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What is the key to sucessful FOREX trading?

  • Post #1
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  • First Post: Mar 18, 2010 10:16am Mar 18, 2010 10:16am
What are the golden rules for the beginner? What is most important? (Discipline, minimizing risk, analysis etc?)
Quoting davidleekiev
What are the golden rules for the beginner? What is most important? (Discipline, minimizing risk, analysis etc?)
Hey David

The most important thing is to keep yourself in the game long enough to realize it is a business, and needs to be treated as such.

Don't put your hard earned dollars in there yet. Stay on demo while you learn the ropes and get your feet under you.

Money Mgmt. This should be the easiest part, but is a big realization for most who are new. I know it was for me. There are various techniques, but I will point you to this thread.

http://www.forexfactory.com/showthre...light=beginner

Read that and it should become second nature. This is how you live to trade another day.

Next comes down to learning an approach that works for you. I will say there are various things that work with enough time spent. I highly recommend to keep it simple. The more indicators you put on the chart the more likely you are moving away from your goals rather then too your goals.

Keys to success?
Discipline, Patience, A sound method that you understand to be able to trade through the ups and downs, MM, and a burning passion that you will do this for however long it takes to get there.

I wish you much success

Mike
Big questions needing big answers. I would refer you to the eminently readable http://www.forexfactory.com/showthread.php?t=39514 above.

Money management is the key. Stay in the game. Otherwise you don't get to learn all the other golden rules.

I think PeterFM should get an award for writing that thread. But maybe he was paid thousands by Forex factory. There are other people worthy as well.

Reading all the sticky threads at the top of the rookies section is well worth while but some sections are a bit dry.

Just noticed - while I was writing this I noticed Mike was answering as well. Promise I did not edit the above text in any way.
Gone to a better place
Quoting davidleekiev
What are the golden rules for the beginner? What is most important? (Discipline, minimizing risk, analysis etc?)
Good question. An idea, maybe it is silver one, golden rules like gold, are not scattered everywhere.
Quoting davidleekiev
What are the golden rules for the beginner? What is most important? (Discipline, minimizing risk, analysis etc?)
Learn to identify when a trade is going against you
Quoting mbqb11
Hey David

The most important thing is to keep yourself in the game long enough to realize it is a business, and needs to be treated as such.
One of the best things I've read about trading is...

Most people don't outlast the learning curve. It's much longer than they think.

I don't remember who said it, but it's a gem.
Quoting davidleekiev
What are the golden rules for the beginner? What is most important? (Discipline, minimizing risk, analysis etc?)
you need a solid foundation. you have to know what trading is and how market works.
its like a building the more stonger the foundation is the better your trading will be.there is no short cut.you have to give your self enough time to learn trading.u wont be able to success full in a month or two.there is so much thing in trading its very hard for some one to explain or impossible .but only market can teach you in the journey of trading.
like mike said just go through to the basic and understand them.market will teach you rest.
its a tip
if you wanna succes in this business master any one methood.dont change one after another.it will shorten your learning curve

hope this helps
sho
Quoting davidleekiev
What are the golden rules for the beginner? What is most important? (Discipline, minimizing risk, analysis etc?)
When you find the answer, let me know ....

We all can categorized/generalize whats most important, but it will be subjective to our own experiences in the market. It's best for you to experienc "trial and error" in figuring out what works for you. "Practice" is what I'm trying to say. Most of us are still in the game because of trial and error ... trying 100 different way to trade, in becoming profitable and coming up with only one solution or one new trading act that does work ... out of 100's

Just remember, when something doesn't work stop doing it.
  • Post #9
  • Quote
  • Edited 4:34pm Mar 19, 2010 4:17pm | Edited 4:34pm
Quoting davidleekiev
What are the golden rules for the beginner? What is most important? (Discipline, minimizing risk, analysis etc?)
Find out if you are left brain or right brain dominate. You can find lots of info on the web using visual or a text based quiz. Here is a link for visual LINK

There isn't a hard and fast rule, but IN GENERAL, if you are left brain dominate you'll most likely gravitate towards system and mechanical trading (more scientific types) and if you're right brain dominate will gravitate to a more discretionary method (more artistic types). Naturally, there will always be exceptions.

