As someone who has been through the ups and downs in the Forex world, I cannot help but see several things that bother, yet encourage me at the same time on these (and other) forums. This post is a reaction to some very negative things I see over and over.
For myself, I am a fairly new trader. In fact, I have only been trading for about 20 months. I have been profitable for the last 13. (Ok, a little admission here - one month was only 0.15%, but it still counts.) I was lucky in finding a group of supportive people who shared a common interest in this trading game. However, many of you will not be so lucky. It's really a shame, because trading really isn't difficult at all if you break it down to the simple mechanics.
One of the natural steps a new trader will go through is "Which system works for me?" The catch is this: It's always going to be slightly different for each one of us. For me, it's been simple technical analysis of support and resistance. No indicators at all. 4 hour or above time frames. I believe in compound interest, therefore am alright with "only" 3-5% a month. I know this isn't what they advertise in the Forex world as your returns, but those levels of returns can make you very, very, wealthy over time. My goal each month: Have more in my account than last month. That simple.
You will read about a system, and then everyone wants to know about it. For about 5 minutes, it's important to a few people...until the first loss, and it's onto the next new system. It is my experience that a system only works for you if it fits your personality. For example, if you are a patient person, trading the weekly charts shouldn't bother you. If you are a more "A type" personality, it would just about kill you. Also, you cannot think you are going to win every trade. To believe otherwise is to set yourself up for failure. Nor can you berate yourself for not taking a trade you "should have". This is crap too, remember: We are trading to enhance our lives. This shouldn't be a source of pain or unnecessary stress in your life.
The biggest secret in trading? It is how you react to your losses that determine is you are sucessful or not.
Can someone tell me who got into this thinking: "Hey man, I would love to sit and stare at a computer screen for 18 hours a day screaming and pulling my hair out!" My guess is very few of you wanted that. We had dreams of sitting on a beach somewhere and pressing a few buttons, making $15,000 stress-free. I don't know if that's entirely possible, but the point is that it was supposed to be a source of freedom. Chaining yourself to a chair all day is not freedom. I don't care how much you think you are going to make. Quality of life is just as important as how big your bank account is. (More so in all truth.)
Please keep in mind that there are two things that can dictate how this will work out for you. Those would be your account size and your patience/discipline. I understand that not everyone has $50,000 to start out with in their account. It's alright actually. Just be honest about it, and how you are going to be very hard pressed to turn that $1,000 into $1,000,000. Through time and slowly adding money as you go along, you can still build up a nice account over time.
If I were to tell you I could turn $1,000 into $100,000 in a week, would you believe me? Why not? Because you know it's a lie. So if that's the case, why do you expect yourself to be able to do that?
As far as discipline, I have read several threads and comments on forums over the last two years which show me where my profits come from. I am not being arrogant when I say this, just that if a person doesn't have the discipline to act like a civilized human being on a forum...how do you think they act while alone, worrying about a position they are in? Seriously think about that before you blindly follow someone else on a forum. Even me.
I am not going to share a system in this post. What I am sharing is more important in my opinion. How in the world can I tell you what will work for you? You could be a 56 year-old homemaker in Sweden. Or a grandfather in India who has much more patience and life experience than I. We are not the same people. At best I could maybe give you the right questions to ask yourself.
Also, don't confuse enthusiasm with a "In it to win it" kind of thing. It's not like that at all. You are better off keeping things simple, and never "needing" to trade. When I first started, I remember the weekends being so long to me. I couldn't trade! Now I can go two weeks without being bothered.
Also, never forget that not all profits are based on money. It's a long story, but by being forced to ask myself about my psychology and the reason I took certain trades - I got to know myself a lot better. So much better in fact, I quit smoking after 22 years. Suddenly. I remember just thinking, "If I have a need to be in control, why in the hell am I letting this dead weed control me?" (Reverse psychology at it's finest.)
