Success in FOREX is Mostly about... | Forex Factory

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Success in FOREX is Mostly about...

  • #1
  • First Post: Edited 2:14pm Aug 28, 2023 12:14pm | Edited 2:14pm
I am learning that success in Forex has more to do with good money/trade management than skill in reading charts. Prove me wrong!

Too much time is wasted on trying to find a winning trading strategy. The Forex market is dynamic, and therefore, what works today may not work a year from now. And then you are back to the drawing board, trying to find another winning trading strategy that will eventually fail over time.

I think it is better to just focus on mastering money/trade management, and keep your trading strategy simple. Accept your losses and move on to the next trade. If your money management is good, then you can still end up being ahead at the end of the year with a win rate of 50% or less.

The people making bold claims about having a win rate above 70% are questionable. I think these people are mostly speaking falsehoods.
Learn from your mistakes and march on.
  • #2
  • Aug 28, 2023 1:59pm Aug 28, 2023 1:59pm
I agree, though I am not the poster child for success at trading...
I do think that psychology is an important consideration as well. I have learned the importance of controlling my emotions, which in turn enables proper trade execution, money management, and trade management.
Tall tails tell tales.
  • #3
  • Aug 28, 2023 6:17pm Aug 28, 2023 6:17pm
I agree ! And I think using a portfolio (multiple simple strategies) is the closest thing to a holy grail. Portfolio management and risk management is crucially underrated in this game…
SKQT - Super Kool Quant Trader
Daily Remy All Time Return: 5.6%
  • #4
  • Aug 29, 2023 3:20am Aug 29, 2023 3:20am
Quoting here2there
I am learning that success in Forex has more to do with good money/trade management than skill in reading charts. Prove me wrong! Too much time is wasted on trying to find a winning trading strategy. The Forex market is dynamic, and therefore, what works today may not work a year from now. And then you are back to the drawing board, trying to find another winning trading strategy that will eventually fail over time. I think it is better to just focus on mastering money/trade management, and keep your trading strategy simple. Accept your losses and...
Based on your viewpoint, how can traders still achieve a positive outcome at the end of the year even with a win rate of 50% or less?
  • #5
  • Aug 29, 2023 3:29am Aug 29, 2023 3:29am
Quoting here2there
. The people making bold claims about having a win rate above 70% are questionable. I think these people are mostly speaking falsehoods.
70% win rate is possible. How much you have won is important. If 9 times you are correct and your profit is 10 pips each trade -> 9*100=900 and the other one you loose with 1000$ because you overleveraged the position.

Then 90% of your trades are correct but you are still loosing.
  • #6
  • Aug 29, 2023 6:57am Aug 29, 2023 6:57am
Quoting Mertens
{quote} Based on your viewpoint, how can traders still achieve a positive outcome at the end of the year even with a win rate of 50% or less?
If you have good risk to reward, you can lose more than you win and still end up being ahead at the end of the year. 2x your risk is often seen as a good profit target by many traders. Some will tell you that if 2x is not likely, then they won't even take the trade.
Here is a helpful video:
Inserted Video
Learn from your mistakes and march on.
  • #7
  • Aug 29, 2023 7:31am Aug 29, 2023 7:31am
Quoting Shabs19
{quote} Risk reward is the outcome of the trade, after the event. So this cannot be it. What kills traders in the Long Run, as has been pointed out before, from actual Brokers Data, is that a large percentage of traders are actually producing more winning trades than losing trades, about 60% on average, I think, not sure of the exact figure. The important statistic is how much they win when they are right over how much they lose when they are wrong. Risk of Ruin = Winning percentage x Average wins / Losing percentage x Average Losses over a given...
You obviously responded to me while I was editing my comment. I added more details: https://www.forexfactory.com/thread/...4#post14553914
Learn from your mistakes and march on.
  • #8
  • Aug 29, 2023 8:39am Aug 29, 2023 8:39am
Quoting Shabs19
{quote}You cannot know what your RR is going to be when you take on a trade, all you know for sure is your Risk, if you have a Stoploss in place. Your RR is known to you when you close the trade or get stopped out. RR is used to sell courses , indicators, experts etc. and quite frankly useless info without the average wins & average losses. You could win 90% of your trades and win $10 on average, but your 10% losing trades you lose $100 on average. Or you could win 10% of your trades win $100 on average, and 90% losing trades but lose only $10 on...
I can see you just want to argue. I'm not interested. There is no benefit to me in this. You can disagree with me, and that is fine. But a line has to be drawn. My time is important to me, and I am not going to waste it on fruitless debates.

That being said, you can set a profit target just as easily as you can set a stop loss, and if you have patience and discipline, you will not digress. You will either win or lose. It's that simple. Probability says that if you have greater reward to risk, then you are likely to come out ahead at some point if you stay the course. One doesn't need to do extensive research to grasp this simple concept.

And by the way, I don't trust brokers. They are not in business to make you a winner, but to take your money.
Learn from your mistakes and march on.
  • #9
  • Aug 29, 2023 12:12pm Aug 29, 2023 12:12pm
Quoting turnip15
{quote} Stop loss sets what you are prepared to lose. You cannot know what your profit will be, you can only guess, even a best guess. That's a simple enough concept for you to grasp. ( Unless you have a crystal ball)
You aren't listening. Bye bye.
Learn from your mistakes and march on.
  • #10
  • Last Post: Aug 29, 2023 1:25pm Aug 29, 2023 1:25pm
Quoting Shabs19
Markets do not change over time, only it's faster & cheaper to trade and easy access to Retail traders. You really haven't progressed from your last thread from over 2 years ago, asking almost the same question : https://www.forexfactory.com/thread/...its-unreliable? No disrespect, You need to look at how markets actually work, open your mind to new ideas, maybe something will click for you.
I doubt it’s possible to win trading forex on MT4, too many rip offs from brokers and charges, only way is to use your own money and buy & hold.
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