What is the one thing people get wrong when trading forex? | Forex Factory

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What is the one thing people get wrong when trading forex?

  • #1
  • First Post: Nov 6, 2018 11:34pm Nov 6, 2018 11:34pm
In 2006, I've paid almost ¢5k for a reversal pattern disguise as pip counting. It's literally a 123 top or bottom. The reason behind it is the market only trend less than 30% of the time. So trading a channel with this pattern seems to work.

It didn't work for me.

So I continue and then the age old idiom appears.

That the trend is your friend. And trading with the trend helps you gain an edge.

It didn't work for me until I decide to choose which side I want to be friend with.

What about you? What's your take when you first started trading forex?
You're going to pay a price for every bloody thing you do and don't do
  • #2
  • Nov 7, 2018 7:51am Nov 7, 2018 7:51am
The one thing most people get wrong when they come into this business is overestimating themselves and underestimating the markets. Turn that back to front, and with time, a trader might just get somewhere.
  • #3
  • Nov 25, 2018 1:33am Nov 25, 2018 1:33am
Indicators. Most people beleive they get an edge over the market by putting some moving averages up.
Necessity knows no law except to conquer
  • #4
  • Nov 25, 2018 2:27am Nov 25, 2018 2:27am
Quoting newbietofx
In 2006, I've paid almost ¢5k for a reversal pattern disguise as pip counting. It's literally a 123 top or bottom. The reason behind it is the market only trend less than 30% of the time. So trading a channel with this pattern seems to work. It didn't work for me. So I continue and then the age old idiom appears. That the trend is your friend. And trading with the trend helps you gain an edge. It didn't work for me until I decide to choose which side I want to be friend with. What about you? What's your take when you first started trading forex?...
Good question.

My first take was to think I knew what to do, followed a short while (and most of my first account) later by the reality that i didn't! Then there was a period of basically confusion as I tried loads of things and found none of them seemed to work. Then I paused, regrouped and started again in a better way with at least some experience of what doesn't work under my belt.

Eventually, I got to the idea that trading is a probability game and what I needed is a reliable edge plus a structured method with discipline, consistency, risk control and emotional stability to exploit it effectively. My edge is the same as yours - the trend is your friend (until the bend at the end!), never found anything better than that.
  • #5
  • Nov 25, 2018 2:30am Nov 25, 2018 2:30am
Quoting dkrock
{quote} Those would be the people making money
Ya, because an indicator can tell you how the economy will be. Start back and forward testing whatever indicator you want. Be honest to yourself and you will see what i am talking about. Oh and please stop stalking me, if you have personal problem with me, you can drop me a mail. Attacking me then deleting your post is not cool.
Necessity knows no law except to conquer
  • #6
  • Nov 25, 2018 3:32am Nov 25, 2018 3:32am
calm down one's attitude.
  • #7
  • Nov 25, 2018 8:38am Nov 25, 2018 8:38am
The one thing i did wrong was spending too much time focusing on systems and strategies, and now i came too the conclusion that i completely neglected the most important thing in forex witch is psychology and im still trying to improve that know. If someone is starting now in forex my advice is dont be stupid and focus on improving yourself and the decision making process you will have to do every week. A trader with a bad system can survive for months a trader with bad psychology usually lasts a few weeks.
  • #8
  • Nov 25, 2018 8:48am Nov 25, 2018 8:48am
First. Someone said indicators which I agree. Goldman Sachs is not using any indicator that is offered to the public. Believing that any one indicator is going to be the trick, is not correct.

Second. Too short term. Big trends are where it is at. Getting whipsawed out by what happens over the course of an hour isn't the way to be successful
Model 3 All Time Pips: -887
  • #9
  • Nov 25, 2018 8:58am Nov 25, 2018 8:58am
Avoiding fundamentals
  • #10
  • Nov 25, 2018 2:41pm Nov 25, 2018 2:41pm
Thinking that they'll be consistently profitable if they don't have at least 5 years of experience.
  • #11
  • Nov 25, 2018 2:52pm Nov 25, 2018 2:52pm
STOP RUN
  • #12
  • Nov 26, 2018 11:38am Nov 26, 2018 11:38am
Most of people under estimate the market, they feel that forex market not move so quikly or can turn, they can play easily here, but as everything know that forex market run 24 hrs a day....and there is no FIX time to trade. Trade any time with wisely and open eyes.
  • #13
  • Nov 26, 2018 3:31pm Nov 26, 2018 3:31pm
1) Position size
2) Position size
3) Be different
4) Trade large
5) Don't scalp
6) Find your own way
7) Be arrogant about your ability
8) Be humble about your results


