1. You can not predict the future: We have seen, heard and read hundreds of times futurologists guru and the market, with a small dose of courage and minimum skills to say things like "The Euro - Dollar 1.2930 hit in February," as if some operators will provide this information. I will say that how a trader who is starting his business. After reading or listening to what appears to be a thorough analysis and a professor can not stop thinking about this value as a reference just because someone said it. you will intervene in the market with confidence, but soon begins to have its position to losses, not only fail to lose, but is likely to put more lots to your original transaction, thinking that when begins to turn around the market, you will gain the position long before reaching the target price of its first position. Most often the consequences are serious and irreparable. Not just for the income that you drive but also for their confidence. Not against the alleged long-term analysis, which is sure of its unctionality and utility to read and apply what quinces, taking into account the speed and volatility of the market. Think about that: if you drive your car a path not marked by error and deviates only 5 meters per 100 meters of the route of travel that would take him right to his destination, after 1 mile notary no difference, however these values to move a distance of travel 1000 kilometers, and its serious error of 5 kilometers. Now think in terms of market, the different variables in it, and the multiplicity of data that make up the price of long distance operations. The error is proportionately larger impact on the expected target and also need to know who is working on a leveraged market so the spiral will grow in its error circle shape as adding up the points against him. The analysis of both technical and market fundamentals do not have the task to predict the future but more likely to provide, design and patterns of behavior with expectations for mathematics and statistics of any working hypothesis, and the non-compliance with these hypothesis probability is disposed to take as valid the contrary. Therefore it is not wrong to make market predictions, but it is extremely dangerous disregard the odds and forces the logic at the time of the operation.
2. Do not be biased: Many times, you feel tempted to look at the chart and said, "The market is up or down as is." These value judgments are hasty and pre highly negative thoughts, because the analysis procedure that you will later use to justify their intuition or trial prior to analysis. Do not take sides with the Bulls or the Bears, except that this is the name of your favorite sports team. Keep your analysis with dual hypotheses such as, if price levels are exceeded, the market is likely to increase if the price were below this value is likely to decline. It’s really not understandable tendency of some operators to be in favor or against the Dollar by sympathetic political, ideological or otherwise. We normally review a number of operators who take sides with the dollar or against it, and act according to the sympathy or antipathy for that currency. Eliminate prejudice, euphoria, or antipathy for a particular president, minister, idea or policy is fundamental.
3. Be flexible: A thought logically structured will crack less than a little intuition founded, I think he will commit fewer errors and if it acts within this mode of reasoning, once your strategy is not satisfied to leave his position by assuming loss . Remember: its part of the business take losses with moderate gains moderate. It is unlikely match its income with lavish profits in a few operations if it loses much capital.
4. Use in your favor the dominant trend: We have defined the Analysis of probability as a diagnosis, if we analyze the curve of any cycle price trend either upwards or downwards, note that a value increasing or decreasing trend according to an equation of 3:1 or 3:2. For example, you find that the USD / CHF are in a downward trend against all corrections or trend in the opposite direction to that movement, covering one third of the trail to the bottom. This shows that no corrections or bad search operations against the trend, it is, however, find that this correction cover routes not having to do with this equation 3:1 or 3:2. Moreover the question is why to contradict the will of the majority in a trend? His position in favor of the trend will most likely to succeed, it will with most points and quicker than against the trend.
5. I trusted his analysis: In either case you are technical analyst, an analyst based on fundamentals, before entering any market must be tested to measure the positive expectation of its analysis by applying it to market. Do not look outside trust you not to engage in imitation, to watch what others do. Design your own system of analysis and train for a reasonable time with it, check their consecutive losses and gains at the end of a cycle compare. Know how to operate would be with your analysis and then only history that has forged to rely on the law of large numbers. It is considered the first fundamental theorem of probability theory. "Basically, the theorem states that the relative frequency of the outcome of a random experiment, tend to stabilize at a certain number, which is the probability when the measurement is performed many times. Then UD feel confident when you have done your analysis and testing your system and it has operated with no less than N number of times necessary for a normal distribute on of results and so we throw a mathematical probability of favorable efficiency of your system. Then do not innovate, just follow the rules that arise from your own system. This is to have confidence in their analysis."
