Tag Archives: forex education

Why the Japanese Yen’s Bull Run REALLY Ended

Monetary “Yentervention” did not cause the currency’s depreciation — it only COINCIDED with it

By Elliott Wave International

Talk about “star” wars.

“Asia’s biggest action star” Donnie Yen was just cast in the next installment of the never-ending Star Wars movie franchise. Mr. Yen, in case you aren’t aware, is known as “the strongest man in the entire universe.” (Huffington Post)

It wasn’t that long ago you could say a similar thing about the Japanese yen. Count three years back, to 2012, and the yen looked like the strongest monetary unit in the financial universe, standing at an all-time record high against the mighty U.S. dollar, the world’s “reserve” currency.

Flash ahead to now (circa September 2015), and the yen is down 30% whilst clinging to its lowest level against the dollar in 12 years.

So, what changed?

Well, that depends on whom you ask. According to the mainstream pundits, one main “force” has drained the yen of its superstar status: the almighty “Light S-ABE-R.” Or, in non-geek terms, Japan’s Prime Minister Shinzo Abe, who’s been shaping the country’s monetary policy. See:

“Abenomics Propels Yen’s Weakness” (Financial Times)

And: “Japan Bulls Rest Hopes for Yen Weakening on Abenomics” (Bloomberg)

There’s just one flaw in that logic:

The yen’s record-shattering bull run ended in late 2011 — more than a year before Abe took office in January 2013!

What’s more, Abe did not implement his “three arrows of fiscal stimulus, quantitative easing, and deregulation” — the factors widely held “responsible” for the yen’s weakness — until later in his term as Japan’s Prime Minister.

Now, let’s go back to the very beginning, to late 2011, and examine the yen’s broader trend through the lens of Elliott wave analysis. Here, we come to our November 2011 Global Market Perspective (GMP), where our Senior Currency Strategist, Jim Martens, identified a historic, decades-long Elliott wave “ending diagonal” pattern on the yen’s price chart.

As its name implies, an ending diagonal is found at the termination points of larger wave patterns, indicating exhaustion of the larger trend. When an ending diagonal … well, ends, the prices reverse and carry to the pattern’s origin — or even further.

The terminal nature of ending diagonals fortified the November 2011 Global Market Perspective’s bearish yen/bullish U.S. dollar forecast:

“USDJPY has been falling since June 2007 in a thrust from a [4th-wave] triangle that would end an impulsive decline lasting at least 40 years. The thrust [lower] has been unfolding as an ending diagonal, and as such, an abrupt turn [higher — towards weaker yen and stronger dollar –] should come as no surprise.”

The rally indeed took off the 2011 low, yet took a while to warm up. But, by January 2013 — coinciding with Prime Minister’s Abe taking the office — Global Market Perspective confirmed a long-term reversal was now underway:

“The recent advance in USDJPY since September [2012] is typical of third waves. There will undoubtedly be pauses along the way but next year or so [i.e., in 2014] should easily see USDJPY in the 124.16 area.”

This final chart captures the full extent of the USDJPY’s three-year long, 30%-plus uptrend:

Bottom line: Abe’s monetary “Yentervention” did not cause the yen’s depreciation; it coincided with a terminating Elliott wave ending diagonal pattern on the USDJPY’s price chart, which called for an upward reversal (towards weaker yen and stronger dollar).

True story.

You’ve just seen how invaluable Elliott wave analysis can be in clarifying long-term trend changes before they occur — and regardless of the political and economic factors.

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This article was syndicated by Elliott Wave International and was originally published under the headline Why the Japanese Yen’s Bull Run REALLY Ended. EWI is the world’s largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.

The 2 Most Important Keys to Successful Trading

Examples from Whole Foods Market (WFM) and Reynolds American, Inc (RAI) show you what to do (or not) to trade successfully with Elliott.

By Elliott Wave International

After 20 years of experience applying Elliott wave analysis in real markets, our Senior Analyst Jeffrey Kennedy says that it remains the only tool that will tell him — down to the tick, to the pip, even to the penny – when his forecast is no longer viable.

That, according to Kennedy, are two most important keys to successful trading:

  1. “Know where you are wrong,” and
  2. “Don’t pick tops and bottoms”

See the logic behind Kennedy’s wisdom by reviewing these two timeless lessons from his Trader’s Classroom service: Whole Foods Market, Inc. (WFM) and Reynolds American, Inc. (RAI). Then, see how you can get more free lessons during Kennedy’s popular Trader Education Week, going on now!


