Trading 104-401 - The Journey

May ask a mod to move this somewhere else - didn't realize that the section it's in is not public. Sorry - it's been a while.

SUMMARY
There is no "holy grail". Finding what works for you - what resonates with you - will take time and patience. The easy way out is to copy a successful trader - but there are caveats to that. For the full details - continue reading on.

START
Good morning FF fam. It's been....a while. I've not even lurked the forums. I've had members contact me and I didn't even realize - it's been like that for some time.

At the end of this - I'll come back periodically and check in. If we end up discussing then I'll outline more stuff.

I'd like to share some stuff which I hope will advise and assist the newer traders in here. Maybe help to bolster things on the seasoned traders as well. Let's start with this - or the same info that's above at the top of the thread.

https://forexfactory.com/khat17/#15

That's my latest TE (Trade Explorer). I've started up back trading. I took a LOOOONG break. And there's reasons and history. This won't be a short post - I think - but I'll still try and condense the information as much as I can. I'll also come back to that very small $50 account information shortly. Ish. You'll see it when you get to it. It's the second to last heading in this post - all the way at the bottom.

HOW TO TRADE
Everyone probably gets lured into trading thinking it's a fast way to make money. It is and it isn't. It takes time to learn - either how to trade or to learn a system. It takes even longer if you have to make your own system.

MY JOURNEY
So let's try and make a summary.

1. 2017 - Just heard about trading - tried services and tested brokers.
2. 2018 - Learning how to trade. Having some success.
3. 2019 - Best trades. Great success. Father passed away.
4. 2020 - No trading due to mentality. COVID.
5. 2021 - No trading. Started dabbling and re-learning.
6. 2022 - Working out the kinks, but actually started back.

I did a few things during the learning phase. I lost a lot. I felt invincible at points. Let's see...I lost most of an account right down to $14. Took that back to $80+ and then lost it. I work in a specialized IT industry - office sent me on training so I had no work to do. During that training period I took a $100 account to $1,100+ and then lost it all. That one I can explain. But there's a pattern here. I always make great gains then lose. And I identified two reasons.

1. Over-leveraging.
2. Emotions.

Every time that I make good gains - I deviate from the original plan and then lose. Do I lose because my analysis is wrong? No. Price almost always goes where I expected when I check back. I say almost always because I'm not perfect. That covers the over-leveraging.

Emotions lead to over-leveraging as well. My father got sick and passed away. During that time I had pushed my account up to from $100 to $1,100+ and was doing mostly fine - but as he deteriorated I got desperate. I heavily over-leveraged because I wanted that fast money to get things done. It didn't work out.

In the end - can you over-leverage and make it? Yes. But your account will not be able to withstand any large drawdown if you do. So I don't recommend it.

MENTORS & COMMUNITY
This was a major block for me. I've always been looking for some successful trader to teach me their way. I joined here and other communities looking for the "holy grail" - some sort of strategy that just works and gives me little to do other than follow some rules or something. Then I started looking into EAs. Nothing worked. Everyone has an opinion. Everyone knows best looking on from the outside. There's so much going on.

A SOLUTION?
So with everything going on - how do you find a solution? How do you enter this "forex thing" and actually succeed? Well. The answers will be hard - but let's try and be honest about it. From here - will just be things I've found and wish I had a mentor for. Hopefully those who come across this - or persons I forward it to - will get something out of it.

MAKE A PLAN
Now this doesn't mean you've got to make your own system. This means set out a plan. What do you get asked in interviews from time to time? "Where do you see yourself in 3-5 years?" You should ask yourself a similar thing for trading. Forex, stocks or crypto - any kind of trading - it doesn't matter. Set a goal of a certain number of years. After that timeframe is passed - if you do not see progress or are not profitable - get out. Trading can be addictive - even with losses. GET. OUT. Let me give a basic plan.

1. 3-6 months to learn.
2. 3-6 months testing - demo or small live account.
3. Within the above time you perfect your strategy.
4. 2-3 years trading on live.

If after the planned period you have no good results - or you're not seeing a way out - GET. OUT. STOP.

