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What is the key to sucessful FOREX trading?

  • #21
  • Mar 20, 2010 3:35am Mar 20, 2010 3:35am
my golden rules (im enfp ... right brainer)

- if the chart says take action ... take action (can't quantify this, sorry )

- the farther away i am willing to put my stop loss, the better the entry

- take profits (getting out of a bad [not necessarily losing] trade is also a profit)

- be in the here and now (don't expect anything to happen [future], don't deviate because of fear something could happen again [bad experience, errors from the past])

- forgive yourself for your mistakes and remember them [i.e. learning] (you don't want to do them again)

- listen to others but follow your own path

Van Tharp, Trading & Personality:
http://www.iitm.com/articles/Persona...nd-Trading.htm
Invincibility lies in the defence, the possibility of victory in the attack
  • #22
  • Mar 20, 2010 3:56am Mar 20, 2010 3:56am
Quoting silverheat
my golden rules (im enfp ... right brainer)

- if the chart says take action ... take action (can't quantify this, sorry )

- the farther away i am willing to put my stop loss, the better the entry

- take profits (getting out of a bad [not necessarily losing] trade is also a profit)

- be in the here and now (don't expect anything to happen [future], don't deviate because of fear something could happen again [bad experience, errors from the past])

- forgive yourself for your...
-----

I think this is why I am doing this - to learn about myself-- or maybe for the challenge- or maybe it is just calling to me-
=I find it is like learning an instrument way back when I was 16 listening to Joe Perry of Aerosmith-
I thought to myself- that sounds easy........

The path toward becoming a better trader is usually a path toward wholeness, and no two paths are identical. Each of us has to begin where we are in our own life situation. No matter what your path, you must first determine where you are. What are the patterns in your life that block you in your trading, your relationships, etc.? Those patterns can be available to you right now because they show up in your trading and in every other aspect of your life as well. Unfortunately, in most cases, people are not aware of them. Thus, the transformation journey often begins with a crisis. For it is only when an obvious crisis begins that we wake up to the fact that something is wrong in our lives.
  • #23
  • Mar 20, 2010 9:32am Mar 20, 2010 9:32am
Quoting bidie
-----

I think this is why I am doing this - to learn about myself-- or maybe for the challenge- or maybe it is just calling to me-
=I find it is like learning an instrument way back when I was 16 listening to Joe Perry of Aerosmith-
I thought to myself- that sounds easy........
so what are your golden rules, what have you learned from your trading experience?
Invincibility lies in the defence, the possibility of victory in the attack
  • #24
  • Mar 20, 2010 9:41am Mar 20, 2010 9:41am
Quoting bidie
I thought to myself- that sounds easy........
i have a quote for you (stolen from aediaz1 profile )

-Find your true passion and talent. It doesn't have to be trading.

"Successful traders have found a market (or set of markets) and a trading style that capitalizes on their abilities. They have been relentless in working on their skills, using videotaping to review markets and performance and using simulators to rehearse under different market conditions. To sustain such effort requires a love of the markets themselves, something not all traders have. Some traders love the action, some love the dream of making money, some love the opportunity to work for themselves—but many don’t love the work itself: the effort of mastering patterns in demand and supply.

Success is possible in trading as it is in any performance field. If anyone tells you, however, that the path to trading success is different than it is for the surgeon or Olympian, you know that you’re hearing a myth."
Invincibility lies in the defence, the possibility of victory in the attack
  • #25
  • Mar 20, 2010 10:14am Mar 20, 2010 10:14am
For me it was a hardcore approach to trading. I've been trading various markets on/off since I was 20 years old. I'm now 34. When I took on Forex I would wake up and examine charts 30 minutes before leaving for work. I'd come home from work and spend 3-4 hours doing the same. On the weekend i'd spend anywhere between 8-14 hours each day doing the same. I refused to give up, and with the help of J16 it hit me like a tun of bricks. Overall I attribe my success to my will to never give up. I literally pounded this stuff into my head and used all my available free time to practice as much as I could and found my own trading style, which turned out to be a combo of pieces of many other successful traders styles.

Moral of this story. Practice, don't give up. You'll find your way eventually.
  • #26
  • Mar 20, 2010 10:28am Mar 20, 2010 10:28am
I recall reading an article and the only interesting bit of that article was

The market pays you to be disciplined

As in following the rules of your trading system which should incorporate three good components, money management, trading psychology and the trading "strategy".

