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Saturday, 31 January 2015
Sunday, 25 January 2015
[MUST READ] 13 Weeks to Double my account by - Michael Z
Another AIMS Trader [Doubled] his Account within 13 Weeks!!!
Congratulations Michael Z
Huge Congrats and thanks to Michael on his success. Long may it continue. He's recently left us a review on Forex Peace Army (read more). Its worth a read and well done to Michael.
"Hello everybody,
Since I've been using the "I Trade AIMS Stress Free Trading"system since October 2013 and my trading has enhanced a lot in that time. I've come to the decision to drop a review about AIMS system here. It's funny because I've stumbled over AIMS right here in the FPA-review section.
I was trying to trade for 2011 and as most beginners, I jumped from one strategy and system to another on the quest of the holy grail of trading. I learned many things, joined a "Price Action" program but didn't get my feet on the ground. Then, in October 2013 everything has changed as I purchased a lifetime AIMS premium membership for a very, very reasonable price. It's less than you have to pay for most 1 or 2 days trading seminars and it's worth 10, 20, 100 times of them.
Beside the robust and dynamically evolving trading-system with different entry and exit strategies, the most important fact is the extremely committed support from Immy (the founder and owner of AIMS) and other senior AIMS traders (AIMSters) who are offering free-of-charge mentoring in the AIMS live trading room and the AIMS forum which are inexhaustible sources of knowledge and support. They are the core of mastering the strategies.
In September 2014 I stopped trading anything else and devoted my whole trading time to AIMS system. This has really paid off as
I was able to more than double (2.36x) my demo account in just 13 weeks.
In this period I was able to bank 1.368 Pips with an average risk of only 15 Pips per trade and just a little more than 2 hrs trading per day.
Watch the stats here: Results_09-12_2014
Since 5th of January 2015 I'm trading a live account and already have made more than 350 Pips until today with the same risk as mentioned above.
As conclusion I can say that AIMS changed my trading completely in a way that it has supplied me with a solid set of trading rules and with Immy's and the AIMSter's knowledge of handling trader's behavioral and psychological phenomena. These two aspects make AIMS so powerful.
Cheers,
Michael"
Saturday, 24 January 2015
Double Confirmation - How to Make Winning Trades - The Final Part 3
This is part 3 and final part of Double Confirming Your Trades.
... continued
Its very important to understand that Every Moment in the Universe, and so in the market as well, is UNIQUE.
When you see a pattern you might think ok here we go again, the pattern is there the next trade is going to be a winner. But what follows the pattern, the entry pattern lets say, is a unique outcome. everytime. The outcome of a trade that was preceded by a certain pattern we call the Entry Setup is a unique event. The entry setup and the outcome of the trade are unique events. You've got to understand this.
1. you know you will hit the ground.
2. you know that when you hit the ground there are 99.99% chances that you will die.
Enjoy your trading by "Believing in the system and that successful trading is a game of probabilities".
... continued
Its very important to understand that Every Moment in the Universe, and so in the market as well, is UNIQUE.
Every moment in the market is unique
As a result of Understanding this information you will know that as long as you continue trading the same pattern using correct money management and following your exit plan accordingly every time, your account would grow more than it is drawn down at the end of 20 trades . That my friend is Trading.
Woohooo I hit a Winner
Notice that I did not put emphasis on your ability of hitting a single individual trade. Anyone can hit a winning trade once in a while. What makes you consistently successful is not your ability to hit a winning trade but it is your ability to consistently follow your trading plan.The Ultimate Goal
The ultimate goal of a trade is not to hit a winning trade, or avoid the losing ones, but its is a psychologically challenging thing to achieve called Consistency. And consistency is not show in one day or two weeks. Consistency is shown for longer periods such as 3 to 6 months to start with. And consistency is an equation.Consistency = Patience + Discipline.
A Very Important Fact to Understand and Fully Apply
The probability of success is very high if you follow the system, but the probability of success per trade is never 100% it might be from 60% to 40% depending on what type of system you use.What happens if you jump of Eiffel Tower?
You gotta understand this "Concept of Probability" as good as you understand that if you jump off Eiffel tower or Empire state building without a parachute two things will happen to you 100% guaranteed.1. you know you will hit the ground.
2. you know that when you hit the ground there are 99.99% chances that you will die.
