Forex Trading, Mini Accounts, Online Forex Trading System

Profitable trading is the result of the trader having their business in order in three primary areas. These are the system, risk and money management rules, and the trading psychology. Trading Psychology means the big 3: discipline, confidence and consistency.

Of these, trading psychology is of the greatest priority in order to ensure that the other two are fully utilized. A good system and rules are of limited value when they are not followed. To make the most of your system and your rules, and to do so in a manner that is not through sheer will and brute force, it takes all of the Big 3: confidence, discipline and consistency in that order.

It is almost impossible to stick to your rules and your system for any length of time without confidence in your system. A trader may be able to stick to their system for a short while simply by focusing on it, but confidence and discipline are often lost quickly once a handful of losing trades occurs.

The temptation to deviate from their system and second-guess it can be very strong when a string of losses occurs, especially for the trader that has not established a solid confidence in their system. The natural impulse to avoid the pain is great and only grows with each subsequent loss. Faith in the system drops each time another loss occurs, even if the loss came to be from the deviation from the system. In this situation, anxiety, fear and doubts tend to be very strong.

If this circumstance has occurred, then what is a trader to do to remedy it?

Expectations and reality are the source of much in trading psychology. When expectations are not met by reality, frustration sets in. When a person doesn’t know what to expect, then anxiety set in. A person can have confidence when they know what to expect and what to do. How can a person be confident when they don’t know, or worse yet, when their most immediate reference point is the recent and very painful losses?

Since trading is an activity where losing trades will occur, the best way to establish confidence is to have a way to know what to expect - from the trading system. How can you this be done? Proper system analysis and evaluation of the system metrics allow the trader to know what to expect and what not to expect. The metrics give one a realistic and measured look at the capabilities and limitations of a system, particularly how many losing trades might be encountered during an overall profitable period of time. The metrics are of particular help with trading psychology in that the discipline becomes easy now that realistic expectations are set and establish a level of confidence.

Tracking of the metrics then leads to consistency and facilitates continuous improvement. When a trader begins the practice of analyzing their system and tracking their metrics, this often is where major breakthroughs occur. This practice frequently marks the turnaround point for most traders as it leads very naturally to consistency, confidence and discipline. When it comes to trading psychology, backtesting alone only helps so much, and that is why it is critical that a trader properly analyze their system and track their metrics.

Proper analysis that yields meaningful and useful information is very worth while, yet can be a chore. To get your own user-friendly tool to perform trading system analysis, plus track your metrics to help with your confidence, discipline and consistency, go to http://insideouttrading.com/tpa/ccandd.html

Lots of people have managed to find a profitable forex trading system, either by testing out and experimenting with different systems themselves or by learning about a system from other traders. However many of these same people only stick to this one system, which can be very risky.

It’s a risky strategy because in the long-term there is no guarantee that a system that appears to be generating profits at the moment will still be making money in years to come when trading conditions may change. It also means that as a trader you are failing to evolve and adapt to the markets.

The best thing you can do is to keep tweaking your existing system so that it remains profitable, but you should keep testing out new systems so you have an additional strategy you can trade. If this new system is profitable you can increase your overall profits and you will ensure that you also have a back-up system you can use in case your existing one starts losing money.

Another reason why you should pursue additional strategies is because it’s all too easy to stick rigidly to one specific time frame. For instance there are lots of forex traders who like to scalp the markets all through the day using 1 minute and 5 minute charts, and conversely there are long-term traders who like to take positions based on the 4 hour chart, the daily chart, or even the monthly chart.

These traders will often find that if they can generate profits on one time frame, then they should also have the ability to generate returns using other time frames as well. This is exactly what I myself have been doing just recently.

I have a system that is based on the 4 hour and daily charts which performs very well for me in general, but having read the various forex forums and purchased a few forex courses from some respected traders, I have now tested and developed my own systems that are based on much shorter time frames as well. So therefore I now have a couple of short-term strategies I can use on the occasions when my longer term strategy is failing to generate any good set-ups.

