what the hell is this blog?
why is it taking so long to start trade?
how we supposed to get money if we only learn just the basics?
yep, that's all right on my mind :) but still the most important on this FOREX is PATIENCE, PATIENCE, PATIENCE and DISCIPLINE. that's true the number 1 rule to survive is just PATIENCE and DISCIPLINE.
PATIENCE : just open position when all the indicators is fulfiled (it may consist 1,2 or even 5 indicators to shoe the same color)
DISCIPLINE: always follow the rule of your system and what is have carved in your soul of trading
so what is the importance the basics......how do you want to operate FOREX if you don't know what button to push to start LOL.
ok let's start
1. Treat this Forex as an investment in the bank
just calculate it how much is the growth we will take in a YEAR if we put our money in the bank? 1%, 2% or 5%, i believe right now it's only 5% max per YEAR. remember per YEAR. just imagine would be more enough if you get 60% per YEAR, i said yes....if you have $10000 capital (for me) because the greed of every one must be different (it related living cost in each country). for asia's developing country maybe it's enough to living $6000/12month=$500/month, but what about if we living in the ADVANCED country like JAPAN, ENGLAND or maybe USA , i believe it's must be not enough at all, so maybe we had to put more capital until $100,000 (it's very huge).but once again it's all depends how we accept it as INVESTMENT not as a GAMBLE.
why don't we just use $1000 capital and get $10000....then you must be GAMBLING on your money. Put away this thinking from your thought because it's just like a POISON on your blood. just 1% of the trader that can make it happen (not even PROFESIONAL/EXPERT trader is include this 1%), so who is can make it.....it's the GAMBLER not a TRADER.
2. Trading Mentality
it's also important, as you can know FOREX is NEVER always going UP or DOWN, but forex is like a ZIGZAG it's right sometimes the price is going up high but also must be have retracement. that's why never be to fear or greedy.
Greedy
let's say you risk $10 (1 pip is $1) , buy at price 100 and in instant you have get floating profit $20 (it's like the price have reach 120 but you not close it)and you not CLOSE it or TAKE IT as you still thinking the price is will continued GOING up maybe until you get profit $50 (it can be or not because no one know the price :) ) but suddenly the price is DROP until 90 , so what happen next is you lose $10.
so how to lose this greedy....
it's easy just set every time you trading just RISK and REWARD 1:2 (lose and profit) in case on the above we have reached it, we should take it :)....but never RISK and REWARD 2:1 lose $20 win $10. let me illustrate it imagine you have 10 times trading and on this trade ther is only 50:50 ration WIN and LOSE let's calculate it using risk $10 per trade using Risk and Reward 1:2
5 Wins * $20= $100
5 loses * $10= -$50
---------
still profit $50
with Risk and Reward 2:1
5 wins * $10 = $50
5 loses * $20=-$100
---------
mines -$50
i believed there are MANY system that win accuracy is up to 70%
Fear
how do we get out the fear it's easy
1. play with money that you already set up to lose.
Never put your borrowed money to play in forex , because every time you want to open position you will thinking "how if this lose", "how i'am gonna pay back", the BAD NEWS is no system in forex has 100% win, but 100% PROFIT is lot. the point is not on the system, but the man behind the trigger is determine the success or not. ( i wll explain it under this statement)
2. play with rules and patience
Just like real life what will we going if we never obey the rule (even the rule is still made by human not GOD), like example if there is traffic light show red? what should we DO...keep going or STOP....i guess i don't have to answer it...
just like in the forex the indicators can say something like that too (even still, made by human or our self) if we OBEY it i believe we will survive if even we are not DEAD but the money is gone.
3. play with money management
- I want to risk my money $1000 per trade , do you think it's big to you all....too bad it's still small to me :)
- i want to risk $1 per trade, what do you think guys, is this too small for you....but to me it's big enough to me :)
$1000 per trade From CAPITAL $100.000 so it's just 1% of my money RELAX even this trade is lose i still have a plenty of money :)))))
$1 per trade from CAPITAL $2.......OH MY GOD I hope this is the best SIGNAL i ever HAD, just keep Praying because i had to return the money that i borrowed from my FRIEND
so you can see the different right.
back to case above that i mentioned before...
if we had have a good money management even when we in FLOATING MINUS WE DON'T TREMBLE BUT with bad money management EVEN WHEN FLOATING PROFIT WE STILL TREMBLE
conclusion for this 4th is....
1. Treat this Forex as an investment in the bank
2. Trading Mentality
Please don't angry at me cause i still not giving you the indicator or system :)
even the best indicators has only 90% of accurate usually wth R:R 1:1 , if you use 50% of your money i believed you will fear and start to think your job is fruitless
example again
day 1. 5 trade: 4 wins and 1 lose $100
trade1 win $50
trade2 win $75
trade3 win $100
trade4 win $160
capital $100
-----
$485
trade5 lose$250
-------------------
capital now $235 (+$ 135) it's good almost 150%
day 2. 5 trade again 1 lose and 4 win
trade1 lose $125
equity now $235-$125=$110
on the next trade i belief you will lose your confident then feel fear and also will double your risk to cover your loses (to thinking again it's just back o the start again, even we have won $10 equal 10% of Capital whicj mean we have invest in bank for 2-3 month, why should we angry....but that is human nature we don't accept loss we just accept WON)
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