I'd use it as an initial filter so you have a starting point. I guess this was a very long winded way of saying, find a way of trading that suites / matches your personality. Focus on areas where you are strong and not weak.
.
Don't wish it were easier, wish you were better. ~ Jim Rohn
Quoting Jhig

Just remember, when something doesn't work stop doing it.
lol, wasn't Einstein's definition of insanity "doing the same thing over and over again and expecting different results"
Keep a journal. A journal that includes screenshots of your trades and stats (i.e expectancy, profit factor, avg win vs avg loss). And evaluate yourself every week, month, quarter, and year. I spent the last 3 years going around in circles cause I never kept a detailed journal until now. Having to see your trades visually and what it means on paper really helps you narrow down your trading approach and pick out bits and pieces that will lead to a profitable method.

Having a support system also helps. You're going to burn money learning this market. If you don't have a support system, then you'll end up being emotionally affected and your trading results will suffer. Remember, you need to be sound mentally in addition to having a good method to profit in this market.

And last but not least, keep an open mind. A good trader i believe, is always learning. Once you have a good solid method, keep learning about what other people are doing. Keep your mind sharp by reading about other topics that might pertain to trading (psychology, economics, foreign policy, etc.)
Working towards CME membership
Quoting hilmy83
Having to see your trades visually and what it means on paper really helps you narrow down your trading approach and pick out bits and pieces that will lead to a profitable method.
That's an excellent point, a visual image of performance is invaluable and it's easy enough to do in excel. You can instantly see your equity curve and areas which might need improvement or where you made mistakes, then look up those days/periods in the journal or on a trade blotter to review the trades, there may even be an identifiable pattern.

Some great tips in this thread, shame the OP didn't respond though.
Quoting pipmutt
lol, wasn't Einstein's definition of insanity "doing the same thing over and over again and expecting different results"
lol ... and yet many new traders continue that cycle! (i.e. - let that negative position ride and hope it all of a sudden become positive lol)
My rules are now:

while(holy_grail==false)
{
1.- Find a method.
2.- Write it.
4.- Back test it for the 10 years.

If(method_is_profitable==false)
go to point 1
else
if(method!=holy_grail)
go to point 1 but meanwhile put your last method to work
else
return(0) // congratulations you have found the holy grail, you will be rich
}
Quoting Trad3r
My rules are now:

while(holy_grail==false)
{
1.- Find a method.
2.- Write it.
4.- Back test it for the 10 years.

If(method_is_profitable==false)
go to point 1
else
if(method!=holy_grail)
go to point 1 but meanwhile put your last method to work
else
return(0) // congratulations you have found the holy grail, you will be rich
}
there are so many syntax errors in that program it won't even compile.
Working towards CME membership
Quoting hilmy83
there are so many syntax errors in that program it won't even compile.
hahaha yes yes but you know I'm right and there is no other way to success in forex but work hard...

You may be so intelligent but you can't predict the price just seeing a chart, that's the reality, if you think you can, go to bet all your money and you will see the results...
What is the key to sucessful FOREX trading? Experience, knowledge, and patience.
Quoting Trad3r
there is no other way to success in forex but work hard...
Work hard? Doing what exactly? Sure, more than likely the majority of successful traders made it hard work for themselves but in hindsight they'll probably tell you 90% of it was unnecessary. The ones who don't either haven't achieved success (yet), or they're probably trying to sell you something!

Quoting Trad3r
You may be so intelligent but you can't predict the price just seeing a chart, that's the reality, if you think you can, go to bet all your money and you will see the results...
You don't need to be particularly intelligent to read a chart and make an educated guess on where price might go, but that's all it is, an educated guess not a guarantee. I don't know about you but I wouldn't bet all my money on an educated guess!
Quoting hilmy83
Keep a journal. A journal that includes screenshots of your trades and stats (i.e expectancy, profit factor, avg win vs avg loss)....

""""--- Remember, you need to be sound mentally in addition to having a good method to profit in this market.""""


That is funny as I have found that trying to profit from trading has made me focus on my mental health- it is the hardest thing I have ever done and I know not why- well maybe not the hardest but the hardest to get right-

-I know what to do and I don't do it- the impulse trades are wiping me out and taking days and weeks of my time-

Still I know inside that I can do this and it will be so easy once I get it-
I will be on beaches around the world picking apples from the forex tree-
The bankster weasels will not get my money----

Bless me- next week I am sure I will get there.......................
Quoting Jhig
lol ... and yet many new traders continue that cycle! (i.e. - let that negative position ride and hope it all of a sudden become positive lol)
I'm embarrassed to admit I was in fact one of those people, it took a while of being financially bashed over the head to get the message, but then I'm not the quickest person on the planet!
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