I often read the trading system section to see with what weird and wonderful "trading systems" people have come up with. Most of the time it is pure entertainment for me. Especially if I see these cluttered screens and indicators from god knows where and that only god himself can understand. I have found the following trend occuring in almost all of the trading systems posted on this forum.
John Doe starts off by saying that he has developed a profitable trading system based on XYZ doing ABC.
After about 2-3 months and a lot of questions from a few disciples that decided to follow John Doe's trading system he then modifies his trading system or as he puts it "improve it for better entry positions and/or more pips". So you begin to get a John Doe version 1......and later a version 2...and later a version 3.....and later on everyone is confused.... including John Doe himself.
After about 3-6 months you will find John Doe roaming the pages of Pete's new trading system. And after a while Pete's new system goes thru the exact same stages as John Doe's system. And after 3-6 months you will find Pete roaming the pages of Jimmy's new trading system. And so the story continues......
So what is the lesson to be learned here? A trading system is a trading system. They are all the same. The problem is not the trading system. The problem is the size of your forex account. It's the size of your forex account that is the BIGGEST OBSTACLE in you way
if you have a $1 - $10 000 forex trading account you ONLY do forex for the fun of it and as a hobby. But you will NEVER make a living out of forex. Cause if you trade standard lots ($10 per pip) then you have only 1000 pips to manouvre with. And believe you me the JPY will take you out within a few days time. If you trade mini lots ($1 per pip or smaller) then it will take you ages to make enough money to live off
Only if you have a $30 000 - $50 000 plus forex account will you stand a chance of making a living out of forex. But you will have to choose your trades very carefully.
Only if you have a $100 000 - $1 000 000 forex account will you be one of the 5% that makes a living trading forex IF you only trade standard lot ($10 per pip). Cause then ONLY can you weather the storm of the market turning against you while still having enough capital to continue trading.
Remember....there is a reason why forex brokers offer you the oppertunity to open a mini account of $250 -$10 000 to trade an unpredictable market. Cause they know the odds are heavily against you. Nowhere else will you find a way of turning $250 into millions. Forex is no exception. There are no short cuts in life. It's like taking on the mighty Indian Ocean in only a small row boat. You stand no chance. If you wanna venture out to sea first find yourself a big enough ship that can weather the storms of the ocean.
John Doe starts off by saying that he has developed a profitable trading system based on XYZ doing ABC.
After about 2-3 months and a lot of questions from a few disciples that decided to follow John Doe's trading system he then modifies his trading system or as he puts it "improve it for better entry positions and/or more pips". So you begin to get a John Doe version 1......and later a version 2...and later a version 3.....and later on everyone is confused.... including John Doe himself.
After about 3-6 months you will find John Doe roaming the pages of Pete's new trading system. And after a while Pete's new system goes thru the exact same stages as John Doe's system. And after 3-6 months you will find Pete roaming the pages of Jimmy's new trading system. And so the story continues......
So what is the lesson to be learned here? A trading system is a trading system. They are all the same. The problem is not the trading system. The problem is the size of your forex account. It's the size of your forex account that is the BIGGEST OBSTACLE in you way
if you have a $1 - $10 000 forex trading account you ONLY do forex for the fun of it and as a hobby. But you will NEVER make a living out of forex. Cause if you trade standard lots ($10 per pip) then you have only 1000 pips to manouvre with. And believe you me the JPY will take you out within a few days time. If you trade mini lots ($1 per pip or smaller) then it will take you ages to make enough money to live off
Only if you have a $30 000 - $50 000 plus forex account will you stand a chance of making a living out of forex. But you will have to choose your trades very carefully.
Only if you have a $100 000 - $1 000 000 forex account will you be one of the 5% that makes a living trading forex IF you only trade standard lot ($10 per pip). Cause then ONLY can you weather the storm of the market turning against you while still having enough capital to continue trading.
Remember....there is a reason why forex brokers offer you the oppertunity to open a mini account of $250 -$10 000 to trade an unpredictable market. Cause they know the odds are heavily against you. Nowhere else will you find a way of turning $250 into millions. Forex is no exception. There are no short cuts in life. It's like taking on the mighty Indian Ocean in only a small row boat. You stand no chance. If you wanna venture out to sea first find yourself a big enough ship that can weather the storms of the ocean.