Author Archives: Piyush Tada

4 Important Trading Quotes

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Where you want to be is always in control, never wishing, always trading, and always, first and foremost protecting your butt. -Paul Tudor Jones

In trading you should always have control over your risk. It is one of the most important thing.

I’m only rich because I know when I’m wrong. I basically have survived by recognizing my mistakes. – George Soros

You have to learn from your mistakes and improve every day. If you want to make money consistently in the market.

Set your mind on a definite goal and observe how quickly the world stands aside to let you pass. – Napoleon Hill

When you are trading you should have a very specific goal in your mind because in the market there are unlimited opportunity you should focus on what you want and then get out.

Everyone has the brainpower to follow the stock market. If you made it through the fifth-grade math, you can do it. – Peter Lynch

Markets are simple to understand but very hard to make money consistently. Because you have to be disciplined and consistent in your approach to make money and most of the people cannot do it.

Forex Trading is a Tough Business

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Stacks of coins with the word FOREX isolated on white background
Trading is hard, you feel like crap all the time. You cannot do a lot of things. Market keeps on changing. Even when you do everything write there is a slim chance that you will be able to make profit. But no matter what you need to keep going.
There are more failures then success in this field and you are always thinking am a good enough or is it the right path for me or I should do something else. Everything else other than trading seems so simple. Like having a job where you go everyday do what you can a get paid there is nothing to it.
You get your work done and you get paid. But in trading even when you do everything right there is a chance that you will not make any money at the end of the day.
We always hear about the stories of the traders who have turned their trading around and start making money but when that happens to you. When you are at the bottom everything looks like you cannot even breathe.
But you can do only one thing like everything else just keeps going no matter what. Because no matter what happen to you. You can choose to keep going. You can see that in the long run it will be a good thing for you.
So what you do is keep trading do some more research find things that you are doing wrong then correct them and you do some more mistake but you keep going.
It is hard as everything else in life worth doing. But the rewards that you will get will be worth it. Because you can make so much money in a single year that you can retire off.
If you really want it you can do it. You will be constantly feeling that it is not for you or maybe you should do something else because the other thing seems easy.
But in reality nothing is easy you will get setbacks in everything in your life so the only thing that you can do it keeps doing it. So find the reason why you want to trade so that you can keep trading when there is no hope and keep going when there is no clear path you can see.
Because all you do in this life is find things that you love to do and fight for it. There are not guarantee in life but if you find thing that you love and fight for it. It will be an interesting life and maybe a happy life.
Think about anything that you want to get good it do not matter if it is cooking, sports or any other kind of skill it take time. Forex trading will take time. You will learn if you keep finding things that you are doing wrong and keep correcting them or a regular basis and not make the same mistakes twice.

Find a forex trading system that is based on common sense and trade it as it is for at least 3 months before making any improvements.
Find in yourself why you want to trade aside from making a ton lode of money. Because there will be time when you will not make money so the only thing will keep you going will be your why.
So think about it and FIND YOUR WHY.

4 Steps to Increase You’re Profitability in Forex by 100%

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11792713-forex-trading

Do you want to learn how you can improve your profitability by at least 100% starting from next trade you take? In this article we will discuss the most important thing that you can do that will increase your profitability.
Below are the key things that if you focus on them will give the best result with the least effort.

Check if you are in correct state of mind

Checking your state of mind is the most important things of all and most of the trader does not do it. That is the reason there is not a lot of successful trader around.
If you are angry or frustrated when you are placing trade when there a strong chance that you will not be able to give your 100% and you are competing with the world’s best when you are trading. So if you are not in the right state of mind close the software and take a day off the market will be there next day for you.

Determine the risk on this trade

You should have a set risk that you want to take on every trade. You should set a risk per trade in dollar amount at the start of the month and do not change it. So if at the start of the month you decide what you will risk $100 per trade then do not change it if you previous 2 trades need up in loss. You do never know when the next profitable trade will come so fix your risk and stick to it.
What I have seen happening in my trading is that at the start of month I set a limit but after some losing trade I reduce the risk on trade then that trade result in profit. Now because I have set a smaller trade then I should have the profit is also reduced. If at the place of doing that if I have stated with the same risk then I might have covered all the loss.

