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14 Year Old Forex Trader's Lessons

  • #181
  • Sep 17, 2011 6:24am Sep 17, 2011 6:24am
BP,

there's just one single reason why your dreams and ambitions won't come true: if you give up. if you don't, you'll make it. it's really that simple. but the process will not be as straightforward as you may wish right now.

One tip for you, from my own noobish experience: please don't underestimate the threat of overleveraging. Don't put your stops too near to market only to justify a bigger position size, and never ever try to revenge trade with bigger size!!!!!! Don't be such a dimwit like me: as i started out about a year ago, i've blown a $200 account to $80 in about 200 trades in 2 months.. risk was 2%, later 1% of balance based on stop loss. And revenge trading of sorts.

Then i've put that account to myfxbook to analyze what's wrong - DAMN I WAS 1600 PIPS POSITIVE.. that was a real eye opener for me, i still can't believe how dumb i was. I threw the fixed fraction risk model away and proceeded with double the smallest lot size possible (0.02) while keeping my strategy, just perfecting it.. and things have turned totally on a dime! I'm still penny account training but after some 600 trades i already know there's no way back to a complete account blowout even if there will be drawdowns; it's simply not possible


Everyone's style is different but if i should advise, here it goes:

  1. trade max. 0.02 ($2000) lots per $500 of account (even with demo!)
  2. don't change the size! never! ..until you double the account. Then, double the stake.
  3. one trade at a time until you're 100% comfortable and your equity curve shows that for at least 2 months; then you can practice adding to your profitable (!) trades
  4. know your exit; even if you don't feel comfortable with hard SL, you MUST be able to recognize an absolute invalidity of your trade idea and QUIT! Never slip into hope-and-pray mode, that's the account killer #2, right after overleveraging w/psych failure.

Listen to everything what cloggie said, that's pure gold. Check the useless thread for his yesterday posts (with charts) btw. GoldMans advice are spot on, too. But you have to develop your own attitude and approach - your own unity with the market. Belive me, that's not transferrable via text or video.

Go ahead and NEVER give up. You do have the talent, I can read it between the lines and see it in your charts. You are 10 years ahead of me in time. Don't miss this advantage i wish you the very best!

PS. try the indy below for very draft S/D estimation.. but remember it's a stupid indicator anyways (=don't get used to it), best zones are always eyeball-discovered and hand-made. But it's still an indicator that makes some sense and at least, makes you think in zones. That's good for the start and could help you with risk control, rather than relying on narrow/exact pip levels.

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  • #182
  • Sep 17, 2011 7:14am Sep 17, 2011 7:14am
We need to focus who is in the other side of the trade, we want to make sure that we are trading with people that have no idea what they are doing (we can see it by looking how price is acting), people that are just novice traders. Trading is a mind game like i said before, there are people that make money even if they don't understand SD and PA but they are not masters of this game, they can't see people behind those candles if you know what i mean.

Is that stop too near? I don't think so, all depends how you are able to read the markets.

Good luck.
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  • #183
  • Sep 17, 2011 7:47am Sep 17, 2011 7:47am
Quoting MaryJane
BP,

there's just one single reason why your dreams and ambitions won't come true: if you give up. if you don't, you'll make it. it's really that simple. but the process will not be as straightforward as you may wish right now.

One tip for you, from my own noobish experience: please don't underestimate the threat of overleveraging. Don't put your stops too near to market only to justify a bigger position size, and never ever try to revenge trade with bigger size!!!!!! Don't be such a dimwit like me: as i started out about a year ago, i've...
Thank you for your in-depth advice. I honestly have a similar mm strategy with lot sizes. Here's the big mistake when i started first live: I started wiht $300 risk capital but mini account was opened instead of micro. A static went in my head. This account is dead if i trade mini. Stupid enough, for the first trade i traded. 66 pips won. Psychology went straight for more wins, till a total of 300+ pips but in the end its gone. Even in micro i lost. I was too biased about the whole thing, and i want to start clean-sheet. Pick up the dropped stones, pick up ones ive never seen, and put them all together and make sense of them. I was here before and now i feel like im------------------->here. But i want to get------------------------------------------------------------------->here.