Trading can be stress free but not without understanding this concept
Without understanding this concept trading can be very stressful and a hard work because you will be "trying hard" to make money on each trade. You will be pushing "yourself" and trying very hard to make this next trade profitable. However the fact remains, no matter how strong you crunch your tummy muscles, no matter how hard you bang your desk, no matter how closely you watch the chart, you cannot turn your next trade into a winner with 100% surety.Be a Casino and let the players play their game.
Enjoy your trading by "Believing in the system and that successful trading is a game of probabilities".
If You're like to learn about this concept and 3 Simple Rules about 3 Simple Indicators
Please JOIN TODAY
20% Discount on Premium Membership is Still On.
Please JOIN TODAY
20% Discount on Premium Membership is Still On.
Friday, 23 January 2015
Double Confirmation - How to make winning trades - Part 2
Yesterday I shared with you a discussion we had inside our AIMS Skype Live Trading Room. This is the second part of that story.
In my previous post I said that Trading is 80% mental, 10% goes towards money management skills and strategies and the rest is divided as 5% for entries and 5% for exits.
However sadly, 95% of traders put 80% of their efforts towards the 5% of the equation in trading and that is The Entries.
You cannot manipulate things into your favour in the market. You cannot change the market not even a tiny bit. Trading is a game of probability.
You may win lets say 60% of the time or less using the same pattern, but the very same pattern that looked beautiful and produced 100 pips this time, that exact same pattern might appear again the next time still it may bring 15 pips loser.
A new trader is baffled, surprised and even shocked. S/He does not understand as to why this pattern did not work this time? The pattern might look exactly identical but its unique its never happened before.
What you see is an an identical patterns yet unique at the same time. Its not the same patterns they are are similar but at the same time unique. You might think you woke this morning with the same person that you went to bed with last night but not only did the person next to you change over night you have changed as well.
... to be continued tomorrow Final Part (Click Here)
Correct Mindset of a Trader:
A trader with correct mindset will make a mediocre trading strategy look awesome but a trader with wrong mind set, will destroy a strategy with a very powerful edge.In my previous post I said that Trading is 80% mental, 10% goes towards money management skills and strategies and the rest is divided as 5% for entries and 5% for exits.
However sadly, 95% of traders put 80% of their efforts towards the 5% of the equation in trading and that is The Entries.
The Perfect Entry:
They want to make perfect entries. They want to nail those entries that bring winners 100% of the time, double confirmation, quadruple confirmation. Something to put their mind at ease before entering the trade, something that say "this trade is going to be a winner".Being Wrong or Right
However I have bad news for those traders. Sadly that is not gonna happen. Because trading is not a game of perfection. It is certainly not a game of being wrong or right. Oh no.You cannot manipulate things into your favour in the market. You cannot change the market not even a tiny bit. Trading is a game of probability.
The Self Similar Repetitive Pattern
You might have found a pattern in the markets and this might be a great thing for you. You'll be excited that now you will be able to better "predict" the market. But the reality is that all patterns have a certain "probability of success" attached to it. A certain pattern might give you an edge in the r form of 50% winners and 50% losers.You may win lets say 60% of the time or less using the same pattern, but the very same pattern that looked beautiful and produced 100 pips this time, that exact same pattern might appear again the next time still it may bring 15 pips loser.
A new trader is baffled, surprised and even shocked. S/He does not understand as to why this pattern did not work this time? The pattern might look exactly identical but its unique its never happened before.
What you see is an an identical patterns yet unique at the same time. Its not the same patterns they are are similar but at the same time unique. You might think you woke this morning with the same person that you went to bed with last night but not only did the person next to you change over night you have changed as well.
"Everything flows and nothing stays"
"You Cannot Step in the Same River Twice" .... Heraclitus
... to be continued tomorrow Final Part (Click Here)
Thursday, 22 January 2015
Double Confirmation - How to make winning trades Part 1
Part 1.
A good trading buddy commented about Double Confirmation or Additional Confirmation of a Trade Setup. It happened inside our Skype Live Trading Room.
Our friend said, "I found a new confirmation to get in Fruit, I shall trade it for a few weeks and let you know of the outcome"
My response was "What! What "New confirmation"?
