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Ridiculous Trading Myths

  • #61
  • Nov 5, 2010 7:50pm Nov 5, 2010 7:50pm
Now this is the BIGGEST myth of them all. I, like many reading this thread, have spent lotsa bucks, sheckles, rupies, etc., thinking that someone can wave a magic wand and "Voila" you're a "Trader Extraordinaire". Uh-uh baby! You gotta put in the time and effort. It takes 10,000 hours, ten years to achieve expert status. (See Malcolm Gladwell's book, 'Outliers'). I currently am watching 4 screens when I trade (I still feel I'm missing alot) to try to get my 10,000 hours done, after only maybe only, sat 9,000 hours.
Without question the best 4X stuff I've found has been free and right here on FF.

Please Please checkout these threads (Not mine, although I do participate) here on Forex Factory.
• Choros - Also called the "Dance"
• Ken's EO (He has a pdf download he call's "Flash Cards". These are the Forex equivalent to the 10 commandments in easy to follow form, lotsa pics & arrows [Especially for me, and all of my A.D.D. brethren. and Sistren]).

So please use your money for your account and not for some $5,000 weekend with the guru of the month.

"A good plan is like a road map: it shows the final destination and usually the best way to get there." ~ H. Stanley Judd - Author
  • #62
  • Nov 5, 2010 8:41pm Nov 5, 2010 8:41pm
Quoting MikeTye
87% of statistics on the internet are made up on the spot
Perhaps the percentage just increased to 87.1%?
  • #63
  • Nov 6, 2010 2:44am Nov 6, 2010 2:44am
Quoting diamonddbw
It takes 10,000 hours
I agree to this, that it requires 10,000 hours to become an expert.

But it also goes far deeper than that. I'm sure most of us here have 10,000hrs of typing experience, yet not all of us types at >60wpm. Most have have been typing for more than 10 years and have not increase their typing speed in the last 10 years. It's also no different from someone who has an accent and spoke English for years without ever losing their native accent.

The difference between an Amateur and a Professional is that a Professional has improved after 10,000hrs of experience. An Amateur will not have improved much after 10,000hrs of experience.

========================
Here is a myth:
"I will make money in FOREX."

To the 90% of people, this will remain a myth. To the rest, this will become a reality.
  • #64
  • Nov 6, 2010 3:08am Nov 6, 2010 3:08am
Many current poker pros have achieved "expert" status in far less than 10,000 hours. Some would claim that the 10,000 hours was achieved through multitabling, but then that logic would also apply to traders watching multiple markets. Either way, expertise has been gained in under 10,000 hours of screentime, which may be a few years, or a lifetime, depending on the timeframe traded.

The 10,000 hour rule shouldn't be taken literally, especially since it seems to confuse many people (it's not just a matter of time, and it's not 10,000 to simply become profitable!). The value is in the realisation that a lot of serious effort is needed to develop great skill, if we're even capable of it.
  • #65
  • Nov 6, 2010 3:31am Nov 6, 2010 3:31am
Quoting CrucialPoint
The difference between an Amateur and a Professional is that a Professional has improved after 10,000hrs of experience. An Amateur will not have improved much after 10,000hrs of experience.
The difference is that someone can do anything for 10,000 hours and not become very good at it. They may become competent, but that's as far as they go.

To become expert at anything in this world, you need to spend 10,000 hours practicing correctly and learning from that practice. Anyone who plays an instrument should know what I'm talking about.

See Jamey Andreas, a professional guitarist and teacher.
  • #66
  • Nov 6, 2010 7:08am Nov 6, 2010 7:08am
Still a lot of negative energy on this post about trading the forex. I became a full time trader after 2 months on a demo account and 1 month on a live account. Looking back, the secret was not knowing too much. Right out of college, I obtained a sales position and did very well and the secret was not knowing too much. In other words, I did not know how often I was supposed to get rejected so I just did it and had great success. I compare trading the forex market to that experience. I learned a way to trade and just did it without thinking too much and I have never looked back. As with anyone who works at a company for many years, they are going to have a certain level of cynicism and that greatly affects your trading. Ride trends on whatever time frame you like, I prefer daily charts. More pips+less work=happy trader.
  • #67
  • Edited 7:50am Nov 6, 2010 7:44am | Edited 7:50am
Quoting brenzaj42
I became a full time trader after 2 months on a demo account and 1 month on a live account.
With all good intentions...
May god have mercy on your soul

