CANDLESTICK STRATEGIES - Candlestick Star pattern

Strategy 1:
Given a great number of different candlestick formations, it would be nearly impossible to gauge the overall profitability of all candlestick strategies in a single study. Instead, we will focus on specific reversal signals that we believe have intuitive value as it relates to market sentiment. In this particular case we will look at both the Morning Star and Evening Star formations as buy-and-sell signals.

A Morning Star formation is a bullish reversal signal for an overall downtrend. Given fairly consistent losses, we see a strongly negative full-bodied first candle. The second candle opens at or below the previous close, trading within a relatively narrow range with the high staying below the midpoint of the first candle. The third candle is strongly positive and closes above the midpoint of the first candle. This tells us that bearish sentiment is unable to push price below previous lows, and risks remain for a reversal in price trends.
morning star

The Evening Star is effectively the opposite of a Morning Star, as price starts in an uptrend and the first candle is strongly positive. The second candle opens above or at the previous close, trading within a fairly narrow range and with its low above the previous bar’s midpoint. The third candle is strongly negative and closes below the first candle’s midpoint. This gives warning that bulls are unable to push price to new heights, and a strongly bearish candle hints at further downside potential through subsequent trade.

Sample chat:
Pin Bar Strategies

morning star

morning star




Leonardo Fibonacci discovered the sequence which converges on phi

Leonardo Fibonacci, discoverer of the Fibonacci series which is related to phi, the Golden ProportionIn the 12th century, Leonardo Fibonacci wrote in Liber Abaci of a simple numerical sequence that is the foundation for an incredible mathematical relationship behind phi.  This sequence was known as early as the 6th century AD by Indian mathematicians, but it was Fibonacci who introduced it to the west after his travels throughout the Mediterranean world and North Africa.

Starting with 0 and 1, each new number in the sequence is simply the sum of the two before it.

0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, . . .

The ratio of each successive pair of numbers in the sequence approximates phi (1.618. . .) , as 5 divided by 3 is 1.666…, and 8 divided by 5 is 1.60.

The table below shows how the ratios of the successive numbers in the Fibonacci sequence quickly converge on Phi.  After the 40th number in the sequence, the ratio is accurate to 15 decimal places.

1.618033988749895 . . .


Compute any number in the Fibonacci Sequence easily!

Here are two ways you can use phi to compute the nth number in the Fibonacci sequence (fn).

If you consider 0 in the Fibonacci sequence to correspond to n = 0, use this formula:

fn =  Phi n / 5½

Perhaps a better way is to consider 0 in the Fibonacci sequence to correspond to the 1st Fibonacci number where n = 1 for 0.  Then you can use this formula, discovered and contributed by Jordan Malachi Dant in April 2005:

fn =  Phi n / (Phi + 2)

Both approaches represent limits which always round to the correct Fibonacci number and approach the actual Fibonacci number as n increases



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Elliott Wave Basic

Elliott Wave Basic interprets market actions in terms of recurrent price structures obedient to the Fibonacci sequence. Basically, Market cycles are composed of two major types of Wave : Impulse Wave and Corrective Wave. For every impulse wave, it can be sub-divided into 5 - wave structure (1-2-3-4-5), while for corrective wave, it can be sub-divided into 3 - wave structures (a-b-c).

Surfer's Waves within Wave

An important feature of Elliott Wave is that they are fractal in nature. 'Fractal' means market structure are built from similar patterns on a larger or smaller scales. Therefore, we can count the wave on a long-term yearly market chart as well as short-term hourly market chart.

