Why isn't trading as easy as this? | Forex Factory

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Why isn't trading as easy as this?

  • #1
  • First Post: Edited 7:39am Apr 20, 2011 6:23am | Edited 7:39am
Hi Everybody,
There is a flash game about trading here:
http://www.fontsviewer.com/forex/forex01.html
Unfortunatelly you can only buy (and then sell) here, you cannot go short.
I think this game is pretty interesting, because you can easily win in the long term. Just close the losses and let the winners run. Very simple.
So if trading really is that simple, why do we need so many indicators, systems, etc?
This game proves me, that trading is not about technical skill, fundamental skill, but mainly about psychology.
Finally you can influence two things: your risk and yourself (your mental state).
  • #2
  • Apr 21, 2011 3:09pm Apr 21, 2011 3:09pm
Thanks that was cool.
  • #3
  • Apr 21, 2011 3:26pm Apr 21, 2011 3:26pm
It's about a complete system and it's a package deal. System meaning the following parts together:

1) Method with an Edge
2) Money Management
3) Psychology

Anyone of those items missing from your system and you fail.
Don't wish it were easier, wish you were better. ~ Jim Rohn
  • #4
  • Apr 21, 2011 3:27pm Apr 21, 2011 3:27pm
Yes, it would help if the market moved in algorithms, but that doesn't prove that systems are worthless. The way that game reacts is NOTHING, NOTHING, NOTHING at all like trading. You don't place a trade and then the market price revolves around your specific trade. "Oh no, Briian went long with a standard lot size! Quick, make the market bearish!"

You should really rethink the logic on that.
  • #5
  • Apr 21, 2011 3:30pm Apr 21, 2011 3:30pm
Hmmmm....if prices moved this quickly. It would probably be a lot easier to trade. It tends to wear on you mentally and physically when you watch your position go against you for 10 straight hours. The mindspeak gets very, very loud causing you to not act in your best interest. It takes a lot of experience to withstand 10 hours of torture like that (assuming u r trading using proper money management)..
  • #6
  • Apr 21, 2011 3:46pm Apr 21, 2011 3:46pm
Quoting Troikaone1
Hmmmm....if prices moved this quickly. It would probably be a lot easier to trade. It tends to wear on you mentally and physically when you watch your position go against you for 10 straight hours. The mindspeak gets very, very loud causing you to not act in your best interest. It takes a lot of experience to withstand 10 hours of torture like that (assuming u r trading using proper money management)..
i agree, psychological easiest is scalping
Invincibility lies in the defence, the possibility of victory in the attack
  • #7
  • Apr 21, 2011 3:53pm Apr 21, 2011 3:53pm
Quoting Briian
Hi Everybody,
There is a flash game about trading here:
http://www.fontsviewer.com/forex/forex01.html
Unfortunatelly you can only buy (and then sell) here, you cannot go short.
I think this game is pretty interesting, because you can easily win in the long term. Just close the losses and let the winners run. Very simple.
So if trading really is that simple, why do we need so many indicators, systems, etc?
This game proves me, that trading is not about technical skill, fundamental skill, but mainly about psychology.
Finally you...
Trading isn't that simple. The price can decrease each time you place a long trade, which forces you to close, and this slowly whittle away your account balance. The market can do anything.
Living the adventure in my head.
  • #8
  • Apr 21, 2011 3:54pm Apr 21, 2011 3:54pm
Quoting silverheat
i agree, psychological easiest is scalping
I suppose if you trade the lower timeframes you can scalp all day and mimic the sensation of a fast moving market...more power to those who do that...I trade the higher timeframes myself. You have to be nimble and self assured to trade the lower timeframes...I don't have the skillset to do that at the moment.
  • #9
  • Apr 21, 2011 4:05pm Apr 21, 2011 4:05pm
Quoting Briian
This game proves me, that trading is not about technical skill, fundamental skill,
but mainly about psychology.
Finally you can influence two things: your risk and yourself (your mental state).
Your risk management can be perfect and your mental state can be that of a zen master
but if you are missing this...

