Author: Vera J.

Forex Trader, Volunteer, Hobby Photographer. Choose Life!

The 3 Key Elements of Trading Mindset

~ Vera J.

1) PATIENCE
You’ll very rarely ever put in a trade and it go your way right off the bat. It’s how the market works your psychology. You have to be patient and step away from the trade once it’s placed. It’s either gonna go your way in profit or hit your stop loss…that’s the reality. You watching it isn’t going to change where it’s going.

mindset

2) TOO MUCH EMOTION
You are getting emotionally involved with your trades. You’ll never last long term if you keep that up. You have to emotionally detach yourself  from each and every trade. Same emotion, win or lose.
mindset3) THIS IS A BUSINESS
You must treat trading like a business. You can’t just do things on a whim and expect success…you must truly dive into learning and education instead of relying on others signals and advice. When you just jump in a traders chat room and say “Buy or sell?” that tells us A) you didn’t take the time to read the chat B) you didn’t take the time to look at the charts and C) you aren’t serious about your trading.

Take these 3 key elements of trading with you from here out…and remember, the market doesn’t care how you feel…it’s going to move however it wants when it wants.

Happy Trading!

 

 

.

.

The History of the Japanese Candlesticks

~ Vera J.

Candlesticks have been around a lot longer than anything similar in the Western world. The Japanese were looking at charts as far back as the 17th century, whereas the earliest known charts in the US appeared in the late 19th century.

Rice trading had been established in Japan in 1654, with gold, silver and rape seed oil following soon after. Rice markets dominated Japan at this time and the commodity became, it seems, more important than hard currency.forexMunehisa Homma (aka Sokyu Homma), a Japanese rice trader born in the early 1700s, is widely credited as being one of the early exponents of tracking price action. He understood basic supply and demand dynamics, but also identified the fact that emotion played a part in the setting of price. He wanted to track the emotion of the market players, and this work became the basis of candlestick analysis. He was extremely well respected, to the point of being promoted to Samurai status.

The Japanese did an extremely good job of keeping candlesticks quiet from the Western world, right up until the 1980s, when suddenly there was a large cross-pollination of banks and financial institutions around the world. This is when Westerners suddenly got wind of these mystical charts.

Obviously, this was also about the time that charting in general suddenly became a lot easier, due to the widespread use of the PC. In the late 1980s several Western analysts became interested in candlesticks. In the UK Michael Feeny, who was then head of TA in London for Sumitomo, began using candlesticks in his daily work, and
started introducing the ideas to London professionals.

In the December 1989 edition of Futures magazine Steve Nison, who was a technical analyst at Merrill Lynch in New York, produced a paper that showed a series of candlestick reversal patterns and explained their predictive powers. He went on to write a book on the subject, and a fine book it is too. Thank you Mr Feeny and Mr Nison.

Since then candlesticks have gained in popularity by the year, and these days they seem to be the standard template that most analysts work from.

Source: The Candlestick Trading Bible

 

 

.

.

The Need to Exchange Currencies

~ Vera J.

The need to exchange currencies is the primary reason why the Forex Market is the largest, most liquid financial market in the world. Currencies are important to most people around the world, because currencies need to be exchanged in order to conduct foreign trade and business. The foreign exchange market is the “place” where currencies are traded.

Like a Pro 1

Currency trading is conducted electronically, which means that all transactions occur via computer networks between traders around the world, rather than on one centralized exchange. The market is open 24 hours a day, five and a half days a week. Currencies are traded worldwide in the major financial centers of the world.

 

 

.

.