WFM’s forecast was right and RAI’s was wrong. While price evidence was compelling for both issues, the forecast in WFM was in the direction of the trend and RAI’s incorporated top picking. Here’s what happened:

Price evidence called for new highs in Whole Foods Market, Inc. on May 1. We had a clearly defined uptrend, a three wave move in the direction opposite the primary trend, and the move to the downside was contained within parallel lines:

Additionally, we had a double closed-key reversal when the low was made, as well as some bullish divergence on the smaller timeframes. Price evidence was very strong that this market would continue to new all-time highs, so my outlook was bullish.

The bullish outlook in WFM required the April low of $81.39 to hold. The trend was clearly up from 2009 into 2013. From an Elliott Wave perspective we knew that this was a countertrend move with an A-B-C structure (a corrective wave pattern within a larger trending market). We had the wind at our back and were not “picking a top.” We simply looked at the price evidence in support of a further rally.

Conversely, the following example in Reynolds America, Inc. did not work out.

On March 22, I anticipated a move to the downside in Reynolds American, Inc. as a five-wave decline and the subsequent advance as a three-wave move. I was looking for a tradeable selloff to the downside in wave (C) or wave (3):

Unlike the successful WFM example, I was not trading with the trend. Instead, I was looking for a “top.”

Yet I was able to prevent a losing trade from becoming a devastating trade because I could use the Elliott Wave Principle to “know where I was wrong.”

This bearish wave pattern was viable only as long as prices held below the February high of $45.17.

Once prices exceeded critical resistance, I knew not to look to the downside — that my outlook was no longer viable:


Get more trading lessons from EWI’s Jeffrey Kennedy:

Announcing Trader Education Week

Join us for a FREE trading event that will teach you how to spot trading opportunities in your charts. Spend this week getting free trading lessons that you can apply to your trading immediately — from one of the world’s foremost market technicians, Jeffrey Kennedy.

Whether you are new to trading or have years of experience, you’ll benefit from Jeffrey’s easy-to-understand style and clear presentation. He’ll cover topics such as:

  • Patterns that lead to high-confidence trade setups
  • Momentum indicators to support your pattern analysis
  • Japanese candlestick patterns that alert you to a change of trend
  • How to manage your trades using protective stops

Register now for your FREE week of trading lessons

This article was syndicated by Elliott Wave International and was originally published under the headline The 2 Most Important Keys to Successful Trading. EWI is the world’s largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.

Announcing Trader Education Week – a Free Event to Help You Learn to Spot Trading Opportunities

Dear Trader,

You have an opportunity to spend the next week learning how you can spot high-confidence trade setups in the charts you follow every day.

Elliott Wave International (EWI) is hosting a free Trader Education Week, October 2-9. Register now and get instant access to free trading resources — plus you’ll receive more lessons as they’re unlocked each day of the event.

Jeffrey Kennedy, EWI analyst and one of the world’s foremost market technicians, has taught thousands how to improve their trading through his courses, subscription services and as an adjunct professor of technical analysis at Georgia Tech University. Now you have the opportunity to be a student in his online classroom, as he takes complex technical methods and tools and breaks them down so that you can apply them to your trading immediately.

Don’t miss this opportunity to learn how to spot trading opportunities in the markets you follow.

Register today and get your first 4 free trading resources immediately, plus we’ll alert you to valuable new resources unlocked every day beginning October 2.

Register for Trader Education Week — It’s FREE!

Regards,

Alan

About the Publisher, Elliott Wave International
Founded in 1979 by Robert R. Prechter Jr., Elliott Wave International (EWI) is the world’s largest market forecasting firm. Its staff of full-time analysts provides 24-hour-a-day market analysis to institutional and private investors around the world.

Basic Elliott Video Lesson – Characteristics of Zigzags

For consistent trading, use Elliott as your metronome.

By Elliott Wave International

When you are new to trading with Elliott Waves, it can take some time before each pattern is easy to recognize and understand. But as with new music, the more you listen the more the particular rhythm and meaning stand out.

There may be as many approaches to market forecasting as there are genres of music, yet once you find a style that you like — in trading or in tunes — the patterns that drive each move (whether it’s a pip or a note) become evident.

