Can YOU make money as a professional trader - Redux | Forex Factory

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Can YOU make money as a professional trader - Redux

  • #1
  • First Post: Edited May 17, 2018 3:24pm May 3, 2018 12:03pm | Edited May 17, 2018 3:24pm
Greeting fellow traders!

I am making second attempt to help the struggling new traders or to help those who have been around and are in the “almost there” category.
This thread is NOT meant for the sour grapes bunch, the people who failed as traders and want to post here to spread their loser mentality, that if they can't do it no one can. I think someone referred to them as “spent cartridges” and that is accurate description. They already fired their shots and missed the mark. No one needs your advice on how to lose all your money, your home, your wife because you went in and gambled in the markets. Yes, you gambled you life saving away against the professional speculators and the movers (Market Makers)

I will try to monitor this thread better and keep this a positive “can do” thread. It's OK to mention losing trades. We all have trades that go bad. Fact is that is my number 1 gauge to knowing successful traders. Any trader who does not have losses is a story teller.
-------------------------------
I am going to put a few rules for posting here and will limit the posting here if you don't abide by the rules. I will add as I go. The first post I don't like, I will dislike it. After 1 dislike I will put on ignore.

1. If you mention scam, I will dislike your post. The next post, I will ignore you as I am not selling anything
2. No arguing over who is right about what. It is silly waste of time. You will not change someone's belief system or point of view.
3. No Solicitations! If you are promoting any products or services, start your own thread for that. We are talking BIG ideas in this thread
Ecclesiastes 1:9
  • #2
  • Edited 12:34pm May 3, 2018 12:05pm | Edited 12:34pm
First off, some housekeeping. Let's face the facts before we get too excited and start counting are millions.

80% of new businesses fail in first 18 months
90% of new businesses fail in first 5 years

and according to Inc. magazine,
96% fail within first 10 years.

Grim stats indeed and this should tell you this is not an easy endeavor, to run a successful business. And if you want to make money as a trader, you are in the business of speculation.

Before I leave this thought, you should be aware that the markets are rigged. Yes, the markets are a business and the market makers, your broker included, are in this business to make money. It is very important for you to understand that your broker needs to take someone's money and it may be your money they take if you go in blindly, making impulsive trades, not protecting yourself and not having the proper attitude as well as trading system.

So in my next few post I will talk about the Holy Grail and how I found it and you can too. Some of these I will pull off my first thread so apologies in advance if you already saw them.
Ecclesiastes 1:9
  • #3
  • May 3, 2018 12:19pm May 3, 2018 12:19pm
Rule # 1 Work when you are supposed to work. Play in the chat rooms only when you don't have to work.

The date is May 3, 2018. The time is 1:15pm New York time.

I am posting this now because I am waiting for the NFP report tomorrow and not working. I have a rule not to trade when markets are dull. This helps avoid the boredom trade. This is when you go into the markets and are trying to make something happen. And something will happen. You will lose money.

So... When you should be trading, stay out of the chat rooms.
Ecclesiastes 1:9
  • #4
  • May 3, 2018 12:28pm May 3, 2018 12:28pm
A very good rule and a good reason for the rule.

KP

Quoting newbegger
...I have a rule not to trade when markets are dull...
Do your homework, follow the footprints of smart money
  • #5
  • May 3, 2018 12:30pm May 3, 2018 12:30pm
Quoting newbegger
Rule # 1 Work when you are supposed to work. Play in the chat rooms only when you don't have to work. The date is May 3, 2018. The time is 1:15pm New York time. I am posting this now because I am waiting for the NFP report tomorrow and not working. I have a rule not to trade when markets are dull. This helps avoid the boredom trade. This is when you go into the markets and are trying to make something happen. And something will happen. You will lose money. So... When you should be trading, stay out of the chat rooms.
Agreed whole heartedly...I'm anxious to hear more rules
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  • #6
  • May 3, 2018 1:53pm May 3, 2018 1:53pm
Rule # 2 Try to avoid risk.

I say "try to avoid risk" because there is no getting around this completely as a trader. Once you put a trade on, you are at risk of losing more money than you invested. Black swan events occur and there is no way to know when the next one will occur. However, you can do several things to minimize risk like scaling into trades (I will explain later) and scaling out or closing trades completely when you have no control like weekends and holidays.