In case you are familiar with money management, and you know how to make an entry and an exit, consider the emotional side of trading.

You can't really make a trade if you are afraid, you can't make a good exit if you're greedy and you can't think clearly if you're angry or overconfident.
  • #27
  • Mar 20, 2010 10:35am Mar 20, 2010 10:35am
Quoting ssnakezor
you can't make a good exit if you're greedy
Fear and greed. Ok the fear part I can understand but not the greed part, why is greed so bad in trading?

Most people want more material things in life, they don't just settle for what they need, and the definition of greed is "An excessive desire to acquire or possess more than what one needs or deserves, especially with respect to material wealth". Hmmm, that sounds like traders and trading to me, we're trading in the hope of being wealthy, not just to be able to afford the grocery bill!

Greed - good! Capitalism rules!
  • #28
  • Mar 20, 2010 10:37am Mar 20, 2010 10:37am
Quoting pipmutt
Fear and greed. Ok the fear part I can understand but not the greed part, why is greed so bad in trading?

Most people want more material things in life, they don't just settle for what they need, and the definition of greed is "An excessive desire to acquire or possess more than what one needs or deserves, especially with respect to material wealth". Hmmm, that sounds like trading to me!

Greed - good!
oh yeh.
not too much
  • #29
  • Mar 20, 2010 10:41am Mar 20, 2010 10:41am
Quoting pipmutt
Fear and greed. Ok the fear part I can understand but not the greed part, why is greed so bad in trading?

Most people want more material things in life, they don't just settle for what they need, and the definition of greed is "An excessive desire to acquire or possess more than what one needs or deserves, especially with respect to material wealth". Hmmm, that sounds like traders and trading to me!

Greed - good! Capitalism rules!
My point was if you were getting too greedy, you could lose focus and in turn score in a loss and a very bad mood.

I wasn't advocating against letting profits run though.
  • #30
  • Mar 20, 2010 10:51am Mar 20, 2010 10:51am
Quoting ssnakezor
My point was if you were getting too greedy

Don't get me wrong, I wasn't having a pop at you personally, everyone's always repeating the 'fear and greed' cliche.
  • #31
  • Mar 20, 2010 11:03am Mar 20, 2010 11:03am
Earlier on this thread i saw someone saying that techical analysis dot work, but its completely logical that they work. What drives markets: mass behaviour, and mass behaviour is not random.
Technical analysis work becaus of simple reason-mass of people trade tehnical (type in google "technical analysis" and it will give you 80.000.000 results, so if nobody were trading technical this sites wouldnt excist). So now you know thatt if you see resistance other people will probably saw it and than in example say you will see a doji candle and you and bunch of other people will take the trade and market will move (if there is not a big economic reason why to react- although fundamentals drive the market).

My rules:
1. understand your method or system (even if you buy some robots which most of them are just marketing tricks, get to now with them).
In other words this is having an edge, if you dont know what your edge is, you probablj havent got it.
2. dont try to make things more complicated then they are, it happens that new traders see a trenlinebreak or s/r broken and they stay away because it seems to simple to profit from them.
so Keep it simple!.
3. money managment, risk no more than 2% of your equity on every trade.
TAKE CARE OF YOUR LOSSES AND THE PROFITS WILL TAKE CARE OF THEMSELVES!
Dont overtrade yourself.
4. dont hesitate to take the trade, but always act reasonable
5. dont stick to your losing trade and dont cut your winners
CUT YOUR LOSSES SHORT, LET YOUR PROFITS RUN!
  • #32
  • Mar 20, 2010 6:40pm Mar 20, 2010 6:40pm
Quoting davidleekiev
What are the golden rules for the beginner? What is most important? (Discipline, minimizing risk, analysis etc?)
I will just offer you one piece of advice:

DOCUMENT EVERYTHING!!

- If you have a theory on something that might work - document it (then test it)
- If you learn that something you thought would work, does not for you, document it and the reasons why
- If you learn something that does work (or so you think for the moment) document it and the reasons why
- If you learn something about learning - document it!
- If you take a demo trade, or a live trade - document what you did, what the ouctome was, and why you took that trade in the first place - and be brutally honest with yourself! (actions and consequences..)
- and the list goes on..

