5 reasons why you are not making a living from your trading | Forex Factory

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5 reasons why you are not making a living from your trading

  • #1
  • First Post: Edited May 5, 2020 6:51am Apr 30, 2020 7:12am | Edited May 5, 2020 6:51am
Hello guys,

here your fallacy from what emerges from forums and websites.

1) You think there are patterns and that some indicators will catch the patterns. You are not able to think counterintuitively without external 'help'. Plus, you are not able to distinguish between a real reason why and a fake reason why. A real reason why is what Order Flow Analysis relies on. Fake reasons why come with all the 'mechanical' strategies, made of indicators and rules stacked one over the others with no logical propositions.

2) You think that placing pending orders and waiting is not ok. You want emotions in your daily routines and you seek them in trading. Plus, you are not farming patience and detachment.

3) You think that trading is not so hard once you learn it. You think that there is something 'technical' to learn, but the only thing to learn is to become different in the mindset and nobody is really willing to accept a real mindset change

4) You think that someone must have the right EA or the right notions because there is always somebody making a lot of noise about their fake results which are shown as hypotetically glorious

5) You think that trading for you and your retail friends is something viable, while if 10 of you invest collectively your 10k each into a new broker or into gastronomic activities you make the only viable thing of your life.
  • #2
  • Apr 30, 2020 7:48am Apr 30, 2020 7:48am
Just write one way to make money.
Please excuse the bad English via Google Translate.
  • #3
  • Apr 30, 2020 8:20am Apr 30, 2020 8:20am
1. You trade when you are desperately in need of money.
2. You listen to what others say.
3. You trade based on the high impact news of the day.
4. You trade only patterns.
5. You gamble all your money on one 'sure trade.'

KP
Do your homework, follow the footprints of smart money
  • #4
  • Apr 30, 2020 9:47am Apr 30, 2020 9:47am
Quoting DavideCash
Hello guys, here your fallacy from what emerges from forums and websites. 1) You think there are patterns and that some indicators will catch the patterns. You are not able to think counterintuitively without external 'help'.
It is impossible to make money with technical instruments.
  • #5
  • Apr 30, 2020 9:48am Apr 30, 2020 9:48am
Quoting DavideCash
2) You think that placing pending orders and waiting is not ok. You want emotions in your daily routines and you seek them in trading. Plus, you are not farming patience and detouchment.
Trading is the hardest way to earn a living and the least smart.
  • #6
  • Apr 30, 2020 9:50am Apr 30, 2020 9:50am
Quoting DavideCash
3) You think that trading is not so hard once you learn it. You think that there is something 'technical' to learn, but the only thing to learn is to become different in the mindset and nobody is really willing to accept a real mindset change.
Only insiders or liquidity providers have chances to make systematic money out of this mess.
  • #7
  • Apr 30, 2020 9:51am Apr 30, 2020 9:51am
There is only one reason: under-capitalization.
  • #8
  • Apr 30, 2020 9:52am Apr 30, 2020 9:52am
Quoting DavideCash
4) You think that someone must have the right EA or the right notions because there is always somebody making a lot of noise about their fake results which are shown as hypotetically glorious 5) You think that trading for you and your retail friends is something viable, while if 10 of you invest collectively your 10k each into a new broker or into gastronomic activities you make the only viable thing of your life.
Trading is not smart-working, it is not a matter of analyzing the past, money in trading is all about informational asymmetries and insiding.
  • #9
  • Apr 30, 2020 9:54am Apr 30, 2020 9:54am
Quoting OutThere
There is only one reason: under-capitalization.
To me and to all the people a correct capitalization led to 50% DrawDown is not trading, it is praying

You can invest 1 Million, but still you will experience a risk to lose much more than you can even accept in your lucid dreams and this is not rational.
  • #10
  • Apr 30, 2020 10:13am Apr 30, 2020 10:13am
Quoting DavideCash
{quote} To me and to all the people a correct capitalization led to 50% DrawDown is not trading, it is praying You can invest 1 Million, but still you will experience a risk to lose much more than you can even accept in your lucid dreams and this is not rational.
If someone is trading 10K and has 50% dd, add 990000 to their balance and that dd becomes .5%.
There is a certain so called successful trader on this forum that keeps posting only his positive trades and there are a lot of them. As for his negative trades, he doesn't show them or care because he claims to have such a big account that his dd is too little to care for. So, apparently, with a large account, you can easily make a lot of money for every day use trading FX.
You and I may not know that because we don't have that large account and are trying to double our 1 and 10k accounts. He needs to make 1% of that one million per month to double the 10K and that is probably more than enough to pay his expenses and that will certainly beat the bank interest rate too.
  • #11
  • Apr 30, 2020 11:16am Apr 30, 2020 11:16am
Quoting OutThere
{quote} If someone is trading 10K and has 50% dd, add 990000 to their balance and that dd becomes .5%. There is a certain so called successful trader on this forum that keeps posting only his positive trades and there are a lot of them. As for his negative trades, he doesn't show them or care because he claims to have such a big account that his dd is too little to care for. So, apparently, with a large account, you can easily make a lot of money for every day use trading FX. You and I may not know that because we don't have that large account and...