He replied, "additional confirmation" and he said "it seems to be 70% in the right direction"
A Typical Trader's Mind Set
This is what a typical trader is after. "double confirmation" A way to predict the future. The question is, how can you confirm something that is just there in front you. And how can you find clue in the now that will confirm the future? When a new trader looks for confirmation he's actually looking for a confirmation that the trade will be a winner.Lets e.g. you take a trade entry setup, e.g. A Fruit signal or an AIMS Stress Free Trading The Setup 1 entry signal, with all 3 rules checked and ticked off. How can you then tell that future will bring exactly what you want. That is the confirmation. The trade setup itself is the confirmation. What else can you add to it so that you can improve the rate of success? The more important question is do we really need to be right more time than we are wrong?
Is it going to be a winning trade?
So I said that if we look for additional Confirmations this would suggest that we have the mind set of novice traders who wants to "make sure that the next trade is a sure shot winner". Most traders don't possess what Mark Douglas calls Probabilistic Mind Set. And a big portion thinks they possess that mind set but in reality they don't yet fully understand it and so they are unable to apply it.A beginner is always trying to hit that next winning trade. And this "need to know the future" is the biggest problem.
Keep it Simple - If it Ain't Broker Don't Fix it
I'd like to tell you one thing though no matter what anyone says, with whatever they can throw at me, I will NOT Add anything to my chart or change my technique. do you know why? Because it works. I don't need to change it, IT WORKSWhat is Additional Confirmation?
What is additional "confirmation"? I don't like the concept behind confirmation because Nothing can confirm "the future" and tell you the outcome of a trade entry signal. Be it AIMS The Fruit Signal or any other signal or entry mechanism. Is there a way to know the future? If these concepts are new to you prepare yourself for a complete turn around of your thought process. This is what we teach and share with you inside AIMS Forum. Successful traders "Think Differently".so I said, "You know that I don't give a s**t about how perfect the entry is? I place only 5% importance on entries?
The Mind
Because Trading is 80% in the mind. 10% is MM (Money management and position sizing strategies) and 5% exit, that leaves 5% for entries. So its 20% science. (the strategy i.e. a system rules pertaining to making entries, managing trades and exiting the trades) and 80% Art.AIMS is The Art of Trading Chaos!
.... to be continued tomorrow (Click here to Read the Next Part)Wednesday, 21 January 2015
3 Points to Consider before Choosing a Forex Trading System
When it comes to getting yourself into Forex trading, one thing you may be wondering about is
the Forex trading systems that are out there.
There are plenty of options to select from and even more opinions on if you should use them, how you should use them and which ones to use.
Before you can make a decision about this, you should consider what the trading system can actually offer to you and why it may or may not be the best option for your particular needs. Some systems are no doubt better than others.
There are many systems out there and some of them are definitely going to be a better option than others are. The key here is not to buy a system or use a free one, based solely on that factor but to know what to look for.
3 Things you need to consider before Buying a Forex Trading System
Before you give the thumbs up to a system please check if it gives you the following 3 things.
2. Next, consider how the Forex trading system addresses clear entry and exit signals. No matter which system you invest in, it is critical that you know that the system has these types of signals and that they work perfectly.
If this is in place, this means there is no chance for your emotions to come into your trading. You want there to be 100 percent mechanical rules in place to protect you so that you do not make bad decisions at the wrong moment. Well not 100% because that is not realistic when it comes to trading with you need to have a set of parameters "objectively" define for each situation in the market. e.g. What would you do if the market moves in an upward of downward trend but the trend is either too fast or too slow? What would happen if the market suddenly spiked 100 pips in your favour? etc
3. There should be some set of defined rules on stop loss size and placement. Money Management is KEY. Many trading systems you will find out there do promise to provide you with high returns. They may or may not be able to deliver on this promise. If they are going to deliver they need to have good money management rules in place.
You want there to be a stop loss placement so that you can avoid seeing your trading capital erased too fast based on just a few trades.
No matter what you chose, you have to have a Trading System because without it you'll be lost. Trading requires you to treat it like a proper business because it is a proper business and business planning is key to any successful business.
the Forex trading systems that are out there.
There are plenty of options to select from and even more opinions on if you should use them, how you should use them and which ones to use.
Before you can make a decision about this, you should consider what the trading system can actually offer to you and why it may or may not be the best option for your particular needs. Some systems are no doubt better than others.
There are many systems out there and some of them are definitely going to be a better option than others are. The key here is not to buy a system or use a free one, based solely on that factor but to know what to look for.
3 Things you need to consider before Buying a Forex Trading System
Before you give the thumbs up to a system please check if it gives you the following 3 things.
