A trader has to have patience & discipline to succeed.
The bottom line is - you need to work out a plan, and then stick to it…regardless.
If you decide on trading only a particular strategy, then you must wait for that setup to occur. In the meanwhile, if price makes some moves, you should not trade those, simply because they do not fit within your plan. 
Psychologically, you need a lot of discipline to stick to a plan, because you always feel you are missing out on the moves.
And if you are trading full time, then this becomes a very big issue. Since you keep waiting for a trade & if the opportunity does not occur, then you get tempted to twist your plan & get into the action…..which is the surest way to disaster.
One can make a living from trading…provided it’s done in the correct way.
It’s not an overnight-get-rich-scheme.
It has to be built up slowly & takes a lot of effort & dedication.
Once you accept this fact, it becomes somewhat easier -:)
Sunil

Having interacted and coached traders from all over the globe, I have seen that there are only 2 basic reasons why most traders do not succeed.
1.)    Not having a Trade Plan.
2.)    Not following the 3M’s Money, Mind & Method.

If a trader follows these 2 basic and simple policies, then I don’t see any reason why he cannot succeed in trading.
My intention is to make the trader aware of these 2 factors…which are the most important part of trading, and ironically, ignored by most traders.

Ask yourself a simple question.
While trading, do you think beyond technical analysis?
Unless you don’t plan your trades, you will have a difficult time surviving in this business.

You can make a living from trading, but it’s a long process that requires a lot of patience & dedication. If you are looking at this as an immediate source of income, you will make it difficult for yourself.
My advice is to have a source of income, so you don’t depend on forex for a living. Then one can concentrate & learn slowly.
It will be an investment for a lifetime.

Unfortunately, there is still a very wrong notion about trading, which is mainly spread by brokers. The broker gets the spreads / commissions, regardless of whether you have a winning trade or a losing one. He is only too happy to get more traders in this field.
You often see advertisements about “work in your pyjamas, make money from home, open an account with $ 200 and make a handsome living.”
If it were that simple, almost every trader would be a millionaire.
Trading is a very serious business & one has to spend time & efforts learning it…..like any other business.
Would you expect a doctor or a pilot to start practicing after learning for one month?
Then why does a trader think he can?

In the next post, we will have a brief look at patience & discipline.
Then we will start the practical trading tips based on the “Method” - techncal analysis.
Sunil.

This pattern formed with precise fib levels, and one would expect the targets to be achieved.

As they say, a picture is worth a thousand words, so no comments are required.

Sunil.

The bearish Wolfe wave was identified and we took a short entry, as can be seen on the chart.
The advantage of trading the Wolfe wave is that the price objective is precisely defined – the line on point’s ww1 – ww4.
Ideally the entry should have been earlier, as per the rules.
The correct entry gives an excellent Risk-to-Reward ratio for this pattern.
But by the time we identified the setup, price had traveled beyond the entry point and we entered the trade, since this is a very successful pattern.

Price reached the target objective earlier than expected, and at this stage we need to take some profits and still remain in the trade…in case we have further price moves.
As can be seen in the chart, we took some profits here AND shifted our stop to the entry level.
Now we are in a free trade and if price decides to reverse for some reason, our risk is zero and we have taken some profits.

But price did not give further down moves and started forming a bottom. This gave us an indication of the change in momentum and we closed our remaining open positions.
The last lot was closed with somewhat lesser profits, but the most important point of this trade is that we managed it as per our rules…and walked away with stress-free profits.

A perfect example of using the parameters of a chart pattern, to manage the trade efficiently.

Sunil.

As mentioned, this workshop is not about “book patterns” or “theory” but practical information which you can use to trade the markets successfully.
It is specifically designed to show the new and experienced traders the path to success by providing practical information.

So let’s start with some of the most common misconceptions -

• Have realistic expectations from this business. Most traders come to this market with the expectation of doubling their account in one month, and wanting to buy a ‘Ferrari’ in one year. It does not and cannot happen. Just for comparison sake & for a dose of reality, have a look at the best “Managed funds” to check out the “Return on Investment” they offer. They have professional traders on their payrolls, access to the best tools and deep pockets. Compared to their modest returns, why does a new trader expect to make 100% a month?

