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Professionals don't trade every day

  • #1
  • First Post: Edited 2:19pm Aug 12, 2018 5:03am | Edited 2:19pm
Professionals have to be very patient like lions.Lions don't hunt 20 times a day.Don't need to trade everyday, 20 times a day.

Bill Lipschutz a great currency trader also agrees that less is more with the following quote.

If most traders would learn to sit on their hands 50 percent of the time, they would make a lot more money.
“How come you’re not trading?” The fact of the matter is, if most traders would learn how to sit on their hands 50 per cent of the time, they would make a lot more money.

‘Let’s say you take one position each day over a period of 250 trading days in a year. You know what it’s going to come down to? It’s going to come down to five trades, three of which are going to be horribly wrong and you are going to lose a fortune, two of which are going to be amazingly right and you are going to make a fortune. And in between, the other 245 times are not going to matter – you’ll make a little and lose a little. They will be all those times when you should probably be sitting on your hands, and you’ll be scrambling to get out even, or you are not paying attention and losing a large amount when there was a low probability of profiting on the trade to begin with. It all really comes down to a few decisions.

An analysis was done using automated trading advisors on gbp usd and eur usd. Avoiding the first 4 trades per instrument per day,resulted in a 40% increase in profit per trade.In fact, the more trades you take, the less of a chance you’ll have at becoming consistently profitable. This is especially true when you are just starting out in the Forex market.

Anylysis of 50,000 trades.
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Click to Enlarge Name: not first 4.jpg Size: 60 KB
Attached File(s)
File Type: xlsx GPBUSD-EURUSD 4.xlsx   4.5 MB | 604 downloads
  • #2
  • Aug 12, 2018 6:27am Aug 12, 2018 6:27am
I want to do a second correlation analysis , to see if correlated trading is more profitable .

To do this I need to take trades only , on days when two correlated instruments both give a signal.I will ignore the first trade , but if second trade happens on a correlated pair , the first trade is accepted for entry on the first and second trades.This is only way to check correlated results, unless someone has better idea.

Here is excel sheet , if anyone can help in doing this exercise.Task to remove trades ,on days when both don't have a signal simultaneously.

Time is included in first two worksheets.Anyone help with excel?
Attached File(s)
File Type: xlsx GPBUSD-EURUSD drawdown to profitdata no fourXX.xlsx   3.4 MB | 269 downloads
  • #3
  • Aug 12, 2018 3:10pm Aug 12, 2018 3:10pm
The results of post 2 showed the following

40 % more profit by avoiding first 4 trades (post1), plus 25 % more profit by trading correlations (post 2) and 5 % + better by trading after 11.00 and 25 % more profit by avoiding scalping and day trading, that is a potential 100 % improvement in profits.
  • #4
  • Aug 13, 2018 3:25am Aug 13, 2018 3:25am
25 % more profit by trading correlations

here are the results

free correlation indicators here

https://www.forexfactory.com/showthread.php?p=11334675#post11334675

https://www.forexfactory.com/showthread.php?t=802856

more about professionalism

https://www.forexfactory.com/showthread.php?t=804723
Attached File(s)
File Type: xlsx Workdone.xlsx   2.2 MB | 251 downloads
  • #5
  • Aug 13, 2018 5:06am Aug 13, 2018 5:06am
subs
  • #6
  • Aug 13, 2018 5:41am Aug 13, 2018 5:41am
coded into eas suntzu

The art of war trading skills

 

  1. Victorious warriors win first and then go to war, while defeated warriors go to war first and then seek to win.
  2. He will win who knows when to fight and when not to fight.
  3. When strong, avoid them.Attack their weaknesses.
  4. The greatest victory is that which requires no battle.
  5. Let your plans be dark and impenetrable as night, and when you move, fall like a thunderbolt.

https://www.forbes.com/sites/ericjackson/2014/05/23/sun-tzus-33-best-pieces-of-leadership-advice/#19dafb415e5e

  • #7
  • Aug 13, 2018 7:08am Aug 13, 2018 7:08am
Basically, pro traders don’t look after the date or day; they concentrate on the entry quality.
  • #8
  • Aug 13, 2018 7:55am Aug 13, 2018 7:55am
" Professionals don't trade every day " needs qualifying.

