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Is there really a strategy to profit constantly?

  • #1
  • First Post: Jul 4, 2008 7:34am Jul 4, 2008 7:34am
Hello, have read a lot of threats on different forums and have tried several kind of "strategies" on demo accounts of ECN Brokers (even actbroker.com = ECN with Metatrader) but it seems to me, that Forex is more like playing roulette instead of making money constantly.

You may proof me wrong, of course ;-)
  • #2
  • Jul 4, 2008 7:39am Jul 4, 2008 7:39am
Mechanical strategies can profit constantly, but keep in mind that there is no 100% win rate strategy. You will lose time and again. The key to being successful here in forex is to win more than you lose G=
  • #3
  • Jul 4, 2008 8:02am Jul 4, 2008 8:02am
Quoting Ronald Raygun
Mechanical strategies can profit constantly, but keep in mind that there is no 100% win rate strategy. You will lose time and again. The key to being successful here in forex is to win more than you lose G=
Yes, but how has Forex to be traded, to win more than you lose?
  • #4
  • Jul 4, 2008 8:21am Jul 4, 2008 8:21am
Quoting cash4u2
Yes, but how has Forex to be traded, to win more than you lose?
With discipline and money management.
Cut your losses and let your win ride, not easy as saying it but it's the way.
As there is not 100% hit rate in the market, you have to analyze your personality and decide a strategy that fits you.
Mechanical, trend trading, fundamentals, price action, astrology....
Personally I prefere trading price action. As this kind of trading is discretionary, it is up to trader do decide when, how and how much, so it all goes back to discipline and money management.
  • #5
  • Jul 4, 2008 8:22am Jul 4, 2008 8:22am
we need a good strategy offcourse but also sufficient capital is my answer i would say open a mini account with a good ecn broker with 2000 dollars and a standard account with 15k dollars or more
  • #6
  • Jul 4, 2008 8:23am Jul 4, 2008 8:23am
and also good money management and we gotta follow it
  • #7
  • Jul 4, 2008 8:48am Jul 4, 2008 8:48am
Quoting cash4u2
Hello, have read a lot of threats on different forums and have tried several kind of "strategies" on demo accounts of ECN Brokers (even actbroker.com = ECN with Metatrader) but it seems to me, that Forex is more like playing roulette instead of making money constantly.

You may proof me wrong, of course ;-)

I'm following AshFX in the trading systems sections. It's going well and the author claims several hundred pips profit per month. It only takes about 15 minutes per day to check for set ups on 20 currency pairs on the daily time frame. This may be what you're looking for. Paris
  • #8
  • Jul 4, 2008 8:56am Jul 4, 2008 8:56am
Interesting conclusion you draw. Why do you think it is the strategy that failed you and not you that failed the strategy?
Just because a system may be simple, does not mean that a noobie can trade it. It's the rare noob that will look into a mirror and ask if it is themselves that may be the broken piece of the system.


Quoting cash4u2
Hello, have read a lot of threats on different forums and have tried several kind of "strategies" on demo accounts of ECN Brokers (even actbroker.com = ECN with Metatrader) but it seems to me, that Forex is more like playing roulette instead of making money constantly.

You may proof me wrong, of course ;-)
In trading, there is no bullshit. You either make money or you don't.
  • #9
  • Jul 4, 2008 9:30am Jul 4, 2008 9:30am
Quoting mrgreen
Interesting conclusion you draw. Why do you think it is the strategy that failed you and not you that failed the strategy?
Just because a system may be simple, does not mean that a noobie can trade it. It's the rare noob that will look into a mirror and ask if it is themselves that may be the broken piece of the system.
Maybe you are right, but the most strategies I tried where easy to follow but there are also some, that are so complicated that I think, neither Forex nor other markets have to be handled that complicated. And then I think the complicity is produced to claim, well the system works, but you are not able to use it! And those who claim that, are not even able to show proof on real accounts!
  • #10
  • Jul 4, 2008 9:48am Jul 4, 2008 9:48am
I knew you would eventually get to a point where you would ask for successful traders to prove themselves by posting their statements.

You avoid the question - Why do you feel it is the strategy - and not you - that is the weakest link in the process? No one is going to give you anything. This is a lot of hard work, not some sort of government giveaway.
Once you realize that the only break you get is when the Doctor slaps you in the ass you'll be on your way to the small percent that are successful at this business.


