin with, one must refrain from setting goals too high, out of the realm of goals which are realistically achievable in a specific amount of time, you cannot expect to trade successfully without learning the tricks of the trade first, recognize the value of proper preparation. This can be done by aligning your personal goals and disposition with the instruments and markets you can comfortably relate to. Break down long term goals into shorter, more achievable goals, you will end up more focused as well as better motivated than before.

Don’t Make Trading Your Profession Earlier on

Don’t aim to make a living right away, if you’re fresh out of school or still studying don’t only rely on trading to get you by, you will need a proper job to begin, so in the unfortunate event that you do go into loss, you can still manage to feed yourself and clothe yourself. The key is to understand that there is no such thing as only profitable trades and that no system will trigger a 100% sure thing and that losses are to be taken quickly and often, if necessary.

Don’t be in the Market 24/7

Another realistically important goal to possess is to stay out of the market as much as possible and to only trade those trade setups that look promising and that might yield high probability results. The best way of doing this is to think of forex trading as a marathon rather than a jog where you have to trade sensibly and with caution and you will find it is possible to seriously grow your capital from trading the forex markets, just not If you’re a trading addict who needs to get his fix every day.

- See more at:   https://goo.gl/ZupLH4

Countdown To The EU Referendum: Can The British Government Avoid Brexit?

The countdown begins. Within a month, precisely June 23rd, the British will vote to determine its future within the European Union. This is coming in the midst of doubts of what the outcome of the referendum will be. The uncertainty is already being seen in markets across the globe. It needs to be determined how we all got here, the keys are now offered on a historical query that can trigger a process hitherto unexplored. No nation has ever left the EU block. How then will the block manage if the eventual outcome of the Brexit referendum turns out to be unfavourable to the block?

Who Can Vote in the Referendum?

All British citizens that are 18 years and above, Irish and Commonwealth citizens living in the UK , along with British citizens residing abroad  who have been on the electoral register in the last 15 years. European residents in the UK may not vote.

Can Spain Claim Gibraltar?

Although Gibraltarians are not lovers of the community project, but they are ready to defend themselves so long as it gives them a solution to the difficult relationship they have with Madrid. For this reason, all political parties of the Rock are campaigning within the EU block. According to the treaty of accession of the United Kingdom to the EEC in 1973, the Rock came as a "European territory for whose external relations the UK government is responsible for."

The Spanish has emphasized on several occasions that London does not want to leave the block. Although, according to British newspapers, if that scenario occurs, Madrid could take advantage of it to return to claim sovereignty over the Rock 

What is the Official Position of the British Government?

Given the popularity in recent years, the Eurosceptic UKIP were the ranks 'Tories' which pushed David Cameron to convene the referendum. The 'premier' is campaigning for permanence. But to avoid internal revolt, he was forced to give freedom to his people to defend the position that most convince them. Half of the Conservative MPs, including five ministers, are campaigning for the exit. The most significant case is Boris Johnson. The former mayor of London had always defended the European project, but now advocates leaving the club. According to analysts, more than conviction, by a sheer strategy to prepare his way to party leadership.

- See more at: https://goo.gl/oqHd9L

Is it Possible to Make Currency Trading Your Career?

It all really seems easy enough doesn’t it? Especially if you consider the fact that it’s not every day that you run into someone who’s a successful forex trader, you automatically conclude that there mustn’t be very many people in this field and if there aren’t many people in this field, it would be easy to rise to the top with the proper knowledge and training, correct? Well, I hate to rain all over you parade but the fact of the matter is that despite the fact that not many people make trading currencies their profession, the ones that do, are so powerful- we’re talking Soros- billionaires kind of powerful that you can’t hope to bring down or accompany on the top. So whatever leverage you think you might have over everyone else just because you thought of this brand new way of earning- forget about it because you and your five hundred dollar bank account are not running into any quick money any time soon.

