Re: Learning how to trade is a Paradox

Hi Eric,

 

You're absolutely right.

Ray Barros said basically the same time - that make mistake is part of learning.

 

The key is risk management.  Make sure you take only small risk while you're still learning.

 

Regards,

Peter.

 

On Fri, Jan 29, 2010 at 2:41 PM, Eric Lye <forexlye@gmail.com> wrote:

Learning how to trade is a paradox.  When we trade, we tell ourselves don't make mistakes.  However, we can only learn well if we make those mistakes.  And most people need to repeat making the same mistakes in order to learn (cognitive training).  Thus, allow yourself time to learn, allow yourself to make mistakes (at a small cost).

Learning how to trade is a Paradox

Learning how to trade is a paradox.  When we trade, we tell ourselves don't make mistakes.  However, we can only learn well if we make those mistakes.  And most people need to repeat making the same mistakes in order to learn (cognitive training).  Thus, allow yourself time to learn, allow yourself to make mistakes (at a small cost).

Know that Market Experts Aren't Magicians

I read this and fully agree with it.

Some of the experts that try to predict the markets actually make money trading
the markets; however, they don't make money because they have predicted the
market correctly, they make money because they have traded the market correctly.

USDJPY 2010-01-28 Live Analysis

I have been a little bit busy and could not catch up with my blogging.  Will try to keep up.  Below is my view of USDJPY

Think in terms of probabilities and not certainties

Trading is about having the ability to think in terms about probabilities and not certainties.  A typical scenario is when you entered into a short with a double top, it doesn't mean the formation is going to be a definite signal that the price is going down.  So, when the setup show signs of failure, it's time to get out and not holding to the original view.

Thus, the key to trading success is management.

2010-01-20 EURUSD Live Trade

Wednesday 20th Jan:

Following this pair since yesterday, did a trade yesterday and another this morning.

(refer to analysis Monday's Analysis)

Not trading is also part of trading

I made some complaints about the slow market to a master Jedi Trader, he told me, no trading is also part of trading.

~ Eric

EURUSD 2010-01-18 Analysis

Monday 18th Jan: 

It has been a week that I have not been posting.  Need to adjust the routine a little...

Anyway, looks like a tough week to start.  Price in the limbo,  not easy to figure out the direction. I would take que from the market.