It's unfortunate, but not everyone is cut out for trading. Whatever your reason - your day job or psychology for example - something may be preventing you from gaining pips in the market. If you find that it's not for you - get out. Don't stay and waste money over months/years. Give it a good go and if you fail - at least you tried.

TRADING SYSTEMS
Now to be honest - I don't want to bash any specific system. But the easiest one for me to find that I disagree with is the lunar cycle trading. I mean - it does work for those who use it - but I don't see exactly how...

I've never tried that system - and there are LOTS that I haven't tried. There may be hundreds if not thousands of systems out there, and with so many to choose from there are pros and cons. The pros would include having options. With the wide array there should be at least one that resonates with your character, preference and trading style.

The cons would include being unable to find one. Even with reviews done her and on FXPA - the statement "results not typical" applies. Whether it's account size or settings - you may not get the same results.

There's also the fact that a system may not suit your style. Let me give two examples.

If you're a long term trader and you buy or find a system that's short term - it may annoy you with all of the getting in and out of trades daily/weekly. The constant stream of wins/losses may get to you. If you're a short term trader then watching a position go in drawdown for days or weeks may weigh on you and you close out in loss while others end up closing in profit.

You need to find what works for you.

BOOKS & SUCH
Now I've purchased a lot of stuff during my own journey. Some of the books are really good. "Trading In The Zone" is a great book for getting your psychology sorted. "Naked Forex" is another great book that helps you learn price action. And for short books that are a few by "Laurentiu Damir" that I find to be good.

MY PERSONAL APPROACH
Unfortunately, due to my nature of taking things apart - I need to understand what the thing is and how it works. As a result, my approach to trading has been trying to at least grab a basic understanding of the indicators and how things work before I use them. It's been said over and over that price action is the greatest tool, coupled with "the trend is your friend". If you find that a fully indicator based trading style is more your thing - then ensure you test it before you get into it.

COPY TRADES, EAs & AUTOMATED TRADING
Now for some things that may have mixed results. If you don't have the time to trade, you can always get a copier service or some automated trading service - EA or otherwise.

For copier services, there is no way to know that what you're being sold is fully true. If you want to copy someone or something that's successful, use the services available on MQL or FXBook. I don't know of FF having a copy service available or else I'd recommend that. Find a trader that has good stats that you're comfortable with - pay the commission and leave it alone.

For copier services that are advertised otherwise - they may be running from certain regulations or fees from using other platforms. If you have a good set of stats from them that are verified on a platform such as here or FXBook - use at your own risk. I mean - if it's verified information then it should be less risk, but everyone has different results.

For automated trading and EAs now...that's a tricky one. I've often thought that I'd love an EA based on my strategy and style, but I don't have the skills to code that. I also don't want to have someone make it and potentially steal my idea and sell it. There are some automated services like those from "Dennis Buchholz" that are updated frequently - those I trust a bit more, but still will have mixed results based on settings and account size. Dennis updates his EAs frequently enough to match the changing market conditions - and to update the overall coding.

Oh - the mention of names, books and such aren't an endorsement or recommendation - I'm just giving examples of things I've used or seen.

I don't trust back testing either. Most professionally coded EAs are actually designed to run great during back-tests because the past data is already known. That's why you'll have great back-test results and poor live results. Some EAs also do great under certain market conditions and crash in others. So there are no EAs that I've seen personally that are "set and forget". You have to periodically check on it and see what's happening. It somewhat defeats the purpose of passive earning when you have to be checking on the EA.

If you find one that works for you - stick with it. For things you're using like an EA - use the recommended settings. For copy services where you have any control over lot sizing - stay within your means.

MENTORING MENTION (AGAIN)
I'm coming back to this to mention someone. Mr. Lee Starks aka "Uncle Lee". He's been written off by a number of people and I don't actually understand why. Prior to having a few paid services - like 4 or 5 things including one copy service - he has been on Telegram in numerous groups helping persons streamline their trading. Even during his paid services and even now, he's been trying to help persons on his own time and at zero cost. He's tested and paid for a number of different things and has given away information freely. But people have had mixed results and as such, he's been written off by a lot of persons. What this says is, you can find persons that have the best intentions that are still spoken poorly of. It also comes back to the trading styles and systems. From the screenshots and stats that he's shared, he's doing fine. Do all of his followers have great result? Nope. Does that mean his system doesn't work? It may not work for YOU specifically, but it may work for someone else.