Match The System with Your Style of Play
1. The first thing you need to consider is that the trading system needs to work with your own style of play. In other words, no matter if you are a long term swing trader or if you are a short term day trader, the system needs to work for your particular goals and your particular needs as such. But the question is do you really know what is your "style of play"?2. Next, consider how the Forex trading system addresses clear entry and exit signals. No matter which system you invest in, it is critical that you know that the system has these types of signals and that they work perfectly.
If this is in place, this means there is no chance for your emotions to come into your trading. You want there to be 100 percent mechanical rules in place to protect you so that you do not make bad decisions at the wrong moment. Well not 100% because that is not realistic when it comes to trading with you need to have a set of parameters "objectively" define for each situation in the market. e.g. What would you do if the market moves in an upward of downward trend but the trend is either too fast or too slow? What would happen if the market suddenly spiked 100 pips in your favour? etc
3. There should be some set of defined rules on stop loss size and placement. Money Management is KEY. Many trading systems you will find out there do promise to provide you with high returns. They may or may not be able to deliver on this promise. If they are going to deliver they need to have good money management rules in place.
You want there to be a stop loss placement so that you can avoid seeing your trading capital erased too fast based on just a few trades.
No matter what you chose, you have to have a Trading System because without it you'll be lost. Trading requires you to treat it like a proper business because it is a proper business and business planning is key to any successful business.
You select the right one to use in your trading. A trader without a plan is heading towards disaster. Trading is a pattern recognition numbers game. You need an edge and that edge is provided by AIMS Stress Free Trading.
AIMS Stress Free Trading System Offers you answers to all of the above
AN OBJECTIVE ENTRY SYSTEM
- AIMS gives you a crystal-clear entry mechanism with a simple and easily understandable entry setup.
- AIMS Stress Free Trading takes the anxiety out of trading by applying three simple rules to create two clear entry setups.
- We know our entry level within a second.
A CLEAR EXIT MECHANISM
- AIMS Stress Free Trading exit setup offers two options of exiting with profit. One exit technique is for normal moving markets; the other is for fast moving markets.
SOUND MONEY AND RISK MANAGEMENT
- The success of the AIMS strategy is based on its sound money management techniques. Our money management and risk control helps us increase our return on investment.
- AIMS money management and risk control take into account the market conditions. The AIMS strategy allows you to increase profitability when you have winning trades and give little away when you have a negative trade.
- AIMS techniques allow you to control your risk to a bare minimum and provide a potentially higher risk-reward ratio.
THE MIND
- We believe that trading is at least 80% mental. The ultimate goal of a trader is to achieve the state of
- “Knowing without Knowing how You Know”. It is that mental state that we call “The Zone”.
- The correct mind-set and attitude is the key to trading success. We have two simple techniques to help you remain calm and stress free during trading.
Tuesday, 20 January 2015
3 Forex Pairs For Beginner Forex Traders
As you start your Forex career, or even if you are just testing the waters, you will want to focus
on pairs that can provide you with the highest amount of profit without being as risky as some others are.
The key is to know what your options are and to know which pairs of currencies are the best to focus on. With many different pairs out there in currency, it is easy to get overwhelmed and confused, long before you actually find yourself making a profit.
For this reason, it is best to stick with the following three pairs because they provide the best results for most people.
EUR/USD - The Euro Dollar
Friday, 16 January 2015
How to Trade Like Neo from The Matrix
How to Trade Like Neo? Well, to trade like Neo you have to See the Market for What IT IS. You have to see the "Reality" of it and break through the "Illusion". To find out What Creates the illusion, where is the illusion and what is the Illusion read on.
(This article is created from Chat Messages from our Live Skype Trading Room Today)
I know why, because most of us are afraid. We are scared of trading. And on the flip side of the coin there are traders who are completely reckless. You cannot see trading success, consistent trading success until you achieve a certain state of mind that allows you to hit your "Peak Performance".
The next time you take a trade try this.
As soon as you've entered a trade watch yourself, observer if you are stressed, observe if there is any feeling in your tummy, or if you're tense and there is tension in your muscles, are you crunching your tummy, are your shoulders relaxed or tight. The moment you bring your attention to your body you will feel it. Now take a deep breath and allow your muscles to relax. and say this aloud
There are so many opportunities to make money in the market. Why are we not all making loads of money and going crazy?
