Frustated in SA

I have been studying forex for over a year. I have a basic knowledge of indicators, discipline and risk management. I have spent countless hours coming up with a strategy only for it to lose in the long run. I have read some great strategies on this forum. As much as I would like to use another persons strategy I also have the need to know whats going on so by developing my own I know why I am placing the trade. I try developing a strategy based on the KISS principle. I think where i am stuck is SL and TP. The feeling I have is like when you are speaking to someone and then you are interrupted or you just blank out and what you want say is right at the tip of your tongue but it just wont come out. From what i read in these forums is that it isnt the entry that is that important as much as the exit. What I have read about Money management but what I have read pertains to how much should I risk per trade 1% or 50%(not). But I am looking for something more about the exit strategy. Is it as simple as having a macd xover and finding the right exit, is it more complicated than a macd xover, am i asking the right or wrong questions ?? I have read books, forums and asked questions. I think my problem is that I am self teaching myself it is more like the blind leading the blind. They say practice makes perfect but what if I am practicing wrong. Anyone know of any mentoring programs within range of a working persons salary or how to find local groups . Good, bad or indifferent any advice is welcome.


thank you in advance.
Noe

Q1.
demo trading
first live money account (5k)
reading forums
reading a few books

Q2.
read a lot of books
start programming with tradestation
develop mechanical trading systems
trade my mechanical systems

Q3.
read a lot of books
real money account
realize i am building systems the wrong way
develop more mechanical trading systems
trade my mechanical systems

Q4.
read a lot of books
begin to look at my trading as a portfolio
begin to focus on money managment and position sizing
realize i am building systems the wrong way
develop more mechanical trading systems
trade my mechanical systems

by the end of this first year i had pretty much figured out the game. although i wasnt successful, i was at the begining of my path to sustainable profits. my trading still consists of three things...

1. reading
2. research
3. trading

38 steps to becoming a trader

They are as follows:

1. We accumulate information - buying books, going to seminars and researching.
2. We begin to trade with our 'new' knowledge.
3. We consistently 'donate' and then realise we may need more knowledge or information.
4. We accumulate more information.
5. We switch the commodities we are currently following.
6. We go back into the market and trade with our 'updated' knowledge.
7. We get 'beat up' again and begin to lose some of our confidence. Fear starts setting in.
8. We start to listen to 'outside news' and to other traders.
9. We go back into the market and continue to 'donate'.
10. We switch commodities again.
11. We search for more information.
12. We go back into the market and start to see a little progress.
13. We get 'over-confident' and the market humbles us.
14. We start to understand that trading successfully is going to take more time and more knowledge than we anticipated.

MOST PEOPLE WILL GIVE UP AT THIS POINT, AS THEY REALISE WORK IS INVOLVED.

15. We get serious and start concentrating on learning a 'real' methodology.
16. We trade our methodology with some success, but realise that something is missing.
17. We begin to understand the need for having rules to apply our methodology.
18. We take a sabbatical from trading to develop and research our trading rules.
19. We start trading again, this time with rules and find some success, but over all we still hesitate when we execute.
20. We add, subtract and modify rules as we see a need to be more proficient with our rules.
21. We feel we are very close to crossing that threshold of successful trading.
22. We start to take responsibility for our trading results as we understand that our success is in us, not the methodology.
23. We continue to trade and become more proficient with our methodology and our rules.
24. As we trade we still have a tendency to violate our rules and our results are still erratic.
25. We know we are close.
26. We go back and research our rules.
27. We build the confidence in our rules and go back into the market and trade.
28. Our trading results are getting better, but we are still hesitating in executing our rules.
29. We now see the importance of following our rules as we see the results of our trades when we don't follow the rules.
30. We begin to see that our lack of success is within us (a lack of discipline in following the rules because of some kind of fear) and we begin to work on knowing ourselves better.
31. We continue to trade and the market teaches us more and more about ourselves.
32. We master our methodology and our trading rules.
33. We begin to consistently make money.
34. We get a little over-confident and the market humbles us.
35. We continue to learn our lessons.
36. We stop thinking and allow our rules to trade for us (trading becomes boring, but successful) and our trading account
continues to grow as we increase our contract size.
37. We are making more money than we ever dreamed possible.
38. We go on with our lives and accomplish many of the goals we had always dreamed of.

Most traders will identify with this list and should be able to place themselves within these steps. Keep in mind that very few people progress through these steps in an orderly fashion. Developing your trading skills is an iterative process. For example, you may reach Step 13., find that although you were making money, your basic premise for trading was flawed (you might have been benefiting from the bull market, rather than your own trading prowess and then have been rudely awakened when the market entered a bear phase) and you may drop back to Step 4. and start 'climbing' the steps again. Having the proper mindset, attitude and psychological makeup becomes increasingly important as you progress through the steps. The focus
of the earlier steps is on external issues, i.e. developing proficiency in the mechanics of trading while the focus of the latter steps (particularly from Step 30, on) is on internal issues, i.e. improving ourselves mentally and psychologically, maturing as
traders.


i get this from this forum too when i get stuck on my first year of trading..luckily i'm still on..yeah it hard..learning forex is hard time but when you in..you can only enjoy the journey like turtle's said.hmm just dont give up yet.hmm good luck then.

Very well said, myself are at the sabbatical point, after I blew my fist life account after 7 months, but because of the “dream” I will continue, tx for pointing out that there are a life cycle to go through before succeeding.

There is a group called the James 16 Private Forum. It has a wealth of info. It runs $130 a month. The price is fair for the amount of quality info that you get. It is not for everyone.............but Damn worth a shot. I think that you would be happy if you checked it out, it covers the points that you were talking about. Gook luck


RSQ

Good stuff. Thanks for sharing them with us.

Do a search for a book called "Trading as a Business" by Charlie Wright. You should be able to find it in PDF. It should spark some ideas and put you back on our path of enlightenment.

Thanx for everyones reply especially parlenk for taking his time to write the 38 steps. Sometimes it lonely and frustrating sitting in front of the computer. It is nice though to have people from all walks of life to share ideas or to receive advice from.
Thanx again

Noe

Oh c'mon.It's nothing.I didnt actually wrote it.I got that document from someone on this forum too (merlin if i'm correct).and as far as I remember,i got that when i'm planning to quit my trading live .it help me a lot back then.so i still carry it till now.hope it will help you too. cheers

parlenk