Look for just two trades per year | Forex Factory

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Look for just two trades per year

  • #1
  • First Post: Aug 10, 2008 11:36am Aug 10, 2008 11:36am
As a 'full time' trader of many years experience I look at the systems and threads within this Forum with great sympathy and understanding. It is clear that there are numerous guys and gals out there who are struggling to make a living from Forex trading with little or limited success. Many, it would appear, jump from thread to thread looking for the holy grail only to be disappointed and disillusioned when they finally take the plunge and start trading there own hard earned cash.
I too struggled for many years until it finally clicked that trading is really very very simple, very easy and very profitable.
I can reveal my 'wonderful system' if this is demanded but there is nothing new or unique about my trading style. Indeed it is clear from the threads that there are traders out there who are far more knowlegeable than I about the fundamental and technical aspects of trading but fail because they cannot see the bigger picture..
Here is the bigger picture
1. DO NOT waste your time piddling around on 5, 10,15,30,60 or even 4H charts. Anything less than 4H charts are for adrenalin junkies who are addicted to trading. I you do make money on these lower time frames 95% of you will give it all back over time. The other 5% must lead shallow lives in front of their screens. Personally I NEVER spend more than half an hour a day looking for trades. The rest of my time I fish, travel, sunbathe and make love.You make more money by trading minimally. Overtrading=loss
2. On daily charts look for curreny pairs that are ranging. DO NOT attempt to trade these pairs but wait for a break out of the range in either direction.
3. Get into the trade.
4. Stay in the trade until the trend turns into a range or reverses,(several weeks or months) Use a trailing stop loss to lock in your profits but the stop loss must be wide enough to keep you in the trade during retracements.
5. If you have just missed a new trend (.eg. current USD strength) wait for the inevitable retrace and then get in in the direction of the trend.
And that's it. If you want to use MACD, stochastics, gymnastics, heimlich maneuvers etc then thats fine but don,t forget the basics
IDENTIFY A TREND/ GETIN/ RIDE THE TREND TO THE END OVER WEEKS/MONTHS YEARS. /MAKE LOTS OF MONEY
Find two good trends a year, thats all you need to do to make real money.
  • #2
  • Aug 10, 2008 1:05pm Aug 10, 2008 1:05pm
If making money is really so easy why are there so many experts out there selling lots of complicated trading tips and ideas.
The answer is- because traders are always looking for that fool-proof system. After a few losing trades they abandon their system and look for another, then another and so on. Consequently a huge industry has grown to supply these hungry seekers with 'the one'
Who makes money trading currencies? Answer- the professional traders.
Do you really think they make their money scalping on a five minute chart?
Get real, do what the pro's do. Don't get sucked into piddling about looking for a few pips here and a few pips there.
Be patient- look for the big moves-then 'fill your boots'
  • #3
  • Aug 10, 2008 1:17pm Aug 10, 2008 1:17pm
I have to agree with you. Very similar to jackos thread.
  • #4
  • Aug 10, 2008 1:55pm Aug 10, 2008 1:55pm
I bet this post gets a lot more views than my previous ones. Why? Becasue of the promise of quick pips- and that is exactly the problem.
You need patience to be really successful in trading. You must be prepared not to trade for long periods waiting for the big one to come along. If you can't do that you will always give your money back to those who do- t0 people like me.
But I don't want YOUR cash. There's plenty out there without taking it off you guys and girls.
  • #5
  • Aug 10, 2008 2:18pm Aug 10, 2008 2:18pm
Hi Daveadamsbds,

Welcome to the forum, and thank you for sharing your thoughts and ideas.

While I do agree with much of what you stated, such as, "You need patience to be really successful in trading," and, "After a few losing trades they abandon their system and look for another," but I do not agree that, "Anything less than 4H charts are for adrenalin junkies."

To think that you can only consistently make money from the 4H chart or greater is, quite frankly, ignorant, and to say that only professional traders (those individuals whose primary income is from trading year after year) use longer time frames exclusively is simply untrue. I personally know scalpers who use the 5 and 1 minute charts (although, they are cognizant of longer timeframes), and they earn a respectable living.

Over the years I have seen many trading fads come and go, and this issue of timeframe seems to repeatedly emerge every so often. When day trading and scalping become popular, traders flock to smaller time compressions, and after many traders try and fail with this method, the tide turns and then everyone is praising the effectiveness of the larger time compressions (usually 4H and greater).

Being a good trader has little to nothing to do with the scale of your chart. It has everything to do with understanding price action, market psychology, and trade management, which includes but is not limited to money, business, and emotional management.

Daveadamsbds, I'm glad you're here to share your experience with those less successful than yourself, but please don't allow your limitations in thinking to hinder those who may not know any better.

Best Wishes,
Art
Visit my journal here.
  • #6
  • Aug 10, 2008 2:22pm Aug 10, 2008 2:22pm
i find what you say very interesting but subjective. that is to say that what you do is the only way to make money and thats how pro's only do it that way is foolish thinking i have been trading for almost 8 years now the last 5 for a living until this year i have been trading off 1 hour charts but this year all the things i learned about price action became true understanding and i strictly trade off 5 minute charts in the direction of the daily trend only. the way to trade in my opinion is not the accumilation of pips but money.what i mean by that is wins and losses. because now with that in place if i find a method that gives me 60%+ wins accompanied by proper money management you can accumilate money. I says these things not subjectively but objectively because i am doing it thats amazing i just posted and the guy before almost said the same thing
  • #7
  • Aug 10, 2008 2:34pm Aug 10, 2008 2:34pm
I wanted to say the same things as Rosscub and harold4x, but you guys beat me to it.
  • #8
  • Aug 10, 2008 2:36pm Aug 10, 2008 2:36pm
Everyone has different opinions, and there have been dozens of threads concerning scalping vs swinging. At the end of the day, what matters is what works for you.

