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Saturday, February 12, 2011

Science and Art of Trading

It's part science and part art. You can't neglect either one. Many people go into currency trading with the science part down. They've looked up successful forex trading strategies, or they have a trading system that they bought, or they understand the ins and outs of technical and fundamental analysis.

Those 'science' elements are essential, but guess what, there is no way to prepare for the 'art' part unless you practice first with a free forex demo account. This is very important if you want to start well, or at least if you don't want to get cashed out before you get a chance to learn.
There is a lot of intuition that is needed to become a successful trader. There are so many subtle, unspoken variables that go into a successful trade.
You have to have the essentials like technical and fundamental analysis and good money management and risk management, however, you have to be able to meld all those things together in executing your trades.  There are many  you can use to give you signals on when to get in and out, but it is not a formula.  They are just guidelines.
No one can explain it to you. No one can teach it to you. They can share how they think, the major factors that went into a trade or even their perspectives, but no trader can fully explain all the things that went into one trade. Because trading is something that comes from your gut as well as your brain.

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