I don't agree that more money keeps the DD proportionally lower, on the contrary I am sure that this is the kind of mindset of a frustrated martingale gambler:
you keep averaging your trades down and you blame the fact you don't have enough funds to avoid the DD, but THERE IS NEVER ENOUGH FUNDS FOR AVOIDING DD.
You fight against large drawdown and long waiting / holding times.
You are always on the market, floating with all the seasickness that would drive you crazy if you were to earn a living on this only.
If you keep averaging down you are not on the right way whatever the balance, you risk to lose the control of your DD even if you invest 1 milion: you don't reduce the DD automatically.


Whatever the %/month in your target, you first have to recover all the loss due to 'errors', 'misinterpretations', 'accidents', the more you trade the more you risk to lose. No matter your leverage, you have to trade a lot for whatever target you want. If you leverage very little, then you have to build a pipeline of good trades out of that of bad trades. Maybe, surely, one day you start to imagine how could be your life if instead of leveraging so low investing 1 million you would invest 100k with higher risk and shorter-lived trades. So many psychological traps you cannot even realize to be caught into are going to ruin a man.
  • #12
  • Apr 30, 2020 11:22am Apr 30, 2020 11:22am
So you are saying there is no way to make money as a retail trader in these markets? Otherwise, what the correct way to make money?
  • #13
  • Apr 30, 2020 11:26am Apr 30, 2020 11:26am
Quoting DavideCash
{quote} I don't agree that more money keeps the DD proportionally lower, on the contrary I am sure that this is the kind of mindset of a frustrated martingale gambler: you keep averaging your trades down and you blame the fact you don't have enough funds to avoid the DD, but THERE IS NEVER ENOUGH FUNDS FOR AVOIDING DD. You fight against large drawdown and long waiting / holding times. You are always on the market, floating with all the seasickness that would drive you crazy if you were to earn a living on this only. If you keep averaging down you...
Yes, that is trading life.
I am glad you with your wisdom have overcome all those issues.
Sounds like you turn your platform on, take $1000's in a second from the market and turn it off and walk away.
Great. Now don't forget to pay your dues to the charities.
  • #14
  • Apr 30, 2020 11:29am Apr 30, 2020 11:29am
Quoting OutThere
{quote} Yes, that is trading life. I am glad you with your wisdom have overcome all those issues. Sounds like you turn your platform on, take $1000's in a second from the market and turn it off and walk away. Great. Now don't forget to pay your dues to the charities.
For sure in some part of this forum I am giving nice trade suggestions, with all the reasons why. Are you doing anything useful?
  • #15
  • Apr 30, 2020 11:31am Apr 30, 2020 11:31am
Quoting JacolineFIS
So you are saying there is no way to make money as a retail trader in these markets? Otherwise, what the correct way to make money?
The way exists and it is your way, if you do something that someone else is doing, then you will not have any advantage. You have to be crazily different and you don't need to give importance to trading.
  • #16
  • Apr 30, 2020 11:31am Apr 30, 2020 11:31am
Quoting JacolineFIS
So you are saying there is no way to make money as a retail trader in these markets? Otherwise, what the correct way to make money?
There are so many correct ways
Even more wrong ways

This is what confuses the retail trader

Find your edge and abuse it, that is the holy grail
its just a script. join the club
  • #17
  • Apr 30, 2020 11:56am Apr 30, 2020 11:56am
Quoting DavideCash
{quote} For sure in some part of this forum I am giving nice trade suggestions, with all the reasons why. Are you doing anything useful?
Nope. I don't feel particularly useful right now. Thanks for asking.
  • #18
  • Apr 30, 2020 12:23pm Apr 30, 2020 12:23pm
hello, I'm a newbie here lol.... pls can some one explain to me how to avoid news volatility, when trading on a longer time frame
  • #19
  • Apr 30, 2020 12:39pm Apr 30, 2020 12:39pm
6. How about the rest of the people that don't fall under those 5 categories?
  • #20
  • Apr 30, 2020 12:41pm Apr 30, 2020 12:41pm
whoorn ... whoornn .... whoornn .... The only thinggyy .. is .... coz .. you wanna be a pro trader ... and willin to live the live like apro trader ...

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