See waves within wave:

Rules for Wave Count

Based on the market pattern, we can identify ' where we are' in term of wave count. Nevertheless, as the market pattern is relatively simplistic, there are several rules for valid counts:
Wave 2 should not break below the beginning of Wave 1;
Wave 3 should not be the shortest wave among Wave 1, 3 and 5;
Wave 4 should not overlap with Wave 1, except for wave 1, 5, a or c of a higher degree.
Rule of Alternation : Wave 2 and 4 should unfold in two different wave forms.
Wave forms in Impulse Wave

There are three major types of wave form in Impulse Wave:
(a) Extended Wave

Among Wave 1, 3 and 5, only one should unfolded into extended wave. 'Extension' means the wave is elongated in nature and sub-waves are conspicuous in relation to waves of higher degree.
See extension pattern:

(b) Diagonal Triangle at Wave 5

Sometimes, the momentum at Wave 5 is so weak that the 2nd and 4th sub-waves overlap with each other and evolved into diagonal triangle.
(c) 5th Wave Failure

In some other circumstances, the Wave 5 is so weak than it even cannot surpass the top of the wave 3, causing a double top at the end of the trend.
See diagonal triangle and failure fifth pattern:

Wave Forms in Corrective Wave

Corrective Wave forms are rather complicated, but basically we can categorize them into six major wave forms:

Zig-Zag : abc pattern composed of 5-3-5 sub-wave structure.
Flat : abc pattern composed of 3-3-5 sub-wave structure, with b equals a.
Irregular : abc pattern composed of 3-3-5 sub-wave structure, with b longer than a.
Horizontal Triangle : 5-wave triangular pattern composed of 3-3-3-3-3 sub-wave structure.
Double Three : abcxabc pattern composed of any two from above, linked by x wave.
Triple Three : abcxabcxabc pattern composed of any three from above, linked by two x waves.
See Six Corrective patterns:


The attractiveness of Elliott Wave Analysis is : Three impulse wave forms and six corrective wave forms are conclusive. All we have to do is to identify which wave form is going to unfold in order to predict future market actions. This is a bold statement, needless to say, knowledge of market historical wave patterns and experiences in wave count are of paramount importance


12 Reasons Warren Buffett Is an Incredible Investor

12 Reasons Warren Buffett Is an Incredible Investor and How You Can Learn From Him

Warren Buffett and Charlie Munger -- not to mention Berkshire Hathaway itself -- so we'll be in Omaha, covering the event for Foolish readers that can't make it out this year. In advance of the big day, we'll be counting down on with our annual "12 Days of Berkshire" series.

Here are the 12 reasons why Warren Buffett is one of the best investors of our time -- and how you can learn from him.

12. Warren Buffett knows how to hold stocks for the long term

What Warren does: Buffett knows the best investment wins come from owning great companies for long periods of time.
Consider Wells Fargo  (NYSE: WFC  ) , the bank that has become almost synonymous with Buffett and Berkshire because it's Berkshire's largest stock position. Buffett started buying Wells Fargo in 1989 and has owned it ever since. As of the end of 2013, gains on that position alone had created more than $10 billion in value for Berkshire shareholders.

What you can do: When you do your research and find a great company to buy, be patient and let that company work on compounding your investment over many years. With Wall Street so focused on very short periods of time, there's more opportunity than ever to benefit from time arbitrage. If you have any doubt just contact with the Stock Market Experts

11. Buffett owns up to his mistakes

What Warren does: Ego schmego, Buffett has no problem owning up to his mistakes.
Here's Buffett calling himself out in the most recent letter to Berkshire shareholders:
Most of you have never heard of Energy Future Holdings. Consider yourselves lucky; I certainly wish I hadn't... About $2 billion of the debt was purchased by Berkshire, pursuant to a decision I made without consulting with Charlie. That was a big mistake. Unless natural gas prices soar, EFH will almost certainly file for bankruptcy in 2014. Last year, we sold our holdings for $259 million. While owning the bonds, we received $837 million in cash interest. Overall, therefore, we suffered a pre-tax loss of $873 million. Next time I'll call Charlie. What you can do: Of course it sucks to make a mistake, especially when it costs you money. But some of the best learning opportunities in investing come by learning from mistakes. So resist the urge to sweep your whoopsies under the rug, and instead throw them under the microscope to help you make a better decision the next time around.

