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Well here we are. The final habit! In todays post we are going to discuss the 3rd habit that I have seen that successful traders emulate. This is an important one. It actually ties into the other two habits on patience and resilience. Because if you do not have this third and final habit. You will not be patient and you will not be resilient.
Displaying all three together allows aspiring traders to cultivate success in the markets. We all know that trading is a very emotional business. The constant ups and downs in the market along with the news that the media portrays can make your mind spin in a million different directions. It can be difficult to decipher what is correct and what is incorrect. Both sides might actually seem to be right and have valid points! This really can throw your mind into a tailspin!
Experiencing these emotions is a natural part of beginning to trade. As traders we are constantly bombarded with a mixed perception of the markets and whether to buy or sell a given instrument. This makes trading very difficult. A million opinions are thrown at us and we have to decide which makes sense to us. Even with technical trading… one chart timeframe will tell us one thing and the other chart tells us a completely different story. One indicator tells us to buy and the other tells us to sell.
This all can become very confusing and make it difficult for you to develop consistency in the markets. This brings me to the third and final habit we are going to be discussing.
As a trader, you must learn how to take all the information you are bombarded with on a daily basis at face value. What I mean here is that you cannot let the different opinions you hear about the market effect you. You must remain cool, calm and collected. As a trader you cannot be affected by your emotions and you must become numb to all the other news you hear about the markets. What matters most is YOUR opinion and only YOUR opinion.
To illustrate the psychology of most investors I want you to take a look at the image below.
I am sure you can relate to the “Emoji” or emotional feelings of investing at the different market cycles as illustrated in the info graphic. Everyone starts as what is called “most investors” on the top of the image. This is a disastrous place to STAY. To be an emotional investor means you will never get rich trading and investing… to put it bluntly.
What you want to do is naturally gravitate toward the bottom. Where no matter what the market or your particular trade is doing, you remain emotion less (cool, calm and collected). Your long-term success in the markets is directly tied to your ability to not be controlled by your emotions.
How to remain objective and poised as a trader
This is such an important trait that all successful traders have and I wanted to share with you a way that can help you become more present and objective before you begin your trading session.
What I would recommend you incorporate into your routine is a moment of presence. Being present allows you to remain objective and not judge the situation that is unfolding in front of you. It quiets your mind and helps you to relax. You are naturally brought to that state of objectivity through presence. Because your thoughts about what “should” happen are no longer controlling you. You release your opinion of what the market “should” do and instead you live and trade in harmony with what the market is ACTUALLY doing. You become an observer.
When you are an observer you are able to notice patterns within the market and exploit them. You don’t bring your biases from what the news or your friends from work are telling you the market is going to do. You remain in a state of balance. This is a fundamental KEY to your success. Developing a balanced mindset will ensure that you always take trades that are according to your trading plan. When you make trading decisions that consistently align with your plan… you are on the road to consistency in the markets.
If you missed the first part of the Habits of Highly Successful Traders… it can be found here. We also wrote the second part to this 3 part series which can be found here!
One thing that has really helped me remain objective with my trading is implementing the use of trading robots. A trading robot has no emotion or bias about the current market condition. It just identifies trades and continues to execute no matter what is going on around it. By using this tool you to can develop a balanced perspective of the markets by only taking trades that are in alignment with your strategy. At DARA trade we have developed a robot advisor that assists traders in taking great trading setups based on a handful of strategies. The robot advises you of a great setup that is based on predetermined rules and you the trader make your decision on if you would like to take the trade or not. This is brilliant! You get the assistance of a trading robot to identify the setup with no emotions, exactly according to plan. While you the trader implement your market knowledge to actually execute the trade. To learn more about this system click the button below and join our telegram channel!
Todays post is going to be a discussion about the second habit of successful traders. So what is the second habit? Resilience.
Resilience is an interesting topic to discuss. Lets start with the definition
Resilience – “the capacity to recover quickly from difficulties; toughness.”
- “the ability of a substance or object to spring back into shape; elasticity.”
The two definitions above can give us a pretty good idea of just what resilience means. Think of an elastic band. Just like the second definition says… elasticity… what exactly does that mean?
Being like an “elastic” means that you are be stretched in a million different directions but ultimately come back to your original shape and form. The forces of nature can try to pull you this way and that way but you stand your ground and always come back to your center (original form).
