Guys, its all about looking at your psychology. Without it, you wont know how to handle drawdowns with your chosen system.
i made this mistake.
Now psychology for me is all i read about.
This guys blog is great for anyone getting involved in forex.
Personally focus on comfortable risk parameters. Find a value of money that doesn't make a difference to you if you were to lose it.
If you have to worry about your psychology you should see a therapist and shouldn't consider trading FX. Most retail traders trade with to much risk and that leads to psychological issues and fear of losing. So find a lot size that you don't care about when things hit the fan. Always use a stop loss and try to make 2 times more than your risk.
Find a value of money that doesn't make a difference to you if you were to lose it.
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I better guess that for this we need to trade a demo account in order to learn the trading processes easily without being loosing our real money. Many brokers offer the demo account for free so that traders could test the processes offered by these brokers and if i am not missing, i guess the hotforex broker whom i am trading with offers demo account which is free and can be accessed without depositing any amount with the broker.
{quote} I better guess that for this we need to trade a demo account in order to learn the trading processes easily without being loosing our real money. Many brokers offer the demo account for free so that traders could test the processes offered by these brokers and if i am not missing, i guess the hotforex broker whom i am trading with offers demo account which is free and can be accessed without depositing any amount with the broker.
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Almost every broker indeed offers a free demo but for most of them it's just a tool to convert new clients. Every new guy to trading should open demo accounts to as many brokers as he can and besides learning choosing the one that offers the highest advantages (LEAVING ASIDE PROMISES AND STUFF LIKE THAT, keep in mind low spreads, better off for it to be and STP broker and most important the ones that are till giving bonuses are of course not compliant to the regulators and you'll probably lose your money with their help).
Here are some rules that I use and that are maximizing my earnings and minimizing the risk:
Regardless of what the leverage the brokers offer I use 1:1 per trade
- the lots traded times the leverage always equals the equity, for example theprice times the share/number of contracts for a commodity or index needs to be as close to 1 to 1 - at a $1500 account for Apple shares at $150 per share, 10 shares will put me in a leverage of 1:1.
- it keeps you safe from big market movements and allows you to build a portfolio. If I have more trades like the one on Apple I can go to as far as a leverage of 1:5 with opening 4 more trades. It's safe even at a 5% drop per instrument.
Always put a stop loss in profit (search for brokers that allow this)
- If I have a buy from $100 on a share and it goes up to $110, I put the stop loss at $107 and a take profit at $115. I have my profit secured and as it goes up I just modify the SL and TP.
Here are some rules that I use and that are maximizing my earnings and minimizing the risk: Regardless of what the leverage the brokers offer I use 1:1 per trade - the lots traded times the leverage always equals the equity, for example the price times the share/number of contracts for a commodity or index needs to be as close to 1 to 1 - at a $1500 account for Apple shares at $150 per share, 10 shares will put me in a leverage of 1:1. - it keeps you safe from big market movements and allows you to build a portfolio. If I have more trades like the...
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If you got maximal result by following these instructions especially risk management approach , please share your profit chart by screen shot . it would be great and trustworthy.
{quote} If you got maximal result by following these instructions especially risk management approach , please share your profit chart by screen shot . it would be great and trustworthy.
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I count my p/l at the end of each month and quarter. If you have any more questions please ask.
Haaa haa. Why ? you didnt trust his profit maximization ? but the risk managing approach you have explained , I appreciate that really. Thank you
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As you can see in the print screen, I have a bigger income than the one from trading because of the structure of the broker i'm with. You can't have 4k profit in one month from 1.5k balance without taking big risks so for the time being i'm more focused on expanding my business than trading. Bottom line:
- i'm trading since 2011
- i had a lot of ups and downs
- i lost a lot of money before i got the hang of things
I posted one of my rules to trade well and actually started this thread so you shouldn't go through the same trial and error process. I'll wait for your message if you want more info.
{quote} As you can see in the print screen, I have a bigger income than the one from trading because of the structure of the broker i'm with. You can't have 4k profit in one month from 1.5k balance without taking big risks so for the time being i'm more focused on expanding my business than trading. Bottom line: - i'm trading since 2011 - i had a lot of ups and downs - i lost a lot of money before i got the hang of things I posted one of my rules to trade well and actually started this thread so you shouldn't go through the same trial and error...
I request for all beginners don’t blindly trust advice you receive on the Internet especially when it comes to financial analysis. Don’t assume that the person making the analysis necessarily knows more than you.
Learn with yourself, trust your knowledge and try to learn skills that can make you the good trader in this world. Do not trust anyone blindly.
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Yes , great message , generally beginners trust blindly some Fx mentors but that is not appropriate to survive in here . I always try to depend on my trading discipline . it always make sure a maximal result by trading but sometimes I fall a great loss when try to take revenge .
Learn with yourself, trust your knowledge and try to learn skills that can make you the good trader in this world. Do not trust anyone blindly.
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I couldn't have put it better. When it comes to trading one should rely first and foremost on themselves. Don't blindly trust people, especially the ones trying to sell you things.
{quote} I couldn't have put it better. When it comes to trading one should rely first and foremost on themselves. Don't blindly trust people, especially the ones trying to sell you things.
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Agreed 100%.
@ALL
This is why the best option that a person has is to make an average of his information from multiple sources, the best ones in my opinion are the ones that can have also feedback such as a forum/blog etc. Test them on demo before applying them in your real account so you have a good understanding of what is going on. My strategies are both personal and also "stolen" from other traders. Don't take my word for it, test what I wrote in this thread and then see for yourself.
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Joined Dec 2015
|3,529 Posts
I agree. Whatever it is that you learn from someone else, always test it extensively on your own. Don't think automatically that it will work the same way for you the way it does for someone else.
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Joined Mar 2017
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You just added here few topics; it would be better if you discuss here with details about all of your topics! By the way, having a profitable trading strategy is always important! You may notice all of professional Forex traders are trading with a particular trading strategy.