No need to impose any ideologies on others (not saying that anyone is).
  • #9
  • Aug 10, 2008 2:39pm Aug 10, 2008 2:39pm
Sometimes I forget exactly what you bring to the forefront here. I get so tied up in "figuring" where price is going to, I manage to overlook the obvious and just trade what I see happening. Thank you for reminding us to do just that and to realize how simple trading can be. Your insight is very much appreciated.
Thanks again, Tom (Brimm)
  • #10
  • Aug 12, 2008 4:13pm Aug 12, 2008 4:13pm
In my opinion, there are many ways to make money trading the forex or any other market for that matter. However ther is one sure way to lose it all; trading without a protective stop loss. Each trader has different psychology and tolerance. While trading a daily chart may arguably be easier to trade, someone with a need to be always makingtrades will never make money with that technique as his patience or lack of it would get him out quickly. The same applies for the trader who is a long term "investor" type would easily lose money trading a 5 min chart. One size certainly does not fit all.
Just my 2 cents
  • #11
  • Aug 23, 2008 10:40am Aug 23, 2008 10:40am
Hi Daveadamsbds,

I totally agreed with you. Can you share out your system out so that we can learn of what long term trading is?

Quoting daveadamsbds
I bet this post gets a lot more views than my previous ones. Why? Becasue of the promise of quick pips- and that is exactly the problem.
You need patience to be really successful in trading. You must be prepared not to trade for long periods waiting for the big one to come along. If you can't do that you will always give your money back to those who do- t0 people like me.
But I don't want YOUR cash. There's plenty out there without taking it off you guys and girls.
  • #12
  • Aug 23, 2008 10:59am Aug 23, 2008 10:59am
Quoting Rosscub
Hi Daveadamsbds,

Welcome to the forum, and thank you for sharing your thoughts and ideas.

While I do agree with much of what you stated, such as, "You need patience to be really successful in trading," and, "After a few losing trades they abandon their system and look for another," but I do not agree that, "Anything less than 4H charts are for adrenalin junkies."

To think that you can only consistently make money from the 4H chart or greater is, quite frankly, ignorant, and to say that only professional traders (those individuals whose primary income is from trading year after year) use longer time frames exclusively is simply untrue. I personally know scalpers who use the 5 and 1 minute charts (although, they are cognizant of longer timeframes), and they earn a respectable living.

Over the years I have seen many trading fads come and go, and this issue of timeframe seems to repeatedly emerge every so often. When day trading and scalping become popular, traders flock to smaller time compressions, and after many traders try and fail with this method, the tide turns and then everyone is praising the effectiveness of the larger time compressions (usually 4H and greater).

Being a good trader has little to nothing to do with the scale of your chart. It has everything to do with understanding price action, market psychology, and trade management, which includes but is not limited to money, business, and emotional management.

Daveadamsbds, I'm glad you're here to share your experience with those less successful than yourself, but please don't allow your limitations in thinking to hinder those who may not know any better.

Best Wishes,
Art
On the path to Enrichment.
  • #13
  • Edited 1:27pm Aug 23, 2008 11:51am | Edited 1:27pm
But please tell me, to enter the trade - You say - You use the SL wide enough,
what does it exactly mean (please give me an example of the trade)

Secondly tell me how, as the starter and money limited can I manage it in accorance with money management policy - I mean how much money do I need to start playing like this.

The answer will be really appreciated.
Jesus Christ is my only Lord !
  • #14
  • Jan 1, 2009 6:30pm Jan 1, 2009 6:30pm
Quoting daveadamsbds
1. DO NOT waste your time piddling around on 5, 10,15,30,60 or even 4H charts. Anything less than 4H charts are for adrenalin junkies who are addicted to trading. I you do make money on these lower time frames 95% of you will give it all back over time. The other 5% must lead shallow lives in front of their screens. Personally I NEVER spend more than half an hour a day looking for trades. The rest of my time I fish, travel, sunbathe and make love.You make more money by trading minimally. Overtrading=loss
Dave, this is a great post.

While I agree with your trading style (because it works for me - charts under 4hrs are probably best left unopened.....), I have also seen enough over the years to realise that there are as many ways to make money in the markets as there are genetic mutations.....whatever that means.

I realise that you didn't say that it is *necessary* that successful traders trade your way, but there certainly are other successful traders out there addicted to the screen.
  • #15
  • Jan 2, 2009 10:24am Jan 2, 2009 10:24am
There's no reason not to open more than one account (or sub-account) and trade long term trend while leaving yourself some room to have fun scratching for instant riches and bonus pips...
nav++
  • #16
  • Jan 5, 2009 8:38pm Jan 5, 2009 8:38pm
Hey Dave, normally what percentage of loss do you take into account at the initial entry?
and sure you will add to your position gradually along the way when the trend continues? what about the 'super' drawbacks - get out of the train or just let it eat up all your 'profits'?

Appreciate.
  • #17
  • Jan 5, 2009 8:40pm Jan 5, 2009 8:40pm
seems Dave lingers no longer here after last August...

:_)
  • #18
  • Jan 5, 2009 9:46pm Jan 5, 2009 9:46pm
u can try yearly trade..if u have patience..
  • #19
  • Jan 5, 2009 9:56pm Jan 5, 2009 9:56pm
this thread is silly.
  • #20
  • Jan 7, 2009 8:44am Jan 7, 2009 8:44am
Different people have different trading methods which are successful: end of. It is foolish to say sweeping statements.
Probability Professor
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