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The Newbie System (a faster way to success)

  • #1
  • First Post: May 21, 2011 9:07am May 21, 2011 9:07am
Hello,

It has been a good while since I posted on FF but I wanted to share some stuff that might actual make you a better trader faster than the average person.

I'll list a few steps to this system and try to explain why each step holds true


steps...

----------

1. Stop coming to the trading system page and trying to find a magical system you can follow to generate wealth daytrading...

Understand that most the people posting systems are new themselves and dont make any money trading Forex.. also understand some people have huge egos and want to feed there ego via the threads (they will lie and you can't trust anyone, people will act like they make money when they really don't just to feed their ego)


2. Understand most if not all indicators are worthless..

also understand that almost every indicator created pretty much measures price, time, or a combination of both.. so why have more than 1 indicators on your screen? a stochastic and a macd really measure the same thing..

you know what also measures price and time?.. a bar chart.. a candle chart.. a line chart...


3. Understand you will lose money and trades...

Everyone wants to find a system or strategy that wins 100% of the time.. 1 trade fails you they give up on that method and go looking elsewhere..

you will never win every trade.. its not winning the battles that matter its winning the war...


4. Understand Time frames.. and charts.. and bars.. etc.

have you ever considered the irrationality of buying if the next bar closes higher than the previous?

let me put it this way.. on any time frame chart.. a closing price is simply where price closed at a specific time when all millisecounds and secounds and minutes hit 00... so why would a bar closing higher or lower than a previous ever make logical since to trigger a trade?


5. This leads us to understanding how the forex market works...

is the forex market really a bar chart with a technical indicators attached?

Interbanks make up 75% of the money coming in and out of the market daily.. not individuals or hedgefunds.. and no im not even talking about the central banks...

do some research and learn the how, what, when, why, and who ...

---------



Thats all the steps i have so far, probably missed a few important ones.. but those are probably enough to get most people on the right track a few years in advance.. but more then likely if your anything like me you will be thick headed for a while not follow any of the steps above.. I know i didn't follow those steps.. it sucked


Best wishes
  • #2
  • May 21, 2011 9:46am May 21, 2011 9:46am
Quoting newyear498
Hello,

It has been a good while since I posted on FF but I wanted to share some stuff that might actual make you a better trader faster than the average person.

I'll list a few steps to this system and try to explain why each step holds true


steps...

----------

1. Stop coming to the trading system page and trying to find a magical system you can follow to generate wealth daytrading...

Understand that most the people posting systems are new themselves and dont make any money trading Forex.. also understand some people have huge...
agree with every word said,any more ?
  • #3
  • May 21, 2011 10:25am May 21, 2011 10:25am
i think its easier just to say 99% of the stuff on these forums is just garbage?
there are some gems by a very select few but there is so much drivel.
  • #4
  • May 21, 2011 10:34am May 21, 2011 10:34am
Delving through the various forums it is possible to find useful gems hidden within so much drivel.
Some indicators or combinations thereof can be useful as alerts ,but not as trading signals.
It is absolutely necesary to understand support/resistance levels , to be able to "read" the japanese candles,they are the alphabet that every trader sooner or later has to learn.
  • #5
  • May 21, 2011 10:38am May 21, 2011 10:38am
where is the system ?
  • #6
  • May 21, 2011 10:43am May 21, 2011 10:43am
I do not agree in all parts .
Sure there is a lot of trash in this Trading System Forum but i learned a lot by trying these systems and was able to build my very own System that gives me a return of 3-5 % a day . I still have my first trading account . I payed a price for learning ( losed 300$ almost all my money in that account ) . I recoverd 230$ until today .
  • #7
  • May 21, 2011 10:48am May 21, 2011 10:48am
Quoting scapler000
where is the system ?
there is no system...and this thread dont even deserves to be here...it shud be in rookie section.
Trade responsiblypatience is the key/Swing trader
  • #8
  • May 21, 2011 10:57am May 21, 2011 10:57am
Quoting Incrediblle
there is no system...and this thread dont even deserves to be here...it shud be in rookie section.
so your saying I did not lay out a systematic process that can guide someone to better there trading?

that I did not provide a set of principles or procedures to follow?
  • #9
  • May 21, 2011 11:07am May 21, 2011 11:07am
newyear498,

I couldn't agree more with you. I found that my trading really took off when I stopped trying to find the holy grail on FF.

