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If you haven't made it yet, what makes you think you will? 212 replies

Congrats! You just joined 5% or less

  • #41
  • Aug 23, 2009 3:01pm Aug 23, 2009 3:01pm
When to stop trading?

For every $1000 in your account, let's say you risk 1% per trade. You set your stop loss at 10 pips and your position size is 1 minilot.

If you make 10 pips, with 100% leverage, you make $10 or a 1% return.

Do you quit for the day?

If you do this 200 days in a row, you have tripled your account without compounding.

One trade a day. Can you do it? Or will you be tempted to keep trading?

Would a 200% return put you in the 5% or less club?

Trading is simple. Don't let the rat beat you.
  • #42
  • Edited 5:41pm Aug 23, 2009 5:38pm | Edited 5:41pm
Quoting gbppip
When to stop trading?

For every $1000 in your account, let's say you risk 1% per trade. You set your stop loss at 10 pips and your position size is 1 minilot.

If you make 10 pips, with 100% leverage, you make $10 or a 1% return.

Do you quit for the day?

If you do this 200 days in a row, you have tripled your account without compounding.

One trade a day. Can you do it? Or will you be tempted to keep trading?

Would a 200% return put you in the 5% or less club?


Trading is simple. Don't let the rat beat you.
I saw discussion on this topic in some other thread. I was just wondering if your above post has landed in intended thread.

However, since you are here, seek to benefit from you. Will appreciate your views on my thinking that, one should wait for right opportunity without limiting his/herself when and how frequently (or infrequently) opportunities present themselves. However, on the other hand taking only one trade a day has its own merits. Which one you would suggest and why?
The Thief of Wall Street
  • #43
  • Aug 24, 2009 8:21am Aug 24, 2009 8:21am
What are you risking in order to take your $10? For those that focus on profits only tend to lose rather quickly. Risk based approach is how the pros do it. It's the only way to go.

Quoting Chicky
I saw discussion on this topic in some other thread. I was just wondering if your above post has landed in intended thread.

However, since you are here, seek to benefit from you. Will appreciate your views on my thinking that, one should wait for right opportunity without limiting his/herself when and how frequently (or infrequently) opportunities present themselves. However, on the other hand taking only one trade a day has its own merits. Which one you would suggest and why?
  • #44
  • Aug 24, 2009 5:31pm Aug 24, 2009 5:31pm
Quoting RhinoFX
What are you risking in order to take your $10? For those that focus on profits only tend to lose rather quickly. Risk based approach is how the pros do it. It's the only way to go.
HI RhinoFX:

The answer to how much risk was in the original post.


Quote
For every $1000 in your account, let's say you risk 1% per trade. You set your stop loss at 10 pips and your position size is 1 minilot.

If you make 10 pips, with 100% leverage, you make $10 or a 1% return.
If you only trade long, then you can't always be wrong.
  • #45
  • Edited 7:52pm Aug 24, 2009 7:50pm | Edited 7:52pm
Quoting RhinoFX
What are you risking in order to take your $10? For those that focus on profits only tend to lose rather quickly. Risk based approach is how the pros do it. It's the only way to go.
What a quick entry and exit. Ever heard of "Membership Scalp"? His/Her SL hit even before placing the trade
The Thief of Wall Street
  • #46
  • Aug 25, 2009 10:03am Aug 25, 2009 10:03am
The 95% losing money will not change. Forex is a zero sum game people lose so others can gain. The biggest gainers in this are the brokers.

