One Good Way To Avoid Bad Days In Online Forex Currency Trading

Forext Trading For BeginnersIn online Forex currency trading, even just one bad day can make the difference between a profitable month and a losing month.

Every day, you have to be at the top of your game because everything depends on you as the one in control of all you do. Even more important than the markets you trade or the Forex currency trading system you use, execution is the key determinant in whether or not you’ll make money.

If you’re feeling lousy, in a pessimistic mood, or just not up to par, this will likely affect your decisions, including whether you stick to your online forex trading system or if you deviate from it – and wind up making bad decisions that result in losses or money left on the table.

Here’s an example to illustrate.

A good friend of mine has been in trading for a number of years. He does very well and has his Forex currency trading fine-tuned to the point that he has that feel for the markets that only comes with long-term experience as a trader.

I don’t want to embarrass him with this, because he was rather down when he shared this with me, so I’ll refer to him as Kevin, but that’s not his real name.

Week before last, Kevin and I were talking on the phone and catching up since our last visit.

He told me how the day before, he might as well have have stayed home and stayed in bed. He’d been sneezing and coughing and generally feeling like lousy. The night before, he hadn’t slept well and so he was pretty tired too.

I asked him how the day had gone in his trading, and that was really the big issue. He said that he’d been rather pessimistic because he was tired and just feeling ragged.

Of course this affected everything, especially his decision-making regarding his trades.

Because he’s been in a mediocre mood, twice he got out of trades too early because he was just ‘sure’ that they would stop short and turn against him, even though he picked them right and they ran.

Throughout the middle portion of the day, he missed out on four winners, because didn’t even bother to enter the trades. He felt that they’d just turn out to be losers like other times when the market turned on him right after getting in. His system had done its job of signaling him to get in and at the right time. Each time, he just was in too bad of a mood to accept he had a winner.

After the last one of those, he got mad and decided it was time for some payback, so he again ignored his system and hastily entered another trade, even though there was no entry signal. Another bad move – and quick loss of $400.

By the end of the day, he’d cut his profits short by $1,100 in profits by getting out too early, then missed out on another $1,800 by not entering the trades when he should have, and then just plain lost another $400 with a bad decision.

He really would have been better of home in bed.

Now the point here really isn’t to stay away from trading. You do it to make money and in order to profit you do have to show up.

Just like any other activity that really matters, you want preventive measures in place. You want to have problems averted, just plain not come up at all if possible.

You see, Kevin’s problem is that he neglects his health and general state. Not badly, though. Quite like many people.

His diet is marginal.

He stays up late and shorts himself sleep.

He never gets any exercise.

He doesn’t even take any vitamins to help make up for the rest.

Now, I love sweets and other marginally healthy foods too. I always have been a night person, NOT a morning person, and I certainly don’t exercise as much as I should for my age. I do however take my vitamins every day, along with additional antioxidants.

Whether your general health is just okay, or maybe you are physically stressed, the main thing is to stay ahead of the game, to do the right things BEFORE a problem arises.

The frequency that I get sick is pretty low, plus I do enjoy pretty reasonable health and good spirits the great majority of the time.

As a result of taking antioxidants, I rarely have bad days like Kevin did.

When it comes to health, the best defense is a good offense. Besides, powerful antioxidants help your body do what it is built to do: fight-off germs, heal and be healthy.

The main thing I like about taking my vitamins and the extra antioxidants is that I don’t have to make any major changes in my lifestyle to stay rather healthy and feeling good.

I don’t have to go to the gym.

I don’t have to try to become a morning person.

I can still eat what I like, knowing that I’m giving my body what it needs.

I feel good and function well when I need to be at my best.

Besides, I plan on being around for many years to come.

I want those years to be fun and enjoyable, not sitting around waiting to die. I’ve read in quite a number of places over the years that antioxidants fight what makes you age and makes your body robust against disease and degeneration.

A few of my favorites, in addition to my regular once-a-day vitamins, I take:

Extra Vitamin C, of course

Grape seed extract

Bilberry extract

Acai berry extract

I hadn’t heard of the last one until recently.

I’ve got this one neighbor who has alway been a bit of a hypochondriac. Not too long ago, I noticed that she didn’t have her usual list of complaints, plus she didn’t look as miserable as she used to either.

This was weird, and it got my attention.

She told me about this blend of berry juices that she’d run across, so I checked it out, and it was pretty pricey, but I did research the product to see what was in it that made it work so well.

According to the manufacturer, this juice blend has juices from 19 or 20 berries and other fruit, but the main benefits are from one primary berry in the blend: the Acai berry.

It’s reported to be an even more powerful antioxidant than grape seed, and has other health benefits as well, so I decided to give it a try.

Now the juice blend costs a hefty price, so the Acai berry extract in capsule form is much more cost-effective, plus has a long shelf-life and less risk of food allergy than the 20-berry juice blend.