So the point I want to get across is that if you want to increase your forex trading profits, you need to stay one step ahead. Develop your own profitable system first of all and keep tweaking it to ensure it remains profitable, and then look at developing additional systems as well. These can act as a back-up if you so wish but you can also use them in conjunction with your other systems to maximize your gains.

James Woolley runs a forex blog which features a review of Forex Trading Made EZ, the popular short-term trading system, and lots of free tips and strategies relating to forex trading including the exact 4 hour trading strategy that James Woolley uses to trade the markets.

In order to understand what options are and how they work, we need to understand some of the terminology surrounding options.

An option is basically a contract that gives the holder the right (i.e. can choose to), but not the obligation (i.e. not have to), buy or sell a fixed quantity of shares, on or before a given date.

This right can be exercised if the holder wishes to or not as the case may be if it is not in the holder’s interest to do so. For our purpose we are talking about options in the financial markets as opposed to options on houses, cars or other assets and traded on the financial exchanges.

Basically there are 2 types of options:

A CALL option is an option to BUY shares.
A PUT option is an option to SELL shares.

A CALL option generally GOES UP in price if the underlying shares goes UP. A PUT option generally GOES UP in price if the underlying shares goes DOWN.

An example of an option might be to buy Microsoft shares at $25.00 and the market price is $25.00 and the option cost is say..$1.00. If the share price of Microsoft goes up to say $30.00 then the option price may shoot up to $6.00 for example. The option could be exercised and the holder would make an instant profit by selling at $30.00 which he acquired at $25.00 via the option. The option would have reflected the $5.00 increase in the price of the underlying shares.

The initial outlay for the option is obviously less than buying the underlying shares outright and therefore the percentage gains for the initial outlay is considerably more i.e. $5 gain for an initial outlay of $1 as opposed to $5 gain for an initial outlay of $25. But beware that this a double edge sword and can work against the buyer too, but subject to the maximum loss of the premium (the amount paid for the option).

The buyer cannot lose more than the original cost of the option and this is an attractive proposition for investors. One use of options therefore is to use them as a low cost way to take advantage of expected movements in individual shares or stockmarkets as a whole.

Buying options means that you do not need to buy them with just a view of exercising them. You can instead simply sell them in the market if the price moves in your favor.

An advantage of using options is that the brokerage costs are confined to just the value of the option. You do not necessarily have to find the capital (or the underlying stock) to purchase stock from (or sell to) the person on the other side of the contract.

Also not all stocks will be suitable as options, so there is a natural selection process to eliminate the non suitable stocks. Options should be used with a view to the management of risk. The most prominent users of options are companies and institutions, whose objectives include hedging of positions against adverse movement of their portfolios.

A hedge is a low-cost “insurance” that helps to balance the counter movement of the underlying instrument. Insurance in this case means the transferring of risk from one party to another. Just as in domestic insurance, the option buyer pays a premium for the “protection” of the shares should the unexpected occurs. For instance, should the shares go down rather than up, the options transaction would compensate for the loss of the underlying. So options can provide a mechanism for absorbing risk.

What needs to be clearly understood by the potential investor in the options market is that options have quite different characteristics to the normal share market and should be bought and sold using different techniques. To regard options as simply a geared way of profiting from a movement in price of the underlying security is to court disaster.

The author has been trading stocks for over 8 years and has a passion about stock markets and technical analysis. To find out more about the recommended options course, visit this website: http://www.optionstradingology.com

In order to get to grips with the options market, it is necessary to understand the basic options terminology.

An option is basically a contract that gives the holder the right (i.e. can choose to), but not the obligation (i.e. not have to), buy or sell a fixed quantity of shares, on or before a given date. This right can be exercised if the holder wishes to or not as the case may be if it is not in the holder’s interest to do so.

