Seriously, unless you make a decision to actively do something different your trading will never change. having looked at so many strategies, I now realise that the market gives you what you want regardless of what you think you want.
I decided to put my trading skills to the test and take part in a trading contest. My performance is shown below for those of you that maybe a little bit skeptical of what I am saying
http://www.dukascopy.com/traderconte...l&month=201012
I started out reading all the books I could get on trading, applying systems, reading about elliot waves, you know its all rubbish. Roughly 90% of traders look at this and think that just because they read it in a book it works. The likes of Robert Minor, Prechter to name but a few are all selling trading courses seminars and yet I have no idea are these people making any money out of trading. I think that they are not and the reason is that they make money selling courses.
So, my question is why are these guys not mega rich?
I am going to discuss trading in more length and what works and what does not. So the first thing is trend. Most people have no clue what I am talking about, so let me get into the basics.
A trend is lower lows and lower highs, this is a down trend, and uptrend is higher highs and higer lowes. Simple right so lets look at a chart. Now you can see I have flagged the lows and highs in this chart,silver is in a downtrend, You can also see that we have made 5 pushes down, do I want to buy silver? No because it is still down on the daily trend, do I want to sell silver?
Maybe, lets see what it is doing on the Hourly chart.
So on the hourly chart silver is making higher highs (just) and higher lows. This means I am sitting on my hands untill the opportunity presents itself. I want to see silver making lower lows and lower highs, then I am in sync with the daily time frame and hopefully able to ride the market down further.
No indicators they lag, just simple rules to keep you the right side of the market. Now,the acid test is do I push my account to one million, or sit around at $300,000 which is still a very good result for a couple of days work. The answer will depend on the market all I can do is trade the swings. A lot of you will be saying that my money management is skyhigh yes it is, but this is a contest I am taking part in, not a real money account and who is to say that 2% risk is right. Read any trading book about great traders and guys that made millions, you will see they often trade 10% of their account on a single trade.
I think 2% risk is ideal when you don't have a strategy that returns greater than 50% winning trade, because it allows you to be wrong as often as you are right, what sort of strategy is that?
I decided to put my trading skills to the test and take part in a trading contest. My performance is shown below for those of you that maybe a little bit skeptical of what I am saying
http://www.dukascopy.com/traderconte...l&month=201012
I started out reading all the books I could get on trading, applying systems, reading about elliot waves, you know its all rubbish. Roughly 90% of traders look at this and think that just because they read it in a book it works. The likes of Robert Minor, Prechter to name but a few are all selling trading courses seminars and yet I have no idea are these people making any money out of trading. I think that they are not and the reason is that they make money selling courses.
So, my question is why are these guys not mega rich?
I am going to discuss trading in more length and what works and what does not. So the first thing is trend. Most people have no clue what I am talking about, so let me get into the basics.
A trend is lower lows and lower highs, this is a down trend, and uptrend is higher highs and higer lowes. Simple right so lets look at a chart. Now you can see I have flagged the lows and highs in this chart,silver is in a downtrend, You can also see that we have made 5 pushes down, do I want to buy silver? No because it is still down on the daily trend, do I want to sell silver?
Maybe, lets see what it is doing on the Hourly chart.
So on the hourly chart silver is making higher highs (just) and higher lows. This means I am sitting on my hands untill the opportunity presents itself. I want to see silver making lower lows and lower highs, then I am in sync with the daily time frame and hopefully able to ride the market down further.
No indicators they lag, just simple rules to keep you the right side of the market. Now,the acid test is do I push my account to one million, or sit around at $300,000 which is still a very good result for a couple of days work. The answer will depend on the market all I can do is trade the swings. A lot of you will be saying that my money management is skyhigh yes it is, but this is a contest I am taking part in, not a real money account and who is to say that 2% risk is right. Read any trading book about great traders and guys that made millions, you will see they often trade 10% of their account on a single trade.
I think 2% risk is ideal when you don't have a strategy that returns greater than 50% winning trade, because it allows you to be wrong as often as you are right, what sort of strategy is that?