Nothing can permanently take a different shape or form. No matter what happens you remember your center and always come back to this place.
So now lets apply it to the markets and being a successful trader. Being a long term successful trader will mean that you have endured a few loses and setbacks in the markets. But what will define your ability to keep moving forward is resilience. The ability to bounce back from setbacks is what makes successful traders. When your account is being pumbled by losses it can be hard to remain in a calm and peaceful state. But that is EXACTLY what successful traders do.
Experiencing a losing streak can make it incredibly hard to bounce back and continue trading. Newbie traders will want to adapt their strategy (when it is perfect the way it is) or completely change their strategy all together. Bouncing around from strategy to strategy only continues to pull the elastic and stretch it farther than it can be stretched. What happens when the elastic stretches to far?
It snaps. This is what will happen when you continue to adapt your strategy or move strategies based on spur of the moment decisions. You never truly master any strategy at this point. Continually moving strategies is the actions of a new trader who does not yet understand how to master the markets and wants to find the “perfect” strategy to make money NOW. To put it bluntly… this is NOT the way to success in the markets. Testing multiple strategies and moving from one strategy to the next pulls the elastic farther.
You stretch yourself so far and ultimately you will snap. This snap will represent you throwing in your towel and giving up trading altogether.
So how do you develop resilience in the markets and develop the ability to bounce back from loses with no loss of enthusiasm?
Well… it takes time. Through long hours dedicated to the charts you will find that your ability to bounce back becomes easier and easier. You confidence in your strategy and in yourself as a trader grows as you have more time on the charts.
The first losing streak or setback is always the hardest. But once you have gone through a few losing streaks you know that your winning streak is on the way. You develop an inner confidence in yourself and your strategy by spending hours and hours on the charts. This really is the way to develop confidence in your strategy. Take the time to backtest and identify your ideal setup. By looking at your ideal setup and knowing exactly what will make you take the trade you gain confidence to take trades in real time.
I would suggest you write out EXACTLY what makes you want to enter a trade in the market. Are you looking for a support and resistance level? A daily candlestick pattern? Write these characteristics out and have them beside you each trading session.
Another important list to have with you at all times is what makes you NOT take a trade. Perhaps it is when the market has been moving against your desired position. When the market is trending. Any market characteristics that help you make trading decisions are so important. When you can pinpoint these characteristics you will have a better chance of making great trading decisions in the real market.
Backtesting is an incredibly powerful tool for developing confidence in your trading abilities and your strategy. Through backtesting you can discover all of your statistics. If you find that your maximum losing trades in a row has been 8 in your backtesting and in your live trading you have had 3 losses in a row, you can have more comfort in knowing that your trading is still in line with your strategy. This is the power of backtesting. You really start to understand your strategy, where your strategy is strong and where it is weak. You can then have a new level of confidence trading in the live market with real money!
At DARA we help traders analyze their trading data. It is so important to gather data in your trading so that you can always learn, refine and grow. Backtesting helps traders to learn their strategy, refine it and grow when in live market conditions. Without gathering the data on your strategy you will be lost in the markets. We have developed a journaling software to help traders analyze their trading statistics. Learn more about how you can take your trading to the next level in 2019 by journaling and measuring your statistics!
Todays post is going to be solely dedicated to YOU…the aspiring trader. Now I know all of our posts are for you but this one in particular. Many people just touch the surface when it comes to the habits that make traders successful but do not identify the TOP habits that you must develop in order to succeed in the markets.
In my time trading the markets I have noticed these 3 habits are a common thread amongst full time traders. If you can develop and cultivate these habits in your own life, I have no doubt that you will develop into a successful trader as well. For this post we are going to focus on what I would consider the most important habit for you to develop. The following posts on habit 2 and 3 will be shared in the weeks to come.
If you have been exposed to the self-development industry for a period of time you have probably heard of the following line…
“Do what successful people do and you will get what they have.”
When you start to study others success you will actually find that these people are JUST like you. Most people are not born into success. They had to develop and cultivate these habits that we are going to discuss as well. They had to go through the trials and tribulations JUST LIKE YOU. It is comforting to know that others living their dream live had a similar story. It makes us feel like we are not alone. Because trust me it feels like that some days and I’m sure you know the feeling as well!