10. Buffett knows what he's good at... and leaves the rest to others

What Warren does: Buffett is one savvy so-and-so when it comes to capital allocation -- that is, knowing the best place to invest the cash that Berkshire businesses earn. But Buffett hasn't developed any special knack for managing an operating business.
So Buffett focuses his efforts on capital allocation and delegates day-to-day operating decisions to the managers at the Berkshire subsidiaries.

What you can do: Put in your time and efforts where you can be most valuable. I believeindividual investors that have the talent and interest can beat the market and earn a substantial return for their time invested.
But if you're more dialed in to hand-weaving decorative baskets to sell on Etsy, then you may be best off cashing in on your craftiness and putting most of your investing portfolio into low-cost index funds.

9. Buffett sticks to his circle of competence

What Warren does: Buffett has spent his career developing an intimate knowledge of the finance and consumer goods industries. This gives him an edge when investing in these sectors. Berkshire's portfolio reflects the fact that Buffett largely sticks to these core competencies -- the company's top five holdings include Wells Fargo, Coca-Cola  (NYSE: KO  ) , American Express  (NYSE: AXP  ) , and Munich Re.
What you can do: Don't expect that you're going to be an expert in every industry. While diversification is good, you'll fare better over the long run if you focus your investing in the industries and types of companies that you understand the best.

8. Buffett puts his money where his best ideas are

What Warren does: At the end of 2013, Berkshire Hathaway's stock portfolio was worth $117 billion. A full 55% of that $117 billion was invested in just four stocks: Wells Fargo, Coca-Cola, IBM  (NYSE: IBM  ) , and American Express.

What you can do: Diversification is important, but if you diversify too much, you end up owning a lot of companies that you don't understand well or are able to fully follow. Diversify your portfolio, but put more money behind your best ideas -- those ideas that you've done the most work on, understand the best, and think have the most long-term upside.


7. Buffett can clearly communicate his investing approach

What Warren does: Every year Buffett writes a letter to Berkshire Hathaway's shareholders, sharing both details around Berkshire's results as well as Buffett's deep thoughts on investing. The annual letter is brilliant in the way it shares Buffett's thinking both clearly and simply -- something that's rarely found among public companies.

What you can do: Ask just about any behavioral finance expert how you can improve your investing and you're likely to hear "Keep an investing journal." Getting in the habit of clearly recording your investing thinking -- the "whys" around your investments -- can go a long way toward making you a better investor.

6. Buffett knows the best time to buy is... when nobody else is

What Warren does: One of the classic Buffett saws is "Be fearful when others are greedy, and be greedy when others are fearful." But it's more than just an overused quote -- it's actually the way Buffett invests.
There's much proof of Buffett practicing what he preaches, but you needn't look further than the October 2008 op-ed he wrote in The New York Times, "Buy American. I Am." October 2008 wasn't the bottom of the crash, but it was pretty dang close.

What you can do: In terms of replicating what Buffett does, this may be the most difficult thing I've brought up thus far. The psychological pull of the herd is incredibly powerful, and so doing the exact opposite of what everyone else can be a Herculean task. But the best buys you can make can be found when everybody else is pounding the sell button.

5. Buffett knows what it means to be patient

What Warren does: Buffett stockpiles cash. At the end of 2013, there was nearly $50 billion in cash on Berkshire Hathaway's balance sheet. Buffett would rather have much of that invested and working for investors, but he's willing to sit on impressive amounts of cash until he can find an idea really worth investing in.

What you can do: We're thinking long-term, so this isn't a sprint, it's a marathon (if not an ultramarathon). If you're finding great investment opportunities, by all means, invest in them. But don't throw money at investments simply because you have the cash. Be willing to sit on cash until you can put it into investments that are truly worthwhile.

4. Buffett knows that you've got it easier than him

What Warren doesn't do: Buffett doesn't spend much time investing in small companies. With a market capitalization of more than $300 billion, investing in small companies won't move the needle for Berkshire.
However, Buffett knows that some of the best returns are available in smaller companies and to investors with far less capital than Berkshire. Here's what Buffett's said:
It's a huge structural advantage not to have a lot of money. I think I could make you 50% a year on $1 million. No, I know I could. I guarantee that. What you can do: Think small! In terms of growth opportunity, it's not hard to realize that a $500 million company has a lot more potential upside than a $100 billion company. That doesn't mean small companies will automatically succeed -- many, in fact, fail miserably. But a well-chosen small company can obliterate the returns of a plodding large cap.