Some do, some don't. If you are talking about institutional traders trading from the big finance houses in London, Toky or New York for example, these guys are trading sometimes every few seconds. If you are talking about pro retail traders, then it depends upon the time frame they are trading off, so a scalper may place 50 trades a day or more trading off of a 10 second tf, whilst someone trading off of the hourly may trade once a day, daily once or twice a week, so it's all relative.

It can be summed up by saying whenever or however you trade, you trade the signals when they present themselves, whether they be once a week, or once every 5 minutes.
  • #9
  • Aug 13, 2018 8:08am Aug 13, 2018 8:08am
Pros don't think in terms of profits, losses, when to trade... they think in probabilities.

They take a trade when the rules say to take it under no circumstances. They're in the "zone," a mindset in which they don't mind losing as long as they know after 20 trades, they're profitable overall.
  • #10
  • Aug 13, 2018 8:50am Aug 13, 2018 8:50am
Quoting raklian
Pros don't think in terms of profits, losses, when to trade... they think in probabilities. They take a trade when the rules say to take it under no circumstances. They're in the "zone," a mindset in which they don't mind losing as long as they know after 20 trades, they're profitable overall.
You sound like you're quoting straight out of a book - if only trading was this easy!

No one here on forex factory gives a monkeys about what pro traders do or do not do ( again, you need to qualify what you mean by ' Pro Trader ' )

Most people viewing this thread are not yet consistently profitable, in fact, most people who view this forum are not. Therefore, as work from home retail traders, what we need to pay our greatest attention to is our own performance. Long before we are able to trade using the probabilities mindset ( if we were robots, we could ) we have to have a tried and tested method for entering, managing a trade, and exiting the market, which is in fact nothing more than the knowledge and experience we have acquired studying and trading the markets. This will gradually instill in us the psychological tenacity required to be able to trade in the way you refer to above. Until we have reached this stage, we need to be methodical, patient, and extremely disciplined, taking only those live trades that conform to our methodology and that we recognize as having a good to high probability of succeeding.

Anything less, whilst we are still learning as it were, will result in inconsistency, self-sabotage, loss of confidence, and blown accounts. We need to build a thorough foundation before consistent success can be achieved, and this takes a lot longer than most people relatively new to the business realize.
  • #11
  • Edited 9:34am Aug 13, 2018 9:01am | Edited 9:34am
i'll never stop laughing in this fancy forum i think

a no professional traders talking about professional trading !!! what the hack man

rule number one for noob out there
any one success first thing he will no longer be here
rule number two
anyone claim success tell him to give you access to his more than a year account

cheers
  • #12
  • Aug 13, 2018 9:04am Aug 13, 2018 9:04am
Quoting cat
" Professionals don't trade every day " needs qualifying. .
A professional knows when to trade, when not to trade .He usually takes quality trades and has the patience to sit it out with a trade for a week. He knows the psychological demons associated with scalping and day trading.He does not mind missing trades, fear of losing and has conquered hundreds of psychological flaws of the human mind, when related to trading.He know the instrument behavior, market behavior and probable next move, before it happens.

Neither a person who makes 50 trades a day is not going to survive taking 1 tick scalping , when his loss can be 50 nor is the day trader who won't last , considered a professional.Professionals have mastered past all the obstacles you mentioned in the last post, once they move out of the status mentioned , I consider them professional.
  • #13
  • Aug 13, 2018 9:07am Aug 13, 2018 9:07am
Quoting loozers
{quote} A professional knows when to trade, when not to trade .He usually takes quality trades and has the patience to sit it out with a trade for a week. He knows the psychological demons associated with scalping and day trading.He does not mind missing trades, fear of losing and has conquered hundreds of psychological flaws of the human mind, when related to trading.He know the instrument behavior, market behavior and probable next move, before it happens. Neither a person who makes 50 trades a day is not going to survive taking 1 tick scalping...
are u talking about ur self as a pro trader or that is ur imaginary pro trader friend

