I've noticed a pattern...

Anyone else notice that most of the folks that are doing well in the market all preach money management and trade management?

I've just gotten serious about trading over the last couple of months and have been reading voraciously anything I can find. The psychologist and successful traders are all saying the same exact thing. I figure there's a reason for that.

Pick a system out in the system section and read what the vouched for traders say. It doesn't much matter what system you read, (as long as it is somewhat successful) they say the same thing.

Anyone else find that interesting and informative?

That's quite an astute observation.


Problem is that many newbies think forex is a get-rich-quick method. It can be, but that's more an exception than the rule.

Thanks.


The psychology of the market and traders is fascinating. I would imagine that much can be learned about human behavior by reading FF forums.

As for trading, I am learning a lot about me. That's what's fascinating about all this... the things I am learning from trading are applicable in life in many ways.

jmw:
Joined FF Aug '06
Post Count {presently} 20+

JMW; let me be {almost} the first to say you are on the right track.

There is No Cramming for an FX Trader. All Crammers will be Expelled & thier cargo distributed amongst those that remain.

Money Management is simply a waste of time IF you intend to Play One Trade & Win the Lottery.
Otherwise, it is the Only Way to ensure you get another shot.

Trading 101:
Opportunityisnowhere:

Opportunity is no where;
or
Opportunity is now here;

Opportunity is now here;
MM Review; {How much can I risk to the Downside Potential}
Trade 50% of above to allow me an opportunity to Trade Agian.

Oh yea. Way back then I was chasing news trading. LOL! Someone showed me indicators and I quickly laid them aside. I felt like I was driving 100MPH while looking where I had been. (All that math in school paid off.) Trading the news seemed to be the next best thing. After making a lot of money in news trading, then promptly losing it all, I quit for a while.

Since that time, I have occasionally checked in on the fx market. However, about 1 month ago all that changed and I got very serious about it. Since then, I've read a ton. I was amazed at how all the successful people said the same exact thing. The system didn't really seem to matter. If they traded bounces, trends, stochastics, whatever, they all said the same thing psychologically.

So now, I am demoing and testing. Funny thing though, I am testing myself. Oh, the system works fine. The problem is I don't. Now that I know that, it's only a matter of time.

Yea. Learned that the hard way.


Ok. This is going into my quiver of sayings. Thanks for the addition.

My limit right now is 1% per trade. However, if I understand price correctly, I hope to exit bad trades before getting stopped out. Fractals (i.e. support and resistance) rock!

Thanks again for the encouragement.

I think what happens is that when people first start out they believe they can consistently trade 10x market value v. account value. Thus you have $1000 and trade $1/pip avg. Two bad nights worth of hit SL on a 4hr system and you are down to $700. Even still, they think they can do this with just following "signals". I wont say the founders of the "systems" dont make money, but it is never as simple as most say. The truth is, whether those signals are proven to be 70% "positive", (I have yet to see one that good, at least over many years, in all of my backtests), there will always be a run of 10 in a row that are bad from the start. People that have been around for a while (at least those you think you have found wisdom in) dont flash 100% returns a month, 100% returns a year, they just continue to steadily grow their accounts with a managed approach. Warren Buffett has averaged 25% returns I do believe over the past couple of decades. That average is probably down in the lower twenties with the latest drop and when the market goes back up will move up again.

By the way, it should be stated that even the greatest traders in the world struggle. That 70% system that hedge funds like Citadel were rumored to have found had a really bad stretch. They lost 30% of all their funds in one year, or so I read. If the greatest traders in the world can be that bad for a stretch, imagine if they were leveraged 100:1?

WOW, Looks like there will be a Santa in the neighborhood this year after all. Though I still favor the EUR/YEN, I must say that the EUR/USD alone gave me over 900 pips last week and GBP/USD gave me1400 plus. Grand total for the week was 3147 pips. Not bad for a 6 month newbie??? I agree! I have a great system now using two different sets of software simultainiously, each with only 2 pairs, atleast 2 charts per pair and the only common link to all the charts are the candles. I see moves as they develop and my entry points tend to be 30 to 45 seconds into the second candle depending on overbought/oversold conditions. I love my coach... I am a highschool misfit ready to apply for disability because of an auto accident when I was 17. I live in a trailer. Not for long I say, not for long. My question is, If you found something along the way that works and you've thrown your money into the market rather than into someone else's hands, haven't you paid your dues enough? I guess I'm fortunate enough in life to atleast have what I have because I have never been married and have no children... and I am a heterosexually oriented guy still hangin out for the right one at age 40. I guess a bit of a mamma's boy, but who doesn't love their mother. Not asking!!!!!!, generalizing. I've thrown money at a micro account and watched as a combination of freezing software and variable trades that went from 1.3 when I got in stretch to 23.3 when I wanted to get out... Now... I have been financially raped by my broker, the market, or circumstance (which I doubt) quite long enough and have filed a complaint with their compliance dept. and expect to hear from tomorrow. If not... I have a phone number, and I know a few good attorneys. Here, nor there.
I just wanted to be a ray of light and hope. That's all my life has ever aspired to, not for just one person, not for just one race or nationality, not for greed or love of money or attention, not hope of recourse, but because I see a need for love in this world that has to come from this world to help those who need help, whatever that help may be. Whether it be a fresh water well to be dug for a community somewhere in Africa or a computer lab for an elementary education program. I see a need for a foundation. I see a need. I see a need in many things locally. A race-blind legal system in my own community would be a nice thing to see as well, but I'm not sure, even with current political events that this will ever happen here, which is partially why I feel I must leave eventually. I am from a seed that draws ties to Native American ancestry but have know way to prove this due to the dignity of a woman's reputation. Still, I see a need. I don't know how to be anything but me anymore and being me has made a difficult road of the journey ahead and I know that if I am meant to make the journey I have been preparing for, it must happen soon. I am no saviour, nor am I a saint, but I see a need and I don't know anyone else who can fill it.