There is a couple of things I would like to add as well.

1. Understand that its all about interest rates.

2. Psychology is the key to success. I've found that even with a good trading system, that most people aren't prepared to win.

3. As you said, most indicator are worthless, however I personally use fibonacci to buy the dips and sell the rallies in combination of bullish/bearish divergence identified with stochastics 9,3,3 to enter a trade, and I've found it to be quite accurate.
  • #10
  • May 21, 2011 11:08am May 21, 2011 11:08am
Quoting newyear498
so your saying I did not lay out a systematic process that can guide someone to better there trading?

that I did not provide a set of principles or procedures to follow?
this shud be included in a good system...

"do some research and learn the how, what, when, why, and who ..."
Trade responsiblypatience is the key/Swing trader
  • #11
  • May 21, 2011 11:08am May 21, 2011 11:08am
both of you are right.
this is not a system in a sense that it does not tell the readers what to use, when to entry and exit, money management, etcetc.

but surely it does contain steps to follow and advice to consider, so it pretty much is a system for getting better at trading and/or having a better understanding of markets. still, it's not a specific TRADING system if we compare and contrast it to for instance the THV or the flag trading or the CHOROS, etcetc.

guys, both of you are right

btw the advice is really good
  • #12
  • May 21, 2011 11:10am May 21, 2011 11:10am
When I took my first lessons it was something about price actions: when candle close...
Well, it was very hard to understand for me if there is a continuously changing number flow, why do I need to wait the next sample timing. 5min,15min, 1h,4h... but at 1 day is a big problem: have you tried to check the daily candle at an European broken and a US broker? -they candles are not the same!!! simply because they took the prices at different time.

-hard to believe for me in any system bases on " only when candle close"..
I want to buy PATIENCE
  • #13
  • May 21, 2011 11:13am May 21, 2011 11:13am
Quoting csabz90
both of you are right.
this is not a system in a sense that it does not tell the readers what to use, when to entry and exit, money management, etcetc.

but surely it does contain steps to follow and advice to consider, so it pretty much is a system for getting better at trading and/or having a better understanding of markets. still, it's not a specific TRADING system if we compare and contrast it to for instance the THV or the flag trading or the CHOROS, etcetc.

guys, both of you are right

btw the advice is really good
I'd agree with that... but more importantly


I simply did not see any posts like this on the site.. and i wanted to share some honest truth/ experience I had.. which included going from post to post watering at the mouth reading comments after comments about how great a system is.. and i never really got anywhere..

ultimately I image this post of mine is gonna get removed from this system page as its not the kinda system that usually does here..

I've also never posted to the systems forum this is the first time.. because I always found this part of the forums least informative when compared to the discussion section
  • #14
  • May 21, 2011 11:25am May 21, 2011 11:25am
Never stops. Someone comes on, makes some very good points..opinion for sure....and what do we see.. Those who come back with attitude.... This really is a problem with in the community.

Why not just welocome the person making the statements. Some of the statements will fit some, some wil not, some will agree, some will not. This person has been on for less than 2 hours... Ya gotta give them a little chance.

If they have a system or method that makes sense then great. If it is not to your liking... Then I gues your search continues.

I have been this trading game for 11 years..Blown several accounts..It has cost me a lot....But the one thing I have learned, that has me being reasonably successful now, Humility.. To give an idea a fair shake, not to pruejudge.

If you cant put your egos aside you will never get close to being successful.

Just my 3 cents
  • #15
  • May 21, 2011 11:29am May 21, 2011 11:29am
Quoting newyear498
I'd agree with that... but more importantly


I simply did not see any posts like this on the site.. and i wanted to share some honest truth/ experience I had.. which included going from post to post watering at the mouth reading comments after comments about how great a system is.. and i never really got anywhere..

ultimately I image this post of mine is gonna get removed from this system page as its not the kinda system that usually does here..

I've also never posted to the systems forum this is the first time.. because I always found...
totally understand you, thats why i said both of you are right, even though he has a point, your pieces of advice are very VERY valuable
  • #16
  • May 21, 2011 12:52pm May 21, 2011 12:52pm
Quoting matheszabi
When I took my first lessons it was something about price actions: when candle close...
Well, it was very hard to understand for me if there is a continuously changing number flow, why do I need to wait the next sample timing. 5min,15min, 1h,4h... but at 1 day is a big problem: have you tried to check the daily candle at an European broken and a US broker? -they candles are not the same!!! simply because they took the prices at different time.