(This article is created from Chat Messages from our Live Skype Trading Room Today)
I know why, because most of us are afraid. We are scared of trading. And on the flip side of the coin there are traders who are completely reckless. You cannot see trading success, consistent trading success until you achieve a certain state of mind that allows you to hit your "Peak Performance".
The next time you take a trade try this.
As soon as you've entered a trade watch yourself, observer if you are stressed, observe if there is any feeling in your tummy, or if you're tense and there is tension in your muscles, are you crunching your tummy, are your shoulders relaxed or tight. The moment you bring your attention to your body you will feel it. Now take a deep breath and allow your muscles to relax. and say this aloud
" I don't care if its a winner or loser I just want to follow my rules."
Monday, 12 January 2015
AIMS Member Doubled Live Account in 3 Months
Congratulations to SILAS for Doubling Live Trading Account.
Silas from Germany started trading AIMS Strategy in October 2014 and he managed to double it by the start of January this year. It took roughly 3 Months to Double Live Trading Account
I just wanted to Share this good news, certainly not the first one who used #AIMS Stress Free Trading to double their account but it surely is something worth sharing, celebrating and rejoicing. woohooo!!!! Silas ... You're Fab!
Silas from Germany started trading AIMS Strategy in October 2014 and he managed to double it by the start of January this year. It took roughly 3 Months to Double Live Trading Account
I just wanted to Share this good news, certainly not the first one who used #AIMS Stress Free Trading to double their account but it surely is something worth sharing, celebrating and rejoicing. woohooo!!!! Silas ... You're Fab!
Congratulations to SILAS for Doubling his Account.
Saturday, 10 January 2015
Consistency is Everything
I just want to say, Consistency is everything.
Trading is ALL about Consistency. If you find a system, you do reasonable backtesting and some forward testing and you find that it gives you a statistical advantage (an edge) then the next step to take is simple. Just trade it.
One must stay consistent. IF you keep adding or deleting indicators to your chart day in a day out you probably are not consistent. And how can you be consistent if you keep changing the environment for your mind and your eyes. Your eyes must see the same picture over and over and must not expect changed picture everyday. Meaning, if you keep using different templates on a weekly or daily basis, consistency will be hard to achieve.
Beware The Template Syndrome: So I urge everyone to select a template and then forget about other templates. If you're like many of us, you probably have over a dozen templates in your mt4. I've seen some people when they click on their templates button two or 3 columns appear, yes hundreds of templates. But that leads to nothing. Our first indicator is price, you can add 2-3 more derived indicators anything more than that would just complicate things. Trading is ALL about consistency. and "Consistency = Patience + Discipline. "
If you want success in trading you must treat it as a business. You must be thorough. You must keep a journal and record everything. Accurate recording leads to better faster learning and helps with consistency. In a phrase successful trading is nothing but acquiring a personality trait. Being Consistent.
Trading is ALL about Consistency. If you find a system, you do reasonable backtesting and some forward testing and you find that it gives you a statistical advantage (an edge) then the next step to take is simple. Just trade it.
One must stay consistent. IF you keep adding or deleting indicators to your chart day in a day out you probably are not consistent. And how can you be consistent if you keep changing the environment for your mind and your eyes. Your eyes must see the same picture over and over and must not expect changed picture everyday. Meaning, if you keep using different templates on a weekly or daily basis, consistency will be hard to achieve.
Beware The Template Syndrome: So I urge everyone to select a template and then forget about other templates. If you're like many of us, you probably have over a dozen templates in your mt4. I've seen some people when they click on their templates button two or 3 columns appear, yes hundreds of templates. But that leads to nothing. Our first indicator is price, you can add 2-3 more derived indicators anything more than that would just complicate things. Trading is ALL about consistency. and "Consistency = Patience + Discipline. "
If you want success in trading you must treat it as a business. You must be thorough. You must keep a journal and record everything. Accurate recording leads to better faster learning and helps with consistency. In a phrase successful trading is nothing but acquiring a personality trait. Being Consistent.
Let this be your new years resolution. To remain consistent so that you may find success and remain consistently profitable.
Wednesday, 7 January 2015
Do you feel betrayed or angry at the market when it goes against you?
If you do, and I know most of us experience those feelings, let me ask you a question. Do You feel the same way when you toss a coin? You called heads but its tails,do you feel betrayed by the coin? If you are playing a slot machine and time and time again you don't get what you want do you feel betrayed by the machine? I'm sure your answer is absolutely not.