Can I ask, how long have you been trading full time?
  • #68
  • Nov 6, 2010 7:48am Nov 6, 2010 7:48am
I think the previous post was referring to me but I forgot to mention I have been doing this for 5 years. I have been successful throughout those five years as this is how I make my living.
  • #69
  • Nov 6, 2010 7:55am Nov 6, 2010 7:55am
Quoting brenzaj42
I think the previous post was referring to me but I forgot to mention I have been doing this for 5 years. I have been successful throughout those five years as this is how I make my living.
So you learned money management, trading plans, market conditions and created a profitable trading system within 3months?
  • #70
  • Nov 6, 2010 8:43am Nov 6, 2010 8:43am
Quoting CrucialPoint
So you learned money management, trading plans, market conditions and created a profitable trading system within 3months?
Its a funny thing. the first 3 months of my live trading career were profitable. I took some great trades, lost some trades as well but ended up profitable simply cause I was following a trading system I had bought and followed everything that was simply laid out including the knowledge that some trades WILL LOSE but the MOST IMPORTANT THING DO DO WAS FOLLOW THE PLAN WITH COMPLETE DICIPLINE. This worked well I had NO idea why it was working or wasnt I was simply being the robot I was told to be and I made a healthy % return on my account each week.

The trouble started when I began thinking about it.... and trying to find a BETTER system or a BETTER way where I could catch those amazing moves with more consistancy and not take those inconvienient losses.

So after 2 years of trading I was less profitable than I had been in the first 2 months. Ironic really

People tend to go and human all over stuff and make moutains out of molehills ... or try to

If I hear someone say they learnt to trade in 6 months I dont disbelieve them simply because I know its possible. I have heard many people who have done this and most of them tend to cut the BS and simply accept it for what it is and go with it.

I really think most of us here are trying to make those mountains, and this too I dont believe there is anything wrong with, it just may take some more time (if you get there that is).
Time hides Nothing
  • #71
  • Nov 6, 2010 8:46am Nov 6, 2010 8:46am
Trading myth:
There are only 3 market conditions; up, down, sideways.


There are actually 6 different market conditions... don't bother asking me. Go and search for the other 3.
  • #72
  • Nov 6, 2010 9:07am Nov 6, 2010 9:07am
Quoting CindyXXXX
Its a funny thing. the first 3 months of my live trading career were profitable. I took some great trades, lost some trades as well but ended up profitable simply cause I was following a trading system I had bought and followed everything that was simply laid out including the knowledge that some trades WILL LOSE but the MOST IMPORTANT THING DO DO WAS FOLLOW THE PLAN WITH COMPLETE DICIPLINE. This worked well I had NO idea why it was working or wasnt I was simply being the robot I was told to be and I made a healthy % return on my account each...
I'm open to what you are saying...

But...

There is a splinter in the back of my mind that if it was just simply following through with discipline, then a robot can outperform any human. Banks won't be needing anymore traders.

Even Quants admit that the financial world (and the real world) is non-linear. They admit that all equations that are programmed into computers are linear computations. And if you use a linear computation onto a non-linear world, it will eventually crash at one point.

That's why when I hear stories like that, I'm not fully convinced. Rather, I think of it as an unforeseen factor of some sort... until I can pinpoint what is that factor.

