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Putting a Gun to your Head - 1 Piece of Trading Advice

  • #61
  • Jun 21, 2017 11:37am Jun 21, 2017 11:37am
Quoting Madinvestor
{quote} No, Medici is correct. Institutional players are too large. To generate the returns they require they have to move large amounts of capital and they are the ones who move the market when they get in and out. Retail traders are too small to move the market so, they can dart in and out with small amounts of capital. It is possible to safely generate upwards of six figures with a $5k account. It's not unheard of. You have to factor in skill and frequency into the equation. A skilled day trader would need less capital than an average swing trader,...
No, you are both making assumptions. You are talking about large institutions with large positions. If that is the case then you are correct. Large institutions do not always have equivelant large positions. In the same way, hedge funds can be relatively small.

And your glib comment: "It is possible to safely generate upwards of six figures with a $5k account. It's not unheard of. " Agreed. Every year, year in year out? Good luck with that.
Gone to a better place
  • #62
  • Jun 21, 2017 1:46pm Jun 21, 2017 1:46pm
Quoting aaven
Veterans and Newbies and any one in between, If you had to pick just one piece of advice from your trading career/experience, What would it be? and importantly, Why? Thanks
Advice: Trade longer time frames

Reason why: because it allows you to trade in a way without it sucking up every second of the day. trades on longer timeframes (daily on up) run for weeks or months at a time giving you freedom of time, but also dramatically reducing the stress of the constant ups and downs of the market. Finally, trading longer time frames actually greatly reduces overall risk.
  • #63
  • Jun 21, 2017 2:39pm Jun 21, 2017 2:39pm
let me start off by saying there is NO WAY TO MAKE EASY MONEY. not working a full time job or working for your self, all take hard work, so why would trading be easy ? its not any harder than the job you or I have now. what i do see is a lot of over thinking. keep it simple, take what the Market gives you and and be happy with it .
  • #64
  • Jun 21, 2017 3:23pm Jun 21, 2017 3:23pm
don't wishing always trading......
Trade fearless not careless...
Syed Mohsin Ali Profit This Month: -299
  • #65
  • Jun 22, 2017 2:37am Jun 22, 2017 2:37am
Quoting smikester
There is a lot to learn from the operations of hedge funds and why they win or lose. (or do you disagree?)
There's a lot to learn, but 95% of it is not relevant to the retail trader. The only thing worth learning about is VWAP and how the basic algos based on that work.

So, yes, I largely disagree, at least in the context of this thread.

Quote
Hedge funds can and do have nimble trading just the same as retail traders and probably have better access to information, say, Bloomberg terminals at $30,000 a year and lower trading costs. (or do you disagree?)

Disagree.

The nimble hedge fund trading is not of the same kind as that of the nifty retail trader - due to liquidity requirements and other factors.

Having had access to both Bloomberg terminal and Reuters Eikon, I can assure you that I don't miss them at all, and no longer having access to them doesn't take one penny away from my trading profits.

Quote
Does a retail, lone trader need a large account to safely make a living at forex? I would say so. I mean, to make $100,000 a year safely, you are going to need what? At least $50,000 or $100,000 if you are very good and don't slip up. (or do you disagree?)

Disagree. With a $10k account you can make a decent living, I can assure you from my own experience. 5% of margin in profit per day, on average, for 200 trading days a year makes $100k.
  • #66
  • Jun 22, 2017 2:45am Jun 22, 2017 2:45am
Quoting smikester
{quote} No, you are both making assumptions.
I am speaking from experience, not assumptions
  • #67
  • Jun 22, 2017 4:39am Jun 22, 2017 4:39am
Since we are off-topic now .... you are unusual. Respect to you for achieving that.
However, I have seen traders achieve 3-figure % returns in tables that have been published by the likes of FXCM ... I never saw the same trader appear twice, and no I haven't looked for quite a while.
If you are regularly generating 2000% per year, have you retired? Do you come here for sport?

Quote
"Hedge funds can and do have nimble trading just the same as retail traders"
This is true. Some banks (yes, not a hedge fund) can move a yard on a telephone call based purely on the confidence in the system; retail traders cannot do that.
To know the truth about hedge funds we would need to believe that Soros (or similar) was posting the truth here ... since he took a massive short against the Yen when the 3-arrows of Abe were unveiled.
Carbon-Dioxide: the gas of life! https://youtu.be/ttJBdr6eBuo
  • #68
  • Jun 22, 2017 4:59am Jun 22, 2017 4:59am
Quoting Exodus
Since we are off-topic now .... you are unusual. Respect to you for achieving that. If you are regularly generating 2000% per year, have you retired? Do you come here for sport?
Thanks. Off-topic, for sure. Trading is my only source of income, and has been so for years.

Why come here? Good question. Mostly just an outlet for a social need, perhaps. There are the times when the market isn't that active. But then I do want to help if I can.

Having said that, I believe that most people on forums like this one are looking to trading as a means of escaping the responsibilities of being a human being. For such individuals, the best piece of advice is....grow up!

The few which that doesn't apply to should consider what a successful trader once said: that he could publish his strategy in the newspaper - it wouldn't matter, as nobody would have what it takes to trade it. Add to that the fact that you are extremely unlikely to find anything close to a solid strategy on an online forum, and that you really have to do your R&D yourself, and conclude that trading is far from an easy game, and not for everyone.
  • #69
  • Jun 22, 2017 5:10am Jun 22, 2017 5:10am
Quoting aaven
Veterans and Newbies and any one in between, If you had to pick just one piece of advice from your trading career/experience, What would it be? and importantly, Why? Thanks
If you really are new to FX, get yourself a mentor. That in itself is quite a difficult thing to achieve because there are seemingly limitless people willing to extract money from you on promises.