The holder of the option would only use that right when the price of the option moves beyond the fixed “exercise price” plus the cost of the option, then the option can be sold at a profit, or alternatively it can be exercised. If not, since there is no obligation to exercise the right, the option may be left to expire and the buyer would forfeit his premium (or cost of the option).

An option is more valuable the further away it is to the expiry date, since there is greater probability of a profitable movement of the underlying share as there is more time for the underlying share to move. This component of the option is called time value, so the greater the time to expiry, the greater the time value of the option. The closer to the expiry, the lesser the time value of the option.

Calls and puts behave differently for a given movement of the underlying share price. If the share price goes up, the call option price will generally go up because the fixed-price “option to buy” becomes more valuable.

Likewise a put option gives the right to sell the shares at a particular price and its price will generally rise if the underlying shares fall in value. And if the underlying shares rise, then put options would generally fall in price.

In other words, call options move in the same direction as the underlying shares and put options move in the opposite direction.

From an investor or traders point of view, they would buy calls if they are of the view that the underlying shares would go up and puts if they thought the shares would go down.

For each holder of an option, there must be someone who takes the opposite position. When an option buyer buys the right but not the obligation in a contract, it follows that the person on the other side of the transaction must assume the obligation but not the right. This person is known as the “writer”. The writer takes on the obligation to make delivery of the underlying stock if the holder exercises his call and takes delivery of stock in the case of a put.

For assuming his obligations, the writer gets paid a premium i.e. the price that the buyer pays for. The option premium is determined not only from demand and supply but also with reference to variables such as time remaining till expiry, price of the underlying shares, relative to the exercise or strike price of the option.

Other factors include, dividends on the underlying shares, interest rates, and volatility. The premium is normally determined by the buyers and sellers but normally corresponding to the theoretical price as devised by various mathematical models such as Black Scholes or binominal distribution. Such software is available and a search on the internet should reveal such models.

Exercise in the financial context, is the use of the right by the option holder to purchase the shares at exercise price if the option is a call, or to sell the underlying shares at the exercise price if the option is a put. When a call is exercised, the writer of the option is obliged to make delivery of the underlying shares at the exercise price, and the holder of option must take delivery of the shares. When a put is exercised, the writer must take delivery of the underlying shares at the exercise price and the holder of the option is obliged to make delivery.

The author has trained under various practitioners such as Larry Williams, Darryl Guppy, etc, and has over 8 years of trading experience in the stock markets and various markets. For one of the best courses on options trading go to http://www.optionstradingolgy.com to learn more.

Often currency traders battle to find a reliable set and forget forex trading alert services which are convenient, profitable and easy to follow. They dream about copying the daily currency recommendations into their Forex broker dealing station and watching their trading account grow into millions of dollars.

Recently over 250 online currency trading alert services were reviewed and alert services like the one described above do exist!

The big challenge to the average Forex Trader is firstly, finding currency trading signal services that fit the success mould and then secondly, making sure that the service is above board (credible). This article will address the first question of how to find possible Forex trading alert services to consider.

The method mostly used by many currency traders is to search the Web using a good search engine and then to slowly search through the results to find say 20 ones to consider for evaluation. This is a good starting point but remember to uses appropriate search terms. For instance Forex trading signals, Forex trading alerts and Forex alert service bring up different results. This may seem like hard work but always use your trading dreams as a motivator. While you are on the search engine results pages do not neglect the paid adverts to further increase your chances of finding great Forex trading signal services. You can find some unexpected gems clicking on these.

Another good place to search for great Forex trading signal services are Forex service review sites. Some of these sites give objective and paid reviews of many Forex trading alert services on the market and allow users to post comments on their own personal experiences. Some of them list over a 100 currency trading alert services so your job can be reduced considerably. These are probably the best source of good Forex trading alert services, as you get direct user feedback as well. We have also found these to be one of the best guides to the creditability of alert services. Use search engines to firstly find the review sites. Most of the review sites offer direct links to alert services providers.