It is always advisable to look at what a month’s supply is going to be, and there are alternatives that cost up to 89% less, plus have a higher concentration.

As a trader, this small investment in yourself a very good one. Vitamins and antioxidants are a whole lot cheaper than bad days in Forex currency trading.

Now, no matter how old you are, how well you eat or how much exercise you get, take good care of yourself.

Online Forex currency trading is challenging, and at times can be very stressful as you know. Make sure that you give yourself the advantage of good health so that you stay at the top of your game and make the most of it.

Your account balance will thank you for it!

Online Forex Currency Trading – How To Boost Confidence And Discipline

forex trading for beginnerssThe Challenge

Consistently profitable online currency trading requires both confidence and discipline to first achieve and then maintain a reasonable level of success. For virtually all traders, these two aspects of trading are responsible for their success or lack of it: having confidence as a trader, plus the discipline to stick to their orrex currency trading system.

Most traders that struggle with their discipline do so for a very simple reason and this is something that can be very easily addressed and rather quickly.

Ask any frustrated or struggling trader what their biggest problem is and it will boil down to a lack of confidence and / or discipline in one form or another. Traders who have both are the ones the that are doing fine and enjoying their trading.

Even the veteran traders will tell you that the primary reason for any rough spells they have occasionally experienced were from when they had a lapse or breakdown in their confidence or their discipline, but once they got it back all was well.

So how do you go about building these two emotional pillars for successful currency online trading? Or regaining them if they’ve waned?

The 80/20 Solution

One of the fastest and most effective ways to give yourself that boost is to intentionally create a disruption in the UNsuccessful pattern that has been established. Now this applies whether you’ve known success and temporarily lost it or if you haven’t found it yet.

The most powerful way to disrupt the pattern is through stepping back and making an assessment of your current day online trading. Now, this doesn’t have to be a lengthy or monumental task. There are two parts to this process and it generally follows the 80/20 rule with which you’re already familiar.

Good news for you is that the first part is the 20% of your effort that will yield 80% of the results. Even better is the fact that you can do this within the next hour or two and see results that fast. Here’s what you do:

Step 1. Effort = 20%, Yield = 80%

Step 1, part 1 is to take your recent trading results and run your metrics on your current trading. So which metrics are going to give you confidence and discipline-building information?

• Your real winning percentage
• Your actual profit-to-loss ratio
• The true size of your average winner
• The true size of your average losing trades
• Your actual number of winning trades
• Your actual number of losing trades
• Your REAL ROI from your trading efforts in both time and $
• Your projected annual income from your trading – based on real numbers from your current trading

So how does this help with your confidence if the numbers don’t look so great? Especially if you haven’t yet experienced a level of success that you desire?

Well, very specifically these numbers give you a very clear reference point to work with regarding the factors in your trading that make the bottom line what it is. Rather than going on hope and wishful thinking, you now know the particular aspects of your trading on which to focus your efforts – a realize results. It brings a great deal of clarity to the exact direction for you to take.

Just this simple step alone with give you a substantial boost, and part 2 will really bring about a transformation.

Step 1 Part 2.

In this part, you simply backtest your system (whatever it is) very specifically according to the rules of the system using recent historical market data for the markets you trade.

You then run the metrics and compare the two. This information is incredibly powerful in two ways for building both your confidence and your discipline to stick with your system. Here’s how this works for you.

By backtesting your system with historical data, this can give you a very clear measure of what your forex currency trading system is capable of delivering for you. If your current trading is not delivering the profits that you want, you need to knowif the problem is with the system or if it in your execution of the system.

If your current trading results are comparable to the backtesting results, then you know immediately that you need to take a closer look at the system you’re using.

If your backtest results are good, but your current results with your system are not, then you know that you need to focus on your execution.

Most importantly, if your system doesn’t backtest well, then you know straightaway that you need to consider changes to the system you’re using, either a new system altogether or changes to the one you’ve got.

Directly for confidence and discipline, if your system tests well, then your confidence in it should go way up, along with your discipline to stick to it – because you are providing PROOF to yourself of its capabilities and limitations and with real numbers.

Plus you can see its limitations and more easily get through short losing streaks and drawdowns while maintaining confidence in your system, thus making the discipline part of sticking with it much easier.

Step 2. The More Intensive Process

If you have gone through the process in Step 1 and find that your system is good but your execution is where you need to focus and you need assistance working through other possible emotional management issues, then you need to seek out resources specifically for finding the core issues to address. Go to Inside Out Trading for resources specifically created to help you with these.

In conclusion, confidence comes from thorough understanding and successful experience. Once you have a system in which you can have confidence, then the discipline to stick to it gets much much easier.

Analyzing your current trading then backtesting your system can provide a great deal of confidence and thus make sticking to your system considerably easier by knowing the particulars of how it makes your bottom line what it is and what your system is capable of delivering.