Explain Trading Simply

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0FXTrader0

Albert Einstein: If you can't explain it simply, you don't understand it well enough.

Trading: is to warehouse risk for the shortest possible amount of time. Your best trade will be when profit is quickly hit (relative to trading time frame) your worst trade will be held for a long period of time ultimately ending in loss.
 
Try to profit from something that you saw on a relatively ambiguous (the closer to the right-hand edge the more ambiguous) price chart.
 
Mentioning price charts I have disposed of them. If watching the market all day and see price trade from 00 to 60 with a correction between 60/35 the chart offers no greater insight than what was observed on the bid/ask window. Greater trade conviction can be obtained from noticing speed of moves.
 
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I am of the opinion rightly or wrongly that a sizable amount of price movement over the course of a normal day has as its intent to trap and hold volume. So, the question is are you seeing the early stages of an extension in price that you can profit from or are you being drawn into a situation wherein after having entered price is capped and you are trapped. I'm not sure bid/ask windows will help with that.
 
Bid ask window wont help -the only way to know if market trapping is to get trapped take a small as possible loss then catch the flush.
 
A lot of traders don't realise you have to give (loses) to get (profits)
 
I agree. Your worst trade can help you to learn more about trading and you must cover your losses to earn well in trading.
 
If a trader wants to be successful and earn more and maximum money with trading then he should different stratgies and have a good plan.
 
Markets do either two things 1. Mean revert 2. Trend. Any strategy need to be able to adapt to both conditions.
 
Swing trading strategies and grail quests don't seem to work/last. Scalping from the gut has better strike rate. Not saying traders can't find grail systems but it's not easy.
 
Trading is like gambling to me. Even after serious assumptions and research, things can turn around and you can win or lose it all. But for me it has always been worth it.
 
Trading: The optimistic belief that one can predict the next move of a market better than 100,000 other traders, many sat at high speed terminals direct linked to the exchange trading huge accounts, or advised by the research products of highly paid quants. With the objective of taking more cash off them than they take off you.
 
kevinberry said:
Logics and facts are what matters. Emotional decisions are not most welcome in trading.
Click to expand...
Logic and facts are already priced in to the market, by people getting and processing change faster than a retail trader can. Markets seemingly irrational movements ("noise" on a chart) are due to the behavior of crowds, predicting these movements with intuition or emotion or whatever may be more likely to produce results.
 
If we understand something well, we would be able to explain it to others easily. However, some people do not explain things that well. On the other hand, some people explain things so easily that other people understand things even better than him. This is what my experience says.
 
An attempt to profit from the fragility of price that is seen within a leveraged, relatively efficient working environment.
 
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