What Kenny Rogers Can Teach You About Day Trading

Guest post from visionsofaffluence.com

You got to know when to hold ‘em, know when to fold ‘em

Know when to walk away, know when to run

These are the lyrics to what many consider to be a great song, The Gambler by Kenny Rogers. Despite the obvious poker reference the message in these lyrics contains knowledge that applies to many areas of life. Indeed, knowing when to walk can save you lots of time and aggravation, and in the case of trading it can save you a whole lot of money.

Too often traders find themselves taking a loss and then immediately jumping right back into the market and ending up losing again only to jump back into the market in an attempt to recoup losses only to take another loss and before you know it the trader has loss a nice chunk of his account. Now why does this happen? Well quite simply it’s because the trader feels that he needs to keep trading to make his money back even though by continuing to trade he is only making matters worse. This is where the wisdom of Kenny Rogers comes into play because if these traders knew when to walk away they would keep themselves from losing even more than they already have.

Even though this is the trading business sometimes the best thing to do is to refrain from trading. If you have taken a string of losses don’t keep trying to force a winning trade, instead you should stop trading and then come back later and analyze your actions to find out what you were doing wrong. This will help you not only because it will keep you from extending your losing streak, but also because it will help you to learn from your mistakes so that you will be less likely to make them again. So the next time you find yourself down on the day and itching to jump back in to another trade I want you to pause for a moment and think to yourself, what would Kenny Rogers do?

If you want to discover what it takes to be able to trade for a living. Then visit visionsofaffluence.com

Money Management: The Most Important Aspect of Day Trading

If you expect to make it in the trading business then you need to keep your eye on how much you are risking per trade. I don't care how great your day trading system is if you don't control your risk then your days as a trader are numbered. Instead of worrying about how much you stand to make on that next trade you need worrying about how much you stand to lose if it goes south. By focusing on what you stand to lose on each trade you will ensure that you never end up in a situation in which you have let greed force you to risk too much on a single trade and put your capital at risk.

In order to combat that you need to have a trading system that has defined levels of risk per trade. Most traders will tell you to keep your risk between 2-3% per trade which seems to work for most traders, but there are some that keep their risk per trade even lower, as low as 0.5% per trade. For these traders the low returns are worth it to ensure that even if they suffer a horrible losing streak they will be able to continue trading. You have to find the risk level that works for you, the level at which you will be able to trade objectively and not be so afraid of losing that it causes you to make mistakes.

How To Day Trade Like A Wall Street Ninja

If you have ever dreamed of being able to day trade with the same skill and confidence as the guys on wall street then you have come to the right place. I am going to give you some great tips that are sure to help you become a better trader in no time. So, without further ado here they are:

1. Develop a trading plan.

As with any other business if you don't have a plan for your trading then your failure is pretty much guaranteed .If you trade without a plan then you will essentially be gambling on the market and that is no way to trade if you are serious about this business. A good trading plan will have defined rules that tell you: when to take a trade, how much to risk, and when to exit a trade. Without a trading plan there is no way that you will ever be successful, and you would be better off spending your money on lottery tickets, becasue at least then you will have a chance at making a profit.

2. Learn To Accept Losses.

One of the most difficult things for new traders to wrap their heads around is that losing is an inevitable part of being a trader. There is no such thing as a trader that never loses, and if you think you are going to trade without ever taking a loss, well then I have some magic beans I want to sell you. The truth is that losing is all a part of the game that you have to accept as a cost of doing business. This is one of the things that separate the elite traders from everyone else. Elite traders take a loss. shake it off, and keep it moving becasue they know that its inevitable, so instead of feeling bad and giving up they instead use it as a learning experience so that they wont make the same mistake twice, and this is exactly what you need to do.

3. Use Proper Money Management.

If you want to last in the trading business then you are going to have to learn to control your risk. It is imperative that you resist the urge to trade to maximize gains and instead you should trade to minimize losses. You must learn to treat your trading capital as if it is someone that you love. You wouldn’t risk a family member’s life would you? So then you shouldn’t risk your capital unnecessarily because without your capital your trading career is finished.Limit your maximum risk to between 2-3% per trade and even if you suffer a bad losing streak you will survive to trade another day.