When the pattern shows up, e.g. S1 Setup, you have to take it just like you're willing to flip a coin. "trading a technical pattern like ours has nothing to do with being right and wrong, this is not a right or wrong game" its just an odds game. Trading a technical pattern is exactly that. It gives you odds in your favour but not per "attempt" or "trade".
Odds in your favour, what does it mean?
And the odds in your favour are not per trade. You have to understand this, that you have odds in your favour over a series of trades not per trade.A Setup is a Setup is a Setup
Traders often mistakenly think that when the "pattern" e.g. The Setup 1 presents itself that they get odds in their favour which means "I will win the next trade because its a GOOD Setup". The reality is that Setup 1 or any other pattern, The Fruit or Seed, Trend lines or whatever repetitive pattern you've found in the market is just that, a pattern that repeats itself. A pattern is a pattern. It does not give you an edge in terms of your ability to win this particular trade or your next one. However it does give you a edge , it gives you odds in your favour in terms of your total winnings be more than your total losses. It means that at the end of a series of trades your overall balance will be positive. But this largely depends on your ability to stick to the plan. You cannot count trading mistakes, which means not following your rules, in this series of trades.How sure am I if I will win my next trade?
Traders often mistakenly believe that their method is telling them that the next trade will be a winner that their method is telling them what's going to happen next? I cannot guarantee that, i cannot even have any idea so that I could tell at all, whether my next trade will be a winner or a loser. I can say with certainty that if you follow this pattern at the end of 20 or 50 trades your overall winnings will be more than you've lost. This is Trading. Trading is a pattern recognition numbers game.Its Easy to Trade, Its easy even to find a good winner, everyone finds a winner every now and then, however its not easy to make consistent gains unless you've addressed the mind issue which is "Fear of Trading". Unless you've understood the fundamental fact about trading. Trading is an odds game and you have to play by the rules. Unfortunately our fears in our minds always block our way towards consistent success.
AIMS Stress Free Trading - Activating The Zone
If you're scared, if you're not making money, you've got to get this eBook. Previously only available to Premium Members inside AIMS Forum now available to download right now.
Monday, 5 January 2015
2 Ways to Deal with Fear and Greed
We follow a statistically proven edge. It really does not matter how many trades you lose. What matters is how many winning trades you let run. Any system that relies on higher %age win will eventually fail. That is because the probability of any Technical Study, Setup in the "long run" is only 50%. When we trade any setup we have 50% chance of Success. So how do we make money?
We make money by minimising our negative trades and milking the winning trades. But unfortunately the human nature of "Survival Mechanism" back fires in trading environment. It is responsible for keeping us safe and alive on this planet or the universe but sadly in trading it does the opposite.
Thoughts/Feelings of Hope Mechanism:
When we trade a setup and market moves the opposite way, our mind starts using a Feeling that is very useful and vital to our "Psychological and Emotional Health". The "Hoping Mechanism" activates thoughts of Staying Positive, Expect the Best, Its all going to be fine, Its going to turn around,". These thoughts and feelings are not required at this stage.
The Fear Mechanism:
This is mechanism is in our left brain. We undergo this phase just before getting in to a trade. It activates when we sense there is an opportunity. The mind interprets this as a danger. It does so by retrieving information from its database matching it with similar "past occurrences".
It activates thoughts of, "What if its a loser?, I don't want to have another loser, I've had too many losers, Is it going to work? The system is not working and don't know what to do? The last time I traded around 3pm it went the other way? I don't know what's going to happen?
The left brain is the concious part of our brain. Unfortunately it hates "unpredictability". It cannot deal with situations where the outcome is uncertain or low probability. Since 50% is not a high probability occurrence we feel this uneasy, unpleasant situation.
When in Profit it activates, " Protect your gains before they vanish" , "What if it turns around and you end up losing and give back all this profit", "best to take the most out of it" " have enough profit now lets bail".
This list is just the beginning. it comes in many forms and manifestations.
If we let the human survival mechanism take charge and let it run on Auto we are going to end up where the rest of the 95% traders end up. This is counter productive in trading.
What do we do? How do we get rid or at least press the "Pause" button for our Survival Mechanism while we trade.
