Addiction to forex trading (3)

My experience so far says that dependent people can hardly overcome the problem themselves. In some cases, it is simply impossible.
Some would say to follow certain rules in deals, others to keep a diary, and third to take a rest. The latter is the right one for me, but rest under changed conditions. Do not just say, "Ok, I will not trade, I'll do it." Human instincts and inner desires are much stronger in most cases by the will. So, you have to outsmart them. I only think of one way and it is to go to a place where you do not have proper trading conditions (no computer) and you also have to have the right conditions for other activities - sports and anything else to distract you from forex.

Addiction to forex trading (2)

Is there a passion or is it just addiction? You realize that addiction to a certain activity happens when a person is completely dependent on it. This behavior is usually shown by people who are constantly looking for the activity no matter what negative consequences it have brought to them. What is worse is that people who are addicted can not stop the activity even though it ruins their lives.
How would you recognize if you are already dependent on forex trading rather than simply taken over by it. Ask the following questions:
Do I often trade even after I told myself to stop?
Does Forex trading create problems with my relationships with other people?
Does Forex trading has created me financial problems?
Has anyone ever told me I trade too much and that I have to stop?
Have I tried to get my losses back by increasing my deal size?
Is there a case when I trade just because I'm bored?
I am sure that once you answer these questions, you will be able to realize whether you are dependent or not.

Addiction to forex trading (1)

To be honest, most of us are attracted to the world of forex trading because of the potential profit of big money, with the ability to exercise the brain and the will. For some, the second comes in the background, as it is more preferable to make money.
There are times when traders just want to take the money, which blurs their judgment on the forex market. Exactly then, trading has the potential to become addictive, potentially damaging both the brain and the soul.
Imagine it, let me tell you a story of a trader who ended up emptying a whole account for the third time in a row. However, he is persistently looking for a new real account. He even thought about getting closer to companies to manage their money with the belief that his passion for trading magically will turn into profits.
To make matters worse, this day trader has a family to endure. No matter how much money he has lost, he does not go back to study the market or reform his trading plan. Instead, he takes from family savings to open a new real account.

The role of psychology is enormous - Part 1

"The role of psychology is enormous," - said the expert of Danske Bank about what really drives the market.

Our knowledge of the market, as a rule, is limited to dry information, that arrives every day as a result of trading. We can only guess what lies behind it, and what is actually due to the dynamics of trading, because every rise and fall is based on human's choise. There are people - traders, brokers, asset managers, who use the information in their own way.
Strategists from Danske Bank Vladimir Miklashevskiy notes, that the role of psychology in the markets is enormous, "Its size, of course, varies depending on the state of the market, but there are times when psychology - that's all. Markets, like dry hay in the hot summer, can burn out from the stub. Especially when expectations are filled with uncertainty because of the unknown. The more the money supply on the market, the less the laws of supply and demand of the real economy can be seen in the movement of the markets".
For example, now globally all depends on the US monetary policy of the Fed: as softer is it (not even in practice, but in standby), as more desirable investors go into assets with higher risk (and profitability), including on emerging markets, stocks and commodities. Conversely, as more tight is the monetary policy, the more desirable assets are the low market, so-called "safe havens" for example, the US dollar, the Swiss franc, the Danish krone.

Free webinar: "ActivTrades Innovation: The Metatrader Suite"

On June 16 there will be a very useful free webinar "ActivTrades Innovation: The Metatrader Suite" with guest speaker Malte Kaub.

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Time: 7pm-8pm Cost: Free Place: Online

For more information and registration, visit here.

The discipline in forex

As everywhere, the discipline plays an important role in forex trading. Successful forex traders have iron self discipline. They plan each of their deals and then simply trade their plans. If you do not develop a clear plan for trade and follow it consistently, you will find difficulties in continuing earning money as a trader.

Doing random profitable deal, even throw away any plan can deliver short pleasure, but making occasional deals can affect negative on the ability to maintain discipline in the long run. When you stop following your plan, but although you're rewarded, you may have believed that pursuing the plan is not a big deal. Unjustified profits increase the tendency to follow any plan in the future. Positive results from this are short and a lack of discipline always ends with a loss. So keep constant your discipline.

Which events are significant in forex?

Central bank policies are a result of all economic data. Think of the economic data as clues which give speculators the ability to predict what the next move of the central banks will be. Most central bankers disclose their policy on a certain date. Therefore, it makes no sense to ignore information that forms their policy.

Fundamental analysis in forex should always begin with Studying the policies of central banks. I am sure that a trader can be successful only if traded an important speech and statements about the interest rates. If you understand given policy, you can see goers data in this context, which will make the image clearer and you can forecast a change in policy before it occurred.

False expectations among traders

Having expectations can be very useful for traders. They are tests, that help us to determine the failure or success, they also gives us goals to follow.

On one hand, expectations are great, but we must be careful with them. If they are too high or unrealistic, we'll probably be disappointed. One of the most common expectations that lead to disappointment among traders is that more transactions equals to faster learning process. It is true that more transactions lead to more experience, but that does not mean that we will learn much more quickly if we make more transactions. This is a dangerous attitude and so can only undergo emotional risk.

The key to faster learning process is to concentrate on the quality of your transactions than on quantity. Instead of doing much deals, our priority should be preparing to enter the deal and making reasonable decisions.

How to recover your trading motivation?

The first step is to look at the delicate details of your trade, but also to keep in mind the big picture. Do you trade the right way?

