What is the safest way to trade the market? | Forex Factory

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What is the safest way to trade the market?

  • #1
  • First Post: May 24, 2020 7:45am May 24, 2020 7:45am
With the following assumptions in place...
My position size is reasonable.
High performance is not important (No need to make many pips)
I do not need to force myself to place trades frequently.

.....

Sample account
Scenario: Trading part time as passive income.
Account size: 10K
Risk per set of trades: 1% to 2%
Max drawdown tolerance per month: 6%
Profit target per month: Not that important. Looking for small profit. Ideally, no loss if possible.

.....

I am looking for practical ideas to trade the market, with minimal risk exposure.
Pertaining more to aspects of trading styles and methodologies.
Capital preservation over profit gains.
Looking for consistency.
'For the market to work, it needs people who think that they can beat it.'
  • #2
  • Edited 10:13am May 24, 2020 10:01am | Edited 10:13am
Quoting AlastorFate
With the following assumptions in place... My position size is reasonable. High performance is not important (No need to make many pips) I do not need to force myself to place trades frequently. ..... Sample account Scenario: Trading part time as passive income. Account size: 10K Risk per set of trades: 1% to 2% Max drawdown tolerance per month: 6% Profit target per month: Not that important. Looking for small profit. Ideally, no loss if possible. ..... I am looking for practical ideas to trade the market, with minimal risk exposure. Pertaining...
Trade the news/fundamentals- its easy and your risk reward is really high
The CFTC did a report on who were the most profitable traders out of every class-
Technical traders/fundamental traders/market makers etc...fundamental traders are by far the most profitable category of trader.
Check out Jarratt Davis's stuff on you tube- this is all you need really
Be a bit careful trading at the end of the month
Look ahead, Macro=Direction, Levels & Structure = Entry
  • #3
  • May 25, 2020 6:50am May 25, 2020 6:50am
Quoting AlastorFate
With the following assumptions in place... My position size is reasonable. High performance is not important (No need to make many pips) I do not need to force myself to place trades frequently. ..... Sample account Scenario: Trading part time as passive income. Account size: 10K Risk per set of trades: 1% to 2% Max drawdown tolerance per month: 6% Profit target per month: Not that important. Looking for small profit. Ideally, no loss if possible. ..... I am looking for practical ideas to trade the market, with minimal risk exposure. Pertaining...
Don't try to catch tops and bottoms, but have first a good knowledge of the pair/s you are trading and take trades only at the most profitable side of the market.
Looking for profitable short term trades ...|
  • #4
  • Edited 7:53am May 25, 2020 7:40am | Edited 7:53am
Quoting Js3mwtRc
{quote} Don't try to catch tops and bottoms, but have first a good knowledge of the pair/s you are trading and take trades only at the most profitable side of the market.
Catching bottoms and tops are most realiable way do trading. Good way how to do it, hints can find GeorgeAU and Profitfarmers threads
I am not trading his methods but same kind of way. Anyhow what is bottom ? 4H or Daily or Weekly.
Good way is using methods which shows, when you are daily or weekly range top or bottom area with horizontal lines, what i call crunch lines.
Drawing, earlier swings. Trading against crowds. Any sense ?, think about if more than 90% traders are loosing they accounts.
Its solid way trading "trending" and range markets. Money Management play important role, this kind of trading as well psychology.
  • #5
  • May 25, 2020 9:04am May 25, 2020 9:04am
Quoting SFundamental
{quote} Trade the news/fundamentals- its easy and your risk reward is really high The CFTC did a report on who were the most profitable traders out of every class- Technical traders/fundamental traders/market makers etc...fundamental traders are by far the most profitable category of trader. Check out Jarratt Davis's stuff on you tube- this is all you need really Be a bit careful trading at the end of the month
Here is an example

Data from the EU was positive today plus news was released about Germany helping businesses with less than 250 employees

https://www.forexlive.com/news/!/ger...month-20200525

So this is going to help German businesses.

The dax rallied today

https://www.tradingview.com/x/21PJquYm/
Look ahead, Macro=Direction, Levels & Structure = Entry
  • #6
  • May 25, 2020 9:56am May 25, 2020 9:56am
Quoting kk100
{quote} Catching bottoms and tops are most realiable way do trading. Good way how to do it, hints can find GeorgeAU and Profitfarmers threads I am not trading his methods but same kind of way. Anyhow what is bottom ? 4H or Daily or Weekly. Good way is using methods which shows, when you are daily or weekly range top or bottom area with horizontal lines, what i call crunch lines. Drawing, earlier swings. Trading against crowds. Any sense ?, think about if more than 90% traders are loosing they accounts. Its solid way trading "trending" and range...
I don't think George's thread is for a new trader, his system is for more advanced traders and he is trading counter trend moves.
I prefer to have a weekly and daily view for direction and by turning on 1 hour timeframe when I see signs of exhaustion it is more easy to trade the continuation of the new trend not by "fishing" tops/bottoms.
Looking for profitable short term trades ...|
  • #7
  • Edited 11:00am May 25, 2020 10:10am | Edited 11:00am
Quoting Js3mwtRc
{quote} I don't think George's thread is for a new trader, his system is for more advanced traders and he is trading counter trend moves. I prefer to have a weekly and daily view for direction and by turning on 1 hour timeframe when I see signs of exhaustion it is more easy to trade the continuation of the new trend not by "fishing" tops/bottoms.
Difference for me is, i dont need a view of market direction, i am floating on current.