A BASIC SYSTEM
Here's one of the most basic systems I can think of. And is the basis of what I do. Use a couple MAs and RSI. If you want to find and purchase TDI you can do so - there are also free TDI versions available online.

Disclaimer that this is basically a strategy used for scalping. The principle can be applied to longer term trades though.

Open a chart with a 50 EMA and 200 EMA. Switch between the 15 minute, 1 hour and 4 hour chart. Note that the lower MA is basically equal to the higher MA on smaller timeframes. That's to say - the 200 EMA on the H1 is the same as the 50 EMA on the H4. With a certain cluster of MAs you can tell where price is on a higher timeframe without switching to it.

Look for price action, candle formations, patterns or support/resistance levels. Let's say you have an engulfing candle on the low or a double bottom formation. You get that on the H4, D1, W1 or MN timeframe. You drill down to the lower timeframe and trade long (buys) until price has reached another level or MA before you get out. Do your confirmation of a break/trend/move on the higher timeframe - enter on the smaller timeframe.

Something else would simply be...identify the trend. Is price going up or down? OK. Did it bounce off an MA or a level? Enter on the next bounce.

I mean - you could complicate it more by using fibs and QT and such - but that's just to keep it simple. And you can actually win with something like that. There was another very simple strategy which I saw....

Use Heikin Ashi candles on the D1 with a 20 SMA. If price is below the SMA - prepare to sell. If it's above the SMA - prepare to buy. You'll confirm your buy/sell entry if the Heikin Ashi candle is red or green. Red and below the SMA is a sell. Green and above the SMA is a buy. Then you'll switch to another type of chart and use other confluences for your entry. You can't get much more simple than that. Unless you're going to do a simple MA cross.

STATISTICS
Another thing I was obsessed over in the past was stats. I actually had an account where I had zero losses for 3 weeks straight. Decided to stick it out and do that - but it takes a toll when you have a job other than trading.

Stats are nice to look at - but in the end you really want to look at 2 or 3 things.

1. Pips.
2. Percentage.
3. Balance.

Where pips are concerned, it actually is possible to have a negative amount of pips and a positive percentage or balance. Imagine having a 30 pip (300 tick) win with a 0.30 lot size - about $300 win - and then have a 1,000 pip loss (10,000 ticks) with 0.01 - that's about $100. You're ahead with percentage and have increased your balance - but your pips are in negative by -700.

At the end of the day - ensure you're ahead. Do what is needed for you to push forward.

MENTALITY
Yes - you can make 100% or even 1,000% profit in trading after 1 week or 1 month. But that's very high risk unless you have a large enough account.

1% of $50 is $0.50.
1% of $500 is $5.
1% of $10,000 is $100.

If you can grow your account CONSISTENTLY by a small percentage each month for 3-6 months - you're well on your way to making money in trading.

Get in with a demo account to LEARN about the market - develop a strategy or adopt one - use this strategy for a minimum of 3-6 months to see how it works for you. Once you're comfortable with the strategy - move to a live account. Some brokers offer "cent accounts" where you earn very little, but it's actual market conditions. Some demo accounts are not subject to gaps, spikes and other movements in actual market conditions. A real account as well - regardless of how small - affects your psychology differently. Trade that small account for another 3-6 months and grow it consistently successfully. I've attached an Excel file where you start with $50. At the end of one year you should have over $600 - and that's at 1% per day.

If you don't make your 1% per day - it's fine. If you make more - you're ahead and can take it easier. Do what you're doing consistently for 3-6 months to solidify the method you're using. Once you've done so, you can add more to your account and keep with the strategy.

Note that with a small account you can't open anything smaller than 0.01. The risk is higher with a small account. Your calculation of the lots to open - based on your strategy - should be around 0.01 for every $100 you have. You can scale upward from there.

If you want to take risks with certain types of over-leveraging on a small account, you're free to do so. Just bear in mind the risks. It's better to have consistent performance than to take large risks and lose.

