How do I move forward? | Forex Factory

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How do I move forward?

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  • What is the best way to keep learning and moving forward with Forex?
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  • #1
  • First Post: Oct 12, 2011 12:03pm Oct 12, 2011 12:03pm
Hi,

I have started a bunch of posts lately, when they are all in some way trying to seek out the answer to this one; how do I move forward?

I am 16 and have been trading and studying Forex on and off for about 2 years. I am still not a profitable trader.
Don't take me wrong, I didn't expect to be able to make a living trading Forex after 2 years, but why not keep moving forward if I can?

So I ask you this.. what's the next step? Trading demo for 5 hours a day? Trading LIVE for 5 hours a day? Reading a bunch of books? Attending to webinars? Or even seminars?

So come on, pros. Impart some wisdom!


Finoli
  • #2
  • Oct 12, 2011 12:30pm Oct 12, 2011 12:30pm
What are you wanting to accomplish by trading Foreign Exchange?
  • #3
  • Oct 12, 2011 12:35pm Oct 12, 2011 12:35pm
Quoting EmeraldEyes
What are you wanting to accomplish by trading Foreign Exchange?
Straight up, I wanna make a buttload of money.
Yes, yes, trading Forex is not a way to get rich fast etc., and I know that.
But why would ANYONE risk their money if they wouldn't make more money than the people not risking it?

So that is it. I wanna have a lot of money. I wanna be able to see something awesome and expensive on some random page and just order it without hesitating. I wanna be able to live wherever I want. I wanna be able to be whoever I want.
  • #4
  • Oct 12, 2011 12:46pm Oct 12, 2011 12:46pm
Giving blind advice to you for moving forward without knowing anything about you is probably not going to be very helpful. You may not be profitable for a number of different reasons.

Why do YOU think you aren't profitable, seeing as we know nothing about how you trade?
  • #5
  • Oct 12, 2011 12:52pm Oct 12, 2011 12:52pm
You'll make more money with lower risk investments while compounding profits. You're going to have to work at it for at least a few years though. At your age, you don't want to lose all your money on forex now because that's taking away from future (fat compounded) profits, right?

If I were 10 years younger, I would learn more Macroeconomics and how all the markets are connected with each other. Like.. knowing when to invest in the USD, the yen, metals, stock markets, ect ect.


to past self: The lines on the screen are just an aftermath.
  • #6
  • Oct 12, 2011 12:54pm Oct 12, 2011 12:54pm
1) get a micro account.
2) Find a strategy like Sonic R or something else.
3) Read on good money management
4) Stick to the strategy and make yourself responsible for sticking to it.
5) Develop the mental aspect of being mechanical in trading vs emotional which is very hard especially when you want to be a in a trade that has moved and you are not in it as it did not meet your strategy for entering.
6) consistency with a good strategy is the only way to win. Once you have confidence in the strategy working over time it is easier to just stick with it.
  • #7
  • Oct 12, 2011 1:32pm Oct 12, 2011 1:32pm
Quoting TRMZXT
1) get a micro account.
2) Find a strategy like Sonic R or something else.
3) Read on good money management
4) Stick to the strategy and make yourself responsible for sticking to it.
5) Develop the mental aspect of being mechanical in trading vs emotional which is very hard especially when you want to be a in a trade that has moved and you are not in it as it did not meet your strategy for entering.
6) consistency with a good strategy is the only way to win. Once you have confidence in the strategy working over time it is easier to just stick with...
I've been down the system road several times, though not quite sticking hard to one. I've felt that fancy indicators etc. is not going to help that much, and I've turned to trading the 'classic' way (s&r, trendlines, fibonacci, pivots etc)

I may try to go for a system, but the thing about it is that it doesnt feel like I'm the one making the money, you know? I'm not sure I like that...

Quoting smittens4212
Giving blind advice to you for moving forward without knowing anything about you is probably not going to be very helpful. You may not be profitable for a number of different reasons.

Why do YOU think you aren't profitable, seeing as we know nothing about how you trade?
I'm not sure, to be honest. Maybe I am too ignorant when it comes to trading. I may be too confident at times, or maybe the opposite (closing a position too early).
It could also be that my profits are maximum 50 pips, while some people fish for 200 - 1000 pips. I, myself, feel that would be harder, but I'm not sure. What do you think? Day trading or trend trading?


Quoting EmeraldEyes
If I were 10 years younger, I would learn more Macroeconomics and how all the markets are connected with each other. Like.. knowing when to invest in the USD, the yen, metals, stock markets, ect ect.
I've never been a fan of fundamentals. I know that knowing some fundamentals about currencies and their countries is good, but what would I do with it? I am a day trader and I don't think I could take advantage of fundamentals that much. It would probably just confuse me.
  • #8
  • Oct 12, 2011 1:51pm Oct 12, 2011 1:51pm
Go with the trend, don't try to guess what the next candle will be.

