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Need some advice

  • #1
  • First Post: Feb 4, 2006 1:44am Feb 4, 2006 1:44am
Hello Guys,

I need your help and advice.
What skills and habits I need to develop as a trader able to stay on the game until I die? Thanks
  • #2
  • Feb 4, 2006 2:18am Feb 4, 2006 2:18am
Quoting SurfingWave
Hello Guys,

I need your help and advice.
What skills and habits I need to develop as a trader able to stay on the game until I die? Thanks
Patience and analysing the charts is the key to the success in forex market.
  • #3
  • Feb 4, 2006 7:57am Feb 4, 2006 7:57am
Quoting tomecki
Patience and analysing the charts is the key to the success in forex market.
Actually I dissagree to some extent on the chart thing, many trade the fundamentals and so charts are of a little importance, but I do agree with your comment on patience. My opinion? the single most important skills are:

 

  1. Discipline
  2. Money Management
  3. Discipline
  4. Controlling emotions
  5. Patience
  6. oh yeh and Discipline.

You can quit and they won't care, but you will always know.
  • #4
  • Feb 4, 2006 8:01am Feb 4, 2006 8:01am
To Stay in the Game, the #1 thing you have to learn is Money Management.

Start at a Maximum of 2% exposure until you understand how good you/your system is and work toward 5%. Even 5% some would say is too high.

eg.
$10,000.00 Account trading Mini Lots.
Mini Lot Margin = $25.00 {*Note*}

$10,000.00 * 0.02 = $200.00

$200.00 = Maximum Margin Exposure to Markets at any one time.

$200.00 / $25.00 = 8

8 = Maximum Mini Lots In Trade at any one time.

I know $200.00 sounds like a minuscule amount compared to $10,000.00 to ~95% of would be Traders. Perhaps that is one of the reasons that 95% of would be Traders are Broke and Out Of The Game in 3 Months.

*Note*This could vary depending on your bro_ker & how many Mini Lots you Open/Trade.

Oh Yeah. And as Akuma99 says, Discipline to do so.
  • #5
  • Feb 4, 2006 12:54pm Feb 4, 2006 12:54pm
Get educated, it is not a lottery game!
- SAFE TRADING MONEY DUCK
  • #6
  • Feb 4, 2006 4:39pm Feb 4, 2006 4:39pm
Quoting Akuma99
Actually I dissagree to some extent on the chart thing, many trade the fundamentals and so charts are of a little importance, but I do agree with your comment on patience. My opinion? the single most important skills are:

  1. Discipline
  2. Money Management
  3. Discipline
  4. Controlling emotions
  5. Patience
  6. oh yeh and Discipline.

Thank you very much too all of you!!! Right now.. I don't have discipline no plans no patience and terrible in money management. I thought the right answer to be a good trader is to find the right indicator and starts making money. I was wrong.. Thank you.. you save me lots of money and time and life. I will starts working in this area. Pardon my english guys. english is my second language. Any books or audio would you suggest?
  • #7
  • Feb 4, 2006 4:40pm Feb 4, 2006 4:40pm
1) doing what's required on a daily basis, going through the trading process;

2) have a strong enough money mindset to have sufficient funds to trade with;

3) having a business plan to guide your trading;

4) having a good system or perhaps two or three good systems;

5) having proper position sizing in place.

6 )And behind all of those elements is the key to everything, your personal psychology.

It can be a long trip. So enjoy the road.
Have fun
A truly wise man, always has more questions than answers.
  • #8
  • Feb 4, 2006 8:01pm Feb 4, 2006 8:01pm
Don't put any real money into the market until you have a proven track record on your demo. What's a proven track record? Well, that can be different for everyone, but you should show consistent profits trade after trade. If you think you can just start trading and make instant money, the market will chew you up and spit you out, at least that's what it did to me. All my fault for not doing all of the things that the pros told me to do. I don't mean to discourage you or anyone that's just starting out, but just a free warning: Don't use real money for as long as you can stand it, then wait a few more days.
Mark
Because helping each other is a good thing.
  • #9
  • Feb 4, 2006 11:25pm Feb 4, 2006 11:25pm
Quoting SurfingWave
Thank you very much too all of you!!! Right now.. I don't have discipline no plans no patience and terrible in money management. I thought the right answer to be a good trader is to find the right indicator and starts making money. I was wrong.. Thank you.. you save me lots of money and time and life. I will starts working in this area. Pardon my english guys. english is my second language. Any books or audio would you suggest?
Bemac is correct that one of the most important things is money management. Akuma99's mention of discipline is correct as well. Patience to wait on only high probability setups is critical. Don't trade everything that moves.

Now here is my advice. Forget indicators. All of them. Since we don't have volume in the forex market, that means all indicators available to us are based on price. Since price is the source of all information you should learn to interpret price action yourself. Looking at an indicator is like relying on an interpreter to tell you what price said. An interpreter speaks after the person they are interpreting, so the information you get is delayed, or lagging behind the original information. The interpreter might also fail to translate accurately what they hear. Indicators aren't always truthful either. A great place to begin studying pure price action is right here on Forex Factory in the thread entitled "James16 Chart Thread".

