The Sad Condition Of Most Online Traders

Here is the sad condition of most traders…

They are incompetent and they don’t even know it! That might sound harsh but it is the brutal truth. Permit me to explain…

In mastering anything in life, we go through 4 stages.The first is called Unconscious Incompetence. This means that we are incompetent and we don’t even know that we are incompetent! That is actually where most traders are at.

They try lots of different things, lack discipline or a consistent method, flounder around, throw money at the problem, and think that one day they will finally “crack the code”. It rarely happens, which is why 95% of traders are losers.

The second stage is called Conscious Incompetence. This is when you are incompetent and you finally KNOW that you are incompetent. Now we are getting somewhere! After all, knowing that you are incompetent is the first stage in taking serious steps to improve.

It takes a lot of honesty to get to the point where you admit that you need outside help and then go out and seek it. After all, you can’t improve if you don’t think there is anything TO improve!

The third stage is called Conscious Competence. After learning the right methods and principles, you finally become competent in the matter. However, you still need to exert your full concentration in order to maintain that competence.

As a trader, this means you are profitable but it is still a lot of strain and effort to remain so. In another arena, once you have just learned to drive a car, you can definitely do so but it takes all of your mental effort to do it. You can’t simply relax and daydream.

Finally, with still more effort, you reach the state of Unconscious Competence. This means that you have mastered the subject and it is actually effortless. You are great at it and you no longer even have to think about what you are doing.

This is where all the great traders are. And that is why it is often hard to pin them down as to what they do or think that makes them so profitable.

They literally don’t know anymore because they have absorbed successful trading right into their bloodstream. It’s a part of them and they can no longer explain it.

But sadly, the condition of most traders is Unconscious Incompetence, or at best Conscious Incompetence. They either don’t know that they are incompetent, or else they do. Either way, they lose money!

And of course, this state of being leads to confusion. Why? Because the trader is trying hard to learn and improve, but the markets are very bad teachers.

Sometimes the market will reward you with profits when you do the wrong thing (e.g. run your loss for a while) and punish you with a loss when you do the right thing (e.g. place your stop and keep it there).

That means that you end up learning how to do the WRONG things! You get feedback from the markets, but it is usually in terms of profits and losses, and so you learn the wrong lessons from it.

In fact, these are just some of the reasons why most traders either go broke or else give up.

What a trader needs the most is a mentor/coach who KNOWS the right principles of Trading and can teach them. And who can nurture that trader from the place of floundering around blindly to achieving first Conscious Competence, and ultimately Unconscious Competence.

That is precisely what my course, How To Go From Failure To Success In Trading, is designed to do. It teaches you the RIGHT strategies for high-profit Trading gleaned from masters in the field.

It is designed to get you to Mastery as soon as possible and forever end the confusion that many traders are feeling; lacking direction, lacking guidance and worst of all, lacking hope.

If any of this remotely strikes a chord with you, you might wish to invest in How To Go From Failure TO Success In Trading.

It’s designed to do precisely that and to do it FAST. Using the latest cutting edge strategies and secrets. It’s all about taking that “unfair” shortcut to Trading profitability, making the sort of lightening progress that will leave you literally years ahead of other traders…

I absolutely believe that this course will help anyone succeed at Trading, even if they have felt themselves a hopeless “failure” at it before.

Try it for yourself and if you don’t agree… if it is not all I claim it is… just demand your money back and you will get it. No questions asked. And we’ll still part as friends.

I WANT you to be a Trading genius. And that’s why, with your permission, I would like to be a part of making that come true.

Best Wishes,

Asoka Selvarajah

Trading Mentors & How They Can Help You

One of the key things that I have learned from Tony Robbins, the
famous Success Coach, is the need for mentors – role models for
whatever it is that you seek to excel at – including forex trading.

The main reason that people stumble around and fail to do the
best that they are capable of in ANY discipline (not just
Currency Trading) is that they don’t know how to do it and they
often don’t know that they don’t know!

So they stumble around; try this, try that, get a little better,
get a little worse. Maybe even give up, claiming it’s impossible
or a scam.

That’s how many people feel about Trading. “It’s too hard. It’s
for someone else. I’ll never master it.”

But what Tony Robbins teaches is, find a role model or mentor.