But it really is true that if you do what successful people do and you will naturally follow in their footsteps. There is not much difference between a successful trader and yourself. They have just been in the game longer than you. So if you can learn and develop the traits we are discussing faster and earlier in your trading career, you will become consistent quicker.
The first thing I would encourage you to do is find a trader who you resonate with. Pick a trading mentor if you will. Maybe it is their lifestyle or the way they talk about life and their philosophies. Find someone who you really admire that is a successful trader and sit down and think about what makes this person successful. Start with a blank sheet of paper and list out 10 qualities that you think makes traders successful.
After writing these traits down think about how you display each one of these traits in your own life. Every person has every trait it is just shown in different ways. So think about some examples of how you showcase each trait you wrote down. After careful thought and consideration you will find that YOU have EVERY trait that successful traders have. You display them in different ways but ultimately you have every characteristic. Through time and dedication to the markets you can learn how to cultivate and develop these characteristics in the way that successful traders do.
Naturally because you are doing what other successful people are doing… you to will follow in their footsteps and become successful.
Now this is not an overnight process. It takes time, energy and dedication. But I promise that if you follow the correct path you WILL develop the characteristics that it takes to be a trading success story!
Which brings me to my first point… Patience.
Patience is one of the most important traits you must develop if you want to be a successful trader. Not only does patience help you with your trading but it also gives you a fresh and new perspective on life. When you develop patience, you find that you do not focus so much and getting things done NOW.
Living while always thinking about the future makes you ungrateful for the experiences and life you are living right now. In order to move forward I have found that you must bring your focus to the present moment in your life and adapt and move forward according to what is happening in this moment. By focusing on the future you forget what is happening in this moment. Even in trading, by bringing your attention to the present now you will develop an intense focus while looking at the charts. You will realize that each NOW moment will build together to form the future you ultimately want to manifest. By being your best today you will see all the pieces coming together to be the trader you want to be a year, two or three years from now.
To bring this future into reality requires patience. By living in the present moment you naturally will develop patience because you do not have your full attention constantly on the future. You focus on being your best right now and that means making good trading decisions today. Each great trading decision builds on the last and becomes the foundation for consistency in the markets.
We want to bring our attention to the present moment and not consistently focus on the future. This can put us into a state of fear and ungratefulness for the life we live now. We can often forget that each day we live is a stepping stone to that better future and the more we focus on making our today better… the better our future will be.
So today I encourage you to stop and be present. Realize that each day you have is a stepping stone to creating that better future and focus on that. Focus on TODAY not 365 days from now. By bringing your attention to being the best trader today, you will see great progress when you look back a year or even a month from this moment.
It is encouraging to those of you struggling right now to know that every trader went through the same struggles you did. All successful traders had to develop the characteristic of patience.
At DARA we help traders develop the characteristic of patience. Not only does DARA notify you of great trading setups but we also have an amazing trading community. You can talk with full time traders every day! You can see what setups they are taking and begin to develop the habit of patience. DARA helps traders develop patience because now they do not have to go hunting for trades but rather wait patiently for DARA to alert them of great trading opportunities. To learn more about how DARA works and how it can help you improve your trading results click the button below. Also drop us a comment if you have any questions :). For now… Happy Trading!
In todays post we are going to focus on a topic that is near and dear to my heart. Many people, not just traders simply do not understand the power of the principle we are going to share with you today. If you fully grasp and understand this topic you will be mind blown.
Compounding can literally change your life. It has been said to be the 8th wonder of the world. Running with this concept will allow your mind to open up to the possibilities that are available to you through trading and investing.
Sometimes when we begin our trading careers we are short sighted. We don’t see the bigger picture and how trading can literally change our lives. As new traders we often focus on achieving huge returns in the first few months of trading and don’t quite know how small gains achieved over a lifetime can impact us. Large gains are great such as achieving 10-20% per month. This is definitely possible but I don’t want you to get down on yourself if you are consistently achieving 2-3% per month as well. Because achieving these returns consistently can also have a HUGE impact on your trading portfolio over the long term.
When you consider the fact that 95% of traders and investors fail to make money… you should be ecstatic about the fact that you are making a consistent 2-3% per month.