Yes there are contradictions there.
  • #14
  • Nov 26, 2018 6:48pm Nov 26, 2018 6:48pm
Thinking anything they buy from gurus is actually going to work
  • #15
  • Nov 26, 2018 7:08pm Nov 26, 2018 7:08pm
Mistakes I have seen people make:

1) Thinking that an EA or indicator will do all of the work for them. It won’t.

2) Not developing a strategy. So simple and yet so many traders just don’t do it. Instead they fumble around, switching from one ‘system’ to the next without ever taking the time to develop, test and refine a strategy.

3) Not accounting for volatility. If you are developing a strategy and have a rule that says (for example) “tp at 10 pips” or “SL at 40 pips” etc, I can practically guarantee that is not going to work in the long term. Why? Because 10 pips in a low volatility period could account for 10% of the daily market movement, while in a high volatility period it could count for only 1%.

4) Using low timeframes.

5) Poor money management. Another very simple idea - Never risk more than 2% of your capital at any time. That super simple rule would save so many traders so much heartache.

6) Underestimating the psychological impact. This often comes to light when a trader moves from a demo account to live, and for the first time experiences the feeling of losing real money. This can lead traders to abandon the rules of an otherwise profitable strategy by (for example) moving stop losses mid-trade or taking profits too early.
  • #16
  • Nov 26, 2018 9:29pm Nov 26, 2018 9:29pm
Biggest mistake newbies make - they fail to understand that DD and losses are part of the business.

Also, there's a big difference between statistics and indicators
Fall seven times, stand up Eight! #GGMU
  • #17
  • Nov 26, 2018 9:42pm Nov 26, 2018 9:42pm
Pursuing pips and profits first, and at all cost while failing to mitigate against preventable losses.

KP
Do your homework, follow the footprints of smart money
  • #18
  • Nov 26, 2018 9:45pm Nov 26, 2018 9:45pm
I'm starting to perfect my strategy. If I go long I enter near support. If I go short I enter near resistance.
  • #19
  • Nov 26, 2018 11:49pm Nov 26, 2018 11:49pm
Quoting dkrock
{quote} ???? What are you talking about? Responding to your post is called “discussion”, not attack. I never said anything about you, unlike how you “actually” just attacked me and insulted me. Explaining the compounding strategy for using a single pair is not attacking you. On this thread you directly contradicted my previous post (making you the stalker), then I simply wrote “those would be the people making money” to your smartass comment. That’s stalking? LOL. I don’t know you, but hey, Welcome to Ignore. That’s like the complete opposite of...
You sir are a liar. Nothing more or less.
Stop deleting your commens and grow up lol
Necessity knows no law except to conquer
  • #20
  • Nov 27, 2018 12:07am Nov 27, 2018 12:07am
Quoting dkrock
{quote} Keep hanging out with doofus_trader, playing Forex police instead of talking to real traders and learning something besides insulting them, talking trash, and posting ignorant opinions. Maybe you can beat how many people have him in their ignore list. Off to a good start messing with me. Good Luck wannabe.
Alright so i asked a guy who claimed to double an 1000$ account in a single day on 1 single instrument. I asked him why is he limiting himself to a single instrument. Then you came and called my question dumb. Insulted me in three different posts, which you deleted 10 minutes later. Stalked me on another thread where you tried to make fun of me and in the end you sent me a PM where you insult like a 10 years old kiddo when i asked you to stop doing this bs. I dont care about dukas neither you, but its funny to get "dkrock started ignoring you" then 10 minutes later "dkrock started following you" and so on notifications. Now you can go back to kindergarten. I wont respond to your bullshht again.

Have fun you liar.
Necessity knows no law except to conquer
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