What does your trading philosophy mean? How important is it? | Page 3 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Forex Trading Philosophy 362 replies

While you wait: Trading philosophy (excluding trades) 5 replies

What's your basic logic/philosophy for trading in simple words? 6 replies

Simple Trading Philosophy - Daily Trend Following 5 replies

Positioning yourself for Success (Advanced Trading Philosophy) 28 replies

What does your trading philosophy mean? How important is it?

  • #41
  • Jun 11, 2019 9:17am Jun 11, 2019 9:17am
In 2015 when I joined FF, I cobbled a trading philosophy which was based on getting a functional trading system/strategy and trading it with efficiency. I came up with: 'Simplicity of system + Consistent efficiency = Trading success.' Since then, it has become apparent to me that simplicity comes with experience. That experience is mainly in terms of mastering the markets and doing proper preparation consistently. This resulted in the first part of my present trading philosophy, 'Do your homework.' Thorough preparation and sound trading skills, imho, would foster simplicity in trading. During the week, I will talk more on the second part of my trading philosophy.

Trade safe.

KP

Quoting KeenPips
Thanks mate for your effort. I am happy that I was not rash to dismiss your initial off-topic post. You will see my trading philosophy at the lower left corner of this post. I intend to explain each key aspect of this philosophy next week. Have a great weekend. KP {quote}
Do your homework, follow the footprints of smart money
  • #42
  • Jun 13, 2019 3:05pm Jun 13, 2019 3:05pm
Quoting KeenPips
I really like that philosophy, 'Keep alive a genuine winning attitude.' If you would like to talk more on that, that will be fine. Trade safe. KP {quote}
According to the great late Mark Douglas a winning attitude is a positive expectation of your efforts with an acceptance that whatever results you get are a perfect reflection of your level of development and what you need to learn to do better. For me to keep alive a genuine winning attitude means to make myself available to opportunities(mostly daily breakouts), to trade according to my money management rules(up to 0.3% risk of my actual equity on every trade), and keep my expectations neutral(hard to achieve). A little bit about myself:
I've been trading forex for almost 15 yrs now but I still can't claim that I am a consistently successful trader, I so much desire. It has been a real rollercoaster and I blew out 2-3 accounts in two futile attempts to trade for a living putting too much pressure on my trading(rosy expectations). Now I am working full time and swing trading as well, building consistency and my account.
Keep alive a genuine winning attitude
  • #43
  • Jun 13, 2019 4:20pm Jun 13, 2019 4:20pm
Thanks mate for the explanation. I also appreciate your sharing your story, which I can identify with. I blew at least four trading accounts in my first 2-3 years of trading but the passion to win and succeed (what you call a genuine winning attitude) is fundamental to my trading psychology.

Trade safe and prosper.

KP

Quoting Thehumble
{quote} According to the great late Mark Douglas a winning attitude is a positive expectation of your efforts with an acceptance that whatever results you get are a perfect reflection of your level of development and what you need to learn to do better. For me to keep alive a genuine winning attitude means to make myself available to opportunities(mostly daily breakouts), to trade according to my money management rules(up to 0.3% risk of my actual equity on every trade), and keep my expectations neutral(hard to achieve). A little bit about myself:...
Do your homework, follow the footprints of smart money
  • #44
  • Jun 14, 2019 10:42am Jun 14, 2019 10:42am
The second part of my trading philosophy is 'follow the footprints of smart money.' Smart money owns the Forex trading business. We can only act after they have shown their hands and intentions. Mastering the markets is important, and that comes with thorough preparation. But following the footprints of smart money requires mastery of the markets, proper trading system and strategy, knowing when to strike and a fair dose of patience.

Trade safe and prosper.