Return to your trader diary and see your recent transactions. If you do not have one, I advise you to make one. Ask yourself the following questions:
- Is there something you've changed or do anything different from usual trading plan?
- Do you explicitly follow your trading plan?
- Are you doing something wrong?
- Do you miss something ?
When you find your mistakes, it will remove the lack of motivation.

Undeniable truths in forex

Expect the unexpected. Accept it. No matter how much you try in you analyzes, you will not have 100% accurate idea which way the market goes. There is always a chance that surprise waiting around the corner, perhaps in the form of undeclared currency interventions or shocking comments from central banks. In fact, these unforeseen events can not to be caused by the economic scene, but take the form of natural disasters or sudden declared war. Even if you stare at the chart constantly, keep track of forex calendar, listen to the news every day, you probably will not be able to predict such events. Unless you're Nostradamus ...

Citigroup predict 1.0450 for EUR/USD

During the last big bearish trend of the EUR/USD an upward correction is observed for the period from August 1997 to October 1998, when prices jumped from 1.0433 to 1.2161. This period took 14 months. It must also be noted that one of the most important events in 1998 was made at that time historic high on the bond market of the United States, according to the Citigroup.

This time we had upward correction from 1.0458 to 1.1714. A few weeks ago the bank had been of the opinion that we are still waiting to move up, and it will be an attempt to test 1.2000, but the pair failed to hold above 1.1500 and seems, that we have a change in the trend. A minimum of 1.0458 was reached in March 2015 and since then passed 14 months. At the same time the government bond market in the US also occur conversion.

There are clear similarities between this movement now and 1998. The correction of EUR/USD and market behavior of bonds in the United States then and now look the same, said from the bank.

Speculators slowly return to dollar

Last week was very quiet in terms of changing the mood of speculators and ended on the eve of the publication of the minutes of the last FOMC meeting on 18 May, report analysts at Scotiabank.
The position of the euro and the yen barely changed, long positions in AUD fell slightly, while short positions in the pound rose slightly, they say.
The main favorites of the bulls and the bears remain respectively yen and pounds. The volume of net short positions in dollars fell.
We have to note that speculators reduced their net long positions in the Canadian dollar for the first time since late January, closing both long and short positions, which suggests uncertainty, remind analysts.
Long positions in AUD decline for the third consecutive week.
In the third week of the last four long positions in the yen have reduced and this is happening against the closure of both long and short positions.
Speculative positions in the Japanese currency continued to be in the zone of very high historical value, concluded from Scotiabank.

Zimbabwe will produce bank notes equal to US dollar

Zimbabwean authorities decided to issue banknotes, which will be equal to the US dollar at a ratio of 1:1, according to the British BBC Radio and Television.
This decision is due to a shortage of cash in the country of US dollars, which since 2009 in Zimbabwe are legal tender along with South African rand.
It is planned to print Zimbabwean own banknotes in denominations of two, five, 10 and 20 dollars, which will be equal to USD. Financial support for this idea of ​​the Zimbabwean authorities in the amount of $240 million came from the African Export-Import Bank.
Until 2009, the currency of Zimbabwe have been the Zimbabwean dollar, but due to the huge inflation, it was decided to abandon the national currency, to stop its release and move to settlements in US dollars and South African rands.

ECB: the issue of 500 euro bills will be discontinued by the end of 2018

The European Central Bank (ECB) has decided to stop production of 500 euro banknotes by the end of 2018, noting that their use can "contribute to illegal operations".
According to the report of the ECB, all of the outstanding bills of 500 euros will retain their value and can still be used as a means of payment and may be exchanged at the central bank of the Eurozone members for any period.
The European Central Bank will begin production of 100 euro and 200 euro banknotes in the series "Europe" with the termination of the release of 500 euro notes, says the report.
Banknotes with the highest nominal value is believed to be widely used for payments in the criminal business, such as drug trafficking or money laundering.
At the end of 2015, 500 bills were 3% of the total number of banknotes in circulation, representing at the same time 28% of their total cost. According to the monthly statistics published by the ECB on the circulation of euro banknotes, the number of banknotes of 500 euros was nearly 613.56 million units, down to 594.417 million units by the completion of the 1st quarter.

Leave the demo account ?

The other thing I am concerned about is leaving the demo account. To be more specific I tell you that when I go through the forums I come across topics like 'when to leave the demo account and start real trading?, 'how much time do i have to spend on demo account', 'is demo account really useful' and so on. What those people failed to understand is that demo account is one perfect environment for testing strategies and ideas. The thing is that we as traders don't want to lose money and bad deals can be significantly reduced if we try out our systems in place where it is impossible to lose real cash. Simple as that but I am surprised by those people.

Short answer - don't leave your demo account. It comes in handy if you know how to use it.

In addition to my second post

In addition to my second post I would say that it is very common pattern. You can check it, just go to newbie section in every trade forum and you would see posts about money - how much do you make , how long do I have to trade in order to make money,  how to make money, give me best strategy to make money and so on. All they care is money.

Money are important for sure. The problem is that they are all concerned about money. They don't think how to be better, they don't research the markets, they don't have a trade journal or ask themselves why the markets moves this way.

First prepare yourself, then ask for money.

Trading

Let's talk about trading. It seems easy and profitable but is it ?
You press 'buy' and 'sell' buttons and there is a field, which shows how much you win or lose, and all you have to do is to be pick a direction ? I know some traders which see it like this. They are not traders anymore. They've never been.

I think of the trading as a challenge. You have to go though everything to become a successful trader. If you are ready to invest your time, efforts and money for a long period of time, that's a good thing because it's the first step.

And if you are rookie and you heard that you can earn money in no time, you are about to lose your money for sure. Trading is not for everyone. I am not a singer because I can't sing.