All in all, good luck to any person who travelled the same path as brenzaj42. It is a very interesting path indeed for my taste.
  • #73
  • Nov 6, 2010 9:09am Nov 6, 2010 9:09am
Quoting CrucialPoint
So you learned money management, trading plans, market conditions and created a profitable trading system within 3months?
I guess an IQ of 145 isn't enough for that... Probably more in the regions of 170.

edit: Or a monkey that wrote Iliad and the Odyssey
The nail that sticks out gets hammered back in
  • #74
  • Nov 6, 2010 9:16am Nov 6, 2010 9:16am
Quoting CrucialPoint
So you learned money management, trading plans, market conditions and created a profitable trading system within 3months?
That is the most ridiculous Trading Myths
  • #75
  • Nov 6, 2010 9:18am Nov 6, 2010 9:18am
Quoting CrucialPoint
I'm open to what you are saying...

But...

There is a splinter in the back of my mind that if it was just simply following through with discipline, then a robot can outperform any human. Banks won't be needing anymore traders.

Even Quants admit that the financial world (and the real world) is non-linear. They admit that all equations that are programmed into computers are linear computations. And if you use a linear computation onto a non-linear world, it will eventually crash at one point.

That's why when I hear stories like that, I'm not...
I would struggle to see how that robot could be acuratly programmed to identify the trends to the same effect of a human eye/brain. But I do see your point and yes inspirational (for new guys lol)

Theres also the possiblity that some are just born naturals with a specified talent inline with certain things. Albert einstein, tiger woods, bill gates, Me,, lol just joking
Time hides Nothing
  • #76
  • Nov 6, 2010 9:19am Nov 6, 2010 9:19am
Quoting Dopey
The difference is that someone can do anything for 10,000 hours and not become very good at it. They may become competent, but that's as far as they go.
To become expert at anything in this world, you need to spend 10,000 hours practicing correctly and learning from that practice. Anyone who plays an instrument should know what I'm talking about.
See Jamey Andreas, a professional guitarist and teacher.
when one is left-handed & is trying to play an instrument right-handed, & play it really well..... well, that potentially adds another 10,000hours on top of the initial 10k.

& what if u wanna play 5 - 10 instruments really well? well... more http://www.forexfactory.com/images/s...im/whew%21.gif

Quoting CrucialPoint
Trading myth:
There are only 3 market conditions; up, down, sideways.
There are actually 6 different market conditions... don't bother asking me. Go and search for the other 3. http://cdn.forexfactory.com/images/s...m/thinking.gif
the other 3 are:
fast, slow, whipsaw
  • #77
  • Nov 6, 2010 9:21am Nov 6, 2010 9:21am
Quoting supremeChaos
when one is left-handed & is trying to play an instrument right-handed, & play it really well..... well, that potentially adds another 10,000hours on top of the initial 10k.

& what if u wanna play 5 - 10 instruments really well? well... more http://www.forexfactory.com/images/s...im/whew%21.gif
haha exactly, it comes back to the person and what they are trying to achieve and how they are trying to achieve it.

The 10,000 rule is BS IMO - everyone is different.
Time hides Nothing
  • #78
  • Nov 6, 2010 9:21am Nov 6, 2010 9:21am
Quoting Noloqy
I guess an IQ of 145 isn't enough for that... Probably more in the regions of 170.
Oh its enough. You can actually grasp every concept in a month or less.

But reality trading is nowhere close to what you read in books. You can read everything and grasp the concept, but the reality of trading is totally different. And that is my point.

Can you say you have learned the lesson?
or
Can you objectively say you have learned the lesson?
  • #79
  • Nov 6, 2010 9:25am Nov 6, 2010 9:25am
Quoting supremeChaos
when one is left-handed & is trying to play an instrument right-handed, & play it really well..... well, that potentially adds another 10,000hours on top of the initial 10k.

& what if u wanna play 5 - 10 instruments really well? well... more http://www.forexfactory.com/images/s...im/whew%21.gif


the other 3 are:
fast, slow, whipsaw
the other two are :
open and closed
  • #80
  • Nov 6, 2010 9:27am Nov 6, 2010 9:27am
Quoting CrucialPoint
So you learned money management, trading plans, market conditions and created a profitable trading system within 3months?
He didn't say he was good, just successful, and even if it was skill, there's a difference between being profitable and being good. His point may just have been to say that it can be done relatively quickly. I was a better trader before I placed my first trade than for the 6 months after it.
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