KP

Quoting KeenPips
... the first part of my present trading philosophy, 'Do your homework.' Thorough preparation and sound trading skills, imho, would foster simplicity in trading. During the week, I will talk more on the second part of my trading philosophy...{quote}
Do your homework, follow the footprints of smart money
  • #45
  • Feb 20, 2020 12:10pm Feb 20, 2020 12:10pm
I would say so, a trader's philosophy is formed in the process of his trading, because nobody knows but you how you will be better and does not understand what emotions you will experience while your capital is working in the market. I am convinced that everyone has his or her own signs or some rules, which help in work and can add some confidence. And maybe this is the philosophy that will allow you to stay afloat and find a way out of any situation. My philosophy is probably in my calmness, which I try to observe in any situation. I can't say that I always succeed, but it is definitely what I need to achieve my goals.
  • #46
  • Feb 20, 2020 12:42pm Feb 20, 2020 12:42pm
Quoting KeenPips
Almost every other trader on FF has a trading philosophy. Do you have one? If you have one, what does it really mean in terms of how you see and approach the markets? How important is your trading philosophy to you? Use this thread to address the above and similar questions regarding your trading philosophy. Contributors should be respectful towards other contributors and adhere to FF code of ethics for members. Any deviant of FF code of ethics or off-topic contributor will be sanctioned. KP

It is a great question and one that New Traders should care about a lot.

Trading Philosophy starts with and has everything to do with the Trader's ultimate goals. It cuts to the heart of why the Trader is in the business of Trading. The Trading Philosophy sits at the top of the Hierarchy of Purpose. Its enables a Business Plan, though it is not the business plan itself. A lot of New Traders confuse Philosophy with Theory. Trading Philosophy is the Strategic Intent of the Trader over the course of a full Career. It is a Strategic Approach to Growing Capital as a Trader and the underlying Mission Statement that makes that growth possible. That's a synopsis of the meaning behind Trading Philosophy.

The next step is the development of Trading Theory. Trading Theory ranges from Tactical-to-Practical and involves the development of actual theoretical methodologies that will ultimately be put to use while in the act of trading. Those methods could be derived from Fundamental inputs to Technical inputs for decision making. Whatever Trading Theories the Trader develops, they represent the logical development of actual trading ideas to be deployed for the purpose of growing capital. Trading Theory involves a massive amount of Core Research in the development of fundamental trading ideas that can later be developed into actual Trading Tools. Trading Theory involves working, developing, studying and researching at the level of theoretical concepts and evaluating their usefulness as potential tools for deployment in actual trading. Development of Trading Theory naturally results in the discovery and development of Research Data to be used in the next step.

That next step is the development of Trading Tools and their Integration. The steps after that are Tools Implementation, Testing, Optimization, Evaluation of Performance, Re-Optimization (Tweaking), Deployment and Monitoring. This is a Systematic Process for establishing consistency and competency in Trading. This process establishes the ability to mitigate risk, protect capital and then grow capital (in that order). This is a process that can be used whether the approach to trading is Fundamental or Technical.
  • #47
  • Feb 20, 2020 3:07pm Feb 20, 2020 3:07pm
To patiently look for and trade the most probable setups is very important.

KP

Quoting Sajar
I would say so, a trader's philosophy is formed in the process of his trading, because nobody knows but you how you will be better and does not understand what emotions you will experience while your capital is working in the market. I am convinced that everyone has his or her own signs or some rules, which help in work and can add some confidence. And maybe this is the philosophy that will allow you to stay afloat and find a way out of any situation. My philosophy is probably in my calmness, which I try to observe in any situation. I can't say...
Do your homework, follow the footprints of smart money
  • #48
  • Feb 20, 2020 3:11pm Feb 20, 2020 3:11pm
You really covered a lot of ground in this post. Well done.

Trade safe and you will prosper.

