Levels of Currency Traders.

The most important asset to you as a currency trader is your raw intelligence, common sense, intuition, emotional control and skills developed through dedication, time and copious amounts of hard work.
Level one. Beginner Trader. Beginners study and paper trade for a minimum of one moth with pretend currency, gaining the experience required to establish a track record of profitable performance.
Level Two. Advanced Beginner.Trades one or two lots with real money, learning to overcome emotions and at the same time establish a track record of making money.
Level Three. Competent Trader.Trades with control over his emotional distractions, utilizes proper equity management and achieves a financial return.
Level Four.Proficient Trader. Trades are made utilizing confidence, education, experience and the trader achieves financial returns.
Level Five. Expert Trader.Instinctively executes profitable trades without emotion.
Muraleedharan. http://stockscentral.blogspot.com

The Principle of ' P3R ' in currency trading.

Many of the highly successful currency traders have acquired their skills through self development and relative minimum of guidance from senior traders.In these situations we can break-down their learning activities into four compartments that can be called 'P3R' prepare,plan,perform and review.'Prepare' refers to activities that orient the performer to the upcoming challenge.Reviewing charts and market data prepares a currency trader for the upcoming trading sessin..'Plan' relies on the assessment of strengths and weaknessess to guide how the performance will be undertaken.A currency traders plan includes the patterns he or she will trade, the capital to be allocated to trades,allowable risk etc.'Perform' is the execution of the plan with mid-course currection as needed.A currency trader may reassess a plan in the light of unexpected economic news and a price break-out.'Review' comes after performance as part of assessing what was done right or wrong.A currency trader utilizes review to identify flaws in trading plans and the execution of those plans, using the feed back to begin a new cycle of 'P3R'.Trading journals are a timebound tool for self mentoring, structuring and documenting 'P3R' process.How does your P & L break-down as a function of a day in a week?Do you make or lose more money in a particular day compared to other days? You must keep the size of the losers much smaller than the average winners to make your system profitable.Good trading to my readers. Muraleedharan http://forexcentral.googlepages.com

The 'ODDA' Principle and importance of Demo Currency Trading.

The currency trading offers an environment typified by financial risk, danger and uncertainity.The currency trading also occurs in an environment that immensely, financially rewards the efficiency of mental processing.The successful currency trader is one who can, rapidly observe market conditions, orient himself, integrate information into effective decisions and quickly act upon those decisions.Larger currency traders may even issue their own disinformation, masking their intentions to buy or sell or leaking misleading informations to draw in the bulls or bears.The currency markets sometimes masks its intentions with false moves, quick thrusts and large periods of inaction.All these creates an atmosphere of risk, dander and uncertainity. This is the context in which 'ODDA' principle has its relevance.OBSERVE what market is doing? Rising, falling or consolidating.Is volatility increasing or waning? ORIENT by placing the market's present action into context.DECIDE upon the cource of action, once the currency trader has integrated the market's current action with in the broader context of financial and economic forces.ACT and place orders based upon the currncy traders analysis.This requires an ability to rapidly orient and assess whether the currency trader is in trending or non-trending markets, volatile conditions or non-volatile, near support or resistance or away from it etc.From the observation currency trader must rapidly create and update trading decisins and then find the will and clarity to act on the plan, approach or method.Making complex skills instinctive and familiar is the key to tightening OODA loops.This can only happen, if they have broken their trading down into easily identifiable processess that can be rehearsed under pressure until they are second nature.This is where the importance of rehearsing your method on demo trading account lies.You have to trnsform yourself into the level of an expert by continuous practice and evaluation.Good Trading for my readers. Muraleedharan. http://tradinglifeinc.googlepages.com