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10/44
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Successful trading comes from mastering your mind and your thoughts. Let's talk about the three most common psychological mistakes traders make. FOMO TRADING
FOMO is an acronym for fear of missing out. The FOMO trader thinks that this trade could be the one and if I miss this trade there may not be an opportunity like this one. Of course, there's going to be more opportunity around the corner but although it sounds silly and obvious the reality is that this type of thinking affects so many traders mainly because they don't even realize it's affecting them and it is a huge problem because it can cause you to do 2 things.
  • to take every trade you see even if it' is not that good of a trade setup.
  • to increase your position size on a particular trade because if this trade does end up being right then why would you only want to make a few hundred or a few thousand bucks on it.

But what happens when this trade turns into a losing trade and now you have tons of your capital invested and are sitting on a huge loss that will be almost impossible to come back from. This can be a huge problem. If this fear of missing out is something you struggle with then here is my solution for you.
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SibinSebastian1 avatar

interesting

Verona888 avatar

Well done!)

Kapliy95 avatar
Kapliy95 7 Sep.

All right!

killer195175 avatar

Thank you all for your comments and love. I appreciate it. I shall be writing more so that we can all benefit from the wisdom in trading world.

mariailkiv avatar
mariailkiv 27 Oct.

good job

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3/29
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Did you know you can win 65% or even 80% of the time, but still lose all your trading account?
Did you know you can make money while winning only 40% or even 25% of the time?
Regardless of your strategy or trading approach, you must incorporate the power of mathematics into it.
Think, for example, of blackjack in casinos. They do not get stressed if a player wins a large hand against the house, or if they have a losing day. Why is that? Casinos know the odds are in their favor and that in the long run they'll win and profit consistently.
This very same concept should be applied to trading. Do not let a single trade unsettle you and affect your mindset.
This is what you must know if you want to succeed and keep profitable over hundreds or thousands of trades: risk of ruin with fixed fractional position sizing.
First and foremost, it is of paramount importance to make the distinction between fixed position size model and fixed fractional position size model, and why you should be using the latter model, over the former, before diving into the realm of risk of ruin.
Fixed Position Size Model VS Fixed Fractional Position Size Model
While there are many money management models apart fro…
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FxMidaso avatar
FxMidaso 10 Jan.

good article.

jmdv avatar
jmdv 10 Jan.

The risk of ruin really gave me something to think about! One must always have that in mind.
This really helps in working on a strategy. Good job !

Skif avatar
Skif 11 Jan.

Excellent article, risk model like most !!!

AlligatorEffect avatar

Thank you for the comments!

babonasfx avatar
babonasfx 26 Jan.

mne nravitsia vase statja

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37/47
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The main problem, in my opinion, that all forex traders are facing especially to the new ones is whether the positions they have opened will cause their account to blown up – and they end up losing all the capital they have. Some traders, after having their account blown up, will search in the internet new techniques or indicators to improve their technical analysis. Some will attend classes; some will buy trade signals or custom indicators. That means these traders don’t want to give up yet. But there is an easy way (that I am about to share) to avoid you losing all your capital when all floating positions being stopped out by the broker. It is not about your technical analysis or indicators. The problem with indicators, they are using previous data to predict the future movement of the market. It is like guessing how to move forward by looking at the back. That is why, sometimes it works and sometimes it doesn't. The key to avoid from blowing up your account is simple – position sizing – a topic that is rarely discussed by forex traders. You need to determine how many lots you want to trade and how many pips you want to take. Let me share how to do it. First of all, you need to h…
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29/51
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As a trader you are constantly looking for the "Holy Grail" in FX trading, however, the truth is that no system is 100% correct all the time. It could sound like a cliché but the markets are only 100% right all the time. The "Holy Grail" for all traders should be a robust money-management of which I would like to say to you more in this article.My personal money-management is comprising 3 most important elements:Risk-managementA large number of traders have a problem with risk-management, and I think that this element is key if you want to be a profitable trader for the rest of your life. Risk-management is about how much you should risk per trade, because trading is about possibilities and probabilities. Notably in FX markets, we have millions of variables that can change the direction of trends, and since you should not risk all your trading capital on any single trade, because you could be wiped out on account of poor risk-management.So how much you should risk per trade, never more than 10% on any single trade if you are an advanced trader who has been trading profitably let us say for over 5 years. Rookies should risk from 1%-2% per trade. I personally risk 3%-5% and sometimes…
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SpecialFX avatar
SpecialFX 21 Feb.

Agree with all the point you make, and this " I do not believe in day-trading, it is Woodoo in my opinion" made me smile, because I also don't believe in day-trading in the long run :)

PavelKarizek avatar

Thank you for your kind words! :-)

Tibika avatar
Tibika 27 Feb.

Nice article, mate. I just think it needs a bit of spicing up :) The content is good and useful, and IMHO, you deserve a better position in the standings - you should try to work on the presentation to popularize the articles a bit :) Good luck

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3/30
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One of the biggest misconceptions novice traders have, is to think that trade entries are the only element worth considering, and the only factor that will decide if the trade is profitable or not. They often pay little attention to exit strategies and even less to money management. Successful traders focus on money management and risk control first, while unsuccessful ones devote their full attention to trying to find the perfect entry. This article will provide you with a sound and proven money management system, which will allow you to trade consistently, always taking into consideration the underlying market conditions. Correctly calculating position size based on volatility is a key skill to have if you want to succeed in trading. At the end of the article there's a link to download this system. _________________________________________________________► The adaptability of cockroaches and why you should be like one Cockroaches are one of the most adaptable creatures on our planet, and they've been around for 250 million years. The reason why they were able to survive in different climates and environments is because they have simple behaviour patterns which can be adapte…
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fprophet avatar
fprophet 6 Dec.

hi - I really liked your Money Management Article & webinar.
Personally I like using Fibonacci ratios based on the size of the signal bar to calculate TP & SL but I'm going to try using ATR levels as you have suggested.

SpecialFX avatar

Thanks prophet :) Feel free to send me a private message if you need help using ATR and/or my calculator.

wh_ avatar
wh_ 27 Mar.

SpecialFX - great article. How would you adjust your formula if the traded currency pair did not include your account currency. i.e. from your example, say the traded pair was AUD/JPY? Would you first convert JPY/USD then multiply this result by USD/AUD?

weien avatar
weien 29 Oct.

Hi SpecialFx, I tried to download the XLS file but the download link already broke... appreciate if you can renew the file link... thank you very much.

TadCary avatar
TadCary 25 Feb.

This is great MM strategy. But using ATR will give you constantly changing SL/TP, it's not so easy to use. For example we had huge market swing, by ATR you put wide SL/TP, after swings goes calm period, and your SL/TP just don't work. To solve this problem I use MIN/MAX channel, and calculate SL/TP by its width. For example SL = 0.25, TP = 1,0 of channel width. This approach work better for ranging market that we have now. Maybe I've invented weel but it works ok in my vjForex algos.

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