When we understand compound interest we develop a long-term perspective when it comes to trading. We understand that minimal drawdowns in the short term are okay as we see the long-term picture. This brings me to the two most important topics I want to discuss today.
Compound interest teaches traders two very important things
1. The Value of Time
To see the tremendous results of compound interest we need TIME. Really to see the fruits of our labor in anything in life we need time. It takes TIME to develop something great. Trading is no different.
With compound interest you need TIME on your side. Because the more time you have the greater your compounded returns will be. So my advice… start compounding NOW. You have nothing to lose!
Take a look at the example below. You can see how a simple $10,000 invested at the different rates of return will compound based on different time periods.
Now you may be thinking to yourself… these are small rates of return! Cant I expect more from actively trading the forex markets?
The simple answer is YES! I am showing you the impact of what most people would consider as normal to average returns and the impact it would have on your investment portfolio. Now just think if you were making double 16%? What would the results of a portfolio compounded over 20 years at 32% per annum amount to?
After a simple calculation in a compound interest calculator you would find that a small $10,000 investment compounded at 32% per year for 10 years would result in a final balance of $235,253.13. How crazy is that! Look at the chart below to see the figures.
So what is my advice for you moving forward? Well this brings me to my second main point and that is…
You must have patience in the process and trust that time and the power of compounding are on your side. What does it take to develop patience? Discipline. You must be disciplined to stick with your trading plan and develop that long-term vision. You will not reach these figures by investing for only 1 year… even 2, 3, 4 or 5 years! You must stick it out! The power of compounding only takes form within the last couple years. This is when we see the big returns. After all, when you think about it… 32% return on a balance of $235,253.13 is a much larger number than 32% on $13,200 which is the investment balance in year 2. This is why in trading you must persevere through the difficult times. If you gave up after 1 year of what you considered “ok” trading results… you are missing out on a lifetime of possible gains.
So stick it out! Realize the power of compounding and how these seemingly “small” returns can have a HUGE impact on your trading results in the long term.
It is the impact of those long term results and how in the first few years it might seem like you are not achieving anything but when you wait it out you will see that the last few years are where the biggest gains are made.
To display this in a visual form… take a look at the photo below.
In the first 5 or so years you can see that your gains and interest earned are nothing to brag about. This is when your patience is tested. Do you have the discipline to stick it out and keep your long-term vision at the forefront of your mind? After taking a look at this graph I hope you do! You can see the power of a small investment and making achievable 3% per month returns and how this can impact your life! In this example you only invested $22,000 and you came out with over $400,000 in gains! This is the power of compounding interest and making consistent and regular deposits into your savings and trading accounts!
Now lets also take a look and see how making regular contributions will impact your portfolio value at the end of the same time period. It you look at the revised chart below you will see the impacts of NOT making regular savings contributions into your investment account.
You can see that you ended up with about $100,000 less than if you simple added only $100 to your trading account every month… so my advice?
Get in the habit of saving and making regular contributions into your trading and investing account. Just by looking at these graphs you can see the enormous impact that this simple habit can have on your investment portfolio over time. Now think if you were to add even more money into your account every month? Take the time to think about what a reasonable amount of money is for you to be able to save every month.
Then setup regular contributions in that amount every month and have the discipline to stick to it. Those who have discipline are the ones that will be rewarded. If you find yourself falling short keep this graph in the forefront of your mind so that you are reminded of the powerful impact that one decision can make in your life. I hope that you make that decision today. Your future self will thank you!
At DARA we have developed an amazing tool to assist you with measuring your trading progress. It is journaling software designed to help you monitor your results and ensure that you are on track for your goals! If you want FREE access to this software click the button below! Journaling DARA will ensure that you are on track to achieve the desired life you want through trading and investing in the forex markets!
Trading is an interesting profession. I don’t think I know of any other skillset that requires so much mental focus and strength. Now being successful in any endeavor requires you to put in similar amounts of time and effort. But trading is different in a couple different ways. The most important being your mindset and psychology.
The single most important thing that will determine your trading success is your psychology and your ability to manage your emotions. You will just not succeed unless you are able to numb yourself to what is happening in the markets.