Education helps a bit but the 95% to 5% is an equilibrium it will not change.
  • #47
  • Aug 25, 2009 10:58am Aug 25, 2009 10:58am
Quoting hilmy83
so are you in the top 5%?
I believe this is the best question to any trader.
It takes a long time of "talk to yourself" before you can come up with this type of answer as its got a lot to do with the inner self.
  • #48
  • Edited 9:16pm Aug 25, 2009 8:23pm | Edited 9:16pm
Quoting MackS10
I believe this is the best question to any trader.
It takes a long time of "talk to yourself" before you can come up with this type of answer as its got a lot to do with the inner self.
No one but time answers this question. However, it is sure difficult to answer this question by one who 1) is not confident about his/her edge as yet 2) does not know when, where and how to use this edge; 3) has not learned to overcome his/her own limitations; and 4) does not know administrative / operational requirements of trading.

First two are essential (research phase), next two come with exposure and experience (development phase).

Time will favor only those who would servive until they complete development phase. People who are in development phase, may claim to be among 5%s, and this claim is their hard earned right. It will be unfortunate to deny achievers of their this right ....................... unfortunte not for the achievers, but for the ones who are in such denial.

People have achieved this level before us, people will achieve this level after us, and some people are enjoying this level right at this moment. If someone has done it, someone else can also do it.

"Great spirits have always encountered violent opposition from mediocre minds" - Albert Einstein

ps. someone will now ask this question what makes one believe that he/she is a Great Spirit? and the whole discussion will start all over again
The Thief of Wall Street
  • #49
  • Aug 25, 2009 8:36pm Aug 25, 2009 8:36pm
Quoting Chicky
I saw discussion on this topic in some other thread. I was just wondering if your above post has landed in intended thread.

However, since you are here, seek to benefit from you. Will appreciate your views on my thinking that, one should wait for right opportunity without limiting his/herself when and how frequently (or infrequently) opportunities present themselves. However, on the other hand taking only one trade a day has its own merits. Which one you would suggest and why?
That's right, Mate, take your entry when it happens. After you hit your daily quota, what would be the reason to take another trade? How soon after you exited that last trade would your next trigger fire off?

If you take one more trade and that turns out to be a loser, then what, Mate? You take another to make back what you lost? What if that is a loser, too? Could be an endless cycle. Call it a day, Mate. Go do something you enjoy other than trade.
  • #50
  • Aug 25, 2009 8:37pm Aug 25, 2009 8:37pm
Quoting soldintime
Education helps a bit but the 95% to 5% is an equilibrium it will not change.
If I could get the rats to trade, there would be an equilibrium shift.
  • #51
  • Aug 25, 2009 8:43pm Aug 25, 2009 8:43pm
Quoting gbppip
If I could get the rats to trade, there would be an equilibrium shift.



Assuming the rats don't think from themselves, i am 100% with you

Eck, we'd be 50/50! now that scares me!
Traders are smartasses
  • #52
  • Aug 25, 2009 8:45pm Aug 25, 2009 8:45pm
Quoting Spsantos


Assuming the rats don't think from themselves, i am 100% with you

Eck, we'd be 50/50! now that scares me!
The rats don't think, Mate, they rely on instinct. The rats beat the Yale students.
  • #53
  • Aug 25, 2009 9:11pm Aug 25, 2009 9:11pm
Quoting gbppip
The rats don't think, Mate, they rely on instinct. The rats beat the Yale students.
Just like I thought!

- Glad i followed Harvard standards

Quoting Chicky
ps. someone will now ask this question what makes one believe that he/she is a Great Spirit? and the whole discussion will start all over again
Chicky, that's a great question, and Great Spirits usually need several generations of Great Minds to recognize them, except some (very) few personalities like the one you so well quoted.

Ok, now back to watch graphs from this month, been away for 3 weeks, need to re-concentrate!
Traders are smartasses
  • #54
  • Aug 25, 2009 9:21pm Aug 25, 2009 9:21pm
Quoting gbppip
That's right, Mate, take your entry when it happens. After you hit your daily quota, what would be the reason to take another trade? How soon after you exited that last trade would your next trigger fire off?