Do you have a stop loss and profit target?

When you see a trade do not jump and just try to trade it without a plan. The plan is your stop loss and your profit target. You should determine the lot size that you need to trade so that you do not cross the risk that you have set for this month on your trade if it goes wrong and you should know when you will get out when you start.

What is your risk reward ratio?

If you have followed the entire step above it will be easy for you to answer that question. If you do not know the answer then you should not be trading period. If you really want to make money in the long run in the market then you should focus on your risk reward ratio. Because if you have a ration less than 2:1 then it will be a lot harder for you successes in long run.
A good ratio to target is 3:1 or even better is 5:1 but never less than 2:1 if you really want to make money in the market.

This are some of the things that you need to do if you want to make money in the market in the long run. If you want to make big money in the market then you should focus all you energy on your risk reward ratio first and when you have if above 3:1 on every trade. Then you should focus on your success ratio.

Trading is simple as anything in life but it is not easy.

10 Secrets of Deadly Forex Profit

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Forex-Trading

There are several ways to go about make money in forex. But if you want to make consistent profits in the market then you have to learn few basic things. Like anything in life if you want to become good at anything first you have to master some of basic things.
They are simple to understand but hard to master. But if you get the importance of this things they you will be able to master them fast.

1. Make a plan

Having a plan in trading is the most important thing that you can do. If you have plan then you when to enter in market when to exit it so on and so forth. So it will become easy for you to do your daily things if you know what are the right thing and how can you do it.
It will be hard for some of you to follow a written plan. You mind will play games with you will try to outsmart the market that never works for long.
You have to learn to trade with the market not against it.

2. Control your risk

If you can learn to do one thing right at the start of your trading career then you should learn to control your risk. When you are trading in the market no matter how good your system in you have to take risk to make money.
If you start to loss more then you earn on your profitable trades then you will not survive for long. It is the most important thing that you make more per trade on average then you loss. Having a good risk reward ratio is important for you forex trading success.

3. Follow your plan

If you make a plan to trade then the next problem appear the problem of not following the plan. In other areas of life if you do not follow plan that you make it do not make a big difference but in trading it is of very importance.
Most of the people in forex trading do not fail due to inability to make plan but fail because of there in ability to follow that plan.

4. Master a trading system

What most of the people do in forex trading is that they go from one trading system to another thinking that this will work. But the problem is not the system but it is you. You can make money by any trading system if you follow it long enough.
But the problem most of people face is lack of disciple to follow the system long enough so that they can master it and start to make consistent profit with it.
So it become the reason of failure for more the 95% of forex trader. If you have reasonably good system with good trading history in all kinds of market then follow it.

5. Simplify your trading

What is mean by simplifying your trading system is that you should remove anything that is not important from you chart, trading plan or trading system. You should never add things when what you have is making you money.
It do not matter how many indicators you are using or how many different oscillator are there in your chart. In trading less is more. If you can trade with just price action then it is better. By using candle sticks only you will be able to make great trades.

6. Analysis your past trades

If you do not learn for the past you will repeat the same mistakes in the future. So you should never let a learning opportunity pass you. You will never be able to learn everything about the market. So never stop to learn.
It do not mean that you should only analyze your losing trades you should all analyze your profitable trades also so that you can know what are things that you can do right. Being able learn from your mistakes is the greatest skill that you can learn. It will help you get to new heights in life.

7. Develop patience

The ability to sit and do nothing when you are in a profitable trade is the most important thing. Because what most of people do is let their loss run and cut their profit short. They lack the patience of waiting for market to do its thing. If you go back to your records of your previous trades and see that if you have just stick it out then you were in profit for a little bit more.
Then your trading account will be a lot different. It does not mean that you should stay in a losing trade. You should have a rule in plan about the losing trades when are you going to get out of them.