I wrote this blog post to help you new traders or even seasoned traders see why it is not a great idea to be on your charts all waking hours of the day. It is important for your mind to take breaks. If you have your consistent focus on one thing 24/7 you are prone to burn out. Your mind needs breaks in order to bring clarity and order.
When you take breaks, you give your mind a mental break and this gives it room and space to open up for new ideas. Order flows into your mind when you release what you are focusing on just for a moment and bring your attention to something else. Its almost like you forget what you were working on and bring your focus elsewhere. Being in the present moment. This is powerful because it opens your mind up to new ideas.
Have you ever found that thinking so hard about something actually stifles your ability to think clearly at all? Take for instance trying to write a research report. When you think so hard about what you should write your mind comes up with no ideas. But when you are out for a walk not even thinking about the report you get a million great ideas to begin writing about! The same phenomenon can be applied to trading and mainly when you are analyzing charts which brings me to my main point of discussion for today.
Over analyzing charts is one way to sabotage your trading success. Over analysis most commonly occurs when traders do their initial analysis but then they go back and “review” what they have seen on the charts. By looking at the charts over and over again they begin to see and imagine patterns and price action that is against what their initial analysis pointed to. They then develop doubt in their mind about what they initially saw on the charts.
I like to call this analysis paralysis. Maybe you have heard of this term. It is very real in the trading world and stumps a lot of traders. The trader gets so many conflicting ideas about what the chart is telling them that they literally cannot develop a bullish or bearish bias on the pair.
How does this happen? It happens when a trader looks at a chart but does not exactly know what they are looking for. They don’t know how to dissect the chart and break it down into a story that the price action is telling them. Instead they look at various indicators, support and resistance and possibly trendlines or other technical tools and find that they all point in different directions. Indeed, this can be very confusing for a new trader and a seasoned trader!
What I have found to help me not over analyze the charts is having a crystal clear strategy so that I know exactly how I analyze charts and what types of setups I will be looking for. Then once I know exactly what I’m looking for I glance at a chart quickly to see if there is a possible setup. I don’t look at the chart for to long because this is when over analysis can kick in… when you stare at the chart for to long!
You may know what I’m talking about when I say your mind starts to develop patterns in the price action that you just didn’t see a few seconds ago! What I always like to say and implement into my trading is that if you look at a chart and do not see a possible trade within 30 seconds of looking at the chart then there probably is no setup.
Why? Because clear setups do not have to be dissected. They are so obvious that they just jump right out at you! Of course you must dig further to see if the setup meets all of your trading plans criteria but at the initial first glance you should be able to see if there is a valid trade on the chart.
I have implemented this strategy into my trading routine and found it to help immensely with over trading and emotional trading. I do not get emotional when trying to find a setup by making up possible price scenarios in my head.
By spending a little less time actually finding trades on the charts I am able to get back to the real reason I started trading in the first place. That is for freedom! I now have more time to analyze, backtest and review my strategy. Which are all vital components to trading success and growth. Not being on the charts 24/7 allows you to cleanse your mind and come to the charts on the next trading session with a focused and clarified mindset. This is absolutely essential. So rather than analyzing possible setups 24/7 why not go out and enjoy some time with your family? Remember the reason you began trading in the first place! I guarantee you that by taking the time away from the charts between your trading sessions you will come to the charts when you are supposed to be trading with a clear and focused mindset!
At DARA trade we actually have a tool to help you NOT have to look at charts 24/7. When the perfect setups present themselves according to predetermined criteria you get an alert on that particular currency pair! DARA notifies you once your rules are met and ensures that you are only taking the highest quality setups! How awesome is that? If you want to see what DARA is all about click the button below to learn more and become a member J. From here you can download our FREE software and begin your trading journey with DARA as your trusted sidekick.
In todays post we are going to discuss the importance of keeping a trading journal. A trading journal is a critical component to your overall trading plan and future success.
In any endeavor that you have ever gone through, you cant expect to keep all the information in your head. Take going to university, you cannot expect to get good grades unless you retain the information you hear on a day to day basis. Inevitably you will write some things down, refer back to those notes and then learn from them.
The same is true for trading. In order to consistently grow as a trader you must have something to measure your progress and keep you on track. This is what a trading journal does. It is a tool that allows you to document every single trade and action you take within your trading account. Such as setting take profits, stop losses and trailing stops. The more you measure, the more you can fine-tune your approach and become a better more consistent trader.
