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Ridiculous Trading Myths

  • #21
  • Nov 5, 2010 11:01am Nov 5, 2010 11:01am
Quoting >Apocalypto<
another one for you all.

2 day, 5k a pop trading workshops with self confessed gurus will give you all you need to make millions upon millions trading the markets!!!!
(there's no hidden question is this one I swear! )
I think we have a winner... lol

Amazing people dont stop to think... Hang on if this guy can teach me to print money, 1) Why is he going to sell it to me and 2) Why does he want my $5000

Zero Sum
Time hides Nothing
  • #22
  • Nov 5, 2010 11:03am Nov 5, 2010 11:03am


Quoting CindyXXXX
he actually treats it like a trader would the market
forget about tomorrow, just steal away into the night
  • #23
  • Nov 5, 2010 11:04am Nov 5, 2010 11:04am
Quoting CindyXXXX
Theres a guy in my home town who is a multi millionaire worth something like 400 million and gues what he does?

He bets on the horses. This isnt your regular pro punter he actually treats it like a trader would the market where he has private investors who fund his capital and then he goes about earning them areturn

How does he do it?

He doesnt back the horse he thinks is going to win he goes for the trifectors whereby if you guess 1'st, 2'nd and 3rd place correctly you win your bet.

You can imagine the odds on these bets as they are very...
that is a great reply Cindy, and gets me really thinking about a few opened ended questions I have right now, regarding certain parts on my trading.

cheers!!!

have a great weekend.
  • #24
  • Nov 5, 2010 11:09am Nov 5, 2010 11:09am
Quoting spekitox
Might just add IMO this guy is not a gambler

Quoting >Apocalypto<
that is a great reply Cindy, and gets me really thinking about a few opened ended questions I have right now, regarding certain parts on my trading.

cheers!!!

have a great weekend.
Cheers you have a good one too
Time hides Nothing
  • #25
  • Nov 5, 2010 11:11am Nov 5, 2010 11:11am
Quoting CindyXXXX
Theres a guy in my home town who is a multi millionaire worth something like 400 million and gues what he does?

He bets on the horses.
Horses in Tonga....
  • #26
  • Nov 5, 2010 11:14am Nov 5, 2010 11:14am
Quoting Slack
Horses in Tonga....
HA , well if it helps his name is David Walsh... That might give away my true location but I can live with that, only narrows it down to 500,000 people lol
Time hides Nothing
  • #27
  • Nov 5, 2010 11:16am Nov 5, 2010 11:16am
Quoting >Apocalypto<
you can be profitable with only 2 wins in 10 trades. for me this is myth.... the potential psychological damage of 8 straight losses and then to turn around and make two more trades and hold them both long enough to make back all the losses with some interest would be a massive mental challenge. (8L -2W is just an example there are many more scenarios to mix the wins with the losses. Hope you all can see the point being made)

for short term intraday traders hard hard hard...... for 10 trades made over a month or or more maybe do able, thoughts...
It is not just myth. It is pure bullshit!

For any business to succeed you must at least have a profitable end of week . If there is a chance that you could have a three week in a row losses and only a fourth week winning it is even worse. I cannot think of finding myself in such a bussiness. If i have 4 loosing days and on friday make profit but just cover my earlier losses or just manage to make a tiny profit for the week i still consider the week as a loss .Profit and time put in to generate that profit is key for success. Consistant profits either daily or weekly is called success. Anything else for a day trader with a small account is a total waste of time.
So therefore 8 losses and two wins is in my books for someone who is not profit minded.
Go find something else to do with your valuable time if you have a chance of 8 losses in a row or better find another method.

If you come back with the same money management after a loss, with the same strategy...... it is highly likely that you will end up losing your acc very fast.

No athlete or sporting team comes back after a losing game or string of losses with the same tactics or approach. Forex is nothing different from that. You have to adjust after each loss.