George don't think about trends, if i remember he wrote, he dont belive trends. So what you mean about trends like counter trends? as in his method.
Its possible trade using only two windows without charts, dom and orderflow, reading tape.
  • #8
  • May 25, 2020 11:55am May 25, 2020 11:55am
Quoting kk100
{quote} Difference for me is, i dont need a view of market direction, i am floating on current. George don't think about trends, if i remember he wrote, he dont belive trends. So what you mean about trends like counter trends? as in his method. Its possible trade using only two windows without charts, dom and orderflow, reading tape.
Yes, I remember he doesn't like trends, by trend I mean the most profitable side of the market for weekly and daily charts and after I see a markets higher low (for bearish) or lower high break (for bullish) on 1 hour, easy and safe things for starters.
Looking for profitable short term trades ...|
  • #9
  • May 25, 2020 3:41pm May 25, 2020 3:41pm
i have been trading for 2 years now. The safest way of trading is to not set monthly targets which forces you to take unnecessary trades which ultimately results in losses. Instead set your risk reward ratio to a minimum of 1:3 and do not trade if it is below that. Even if you make 5 wrong trades out of 10 you'll be still in profit .
  • #10
  • May 28, 2020 9:19am May 28, 2020 9:19am
Avoiding overtrading by not doing target based trading. Quite a reasonable approach.
  • #11
  • Jun 18, 2020 7:50am Jun 18, 2020 7:50am
I agree with mak3022. Do not set yourself big goals. Wait a moment to make your perfect trade. Let it be one trade per week but profitable.
  • #12
  • Jun 22, 2020 5:19am Jun 22, 2020 5:19am
Trade Exhaustion which is what George's method is all about.
Trading thin liquidity at the boundary of the charts
  • #13
  • Jun 22, 2020 5:36am Jun 22, 2020 5:36am
bet small
small sl possible
let position run the maximum possible
Uncertainty of the market must be embraced and accepted.
  • #14
  • Jun 22, 2020 11:35pm Jun 22, 2020 11:35pm
Quoting RickM
Trade Exhaustion which is what George's method is all about.
u talking about southern cross thread? they dont reveal the secret ,i couldnt find information on how to use thier method despite of being tried so many posts.they are hideous or thier strategy doesnt work.
  • #15
  • Jun 23, 2020 5:41am Jun 23, 2020 5:41am
Quoting T4Trade
{quote} u talking about southern cross thread? they dont reveal the secret ,i couldnt find information on how to use thier method despite of being tried so many posts.they are hideous or thier strategy doesnt work.
It works but it can't be taught. You need to recognise how price consumes liquidity and then be able to define the different shapes of this consumption.
Hey, are you still stuck overseas.

Rick
Trading thin liquidity at the boundary of the charts
  • #16
  • Jun 23, 2020 9:22am Jun 23, 2020 9:22am
Quoting AlastorFate
With the following assumptions in place... My position size is reasonable. High performance is not important (No need to make many pips) I do not need to force myself to place trades frequently. ..... Sample account Scenario: Trading part time as passive income. Account size: 10K Risk per set of trades: 1% to 2% Max drawdown tolerance per month: 6% Profit target per month: Not that important. Looking for small profit. Ideally, no loss if possible. ..... I am looking for practical ideas to trade the market, with minimal risk exposure. Pertaining...
Find an edge first before talking about risk management. Learn approaches that work, there are a number of literature on the subject. Still gonna take you some time using the approach before you get enough discipline to follow it. Until then, risk management will not make you a winner.
When you see it, BET big.
  • #17
  • Jun 23, 2020 9:30am Jun 23, 2020 9:30am
All you guys and these weird forums

If you take out risk you take out the cash
  • #18
  • Jun 23, 2020 10:28am Jun 23, 2020 10:28am
Quoting Rennaissance
{quote} Find an edge first before talking about risk management. Learn approaches that work, there are a number of literature on the subject. Still gonna take you some time using the approach before you get enough discipline to follow it. Until then, risk management will not make you a winner.
on the retail world,
on the contrary, risk and money management are very important part if not the principal part
why do you think most traders lose?
is it because they don't have an edge ? a simple breakout is enough to make a career

... it’s because people don’t treat it like a business, they dont have that mindset, little or non knowledge of risk and money management

i´m still fighting all days to change my mindset, imagine the discipline needed to lose for example 5 trades in a row and still have the courage (and money in the account) to place the 6 trade and with that you will make money, if you dont have a good risk and money management it´s not your edge that will save you

the edge comes in second plan

cheers
Uncertainty of the market must be embraced and accepted.
  • #19
  • Jun 23, 2020 8:06pm Jun 23, 2020 8:06pm
Quoting RickM
{quote} It works but it can't be taught. You need to recognise how price consumes liquidity and then be able to define the different shapes of this consumption. Hey, are you still stuck overseas. Rick
yes rick,im still stuck,next month i will try n go back home,thanks.
  • #20
  • Last Post: Jun 27, 2020 7:39am Jun 27, 2020 7:39am
according to me, The safest way of trading is to use stop loss and invest less money and earn less money. This is the secret of success in this risky market
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