My holiday adventure from last thread over New Years break in 2005.

I was not a full time trader yet and had not learned this lesson. I was heavy short USD going into the New Years and, at that time, I was short USD more than I should have been with too large of a position. The markets opened at 5:00 pm NY time on Jan 1, 2005 but my broker was set to open at the London Open 3:00 am NY time on Jan 2, 2005.

Over the next 8 hours, I watched the USD go up, up, and up. And there was nothing I could do to stop from losing money. A little info for new traders -->Stops don't get triggered when your broker is closed<--.

So by the time London opened, I had lost 10k USD. My account went from $34,000 USD to 24,000 USD and there was no one to blame but me. How could I be so stupid???

Is this the end? NO!

Now I was angry. So what did I do? Yep, Yep, You're right. I revenge traded!!!

I saw the markets pop on the London Open so I start to put my positions back on because I was sure I was right. I never trade the London session and as soon as I got my positions back on, whack! The trade went straight to my stops. So I tried again and again with same results. By this time, I had under $20,000 left and I finally came to my senses and stopped trading.

The lessons I learned that awful day was -- Don't have large positions open over any holiday......

And that also applies to weekends and big news event like Central Bank Announcement, Employment Reports, etc. If Forex Factory has it marked in red, you should scale down or take off any open positions unless your system is long term trading.
Ecclesiastes 1:9
  • #7
  • May 3, 2018 2:21pm May 3, 2018 2:21pm
Very true, I like this thread already.

But i have a question. Why dont you dont trade the london session? Thats when they hit the stops most agressive.
Im gonna follow this one.
Was slipping off the edge but i held up.
  • #8
  • May 3, 2018 2:34pm May 3, 2018 2:34pm
Rule # 3 Keep an attitude of success.

If you have been on trading forums, there is always someone who says you cannot make a living as a trader because the markets are rigged. Turn that statement around with a double negative - You could not make money in the markets if the markets were NOT rigged.

If the markets were not rigged for the brokers to make money, all brokers would eventually go bankrupt and markets would close.
------------------------------------------------------
The next time you see someone post that message that you cannot make money because of (whatever excuse), think in your mind:

Can I juggle bottles?
Can I ride a unicycle?
Can I ride a unicycle while juggling bottles?

So it is impossible to ride a unicycle while juggling bottles - Right?

Have you ever been to the circus and see a clown riding a unicycle while juggling bottles? What is impossible for some is not impossible for everyone. Next time you see the can't-do posts, picture a clown riding a unicycle while juggling bottles instead of letting doubt creep into your mind.
Ecclesiastes 1:9
  • #9
  • May 3, 2018 3:00pm May 3, 2018 3:00pm
Nice post to follow. Keep it up. Subscribed.
  • #10
  • May 3, 2018 3:22pm May 3, 2018 3:22pm
Quoting newbegger
Rule # 2 Try to avoid risk. I say "try to avoid risk" because there is no getting around this completely as a trader. Once you put a trade on, you are at risk of losing more money than you invested.
I had a USD/JPY carry trade on for the last 3 months. 1 lot. It went all the way to -$5,000, then back up to +$150. I reduced my exposure to 0.25 lot, made $85 plus the carry money.

Point is, nothing goes in one direction forever... Except maybe USD/TRY...
  • #11
  • May 3, 2018 3:47pm May 3, 2018 3:47pm
This thread is just what I needed to read as a newbie!
Thanks
  • #12
  • May 3, 2018 4:13pm May 3, 2018 4:13pm
Quoting JustPipping
Very true, I like this thread already. But i have a question. Why dont you dont trade the london session? Thats when they hit the stops most agressive. Im gonna follow this one.
I don't trade London because it is sleeping time for me and each session has it's own character and way to trade it successfully. For me I trade the end of London and beginning of NY and find I can make enough pips with regular sleep schedule.

Sometimes I look at the Asia session on big news days if I have had a good trading day. If it's been a bad day, I keep the shop closed and reset and restart the next day.
Ecclesiastes 1:9
  • #13
  • May 3, 2018 4:34pm May 3, 2018 4:34pm
Quoting newbegger
Rule # 2 Try to avoid risk. ...
How about Avoid Unnecessary Risk

It sound to me like you and I (and I suspect many other here) have made many of the same mistakes. Call it "the learning curve". I have written this very rule various ways in my trading journal. "don't over leverage"; "admit when you are wrong"; "Don't trade when you're angry - emotional". It basically comes down to avoid UNNECESSARY risk.