Currency blogs or discussion rooms / forums are again a good source of alert service information. Going into discussion forums is a lot more time consuming and your return on effort will be less than the methods already mentioned. We use this method to check on the credibility of a service rather than finding a service.

Word of mouth is an often overlooked method. Use your network of other Forex traders to enquire whether they have had any good experiences with Forex trading alert services.

Using the methods above alert services producing 27 000 pips a year and returns of between 200% and 1000% on capital used, have been found. Not a bad investment of time and effort but 250 alert services had to be researched to get there. You too can benefit from following the process described in this article and well as the articles to follow. It is well worthwhile.

The recommendations in this article should provide you with between 20 and 50 currency trading alert services to consider. How you then water these down to the few that will make you money is the subject of the next articles to be published in the article directory. Make sure to watch out for them.

Learn how you can make money from great Forex Trading alert services by tapping into the experience that Mary McArthur has in this field by visiting a UK and US hedged service or New York alerts . Here you can subscribe to a free monthly Forex trading magazine.

Forex traders often have times where they can not find a single Forex system that makes money. As they continue looking for system, they start getting a good idea of what works and which type of trading systems produce results. There is however, a different approach whereby ANY forex trading system can be made more efficient and over 90% of systems profitable.

90% of all trading systems can be optimised to be profitable. This process is however, not easy and requires some trading experience, knowledge, expertise and creativity. This approach is not for the lazy trader who is trying to find a plug and play solution. 90% of trading systems available on the market today are merely under optimized. They require just a little more from the trader to make them profitable.

This process often leads to the conclusion that it is not the trading system that creates successful traders. It is the trader with a thorough approach that creates good trading systems for themselves. They therefore own the system 100%. Failing traders in general do not have a positive approach or the knowledge to stick with or fix a reasonable system. They would rather move on to another sub optimised system. They never fully own the system they are trading because they have not optimised it or have not really understood the strengths and weaknesses of the system. They would rather trade it with the default settings and hope for the best. This sometimes works in the short term.

The sad fact is that almost all trading systems (90%) can be made more profitable very, very easily. There are a number of techniques to do this. Below are a few that may give you food for thought.

Reversing the trading direction on an unsuccessful or disastrous trading technique can produce good results. If you think that a particular trading technique is trading suicide. That it will produce unacceptable losses all the time. Why not be brave and simply reverse the trade direction on all deals. This simplistic approach has turned some real dog systems into winners. This work particularly well when the stops and targets are the same size.

Optimising the settings of the existing trading system will teach you the strengths and weaknesses of a system. Most system have variables and the system results can be optimised by find the best settings, time span, currency, stops, targets etc for a system. With the ability to turn most systems into trading robots this is very easy to do. In general changing the size of stops and targets alone can produce amazing results.

Introducing a filter to the existing trading system can improve results dramatically. A trading filter either improves the systems chances of success or eliminates the negative deals. It can be an additional indicator or additional information that must be taken into account before trading. A filter can therefore be an indicator, only trading at a certain time of day, only trading under certain volume conditions, only trading in trending or sideways markets, not trading near major announcements, using the relative strength of currencies when compared to each other, etc. Using multiple timespan confirmations eliminate many doubtful trades.

Introducing the appropriate money management and position sizing approach can make an unsuccessful technique profitable. You always want to increase your risk in winning streaks and decrease your risk in loosing streaks. You can make money with a poor technique that has clear winning and losing streaks.

This process of optimising systems is fun and educational. It adds a lot of enjoyment to Forex trading. So many traders spend a disproportionate amount of time trying to find the absolutely perfect Forex trading entry technique. They waste so much time chasing the evasive Holy Grail. Some never stop this search for perfection in this less than perfect Forex market. Some never stop to consider being creative and fixing what they have got.

