Profitable ETF Trading Strategies - Training Your Evolutionary Brain

By Ken Long

Sociobiologists describe the formative years in the development of the human brain as the era of evolutionary adaptation. This was a period of hundreds of thousands and even millions of years in which the law of natural selection shaped and molded our brains into the marvelous workings of the adaptation that we now enjoy.

Unfortunately for traders, however, many of the behaviors and tendencies that are hardwired into our brains do not translate directly into success in the marketplace. Indeed, many evolutionary adaptations are directly opposed to our ability to routinely make money in the market.

It is very clear to me that 10 million years of evolution cannot be set aside through the simple application of catchy phrases and clever slogans. It takes long and sustained effort to begin to offset the power of evolution.

Here is an example of the kinds of problems your evolutionary brain will provide. It helps explain why it is so reliable to go against the crowd if you want to make money.

The evolutionary brain has been conditioned from an environment of scarcity. In our hunting and gathering days, it would have been a significant disadvantage to have missed an opportunity to catch a rabbit or kill a mammoth. There is a distinct advantage to being successful in each and every trade when you cannot be sure that another trade will soon come along.

The extra energy that comes from being afraid of missing the trade would have been helpful in our hunting and gathering days, but in modern markets being driven by emotions will get you killed.

When we look at the equity market as an environment of abundance, filled with infinite opportunities, we can see that it is an advantage to be able to let marginal trades go on without you. It is the panic reaction of scarcity that makes you want to chase a trait that has already department your entry zone. Chasing false breakouts is one of the most reliable ways of losing your money, yet be emotionally satisfying behavior is compelling to our evolutionary brain.

How can a trader understand and then overcome these kinds of handicaps?

For some traders the only answer is to be strictly mechanical and to program your trading behaviors into software to execute porting to the rules and nothing but the rules. Having your trades executed by a broker or an auto-broker fall into this category as well.

Discretionary traders or semi-discretionary traders must find other ways to accommodate their natural tendencies to chase every idea they see. Attention to detail, preparation, self-discipline, a trading mastermind, periodic reflection and after action reviews all will help you develop the self-discipline you need to survive and succeed in the market.

Importance of Forex Trading Training - What You Should Know About It

By Paul Kramer

It is so surprising how people read about something on the internet and without any efforts to learn about it properly, they think they are so smart and start indulging. The internet is fool of scams and you do not have to be the next victim. I did like to remind you that you must learn and get training on the FX market if you want to be a player, not only but a successful one.

Many people get so tempted to trade foreign currency after reading through web sites that promise them riches overnight. If you ask any experienced FX dealer, they will testify that trading in currencies from other countries is not get rich overnight exercise. A lot of people get so excited to trade their money such that they participate without attempting to get any formal forex trading training.

It is a very unwise decision to temper around with your monies only to lose them because you lack self control. Many people who lose in foreign currency exchange are people who jump into the market without getting some proper training on how to trade foreign currency.

The importance of forex trading training is that you will play the game with a good understanding on what currencies to trade, how to trade and when to trade.

There are plenty of web sites and online tutorials offering important information on forex trading training. Some of these online tutorials are available for free. Some of the online foreign currency trading training material and courses are available for a fee.

Honestly you are likely to get more value if you pay for a good online trading course. The truth is that you always get what you pay for. Whatever way, whatsoever, the bottom line is you need to get trading training before you trade foreign currency. You need not rush to lose your money for no reason at all.