Quoting LasVahGoose
1) Method with an Edge
...you are destined for defeat.

Really "good" edges can overcome less than perfect risk controls and mediocre psychology,
but never the other way around.

Unfortunately, we have MT4 and some MAs, some stochastics, an oscillator, some candles,
and a trend that "give" us our edge...supposedly. (sarcasm)
I wish it were so easy. I'd be rich by now.
  • #10
  • Apr 21, 2011 4:33pm Apr 21, 2011 4:33pm
Quoting Troikaone1
I suppose if you trade the lower timeframes you can scalp all day and mimic the sensation of a fast moving market...more power to those who do that...I trade the higher timeframes myself. You have to be nimble and self assured to trade the lower timeframes...I don't have the skillset to do that at the moment.
each has its pros and cons, from my experience i can say i find trading higher tfs mentally draining, like you said, consider a four hour entry (breakout pullback for instance), price hovers for two days around your entry going nowhere, then it goes up 200 back 100, up 100 back 150, after another two days finally it takes off, you are now 500 in the green, then it needs just a crazy session to take back 350 and finally takes off straight for another 7-800, i find it very hard to withstand all the temptations to at least partially take profit somewhere, but it is very lucrative, especially if you can manage to add on the pullbacks

on the other hand, when you scalp you have to stay sharp for when you are in front of the screen, can't let anything distract you, a lot of dead time waiting, but once in the trade you have to act fast, there is no room for digressions, either you win or lose, and you know it immediately, one trade doesn't stand out, it's more a matter of staying focused, you can trade for 3 hours and take the day off, but you have higher costs of time spent, spread, commission and you need to cut your profits

can't say one is better over the other, it depends on the personality and on the market structure at that time, like Jules said to The Wolf in Pulp Fiction: don't do shit unless ...
Invincibility lies in the defence, the possibility of victory in the attack
  • #11
  • Apr 21, 2011 4:39pm Apr 21, 2011 4:39pm
I agree that an edge is highly important.....but for a lot of traders; it takes years to find what your edge is. 99% of most people will never find their edge unless they have the proper mental focus, and money management.

Now once you find your edge you still have to constantly maintain your proper mental focus and not drift off into making bad decisions.

In summary, you have to be mentally strong to endure "years" of nonprofitability and you have to be mentally strong once you become consistently profitable.
  • #12
  • Apr 24, 2012 1:24am Apr 24, 2012 1:24am
This game proves me, that trade management is the key in trading.
  • #13
  • Apr 24, 2012 2:40am Apr 24, 2012 2:40am
Quoting LasVahGoose
It's about a complete system and it's a package deal. System meaning the following parts together:

1) Method with an Edge
2) Money Management
3) Psychology

Anyone of those items missing from your system and you fail.
  • #14
  • Apr 24, 2012 6:17am Apr 24, 2012 6:17am
Quoting Briian
Hi Everybody,
There is a flash game about trading here:
http://www.fontsviewer.com/forex/forex01.html
Unfortunatelly you can only buy (and then sell) here, you cannot go short.
I think this game is pretty interesting, because you can easily win in the long term. Just close the losses and let the winners run. Very simple.
So if trading really is that simple, why do we need so many indicators, systems, etc?
This game proves me, that trading is not about technical skill, fundamental skill, but mainly about psychology.
Finally you...
...there is no transaction cost.
  • #15
  • Apr 24, 2012 8:08am Apr 24, 2012 8:08am
Quoting ForexQuant
...there is no transaction cost.
On higher timeframes the transaction costs are almost negligible.
  • #16
  • Last Post: Apr 24, 2012 8:16am Apr 24, 2012 8:16am
Quoting Briian
On higher timeframes the transaction costs are almost negligible.
not entirely true.
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