That means someone who is already outrageously successful at what
you want to do. Then, if you simply observe what that person is
doing and do the exact same thing, you can achieve success too.

This makes sense to me, and it should make sense to you too.

Think about it. How did you learn to drive? All by yourself alone
in the car, crashing back and forth until you eventually figured
it out?

I think not! Instead you want to… what? A DRIVING INSTRUCTOR!
And what is a driving instructor in essence? That’s right. A
mentor, a coach, a role model.

Although you were nervous at first, you did what he/she told you
to do, listened to the teachings and advice you were given …
and suddenly you could drive! What seemed impossible at first is
now so easy that you often daydream while doing it.

In fact, you may find that many of the things that you have been
highly successful at came about through having a mentor.

Trading is the same. If you can find out what highly successful
traders so, and do the exact same things, then you too can be
successful and make money in Trading.

Why not? Is there some law of the universe singling YOU out for
failure as a trader? Of course not! Don’t even think like that.

So, take my advice and seeker out a trading mentor/coach to take
you to the next level right away.

Actually, my How To Go From Failure To Success In Trading course
is precisely that. A packaged mentor, so to speak. OK, it’s not a
“live” person. Yet, it IS the wisdom distilled from some of the
most successful traders who ever lived – people you do NOT have
access to, now or perhaps ever.

By way of example, I included some of the key principles that one
of my own Trading mentors, the late Robert Krausz (who was
written up in the “New Market Wizards” book) personally gave to
me.

What I am saying is, if you could meet some of the world’s best
traders, THIS is what they would tell you to do. It’s like having
your own mentor/role model right there in your home…

And best of all, the price for my Trading program is nothing like
what you’d pay some of these top trading experts. No, it’s a
bargain in comparison… probably less than the cost of one trade!

Copyright 2013 Asoka Selvarajah . All Rights Reserved.

Forex Trading Forums – What You Must Know

So many people look for forex trading forums to ask for advice, swap tips and get to know other traders. Before you log on to one, it would be beneficial for you to know more about these to be able to distinguish between a good forum and a bad one.

 

Yes, a forex forum can be a good venue for discussion among traders from many different countries, but remember that it can also be much more than this. You can check on the current prices of various foreign currencies in a forex forum. You can also look at the central bank rates of many different currencies, ranging from the Japanese yen, to Great Britain’s pound, to the American dollar.

 

A good forex forum should also show the Foreign Exchange Charts and Rates. This allows traders to know the buying and selling price of each currency. These change very quickly, so it useful to have a chart that shows each currency’s movement.

 

Another piece of information that a forum will have is snippets on the economy of many different countries. Just a quick glance will allow you to know that China’s industrial profits have dipped for the third month during an economic slowdown.

 

You can also check on whether or not core consumer prices in Japan have dropped and whether or not forex forecasts were correct. Another interesting news might be that Korea’s current account surplus has hit a record $5.84 billion. What news you’re interested in will depend on the currencies that you’re trading.

 

Big forex trading forums may even have their own reporters who generate news stories that they think will interest their clientèle. One example could be a story on US dollar durable good orders. Another story could tackle a decision made by the Reserve Bank of New Zealand.

 

Expect a forex trading forum to also impart news about consumer prices in countries like Australia. They may even come up with a summary of key points every month that investors would find useful to check out.

 

Aside from the information that it provides online, companies that host forex trading forums may also provide a slew of other services. These include brokerage and fund licenses aimed at supporting forex brokers. A forex company may also broker advertising through its media partners.

 

Finally, a forex company might offer information technology solutions such as customized email marketing software. Companies who would like to become online brokers may find this software to be very useful.

 

For newcomers or newbies, forex trading may initially look to be very intimidating. This is why people who are interested in forex trading need to seek out like-minded folks in order to form a support network. A good forex trading forum will help a new investor to build such a network, as well as provide them with the information that they need in order to make profitable trades.

 

Keep an eye out on the latest movements in forex trading by visiting a forex trading forum.

Forex Brokers – What You Must Know

If you are a beginner at forex trading, you’ve probably come across numerous articles and materials about forex brokers. What are forex brokers and why do you need them? A broker’s main role is to act as a connection between you and the network of banks trading with one another. Brokers usually deal with several banks that offer different pricing on their currencies. Then, they choose the best pricing option and offer it to their clients.

 

What are the functions of a broker?