Look at the big picture, is it going up or is it going down, then use a reasonably good entry method, such as an engulfing candle back in the direction of the trend, or one of many other commonly used methods. Don't resort to tricks, just KISS.

You don't need to have perfect entries or exits, just go with the trend and get a chunk of the move. The better you get, the bigger that chunk will be. You don't have to pick tops or bottoms.

Like previously stated, compound interest is a beautiful thing. Using 1:1 leverage, a skilled trader can make over 100% per year. Starting now, you could potentially be a millionaire before you're 30.

I can't stress enough how profitable the trend is. Get good at identifying the trend, get good at entries and exits (any one of: engulfing candle, breakout, moving average crossover, etc.) and be happy with getting a piece of the move.

It's good that you're in school, so you won't be tempted to day trade. Day trading Forex is tough, it's better the day trade Futures - the moves are bigger. Instead, use the Daily candle to make your decisions.

Spend as many hours of the day as you can, looking at charts, reading about other traders, studying your trades and getting ideas from online forums.

Just don't miss out on girls, sports, girls, homework and... oh yeah, girls.
  • #9
  • Oct 12, 2011 2:01pm Oct 12, 2011 2:01pm
Quoting Rob Mondave
Go with the trend, don't try to guess what the next candle will be.

Look at the big picture, is it going up or is it going down, then use a reasonably good entry method, such as an engulfing candle back in the direction of the trend, or one of many other commonly used methods. Don't resort to tricks, just KISS.

You don't need to have perfect entries or exits, just go with the trend and get a chunk of the move. The better you get, the bigger that chunk will be. You don't have to pick tops or bottoms.

Like previously stated, compound interest...
Thank you, Rob. That was the best advice I've gotten in Forex so far. I thought day trading was a given. I guess I was cought up in the excitement of opening several positions a day. I will try to become a trend follower instead.

As I am not so experienced in that specific area, what is a standard stoploss? I know it is different for each trade, but approxiamtely? Should it simply be below last swing low/above last swing high? Or maybe last daily low or last daily high?

Finoli



PS
I appreciate every post on this thread, which is a reason I like forex;
the people <3
  • #10
  • Oct 12, 2011 2:19pm Oct 12, 2011 2:19pm
Macroeconomics and orderflow analysis will give you the edge. Nothing else matters.
  • #11
  • Oct 12, 2011 2:38pm Oct 12, 2011 2:38pm
Quoting Finoli
Thank you, Rob. That was the best advice I've gotten in Forex so far. I thought day trading was a given. I guess I was cought up in the excitement of opening several positions a day. I will try to become a trend follower instead.

As I am not so experienced in that specific area, what is a standard stoploss? I know it is different for each trade, but approxiamtely? Should it simply be below last swing low/above last swing high? Or maybe last daily low or last daily high?

Finoli



PS
I appreciate every post on this thread, which is...
Like you said, there are no perfect ways of doing this, but the previous swing high/low is good if your entry is fairly close to it. Just watch out for fakeouts and stophunters. I haven't yet found a good way around that.

Another good way is using a trailing stoploss of 1x ATR. Even if you make the wrong decision and the price goes only a little bit with the trend, then turns around for a big retracement, it will advance your stoploss enough so your loss is minimized. I've found that a move in the direction of the trend rarely retraces that far initially.

Sometimes a trailing stop results in a break-even trade, which sux, but the losses are small-enough and there are enough bigger profitable trades that those break-evens don't really matter.
  • #12
  • Oct 12, 2011 3:14pm Oct 12, 2011 3:14pm
Quoting Finoli
I've been down the system road several times, though not quite sticking hard to one. I've felt that fancy indicators etc. is not going to help that much, and I've turned to trading the 'classic' way (s&r, trendlines, fibonacci, pivots etc)

I may try to go for a system, but the thing about it is that it doesnt feel like I'm the one making the money, you know? I'm not sure I like that...



I'm not sure, to be honest. Maybe I am too ignorant when it comes to trading. I may be too confident at times, or maybe the opposite (closing a position too...

Study Sonic R before you jump to conclusions.
  • #13
  • Edited 3:45pm Oct 12, 2011 3:18pm | Edited 3:45pm
Quoting Finoli
Straight up, I wanna make a buttload of money...
I wanna have a lot of money. I wanna be able to see something awesome and expensive on some random page and just order it without hesitating. I wanna be able to live wherever I want. I wanna be able to be whoever I want.
How do you move forward?