-hard to believe for me in any system bases on " only when candle close"..
Hi matheszabi

Just thought that I would reply to your particular post but in actual fact this is also some advice for all the newbies out there - especially those who maybe have blown 1 or 2 trading accounts already!This from someone who has learnt forex trading at the very best school (the "School of hard knocks"!!)

Firstly you brought up an important point about different trading time zone platforms. The answer to that is that you really MUST be looking the same time zone platform as the "market movers" (big European banks, etc)! No good looking at a US timezone platform if you're trading the european session. I have 2 or 3 different time zone platforms and I mainly use the CET (central european time zone) platform when I'm trading the 4 HR because generally I find that the PRECEDING 4 hr candle is far more reliable. Ideally you need to have a EET (eastern european time zone) platform (4hr candles opening and closing an hour earlier) which can really help to cement your trading decision.

The main thing is that you DO (this especially applies to newbies) trade the higher time frames. I try to exclusively stick to the 4 hr charts. Only looking at lower time frames (mainly the 1 hr or 30m charts) to cement a trading decision. Once you've entered your trade you need to AT LEAST wait until the 4 hr candle is complete. If it's a "follow on" candle I even wait at least an hour into the new candle before checking on my trade to close it.

DO NOT TRY SCALPING - DO NOT TRY SCALPING - DO NOT TRY SCALPING!! Do you want me to tell you one more time? If you do you'll lose your shirt -
EVERY TIME.

Lastly, there are 3 "golden rules" in this game. Here they are:

1/ DO NOT OVERTRADE
2/ DO NOT OVERTRADE
3/ DO NOT OVERTRADE

Ever been to Las Vegas? If you have, you will totally understand those 3 golden rules. Believe me,if there is one BIG thing that I've learned the hard way it's that you need to spend at least 95% - 99% of your time checking out the market, making totally sure of the trend direction and the other 1% - 5% entering a winning trade. Remember, if you're trading the 4 hr charts and you only trade 1 - 3 times a week, you're looking at 150 pips on average. If you are trading a full lot - that's not too bad a weekly income for most of us!!

rgds to all

Jerry
  • #17
  • May 21, 2011 4:22pm May 21, 2011 4:22pm
funny how the truth gets battered down in to the rookie section.


Incrediblle - please direct us to an amazing trading system in the trading system section.

oh there isnt one???
  • #18
  • May 21, 2011 5:35pm May 21, 2011 5:35pm
Quoting stimpy
........please direct us to an amazing trading system in the trading system section.

oh there isnt one???
Not sure if all of these are in the Trading System section, or if they meet your standard of what constitutes "amazing", but they're as good a start as any, IMO:

http://www.forexfactory.com/showthread.php?t=245149
http://www.forexfactory.com/showthread.php?t=121761
http://www.forexfactory.com/showthread.php?t=2331
http://www.forexfactory.com/showthread.php?t=86429
http://www.forexfactory.com/showthread.php?t=241760

and then be willing to put in some serious screen time, and practise, in refining these ideas for yourself.


Or, if you're looking for something that's predominantly (dare I say it? ) indicator-based, here are three that you might like to try:

http://www.forexfactory.com/showthread.php?t=291622
http://www.forexfactory.com/showthread.php?t=127271
http://www.forexfactory.com/showthread.php?t=276813
  • #19
  • Edited May 22, 2011 1:07am May 21, 2011 6:03pm | Edited May 22, 2011 1:07am
Quoting stimpy
funny how the truth gets battered down in to the rookie section.

Incrediblle - please direct us to an amazing trading system in the trading system section.

oh there isnt one???

Friends,

There is only ONE system that works consistently for intraday trading. You HAVE to buy/sell after a retracement! Draw trendlines and buy/sell at the break of the trendline.


Rgds

Jerry
  • #20
  • May 21, 2011 6:50pm May 21, 2011 6:50pm
Quoting jmtini
There is only ONE system that works consistently for intraday trading

And just what is that, trading in hindsight?

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