 

A broker:

 

  • acts as an adviser who gives essential information to help you make a profit from forex trading, such as recommendations on which trades to make
  • handles foreign currency transactions everyday and keeps himself/herself informed about the necessary data that may affect the value of the currencies
  • provides the “execution only,” or basic service, where the client can use the broker’s trading platform but the broker doesn’t provide any advice and the client has to make decisions and trades on his own
  • provides other types of services, such as advising clients on which trades to make
  • can also make trades for the client, based on the client’s authorization

 

What are the licensing requirements of brokers?

 

The internet and technological advances have made it easy to find brokers. However, not all of them are trustworthy. This is why there are regulation measures to ensure that all transactions are transparent and to reduce the possibility of fraud.

 

In the U.S., the main regulatory bodies are the Security and Exchange Commission (SEC), the National Futures Association (NFA), and the Commodity Futures Trading Commission (CFTC).Check whether your potential broker is licensed with these agencies before you sign up.

 

What are the other qualities that you need to look for in a good broker?

 

A good broker must always be available whenever you need advice or recommendations. In most cases, forex brokerage firms provide 24/7 support to their clients. Check if the broker you are looking to sign up with provides this service. A good broker must also ensure their clients’ protection against fraud and scam by using the latest security measures.

 

What are the steps in opening a forex trading account?

 

Opening a forex trading account is similar to opening an account with a bank. First, you need to choose the type of account you want. Then, you need to submit the necessary paperwork. This varies depending on the broker and they will usually send you the list of forms that you need to fill out and submit.

 

After the broker has received the requirements, your account will be activated and you can start trading.

Even if you’ve found a legitimate brokerage firm who has been very helpful in assisting you learn the ropes of trading, it is not enough to leave all the work to them.

 

It is your responsibility to keep yourself informed about the technology and trends in the forex market because knowledge is still your best protection against dishonest individuals and unscrupulous forex brokers.

Forex Trading Tutorial: How to Prepare for the Trade

Beginners usually look to forex trading tutorials because the idea of trading in the forex market can be daunting. This is especially true if you have no background in finance, accounting, or economics. However, you don’t need to go back to college to be fully equipped to tackle forex trading.

Learn how to talk the talk

Here are the basic terms that you need to be familiar with:

Exchange Rate or Quote

The quote records the value of one currency in terms of another. It is composed of two parts: the pairs and the rate. The base currency (on the left) and the counter currency (on the right) comprises a pair. The exchange rate determines how many units of the counter currency are needed to purchase one unit of the base currency.

For instance, the quote is EUR/USD = 1.2316. This means that you need 1.2316 USD to buy 1 Euro.

Pip

The percentage in point (Pip) represents the basic unit of profit. It is the smallest change in a given exchange rate as it is usually the change in the last decimal point of currencies. Most currencies are written with up to four decimal points except the JPY.

If the exchange rate is 1.2316 (EUR/USD) and it changes to 1.2320, the price ratio increased by 4 pips.

Spread

The spread is the amount of pips between the asking price and the bidding price. If the bid/buy price for EUR/USD pair is 1.2316 and the ask/sell price is 1.2319, the spread is 3 pips.

Brokers use the spread to earn on every trade. Say a trader is paying 1.230 for buying and selling, he may sell the currency for 1.231 or buy it for 1.229. Either way, the trader will make a profit from the trade.

Walk before you run

Many reputable forex brokers will offer a practice or demo account where you can invest your “money” in the market so you get a feel of what trading is like. You can open different accounts and try different trading schemes. This way, you’ll know which strategy would work for you when you are ready to trade for real.

Start running (slowly)

In forex trading, and indeed in other forms of trading, it’s always better to start with money you can afford to live without. If you lost that amount, it won’t be such a difficult pill to swallow.

Use a strategy you are most familiar and successful with and start trading.

Keep learning even when you’re already trading. Be on the lookout for opportunities to gain understanding of the changing trends and trading strategies. Ask other traders for advice and do your own research.

Above all, trade with a clear and level head. Heightened emotions and greed can drive you to make costly mistakes that are difficult to recover from.

These are the steps to help you get started on forex trading. If you know someone who has experience in the trading business, don’t hesitate to ask them for help. After all, you’ll need more than just a forex trading tutorial to be ready for the real thing.