3. Buffett learns from others

What Warren does: Buffett's investing career began in value-investing guru Benjamin Graham's classroom. As a voracious reader, Buffett continued to learn from many other investing luminaries, Phil Fisher not least among them. Buffett has also learned an enormous amount from his partner-in-crime Charlie Munger.
What you can do: Humility can go a long way when it comes to investing. Being a lifetime learner and staying open-minded can help you continue to grow as an investor. There are lots of great books on investing -- from Ben Graham's Intelligent Investor to Peter Lynch's One Up On Wall Street -- but your investing can improve from insights in many other fields from business and psychology to computer science and physics.

2. Buffett doesn't get hung up on stock market forecasts

What Warren does: In short, he ignores the oodles of short-term market predictions. In fact, he put it much more forcefully in his 1992 letter to shareholders;
We've long felt that the only value of stock forecasters is to make fortune tellers look good. Even now, Charlie and I continue to believe that short-term market forecasts are poison and should be kept locked up in a safe place, away from children and also from grown-ups who behave in the market like children. What you can do: Follow Buffett's lead and ignore short-term market forecasts. These one-year market guesses are so prevalent because news outlets think they draw viewers and readers -- sadly, they do -- and because the forecasters themselves bear little risk -- if they get it right, they'll be hailed as a genius, while if they get it wrong, nobody will even remember.

1. Buffett maintains a healthy diet

What Warren does: Ok, I'm kidding. Even though Buffett has reached the impressive age of 83, it's no secret that he doesn't take great care of himself. Buffett is known for his love of cheeseburgers and Cherry Cokes, and during the annual Berkshire Hathaway shareholder meeting he does impressive work on an array of See's Candies (mostly the ridiculously delicious peanut brittle).
What you can do: Warren Buffett is a great investor, but maybe we don't have to copy everything he does. But then again, maybe cheeseburgers and Cherry Cokes are a key contributor of his success. Perhaps we need to do some more research...
The greatest thing Warren Buffett ever said

Warren Buffett has made billions through his investing and he wants you to be able to invest like him. Through the years, Buffett has offered up investing tips to shareholders of Berkshire Hathaway.

10 Ways to Get Rich - Warren Buffett's


Warren Buffett's -

With an estimated fortune of $62 billion, Warren Buffett is the richest man in the entire world. In 1962, when he began buying stock in Berkshire Hathaway, a share cost $7.50. Today, Warren Buffett, 78, is Berkshire's chairman and CEO, and one share of the company's class A stock worth close to $119,000. He credits his astonishing success to several key strategies, which he has shared with writer Alice Schroeder. She spend hundreds of hours interviewing the Sage of Omaha for the new authorized biography The Snowball. Here are some of Warren Buffett's money-making secrets -- and how they could work for you.

1. Reinvest Your Profits: When you first make money in the stock market, you may be tempted to spend it. Don't. Instead, reinvest the profits. Warren Buffett learned this early on. In high school, he and a pal bought a pinball machine to put in a barbershop. With the money they earned, they bought more machines until they had eight in different shops. When the friends sold the venture, Warren Buffett used the proceeds to buy stocks and to start another small business. By age 26, he'd amassed $174,000 -- or $1.4 million in today's money. Even a small sum can turn into great wealth.

2. Be Willing To Be Different: Don't base your decisions upon what everyone is saying or doing. When Warren Buffett began managing money in 1956 with $100,000 cobbled together from a handful of investors, he was dubbed an oddball. He worked in Omaha, not Wall Street, and he refused to tell his parents where he was putting their money. People predicted that he'd fail, but when he closed his partnership 14 years later, it was worth more than $100 million. Instead of following the crowd, he looked for undervalued investments and ended up vastly beating the market average every single year. To Warren Buffett, the average is just that -- what everybody else is doing. to be above average, you need to measure yourself by what he calls the Inner Scorecard, judging yourself by your own standards and not the world's.