Educational material teaches you to sit aside after a string of losses. Wrong!!!!!

You only have to adjust your winning tactics so that the odds are more in your favour when you put on your next trade.
Never Ever Give Up!
  • #28
  • Nov 5, 2010 11:24am Nov 5, 2010 11:24am
Quoting Cobra
It is not just myth. It is pure bullshit!

For any business to succeed you must at least have a profitable end of week . If there is a chance that you could have a three week in a row losses and only a fourth week winning it is even worse. I cannot think of finding myself in such a bussiness. If i have 4 loosing days and on friday make profit but just cover my earlier losses or just manage to make a tiny profit for the week i still consider the week as a loss .Profit and time put in to generate that profit is key for success. Consistant profits...
For you this maybe 100% correct but will what you're saying be the same for everyone? I doubt that. Depends on many factors, TF, Strategy, Bank Roll, Risk level, but the main one is strategy.

Without reapeting everything I just said above I'm just going to agree to disagree.

But personally Im with you, I prefer a higher win rate than loss rate. Its just how I trade. Just saying that just because this is how we do it, or aim to do it, does not mean someone could be any less successful taking the other road.

With taht said, do you know every profitable market strategy there is to know?

Scalping, trend trading, swing trading, hedging, arbitrage, whatever... I dont and I doubt you do either. Its wrong to assume something wont work in the markets because everything does and everything doesnt, the only difference is how you use this. IMO of course
Time hides Nothing
  • #29
  • Nov 5, 2010 11:34am Nov 5, 2010 11:34am
Quoting CindyXXXX
HA , well if it helps his name is David Walsh... That might give away my true location but I can live with that, only narrows it down to 500,000 people lol
Don't blow the fantasy. It's another 2 days till the markets reopen!

http://cache4.asset-cache.net/xc/833...BA0AC4A4CA7C32
  • #30
  • Nov 5, 2010 11:38am Nov 5, 2010 11:38am
I mean no disrespect to nobody and their methods.

I am a daytrader with daily profit goals. I make a living from my fx trading and therefore it is important to make daily profits.
Every type of trader therefore for himself....

All i am saying is to have eg. two losing weeks followed by two winning weeks resulting in break even at month end or with a small not livable profit does not work in my books.

I have said it elsewhere that if you are in fx for 10% acc growth per year, you are probably in the wrong bussiness. You will even be lucky to achieve 10% a year with 8 losses and 2 wins per week. Not achievable in my opinion. not the type of trader i wanna be.

Respect to those who differ from me.
Never Ever Give Up!
  • #31
  • Nov 5, 2010 11:42am Nov 5, 2010 11:42am
Quoting Cobra
I mean no disrespect to nobody and their methods.

I am a daytrader with daily profit goals. I make a living from my fx trading and therefore it is important to make daily profits.
Every type of trader therefore for himself....

All i am saying is to have eg. two losing weeks followed by two winning weeks resulting in break even at month end or with a small not livable profit does not work in my books.

I have said it elsewhere that if you are in fx for 10% acc growth per year, you are probably in the wrong bussiness. You will even be lucky...
Not to take all this to heart, this is just myth busting >>>>>> to discussion on the myth posted... but i do agree with your post. if you're not making more then bank interest per year at the end of it all (open ended everyone takes different amount of time to get profitable, that's if they do)... then is trading with all its risks really worth while for you.

nice add on

good trading to u
  • #32
  • Nov 5, 2010 11:47am Nov 5, 2010 11:47am
No disrespect to anybody on here but in my opinion, there is way too much negative energy about the whole trend concept. I trade forex for a living and all I do is trade trends and ride them till they buck me. The RR is great and you don't have to trade all that much. It is true that trends only develop 25-30% of the time but if you look at 25 currency pairs, something is always going to give you pips. I average around 4000 pips a month on about 10-15 trades a month. It is low maintenance. If a person does not know what a trend is, they should look to invest somewhere else. Just my thoughts
  • #33
  • Nov 5, 2010 11:52am Nov 5, 2010 11:52am
Quoting Cobra
I mean no disrespect to nobody and their methods.