For the persons that have looked at the account - yes I did heavily over-leverage at certain points based on the account size. I wouldn't have grown it so quickly otherwise. As the account grows however, the risks should go down. One of the things I've done - and I do not recommend this or put it here as advice - is to take a larger size position - like 0.10 for example - and then close it after it goes in profit by say....+$5 or $10. I do a partial close at this point of 0.08 or 0.09 and leave the remaining position of 0.01 or 0.02 to keep running. This is only done on entries that I can either sit and watch or those that match my entry rules by 85% or higher. This reduces the overall risk and gives me a boost to the profits and percentage. It increases my drawdown however, but that's inevitable with a small account.

Once you get your account larger - stick to the rules you have and the estimate of 0.01 lot to every $100 in your account. Meaning you can take a maximum of 0.10 for a $1,000 account and 1.00 for a $10,000 account.

BROKERS
There's a LOT of brokers out there. I won't bash any specific ones, but I'll say this - there are some that I'd avoid and never do business with again. I will only make mention of one particular broker - TradersWay. My personal experience with them was very poor. VERY. I'll post a chart. You can check back with your own broker and see.


That was during my initial entry to trading. I had accounts at 4 different brokers and TW was the only one that had this kind of movement. Many people - and I mean MANY - have told me nothing but good things about TW, but this experience with them has made me leave and never look back.

Find a broker that works for you. I would personally only recommend two. If admins/rules will allow me to post my referral links to those two I will - but you can look them up yourself either way. HotForex and IC Markets. Great experience with them.

For challenges and to make some money with your skills - if you have limited resources - you can try the FTMO challenges or any other broker challenge that's available.

THE $50 ACCOUNT
I live in Jamaica - a little third world country in the Caribbean. People know the country for reggae, weed and Usain Bolt. I think that about sums it up. We also have some of the best coffee in the world - arguably. But being a third world country means not everyone has easy access to funds. My job allows me to open a $500 or higher account with relative ease - even if some sacrificing is needed to do so - but the average person cannot find $100 to open an account without taking a loan. After 2-3 months they can possibly save enough spare cash to do $50, but it's a major gamble for residents to find foreign currency.

The current rate for USD$1 is about JMD$157 - that means USD$50 is about JMD$7,850. Then there's getting it to the bank to do the broker deposit. Then there's the fees. Then there's the fact that many Jamaican banks have blocked transactions with brokers - so you can use wire transfers but that's an additional cost.

I'm doing this account to show that it is possible to start small and build up. Your account balance doesn't really matter. Sticking to your rules makes the difference. Managing your risk.

IN CLOSING
Find or develop what works for you. Go at a pace you're comfortable with. Exercise patience - that's one of the HARDEST things. Waiting on your ideal setups can be a pain, but once you find them - awesome. Keep practicing if you're sticking it out. Get out if you've been at it too long and aren't getting anywhere.

Don't mind your account size. Let people laugh at you. Ask them how many pips they made - or what percentage. That's what matters. I could never attempt to compare my $50 account with someone that has a $100,000 account. Not just because of the percentage difference due to the sizes - but the psychology of trading the larger account will be much different. The person with the larger account may reach their target balance before me - hence they do the other hard thing to do in trading - stop. They get to their target and then stop for the day/week. So they could have gotten more pips - but they're not taking any unnecessary risks.

Find your rhythm. Find your path. Make the decision to stay or leave. If you decide to stay - I wish you well.

"May the pips be with you".

Many thanks to the mod that moved this for me.

So then. The major information is out of the way - but let's continue with little bits.

Trading is a journey. It's not a sprint - it's a marathon. Trading is much like life in the way things turn out. You gain experiences and you progress. Or not. I'd like to share some info that I had gotten from a friend some time ago.



Realize the quote was cut - so here's the text file.

Again - let me say a few things that have been said.

Pace yourself. You'll hear that in the IML videos if you've joined that.

Find your rhythm and what resonates with you. You pick one of a couple options.

1. Find a trading system that you think works. Stick with it. Stick to the rules.
   1. Once you figure things out a bit - tweak the system to your liking.
   2. If you rather be a "sheep" then just stick to the system - it should work.
   3. If you can TRULY say you stuck to it and it doesn't work after 3+ months - find something else.

