Time to get real

Sometimes we tend to dream but when wanting to trade profitably whether in forex or stock market, we must really need to keep the times and market situations. In order to do all these....we must also spend time and money to learn more to be a sharper and faster trader. Only the very best are the ones who make the most money in any market.

I have hear of this....from a old friend that he told me that there are huge piles of money to be made in stock and forex markets, and if you are hungry enough....you will find ways and means to get to the pot of gold awaiting the one who wants it the most. Yes! it is not a easy pc of cake and by all accounts....90% of the people failed to win money while the top 2% made the most. The balance 8% will make the rest of the money. Trading is a zero sum game....someone win means someone else lose.

For winning and losing....that is the outcome of any trade. Some would win big and lose small....and there are others who would win small but lose big! If....you depend on luck for making winning bets....then it may not to great outcome at the end of the day. So....it is still back to basic, to start with the fundamental of proper trading.

I have study from T3B and their methods then from others too. Basically the fundamental aim is not very much different esp with putting a "stop-loss" order whenever a trade is placed. This is the only to limit one's loss if the trade don't turn out right or if there is a nasty surprise eg 911 thingy! As for take profit, there is way to exit the market near the top of the range by following the break trough method. If it doesn't break trough...then just let the trade continues which meant that the trend is still in favor and the trade is still profitable.

On the buying side....it may not be a good idea to follow blindly to buy above break peak at this moment becoz of the level of the market in the whole. It would be fine and right if after a long period of huge pullback ( bearish market ). Now in order to make money, it takes one who can make the faster decision to call it "long or short" to be exit the market when it turns. Yes....it has it's pitfall, eg more commission to pay but it also have some good points too eg not holding to a position for too long and that won't tie up the capital.

I read it at the swing-trader.com site about how to trade profitably esp for present market condition and now I find the method to be right to use esp for present. It's like scalping in forex trading. And at the same time....won't tie-up too much capital if using CFD. Can max out the winning if have the right trade....same thing can lose if thing is wrong but with "stop-loss"...there is a limit. That is why...it is so important to win big and if lose, to keep it small! After a period of time....the money will follow.

Now to me....is the important period for me to understand and learn more before doing a huge bet. Yes....not the time to think of winning back all my past losses. No point thinking...becoz it only adds stress to myself and that would make me to make helpless mistake of trading for the sake of trading. Most of my trades were due to this mistake....thinking that I can win back my money, so trade with a greedy heart.

Think....I have sort of found a simple way to make money. To trade only in the direction of the market's trend of the day and at the same time....to place only 1 to max....3 trades. The best situation....is maybe just 1 trade so that I can 100% pay all the focus on it. Why...I lost today and yesterday? I have up to 6 trades going on at the same time but I can only focus on one at a time. By the time, I realised that the market has changed direction....my other 4 to 5 trades are already showing losses! I end-up confused and didn't re-act accordingly....and the losses get bigger! The only right thing....going for me is the "stop-loss" order. That limited my losses!