In all of this the most reliable systems is often the simplest ones. After all you only need a tiny edge over the market to make money. Trading basic horizontal and non horizontal support and resistance principles, taking market phases into account, using momentum appropriately, sizing your targets and stops well, and managing your risk through good position sizing plan is all it really takes. Forex trading can be so much fun when this happens.

Mary McArthur, from Expert4x, uses many techniques to improve the profitability of forex trading systems. some of her methos can be found at Long Candle Forex Trading or at Your Forex Edge . Free Monthly Forex trading magazines are available at these sites

When we enter the field of trading, we often decide early in the process that we are in it for profit, and thus we must make sure that keep our objectives clear and learn to use information and feedback as a method of understanding the situation. In some cases, this is very easy to do. We make an investment and we follow our plan and we sell at just the right point and we make a profit. At other times, interpreting information isn’t as easy. We receive what we consider to be bad news and we believe we have made an error in judgment.

An error in judgment is not a mistake and bad news isn’t really bad news. It is simply informational feedback that we can then use to evaluate our plan or our actions in order to produce a better outcome the next time we sit down to trade. Our emotional desire to accept this information as bad news is strong, and it takes quite a bit of practice for many to turn their perception around, as we have been taught since infancy that some things are inherently “bad,” including losing a sum of money.

In the process of interpreting information, it is vital that we are honest with ourselves. While it is possible to make your win-loss ratio seem much better than it is in reality by intentionally make a few small trades on the “safest” possible trades. While this of course will increase the ratio of how often you gain profits over how often you lose money, it will not give you an accurate representation of the information you need to interpret differently in order to develop a new plan of action based on the current feedback.

Ultimately, when we lie to ourselves and try to represent ourselves as stronger than average traders we rob ourselves of vital information that can enable our own enhancement. We are in this gig to make money. We can’t reach our full potential when we are misrepresenting ourselves, even when those misrepresentations are only for our eyes. If we want to be able to produce a better outcome, we have to interpret all of the information, in its entirety, without filtering or self deception.

Training yourself to keep daily records of ever trade, every outcome of those trades, and every strategy that went into those trades will help you to quickly decipher the information you receive when measure your performance ratios. Without knowing why you did something six months ago that resulted in failure, you are likely to repeat the mistake. When you find repetitive patterns throughout your trading history, you will learn what works and doesn’t work for your trading style.

Of course, there are those traders that don’t bother to use their win-loss ratio for performance evaluation or even really know what their win-loss ratio really is at any given time. You can choose to operate without any type of evaluation of your performance, but you will never be able to learn to be a stronger and better trader nearly as quickly or effectively. You will always have an informational gap stemming from a lack of performance evaluation.

Learning to evaluate your “bad news” and your good news as performance feedback is a huge part of undertaking the trading field as a serious form of making some very serious cash. You can really only get to the point of making serious financial gains when you are willing to be honest, evaluate your performance, and look at your ups, downs, and successes and failures as information that is readily available for your unbiased interpretation. When you can learn this, you can learn how to trade with the high rollers.

If you would like to immensely improve your trading and investing results, check out www.secrets2trading.com
AND for a Limited Time, you will also receive a FREE copy of a limited number of the amazing book “Trading In The Zone” which is jam-packed with daily trading ideas and psychological preparations to instantly improve your trading and investing performance.

Knowing when to exit a forex trade is considered as one of the most difficult aspects of forex trading. This topic is going to be discussed below. Previous articles in this series on no stop , hedge forex trading have covered, Forex trading without stops, and, Forex trading not caring which way the price moves.

How often have you exited a Forex trade positively and then looked on as the price travelled another 100 pips in the same direction? Alternatively how often have you tried to squeeze the last 5 pips out of a good Forex deal and then watched as the price retraced all the way back to your entry or even beyond? We have found this area of knowing when to exit a forex trade, one of the most frustration parts of trading.