In saying this, there are 3 main things that keeping a trading journal can help you with and we are going to discuss them in greater detail below. But to outline them now, the 3 things are REVIEW – LEARN – GROW.
Every successful business keeps documentation of the work that they do. Progress reports are essential to a company’s growth. It gives the company something to measure their performance by and helps them to fine holes in their current strategy, make improvements and do better on the next project.
This is exactly how you should look at keeping a trading journal. It is essentially your report card. You can measure your success and then make improvements. The more in detail you measure your trades, the more in depth you can fine-tune your approach.
With that beings said the first point we want to touch on is…
By documenting all of the details of your trades you are able to do an in depth review of the trades that you take. Things to keep track of are
- entry date
- exit date
- entry price
- exit price
- trade management details
- original target
Of course do not be limited to this list but these are just some ideas that can get you started on the right foot. By consistency reviewing your trades you are able to see where you may be falling short with your trades.
For example, if you keep track of your original take profit levels and where you actually exited the trade, you may find through careful review that you are closing out positions early that ended up going to your original take profit. This can be very powerful because by simply reviewing all of your trades you are then able to make these changes that can have a huge impact on your results.
Reviewing your trades is essential because by reviewing your trades you become more aware of what your best trading setups look like. When you know what your best setups look like you are able to execute the trades easily and effortlessly.
Other important details to include in your trading journal are screen shots of each trade and detailed notes on why you executed the trade, what the setup looked like at the time, why you managed the trade in the way that you did and why your take profit and stop loss levels were set in the way that they were. These notes are essential to fine tuning your approach. You may find after a large enough sample size that you are not great at executing a particular strategy. You can than make the decision to not trade the strategy entirely or fine-tune it in a way that suits your trading style.
The only way to learn from your trades is by careful review. After reviewing all of your trades you are than able to pick out similarities and differences between great setups and not so great setups. By doing this you can tweak your approach and implement action steps to ensure that you do not make the same mistakes twice. When you see a mistake being made multiple times within you trading journal you can than write that mistake down to ensure that you do not make it again.
For example, “I find that pinbar candles in a down market that close as down candles to not make for great buy signals.” By making these observations in your trading journal you can greatly improve your consistency with executing the same great setups time and time again.
By carefully reviewing and learning from all of your trades you are able to grow as a trader. Growth only happens by learning from previous experiences and this is exactly what keeping a trading journal allows you to do. You are able to sort through all of your previous trades in an efficient and effective manner. When you identify that you are making the same mistake within your trades you can then put a rule into your trading plan so that you do not make this mistake again. This is how we grow as traders, by careful and consistent review. Keeping a trading journal is an absolute must for all professional traders. This is why we have developed a cutting edge trading journal for those involved in our DARA trading program.
If you want to be a professional trader you must do what professional traders do. They all keep journals and this is why you must as well! We make it easy for you to review your trades, learn and grow as a trader! This is why we are giving away our amazing Journaling DARA software package for FREE. With this software you are able to review and analyze your trades in great detail. All you have to do is create a free account and download the software package. Click here to access Journaling DARA.
I have learnt over the last number of years trading that there are a handful of things that make traders successful. I found a quote that I would like to share with you that outlines one of the most important, if not the most important thing that allows traders to sustain success in the markets.
“Suffer the pain of discipline, or suffer the pain of regret”
This quote is simple and to the point. Practicing discipline on a daily basis is so important if you are a trader. It simply means that if you are not disciplined, you will not be a successful trader.
It is so important that we do not get caught up in the hussle and bussle of the market. The market is a fast paced and exciting environment to be in. If you are not careful, the excitement can consume you to the point where you experience massive highs in your emotions while trading as well as lows. It is our job as traders to keep our emotional spectrum in check while being involved in the markets. We want the pendulum to be in complete balance. This allows us to look at the markets objectively and not through the lenses of our emotions.
Have you ever wondered what truly makes great traders successful? It has everything to do with the above quote. Great traders have incredible discipline. They have the discipline to take great trading setups but also to stay out of bad ones.
They understand that sometimes the most profitable position is not being in a position at all. Yet they also know when to take action. They become masters and students of the game.