4. Don’t Be Greedy

There are going to be times when you open a trade and the market immediately takes off in your direction giving you good profits. Now you are going to be tempted to let the trade run in an attempt to grab more profits from the market, but this is dangerous becasue at on moment the market can reverse and erase all of your gains and even leave you with a loss. In order to combat this you need to take profits when you have them instead of allowing your greed to cause you to hold on looking for more profits. If you feel like the trade can go further then close out half of your position, move your stop to break even, and let the other half run. Doing this stops you from taking a loss while also ensuring you will profit if the market continues to move in your direction, but best of all you will have already banked profits so no matter what happens you will come out a winner.

If you are serious about day trading then these tips are sure to help you become a better trader. Just take them and apply them to your trading consistently are you will be well on your way to becoming a elite trader.

If you want to discover what it takes to be able to trade for a living. Then visit visionsofaffluence.com

The Forex Day Trading System That Helped Me Quit My Job

Now I don't normally do this but I have come across a forex day trading system that has truly changed my life. With its awesome power I was able to start making real profits in the forex market and eventually as my profits started to mount up I was able get out of the 9-5 grind. I am so lucky to have stumbled upon this site one night and now I want to share this luck with you so that you can succeed just as i did after struggling for so many years to get a grasp on forex trading.

The forex day trading system I'm talking about can be found at VisionsofAffluence.com and I guarantee if you try it out you wont be disappointed. You see the system is based entirely on price action which means that your analysis will be moving in lock step with the movement of the market. This will give you a tremendous advantage over traders that rely on lagging indicators, becasue you will be able to get in on moves before they even know they are occurring. You will be taking profit while the rest of the world is just getting in on the move. This means that you will be able to make more profits in less time, and will be on the way to trading for a living in no time.

And wait i forgot to tell you the best part. Not only is this a forex day trading system but it can be used for ALL MARKETS and on ALL TIME FRAMES. So, after you have conquered the forex market with this powerful system you will be able to move onto stocks, commodities, futures, and more, to put it simply if you can trade it from a computer then this system will work for it guaranteed or your money back. That's right if you try this system and it doesn't do what it says it will then your money will be refunded to you no questions asked. So you really have nothing to lose by giving it a try.

I know it sounds like I'm hyping this system but its only becasue I enjoy helping people and seeing them succeed. You see before I was a full time trader I was a teacher so I take tremendous joy in helping others and knowing that had a part in their success. I know how good this system is and the power it has to change your life and I want you to take advantage of it. So head on over to VisionsofAffluence.com and tell them Michael sent you ;-)

This Amazing Technique Will Kick Your Trading Into Overdrive

Here Is Technique That Is Guaranteed To Help Your Trading

It's Called An Inside Candle Breakout

An inside candle occurs when the body of a candle is contained entirely within the price action of the previous candle.





The third candle from the left is the candle that is containing the four candles following it. The arrow pointing to the fifth candle shows where a breakout occurred as price was able to close outside of the containing candle. A long trade entered here would have been very profitable. Notice also the pink lines at the highs and low of certain candles. Also, notice how whenever a candle closes outside of one of these lines price continues to move in that direction.

So, the rule for trading inside candle breakouts is to open a trade in the direction of the break. If the breakout is at the low you sell, if it’s at the high you buy it's that simple

Now Lets Look At Some Charts To See How Well This Pattern Works

Here is a chart of the Eur/Usd



The yellow lines represent the highs and lows of the containing candle and the yellow arrows show where the breakouts occurred. The first breakout gave a small gain but look at the second and how the market moved down hard. Imagine all that cash being deposited straight into your account.

The best part about this technique is that it works for all markets including:
Stocks, Forex, Commodities, and Futures.So take this technique and use it to master the markets and start your journey towards financial independence.