I realize the amount of effort it takes, the amount of time you need to invest into learning more, and the level of emotional intelligence when it comes to live trading.

Haha thank you for the indicator, but heres my chart now: see atachemnt.

I feel comfortable this way.

All i need is a girlfriend. No more girls jumping in and out. Im sure i can be more settled that way . Good for my emotions, being positive.
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Have I got something on my face, SOLDIER?
  • #184
  • Sep 17, 2011 8:24am Sep 17, 2011 8:24am
Quoting GoldMan.
We need to focus who is in the other side of the trade, we want to make sure that we are trading with people that have no idea what they are doing (we can see it by looking how price is acting), people that are just novice traders. Trading is a mind game like i said before, there are people that make money even if they don't understand SD and PA but they are not masters of this game, they can't see people behind those candles if you know what i mean.

Is that stop too near? I don't think so, all depends how you are able to read the markets.

Good...

Yeah, supply and demand. Novice traders take that 'last run' when they realize that all corps. banks, etc are going to go agains them. I saw a nice thread by survivor (i think... not sure) about how candles define the market. He actually trades based on candles. not formations. But the actual candles. Its captivating.

Low-risk, high reward this is. Entry is no problem with supply and demand. This is one of the things that i didnt find on my own. Where to exactly enter if not a zone to enter. @goldman, can you check out my chart i posted? I have somewhat firm conviction that if it breaks through the channel, (price already 'reflected' off of supply) it would go down. What do you think guys?
Have I got something on my face, SOLDIER?
  • #185
  • Sep 17, 2011 9:20am Sep 17, 2011 9:20am
Quoting bumapatria
@goldman, can you check out my chart i posted? I have somewhat firm conviction that if it breaks through the channel, (price already 'reflected' off of supply) it would go down. What do you think guys?
Weekly and H1 chart. As you can see price is having hard times breaking this demand zone that you can see in weekly chart. It is not good for swing trading right now, only for scalping.
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  • #186
  • Sep 17, 2011 10:48am Sep 17, 2011 10:48am
Quoting GoldMan.
Weekly and H1 chart. As you can see price is having hard times breaking this demand zone that you can see in weekly chart. It is not good for swing trading right now, only for scalping.
I agree. In this stage i am still a day trader. Sniping support/resistance, supply demand levels on an hourly chart. I honestly don't scalp. I don't believe that 30-70 pips are scalps no?

im just spotting supply demand, support resistance and getting ready for tommorow.
Have I got something on my face, SOLDIER?
  • #187
  • Sep 17, 2011 11:29am Sep 17, 2011 11:29am
Quoting bumapatria
I agree. In this stage i am still a day trader. Sniping support/resistance, supply demand levels on an hourly chart. I honestly don't scalp. I don't believe that 30-70 pips are scalps no?

im just spotting supply demand, support resistance and getting ready for tommorow.
Scalps may grow into day or swing trades.
It seems you only looked H1 chart and tried to find supply and demand only from there, always look supply and demand zones from larger timeframes, then you have better understanding of that pair.
  • #188
  • Sep 17, 2011 11:34am Sep 17, 2011 11:34am
Quoting GoldMan.
Scalps may grow into day or swing trades.
It seems you only looked H1 chart and tried to find supply and demand only from there, always look supply and demand zones from larger timeframes, then you have better understanding of that pair.
Is it okay to have 2 charts? One on H1, and one on weekly? one will be for day trading, the weekly would be for the swing

thanks goldman. its true that sometimes you have to look at the greater picture of what is actually happening.
Have I got something on my face, SOLDIER?
  • #189
  • Sep 17, 2011 11:40am Sep 17, 2011 11:40am
Quoting bumapatria
Is it okay to have 2 charts? One on H1, and one on weekly? one will be for day trading, the weekly would be for the swing

thanks goldman. its true that sometimes you have to look at the greater picture of what is actually happening.
No, I meant that you should place SD on weekly chart and when you have done that then you don't have to look weekly all the time (mabe 1 time in a week).
  • #190
  • Sep 18, 2011 12:18am Sep 18, 2011 12:18am
Quoting GoldMan.
No, I meant that you should place SD on weekly chart and when you have done that then you don't have to look weekly all the time (mabe 1 time in a week).