3. Never Suck Your Thumb: Gather in advance any information you need to make a decision, and ask a friend or relative to make sure that you stick to a deadline. Warren Buffett prides himself on swiftly making up his mind and acting on it. He calls any unnecessary sitting and thinking "thumb sucking." When people offer him a business or an investment, he says, "I won't talk unless they bring me a price." He gives them an answer on the spot.

4. Spell Out The Deal Before You Start: Your bargaining leverage is always greatest before you begin a job -- that's when you have something to offer that the other party wants. Warren Buffett learned this lesson the hard way as a kid, when his grandfather Ernest hired him and a friend to dig out the family grocery store after a blizzard. The boys spent five hours shoveling until they could barely straighten their frozen hands. Afterward, his grandfather gave the pair less than 90 cents to split. Warren Buffett was horrified that he performed such backbreaking work only to earn pennies an hour. Always nail down the specifics of a deal in advance -- even with your friends and relatives.

5. Watch Small Expenses: Warren Buffett invests in businesses run by managers who obsess over the tiniest costs. He one acquired a company whose owner counted the sheets in rolls of 500-sheet toilet paper to see if he was being cheated (he was). He also admired a friend who painted only on the side of his office building that faced the road. Exercising vigilance over every expense can make your profits -- and your paycheck -- go much further.

6. Limit What You Borrow: Living on credit cards and loans won't make you rich. Warren Buffett has never borrowed a significant amount -- not to invest, not for a mortgage. He has gotten many heart-rendering letters from people who thought their borrowing was manageable but became overwhelmed by debt. His advice: Negotiate with creditors to pay what you can. Then, when you're debt-free, work on saving some money that you can use to invest.

7. Be Persistent: With tenacity and ingenuity, you can win against a more established competitor. Warren Buffett acquired the Nebraska Furniture Mart in 1983 because he liked the way its founder, Rose Blumkin, did business. A Russian immigrant, she built the mart from a pawnshop into the largest furniture store in North America. Her strategy was to undersell the big shots, and she was a merciless negotiator. To Warren Buffett, Rose embodied the unwavering courage that makes a winner out of an underdog.

8. Know When To Quit: Once, when Warren Buffett was a teen, he went to the racetrack. He bet on a race and lost. To recoup his funds, he bet on another race. He lost again, leaving him with close to nothing. He felt sick -- he had squandered nearly a week's earnings. Warren Buffett never repeated that mistake. Know when to walk away from a loss, and don't let anxiety fool you into trying again.

9. Assess The Risk: In 1995, the employer of Warren Buffett's son, Howie, was accused by the FBI of price-fixing. Warren Buffett advised Howie to imagine the worst-and-bast-case scenarios if he stayed with the company. His son quickly realized that the risks of staying far outweighed any potential gains, and he quit the next day. Asking yourself "and then what?" can help you see all of the possible consequences when you're struggling to make a decision -- and can guide you to the smartest choice.
10. Know What Success Really Means: Despite his wealth, Warren Buffett does not measure success by dollars. In 2006, he pledged to give away almost his entire fortune to charities, primarily the Bill and Melinda Gates Foundation. He's adamant about not funding monuments to himself -- no Warren Buffett buildings or halls. "I know people who have a lot of money," he says, "and they get testimonial dinners and hospital wings named after them. But the truth is that nobody in the world loves them. When you get to my age, you'll measure your success in life by how many of the people you want to have love you, actually do love you. That's the ultimate test of how you've lived your life."

20 Things To Be A Successful Trader

Forex has caused large losses to many inexperienced and undisciplined traders over the years. You need not be one of the losers. Here are twenty forex trading tips that you can use to avoid disasters and maximize your potential in the currency exchange market.

1. Know yourself. Define your risk tolerance carefully. Understand your needs.

To profit in trading, you must make recognize the markets. To recognize the markets, you must first know and recognize yourself. The first step of gaining self-awareness is ensuring that your risk tolerance and capital allocation to forex and trading are not excessive or lacking. This means that you must carefully study and analyze your own financial goals in engaging forex trading.