8. Record your trades

Having a good record is a paramount importance to your forex trading. If you don’t keep a good record then you will never learn thing that you need to learn to make consistent profit in forex market.
You will not able to analyze what are thing that you have done right and wrong in your trading. So that you can make a better decision in the future and update your trading plan.

9. Take breaks

Having a break do not just clear your mind it will improve your trading in ways that you can’t even imagine. Breaks should not depend on your profits. You should have trading breaks no matter if it was profitable or losing time for you.
You should have a week off every 90 days or 3 months. So that you refocus your mind and get your prorates start.

10. Find something to do in free time

Your trading should not be everything in your life. You should have other passions in your life. Some of trades play golf in their free time. You can chose whatever you want to do with your free time. You can exercise, learn something new, meditate or master an art of martial arts.

These are thing that are important to improve your trading. But you will only be able to do them on consistent basis if you make a habit out of them. You will be rewarded with consistent profits if you make a habit of doing things in above list. Trading is a marathon it is long and hard so be prepared for it.

3 Things That You Can Do Now To Improve Your Trading

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Improve Your forex Trading

If you find yourself in a situation when you are not able to make profit for a long time. Then it is time for you to change something in your trading.

I am talking about things that you can do now to improve your profitability. The first thing that you need to do is reduce the number of trades that you take.

Second thing that you need to do increase your time frame if you are training now on 15 minute chart then start trading at 1 hour chart the best is to trade on 4 hour and daily chart. Also focus on the quality of trades because when you make fewer trades you can really pay attention what you are doing and how can you improve. It can be hard for you at first but you will learn to do it.

The best thing you can do is focus on daily charts. It will not be profitable at first and most of time you will not be able to make out trades but slowly you will be able to see trades and make them it will change your life.

1. Good records

Start keeping good records of you is trading one of the reasons most of the people are not able to learn anything because they do not know what it that they have done wrong so to find the main problems in your trading you need to keep good records.

When you keep good records you can pin point the mistakes that are costing you the most and make change accordingly.

2. Reduce number of trade per section

What i have found in my trading is that when I trade on emotions I make wrong choices so to reduce that what i have done is reduce the number of trades that i can make during a session. Now I only make 1 trade per section so this reduces my emotional trading and made me profitable.

Thing that I learned with a close observation of my records it that when over analyses I make trading mistake so to solve it what I have done is to simply look for trade one time if nothing pops out then close the trading terminal and that is if for that trading section.

There is going to be profitable trade and losing trade it does not matter because trading principles will pay you in long run. You need to follow whatever trading principle that you have made no matter what is the imitate results are.

3. Simplify your charts

If you have too many indicators on your chart you will not be able to make good trading decisions so reduce the number of indicators on your chart.
You only need two things price action and volume anything more than that is just distracting you from making right choices.
When you start doing trading with a simple chart you will see that stress is reduced substantially and you will be able to make better trading decisions based on just two things price and volume.

Less is more in trading. Less trades you make, less things you have on your chart, less rules you have in your trading system. You have to do only do two things to make profit in trading find the trend and then trade the trend. There is nothing more to trading then that. Money management is an important part of all this. Happy trading.

10 Things You Need To Know To Become A Great Trader

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Trading

You are here to know how to become a great trader. To become a great trader the most important thing of all is to know why do you want to trade in the first place. Is to make a lot of money to impress someone or you are just bored and want to do something with you life.

Is it because you really want to become a great trader. You should know why you want to do anything even before you take even a single step. In this article I am going to share thing that I have learned by trading and reading a lot books about trading.

