Trading is a losing game!!! | Forex Factory

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Trading is a losing game!!!

  • #1
  • First Post: Edited 6:24am Nov 13, 2010 3:37am | Edited 6:24am
Today is none trading day and i try to do some brainstorming...if based on your assumption that trading is a loser game..And what should I do and dont do to survive in the market...Any ideas sharing or experience is really worth for the help..for my do's and dont

Do's
*Think about preserve
*Cut the losses short
*Improve your trading system
*do record of your trades
*review back you trades everyday or weekly
*Try to learn from other person. Because learning is a never ending process either in life or trading.

Dont
*dont think about how much to win in a trade.( cause trading is a probability game, I just take what the market give me, if I hope for too much, I will be disappoint too much)
*dont think about get rich fast
*dont hope and pray
*dont enter the market without a trading plan
*dont averaging down
*dont system hopping (try to learn from other trading system and how it can incorporate into your current system)

i will add in new do and dont from the members advice
  • #2
  • Nov 13, 2010 3:48am Nov 13, 2010 3:48am
Try to figure out what the currency market really is and what is the reason the price is moving up or down and test all the components included in your metatrader platform and don't fall for these cut your loses short bullshit.
  • #3
  • Nov 13, 2010 4:32am Nov 13, 2010 4:32am
Nice.

System hopping is great for learning, though.

One to add may be to build your trade study knowledge from the ground up -- reading bars to drawing devices to reason-filtering indicators chart, on the technical chart study; and then the other ways (fundies, order flow, high-mm / time-of-day strategy).
Apply one's personal skills to select which trade study to go with, and then -- although your third rule sound better than this -- practice that approach for x,000 hours.

I find that for some people (namely, me), learning and trading is very difficult at once, so that 'improve the trading system' may undermine the stability of the system; in this case, demo/simulator is safest for learning a new idea.

How you described mm was clever. ', let your winners run' was apparently written only for those people who read an area for signs of momentum, and not for price-trapping systems.
  • #4
  • Nov 13, 2010 6:10am Nov 13, 2010 6:10am
Quoting ha-pattern
Nice.

System hopping is great for learning, though.

One to add may be to build your trade study knowledge from the ground up -- reading bars to drawing devices to reason-filtering indicators chart, on the technical chart study; and then the other ways (fundies, order flow, high-mm / time-of-day strategy).
Apply one's personal skills to select which trade study to go with, and then -- although your third rule sound better than this -- practice that approach for x,000 hours.
yes, trading is a never ending learning process, same with our life too. And i also need to shorten the learning process. So, i try to observe what mistake ppl make and try to avoid those mistake.

Quoting ha-pattern
I find that for some people (namely, me), learning and trading is very difficult at once, so that 'improve the trading system' may undermine the stability of the system; in this case, demo/simulator is safest for learning a new idea.
yes, it is also take into consideration how the trading system will act under different kind of market situation. I really have to trade longtime enough to know my system. Right now i stress myself to keep a record of trade to review back everyday and weekly.

Quoting ha-pattern
How you described mm was clever. ', let your winners run' was apparently written only for those people who read an area for signs of momentum, and not for price-trapping systems.
yes, that is depend on different ppl take profit level.
  • #5
  • Nov 13, 2010 7:03am Nov 13, 2010 7:03am
Quoting Jarek_
Try to figure out what the currency market really is and what is the reason the price is moving up or down and test all the components included in your metatrader platform and don't fall for these cut your loses short bullshit.
you cant say that is a bullshit, that is depend on different ppl tolerance. but for me, i am trading breakout and if in certain time the price doesnt do what i wish for. so i will cut the losses, and might be after that the price will move in my way very fast and i miss it. so what, i still can live other day to trade. this is just personnel viewing. Hope i dont offend you.
  • #6
  • Edited 8:47am Nov 13, 2010 8:44am | Edited 8:47am
Quoting calvk81
you cant say that is a bullshit, that is depend on different ppl tolerance. but for me, i am trading breakout and if in certain time the price doesnt do what i wish for. so i will cut the losses, and might be after that the price will move in my way very fast and i miss it. so what, i still can live other day to trade. this is just personnel viewing. Hope i dont offend you.
Hi calvk81, English is not my first language so forgive me for any grammatical mistakes. I imagine if you stared this thread is because you are in the losing side of the market. but I have to tell you that it can be reversed, "trading is not a loser game if you know your game". you said you are trading breakouts, that is great but in my opinion there is only one way you can trade breakouts that is call ( bpc ) breakout pullback continuation, you need to way for the confirmation otherwise you be jumping into to many false breakouts. also the bpc make your stoploss way smaller, sometimes you will not get the pullback and you will miss the move but that is the insurance policy you have to pay to increase your consistency. the rest is easy always go 2 to 1 that way if you are wrong 50% of your trades you still will make money.
  • #7
  • Nov 13, 2010 11:08am Nov 13, 2010 11:08am
I remember reading the advice to stay away from systems, and to focus on what drives the market. I remember reading about money management and discipline. I read these things so often that I disregarded them, but when I finally decided that it was time to actually put them to use I was blown away.