2. Plan your goals. Stick to your plan.

Once you know what you want from trading, you must systematically define a timeframe and a working plan for your trading career. What constitutes failure, what would be defined as success? What is the timeframe for the trial and error process that will inevitably be an important part of your learning? How much time can you devote to trading? Do you aim at financial independence, or merely aim to generate extra income? These and similar questions must be answered before you can gain the clear vision necessary for a persistent and patient approach to trading. Also, having clear goals will make it easier to abandon the endeavor entirely in case that the risks/return analysis precludes a profitable outcome.

3. Choose your broker carefully.

While this point is often neglected by beginners, it is impossible to overemphasize the importance of the choice of broker. That a fake or unreliable broker invalidates all the gains acquired through hard work and study is obvious. But it is equally important that your expertise level, and trading goals match the details of the offer made by the broker. What kind of client profile does the forex broker aim at reaching? Does the trading software suit your expectations? How efficient is customer service? All these must be carefully scrutinized before even beginning to consider the intricacies of trading itself.Please refer to our forex broker reviews to find a reliable broker that suites your trading style.

4. Pick your account type, and leverage ratio in accordance with your needs and expectations.

In continuation of the above item, it is necessary that we choose the account package that is most suited to our expectations and knowledge level. The various types of accounts offered by brokers can be confusing at first, but the general rule is that lower leverage is better. If you have a good understanding of leverage and trading in general, you can be satisfied with a standard account. If you’re a complete beginner, it is a must that you undergo a period of study and practice by the use of a mini account. In general, the lower your risk, the higher your chances, so make your choices in the most conservative way possible, especially at the beginning of your career.

5. Begin with small sums, increase the size of your account through organic gains, not by greater deposits.

One of the best tips for trading forex is to begin with small sums, and low leverage, while adding up to your account as it generates profits. There is no justification to the idea that a larger account will allow greater profits. If you can increase the size of your account through your trading choices, perfect. If not, there’s no point in keeping pumping money to an account that is burning cash like an furnace burns paper.

6. Focus on a single currency pair, expand as you better your skills.

The world of currency trading is deep and complicated, due to the chaotic nature of the markets, and the diverse characters and purposes of market participants. It is hard to master all the different kinds of financial activity that goes on in this world, so it is a great idea to restrict our trading activity to a currency pair which we understand, and with which we are familiar. Beginning with the trading of the currency of your nation can be a great idea. If that’s not your choice, sticking to the most liquid, and widely traded pairs can also be an excellent practice for both the beginner and the advanced traders.

7. Do what you understand.

forextime-malaysiaSimple as it is, failure to abide by this principle has been the doom of countless traders. In general, if you’re unsure that you know what you’re doing, and that you can defend your opinion with strength and vigor against critics that you value and trust, do not trade. Do not trade on the basis of hearsay or rumors. And do not act unless you’re confident that you understand both the positive consequences, and the adverse results that may result from opening a position.
8. Do not add to a losing position.

While this is just common sense, ignorance of the principle, or carelessness in its employment has caused disasters to many traders in the course of history. Nobody knows where a currency pair will be heading during the next few hours, days, or even weeks. There are lots of educated guesses, but no knowledge of where the price will be a short while later. Thus, the only certain value about trading is now. Nothing much can be said about the future. Consequently, there can be no point in adding to a losing position, unless you love gambling. A position in the red can be allowed to survive on its own in accordance with the initial plan, but adding to it can never be an advisable practice.

9. Restrain your emotions.

Greed, excitement, euphoria, panic or fear should have no place in traders’ calculations. Yet traders are human beings, so it is obvious that we have to find a way of living with these emotions, while at the same time controlling them and minimizing their effect on our lives. That is why traders are always advised to begin with small amounts. By reducing our risk, we can be calm enough to realize our long term goals, reducing the impact of emotions on our trading choices. A logical approach, and less emotional intensity are the best forex trading tips necessary to a successful career.