   
   

2. Try for yourself for a bit. Find what you like. Find a system that resonates with your style.
   1. Same as above - stick to the system then tweak as you get accustomed.
   2. If the system isn't working - and you did stick to it before tweaking - find something else.

   
   

3. Test things out and develop your own trading style.

In any of the cases above, you need to find what works for you. Are you working full time? Do you work part time? Is trading your full-time job? Depending on your situations, what you do or should do may be different.

The hard part is that trading isn't for everyone. If you've set your timeframe and are not profitable within that - get out. Don't stick around and keep losing money. If you still want to be involved - trade a small account to feed the addiction. Copy the trades of a successful trader/group if they offer a service on FXBook or MQL.

I've read so many different things - bought so many books - watched so many videos. I'm only studying more of anything because I like to learn the inner workings. MA cross. S/R. Ichimoku. Momentum. Fluidity. BTMM. Smart Money. Lunar phases. Quarter's Theory. I really don't care what you find that works for you - if it works FOR YOU, then that's all that matters.

Long term isn't for everyone. Short term isn't for everyone. Just because on the long term price is going up - doesn't mean that a scalper can't make money trading short (sells). If it works for them - it works for them. There is no right or wrong way to do this - what matters is the consistency and if it works for the individual.

I can't tell you to not be straight, gay, bi, trans, communist, democrat, republican, loud, quiet, kinder, meaner, how to do your job, etc.....

What you are - what you do - how things work for you - that's all you.

Forex is one of those things where individuals actually have to take full responsibility for what happens to their account. I can't copy your trades and then when I lose I blame you. It's my fault for copying you and not doing it myself. I can't blame you for telling me to short EURUSD when it rose 50 pips due to news and wiped out my account. It's my fault for over-leveraging my account to think I can gain millions in a day/week/month - then losing it all.

Humans won't always or easily take responsibility for their actions. As an individual, it's in your best interest to learn the business. It's not like taking your car to a mechanic and you have zero idea of how the car works. You press the gas/brake and that's it. Or you use the clutch to shift gears. Why do you need to know the internal workings of the combustion chamber? Or how the hybrid charges itself? Funny thing though. Driving. What's the point of it?

Driving gets you from A to B. The racecar driver, the mechanic, the soccer mom and the businessman all get to their destination - but each one has a different working knowledge of the car.

You CAN trade successfully without an in-depth knowledge of everything. The problem is - those without even a basic knowledge won't be able to recognize when something is wrong. The racer and mechanic may "feel" something or "hear" something on the vehicle and get it checked earlier. The soccer mom and businessman may not realize something is wrong until a light comes on or the vehicle stops.

Knowing more about what you're getting into helps. Experience in the field helps. It's in your best interest to learn what you can - and what you need - to make better decisions and progress.

Kudos and thanks to FF and other communities out there for tolerating persons like myself and others. For providing a platform to vent and seek company. There's a saying that "misery loves company" - lol. Those of us who are miserable due to failure, success or being in the middle on the journey. And yes - you can be miserable and successful. Trying to enlighten and uplift others can be tiresome - especially when others just want to stay where they are.

On that note - let me share this. My methods may not work for you - but they work for me. As I said - the small accounts were there for testing, learning and sharing with others in countries where they can only start with a small amount. Account is up 4% today - the target is 1% daily or 5% for the week.

The methods used are a bastardized mix of BTMM and Quarter's Theory. I'm a scalper at heart, but work has pushed me into keeping trades beyond a few seconds/minutes/hours.

What I do may not work for you - but I'm willing to share. The hardest part? Patience. Waiting on the right setup. There are tools available - free and paid - that can help with your entries. There are scanners/indicators for high/low, support/resistance, ADR, harmonics, etc. Leave it on your PC/laptop/VPS and get the signals when you can.

Find what works for you. Find your rhythm.

May the pips be with you.

Alright. I'll post my affiliate links now - didn't hear from the mods that I can't or shouldn't.

I do need to work on summarizing my stuff though...never been good at that unless it's absolutely necessary. So sorry again for the longer than necessary post.

HotForex - https://www.hotforex.com
IC Markets - http://icmarkets.com

The links above are direct links to the brokers. The links below are my referral links.