• You must treat this like a business, educate yourself, understand the structure of price…like you would do for any business, and plan a slow and steady growth.

• Accept the fact that you will have losing trades. Once you accept this one factor, you are on the path to become a successful trader.

• There is no Holy Grail in trading. Success in trading will come only if you have a Trading Plan. Writing down a plan and following it simply means that you do not enter orders on emotional “knee-jerk” reactions. You must know the reason to enter a trade and have your stops and exits planned out….before you enter the trade.

• You cannot predict the price movement. As a trader, you are here to make money and you must follow price, instead of trying to predict it. Once you enter a trade, the market takes over and it’s out of your hands. Yes, what you can control, are the factors which are your hands…and that is managing your trades and managing your risks.

• Remember, this is a business of probabilities and you must have an “Edge” that puts you in the top 15% of the winning traders.

We thus, use the tools of technical analysis to enable us to manage our trades…to gain that edge.
Sunil.

There is a lot of information available on forex today and unfortunately most of it ends up confusing the trader further.
My objective of this workshop is to guide the trader on the correct path and offer techniques /strategies which work, plus concentrate on the concepts of the 3M’s – Money, Mind & Method.
You will learn to think for yourself and understand the price movement, so you can trade confidently for a living.
The workshop also offers some great value additions and bonuses for the subscribers of this workshop.

Based on the feedback and response I received, I have revised the topics of the workshop and made it more of a “hands-on” approach to forex trading.

The seating for this workshop is limited since I am restricting it to a small group, which will ensure individual attention to the participants.

I am enclosing the complete details for the traders who want to participate.

Date: 21st June and 22nd June ‘09.
Cost: Gbp £399.00
Venue: The Crowne Plaza, London.  http://www.fibforex123.com/power_workshop_venue.htm

The workshop topics are mentioned in detail in the enclosed web page

http://www.fibforex123.com/Forex_power_Workshop.htm

For registration and payment procedures - http://www.fibforex123.com/pay_power_workshop.htm

Additional bonus for the subscribers of this workshop.
·    A specific strategy for “spread Betting”
·    A ready to use “Pivots” trading technique.
·    One month free access to a “Live trading room”.

Early bird registrations (if you book before 31st May’09) are entitled to a discount of Gbp £50.00
Also, check out the “Buddy” offer, to get an additional discount of Gbp £50.00

If you are eligible for the discounts, please send me a mail and I will send you the link to the discounted payment page for Gbp £349.00

Note: To give you a better idea of the “Hands-On” approach of this workshop, I will be putting up simple and effective trading tips on this blog.
It would be worth your while to have a look.

My website: http://www.fibforex123.com/
Details of services that I provide: http://www.fibforex123.com/svcs.htm
My background: http://www.fibforex123.com/instructor.htm

Kind regards,
Sunil Mangwani
CEO
www.fibforex123.com

http://transcripts.fxstreet.com/2009/05/understanding-the-simple-rules-of-money-management-part-i-the-risktoreward-ratio.html

and on my website  www.fibforex123.com

Sunil.

Alternatives –
1.) We can now classify this as a bearish 123 pattern and use the Fib expansions to determine further support levels. The FE 100 is usually an expected price objective on a 123 pattern. As of now, price seems to have found some support at the important FE 78.6 and we can expect some consolidation / pullbacks. One should take some profits, but still try and remain in the trade…in case it goes to the FE 100.
2.) If price breaks FE100, then the next “attraction zone” would the target of the bearish Head & Shoulders…which confluences appr. with the FE161.8

So, bottom line, we have used the tools of technical analysis to remain in the trade and determine the price objectives.

As I always say - “Act…..don’t React” -:))

Sunil.

Sunil

This seems to be supported by a bearish Wolfe wave, which we can identify on the same time frame.

The price objectives of the bearish harmonic pattern and the bearish Wolfe wave seem to be forming at appr. the same level…..BUT….lets not jump into the trade.
We are looking at some further confirmations and we can afford a late (but confirmed) entry into the trade, since the Risk-to-Reward ratio is pretty good.
We have to wait for price to give us some confirmations of the expected moves & till then we set our levels and watch.
I will be following up this trade, whether it fulfills the price objectives or not.
Sunil.