The forex market is fluid which means that it’s constantly changing- experiencing fluctuations and such. It’s fast and unpredictable and sure, this may mean that you can make money fast, but what it also means is that you can lose money just as fast- if not quicker. Because they’re ever changing, it’s hard to predict much in the forex market regarding currencies and government laws unless you’re one of those big shots with insider connections.

With the rise of scammers and manipulation it’s quite easy to fall for the whole get rich quick ordeals and schemes, instead of wondering whether or not you should take the opportunity and run, you need to ask yourself (and the person offering the opportunity to you) why you’ve been given this opportunity and why you of all people. If the answers you give yourself or get from them do not seem legitimate enough, take that as your clue to opt out of the whole ordeal right then and there.

- See more at: https://goo.gl/q9oMTB

How to Expertly Sell a Losing Position

Let’s say you’re a stockholder who wants to sell your stock for whatever reasons - usually the reason is that your stock is losing its value- but can’t fathom selling your stock at a time when losses might be larger. There are certain rules and regulations that if followed by traders can lead to great profits rather than selling at a loss.

Having a Compliant Selling Strategy
When choosing a suitable selling strategy, the nature of the company needs to be taken into consideration, there are many different types of investors with many different objectives and not all those objectives can be achieved all together- compromise must always be made. General strategies cannot always be used like the pricing strategy when other strategies such as the stop-loss strategy can be employed, however the stop-loss strategy has the tendency to become less and less useful as the investment time frame extends itself.

The 3 Fundamental Questions
To learn more about yourself as a trader and your investing style, you need first answer the three fundamental questions the first being why you bought the stock in the first place, what changed since then and whether or not that change alters your reasons for investing in the company. If your stock has gone down in price there is probably a reason why, you need to pinpoint that reason and understand how that affects the way in which you trade and why you trade with a specific company.

- See more at: https://goo.gl/Re34oQ

Prospect/Loss-Aversion Theory

Prospect theory is a behavioral theory in economics which describes the way in which people tend to choose between probabilistic alternatives that involve risk and cases where the probabilities of outcomes are known. According to this theory, people- in this case forex traders make decisions based on the latent value of losses and gains rather than the ultimate outcome foreseen.  Practically speaking, it seems all too justified to expect a forex trader to prefer a sure investment rather than an unsure one, however what Prospect theory suggests is that traders reserve specific quantifiable emotions over losses and gains separately for each one.

Loss Aversion
Loss aversion refers to people's inclination to avoiding losses rather than acquiring gains, psychologically speaking, a lot of studies show that losses are more powerful than gains however due to human psyche and greed, when traders evaluate an outcome comprising parallel gains and losses, they prefer avoiding losses rather than making gains.

The Endowment Effect
Accordingly, originally, loss aversion was proposed as a justification of the endowment effect, which is the fact that people place a higher value on a good that they own than on an identical good that they do not own, as is the human psyche. Loss aversion and the endowment effect go against the Coase theorem which states that "the allocation of resources will be independent of the assignment of property rights when costless trades are possible.”
- See more at: https://goo.gl/N4c2PE

The Trader’s Cure – Stop Overanalysing

Every trader, at least once in his career has come across a trade setup that looks perfect at first but then when they start to analyse it, they begin to feel less and less sure about that trade. Unquestionably, it is good to study and analyse every trade setup before entering it but overdoing this process and overthinking about it can become a problem for you.

This is quite common in the trading world, traders often over-analyse themselves right out of a good trade setup and it can become a huge problem that can have several negative consequences on their trading performance.

The solution for this problem is simple, ignore these influences. You should focus more on mastering your strategy, sticking to your plan and accept the fact that those external influences only hurt your actions.

The next problem is psyching yourself out of a good trade. One of the worst feelings a trader can have is when he/she watches the very trade they left, take off in their favour. The sole reason of them not entering it was that they thought ‘too’ much about it. All the traders have been in this scenario once in their careers and the cure for this problem is again, simple, don’t think so hard about it.
- See more at: https://goo.gl/SzXG3K