So you might read threads from here, and do the school here, and afterwards read the mammoth James16 thread .... which seems to have vanished!
You will need pointers on what are realistic parameters in your trading ... which as a newbie you can only get from a mentor.

I draw your attention to post #2
If you persist in wishing to continue I further draw your attention to this and remind you that you may have no other life ... at least temporarily.

Finally, open a $500 account and trade micro-lots. When you can continue trading without having to re-capitalise your account (i.e. it now contains $1k) you are ready to start trading mini-lots. If you blow your account on trading mini-lots go back to $500 and micro-lots, you will be learning the true value of self-discipline at least.

Footnote: If you have experience or calls on your time from other financial markets this may not be useful. These days I find that managing my (for me) massive stocks portfolio is taking nearly all my time. When I have re-positioned it into an income generator requiring only modest supervision I will be back into FX.
Carbon-Dioxide: the gas of life! https://youtu.be/ttJBdr6eBuo
  • #70
  • Jun 22, 2017 5:17am Jun 22, 2017 5:17am
Quoting medici
{quote} he could publish his strategy in the newspaper - it wouldn't matter, as nobody would have what it takes to trade it.
I wholeheartedly agree with this statement. There was a statement I read in a trading book one time that siad, give 10 traders a successful trading strategy and you would have 10 different track records. You have to not only have the discipline to stick to the strategy when it doesn't have an advantage in the market, but also know how to manage the risk associated with that particular strategy. The strategy is only 10% of the battle. I find what matters more is the statistical aspect. IMO, you can enter the market at random as long as you know can determine when it is best for you to do so and how much risk is required.
  • #71
  • Jun 22, 2017 6:29am Jun 22, 2017 6:29am
Quoting medici
{quote} Disagree. With a $10k account you can make a decent living, I can assure you from my own experience. 5% of margin in profit per day, on average, for 200 trading days a year makes $100k.
not bad, so you won from your 10000 many millions in 2 years, respect. i have never heard of someone who had this for many years. you look like the first person on planet to reach this goal with constant 1000% return per year. because of 5% margin dont sound like no Sl using or martingale, so looks like best trading system ever was invented.

of course i am joking a little bit ;-).
  • #72
  • Jun 22, 2017 7:17am Jun 22, 2017 7:17am
Don't try to predict where price is headed.
Trading is a game of probabilities. Its not about predictions.

Trade the setup per your rules. Define your RR and dont change until your sure its to better your edge.

Finding or creating an edge is not the hard part . Having the discipline to implement it over the long haul even through strings of losses.

Imagine your self as a casino owner. Your games all have a slight edge. You just need to deal, roll or spin. Your casino certainly wont change the rules of the game when they have a bad streak. So don't change your trading rules!

Practice visualization, believe its possible to be successful and you will stay on the right path.

Dont listen to those who say trading is impossible. It is possible, but not unless you understand the true meaning of being disciplined. It takes an enormous effort and mental training for most of us to become as disciplined as we need to be each day.

Think about a professional sports player. He trains every day because he is a professional.

Guess that wasn't exactly a single piece of advice but hope it helps.
  • #73
  • Jun 22, 2017 7:22am Jun 22, 2017 7:22am
Trading can only be learned, not taught.
Market is your best mentor.
Muahahahhahah...
  • #74
  • Jun 22, 2017 7:22am Jun 22, 2017 7:22am
One piece of advice. Trade using a Virtual Server. :-)

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  • #75
  • Jun 22, 2017 7:24am Jun 22, 2017 7:24am
Quoting dukas_trader
{quote} not bad, so you won from your 10000 many millions in 2 years, respect. i have never heard of someone who had this for many years. you look like the first person on planet to reach this goal with constant 1000% return per year. because of 5% margin dont sound like no Sl using or martingale, so looks like best trading system ever was invented. of course i am joking a little bit ;-).
Do you have a question, or would you just like to put what I've said in doubt?
  • #76
  • Jun 22, 2017 7:39am Jun 22, 2017 7:39am
Quoting medici
{quote} Do you have a question, or would you just like to put what I've said in doubt?
why a question, you have for many years wins of 1000% per year. you are so one of the most rich people in the world. no question to this, possible by math till 10 billion, more i dont believe you. if you have under 100 million i dont believe you too by this return. so if you know this return, then questions are more have you hunderts of million or billion until today ;-).

or what do you want for questions?
  • #77
  • Jun 22, 2017 7:44am Jun 22, 2017 7:44am
Quoting dukas_trader
{quote} why a question, you have for many years wins of 1000% per year. you are so one of the most rich people in the world. no question to this, possible by math till 10 billion, more i dont believe you. if you have under 100 million i dont believe you too by this return. so if you know this return, then questions are more have you hunderts of million or billion until today ;-). or what do you want for questions?
I have a question - why the sarcasm?
  • #78
  • Jun 22, 2017 8:12am Jun 22, 2017 8:12am
Quoting medici
Be very patient, and follow, don't anticipate - in other words, wait until the direction is clear, and jump on at a low risk point. Then codify that into a number of setups with clearly defined entry triggers.
I agree; that's pretty much what it's about.
  • #79
  • Jun 22, 2017 8:23am Jun 22, 2017 8:23am
Understand that you have to find your own path, you will climb mountains and traverse deserts for that, it could take years and you could even never find it, accept that, enjoy the ride without focusing too much on the destination, don't give up and you will be fine.
Simplicity is the Ultimate Sophistication.
  • #80
  • Jun 22, 2017 9:35am Jun 22, 2017 9:35am
Don't pull the trigger over losses. It's just money. Take the bullets out of the gun and talk with someone, anyone. Too many people end their life over losses and the dark days that follow.

Life is precious. Don't end it because markets wiped you out. Rebuild and flow with the tide.
Ecclesiastes 1:9
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