“The market is a brutal place. Forget trying to be liked. Need a friend, get a dog. The market doesn’t know you and never will. If you are going to win, then someone else has to lose. You don’t like these “survival of the fittest” rules? Stay out of the zero-sum game.” Michael Covel (Trend Following)

You can follow to them to improve your trading and even your life. But it will not be of any use if you do not apply them to your trading. But you cannot apply all things at the same time so chose what are the areas that you want to work on your trading make those are strong before moving to another. You cannot improve on all the points at the same time so once you have chosen a point do not change your chose when it become hard to follow it. Only move when you are certain that you mastered it.

1. Keeping good records

What differentiate a normal person from a extraordinary person is the ability to analysis his own action. If you are examining your action it is hard for you get any better at anything. For examination you need data.
For data you need to keep good records. It may be hard for most of trader to start recording every trade they make but if you focus on making it a habit when you will find out that it is not that hard at all.
This should be in your trading plan when are you going to record the trade that you made just now. For me it is before I even make a trade I record it. So what I do is write in may excel what is price that I am going to enter at the stop loss and the profit target with the lot size. After I have written all that I will place my trade in the trading software looking at the the data I just entered.

2. Learn to handle loss

Loss a part of trading if you want to become good a trading you have to understand one thing that is that you will face loss. But the important thing is how you deal with them.
If every time you have a losing position get you in a self sabotage mode then it is going to be very hard for you to profitable in the long run.
You should celebrate your loss at first it may sound weird but is a good practice because loss is the best place to learn something new. If you too much focused on the money you lost then you will no be able to see what mistake you have made and learn from it. It is very important that you learn from your mistakes that is the thing that will move you forward in your trading.

3. Make a plan

You cannot do anything great in your life without a plan. This also apply to trading if you want to become a great trader you need to have a plan in place.

You should know what time you are going to trade. What instruments you are going to trade in? How much risk per trade are you willing to take? It is very important that you know your risk on every trade you make. Even when you think it is a sure thing you should always risk the same amount of money.

Because there is 50% chance that you can be wrong. You do not want to loss a significant amount of your capital on a single trade. It is not good for your capital and not good for your trading as well.

You have to keep trading the way you were before the drawdown and also be patient. There’s always part of a trader’s psyche that wants to make losses back tomorrow. But traders need to remember you lose it really fast, but you think you make it up slowly. You may think you can make it up fast, but it doesn’t work that way. David Druz

4. Follow the plan

Having a good plan is not enough if you do not follow it. A good plan is of no use if you cannot follow it so it is a important thing that you follow the plan that you have made and do not change it too much. Slight changes are acceptable but to make a new plan everyday is sure way to failure.

No trading plan will give you 100% success rate in your trading. So when you are following a system and make a losing trade it do not mean that the system is not good or you have to find another. Every system will have winning and losing trades. You have to learn to deal with them.

In the long run you will find that if you have just followed your system then you would have made money. But it is not a time to punch yourself in gut but to learn from it so that you will follow the plan that you have made in future. So that you can have a profitable future.

5. Think in multiples

You can only be profitable in your trading if you earn more then you lose. So your average loss must always be less then your average wins. It is also important that the profit is at least two or better three time that of the risk you take on every trade.

What I have found is that even the greatest trader of all time have a success rate of 70%. What that mean is that out of 100 trades that they make 30 of them are wrong. But if you are just starting out then you will see that your success rate is lower. So it become more important that you make more money in your winning trade then what you loss.

6. Master a trading method

You will find a lot of trader moving from one trading method to another in search of a perfect system. But there is no such thing you can earn money with any good system only if you master it.

What do I mean by mastering a system? What you really have to do is keep trading with the same system for 90 day so what you are going to do is make every trade according to the system that you have decided on. At the end of 90 days you will analyze all the trades that you have made in that time and find out how many of those are really placed according to your system and how many of the trades that you messed up.

I am not talking about profit or loss. What I am talking about is the execution of the trades. How good was your execution. At this point it do not matter if you are profitable or not the most important thing is that you follow your system.

7. Develop patience

Patience is a life’s most important virtues. But it become more important in trading so pay close attention to your action are you patient with your trading or not. If not then you have to work on it.