I also suggest you begin your demo trading on long term charts like the daily charts. As you gain experience and profitability, you can move down to the shorter term charts, such as the 4 hour or 1 hour.

To summarize:

Discipline: You must follow the rules of your trading method consistently over the long term in order for the statistical edge to manifest itself.

Patience: Wait only for the best possible trade setups. Think of a sniper's rifle instead of a shotgun.

Money Management: When you are first learning, use very small position sizes. If you can't make money trading one lot, then putting more than one lot on your trade is not going to help. It will only deplete your account faster.

Indicators: Forget about all of them. I only use the following on my charts:

Support and Resistance Lines
Trend Lines
Pivot Levels
Fibonacci Retracement Levels
Moving Averages (Yes, I realize that some people consider moving averages to be an indicator. I do not.)

Please post often and ask as many questions as you want. We are here to help, and we enjoy doing so. You will find that there are different opinions represented in this forum. Weigh them all and find the one's that make the most sense to you.

Dial
sxaxlxvxaxtxixoxnxbxyxgxrxaxcxexdxoxtxoxrxgx
  • #10
  • Feb 5, 2006 2:02am Feb 5, 2006 2:02am
Great post diallist, and you certainly speak a lot of sense, I will add only one thing in terms of indicators, I, like yourself use very little indicators, not even MA (whether they are an indicator really depends on what you use them for), and most recently I trade naked, i.e. none at all.

The only indicator type I consider valid, is one that measure volatility, the premise of "the quiet before the storm" applies every day to the fx markets, true you can gain this by price action but an indicator like the bollinger squeeze can make it quick and easy to reference.

I personally do not trade with it as my system doesn't take volatility into account at the moment, but if you insist on using indicators, then that is the only one I would recommend.
You can quit and they won't care, but you will always know.
  • #11
  • Feb 5, 2006 2:22am Feb 5, 2006 2:22am
Quoting howtotradeforex
Don't put any real money into the market until you have a proven track record on your demo. What's a proven track record? Well, that can be different for everyone, but you should show consistent profits trade after trade. If you think you can just start trading and make instant money, the market will chew you up and spit you out, at least that's what it did to me. All my fault for not doing all of the things that the pros told me to do. I don't mean to discourage you or anyone that's just starting out, but just a free warning: Don't use real money for as long as you can stand it, then wait a few more days.
Mark
You are right. I have thought that I will make money on real account, but I was mistaken. In this moment I can make a lot of money in demo and also in real account. I was making a mistake because I wanted instant results. The market is cruel.
  • #12
  • Feb 5, 2006 4:51pm Feb 5, 2006 4:51pm
Thank you again..

I will keep practicing demo account until found a system fits my personality, and I will also work really hard areas of discipline, planning, controlling my emotion, money management. I am willing invest 3yrs of my time or more.

My first mission is to find a system.

Could anyone help me find a system that I can easily copy?

Any advice how trade wihout emotion?

Just wondering having rules and plan before trading helps to reduce feeling of emotion.
  • #13
  • Feb 5, 2006 7:59pm Feb 5, 2006 7:59pm
1. Choose one or two currency pairs to focus on trading.
Each currency pair has different characteristics and the less currency pairs you trade, the better chance you will have of mastering a particular pair.
2. Study two higher and two lower time frames of your charts for about 20 minutes between the hours of 8 PM and 12 midnight.
We recommend the 1 hour, 3 hour, 8 hour and one day charts. Make your prediction on which direction you think the market is going move based on levels of support, resistance, trend direction. Often, you will get mixed messages from the various time frames. The more the charts are in agreement with each other, the better probability you have of picking the correct trade direction. The lower time frame charts (1 and 3 hours) are good for predicting short term moves. However, the higher time frame charts (8 hours and Daily charts) typically will overpower the smaller time frame charts so it is usually best to go in the direction of the higher time frame charts. Although, it is ok to be undecided on your trade direction. On these days, its best to just sit on the sidelines and not place a trade. Knowing when not to trade is an important part of becoming a good trader.
3. Locate potential support and resistance levels.
Support is a price level at which a currency stops going down. Resistance is a level at which price stops rising. Support and resistance levels are important day trading technical analysis elements you will need if you want to be on the right side of the market. If you can learn to identify strong support resistance levels on your charts while trading, you will know where to jump in with the majority of the market force behind you. ProSignal will provide you with daily support and resistance levels based on our own analysis along with screen shots of our charts to give you a better visual of what we're looking at. However, we also recommend that you perform your own technical analysis prior to executing any trades.
4. Look for trades in which it appears that you can make more than what you are risking.
For example, if you are considering buying (going long) and price is 20 pips above a support level and 150 pips below a resistance level, then you have the ability to make at least 2 times what you are risking. If your average win is considerably larger than your average loss, you only need to be 50% accurate in your trading to be a very profitable trader.
5. Place your trades.
Once you have found a trade that meets your risk/ratio requirements, enter your trade then place your stop-loss and limit order (if applicable) and then walk away!!! Not watching the market is often one of best ways to trade because it eliminates all emotions of fear, hope greed. If there are no available trades that meet the above criteria, you can either place an entry order near a support or resistance level or simply pass on trading for that night.
6. Setting Your Stop and Limits.
A Stop-loss is a predetermined level at which a trade will close that is designed primarily to stop the losses on a failed trade. A limit is a predetermined level at which a trade will close that is designed take & protect the profit. If you are entering a Buy position (going long), place your stop-loss order about 30 pips below the support level and place your limit order about 20 pips below the resistance level. If you are entering a Sell position (going short), place your stop-loss about 30 pips above the resistance level and place your limit order (profit target) about 20 pips above the support level.
7. Study the charts after each trade and keep a log.
Take notes recording whatever you are doing right and wrong with your trading, as well as any observations you have made of the markets
8. Patience and consistency is your best approach to making money.
Every tool you use - be it an automated alert, a technical indicator, Fibonacci lines, market news or a new "approach" - requires time to learn its value and limitations. During this learning period, it is important to evaluate, adapt and incorporate the tool into your own personalize marketing strategy.
  • #14
  • Edited 9:59pm Feb 5, 2006 9:10pm | Edited 9:59pm
First of all, I suggest you check out the forum here:
http://www.forexfactory.com/forexforum/forumdisplay.php?f=56

