i agree with dial
EVERY system out there will be profitable if given enough time, PROVIDED that you are a patient and smart trader.
Maybe first and last journal entry on forex.
This is a summary of my dismal performance trading forex markets. I am hoping that by posting this I can get over the markets and move on.
Also to publicly expose this dismal performance as a wake up call for me.
Some self directed therapy if you will.
And it may help newbies learn from a real example of what can happen if you lack discipline, patience and the ability to stick to a plan or even have a plan. Even though you may have alot of commitment, which I certainly don't lack.
I started out demoing late last year for 3mths with amazing results (see below). This gave me the confidence to open a live account with a minimum amount of money (2000) as advised. But the real market created nothing but headaches for me. All my original trading account has gone over the last 6 mths plus the few hundred extra dollars I put in on top to cover losses.
The market has taken over my life. It is all I think about. I spend all my available time working on it, watching it and trying to trade it profitably.
But whether there was not enough capital or time or whatever, I would always just miss the boat and things have slowly but surely deteriorated.
My original demo strategy (the one that made heaps of money) didn't work in the real market.
So then I was jumping from one strategy to the next on a weekly basis, because the strategies weren't producing the required results.
I already knew that this was not the right thing to do. I already knew all the mistakes that I was making and why I was making them.. even before I made them.... because I had spent so much time researching and learning about forex. But theory and practice are separated by the chasm of experience.
I must admit, though, that some of the most promising strategies seem to be here on the factory. But by the time I had discovered this forum, I think it might have been too late (story of my life) because my confidence and my account were at a critical level..........
21/09/2006
Well I just got my third margin call in 6mths (the second in two days), thankfully its taken my account just below $50 so now i can't trade until i have learnt to trade properly - whatever that means. Should I withdraw that money now, it will cost me 50% to get the money out, not worth it.
It just seemed to make sense that if you consistently traded a demo account from 50,000 to 4 million in 30 days (sometimes less), for 3 mths running, that you might have a small chance of acheiving at least a mildly profitable outcome in the real market.
Certainly not the case. I have obviously not demo-ed for long enough. But what is the point of demoing if the real market produces different results. And 2000% a week return is not good enough to start!!!
You can never know this unless you trade the real market. But by then you are trapped with a crap strategy or method that doesn't work, so you need to try out a million other crap strategies to compensate, but you will run out of money before you find the right one, because there isn't one.
Why on earth was retail forex brokering offered in the first place. From what I have been reading, brokers don't bother hedging opposing positions with their clients because they know that the client will lose, because the clients don't know how to trade properly. And no-one is going to let their clients know how to trade properly. Thankfully, as advised, I have only used a very tiny amount of my money on this crazy endeavour.
Maybe I will come back after 10 years of demoing and we might see then. Maybe I won't waste another second of my precious life doing something that, if you fail, leaves you with absolutely nothing to show for your efforts. At least if I was a failed artist, I would have some crappy art works to hang around the house.
Perhaps I am not dumb enough to trade the markets. Perhaps its best if little guys stay out of the markets altogether.
I can achieve a far greater return on my capital by leaving it in a savings account than i can trading the markets. The market gives you a guaranteed minus (-)100% return on capital within the first 3 minutes versus a guaranteed 6% p/a from a bank. That means that after 3 minutes you will be roughly 100% ahead of the market. Wow, no retail forex broker sales pitch mentions that fact.
I have persisted with the market just to give it a chance that maybe things will improve, but they only got worse.
I tested different strategies, accessed more information (how much do you really need - isn't the golden rule that 'price = information'.) Ultimately it was impatience to recover from losses..... which were allowed to grow too large....... because I would sit there like a stunned rabbit in the headlights, hoping for the trade to turn.... and trading scared by taking off small (but potentially large) profits because the market was heading back the other way, but only breifly, which has caused the most serious damage.
I shouldn't have bothered though, because the market won't give you a chance.
The smallest of errors gets penalised greatly. Even if you make the right call on a trade, your execution has to be infinitely precise.
There is really no point in opening a trade because there is a 100% chance that it will immediately turn against you. This will always be the case.
ffwuc's golden rule = You will always lose in the market, always.
Even luck is not a factor. Even if you win, you have still lost, because you will get overconfident and lose tomorrow.
Whatever I saw was the most obvious way for the market to go, it would always go the other way, and then if I tried to apply reverse psychology to that strategy (the most logical conclusion)... it still went the other way.
There it is. No way that anyone can ever win in the market.
I challenged you to prove me wrong.
If anyone on this forum wants to trade my live account for half or more (negotiable) of the profits to prove me wrong, you can contact me at [email protected]. The results can be published in this journal.
Here I go again... a forex junky looking for another fix..................