Quoting cash4u2
Maybe you are right, but the most strategies I tried where easy to follow but there are also some, that are so complicated that I think, neither Forex nor other markets have to be handled that complicated. And then I think the complicity is produced to claim, well the system works, but you are not able to use it! And those who claim that, are not even able to show proof on real accounts!
In trading, there is no bullshit. You either make money or you don't.
  • #11
  • Jul 4, 2008 9:51am Jul 4, 2008 9:51am
Quoting mrgreen
I knew you would eventually get to a point where you would ask for successful traders to prove themselves by posting their statements.

You avoid the question - Why do you feel it is the strategy - and not you - that is the weakest link in the process? No one is going to give you anything. This is a lot of hard work, not some sort of government giveaway.
Once you realize that the only break you get is when the Doctor slaps you in the ass you'll be on your way to the small percent that are successful at this business.
  • #12
  • Jul 4, 2008 10:55am Jul 4, 2008 10:55am
Quoting cash4u2
but it seems to me, that Forex is more like playing roulette instead of making money constantly.
This is an interesting analogy, because who is winning in the long run in roulette, the gamblers (as a whole) or the casinos (as a whole)?

Answer: the casinos, of course, otherwise, they wouldn't offer roulette.

But ... the key phrase is "in the long run." For any given spin, a gambler may win at the expense of the casino. But over millions of spins, probability favors the casino, if it has even just a 1% edge over the gambler, which means that out of $100 million gambled, the casino will likely come out $1 million ahead at the end of the year. (I'm not sure what the exact percentage is, but it's only a few percent, at most.)

In the same way, winning traders are not worried about the result of any particular trade, but the result of all their trades "in the long run." Even if their strategy offers only a 1% edge over break-even, they can still be profitable overall, just like the casino. It's all about probabilities & being able to stay in the market and take the next trade.
Dave
  • #13
  • Jul 4, 2008 10:56am Jul 4, 2008 10:56am
Cash4u2

another poor me cry baby thread about i can't make money so trading is one big scam!

like what has been mentioned this anit easy and not every one will get it. You have to ask yourself is it the market that's impossible or my mind set?

cheers
  • #14
  • Jul 4, 2008 12:35pm Jul 4, 2008 12:35pm
Quoting >Apocalypto<
Cash4u2

another poor me cry baby thread about i can't make money so trading is one big scam!

like what has been mentioned this anit easy and not every one will get it. You have to ask yourself is it the market that's impossible or my mind set?

cheers
One who's statement is "A LoSS is a WiN & a WiN is a LoSS" is not a great help here!
  • #15
  • Jul 4, 2008 3:52pm Jul 4, 2008 3:52pm
Quoting cash4u2
You may proof me wrong, of course ;-)
First thing it is prove not proof.

There is an element of risk in everything you do whether it is investing, starting a business or just working for a living. How many people have invested 10-20 years with a particular company only to walk in one day and have someone tell them that their services are no longer required?

So you haven't been able to make money at forex. GREAT!! Maybe forex just isn't for you. Try something else. I went through 11 different businesses and money making ideas before coming to forex. For me, it works great. Technical analysis is something I love to do. I have everything set up so forex only takes me about 10 hours a week at most. I take out enough each month to pay the bills and my account value continues to grow. I put in fewer hours each month trading forex than I did working 1 week at my previous job.

I guess now you are going to ask me to show my live account statement. Well, let me put it this way, my wife doesn't get to see the account statements why the hell would I show it to a stranger on the Internet??

What you need to do is stop trying to use OTHER people's systems and learn how to trade forex well enough to develop your own. Until you have done that to the point of being able to trade without question when your system tells you it is time, you will never succeed at Forex. Without 100% confidence in what you are doing you will always second guess your trades or become impatient and make bad trading decisions because you are scared that you will miss out on a trade.

Does that mean you will be right 100% of the time and make money with every trade? Hell no! I get stopped out or just break even several times a week. So what! I keep statistics on every trade I make. I know exactly where price was, where each of the stochastic values were, where price was in relation to monthly or yearly pivots, what the results were, etc etc. I look for little subtle things that will help to improve my results each week. And over the time I have been trading it has added up to make a significant difference.

The system I trade is my system. I developed it, I have refined it and it is mine and no one elses. For example, my trading criteria is so strict that I only get between 1 and 3 signals a WEEK on the gbpjpy. On the 14 pairs that I monitor, I might get 20 signals a week TOTAL. When I get a text message on my cell phone that it is time to make a trade, the only thing I check when I get to the computer is to verify that the data is correct. In other words, I make sure that metatrader didn't lose any data for an hour or more like it does sometimes. Once that is done, I trade. I don't question it or second guess it EVER.

