Hi all,
Like many people lurking around this wonderful forum, I have a desire to learn how to trade forex succesfully. Eventually, I might even be able to do it for a living. However, the learning process has been long and sometimes painful and it is not over yet. This is my story.
When I first funded my account (in Aug 05) I thought I was on my way to untold riches. I would be the exception to the rule and convert my capital to a $million in record time. I had demoed a few methods I'd read about and had been succesful in producing "imaginary wealth" beyond my wildest dreams. Thoughts went to lazy days, doing what I wanted when I wanted, without a financial worry in the world.
However, once I was using real money I found that emotions kicked into my trades that had not been there whilst demoing. My first couple of trades went exactly as I thought they would. I was making small money but I had read the warnings about greed etc etc and I was determined to take it slowly. Suddenly, "greed" snuck up on me and without warning, infiltrated my thought processes. I had made 15% on my account in less than a month without risking more than 5% of my account. If I doubled my pips I could fast-track my trip to personal wealth. Not surprisingly, my trades started being less successful. It took a very short time, and very few trades, to completely erode my profit.
Now, not only was I greedy but I was also doubting my system. Couldn't have been my fault, must have been my systems. So I changed systems. Moved onto one guaranteed to restore both my account and my pride. Why waste time demoing? Jump straight in and have a go. Funnily enough, when that system didn't restore my account the thought process was the same - must be the systems fault. No problem - there were plenty of ideas floating around on forums. I was bound to find one that suited me.
To cut a long story short, for the next 6 months I chopped and changed my way through numerous systems and most of my account. All the classic mistakes - like hanging on to losers too long and cutting winners short and not using stops etc etc etc.
Then I discovered this forum. I read numerous threads and found something I could grasp on the James16 thread. Here was a guy being honest and telling it how it is. There is no shortcut to instant wealth. If it was that easy, everyone would be forex traders. I especially liked the way Jim looked at longer time frames - something I had considered as too slow. I'd tried everything from 4hrs down to 1 minute. Nothing seemed to work, but I was (and still am) determined to succeed at this so I changed my focus.
I took bits and pieces from a number of threads and put my own little twist on them and developed a method that suited my style of trading. I now only trade daily charts. This is what suits ME. Since July I have been trading this method live and making money consistently. Due to the previous steady erosion of my account, I started off with a limited amount of capital. I reduced my trade size and my expectations. I am still so far from the "instant wealth" and "lazy days" dreams that it is not funny but I have recovered most of my account and am slowly making progress.
My advice to new traders (for what it is worth) - find a system/method that suits you. After all, you are the one who has to trade it. Read through the posts on this forum and you will discover many ideas that you could use or adapt. This place is also full of people willing to offer advice and ideas. Read all the posts you can. Keep the good ones and discard the ones that don't fit your style/personality. Most of all, develop patience and perserverance. The light at the end of the tunnel doesn't have to be an oncoming train.
Cheers
Fozzy
Like many people lurking around this wonderful forum, I have a desire to learn how to trade forex succesfully. Eventually, I might even be able to do it for a living. However, the learning process has been long and sometimes painful and it is not over yet. This is my story.
When I first funded my account (in Aug 05) I thought I was on my way to untold riches. I would be the exception to the rule and convert my capital to a $million in record time. I had demoed a few methods I'd read about and had been succesful in producing "imaginary wealth" beyond my wildest dreams. Thoughts went to lazy days, doing what I wanted when I wanted, without a financial worry in the world.
However, once I was using real money I found that emotions kicked into my trades that had not been there whilst demoing. My first couple of trades went exactly as I thought they would. I was making small money but I had read the warnings about greed etc etc and I was determined to take it slowly. Suddenly, "greed" snuck up on me and without warning, infiltrated my thought processes. I had made 15% on my account in less than a month without risking more than 5% of my account. If I doubled my pips I could fast-track my trip to personal wealth. Not surprisingly, my trades started being less successful. It took a very short time, and very few trades, to completely erode my profit.
Now, not only was I greedy but I was also doubting my system. Couldn't have been my fault, must have been my systems. So I changed systems. Moved onto one guaranteed to restore both my account and my pride. Why waste time demoing? Jump straight in and have a go. Funnily enough, when that system didn't restore my account the thought process was the same - must be the systems fault. No problem - there were plenty of ideas floating around on forums. I was bound to find one that suited me.
To cut a long story short, for the next 6 months I chopped and changed my way through numerous systems and most of my account. All the classic mistakes - like hanging on to losers too long and cutting winners short and not using stops etc etc etc.
Then I discovered this forum. I read numerous threads and found something I could grasp on the James16 thread. Here was a guy being honest and telling it how it is. There is no shortcut to instant wealth. If it was that easy, everyone would be forex traders. I especially liked the way Jim looked at longer time frames - something I had considered as too slow. I'd tried everything from 4hrs down to 1 minute. Nothing seemed to work, but I was (and still am) determined to succeed at this so I changed my focus.
I took bits and pieces from a number of threads and put my own little twist on them and developed a method that suited my style of trading. I now only trade daily charts. This is what suits ME. Since July I have been trading this method live and making money consistently. Due to the previous steady erosion of my account, I started off with a limited amount of capital. I reduced my trade size and my expectations. I am still so far from the "instant wealth" and "lazy days" dreams that it is not funny but I have recovered most of my account and am slowly making progress.
My advice to new traders (for what it is worth) - find a system/method that suits you. After all, you are the one who has to trade it. Read through the posts on this forum and you will discover many ideas that you could use or adapt. This place is also full of people willing to offer advice and ideas. Read all the posts you can. Keep the good ones and discard the ones that don't fit your style/personality. Most of all, develop patience and perserverance. The light at the end of the tunnel doesn't have to be an oncoming train.
Cheers
Fozzy