my imaginary freind called germanmax and he know a shit

whats the name of ur imaginary friend ?
  • #14
  • Aug 13, 2018 9:10am Aug 13, 2018 9:10am
oh man such a world should not exist

there's something not right
  • #15
  • Aug 13, 2018 9:15am Aug 13, 2018 9:15am
Quoting llxx77dd
oh man such a world should not exist there's something not right
Look free profitable EA for you. Now go and peddle it. My friend the pro is greater than us small guys. They show pro profits and profitable.

https://www.forexfactory.com/showthread.php?p=11362517#post11362517
  • #16
  • Aug 13, 2018 9:22am Aug 13, 2018 9:22am
Know your enemy and know yourself and you can fight a hundred battles without disaster. Sun Tsu
Pecuniae obediunt omnia
  • #17
  • Aug 13, 2018 9:24am Aug 13, 2018 9:24am
Quoting loozers
{quote} Look free profitable EA for you. Now go and peddle it. My friend the pro is greater than us small guys. They show pro profits and profitable. https://www.forexfactory.com/showthread.php?p=11362517#post11362517
nothing in this world is smart, so how there's someone smart more than this world!

anyway nice chit chat, passing time is my first cot in here
  • #18
  • Aug 13, 2018 9:26am Aug 13, 2018 9:26am
Quoting PIPot
Know your enemy and know yourself and you can fight a hundred battles without disaster. Sun Tsu
hhhhh

forget about what i said before i think there is someone smart in this world,,, its me
  • #19
  • Aug 13, 2018 1:15pm Aug 13, 2018 1:15pm
Quoting loozers
.... Bill Lipschutz a great currency trader also agrees that less is more with the following quote. If most traders would learn to sit on their hands 50 percent of the time, they would make a lot more money....
Being right and sitting tight:

"And right here let me say one thing: After spending many years in Wall Street and after making and losing millions of dollars I want to tell you this: It never was my thinking that made the big money for me. It always was my sitting. Got that? My sitting tight! It is no trick at all to be right on the market. You always find lots of early bulls in bull markets and early bears in bear markets. I've known many men who were right at exactly the right time, and began buying or selling stocks when prices were at the very level which should show the greatest profit. And their experience invariably matched mine- that is, they made no real money out of it. Men who can both be right and sit tight are uncommon. I found it one of the hardest things to learn. But it is only after a stock operator has firmly grasped this that he can make big money. It is literally true that millions come easier to a trader after he knows how to trade than hundreds did in the days of his ignorance." Edwin Lefevre, Reminiscences of a Stock Operator, pgs 68-69.

I believe Bill Lipschultz is alluding to being right and sitting tight. He is also alluding to the fact that a trader should hold out for his highest probability set- ups (even if those are less than 25%), rather than take lower probability set-ups, just because " traders trade". In fact, he might say, "Gamblers trade. Traders sit.".
Without VSA, you're playing checkers while the Smart Money plays chess.
  • #20
  • Aug 13, 2018 1:24pm Aug 13, 2018 1:24pm
Quoting loozers
The results of post 2 showed the following 40 % more profit by avoiding first 4 trades (post1), plus 25 % more profit by trading correlations (post 2) and 5 % + better by trading after 11.00 and 25 % more profit by avoiding scalping and day trading, that is a potential 100 % improvement in profits.

Examine this quote and back tests.Actual proof of 50,000 trades.

40% more profit by avoiding the first 4 trades daily each on both eurusd and gbp usd

25% more profit when waiting for signals to materialize on both gbpusd and eur usd

5 % better off waiting after 11.00 gmt

25 % more profit by not scalping and day trading.

Avoiding news and nfp is a trade.

No trade is a trade!


https://www.youtube.com/watch?v=nrWAG3w_26k
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