Fx Trading

Front 1

Top Six Reasons Why Traders Lose Money

Back 1

1. Lack of a trading plan.
2. Lack of Discipline to follow the plan.
3. Failure to control emotions.
4. Failure to accept and limit losses.
5. Lack of commitment.
6. Over-trading.

Front 2

Emotions experienced by traders.

Back 2

Greed, fear, self-doubt, depression, dissapointment, excitment, boredom, inpatience, panic (loosing internet connection), indecisions (is this the right entry point, should I wait for a better entry point?, should I take profit off the table right now?), anger, revenge trading, etc.

Front 3

New trading paradigm

Back 3

1.Define your goals and preferences.

How many trades you are willing to place a day, a week, a month?
When are you going to be trading?
How much risk will you be taking?

2. Once you decide trading is for you: Commit!

3. Learn the fundamentals and basic skills.

4. Start using STRATEGIES on paper.
a. One for a market going up
b. One for a market going down.
c. One for a market moving sideways.

5. Evaluate your progress and refine your strategies.

Front 4

Defining your goals: SMART

Back 4

Specific
Measureable
Attractive
Realistic
Timeframe

Front 5

After defining goals

Back 5

Make a plan

Then, execute the plan.

Front 6

Fundamentals

Back 6

1.Trade with the market's direction (easiest way to make money).
Buy when market is up
Sell when market is down.

2. Always need to know when to exit.
Know when to exit with a profit or when to exit with a loss.

3. Trade the right market
The right market to trade is A TRENDING MARKET!

Front 7

Skills

Back 7

1. Determine if the market is trending or moving sideways.
2. Based on market conditions, determine appropiate strategy.
3. When to exit a trade:
When to take a profit.
When to realize a loss.

Front 8

Feedback:

Back 8

Determine what works for me and what does not work for me.

Front 9

Risk reward ratio

Back 9

In a trend is higher. Usually from 3:1, 2:1 or may higher.
In a range, usually, 1:1 to 1:1.5