Before you can be a disciplined trader you first need a vision. Why did you start trading in the first place? What drew you to the markets? Do you want to create freedom in your life? Develop and learn a new skill? Whatever the reason is. Be sure that you are clear. Nothing stops progress like a cloudy vision. When you have a vision and see where you are going and what you need to do to get there is when you take the action steps necessary to walk along the path.
Create a vision for your trading and for your life and see where you are going and what you need to do to get there. Then you will take the necessary action steps to bring the goal closer to you.
How do you develop a clear plan to get to your trading goals?
One of the best goals I have set for myself and I recommend that you set as well is… making it a goal to follow the rules of your trading plan everyday. If you can do this one simple thing I guarantee you will see success in the markets. Creating the habit of following your trading plan increases your discipline.
One tool in particular that has helped many traders stay disciplined in the market is the use of algorithmic trading robots. These bots help keep the trader on track by only executing trades that are according to the trading plan.
Where many traders fall short is they do not have the discipline to follow their plans. Even a small deviation in the plan can be detrimental to a trader’s long-term success. Why?
Making small changes to your plan on the fly is trading based on your current emotions at the time. Someone who is disciplined would trade their plan no matter what. A trader making emotional decisions changes the plan from trade to trade and wonders why they are not improving.
Trading with robots helps you to not get caught in the heat of the market. It helps reduce emotional trading. You do not have to question your setup, you just execute because the bot tells you that there is a great setup available. Then overtime by following your plan, your edge presents itself.
Not following a set routine is why most traders are not improving. When you make changes to your trading plan on the fly you are not basing your decisions on concrete rules and data. If you have the data and back testing proof to backup your decisions, then you can make changes to your trading plan. But until then, stick with the rules you have set out for yourself. Only making real changes once you have the proof that the change will benefit you in the long run.
I have learned that keeping your trading plan concise and to the point is most beneficial. By having a focused trading plan you know exactly how to execute each and every position that you take. When your trading plan is focused, it is easier to be disciplined. You know what you are looking for and can execute accordingly.
A trader can have a HUGE advantage by using robots to aid in their trading. Many traders fail due to their poor psychology and mindset. If trading with the assistance of a robot could help you develop the discipline to be a successful trader than it would be a no brainer. That is exactly what robot trading will help you with. Being more disciplined! Allow trading with robots to help you follow your trading strategy!
At Evestin Forex we have developed some pretty great trading robots! We discuss each strategy that we trade in great detail in our FREE ebook. Click the here to download your FREE copy!
In todays post we are going to discuss something near and dear to my successful traders hearts. It is the mindset required to become a profitable trader. There are many attributes that make traders successful but in this post we will narrow down on the two characteristics we believe to be most important.
A certain mindset must be attained in order to succeed in any area of life. Trading is no different. Forex trading requires the fine-tuning of a handful of characteristics in order to be successful. These specific traits will be identified a little later in this post.
But first, I want you to think about something… “Is success for a trader really different than attaining success in any other field of life?” To be a professional sports player, is there a different mindset required than becoming the CEO of a fortune 500 company?
No. The skill set may be different but the mindset for achieving success is transferable across all fields no matter what you are trying to achieve. If you study the lives of successful people in different areas of life you will find a common thread that runs throughout.
People who achieve high levels of success all have one thing in common. No matter the particular area of life they chose to master, they all have a high level of belief in themselves. A confidence in who they are and their ability to achieve what they have set out to achieve.
This is the most important attribute that you need to develop. If you develop an unshakeable belief in yourself there is nothing that can stop you on your journey to success. Why? Because when anything comes against you, you still take action. Because you believe in the end result. You know with total confidence that you will reach your goal so you let nothing stop you. This is the unshakeable attitude you must develop to be a successful trader.
With that being said. There are two particular mindset characterizes that are essential for success in forex trading.
The first is discipline. You must develop a rigid routine that you follow to a tee. Forex trading requires that you execute the same actions day in and day out. You must know how to follow a plan and stick with it. This will ensure your long term success. Where I see many traders fail is not following a strict trading routine. Their emotions sway their actions and this causes inconsistency in the routine. An inconsistent routine is a mess. There is no structure to follow. Lack of structure makes it easier to trade based on your current mental state and emotions.