KP

Quoting JetTrader
{quote} It is a great question and one that New Traders should care about a lot. Trading Philosophy starts with and has everything to do with the Trader's ultimate goals. It cuts to the heart of why the Trader is in the business of Trading. The Trading Philosophy sits at the top of the Hierarchy of Purpose. Its enables a Business Plan, though it is not the business plan itself. A lot of New Traders confuse Philosophy with Theory. Trading Philosophy is the Strategic Intent of the Trader over the course of a full Career. It is a Strategic Approach...
Do your homework, follow the footprints of smart money
  • #49
  • Feb 22, 2020 12:14pm Feb 22, 2020 12:14pm
Well, it's a cool question, actually, and I've never thought about it before. Well, speaking briefly about what helped to form me as a trader - it's a huge desire. Because at the first stage of my development in the market, I had nothing that could at least somehow increase my chances of results. Because in fact, I had no huge capital or knowledge about the market. And I had to study everything practically from scratch in order to understand what it is, what mechanisms are there and how I can use them to make money. And if you also remember how long it took, the story would definitely be a very long one. But I wanted to and I did it, so I think that's what happens to other things in life. Well, you're doing exactly what you really want to do.
  • #50
  • Feb 23, 2020 10:47am Feb 23, 2020 10:47am
It seems to me that most of my trading philosophy is not to be afraid of something not working out, or at all my trading session has gone wrong and I understand that I need to make some other decision urgently. In fact, I had some difficulties in trading from day one, because I was in a hurry and because of that I made a lot of impulsive trades, which were harmful to my capital and such situations still happen. But I never let myself get sore or feel sorry for myself, I do error analysis and do my best to ensure that my work is efficient. It seems to me that this is the reason why I can come to positive dynamics and I believe that my work will get better and better over time.
  • #51
  • Feb 23, 2020 11:23am Feb 23, 2020 11:23am
I have no philosophy.
I mean, commerce requires versatile such knowledge that I can't get stuck in philosophy.
  • #52
  • Feb 24, 2020 10:29am Feb 24, 2020 10:29am
I cannot say that I have a certain philosophy, rather I have certain rules that I try to follow in order to increase the efficiency of my trading. First of all, for me the mood and the feeling of myself are very important. If I understand that today everything is falling out of my hands or if I understand that I am too tired, I will have a little impromptu weekend which will allow me to come to my senses and start to get new strength. Secondly, I never make deals before which I have not made a detailed analysis of the situation. Even if at first glance the situation looks perfect and I understand that there is a great chance to earn, I haven't prepared in advance and have only a glimpse at the chart, I will skip this deal in order not to risk my money.
  • #53
  • Feb 24, 2020 4:28pm Feb 24, 2020 4:28pm
So, are you thinking of developing a trading philosophy?

KP

Quoting Cogra
Well, it's a cool question, actually, and I've never thought about it before. Well, speaking briefly about what helped to form me as a trader - it's a huge desire. Because at the first stage of my development in the market, I had nothing that could at least somehow increase my chances of results. Because in fact, I had no huge capital or knowledge about the market. And I had to study everything practically from scratch in order to understand what it is, what mechanisms are there and how I can use them to make money. And if you also remember how...
Do your homework, follow the footprints of smart money
  • #54
  • Feb 24, 2020 4:30pm Feb 24, 2020 4:30pm
A trading philosophy is primarily a simply statement that gives an idea on your outlook on, or approach to, trading.

KP

Quoting tiborf71
I have no philosophy. I mean, commerce requires versatile such knowledge that I can't get stuck in philosophy.
Do your homework, follow the footprints of smart money
  • #55
  • Feb 24, 2020 4:34pm Feb 24, 2020 4:34pm
A simple relationship between a trading philosophy and trading rules is this: TYour trading philosophy should influence the rules you adopt in trading.

KP

Quoting Doomterror
I cannot say that I have a certain philosophy, rather I have certain rules that I try to follow in order to increase the efficiency of my trading...
Do your homework, follow the footprints of smart money
  • #56
  • Last Post: Apr 4, 2020 2:50am Apr 4, 2020 2:50am
"The trading ""style"" that you end up using down the road will likely be some combination of traders that you read about or meet. at least that's what happened with me, but then again i am not the most creative individual out there. i steal a little bit from everyone, and in the end it becomes my own, something i created."
0 traders viewing now