also, do you determine your main trend in weekly chart? and then you switch to 1H chart, where you trade accordingly weekly trend?
  • #191
  • Sep 18, 2011 3:40am Sep 18, 2011 3:40am
Quoting GoldMan.
No, I meant that you should place SD on weekly chart and when you have done that then you don't have to look weekly all the time (mabe 1 time in a week).
Oh okay. I'll do that.
Have I got something on my face, SOLDIER?
  • #192
  • Edited 4:34am Sep 18, 2011 4:23am | Edited 4:34am
Just learnt about swing highs, and swing lows, and bullish, bearish bias and the change, and the trigger that helps for a setup. Anyone have any tips about bias?

Now i'm trying to look at harmonic price patterns, elliot waves. Anyone know of some great books on these topics?

But i guess, one must spend enough time on one subject of price action, or whatever aspect of this business first, then move on.

Looking for more in Sam Seiden, and Nial Fuller's websites and videos.
Have I got something on my face, SOLDIER?
  • #193
  • Sep 18, 2011 8:56am Sep 18, 2011 8:56am
Does anyone have any tips about Gold and silver when trading? What are the major differences experienced when trading? Is it recommended for me? (for those who know my style)
Have I got something on my face, SOLDIER?
  • #194
  • Sep 18, 2011 10:28am Sep 18, 2011 10:28am
Quoting PPKpe
also, do you determine your main trend in weekly chart? and then you switch to 1H chart, where you trade accordingly weekly trend?
It is not that important what the trend is, i don’t really look for it. I always try to find supply and demand zones from weekly chart because in bigger timeframes SD are usually pretty strong. If i have found them from weekly chart then i usually look and trade 1H and 15 min timeframes and search SD from there.

Quoting bumapatria
Does anyone have any tips about Gold and silver when trading? What are the major differences experienced when trading? Is it recommended for me? (for those who know my style)
It is not important what are you trading, people are still behind of those candle sticks and same rules apply (SD, SR, PA etc).
  • #195
  • Sep 18, 2011 10:52am Sep 18, 2011 10:52am
Quoting GoldMan.
It is not that important what the trend is, i don’t really look for it. I always try to find supply and demand zones from weekly chart because in bigger timeframes SD are usually pretty strong. If i have found them from weekly chart then i usually look and trade 1H and 15 min timeframes and search SD from there.



It is not important what are you trading, people are still behind of those candle sticks and same rules apply (SD, SR, PA etc).
Wow.. okay goldman thanks. Im going to try gold and silver. Im seeing good setups.
Have I got something on my face, SOLDIER?
  • #196
  • Sep 18, 2011 12:56pm Sep 18, 2011 12:56pm
All the best yo. Im 6 years older to you. Started WATCHING the markets when I was 12. Started trading better than my dad when I was 14. Then it was all crap and I lost a lot of money. My uncle was fond of me though and I made him a good $50K(no kidding) in 2 weeks back in 2008 Gold rally. Lost it all when the gold market broke down. Winning took me 2 weeks and losing took 2 days!

So be careful with this Gold market. If you are a long term trader in Gold with deep pockets then go for it. Would not hurt to just open 0.1 lot buy in Gold on a pullback for target 2000+. DYODD.

I am still struggling to have that emotional balance. I get frustrated soon and angry as well. Dad tells me its all in the age and hair. The older you are and the whiter your hair is, the wiser you become! Still, I want to be wiser before everyone. Ego, frustration, accepting a loss, patience, and all other emotions have come through in this journey for me.
Trends I Love Finding
  • #197
  • Sep 18, 2011 2:01pm Sep 18, 2011 2:01pm
Quoting Tilf
All the best yo. Im 6 years older to you. Started WATCHING the markets when I was 12. Started trading better than my dad when I was 14. Then it was all crap and I lost a lot of money. My uncle was fond of me though and I made him a good $50K(no kidding) in 2 weeks back in 2008 Gold rally. Lost it all when the gold market broke down. Winning took me 2 weeks and losing took 2 days!

So be careful with this Gold market. If you are a long term trader in Gold with deep pockets then go for it. Would not hurt to just open 0.1 lot buy in Gold on a pullback...