Since this is what we want to eliminate in our trading we want to ensure that we have a strict trading routine and follow it. Having a solid trading routine makes it easier to have discipline in the first place. You know the action steps that are required of you every day and you execute them.
What is the next attribute that all successful traders have?
You have probably heard about having patience time and time again. It is so important that you develop an attitude of patience when trading the markets. It will ensure your long-term success. How?
When you have patience you wait for the right setups to present themselves to you, you take trades that only meet your trading plan criteria and you do no have the fear of missing out. Patient traders understand that the market has an abundance of opportunities and that if the trade does not look quite right, that there will be another opportunity for them to capitalize on.
Great trades happen often but it takes a patient trader to capitalize on them. Not allowing the emotions of the market reel them into “Okay” setups.
Patient traders play the long game. They understand that trading is not a get rick quick game and that true success in the markets takes time. When you understand that, you do not try to catch every trade. You wait for the perfect trades to present themselves and you execute. Suddenly you are not lured into okay trading setups but you only take pristine setups that perfectly align with your plan.
I cannot stress enough how important these two qualities are to your success as a trader. If you want to learn how to develop these qualities I would recommend doing personal development. This will help you to get into the mindset of success. Patience and discipline are needed to success in any area of life but they are especially important for trading. If you can master these two areas I have no doubt that you will be on your way to consistent and profitable trading.
Trading the markets using trading bots may seem like it is something out of the future but the artificial intelligence (AI) of the newly developed DARA trading advisor will pit humans vs machines this October in Dublin. The capital will see its first ever algorithmic trading event on 24th October at the Shelbourne Hotel. The event's organisers have designed it so that both traders and programmers can learn about the latest advances in AI and financial market trading and to really test just how humans vs machines bear up under pressure.
In a first-of-its-kind event, the Decision-Aiding-Robo-Advisor – otherwise known as DARA – will provide all the information needed for traders to make better-informed decisions about which investments to make and, crucially, which ones to ditch. Although financial traders have been making such decisions for a long time, DARA provides the edge that makes a real difference. The developers plan to showcase just how effective their bot is for traders and investors at the event which will see DARA interacting with real people making the sorts of financial decisions that are made every day.
DARA's CEO, Ivo Luhse, has 13 years experience in trading in the financial markets and five years of experience developing trading bots for the sector. He said:
Humans are awesome, our brains are like a super-computer that can deal with unexpected and complex problems. But we have a poor memory, we can’t multi-task and we’re slow at processing large amounts of data. This is where computers excel. I believe in the future of humans plus a machine.
The way in which trading bots work is by following predetermined trading rules. In the case of DARA, however, it is the way in which the algorithms behind the system optimise outcomes to each individual investor that make all the difference. Essentially, DARA scans all of the data surrounding the financial markets rapidly – something that no individual trader could do. It then assesses the markets for the best trading opportunities and manages trades on behalf of the individual. The showcase event is designed to demonstrate just how much of an advantage deploying a trading bot that has been built around adding value to professional financial trading can offer.
What is unique about the Dublin event is that it will show how DARA is different from any other trading advisory systems. Since DARA is an interactive bot that requires the active input of a trader or investor input, the system allows the individual and the bot to build a relationship and to work together as a team. DARA trades using Trend following, Counter-trend, Momentum, Sentiment, Longer-time frame and Shorter-time frame strategies to make its suggestions. Anyone who has harnessed the power of AI in their daily lives from something as simple as auto-suggest algorithms when surfing the web will be able to grasp the potential of multi-tasking in the background to find the best trading opportunities that the investor always retains control of.
Results from the Humans vs Machines showcase are likely to be exciting and fully demonstrate how trading bots are likely to soon become the norm in the sector. Luhse, who has been heavily involved in developing DARA as well as the Dublin event, went on to add:
It’s not about recreating the brain. It is about using cutting-edge technology to make our lives better.
The algorithmic trading showcase event will take place on 24th October from 6:30 pm at the Shelbourne Hotel at St Stephens Green. Reserve your free tickets below: http://meetu.ps/e/FSdLW/xbBC3/f
DARA is also showcasing in Web Summit 2018 in Lisbon, Portugal from 5th to 8th November as a new ALHA start-up in the fintech sector. This is the largest technology event showcasing the latest innovations in new tech on the planet.