When it comes to Elliott Wave analysis, one of the foundational “beats” in any market is the zigzag. And when you’re just starting to find your trading groove, it’s important to understand how these corrective patterns unfold.

Last week you learned what the zigzag shape looks like, in contrast to the other sideways structures (if you missed it, watch here >>).

Now, take a look at the three types of zigzags — and, so that you don’t miss a beat, learn why double and triple zigzags exist.

(Note: If you are interested in getting a strong foundation in the Wave Principle, check out our free Elliott Wave Tutorial — find out how below.)

To be a consistently successful Elliott trader, you need to be able keep up with the rhythm of the market.

Ready to rock and roll?


If you are prepared to take the next step in educating yourself about the basics of the Wave Principle — access the FREE Online Tutorial from Elliott Wave International.

The Elliott Wave Basic Tutorial is a 10-lesson comprehensive online course with the same content you’d receive in a formal training class — but you can learn at your own pace and review the material as many times as you like!

Get 10 FREE Lessons on The Elliott Wave Principle that Will Change the Way You Invest Forever >>

This article was syndicated by Elliott Wave International and was originally published under the headline Basic Elliott Video Lesson — Characteristics of Zigzags. EWI is the world’s largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.

The Ten Commandments of Forex

Apart from the trading strategy, the successful trader should follow some important rules. As important as the Ten Commandments, the ten rules of Forex which I identified during my experience will (hopefully) help you to keep your account in healthy condition. For those who are not familiar with trading on the financial markets, I recommend reading this article on what Forex is prior to diving in the deep waters.

After you read this article please share with me if you liked it and how it contributed to your trading experience?

The success

“Trade for the success, not for the money”. You should be motivated entirely by achieving success in that particular trade and leave the thoughts of “what will I do with that money after I win”. Human’s mind get easily distracted when thinking about money. That is why the computer programs don’t get distracted when traded, because they don’t know the meaning of money.

The discipline

The most important quality of a trader is the discipline. The key to successful trading is having control over your mind, body and emotions. You can make technical analysis of great use for your trading but without discipline it will be very difficult and almost impossible to make successful trades. Regardless of the fact if you lost or won today, if you are disciplined you can come back tomorrow and trade again.

Know yourself

Before you start trading Forex you should get to know yourself. How do you react under pressure? Are you willing to take the risk? Do you get mad when you think of losing money? If you cannot sleep in case of losing money, then leave the Forex market and rather purchase a shares portfolio with minimum risk. But if you can manage the risk with discipline go for the currency market. It is important to clarify whether you do it just for the game or for the investment. In the first case it is better to visit Las Vegas.

Get rid of your ego

The quickest way to wipe out your account is to allow your ego to dictate your trading decisions. That is why you should not share with your friends what you traded and how much you won or lost. Like this you might be in a position of holding your trade just because you don’t want to get embarrassed in front of your friend. Again, the computers won’t do it because they don’t know the meaning of friends. The only follow the rules of the trade.

Don’t pray

I have literally seen traders praying in front of the monitor while the price is going towards their auto close levels. Remember, the market price is determined by the buyers and seller (on some other factors sometimes). Nobody will help you because it’s a jungle and everybody is against everybody. Follow your stop and limits, stay cool and don’t rely on things such as prays and emotions.

Leave your gains and cut your losses

When the stop order level is reached leave it. Even if the marklet recovers after it don’t get mad but be proud because you have discipline. In this sense, I respect the women traders because when they start losing they run away – this is the best in Forex. Conversely the men hold the losing position until their last breath. Remember to eliminate all emotions, ego and other human qualities. There are only numbers and nothing more than that.

Know when to enter and when to wait

I would say that 80% of the trading process passes in watching the screen and waiting for the best moment to enter or exit the trade. Think of it, the more you trade the greater the chance to make the wrong move. So trade only when you are 100% certain and have checked your technical and fundamental analysis.

Love your winning and losing trades

The losing trades are your best teacher. That is why you should note both winning and losing trades. Like this you will be able to learn from your mistakes and avoid them in the future.

Take a break

After three losing trades you must definitely take a break. Go out and do some sports or just walk in the park away from any screens. You need to calm down and erase all thoughts from your mind. In my opinion, you should also do that after winning trades. People often get too excited about their wins and easily risk all their accounts in a single trade because they feel too certain.

Follow the rules

This is the most important rule of all. Don’t break your rules and you will succeed. What is the sense in having rules and not following them?