Haha good work mate! good goals set for yourself! We youngsters should always strive to be better than the previous. Always. Speaking of emotions, they are truly hard to control, and one will only be able to do so with intelligence, and discipline aka experience.

By the way, what is the value per pip for gold since gold moves big?
Have I got something on my face, SOLDIER?
  • #198
  • Sep 18, 2011 2:51pm Sep 18, 2011 2:51pm
Quoting bumapatria
Haha good work mate! good goals set for yourself! We youngsters should always strive to be better than the previous. Always. Speaking of emotions, they are truly hard to control, and one will only be able to do so with intelligence, and discipline aka experience.

By the way, what is the value per pip for gold since gold moves big?
Here are some things which will help you with Gold trading:

1. Gold is priced in dollars per ounce (1 ounce = 31.103 grams pure gold).

2. Standard contract ( 1 full lot) is worth 100 ounces of Gold. So if you have that much quantity then you will gain/lose $100 on your account for every $1 change on Gold. Right now Gold has closed at 1812.20. So if you have a buy at 1813 (ask price) and close out at 1814 (bid price) then you gain $100. $1 is about 10 pips if you would like to equate it with currencies. I would not do that because Gold is money and not currency.

3. Gold fundamentals - Why Gold? Gold is considered as one of the most liquid assets like cash or treasuries. Very easy to get cash for gold. When world faces crisis or inflation or even hyper inflation, gold is considered as safe haven due its liquid nature. You would not trust the bonds and other ponzi schemes in front of Gold. I would believe we will continue to see Gold hold as the better investment choice for the next 2-3 decades!

Does it mean Gold will go up for ever in dollar or euro or pound? No. But it will hold the value it has in liquidity terms.

4. It is slightly difficult to trade Gold since gold pays no interest or dividends and its price fluctuations depend on inflation readings, GDP, job markets ... in short the economic readings.

If the US dollar goes down then gold is EXPECTED to appreciate as dollar is cheaper and your purchasing power increases. Not necessary that happens though. This is the suckiest part...but hey its in all the markets. Euro has to go down, JPY is supposed to weaken..but hell no its not!

5. You can see a $60 (600 pips for your better understanding) crash in seconds! Trust ME on this! Look at the 1 minute charts in the last 3 weeks and you will know!
Reason: Everyone selling at that same second in that same minute in the same hour..day..week? Hell no brother. This is pure manipulation! You need to have deeper pockets because the central banks really LOVE to suppress the damn gold market big time. So watch out for those down moves. I personally do not try to short Gold now because of its long term trend. Look at those weekly and monthly charts! We need something significant to point Gold down right now.

6. Stocks go up (down) Gold tends to go down (up) (not necessary again...thanks to the Keynesian economics where nothing is logical).

With all this I wish you the best. Will be looking at your journal.
Trends I Love Finding
  • #199
  • Sep 18, 2011 3:12pm Sep 18, 2011 3:12pm
Quoting Tilf
Here are some things which will help you with Gold trading:

1. Gold is priced in dollars per ounce (1 ounce = 31.103 grams pure gold).

2. Standard contract ( 1 full lot) is worth 100 ounces of Gold. So if you have that much quantity then you will gain/lose $100 on your account for every $1 change on Gold. Right now Gold has closed at 1812.20. So if you have a buy at 1813 (ask price) and close out at 1814 (bid price) then you gain $100. $1 is about 10 pips if you would like to equate it with currencies. I would not do that because Gold is money...
Hey man thanks for the tips but could you look at this chart and once market open i see few hours price action and im looking to take a short at supply level. If you can see the supply and demand, thats where i will plan to open trade and close on demand. WHat do you think?
Have I got something on my face, SOLDIER?
  • #200
  • Sep 18, 2011 3:14pm Sep 18, 2011 3:14pm
Great to hear you got in this business so young with the right resources. I wish when I was of your age there was a forexfactory and brokers offering demo accounts.

I developed an interest for the markets at a young age, at age 16 I opened an account to trade index options. The 250 € my dad sponsored disappeared pretty quickly. But I didn't give up, which means I'm back in the business. You seem to have the same attitude

I would say keep it simple and study price action. No indicators needed for that, trust me, it will save you from a lot of headache. All the best to you
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