10. Take notes. Study your success and failure.

An analytical approach to trading does not begin at the fundamental and technical analysis of price trends, or the formulation of trading strategies. It begins at the first step taken into the career, with the first dollar placed in an open position, and the first mistakes in calculation and trading methods. The successful trader will keep a diary, a journal of his trading activity where he carefully scrutinizes his mistakes and successes to find out what works and what does not. This is one of the most importance forex trading tips that you will get from a good mentor.

11. Automate your trading as much as possible.

We already noted the importance of emotional control in ensuring a successful and profitable career. In order to minimize the role of emotions, one of the best of courses of action would be the automatization of trading choices and trader behavior. This is not about using forex robots, or buying expensive technical strategies. All that you need to do is to make sure that your responses to similar situations and trading scenarios are themselves similar in nature. In other words, don’t improvise. Let your reactions to market events follow a studied and tested pattern.

12. Do not rely on forex robots, wonder methods, and other snake oil products.

Surprisingly, these unproven and untested products are extremely popular these days, generating great profits for their sellers, but little in the way of gains for their excited and hopeful buyers. The logical defense against such magical items is in fact easy. If the genius creators of these tools are so smart, let them become millionaires with the benefit of their inventions. If they have no interest in doing as much, you should have no interest in their creations either.

13. Keep it simple. Both your trade plans and analysis should be easily understood and explained.

Forex trading is not rocket science. There is no expectation that you be a mathematical genius, or an economics professor to acquire wealth in currency trading. Instead, clarity of vision, and well-defined, carefully observed goals and practices offer the surest path to a respectable career in forex. To achieve this, you must resist the temptation to overexplain, overanalyze, and most importantly, to rationalize your failures. A failure is a failure regardless of the conditions that led to it.

14. Don’t go against the markets, unless you have enough patience and financial resilience to stick to a long term plan.

In general, a beginner is never advised to trade against trends, or to pick tops and bottoms by betting against the main forces of market momentum. Join the trends so that your mind can relax. Fight the trends, and constant stress and fear will wreck your career.

15. Understand that forex is about probabilities.

Forex is all about risk analysis and probability. There is no single method or style that will generate profits all the time. The key to success is positioning ourselves in such a way that the losses are harmless, while the profits are multiplied. Such a positioning is only possible by managing our risk allocations in accordance with an understanding of probability and risk management.

16. Be humble and patient. Do not fight the markets.

Recognize your failures, and try to accommodate them if they can’t be eliminated completely. Above all, resist the illusion that you somehow possess the alchemist’s stone of trading. Such an attitude will surely be ruinous on your career eventually.

17. Share your experiences. Follow your own judgment.

While it is a great idea to discuss your opinion on the markets with others, you should be the one making the decisions. Consider the opinions of others, but make your own choices. It is your money after all.

18. Study money management.

Once we make profits, it is time to protect them. Money management is about the minimization of losses, and maximization of profits. To ensure that you don’t gamble away your hard-earned profits, to “cut your losses short, and let profits ride”, you should keep the bible of money management as the centerpiece of your trading library at all times.

19. Study the markets, fundamentals, and technical factors leading the price action.

pepperstone-malaysiaThat we have placed this so low in the list should not surprise the experienced trader. Faulty analysis is rarely the cause of a wiped-out account. A career that fails to begin is never killed by the consequences of erronerous application or understanding of fundamental or technical studies. Other issues that are related to money management, and emotional control are far more important than analysis for the beginner, but as those issues are overcome, and steady gains are realized, the edge gained by successful analysis of the markets will be invaluable. Analysis is important, but only after a proper attitude to trading and risk taking is attained.

20. Don’t give up.

Finally, provided that you risk only what you can afford to lose, persistence, and a determination to succeed are great advantages. It is highly unlikely that you will become a trading genius overnight, so it is only sensible to await the ripening of your skills, and the development of your talents before giving up. As long as the learning process is painless, as long as the amounts that you risk do not derail your plans about the future and your life in general, the pains of the learning process will be harmless.