You can start today by opening a risk free demo account and test your strategy!

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Type of orders in Forex Trading

Although many of you might be familiar with the order types in forex trading, I will try to make a summary and list all of the major order types. The orders nature depends on the brokers’ conditions and their execution. It is probably the most important factor in trading in general. For those of you who are not familiar with the Forex market, check this source on what is forex trading – it clarifies the main aspects of the forex trading quite well.

After you read this article let me know if it was useful to you? Will it contribute to your trading experience?

The Market Order

It looks simple and straightforward – you place the order with your broker and it executes it.

haggling

However, there are certain factors affecting how is your order executed. If your forex broker is a market maker, it will aggregate your and other traders’ orders and will execute it at a price slightly different than the market price. Depending on its execution policy you may receive requites and slippage during news. Sometimes the best way of checking this is by practice. I don’t mean a practice account of course because everything looks perfect there. The real execution is seen when you trade life. In all cases read well your broker conditions.

The limit order

Limit or stop it is all the same. You specify a price to be achieved in the future and if this price is present the broker executes your order. There might be several limitations in executing those orders though.

stop orders

For instance some brokers apply minimum amount of pips to place your order at. Thus if EUR/USD is around 1.2700 you might be able to place your stop at 1.2680 which is 20 pips distance. Also there is another factor to be considered – either stop or limit there is no guarantee that your order will be executed at the specified price because:

  1. When the price is reached it moved too fast and the broker was able to execute it at the next price level.
  2. There was a gap between the previous closing and current opening of the market (this happens with CFD trading)

You can avoid the 1st scenario by paying additional premium to the broker to execute the stop/limit with a guarantee. There is nothing you can do in the second case.

Placing stop and limit is a good practice especially if you are a new trader. Those can be perceived as your trade boundaries and if you don’t have them it is a lack of discipline. Even if your stop is reached and the market recovers afterwards, you shouldn’t be angry about it because you executed your trading plan. When you have rules you must follow them.

The OCO order

One cancels the other, as the name suggests this type of order cancels another one. For example in MT4 if you place Take profit and Stop loss and either of them is executed this automatically cancels the other. With some platforms this is not true and you should be extremely careful to place OCO order instead of just stop and limit. The reason for that is because if one of the levels is reached the other order still remains active. Your stop loss is hit and then when the price reaches your limit level you will end up with a second order although you exited this trade with the stop order. Therefore, if you see an OCO order, use it for your stop and limit levels (at least).

carousel

STP order

Some brokers offering STP (Straight Through Processing) execution may apply different conditions for their STP orders. The reason is simple – since they cannot guarantee the execution because the order is sent elsewhere, they just inform you that the price may differ significantly. All depends on what agreement the broker has with its counterparty. In this case the only positive factor is that the conflict of interest between you and your broker is eliminated.

Other order types

All the orders you might see in different platforms are just derived from the above types. They might be called in different fancy ways but when you just read your forex broker’s terms of business you’ll see that it’s just said in other words. Whatever you plan to trade, make sure you test the execution in different situations as day/night, news releases, different currency pairs and lots volumes, etc. Note everything down and that is how you will know better how your forex broker executes your orders.

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How a Simple Line Can Improve Your Trading Success

Elliott Wave International’s Jeffrey Kennedy explains many ways to use this basic tool
May 21, 2012

By Elliott Wave International

The following trading lesson has been adapted from Jeffrey Kennedy’s eBook, Trading the Line — 5 Ways You Can Use Trendlines to Improve Your Trading Decisions. You can download the 14-page eBook here.

“How to draw a trendline” is one of the first things people learn when they study technical analysis. Typically, they quickly move on to more advanced topics and too often discard this simplest of all technical tools.

Yet you’d be amazed at the value a simple line can offer when you analyze a market. As Jeffrey Kennedy, editor of the new Elliott Wave Junctures service, puts it:

“A trendline represents the psychology of the market, specifically, the psychology between the bulls and the bears. If the trendline slopes upward, the bulls are in control. If the trendline slopes downward, the bears are in control. Moreover, the actual angle or slope of a trendline can determine whether or not the market is extremely optimistic or extremely pessimistic.”

In other words, a trendline can help you identify the market’s trend. Consider this example in the price chart of Google.

That one trendline — drawn between the lows in 2004 and the lows in 2005 — provided support for a number of retracements over the next two years.

