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Looking for experienced trader's advices!

  • #1
  • First Post: Feb 27, 2008 12:33pm Feb 27, 2008 12:33pm
Hello everyone !

I trade forex real for about 2 months now, earlier I was trading on demo for about 6 months. My deposit is around 2500$, I trade mostly EU in both sides, I trade the minimum my broker has to offer and that is 0,1 lot worth about 1$ per pip. My technical analysis is very simple, only trendlines and price action.

At the beggining of my real trade journey i made some profits, then lost some money and then gained again - oscilating around my entry deposit, however last times my losses are more common then the winners. Its strange but the more time I spend trading, the more the market seems harder to trade proficiently for me...

Im getting confused, loosing self confidence as a newbie trader, looking at the situations where I wanted to put trade but I didnt becouse I wanted the price to move a bit diper before i enter the market then just saw the price shoot in the direction I wanted also to be in... Or a situation when i entered the market but my stop loss was too small - got stopped out and market shoot out again... I have plenty of such situations...

Thats all i will write for now, I will run this thread, writing my thoughts about trading here, maybe from time to time an experienced and wise trader shows up and helps me a little bit
  • #2
  • Feb 27, 2008 3:01pm Feb 27, 2008 3:01pm
Stoploss: you need to work out what works best for a given pair. Also, are your stops in logical positions. eg when long, don't put your stop above a whole number: the price can retrace to that whole number and a bit beyond if it uses it as support.

A better price: there are two approaches:
1) if it shoots off without offering a better price, then let it go; there's always another trade; anyway the more you learn to trust your system, the more mechanical you will become about pulling the trigger; it's just something that takes experience and practice. you could pretend you're still trading a demo account but don't take silly risks.
2) if it drops down to offer a better price, it might be heading further south; one trader in Market Wizards (by Jack Schwager) says that he prefers a worse price because it means the market is moving in the direction he thought it would!
The market reveals who we really are...
  • #3
  • Feb 27, 2008 4:50pm Feb 27, 2008 4:50pm
Hmm, taking 0,1 lot (minimum for my transaction with current broker) is taking the risk of 1$ per 1 pip. I dont want to risk more then 30-40$ per trade with my current balance and high leverage 1:100.

So, considering that my max risk is 30-40$ per trade then my max SL shuold be aproximately 30-40 pips. I find this number not enough and with the current market volatility can be compared to gamble.

Currently I am thinking about moving my "capital" to another broker, where I can take transactions for smaller lots, for example mini accounts or maybe a broker offering units (however I dont know exactly how they work) instead of lots...

What made me think like this, well as I mentioned before plenty of times I got stopped out due to too tight SL, which is basically the max of what I can "afford" now. The second thing is the psychological comfort, which - atleast comparing to the current situation - wuold rise I think...

I dont know If Im correct but, with smaller lots/units I cuold change my trading strategy to longer term, less risky I suppose... Starting with very small lots and big SL I cuold just wait for price to rise and just take additional transactions, for example:

entry #1:
Price: 1,4200
SL: 200 pips

entry#2:
Price: 1,4350
SL: 100 pips
Entry one modify to SL same as in entry #2

OK, something like that, I think u have the picture now

I dont know if my thinking about this is good or not, if someone can help me out with some wise advice I will be thankfull
  • #4
  • Feb 27, 2008 5:26pm Feb 27, 2008 5:26pm
Lol.
30-40 Pips is a big SL for me.
I'm aiming for a > 1:1 Ratio.
So my stop is usually 20-25 pips. Quite often I get 80 pips and more.
  • #5
  • Feb 27, 2008 5:44pm Feb 27, 2008 5:44pm
Hi there,

im not that experience yet but just want to comment on your post a bit.I guess you open a standard account with minimum capital requirement.Is that correct? If yes, try to ask if your broker have minis or not in order for you to do your Money Management nicely.If not, then I suggest you find another broker that offer mini/micro lot.Your first goal is to survive..and gain experience from time to time as your live trading goes by.Therefore using mini/micro lots will be good.So as the learning curve from live trading growing, you still have capital to enter the market.It's quite normal about the nerve and the emotional feeling.Maybe it's not your trading skill..as you said that you don't have enough room for your money management.just my 2 cents.

Quoting shadowninja
Stoploss: you need to work out what works best for a given pair. Also, are your stops in logical positions. eg when long, don't put your stop above a whole number: the price can retrace to that whole number and a bit beyond if it uses it as support.