Everyone is different, but my advice is to forget about systems and learn about supply and demand. If you're like I was a couple years ago this advice won't stick, but I thought I'd try anyway.
  • #8
  • Nov 13, 2010 11:15am Nov 13, 2010 11:15am
Quoting frankkn
I remember reading the advice to stay away from systems, and to focus on what drives the market. I remember reading about money management and discipline. I read these things so often that I disregarded them, but when I finally decided that it was time to actually put them to use I was blown away.

Everyone is different, but my advice is to forget about systems and learn about supply and demand. If you're like I was a couple years ago this advice won't stick, but I thought I'd try anyway.
Couldn't agree more!
  • #9
  • Nov 13, 2010 11:53am Nov 13, 2010 11:53am
I constantly read many people write about "learn what drives the market" and about supply and demand, but I see few actually give any good resources to get started on learning these.

Supply and demand, as a dictionary term is pretty simplistic, but is there something more to it when your trying to analyze a market like forex?

From my understanding the currency markets are typically driven by the current risk tolerance in the global economy. A good example of this is when really good news comes out of the US, the EurUsd goes up. Newbs have a hard time understanding why, but to the rest that understand risk tolerance/aversion its actually expected. Of course, there are other drivers on an individual currency as well, for instance comdolls. Global prices of a given commodity will affect these currencies. In addition, liquidity does place a part, for instance if someone, say china, were to let go of a ton of dollars, the price would fall, but then goes back to simple supply and demand.

So as a trader, what are we missing and where can you point us too? To be quit frank, telling one to learn without actually pointing them may help stroke the ego of the professor, but it does nothing for the student.
Makin my way, the only way I know how...
  • #10
  • Nov 14, 2010 3:46am Nov 14, 2010 3:46am
Quoting husky_1
I constantly read...
The currency market is a place for sellers and buyers to conduct their bussiness. Lets assume that one particular party needs to conduct out his bussiness and that is buy or sell given amount of currency at particular level but the current price is too high for him so he tries to convince the rest of the market to go lower so he can buy/sell there. He shows his intension he wants to go lower and lets say the market accepts this move and joins him, maybe someone else will make his bussiness at new price too. The price is then being advertised thru the means of technical analysis and the price moves to new level where they people make their bussiness. that move was called a trend. Now at new, desired price level they conduct their bussiness for several hours and that is generally viewed as "consolidation".
  • #11
  • Nov 14, 2010 7:18pm Nov 14, 2010 7:18pm
That information is great, and yes that is fx 101. I assume that is correct for inter-day gyrations, but is it really what moves each of the markets to significant levels?
Makin my way, the only way I know how...
  • #12
  • Nov 14, 2010 7:43pm Nov 14, 2010 7:43pm
Quoting husky_1
That information is great, and yes that is fx 101. I assume that is correct for inter-day gyrations, but is it really what moves each of the markets to significant levels?
Hey buddy,

http://www.forexfactory.com/showthread.php?t=255586

Here is a pretty good thread about supply and demand.

The only thing that can move price is imbalance of supply and demand.

There are very simple ways of identifying quality SD zones, they are outlined in the thread, enjoy.
  • #13
  • Nov 14, 2010 7:45pm Nov 14, 2010 7:45pm
http://www.fxstreet.com/search/contr...1-e9bf77216d2f

Also, please check this out. Links on the right are webinars on the topic by Sam Seiden. I know sometimes it's hard to listen to him say the same few points over and over again for a long time, and his voice isn't the prettiest either.

He does lay down some great shit though.
  • #14
  • Last Post: Nov 14, 2010 7:48pm Nov 14, 2010 7:48pm
Thanks Frankkn!
Makin my way, the only way I know how...
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