We certainly cannot afford to get rid of this system entirely. Because our ordinary life depends on this but not so much in this modern world. This discussion is beyond the scope of this post.
The answer is to do exactly the opposite.
When in a trade that goes the other way, we exit quick and when in a trade that makes profit let it run.
How to achieve this:
We would use our minds internal mechanism by learning to activate responses manually. Dont let your mind;/brain run on Auto. Take charge. This is what Stephen R Covey calls Habit 1"Be Proactive.".
Choose your response. He also puts it nicely like this,
How do we do that?
When in a trade and price does not breakout properly and is approaching your exit point, reject the hoping and pampering thoughts. You cannot reject a feeling without replacing it with another. Remember you must have at least one feeling/thought at a given moment. So we accept Fear. Use fear to your advantage. Get scared and exit according to your exit signal. The predefined exit point you chose before entry or if it has changed during the progression of the trade then follow that exit spot.
Brave people do not have fear? Absolutely wrong. They know how to deal with Fear. Its like saying that a black smith is not scared of Fire. Or a soldier is not scared of death or a bullet. Oh yes he is. He is, more than we are. Because he knows alot more about it than us. But he knows how to deal with it.
So learn to deal with your fear. and then use it to your advantage. So DO NOT BE BRAVE when price says EXIT HERE with LOSS. Be Brave to Accept Fear and get out.
On the contrary when price goes your way Reject the Fear and in place of Fear Activate/Accept the Hope Mechanism. Let it run and hope for the best. and when the system generates an exit signal that means Exit with Profit then Exit immediately.
Here is another treat for you.
As soon as you are about to exit with profit the left brain does its final "what it thinks is a favour to you" Trick. It does that by presenting to you the "Hope Mechanism" one more time. It says stay in a bit longer its going fine. Remember last time, you exited to soon. What if it continues. Reject that and accept the system generated exit signal. By not following this profit taking exit signal your actions are motivated with "Greed".
It is evident that we cannot get rid of feelings of "Fear, Greed, Fearlessness or Bravado, and Hope". These are parts of our structure. These things are a Fact and they will not cease to exist as long as the human mind exist. Our job is to learn to use them appropriately, not to get rid of them.
The best way to achieve the following is to exercise the power of "Staying in the Now". More on this in the book below...
We make money by minimising our negative trades and milking the winning trades. But unfortunately the human nature of "Survival Mechanism" back fires in trading environment. It is responsible for keeping us safe and alive on this planet or the universe but sadly in trading it does the opposite.
Thoughts/Feelings of Hope Mechanism:
When we trade a setup and market moves the opposite way, our mind starts using a Feeling that is very useful and vital to our "Psychological and Emotional Health". The "Hoping Mechanism" activates thoughts of Staying Positive, Expect the Best, Its all going to be fine, Its going to turn around,". These thoughts and feelings are not required at this stage.
The Fear Mechanism:
This is mechanism is in our left brain. We undergo this phase just before getting in to a trade. It activates when we sense there is an opportunity. The mind interprets this as a danger. It does so by retrieving information from its database matching it with similar "past occurrences".
It activates thoughts of, "What if its a loser?, I don't want to have another loser, I've had too many losers, Is it going to work? The system is not working and don't know what to do? The last time I traded around 3pm it went the other way? I don't know what's going to happen?
The left brain is the concious part of our brain. Unfortunately it hates "unpredictability". It cannot deal with situations where the outcome is uncertain or low probability. Since 50% is not a high probability occurrence we feel this uneasy, unpleasant situation.
When in Profit it activates, " Protect your gains before they vanish" , "What if it turns around and you end up losing and give back all this profit", "best to take the most out of it" " have enough profit now lets bail".
This list is just the beginning. it comes in many forms and manifestations.
If we let the human survival mechanism take charge and let it run on Auto we are going to end up where the rest of the 95% traders end up. This is counter productive in trading.
What do we do? How do we get rid or at least press the "Pause" button for our Survival Mechanism while we trade.
We certainly cannot afford to get rid of this system entirely. Because our ordinary life depends on this but not so much in this modern world. This discussion is beyond the scope of this post.
The answer is to do exactly the opposite.
When in a trade that goes the other way, we exit quick and when in a trade that makes profit let it run.
How to achieve this:
We would use our minds internal mechanism by learning to activate responses manually. Dont let your mind;/brain run on Auto. Take charge. This is what Stephen R Covey calls Habit 1"Be Proactive.".
