Trading progress, trading psychology and a trading setup library!
Most traders have a few or just one trading setup which they execute over and over again. A trading setup is when there is a predefined condition on the traded instrument which signifies and entry and exit. The most successful traders are those that know their trading setup has a positive expectation overall and are disciplined enough to run the same trade over and over again when the conditions are right.
I have read a lot of trading books and I think the key to becoming a trader is firstly trading psychology. This means controlling the emotional aspects of your trade when real money is on the line. You can read about trading psychology and what it is etc in books and be aware of it and then get a view when your trading psychology falls thin but this isn’t the same as actually mastering your trading psychology so that it is optimal for trading. Trading psychology takes time to get right, you will need to experience first hand what it feels like to win money, to lose money, to get frustrated. You will experience fear when the market is going against you and greed, the need to take a profit early when the market is going your way. Mastering ones trading psychology can take years….
However, once you have reached a level where your mind is ready. You will need to find some trading setups which you will feel comfortable with. When I say comfortable, I mean that some people will prefer different timeframes for trading.. some people like to make many trades in a day (day traders), some can hold for hours, days (position traders) etc.
I found a fantastic website with many trading set ups today which I thought I would share with you all:
http://www.trading-naked.com/Setups.htm
Just one more note, on the website there is a note which says:
Pick One, Master It, Be Consistently Profitable, Do it Now
The key here is being a specialist and mastering just one setup. You may think that if you learn them all, you be bucks in as you’ll have all these setups. This is never the case, I’m sure you’ve heard the saying “Jack of All Trades, Master of None”… this is very true of the markets, the markets are not very forgiven if you are not the best at it, you will lose money… this is another element of trading psychology.
Hi everyone!
Check out this site i caught: this retail ECN forex trading network comparison site forexanalytic.com