6. Have a plan. Think about this carefully: "If you do not have a plan you are in the plans of another." We have developed 4 years ago from teaching and training of professionals and the secret of success in business is not as decisive tools analysis but as used by them. A plan should be based on a method of working, i.e. you do every day. Then, establish a strategy, or, as will daily. Finally, acquire a tactic that will see under what conditions you work every day. If you are able to arm they in this way will be harder to lose to win. If you can not do it alone, then seek professional help. Do not try to operate in the market but has raised this issue seriously and honestly and to the probabilities, a priori, are against him.
7. As you know that: In addition, and to operate the law of large numbers in their favor under back testing has studied, the amount should not vary (much) of capital to risk for each transaction, if not under a plan for growth or decline according to the leverage of its capital account. In games of chance many players use the strategy of "martingale" by which double your original bet every time you bet, that is, before the eventual loss of a bet doubles the investment. If they bet $ 10, to recover back to $ 20 now and if you lose in the next event must wager 40 and so on, to recover the initial capital where the sequence starts again. If you pass this to the market without taking into account the loss of leverage when playing against him, as the successive losses quickly consume a large percentage of their capital, if you have already lost 50% of its capital in a leveraged market not think that you must recover 50%. Now with the capital that remains in your account should recover 100% of the money. If you originally had U.S.$ 10,000 and now has only 5,000, and from the current capital you have to win another 5,000 for the amount of initial capital is say 100%.Therefore the strategy of "martingale" or doubling the bet in the Forex market, high leverage, it is not recommended. And for this reason, we must make a serious study on how much of leveraged capital invested in each position, how much money it can take as a loss and how to deal with in terms of leveraging the recovery of this loss. Similarly when you win, you should note that time (when) will increase its leverage to achieve greater profits and take advantage of the leverage in your favor.
8. Keep a simple and easy: There is a mistaken belief that the business systems more sophisticated and complex to bring your best. When you put in your chart only one or two indicators have the feeling that something is missing. That he is leaving out something important. Then starts to say what if we add an indicator to your system for filtering input then why not this one for measuring the volume and then by not a few moving averages to give me a sign that his approach is far from operations. A first impression does not sound anything wrong but the result of this procedure leads to a confusion of vision is not in decision making. There is no single criterion on which would be simple, but we help to explain the subject in the terms comfort and enforceability. Trading system will have a comfortable provided it is not dependent on a signal whose verifications so that eventually made him late to enter the market. In addition, have a system executable when the decisions or triggers are not dependent on subjective interpretations so far-fetched that only with the help of a psychologist by his side you could put an order in the market.
9. If you think you will be rich overnight not to invest in Forex. Every year thousands come to this people, all eagerly unpronounceable success, and behind this state of euphoria is a magical thinking that accompanies almost all human beings, to gain unlimited, and many go beyond greed and argue with her: I will make me rich in this business tomorrow. Look yourself what reflect on this crucial issue. Think about whether an engineer, a doctor or any professional who has invested years of study and thousands of dollars in training think they will be a millionaire one day to another. Would it be very difficult, is not it? Why think then that in a speculative business like the Forex can be? Potentially a market that fluctuates 100 pips per wheel with the proper management of capital and professional earnings shed important to those who are engaged in this activity. However that does not happen overnight, but after having invested any other professional time, money and effort in their training. This is potentially a wonderful business, financial independence gives you free time left, get a financial reward that few people can achieve, you get social recognition and improve their quality of life. Nevertheless, take it easy, think of this as a career, and know that stage of development is, to improve its performance and do not abdicate the daily, invest in their training that will always be dollars spent, if compared with the losses ignorance that can cope in the market. Take charge of the business, it ceases to be magical thinking. Things do not happen but there are people who make things happen. Be honest with yourself.
10. Maintain control. Finally we emphasize one of the three most important aspects of this profession. On one hand we have the analysis and the operating system, handling of money (see point 7), and finally the emotional aspect. We understand that it covers 60% or more of the total estimated activity of an Trader. Controlling emotions is basic. This is not an activity for illuminated than for those who have control over their actions and can be handled within a reasonable fear and greed. There are many techniques and strategies to learn to maintain control over whether the time of trading. Start by controlling the environment where it conducts its operations, control prior anxiety before entering the market. Start by understanding the patterns and emotional impulse that lead to success in everyday life, not the best tools to develop the profession of Trader. Must do a complete re-education program of their natural impulses, the satisfaction they keep their egos and required additional doses of restraint and discipline.
