Five Qualities Of Successful New Traders

"In your opinion what are the starting qualities needed to be a great trader?"Let's not complicate the process, because different kinds of trading require different skill levels. For example, many of the best hedge fund portfolio managers have superior analytical skills and abilities to detect setups that retail traders can't. Many of the best market makers have an uncanny speed of mental processing and level of concentration that enable them to stay on top of order flow throughout the day. This is why I emphasize, that matching one's style of trading to one's strengths--talents and skills--is an essential component of success.

If I had to identify qualities that distinguish "starting qualities" that are important across all traders, the following come to mind:

1) Capacity for Prudent Risk-Taking - Successful young traders are neither impulsive nor risk-averse. They are not afraid to go after markets aggressively , when they perceive opportunity;

2) Capacity for Rule Governance - "Successful" young traders have the self-control needed to follow rules of stress-battle, including rules of position sizing and risk management;

3) Capacity for Sustained Effort - Successful young traders can be identified by the productive time they spend on trading--research, testing systems, preparation, work on themselves,Consciousness--outside of market hours;

4) Capacity for Emotional Resilience - All young traders will lose money early in their development and experience multiple frustrations. The successful ones will not be quick to lose self-confidence and motivation in the face of loss and frustration,which gives them edge over emotional traders;

5) Capacity for Sound Reasoning - Successful young traders exhibit an ability to make sense of markets by synthesizing data and generating market and trading views. They display patience in collecting information and do not jump to conclusions based on superficial reasoning or limited data.

Finally, I would say that successful developing traders approach their work with a kind of humility. They don't know it all and they don't pretend to know it all. They absorb wisdom from mentors and markets, and they are quick to acknowledge when they're wrong, so that they can get out of bad positions and learn from their experience. Show me a stubborn young trader with a defensive ego, and I'll show you one who will fight his or her learning curve every step of the way, with predictably poor results.

If you want to identify potentially successful young traders, look at their trading journals and gauge the amount of time they spend behind the screen. The good ones will have detailed entries about markets and about themselves, with constructive ideas, goals, and feedback. The less successful traders will have sparse entries that display little effort or analysis, with no goals, no constructive direction. The good ones watch markets closely, even when not trading. The less successful ones find little reason to watch markets if they don't have a position.

Effort alone won't make a trader successful, but lack of it will almost certainly ensure failure.

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Price Action Basics Educations purpose

Strong holders vs weak holders

Ok, now if we have distinguished weak holders from strong holders. And what we really have to do - we want to know, at least to assume what professional players are doing. By professional players I mean dealers or institutions that have to consistently deal with big volumes and give their clients at least average good fills. Institutional activity When we are talking about institutional activity, we are talking about strong holders. That guys have almost unlimited buying power at their disposal, but it doesn't mean that they want take money from you, they usually have large order from their clients. It not always means that they want to purchase from weak holder, squeeze them and hunt for their stops. They just want to accumulate position not squeezing price against themselves. First of all, if you look at this chart, how do think, where (on what prices) institutional player was buying (if he was buying at all here)?

Expected answer is that they were buying at lower level. But think about their volumes. They are big enough, and they simply would not have enough liquidity to build a position there. They usually have to accumulate - to buy several times, to absorb somebody's sell orders. Otherwise they will not have enough liquidity and make prices grow immediately So, their buying will be distributed within whole trading range:

And the first clue of institutional activity is acummulation on moving market (rising or falling market). They don't have enough order flow going down to absorb, so they have to squeeze prices a bit, but nevertheless they have good average price, not the worst of the period. It's a wave-like process. It ends with a breakout

Forex Trading Strategies l Shift in Value in strong trends offer continu...

Forex Trading Strategies lHow to identify price trend reversals

Shift in Value in strong trends offer continuation

I have stated in my earlier posts that it is always necessary to see what market is doing in strong trends and some strong points to note down that If there is still "shift in Value" on neutral days, means that there is still Imabalance there in the market and recent rally IN usd/cad point out the same scenarios

Shift in Value Or Demand

You can clearly see in the chart that market has offered continuation when paradigm shift to the low side again on a neutral day and Market traps enough traders to cover in the long entries or go short with the momentum and Price has again market up and even with strong force.

Although it is not easy to visualize such entries but it should be a part of your trading strategies when you try to trade basic supply and demand but there are few points that you need to cover when you decide to trade shift in Value.

* Market should be in strong trend already

* There should not be strong sell-off (strong sign if sell-off days ends up as Neutral day)

* First sign of shift In value should be there After primary breakout

* Price is usually Marked up again without testing the shift in Value