If you take one more trade and that turns out to be a loser, then what, Mate? You take another to make back what you lost? What if that is a loser, too? Could be an endless cycle. Call it a day, Mate. Go do something you enjoy other than trade.
This is some really good food for thought .
The Thief of Wall Street
  • #55
  • Aug 25, 2009 9:22pm Aug 25, 2009 9:22pm
I think everyone has the potential to be successful in forex, but the problem lies that most people look at something like forex and think it's a life changer, start trading forex and you can make big money, this is a common marketing ploy with most any broker, and or EA's. The thing that kills most forex traders is the lack of understanding the simplicities of forex IMO.
  • #56
  • Aug 25, 2009 10:15pm Aug 25, 2009 10:15pm
Quoting gbppip
That's right, Mate, take your entry when it happens. After you hit your daily quota, what would be the reason to take another trade? How soon after you exited that last trade would your next trigger fire off?

If you take one more trade and that turns out to be a loser, then what, Mate? You take another to make back what you lost? What if that is a loser, too? Could be an endless cycle. Call it a day, Mate. Go do something you enjoy other than trade.
I think the actual problem comes when a trader sets a certain number gain for themselves each day. Trade what you see, in your time on the screen (preferably during the most activate sessions). Don't worry about whether you make 0.01% or 10%.

That goal of say 2% or so per day is what a lot of people walk in with expecting. That is unrealistic to achieve day in and day out. If you were to do this for 250 days then you would have a +13749.78% increase in your account. Okay, lets say you take some out and all that but still it ends up being thousands of percent gain. THAT IS UNREALISTIC, especially with beginners. The professionals make 25% a year on average. With their massive accounts that is a lot but still 25%. We've all done the excel documents forecasting our accounts in years from now, and how many millions we'll have but thats generally never the case.

When you set an unrealistic goal such as that, that's when you panic certain days when you haven't hit your mark. Or sometimes you'll just go to sleep after hitting your mark and will miss an excellent day of trading.

Before trading live, one should already have the discipline of not over trading. If a trader has that problem, then simply put they shouldn't be trading with live funds.

I think this is one of the biggest mistakes traders make because they think forex is a job. You make x amount of money a day, and thats your goal for the rest of your life.

Forex is a investment type business. And you have to treat it as such, you have to understand that somedays you don't make money, and some days you do. And somedays you make less then you would. The job like qualities that you would bring into trading is working during active times, and recording your data etc.

If anyone can prove to me that they've made 2% per day for the past 2 years i'll kiss their designer made shoes. Remember that means that you're account must have increased 1000x minimum(its way more than that). Don't believe the math?

X = 1000(1.02)^500 (500 trading days)
X = $19 956 569.14

Okay say you take a couple million out. Won't make too much of a difference. If you can make 10 mil + with $1000 in two years ,again ill kiss your expensive shoes.
  • #57
  • Aug 25, 2009 10:20pm Aug 25, 2009 10:20pm
Quoting MackS10
I believe this is the best question to any trader.
It takes a long time of "talk to yourself" before you can come up with this type of answer as its got a lot to do with the inner self.
A lot to do with inner account balance as well
  • #58
  • Aug 26, 2009 9:50am Aug 26, 2009 9:50am
Quoting Chicky
ps. someone will now ask this question what makes one believe that he/she is a Great Spirit? and the whole discussion will start all over again
LoL....I was pushing my thoughts only to see if there appear good counter arguments to it....glad you liked them
The only way to get smarter is by playing a smarter opponent.
  • #59
  • Aug 26, 2009 1:18pm Aug 26, 2009 1:18pm
the 95% failure rate comes from the industry exchanges who determine 95% that of all accounts opened and funded within like 90 days close negative.

mark brown
  • #60
  • Aug 27, 2009 1:28pm Aug 27, 2009 1:28pm
Quoting fxquest
the 95% failure rate comes from the industry exchanges who determine 95% that of all accounts opened and funded within like 90 days close negative.

mark brown
Post the source link/document where you read that.
The only way to get smarter is by playing a smarter opponent.
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