We soon learn that winning the lottery or having a great job fall into our laps are foolish expectations to build a life strategy around, but the realization of a truth does not necessarily guarantee that we will be mindful of it when a new activity comes along.  Many newcomers to currency trading have learned this lesson the hard way by failing in the first three months of trading, but every successful trader understands that managing expectations is at the heart of his disciplined approach to the market.

Managing expectations is part of the psychology of trading, a new discipline that has received much attention in the past two decades.  Self-awareness is key to understanding how we view the forex market and how we interact with it.  Expectations can apply to each of these phases and should be addressed up front:

• Your Self Image:  Are you really cut out to be a forex trader?  A number of points may contribute to answering this question.  If you are losing sleep at night due to the intensity required or the necessity of accepting losses as part of forex reality, then perhaps your approach needs a review.  You do not have to be a “scalping” day-trading expert to win in online forex.  Adjust your timeframe approach to a “swing trading” genre to ease the tension a bit and see how you fare.  Trading is also about discipline and following a set of rules to the letter.  If your free spirit would rather not be so encumbered, then once again, trading may not match up with your personality type.  If you feel comfortable with your trading style, then confirmation is always a good thing to have;
• The Forex Market:  The forex market is all about establishing equity in exchange rate pricing, not selling a product or commodity.  As a retail forex trader, you are engaged in speculation, plain and simple.  Intrinsic value is nowhere to be found.  Relative value is the name of the game, and no single trader has the resources available to outguess the market.  You must ride the waves, gauge momentum, and rely on your technical tools.  Losing trades will be plentiful.  They are to be expected and accepted.  Recent published statistics suggest that there are three losing trades for every winner!  Experts may have a better track record than the average, but they, too, must manage expectations in this area.  The Rule is simple – cut your losers early, and let your winners run.  One good winning trade will nearly always offset three small losing ones, if you manage the value of your losses in a tight fashion;
• Forex Trading:  The act of trading must be very disciplined, according to a step-by-step trading plan that incorporates prudent risk management techniques.  Instincts based on knowledge and experience may guide your effort, but shooting from the hip with no stop-loss orders in place is a recipe for disaster.  Sooner or later, you may find yourself shooting at a tank with no opportunity for a return volley.  Never risk capital in forex trading that you cannot afford to lose and follow the “2%/6%” rule for money management.  You should never put more than “2%” of your forex account balance at risk in one position, nor should you have more than three such positions, “6%”, open at any one time.

Golden State: A very talented offensive threat with TMac and an expiring contract of Steve Francis, who could work his way into the rotation. Trading away Jackson and Maggette could help with the development of the younger guys like Brandan Wright and/or Anthony Randolph. Tracy McGrady could also be a great mentor for Anthony Morrow. Trading for McGrady gives the Warriors cap flexibility for the Summer of LeBron, when they could make a potential run at Chris Bosh, who would seem like a great fit in the Bay Area.

Houston:With Jermaine O’Neal’s expiring contract, Rockets could potentially make a run at some big names in 2010. O’Neal could also dominate the post for Houston. Stephen Jackson knows Artest from Indiana and will help spread the floor with his three point shooting. Maggette also adds some depth on the floor with his ability to get to the free throw line.

Toronto: Getting Yao Ming would be a welcoming move by Jerry Colangelo, who loves adding international players to his already mixed team. Yao Ming would be more of a true big man who would help Chris Bosh not have to grab so many boards and get out more in transition. Turiaf is a great shot-blocker against smaller teams and would help with the lack of shot blocking ability that Toronto has needed. DeMarcus Nelson is a young prospect who is a great defender and could back up Jose Calderon potentially if he were to flourish in Toronto, could pass Roko Ukic in the depth chart. Nelson is also very athletic, we’ve seen some flashes of his athleticism in the China Games with his posterizing dunk over Richard Jefferson.

Thoughts?

i am ready to give up. but i have never had any professional advice or help. i really need a mentor, or teacher, who know’s how to make a proifit trading on the forex. i repeat… SOMEBODY WHO IS CURRENTLY TRADING PROFITABLY ON THE FOREX MARKET (and can prove it). please.

thanks.

Went through a couple of really crappy courses that taught me how to lose more money than i was before i attended.

How did YOU learn your skills?

Thanks

Could the Giants contend if Manny signs with them??/

I want someone who can teach me to be a trader and ultimately hire me to work for him. I have a Masters in Electrical Engineering from Caltech (the hardest engineering school to get into in the US) and I know that I have a high logical aptitude towards learning anything.

I need someone to teach me and to give me a chance. I can promise, you will never regret it for a second.

-A.S.