When you enter a Forex trade all the trading signals are aligned and you can tick all entry criteria on your checklist. That is why the entry is the easy part. You are entering on your terms. When the price takes off in its intended direction it enters a mystery zone where you are dependent of the volatility of the move for the Forex transaction to succeed. You very seldom have reference points. When to cash in, or not, is always the question on every traders mind. The fact that the price likes revisiting previous support or resistance makes this even more challenging.

It gets worse on Forex trading deals that go negative. You are 30 pips down. Do you close the deal at a loss or do you wait for a small retracement to reduce your loss? Surely the price has gone as far as it can go?

It can’t go more negative? Then suddenly (oops) the deal goes even more negative. You start thinking: “I’ve lost so much another 20 pips can’t hurt I’ll give it more room”. And so on. We’ve all gone through that at some time.

With Grid trading you don’t have that problem. You would divide the expected trading range for a particular currency for the next say 6 months (say 4000 pips) into grid levels with gaps of say 200 pips. Now the guesswork of when to cash in your positive deals is taken away. Every time the price touches a grid level you cash in your positive deals. It is as simple as that. As soon as the total of the deals you started with is positive, you close all your deals positively and start again. How simple can trading be? No ifs, buts or maybe’s. That is why you don’t need charts. You trade price levels, with no stops (Because each price level has a buy and sell active) and you don’t care about which direction the price moves.

This also answers our question of when to enter a Forex trading transaction. You would use the same price levels that you use to exit profitable deals (as determined above) as the entry levels for your no stop, hedged, Forex trading grid system strategy. The process of determining the price levels is very important as some trading groups are reporting gains of one thousand percent a year on capital employed using this Forex trading technique.

The above way of determining grid levels is an example. As you will see in future articles grid levels can be designed to meet the trader’s requirements in many more ways. For more information (which is freely available) on this great trading system why not search the web for “no stop Forex trading”.

This is article three out of seven articles on the no stop, hedged, Forex trading technique, all of which will be accessible in this article directory on an ongoing basis. In order to get the complete picture do not miss any.

Learn how you can make money from Forex Trading by tapping into Mary McArthur experience by visiting hedged, grid alerts or grid system . You can get a free monthly forex trading magazine from these sites.

Thinking of setting up Forex accounts to make some and quick and easy money? It’s true that with the advent of the internet, a number of people have started earning very good money with online Forex trading. But there are also a lot of people that have lost money in trading scams. This is why it’s important to know how to go about Forex trading before you actually take the plunge.

Don’t Gamble

Before you even think about opening Forex accounts, you need to be clear about what Forex actually is. Forex stands for Foreign Exchange Currency Trading. It is not gambling - it requires careful and continuous market analysis. It is also something that requires a little practice before you actually start. This is because Forex trading involves a mixture of both practical and theoretical know-how; studies have shown that nearly 90% of beginners fail to make money in the real market because they lack the know-how.

This is why you should do some demo trading first. This involves opening a demo account and using it to make your trades - while you apply the same market skills, you won’t actually lose any money if you make a mistake. Never open Forex accounts until you’ve practiced thoroughly on a demo one. When you actually get out into the real market, make it a point to never risk more than 3% of your total trading account. This will ensure that you remain successful even when market conditions are unfavorable.

Don’t Panic

Forex trading is something that needs to be approached with a cool head and a steady hand. It requires methodical study of FX charts and the market as a whole. This also means that you need to be calm when you do your trading - panicking or getting over-excited could cause you to make bad decisions. If you feel distracted by something, it’s better to put off your trading until you can focus on it, one hundred percent. If you hit a sweet spot during your trading, let it run as long as you can. Conversely, if something isn’t working for you, it’s best to cut your losses quickly and try something else. Do not hope that the market will suddenly swing in your favor - this is wishful thinking. Instead, it will be more profitable for you to stop a losing trade and think of a new game plan.