If you ask me what is the one thing that you think that differentiate a bad trader with a good one? I will tell you it is patience. The trader who have patience not to trade when there is no trading to be done and sit tight when is right can make a lot of money in the market.

It is not easy to be patient specially in the trading because you fill that if you do not trade all the time then you will not make money. But when you analyze you trades you will find that if you just have patience to not make wrong trade that is not right according to your system and sit tight when there was no reason to close the trade you would have made more money in the market.

8. Trading is a marathon not a sprint

Most of people think that trading a quick rich scheme but it is not that. It take time to become profitable in trading. And it take a lot of work to be consistently profitable which is the ultimate goal isn’t it.

But that do not mean that you cannot enjoy your trading now. You have to learn to enjoy every part of trading whether it is profit or loss or just a slow internet connection. I know it is hard to do even for me it becomes hard when you have a losing month. But you have to understand that all this is part of the game.

The only thing that you can do is keep going no matter what. Just follow the rules that you make and stick with your trading method.

9. Risk management

Risk management is the most important thing of all it is said that 50% of trading depend on your risk management. I have seen in my trading that it is the tool that help you to preserve your capital.

Capital preservation is the most important thing that you can learn at the start of your trading career that will help you a lot in the long run. Even most accompanied of trader have one or even more losing trading month but end up making money that year because of the risk management that they follow.

10. Trade like a business

Take your trading like a business have a plan follow the plan keep good records. You will not win everyday but if you master a trading method and develop patience you will be make a lot of money in long run.

These are some of the things that will make you a great trader. I am not saying that when you follow them you will never face a loss trade. But what I am saying is that if you follow this rules then you will be profitable in the long run.

Even the greatest trader of all time are only right 70% of the time. So it is very important that when you are not right you loss small and when you are correct you win big so that the small losses can be covered and you will be in overall profit.

Yes following this principles can be hard sometimes specially when you are not making profit even after following this principles but that is OK it will happen sometime. The only thing that you can do at that time is keep going forward. So that you will keep learning.

There is no stopping in learning in the market. Market will teach you new things all the time you have to be aware and pay close attention to what you are doing and also what market is doing.

There is no going around it you have to follow this rules if you want to become a successful trader. The faster you except that the better. It will take time for this things to become a part of you but when they do you will be rewarded several fold.

So keep going no matter how long the winter is summer will come. The only thing that will keep you from blowing your account before you start to make profit is money management. So develop a strong money management system and master it before doing anything else.

May I wish you a great year and your capital be the highest it had been for a long time. Happy trading or investing what ever you do make a plan and follow it.

Year Review 2014

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2014 trading review

2014 is being a long year in my trading I have seen some ups and down this year.

There are somethings that I have learned in the process. In this post I am going to share some of them with you. So that you can make good and profitable trading decision in year 2015.

 

Make trading a habit

You have to understand one thing that in this life you will only become good at something if you invest yourself fully in it. So make a commitment that you will make trading a habit. Like brushing your teeth you do not think about it you just do it.

In the same way you will trade your plan without thinking. Like it had become a habit for you.

Make and follow trading rules

It is the second most important thing in trading. You have to have some rules that are guiding your trading decision because without them you are lost. There so many things that you have to think about when you place your trade it is a good idea to make most of them a habit.

You can only make them habit only if you have trading rules and you follow them all the time. That is how you form a habit. After you have set rules and you are following them every day. If you not making profit then you should look at your rules then make changes accordingly.

 

Keep good records

“If you can not measure it, you can not improve it.”  Lord Kelvin

It is important that you keep good records and make a weekly analysis of how you are going in your trading. You have to look for things that are not giving you results that you want in your trading and change them accordingly.

Make record keeping one of the steps of your trading process. What I like to do is that when I spot a trade I open my excel file where I keep my records. And enter details of the trade like lots, open price, stop loss and everything in it before entering the actual trade in the market.

 

Never place a trade without stop loss

You have to live by this rule if you want to stay in the business of trading long enough that you can make it a full time job. You should always know what is your risk on every trade that you make before you make it.