Once your goal for the day/week/month has been met STOP trading for that day/week/month. There is no reason to place any more of your funds at risk when you have made your goal. Save it for the next day/week/month.

Adding to you losers when you are "positive" the market will turn, is unnecessary risk. If you are wrong about your the direction you chose to trade...stop...re-evaluate...carry on. If you lose more than three times in a row...take the rest of the day off...something is interfering with your ability to see what is right in front of you.
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  • #14
  • May 3, 2018 4:36pm May 3, 2018 4:36pm
Quoting newbegger
Rule # 3 Keep an attitude of success. ...
EXCELLENT!! and so very important.
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  • #15
  • May 3, 2018 5:42pm May 3, 2018 5:42pm
Quoting newbegger
Rule # 2 Try to avoid risk. I say "try to avoid risk" because there is no getting around this completely as a trader. Once you put a trade on, you are at risk of losing more money than you invested. Black swan events occur and there is no way to know when the next one will occur. However, you can do several things to minimize risk like scaling into trades (I will explain later) and scaling out or closing trades completely when you have no control like weekends and holidays. My holiday adventure from last thread over New Years break in 2005. I was...


ROFL hilarious ... i needed a good laugh .... so typical of newbie traders .... my sharp ratio os 3.9 and 80 % success rate !!!
#1 rule in trading as a professional ... drill this into your brain EVERY DAY! STOP THINKING AND FOLLOW YOUR DAMN INDICATORS, PERIOD!
# 2 take your ego out of the equation .,... ex. revenge trading and judge the situation dispassionately.
they dont call me the dragon slayer for nothing ... ego maniac you say lol i can prove it ... i sheer sheeple everyday and i can prove it !!!
are u " in the game" for the thrill of the kill, to impress your friends etc .or to make $$$ the market is not your friend or buddy its cut throat and dog eat dog @ its best and i luv it!!! the best job you'll ever luv to hate !!!
FXSLAYER
  • #16
  • May 3, 2018 6:00pm May 3, 2018 6:00pm
In a word, HELL YEAH! if you have the discipline to follow a proven ( notice the word proven ) trading plan ...
Secondly if you SERIOUSLY think your PUNY trade will make ANY difference in the over all direction on the market, your delusional. MM's make up the majority of volume. Follow the $$$ duhhhhhhh!
FXSLAYER
  • #17
  • May 4, 2018 12:29am May 4, 2018 12:29am
Quoting DonPato
{quote}Once your goal for the day/week/month has been met STOP trading for that day/week/month. There is no reason to place any more of your funds at risk when you have made your goal. Save it for the next day/week/month.
dont find this opinion very smart. when the going is good, milk it for as much as you can. tomorrow might be different.
will a farmer ever stop making hay on a good day?
  • #18
  • May 4, 2018 1:08am May 4, 2018 1:08am
Ofcourse you can make money as a professional trader but you have to understand, even before you start trading and creating the first Demo account, that this is one of the most difficult endeavors possible. You have to fully commit yourself to this job for years, and be prepared to endure a lot of pain, struggling and money loss .
  • #19
  • May 4, 2018 1:56am May 4, 2018 1:56am
Quoting yonnie
{quote} dont find this opinion very smart. when the going is good, milk it for as much as you can. tomorrow might be different. will a farmer ever stop making hay on a good day?
Yes and no, for me i trade the london open and sometimes grab up to 250 pips during the session.
Most often when the NY session starts i will look for new setups to where i scout for an extra additional 30 pips per trade. Due to my experience at the NY open i tend to lose more often before i get 1 right.

I understand everyone is different and there are pips to be made every session so i keep working on it until i got it, But most of the times i need to accept my profits and call it a day.
Was slipping off the edge but i held up.
  • #20
  • May 4, 2018 3:52am May 4, 2018 3:52am
hi JustPipping,
I dont think you get what I`m saying.
If you cant make it work for the NY session, ofcourse you would not carry on.
But what about your profitable London session?
what would happen to your P&L if you decided that as soon as your reach your goal of 50 pips for that session, you quit for the day?
that would not be very smart is it.
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