{ information deleted by staff, per membership policy }

{ information deleted by staff, per membership policy }

HF has some of the best features with loads of tools. They have periodic challenges and various account types to choose from. Overall they're not bad - but I have mostly moved over to ICM due to spreads.

ICM has very few fandangles. It's basically just a broker with low spreads and commissions. They do have a web platform for trading, but features are very limited in comparison to others. If you're there to scalp - ICM is your place to be. I've heard about other brokers like Pepperstone and such - but having used ICM - I don't think I'm going anywhere else.

On that note as well - this is something I'm going to bring up that I don't get. Many persons sign up with brokers and other things to get as much additional cash as they can. If you're successful as a trader though - why bother? I'm not making millions out of forex (yet) - but I won't be out there begging for referrals. If you're kind enough to use my links then fine - but you should always have the option to go ahead and check them out yourself. That aside - gaining from your additional trades is fine and all - benefits from the referrals are nice - but it shouldn't be the primary thing.

Forex overall is a means of earning money by using the knowledge you've acquired. Further down the road - someone comes to me to learn I'll spot them the $50-$100 to start them off. But that's it. The onus is on you as an individual to learn and find your path. You want to copy me or someone else? Sure. I don't care if you want to be lazy about it - the journey is yours to take. How you go about it is your business - but my business isn't to get get "likes" - "subscribers" - "referrals". I'm here to teach what I've learned and learn more as we progress.

As a person - regardless of the field - you should never stop learning. If there's some cap on the topic - test the boundaries. Push the limits. See how you can do more. If it's a system that's working for you then there's no need to deviate - don't fix it if it's not broken right? But the sales pitches and knocking on doors - physically and virtually - it's not an appealing thing to me.

So that's it - there are my links. If you use them or not it's fine either way. My purpose is to make the pips my way. My gains should not hinge on yours.

As I see it - there are various brokers. Some have good experiences with one and bad with another. I wouldn't use TradersWay ever again - but that's just me. Other people may swear by them. I'll use a tech analogy. If I decide on SEAGATE as a hard drive I like due to horrible experiences with WESTERN DIGITAL - it doesn't mean that I should discourage YOU from buying WD. You may have a different experience. In terms of the brokers - I think I've said it. I won't use TW - I don't encourage others to - but if for some reason you want to - go ahead. I'm not going to say they're the absolute worst - but MY EXPERIENCE was not good.

Another example. I know someone personally with a legal case against BK because they found a frog in their salad. Does this mean I won't ever go back? That was not my experience. I've heard from them and it will make me more aware when ordering a salad.

I hope the information given gives some insight. And we're moving into the new week for more opportunities. Made 10% on the small account this past week - let's see if we can keep at it going forward.

I'm also going to throw this in. Be careful of sites that show high turnovers. I've been contacted on Telegram recently regarding sites that give you 30% in an hour on BTC and other such stuff. Just checking the domain registration date versus their advertised operation dates on the site is suspect. Can you make 30% or more in a day? Yes. Been there - done that. Can you double or triple your account in a month or less? I've doubled my account in a week. I'm not going to believe something that goes much faster than I've personally done. Can it be done? Probably - but high returns are very high risk. Stick to your methods and grow your account slowly.

There's a thread about 1%-3% daily. That's the place to be. My advice is to stick to that amount. If you happen to get a lovely windfall and grab a lot of pips - great! You're ahead! You can then go slower the rest of the week. I don't know about anyone else - but I don't trade setups that 100% match my rules. Why? Because those are VERY rare. I'll take trades that match anywhere from 70% and up. I'll increase my lot size based on the setup and how many of my boxes are ticked. I'd trade a lot less but I'd have better quality trades. FOMO. Anyways....This is long enough now.

As always - "may the pips be with you".

Good job keeping the flow going khat17; however, just a friendly reminder these affiliate links would get you banned from the forums. if no one had told you, I tell you now. Last time I check FF forum is still an absolutely commercial-free space.

Thanks for that. Asking a mod to remove the links please. Can't edit the post again.

@FXSayWhat - I'm just trying to put info there and hopefully help others on their journey. But I still believe a cap should be put on it. Unless you have some plan in mind, it makes no sense to keep losing and feeding the market with nothing gained. Knowledge or pips.