Trading is not a sprint it is a marathon so it is important that you have mentality right. If you place a trade which beyond your risk threshold that you will be in process of ruining your hole trading.

You have to keep trading the way you were before the drawdown and also be patient. There’s always part of a trader’s psyche that wants to make losses back tomorrow. But traders need to remember you lose it really fast, but you think you make it up slowly. You may think you can make it up fast, but it doesn’t work that way.  -David Druz

 

Learn to handle losses

In trading you will have profit and losses you cannot run from it. You can do only one things that is to learn to live with them. It will make your trading a lot more better.

Forex Market Hours

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It is important to know when world markets open because it create a short term momentum that you can profit from so here is the time for all the major markets open and close.

GMT, EST and IST hours for trading Forex

Forex market welcomes traders 24 hours a day.
Forex market opens on Sunday 5 pm EST (10:00 pm GMT), closes on Friday 5 pm EST
(10:00 pm GMT).

Trading sessions according to GMT (Greenwich Mean Time):

Region City Open (GMT) Close (GMT)
Europe London 8:00 am 5:00 pm
Frankfurt 7:00 am 4:00 pm
America New York 1:00 pm 10:00 pm
Chicago 2:00 pm 11:00 pm
Asia Tokyo midnight 9:00 am
Hong Kong 1:00 am 10:00 am
Pacific Sydney 10:00 pm 7:00 am
Wellington 10:00 pm 6:00 am

 

Trading sessions according to EST (Eastern Standard Time):

Region City Open (EST) Close (EST)
Europe London 3:00 am 12:00 noon
Frankfurt 2:00 am 11:00 am
America New York 8:00 am 5:00 pm
Chicago 9:00 am 6:00 pm
Asia Tokyo 7:00 pm 4:00 am
Hong Kong 8:00 pm 5:00 am
Pacific Sydney 5:00 pm 2:00 am
Wellington 5:00 pm 1:00 am

 

Trading sessions according to IST (India Standard Time):

This is for anyone who trade Forex from India.

Region City Open (IST) Close (IST)
Europe London 1:30 pm 10:30 pm
Frankfurt 12:30 pm 9:30 pm
America New York 6:30 pm 3:30 am
Chicago 7:30 pm 4:30 am
Asia Tokyo 5:30 am 2:30 pm
Hong Kong 6:30 am 3:30 pm
Pacific Sydney 3:30 am 12:30 pm
Wellington 3:30 am 1:30 pm

This are all the times for the market that open and close. You should be at your trading desk at open of markets so that you will be able to take advantage of new liquidity in the market. I think that the most important time to trade is when London market opens.

Or even better from my experience is one hour after the London  market  is open for a hour.

Top 5 Quotes On Investing This Week

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Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas.
Paul Samuelson

 

Investing in health will produce enormous benefits.
Gro Harlem Brundtland

 

“An investment in knowledge pays the best interest.” – Benjamin Franklin

 

“In investing, what is comfortable is rarely profitable.” – Robert Arnott

 

“Financial peace isn’t the acquisition of stuff. It’s learning to live on less than you make, so you can give money back and have money to invest. You can’t win until you do this.” – Dave Ramsey

This are some of the quotes that I found this week that got my attention I hope you enjoy them.

Well There Is a Holy Grail: Having a Good Decision-Making Process

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Yes there a holy grail to the market. By use of which you can make consistent profits.

So why spend time on developing a disciplined systematic trend-following approach relative to other approaches? Because more important than the attempt to find the magic formula, trend following is an effective method for making good investment decisions.

It is this process of making good decisions that in and of itself is the Holy Grail. When done effectively, a good approach will stand the test of time and allow for flexibility with a choice of decisions.

When decisions are made in real world they are more or less depended on the psychological state of the person. They are not based on true hard facts.

So when you follow a good decision making process you eliminate some of this psychological factors. In return it give a consistent profit in long run.