That’s pretty basic. But there are many more ways to draw trendlines. When a market is in a correction, you can draw a trendline and then draw a parallel line: in turn, these two parallel lines can create a channel that often “contains” the corrective price action. When price breaks out of this channel, there’s a good chance the correction is over and the main trend has resumed. Here’s an example in a chart of Soybeans. Notice how the upper trendline provided support for the subsequent move.


For more free trading lessons on trendlines, download Jeffrey Kennedy’s free 14-page eBook, Trading the Line — 5 Ways You Can Use Trendlines to Improve Your Trading Decisions. It explains the power of simple trendlines, how to draw them, and how to determine when the trend has actually changed.

Download your free eBook >>

This article was syndicated by Elliott Wave International and was originally published under the headline How a Simple Line Can Improve Your Trading Success. EWI is the world’s largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.

Five Fatal Flaws of Trading

By Elliott Wave International

Close to ninety percent of all traders lose money. The remaining ten percent somehow manage to either break even or even turn a profit — and more importantly, do it consistently. How do they do that?

That’s an age-old question. While there is no magic formula, EWI Senior Instructor Jeffrey Kennedy has identified five fundamental flaws that, in his opinion, stop most traders from being consistently successful. We don’t claim to have found The Holy Grail of trading here, but sometimes a single idea can change a person’s life. Maybe you’ll find one in Jeffrey’s take on trading. We sincerely hope so.

The following is an excerpt from Jeffrey Kennedy’s Trader’s Classroom Collection, Volume 4. Learn how to get 14 more actionable trading lessons — FREE — below.


Why Do Traders Lose?

If you’ve been trading for a long time, you no doubt have felt that a monstrous, invisible hand sometimes reaches into your trading account and takes out money. It doesn’t seem to matter how many books you buy, how many seminars you attend or how many hours you spend analyzing price charts, you just can’t seem to prevent that invisible hand from depleting your trading account funds.

Which brings us to the question: Why do traders lose? Or maybe we should ask, “How do you stop the Hand?” Whether you are a seasoned professional or just thinking about opening your first trading account, the ability to stop the Hand is proportional to how well you understand and overcome the Five Fatal Flaws of trading. For each fatal flaw represents a finger on the invisible hand that wreaks havoc with your trading account.

Fatal Flaw No. 1 — Lack of Methodology
If you aim to be a consistently successful trader, then you must have a defined trading methodology, which is simply a clear and concise way of looking at markets. Guessing or going by gut instinct won’t work over the long run. If you don’t have a defined trading methodology, then you don’t have a way to know what constitutes a buy or sell signal. Moreover, you can’t even consistently correctly identify the trend.

How to overcome this fatal flaw? Answer: Write down your methodology. Define in writing what your analytical tools are and, more importantly, how you use them. It doesn’t matter whether you use the Wave Principle, Point and Figure charts, Stochastics, RSI or a combination of all of the above. What does matter is that you actually take the effort to define it (i.e., what constitutes a buy, a sell, your trailing stop and instructions on exiting a position). And the best hint I can give you regarding developing a defined trading methodology is this: If you can’t fit it on the back of a business card, it’s probably too complicated.

Fatal Flaw No. 2 — Lack of Discipline
When you have clearly outlined and identified your trading methodology, then you must have the discipline to follow your system. A Lack of Discipline in this regard is the second fatal flaw. If the way you view a price chart or evaluate a potential trade setup is different from how you did it a month ago, then you have either not identified your methodology or you lack the discipline to follow the methodology you have identified. The formula for success is to consistently apply a proven methodology. So the best advice I can give you to overcome a lack of discipline is to define a trading methodology that works best for you and follow it religiously.

Fatal Flaw No. 3 — Unrealistic Expectations
Between you and me, nothing makes me angrier than those commercials that say something like, “…$5,000 properly positioned in Natural Gas can give you returns of over $40,000…” Advertisements like this are a disservice to the financial industry as a whole and end up costing uneducated investors a lot more than $5,000. In addition, they help to create the third fatal flaw: Unrealistic Expectations.

Yes, it is possible to experience above-average returns trading your own account. However, it’s difficult to do it without taking on above-average risk. So what is a realistic return to shoot for in your first year as a trader — 50%, 100%, 200%? Whoa, let’s rein in those unrealistic expectations. In my opinion, the goal for every trader their first year out should be not to lose money. In other words, shoot for a 0% return your first year. If you can manage that, then in year two, try to beat the Dow or the S&P. These goals may not be flashy but they are realistic, and if you can learn to live with them — and achieve them — you will fend off the Hand.