Choose your response. He also puts it nicely like this,
"Between Stimulus and Response is your Freedom to Choose" ....Stephen R Covey.
How do we do that?
When in a trade and price does not breakout properly and is approaching your exit point, reject the hoping and pampering thoughts. You cannot reject a feeling without replacing it with another. Remember you must have at least one feeling/thought at a given moment. So we accept Fear. Use fear to your advantage. Get scared and exit according to your exit signal. The predefined exit point you chose before entry or if it has changed during the progression of the trade then follow that exit spot.
Brave people do not have fear? Absolutely wrong. They know how to deal with Fear. Its like saying that a black smith is not scared of Fire. Or a soldier is not scared of death or a bullet. Oh yes he is. He is, more than we are. Because he knows alot more about it than us. But he knows how to deal with it.
So learn to deal with your fear. and then use it to your advantage. So DO NOT BE BRAVE when price says EXIT HERE with LOSS. Be Brave to Accept Fear and get out.
On the contrary when price goes your way Reject the Fear and in place of Fear Activate/Accept the Hope Mechanism. Let it run and hope for the best. and when the system generates an exit signal that means Exit with Profit then Exit immediately.
Here is another treat for you.
As soon as you are about to exit with profit the left brain does its final "what it thinks is a favour to you" Trick. It does that by presenting to you the "Hope Mechanism" one more time. It says stay in a bit longer its going fine. Remember last time, you exited to soon. What if it continues. Reject that and accept the system generated exit signal. By not following this profit taking exit signal your actions are motivated with "Greed".
It is evident that we cannot get rid of feelings of "Fear, Greed, Fearlessness or Bravado, and Hope". These are parts of our structure. These things are a Fact and they will not cease to exist as long as the human mind exist. Our job is to learn to use them appropriately, not to get rid of them.
The best way to achieve the following is to exercise the power of "Staying in the Now". More on this in the book below...
Want What the Market Wants
Get Our Unique and Updated Book on How to Get into The Zone
AIMS Stress Free Trading - Activating The Zone
Thursday, 1 January 2015
6 Practical Ways to Be More Peaceful this New Year 2015
Why not find inner peace this new year 2015? – 6 Practical Ways to Be More Peaceful
1. Let go of the need to interpret the actions of others.
This is my favorite tip for finding inner peace: stop trying to decipher what others meant when they did this or said that! This need to figure out what people really meant by their words or actions will drive you to distraction — and not to mention the effect it has on others. I need to take this tip a step further, and let go of my habit of ruminating on what I said to others and what they think of me. Finding inner peace is about accepting yourself and others for who you and they are.2. Replace worry with freedom.
Worrying about the future and things we can’t control (or even things we can control) isn’t any way to be more peaceful. Worry may be natural to us as human beings, but it’s unnatural to us as spiritual beings. Whether or not you have faith in God, find ways to release worry, anxiety, fear, and doubt. Prayer and meditation helps you find inner peace by reminding you that life is more than the things you worry about.3. Accept – and even enjoy - every moment in life.
A key to finding inner peace is to learn to flow with events and people instead of fighting them. Flowing with even the most difficult moments in life involves not taking things so seriously, letting go of critical or negative thoughts, accepting that there is no one right way for life to unfold, and believing in yourself.
4. Avoid toxic or negative energy.
Do you know someone who likes to pick fights, or who sees flaws and weaknesses everywhere? Are you that person — perhaps an emotional vampire? Instead of finding fault or being critical of who and what you see, practice seeing things and people without judging them. Be child-like, and see things as they are.
5. Connect to the hearts and souls of other people.
The more love you give and receive, the more connected you feel…and the more inner peace you’ll find. To connect with others, initiate heart-to-heart conversations. Ask people what they think and how they feel – and listen to their answers. Spend time in nature, even if it’s in the arboretum in your office building at lunch!
6. Act spontaneously – and don’t be paralyzed by fears from the past.
I love this tip for finding inner peace: don’t let the past stop you from being authentic and real right now. Dr Wayne Dyer calls your past “the wake”, and says it can’t pull you forward…it can only hold you back. Of course you need to deal with problems from your past, but you can’t let those problems paralyze you. Instead, follow your intuition and act spontaneously in the moment.
And, one last way to be more peaceful in this world…
We wish you a Happy, Prosperous and Peaceful Year
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