So if you want to be a trader, first thing you need to do is put down the pacifier and pick up your efforts to learn. Don't come in here telling people how this doesn't work or that doesn't work. OK, it doesn't work for you, make a note of it so you don't waste anymore time with it. Move on.


Sorry for the long rant but I get sick of people coming in here whining about how forex doesn't work when most likely the problem can be found in the mirror.
  • #16
  • Jul 4, 2008 4:55pm Jul 4, 2008 4:55pm
Quoting DaveL
This is an interesting analogy, because who is winning in the long run in roulette, the gamblers (as a whole) or the casinos (as a whole)?

Answer: the casinos, of course, otherwise, they wouldn't offer roulette.

But ... the key phrase is "in the long run." For any given spin, a gambler may win at the expense of the casino. But over millions of spins, probability favors the casino, if it has even just a 1% edge over the gambler, which means that out of $100 million gambled, the casino will likely come out $1 million ahead at the end of the year. (I'm not sure what the exact percentage is, but it's only a few percent, at most.)

In the same way, winning traders are not worried about the result of any particular trade, but the result of all their trades "in the long run." Even if their strategy offers only a 1% edge over break-even, they can still be profitable overall, just like the casino. It's all about probabilities & being able to stay in the market and take the next trade.

The law of large numbers is something that traders live by. Don't ever think that you can effortlessly pull money out of the forex market. It doesn't work like that.
  • #17
  • Jul 4, 2008 5:31pm Jul 4, 2008 5:31pm
Any seen the movie "21", all professional gamblers won't just play any hand.

They will wait for the best moment to enter, and leave when the trend is gone.

Same thing in forex, if you define consistency in a specific period, then, there will be one. But if you refer consistency in the life span of a trader, then, there is nothing like that
If everyone believes it, it will work.
  • #18
  • Jul 4, 2008 9:55pm Jul 4, 2008 9:55pm
Quoting cash4u2
One who's statement is "A LoSS is a WiN & a WiN is a LoSS" is not a great help here!

if u could understand the sig u would see a point i am making about what a traders mind set is!

think about it. I am saying there is no difference between a win and a loss. what does that tell u? emotional harmony no mater happens on my trade it's all the same.

Read trading in the zone by Douglas and u will get it .

As a trader you are never fighting the market that's a battle that can't be won. You are fighting your own mind. control your mind control your trading results. your method IMO is only 40% of it mind set emotions is 60%.

cheers
  • #19
  • Edited 3:28am Jul 5, 2008 2:25am | Edited 3:28am
Quoting cesare76fx
With discipline and money management.
Cut your losses and let your win ride, not easy as saying it but it's the way.
As there is not 100% hit rate in the market, you have to analyze your personality and decide a strategy that fits you.
Mechanical, trend trading, fundamentals, price action, astrology....
Personally I prefere trading price action. As this kind of trading is discretionary, it is up to trader do decide when, how and how much, so it all goes back to discipline and money management.
Every EA (trading robot) trades according to strict money management rules, and with perfect discipline. If profitable trading was as simple as "enter any emerging move, let profits run, cut losses short, risk only 1%-2% of your capital per trade, and apply perfect discipline", then developing a profitable EA would be a cinch, and everybody would use one.

Quoting >Apocalypto<
........As a trader you are never fighting the market that's a battle that can't be won. You are fighting your own mind. control your mind control your trading results. your method IMO is only 40% of it mind set emotions is 60%........
Apocalypto, if you use an EA, method = 100%, psychology = 0%. My point: you can't really put a number on it. It is different for each individual. For me, discipline is easy if I have total confidence in my method, and (MM wise) I know my $$ risk and stay well within my financial comfort zone.

Douglas' book is a great (even if somewhat long drawn out) read, IMHO, but he makes the assumption that the "method" part of the equation is automatic, which isn't necessarily so.

David
  • #20
  • Edited 3:04am Jul 5, 2008 2:29am | Edited 3:04am
Quoting magnumfreak
........
Sorry for the long rant but I get sick of people coming in here whining about how forex doesn't work when most likely the problem can be found in the mirror.
That's not a rant, Magnum, it's a post that makes many excellent points. IMHO.

David
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