Trading - Time Value of Money

An Important aspect By Tom An important aspect of success in trading is trading psychology. Foremost within this realm of trading psychology is the concept of discipline. Greed and fear are the two most dangerous emotions to a trader. Discipline is the remedy for these destructive emotions. The concept of discipline can take many forms. This includes discipline to: -Refrain from overtrading -Adhere to a sensible money management regimen -Act according to a structured trading plan -Cut losses and let profits run -Follow religiously a trading system with a proven positive expectancy -Trade without succumbing to the destructive emotions of greed and fear -Avoid chasing a runaway market -Use stop losses and/or trailing stops -Stay out of a trade if there is no valid reason to be in that trade

Some things I have learnt: By Tom Levels are not lines drawn in concrete, they get broken. You see, the more a level is tested multiple times, sooner or later it will get broken. From my observations, 2-3 times is the average, after that, expect a breakout of the level. Don’t listen to analysts.  They can stuff up your decision making process and cloud your judgment.  For example: I see a sell setup on my chart but because I’ve read the analysts report that says he is bullish on this currency pair because of this and that reason, I hesitate to pull the trigger . Later, I check the chart and see that if I had sold, I would have made money. So use your own independent judgment based on what you see on your charts. Find your best timeframe to trade. Your personality, work circumstances etc. may dictate what timeframe you can use. For me, I can trade from the 4hr, 1hr down the 5 & 1 min charts because I use multi-timeframe trading. Yes, there will be people that will say “You ...

What makes the best traders successful? By Tom  Are they "lucky"? Have they discovered some "secret" indicator? NO. They've learned the truth about trading.  Trading success is a simple as 1-2-3. Step 1 - Understand what trading is really about; Step 2 - Learn what a winning day trader does; Step 3 - Then do it. Continually. What Makes A Successful Day Trader? A successful day trader is someone who follows a trading plan. Your trading plan tells you when to enter a trade, and when to exit. An entry point. An exit point - either a target or just to get stopped out. Parabolic SAR, lower Bollinger, natural support and resistance, volatility stop. Whatever. Any trader must understand the timeless law of probability. That with a positive bias and a sensible approach to money-management (cutting your losses and letting your profits run), eventually you'll come out ahead. What makes day trading so challenging is the speed. You simply execute trades faster, and comp...

I Am a Good Trader Why is that? By Tom I know myself as a good and successful Forex/Online trader, because I have been able to repeat my success every month for several years. I know many traders who started learning forex/online trading almost when I did, but they are still learning, testing different systems, and losing money. It is good that they are not disappointed yet, but I don’t know when they will start making money consistently. Why did I started making money after a few months of learning and practicing, but these people are still learning? Many of them know a lot more than me, but why don’t they make money? What is my edge? I am a good trader, because… 1. My Trading System Is Simple and Easy to Use I have never tried to invent something new in Forex/Online trading. I never tried to reinvent the wheel. We already have everything we need to trade and make money. All of the tools we need are accessible for free. Why should we make our lives too complicated? I learned the techn...