MASTERING THE PERFECT ENTRY SKILLS...

Why everytime I enter a position, it is definitely in red and negative position? Losses are inevitable and it seems that I always get it wrong all the time, 9 out of 10 times...

Sounds familiar?

Yes, this is the most prevailing questions among new traders including me. At times, I track the frequency of this happening and it seems that it almost happen all the time. Isn't there a way for us to time our entry well and get the position right 9 out of 10 times instead?

From my experience, I strongly believe this is the No 1 reason to why traders always take their profit earlier than they supposed to. The psychological effect on taking losses everytime a trade is open makes one become a "loserphobia" and hence cannot stand the risk of looking at a winning trade that could turn to a loser. As a result to this, even if they make a perfect entry later on that could roll in hundreds of pips (& dollars) into their trading account, they tend to enjoy the climax too soon and later couldn't get the same entry position again.

Hence, in order to have a full control on this phenomenon, I suggest new traders to do the followings in order to get themselves comfortable with risks and reward factors in trading, thus mastering their entry skills at the same time.

1. Schedule your trade accordingly. Have a detail weekly trading hours planned upfront. Say during London open until close, Tuesday till Friday.

2. Set a daily pips target against maximum threshold limit for losses. (say target 100 pips and max loss is 100 pips). Once you reach either of this, you STOP! Even when you feel like stop, you stop, since it is not necessary for you to trade for the sake of trading. We trade to make money, no others.

3. Identify major weekly economic events. Time of release is all that matters since you may want to avoid trading the news if you do not know how.

4. Look at the watch everytime you plan to open a position. Entering at 15 minutes to 1hr interval is always the best.

5. Eventhough you are an intraday trader or scalper, do NOT overlook the monthly, weekly and daily candlesticks as well since this shows the major bias between buyers and sellers. A doji candle should be a clear sign of cautions as both buyers and sellers are at equal strength.

6. Avoid using too many indicators as simpler is always better. At times, I just trade by analyzing the 15M to 1hour candlesticks price action as that is all that matters. Once entered, all you need to know is either the price is going with or against you. Indicators are mainly used prior to our entry decisions. Afterwards, indicators are useless as market can go wherever and whenever it wants to.

7. Develop the "feel" for the market. Emphatize the crowd. The chart is telling you a thousand words. Say if no one is buying, why should you? and vice versa... You must know when to strictly use technical indicators and when to use your discretionary instincts prior to placing any trade.

Remember that trading is an art, it is not a pure science. To master certain skills in trading is all about getting the right teacher and experience in learning them dilligently. The experts may disagree with me but I am telling you that when it comes to your money, you shouldn't trust any other expert than yourself.

So, if you ever think about making real money in this forex world, be an expert yourself as you soon will discover that there is no place for average traders to survive in this forex market. Kill or be killed... it may sound brutal but that is the fact for sure...

;)