Another thing to consider is not trading at all. At times, it’s just better to stand aside and watch how the market is working. Don’t think of this as money lost - a lot of times, opting not to trade can save you money. Rather than risk losing your money when you are uncertain, it is far better to not trade and save your money.

Last, but not the least, don’t over complicate or over analyze your information. This can lead to confusion, which in turn can lead to making bad trading decisions. It’s best to keep things as simple as possible - take care of your Forex accounts and treat your trading like a business, not like a game.

Get insider tips and strategies for trading your forex account, visit us at http://www.forexapex.com

Developing independence is a skill that might take you several years to truly develop. Just like all skills along the way, you grab their notion, flip them around a bit, chew on them, and then apply them experimentally until you feel you are really on track. Then you grow a little more and you start the same process all over again. So as you are developing your independence, how can you move from a state of not considering the crowd to make your decisions while still using the herd for some valuable information?

We gather our feedback from a multitude of different places. When we evaluate whether we sold too early, held on too long, or simply made a poor call altogether, we look to numerous different aspects to develop this opinion. For many of us, while we are in the learning stages, we have a very difficult time reading the crowd as information only.

We tend to feel a sense of pressure to either follow or to break away based entirely on the skill we are developing in the forefront. Perhaps you are practicing making your own decisions without considering what the masses are up to. You check in on what the herd is doing and even perhaps you can ascertain who and what they are following. When you do this you might be reacting in one of two ways.

You might react with a strong desire to change your decision based on the fact that you are feeling too separated from the herd or that you are too close to the herd. You haven’t yet come to terms with using the crowd as a method of interpreting information versus using them to check up on yourself. Doing this is still a form of the ever popular herd mentality, but it is also a closer step toward understanding the process of devouring the information available by understanding their actions.

The second way you might react comes from a place of curiosity. As you look at where the crowd is heading you find yourself asking why, how it looks like they are influencing the market, and of course, whether they are making strong and successful decisions. When you reach this place of questioning, you are then using the herd to develop theories based on the information that the herd provides you.

When we evaluate the feedback around us, we also tend to make quick assessments of what our actions mean to us. Not all feedback is entirely accurate, but we can say for the most part, feedback becomes rather concrete. By being able to assess the information, decide whether or not it is useful to you in any way, and moving forward based entirely on your own beliefs about the feedback creates a very unique method of making decisions.

One of the most significant questions a new trader (or a growing trader) can ask him or herself is how they are currently responding to the expectations of others. When we feel as though we have to meet specific expectations that come from other people, we then ultimately are pushing ourselves directly into resentful motion. When we eventually realize that we are now moving forward based on the expectations of others, we can not feel fulfilled and we do not perform as well.
When we focus on our own expectations and we meet those as well as we can on a daily basis, we often flip our resistance to growing and producing because our motivations are more purely intentional. How does this play into the herd mentality and using the actions of the masses as informational guidance? Simple, really, but not necessarily easy.

If we check in with two other traders, ask them their opinion or their actions in reference to a particular trade, and both traders answer with a strong expectation that you are seeking their advice in order to make a decision about your own behavior then we have a simple choice to make. We can either meet their expectation, and follow their advice simply because we asked their opinion or we can meet our own expectation and use the information as just that.

You may still end up following their logic and doing the same action as they did. Or you may determine to do something a little different. Either scenario is fine. If the traders in question decide that their opinion is no longer available since they feel as though you are asking for their advice and not “listening” to it, then the problem rests within their expectations and not your decision.

It is acceptable to perform the same action as the rest of the crowd provided that you are making the decision to do so based entirely on your own perception and thought processes. When we follow our own inner voice, we are generally much more satisfied with the results, even if the results are not profitable.

If you would like to immensely improve your trading and investing results, check out www.secrets2trading.com
AND for a Limited Time, you will also receive a FREE copy of a limited number of the amazing book “Trading In The Zone” which is jam-packed with daily trading ideas and psychological preparations to instantly improve your trading and investing performance.