I am a daytrader with daily profit goals. I make a living from my fx trading and therefore it is important to make daily profits.
Every type of trader therefore for himself....

All i am saying is to have eg. two losing weeks followed by two winning weeks resulting in break even at month end or with a small not livable profit does not work in my books.

I have said it elsewhere that if you are in fx for 10% acc growth per year, you are probably in the wrong bussiness. You will even be lucky...
AN EXAMPLE:

At the start of each quarter, usually over the first 2 weeks of that quarter, money piles in on an individual price. More time then not the movement away from this price sets the trend for the next 3 months.

If you could get in the right direction off that price ONCE, how many losing trades would you be willing to take to do it?

Intraday, the same thing happens on a smaller scale.

I will leave it at that
Time hides Nothing
  • #34
  • Nov 5, 2010 11:53am Nov 5, 2010 11:53am
Quoting brenzaj42
It is true that trends only develop 25-30% of the time
What method/algorithm did you use to come up with this number?
  • #35
  • Nov 5, 2010 11:55am Nov 5, 2010 11:55am
Quoting brenzaj42
No disrespect to anybody on here but in my opinion, there is way too much negative energy about the whole trend concept. I trade forex for a living and all I do is trade trends and ride them till they buck me. The RR is great and you don't have to trade all that much. It is true that trends only develop 25-30% of the time but if you look at 25 currency pairs, something is always going to give you pips. I average around 4000 pips a month on about 10-15 trades a month. It is low maintenance. If a person does not know what a trend is, they should look...
Best post in the thread so far, IMO...... although the handsome looking animal in post #29 ranks a close second.
  • #36
  • Nov 5, 2010 11:56am Nov 5, 2010 11:56am
Quoting Slack
Don't blow the fantasy. It's another 2 days till the markets reopen!

http://cache4.asset-cache.net/xc/833...BA0AC4A4CA7C32
ahaha I cant see your pic but Im guessing its a hansome looking animal of some sort!
Time hides Nothing
  • #37
  • Nov 5, 2010 12:00pm Nov 5, 2010 12:00pm
I did not use any method/algorithm. I trade midterm trends(daily charts) and if you simply look at the charts you can clearly see this. I have my system to get in and out. I check the charts once a day for about 20 minutes and I am done. I don't want to say it is easy but it sure ain't that hard. I think people try to over complicate things.
  • #38
  • Nov 5, 2010 12:06pm Nov 5, 2010 12:06pm
Quoting CindyXXXX
ahaha I cant see your pic but Im guessing its a hansome looking animal of some sort!
So that's a pic of horse racing in Tonga? Shouldn't the jockey be carrying a whip? Or is that just another myth?
  • #39
  • Nov 5, 2010 12:14pm Nov 5, 2010 12:14pm
Quoting hanover
So that's a pic of horse racing in Tonga? Shouldn't the jockey be carrying a whip? Or is that just another myth?
in Tonga, i/we is/are the whip/s!
  • #40
  • Nov 5, 2010 12:14pm Nov 5, 2010 12:14pm
Quoting brenzaj42
I did not use any method/algorithm. I trade midterm trends(daily charts) and if you simply look at the charts you can clearly see this. I have my system to get in and out. I check the charts once a day for about 20 minutes and I am done. I don't want to say it is easy but it sure ain't that hard. I think people try to over complicate things.
That is impressive - I certainly can't look at the charts and clearly see that trends develop 25-30% of the time.

Some of it certainly has to do with how one interprets price movements - how one defines "trend" and, in this case, how one defines "trends develop". Some follow the subjective route, where others are more objective with their definitions.

If I have learned one thing in forex, it is that there are many different ways to skin a cat (or to get skinned)!!!!
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