If you will listen, you will be amazed at what these charts can teach you about yourself and the world at large.
Best of luck to you all,
Clockwork
For myself, I am a fairly new trader. In fact, I have only been trading for about 20 months. I have been profitable for the last 13. (Ok, a little admission here - one month was only 0.15%, but it still counts.) I was lucky in finding a group of supportive people who shared a common interest in this trading game. However, many of you will not be so lucky. It's really a shame, because trading really isn't difficult at all if you break it down to the simple mechanics.
One of the natural steps a new trader will go through is "Which system works for me?" The catch is this: It's always going to be slightly different for each one of us. For me, it's been simple technical analysis of support and resistance. No indicators at all. 4 hour or above time frames. I believe in compound interest, therefore am alright with "only" 3-5% a month. I know this isn't what they advertise in the Forex world as your returns, but those levels of returns can make you very, very, wealthy over time. My goal each month: Have more in my account than last month. That simple.
You will read about a system, and then everyone wants to know about it. For about 5 minutes, it's important to a few people...until the first loss, and it's onto the next new system. It is my experience that a system only works for you if it fits your personality. For example, if you are a patient person, trading the weekly charts shouldn't bother you. If you are a more "A type" personality, it would just about kill you. Also, you cannot think you are going to win every trade. To believe otherwise is to set yourself up for failure. Nor can you berate yourself for not taking a trade you "should have". This is crap too, remember: We are trading to enhance our lives. This shouldn't be a source of pain or unnecessary stress in your life.
The biggest secret in trading? It is how you react to your losses that determine is you are sucessful or not.
Can someone tell me who got into this thinking: "Hey man, I would love to sit and stare at a computer screen for 18 hours a day screaming and pulling my hair out!" My guess is very few of you wanted that. We had dreams of sitting on a beach somewhere and pressing a few buttons, making $15,000 stress-free. I don't know if that's entirely possible, but the point is that it was supposed to be a source of freedom. Chaining yourself to a chair all day is not freedom. I don't care how much you think you are going to make. Quality of life is just as important as how big your bank account is. (More so in all truth.)
Please keep in mind that there are two things that can dictate how this will work out for you. Those would be your account size and your patience/discipline. I understand that not everyone has $50,000 to start out with in their account. It's alright actually. Just be honest about it, and how you are going to be very hard pressed to turn that $1,000 into $1,000,000. Through time and slowly adding money as you go along, you can still build up a nice account over time.
If I were to tell you I could turn $1,000 into $100,000 in a week, would you believe me? Why not? Because you know it's a lie. So if that's the case, why do you expect yourself to be able to do that?
As far as discipline, I have read several threads and comments on forums over the last two years which show me where my profits come from. I am not being arrogant when I say this, just that if a person doesn't have the discipline to act like a civilized human being on a forum...how do you think they act while alone, worrying about a position they are in? Seriously think about that before you blindly follow someone else on a forum. Even me.
I am not going to share a system in this post. What I am sharing is more important in my opinion. How in the world can I tell you what will work for you? You could be a 56 year-old homemaker in Sweden. Or a grandfather in India who has much more patience and life experience than I. We are not the same people. At best I could maybe give you the right questions to ask yourself.
Also, don't confuse enthusiasm with a "In it to win it" kind of thing. It's not like that at all. You are better off keeping things simple, and never "needing" to trade. When I first started, I remember the weekends being so long to me. I couldn't trade! Now I can go two weeks without being bothered.
Also, never forget that not all profits are based on money. It's a long story, but by being forced to ask myself about my psychology and the reason I took certain trades - I got to know myself a lot better. So much better in fact, I quit smoking after 22 years. Suddenly. I remember just thinking, "If I have a need to be in control, why in the hell am I letting this dead weed control me?" (Reverse psychology at it's finest.)
If you will listen, you will be amazed at what these charts can teach you about yourself and the world at large.
Best of luck to you all,
Clockwork