By realizing that "money" is secondary.
It is the product of doing something well, better than others, or by creating extraordinary value.

Being a 'top notch' trader could potentially make you money.

Have you considered being a professional athlete, business tycoon, internet entrepreneur, or neurosurgeon?

There is nothing "magical" about forex...for the very few elite...
there are thousands upon thousands of failures...like any profession.

If -

1. you love what you do
2. work hard
3. are properly educated in your field (classical education or life-experience)

AND are better than your peers...
with some luck and timing (and sometimes monetary investment)

...you can be successful.


Develop your own techniques.
200 trades... evaluate
500 trades... evaluate
500 more...

Avoid Outcome Bias, supposed "bad psychology".
Find an 'edge'. (repeatable phenomenon that you can exploit to make money...not a simple task.)
Fix the basics. (risk, trade management, leverage, money management)
Have rules. (even discretionary traders have rules for entry, exit, stops, etc.)
Follow your rules. (If you can't follow your own rules, you will not be successful.)
Practice every day. (all market conditions, news events, seasonal cycles, changing liquidity)

(a little probability, statistics, and economics doesn't hurt)
Be able to evaluate your results objectively (see above)

100 trades or 3 months doesn't mean anything...but they may have clues to where you should
be spending time to develop your techniques for the next year(s).
  • #14
  • Oct 12, 2011 7:27pm Oct 12, 2011 7:27pm
Quoting Finoli
I've never been a fan of fundamentals. I know that knowing some fundamentals about currencies and their countries is good, but what would I do with it? I am a day trader and I don't think I could take advantage of fundamentals that much. It would probably just confuse me.
Daytrading Forex from the retail standpoint without knowledge of the underlining security is probably the most risky form of investing I've encountered. Good luck!
  • #15
  • Oct 12, 2011 8:09pm Oct 12, 2011 8:09pm
1. Take a month or so to read and learn anything and everything you can about forex.
2. Open a penny account with Oanda.
3. Grow that account into millions, refueling your TINY account as you undoubtedly drain it a few good times.*

*It will take awhile, but experience to be profitable takes awhile.


Do not by any means take a decent amount of money and jump in. You will trade scared, you will lose. Keep this in mind.

Nothing worse than putting up way to much money and losing. Then freaking out trying to get back to break even only to trade scared and get further from break even compounding the problem.
  • #16
  • Oct 12, 2011 8:27pm Oct 12, 2011 8:27pm
Dude..Go to University & graduate in Economy..make forex trading as a hobby ,leisure time while study Economy..Get a job (part time or full time) to fund your trading capital..Good Luck !!
  • #17
  • Edited 9:02pm Oct 12, 2011 8:30pm | Edited 9:02pm
You're doing it now. You're acknowledging that you're stuck and you're taking action to find an answer to your predicament. Repeat this process for as long as it takes until you go... "aahhhaaaa" and then prolly a few more times after that.
Time hides Nothing
  • #18
  • Oct 12, 2011 10:01pm Oct 12, 2011 10:01pm
.... OTHER, which really should have been "All of the ABOVE" but that's just me.

There has been some great advice given here already; I won't add to that, but will just tell you what worked for me, that elusive click as it were! Amazingly, all these happened pretty much at the same time after years of struggling, so don't give up, never give up!

1. Found a mechanical system that suited my personality, back testing gave reliable results, consistent gains.

2. Within that system, I started using a calculator and finally understood POSITION SIZING

3. l listened to TRADING in the ZONE as an audio book; had read it years ago, but somehow, listening really made it sink in or maybe "when the student is ready, the teacher will appear"

4. From that, I found within me a DISCIPLINE that I never had before; constant search for better system, new indicator, all done with that now.

Someone mentioned don't trade with too much money, you will be scared, but if you understand RISK, along with it position size, within the context of what Mark Douglas will teach you, then you realize that:

A. Anything can happen.

B. When you put on a trade, you can only expect that something will happen.

C. Fully accept the risk.

D. The most you can lose is 1% or 2%

So why would you be trading "scared"? I certainly don't and my account is the largest it has ever been, growing the fastest ever, trades are getting bigger but my risk remains the same.

Hope that helps, good luck in your search for the Holy Grail, believe me, it is not far away.

OPPORTUNITY IS NOWHERE
  • #19
  • Oct 12, 2011 10:26pm Oct 12, 2011 10:26pm
Find a good mentor.
  • #20
  • Oct 12, 2011 10:38pm Oct 12, 2011 10:38pm
1)Find a good mentor
2)Macroeconomics and order flow like porkpie said
3)Get an internship and learn stuff.

Get a system and trade it. Without a system you are trading blind.
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