This one post by dial helped me a lot..
http://www.forexfactory.com/forexforum/showthread.php?t=3696

Quoting SurfingWave
Thank you again..

I will keep practicing demo account until found a system fits my personality, and I will also work really hard areas of discipline, planning, controlling my emotion, money management. I am willing invest 3yrs of my time or more.
Its good that you are looking at studying trading in 3 yrs time.
I am also looking at it from that perspective..
By that, somehow, I think you have a gauge of how hard it is going to be in this business.. This way, you are somehow managing your expectations..

There are benefits in demoing and in trading live.. In my opinion, I will trade demo.. And trade it as best as you can as if it was real money..

Quote
My first mission is to find a system.

Could anyone help me find a system that I can easily copy?

sample systems are given in the forum I gave above:
http://www.forexfactory.com/forexfor...ead.php?t=3689

Quote
Any advice how trade wihout emotion?

Just wondering having rules and plan before trading helps to reduce feeling of emotion.

Hmmm... How to trade without emotions? I'm still on this stage..
Well, yes, trading with rules will reduce, if not totally eradicate, emotions that's vey susceptible when trading..
Coming up with those rules, in my part, is where I'm currently also at.

For miscellaneous advice:
You have to have someone willing to guide you in this business..
I've been receiving a lot of that here in Forex Factory.. So just stick around and read all that you can..

I so badly want to give you the best advice, but as of the moment, I can't really organize my thoughts yet coz a lot is screaming in my head right now.. Maybe because of all the experience I had with trading and just want to tell you to avoid all of them... However, I greatly learned from these experiences and I think it will be better if you experienced them yourself..
  • #15
  • Feb 6, 2006 4:29pm Feb 6, 2006 4:29pm
Thank you guys very helpful.

It is true I'm not buying currency? I am buying people emotion? Someone told me. I trade people fear ang greed if I know the emotion working right now. there is a higher chance my system will works and profits. Anyone agrees this statement?

I'm looking three time frame last night Euro/usd weeky is a downtrend I saw it bounce off the resistance level, daily and hourly too. The three time frame agrees this is high probability setup?

What are the crateria for a valid down or up trend?

Thanks Pat.
  • #16
  • Aug 6, 2013 6:15am Aug 6, 2013 6:15am
Quoting diallist
{quote}Bemac is correct that one of the most important things is money management. Akuma99's mention of discipline is correct as well. Patience to wait on only high probability setups is critical. Don't trade everything that moves. Now here is my advice. Forget indicators. All of them. Since we don't have volume in the forex market, that means all indicators available to us are based on price. Since price is the source of all information you should learn to interpret price action yourself. Looking at an indicator is like relying on an interpreter...


agreed::::::

Discipline: You must follow the rules of your trading method consistently over the long term in order for the statistical edge to manifest itself.

Patience: Wait only for the best possible trade setups. Think of a sniper's rifle instead of a shotgun.

Money Management: When you are first learning, use very small position sizes. If you can't make money trading one lot, then putting more than one lot on your trade is not going to help. It will only deplete your account faster.
if there is something you should keep secret,simply just save it,, so, just
  • #17
  • Aug 7, 2013 8:29am Aug 7, 2013 8:29am
1) First learn forex trading basics, technical and fundamental analysis, usage of indicators, expert advisors etc.
2) Plan your trading system and strategies
3) Follow forex trading experts
4) Try them on demo first until you find them fit for you
5) Sufficient money to take positions
6) Disciplined trading and not to trade on emotions.
7) Proper risk and money management

And yes,,, learning never ends.. keep learning,, keep updating... HAPPY TRADING....
  • #18
  • Last Post: Aug 7, 2013 8:54am Aug 7, 2013 8:54am
Skills: they have all been mention I guess. :nerd:

Habit: Never listen to the so called profitable wannabe giving trillions of advice. oppss I just insulted all of them
"I made money every time you place your Stop loss too close to ME"
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