The flipside? Failure to document your learning, your actions, your reasoning behind those actions, and the consequences of those actions (be they good, bad or ugly), is denying yourself the opportunity of learning... and the learning process in trading is a long and difficult one. You can make that learning process far more tangible and efficient, and avoid a lot of rework, if you keep meticulous records about your actions...
  • #33
  • Edited 7:20pm Mar 20, 2010 7:03pm | Edited 7:20pm
"What is the key to successful Fx trading?"

Very difficult to pinpoint exactly, but this is my view:

1] find or develop a strategy, system, method or "approach" (to the market you trade), from which you are able to generate a positive expectancy

2] learn to trade it consistently............, ie., again and again and again and again and again and again


Most novice traders never have the good fortune to:
A] find a means by which they can extract a positive expectancy.

In fact they can find themself spending years going around-and-around in circles with "approaches" from which either a positive expectancy cannot be extracted and/or they as a personality type have no genuine affinity with the approach, even if a positive expectancy can be extracted from it.

And B], even if they manage A], they struggle to get it working consistently; week after week, month after month, year after year. For multiple reasons: emotion, lack of time, external distractions etc
  • #34
  • Mar 20, 2010 9:34pm Mar 20, 2010 9:34pm
Quoting PeterE
"What is the key to successful Fx trading?"

Very difficult to pinpoint exactly, but this is my view:

1] find or develop a strategy, system, method or "approach" (to the market you trade), from which you are able to generate a positive expectancy

2] learn to trade it consistently............, ie., again and again and again and again and again and again
But what if your strategy, system, method or "approach" is wrong and doesn't work in the long term?
  • #35
  • Mar 20, 2010 9:55pm Mar 20, 2010 9:55pm
1] find or develop a strategy, system, method or "approach" (to the market you trade), from which you are able to generate a positive expectancy
Quoting zarraman
But what if your strategy, system, method or "approach" is wrong and doesn't work in the long term?
try to understand what he said
  • #36
  • Mar 20, 2010 10:23pm Mar 20, 2010 10:23pm
Quoting zarraman
But what if your strategy, system, method or "approach" is wrong and doesn't work in the long term?
yes, this is what i eluded to in my original post when i said:

"In fact they can find themself spending years going around-and-around in circles with "approaches" from which either a positive expectancy cannot be extracted and/or they as a personality type have no genuine affinity with the approach, even if a positive expectancy can be extracted from it."

so, what if you cant get it working?

i see 3 choices:
1] change your approach
2] change your application of your selected approach
3] or quit trading

1] and 2] obviously require experience, there's no quick recipe unfortunately
  • #37
  • Mar 22, 2010 11:14pm Mar 22, 2010 11:14pm
Quoting PeterE

so, what if you cant get it working?

i see 3 choices:
1] change your approach
2] change your application of your selected approach
3] or quit trading

1] and 2] obviously require experience, there's no quick recipe unfortunately
One other choice: Get help from someone who knows what they are doing.
  • #38
  • Mar 23, 2010 3:24am Mar 23, 2010 3:24am
For me, there were several hard lessons to learn. My first live account died over the course of around a year. When looking back at what happened in detail I found that if I'd taken the spread out of my trades (ie theoretical trading with no spread) I would have only lost around 20% of my account. I had severely over traded, averaging three or four trades a day. I personally think that long term trading is better for a new trader, keep your short term trading in demo.
Learning how to exit a trade is important. If you are in a trade and are not sure if you should exit, imagine that you are not in the market. Would you take a position the other way? Looking back at your original entry, does it still look good? It is tough to lose money but be mindful that you might be better off watching or taking a trade going the other way.
Don't complicate things too much, the KISS principle works well here.
Time... really give yourself a lot of time. I think that by the time I'm convinced that I can trade well enough to put a significant amount of money into my account that I will have easily spent as much time and read as much as a university/college student.
Good luck
  • #39
  • Mar 25, 2010 3:54pm Mar 25, 2010 3:54pm
The key to successful trading is understanding how the market works. Once you get that, and you don't need to be an economics professor, you can make any trading strategy work (assuming of course we are talking about a reasonably logical strategy!).
  • #40
  • Mar 26, 2010 2:10am Mar 26, 2010 2:10am
You don't need to trade a lot to make a lot.

HTD, or Hyperactive Trading Disorder, is a big killer for new traders. When I first started I found myself trading impatiently. I've now realized that the key to profits is choosing trades wisely and riding the profits on them as opposed to choosing a lot of mediocre trades which can oftentimes turn against you.
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