Fatal Flaw No. 4 — Lack of Patience
The fourth finger of the invisible hand that robs your trading account is Lack of Patience. I forget where, but I once read that markets trend only 20% of the time, and, from my experience, I would say that this is an accurate statement. So think about it, the other 80% of the time the markets are not trending in one clear direction.

That may explain why I believe that for any given time frame, there are only two or three really good trading opportunities. For example, if you’re a long-term trader, there are typically only two or three compelling tradable moves in a market during any given year. Similarly, if you are a short-term trader, there are only two or three high-quality trade setups in a given week.

All too often, because trading is inherently exciting (and anything involving money usually is exciting), it’s easy to feel like you’re missing the party if you don’t trade a lot. As a result, you start taking trade setups of lesser and lesser quality and begin to over-trade.

How do you overcome this lack of patience? The advice I have found to be most valuable is to remind yourself that every week, there is another trade-of-the-year. In other words, don’t worry about missing an opportunity today, because there will be another one tomorrow, next week and next month…I promise.

I remember a line from a movie (either Sergeant York with Gary Cooper or The Patriot with Mel Gibson) in which one character gives advice to another on how to shoot a rifle: “Aim small, miss small.” I offer the same advice in this new context. To aim small requires patience. So be patient, and you’ll miss small.

Fatal Flaw No. 5 — Lack of Money Management
The final fatal flaw to overcome as a trader is a Lack of Money Management, and this topic deserves more than just a few paragraphs, because money management encompasses risk/reward analysis, probability of success and failure, protective stops and so much more. Even so, I would like to address the subject of money management with a focus on risk as a function of portfolio size.

Now the big boys (i.e., the professional traders) tend to limit their risk on any given position to 1% – 3% of their portfolio. If we apply this rule to ourselves, then for every $5,000 we have in our trading account, we can risk only $50 – $150 on any given trade. Stocks might be a little different, but a $50 stop in Corn, which is one point, is simply too tight a stop, especially when the 10-day average trading range in Corn recently has been more than 10 points. A more plausible stop might be five points or 10, in which case, depending on what percentage of your total portfolio you want to risk, you would need an account size between $15,000 and $50,000.

Simply put, I believe that many traders begin to trade either under-funded or without sufficient capital in their trading account to trade the markets they choose to trade. And that doesn’t even address the size that they trade (i.e., multiple contracts).

To overcome this fatal flaw, let me expand on the logic from the “aim small, miss small” movie line. If you have a small trading account, then trade small. You can accomplish this by trading fewer contracts, or trading e-mini contracts or even stocks. Bottom line, on your way to becoming a consistently successful trader, you must realize that one key is longevity. If your risk on any given position is relatively small, then you can weather the rough spots. Conversely, if you risk 25% of your portfolio on each trade, after four consecutive losers, you’re out all together.

Break the Hand’s Grip
Trading successfully is not easy. It’s hard work…damn hard. And if anyone leads you to believe otherwise, run the other way, and fast. But this hard work can be rewarding, above-average gains are possible and the sense of satisfaction one feels after a few nice trades is absolutely priceless. To get to that point, though, you must first break the fingers of the Hand that is holding you back and stealing money from your trading account. I can guarantee that if you attend to the five fatal flaws I’ve outlined, you won’t be caught red-handed stealing from your own account.


Get 14 Critical Lessons Every Trader Should Know

Learn about managing your emotions, developing your trading methodology, and the importance of discipline in your trading decisions in The Best of Trader’s Classroom, a FREE 45-page eBook from Elliott Wave International.

Since 1999, Jeffrey Kennedy has produced dozens of Trader’s Classroom lessons exclusively for his subscribers. Now you can get “the best of the best” in these 14 lessons that offer the most critical information every trader should know.

Find out why traders fail, the three phases of a trader’s education, and how to make yourself a better trader with lessons on the Wave Principle, bar patterns, Fibonacci sequences, and more!

Don’t miss your chance to improve your trading. Download your FREE eBook today!

This article was syndicated by Elliott Wave International and was originally published under the headline Five Fatal Flaws of Trading. EWI is the world’s largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.