A better price: there are two approaches:
1) if it shoots off without offering a better price, then let it go; there's always another trade; anyway the more you learn to trust your system, the more mechanical you will become about pulling the trigger; it's just something that takes experience and practice. you could pretend you're still trading a demo account but don't take silly risks.
2) if it drops down to offer a better price, it might be heading further south; one trader in Market Wizards (by Jack Schwager) says that he prefers a worse price because it means the market is moving in the direction he thought it would!
  • #6
  • Feb 27, 2008 6:13pm Feb 27, 2008 6:13pm
Quoting parlenk
Hi there,

im not that experience yet but just want to comment on your post a bit.I guess you open a standard account with minimum capital requirement.Is that correct? If yes, try to ask if your broker have minis or not in order for you to do your Money Management nicely.If not, then I suggest you find another broker that offer mini/micro lot.Your first goal is to survive..and gain experience from time to time as your live trading goes by.Therefore using mini/micro lots will be good.So as the learning curve from live trading growing, you still have capital to enter the market.It's quite normal about the nerve and the emotional feeling.Maybe it's not your trading skill..as you said that you don't have enough room for your money management.just my 2 cents.
Well actually my deposit is about 3 x minimal capital requirement, but Im not considering loosing whole capital, I dont even think about loosing 1/3 of it. Thats why Im cautios, and im worried the more cautios I become the more my trades are loosers, and last times I even caught myself to enter the market in the worst moment and leave the market in worst possible moment lol if not stopped out of course, some bad days I had
  • #7
  • Feb 27, 2008 6:16pm Feb 27, 2008 6:16pm
Quoting Tjpld
Lol.
30-40 Pips is a big SL for me.
I'm aiming for a > 1:1 Ratio.
So my stop is usually 20-25 pips. Quite often I get 80 pips and more.
Well, what is your trading strategy? what T/A ? are You a proficient trader?

Im aiming for longer term trading, day trading doesnt fit me well I think, so the stop losses must be bigger...

I wuold be happy as a day trader, taking stops for 20-25 pips as You, but only on one condition - I must be proficient

Maybe its just becouse Im a begginner? Maybe... However I cannot afford blowing up my account
  • #8
  • Feb 27, 2008 10:06pm Feb 27, 2008 10:06pm
Firebolt...a few things.

#1: Be prepared to lose your 2,500 euros, because this is very likely to happen.

#2: You already have all the tools you need to be successful, which is absolutley nothing but a blank chart.

#3: Observe all time frames, but trade off the 1-minute chart.

#4: Do not attempt to predict beyond the next couple minutes. Let the market prove you right or wrong immediately. If you are wrong, then get out without hesitation. If you are right, stay in but be prepared to take profits when things don't look right anymore.

#5: Only trade when market is active. This is when you will get a "feel" for what the market wants to do.

#6: Be aware of when news comes out so that you can avoid being in a trade at those times.

#7: Getting proficient at trading will take at least a few years, so get used to accepting this fact. This is if you really work hard at it.

#8: As Ed Seykota once said, "Everyone gets what they want out of the markets." I believe this to be true.
  • #9
  • May 18, 2009 2:12pm May 18, 2009 2:12pm
Quoting Zappa
Firebolt...a few things.

#1: Be prepared to lose your 2,500 euros, because this is very likely to happen.

#2: You already have all the tools you need to be successful, which is absolutley nothing but a blank chart.

#3: Observe all time frames, but trade off the 1-minute chart.

#4: Do not attempt to predict beyond the next couple minutes. Let the market prove you right or wrong immediately. If you are wrong, then get out without hesitation. If you are right, stay in but be prepared to take profits when things don't look right anymore....
Truthfully, I think this is awful advice to a newcomer- especially trading off the lower timeframe charts. To each his own, I guess.

Numbers 3, 4, 5, and 6 are not something to be told to a newcomer.

#6 is only bad because you are implying that one should trade off the lower timeframe charts. If you trade the higher timeframes, news is of no effect for the most part.

Numbers 3 and 5 speak for themselves.

Number 4 is also not good advice IMO. Sometimes it takes a while for a trade to play out, and you could be in the negative for a while before it does play out.
I dream, therefore I become.
  • #10
  • May 18, 2009 3:19pm May 18, 2009 3:19pm
Another clueless member 'helping out' the new kids on the block? Likely.
Living the adventure in my head.
  • #11
  • May 18, 2009 3:30pm May 18, 2009 3:30pm
Well first thing is you need to learn money management and then a solid strategy, I'll show you how to pull 800 pips out the market on a daily basis stop by and see how >http://www.forexfactory.com/showthre...=1#post2740983

Here's an info video of the strategy I use
Inserted Video

Inserted Video


You need to learn the mechanics of the market first.Happy trading
{Promotion Removed}
  • #12
  • May 18, 2009 3:42pm May 18, 2009 3:42pm
Another clueless member 'helping out' the new kids on the block? Likely.
Living the adventure in my head.
  • #13
  • May 18, 2009 3:47pm May 18, 2009 3:47pm
LOL, mr firebolt the original poster hasn't visisted FF for nearly a year & before today the last post on the thread was Feb 2008

How on earth did this one get resurrected from the ashes of obscurity?
  • #14
  • Last Post: May 18, 2009 10:38pm May 18, 2009 10:38pm
HA! Then TJLPD deleted his post and made me look like the big dummy. This was trickery!
I dream, therefore I become.
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