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How to be successful!!

  • #1
  • First Post: May 4, 2012 7:27am May 4, 2012 7:27am
Hello , my friends.

Iīm gonna talk about forex market and try to explain how to be successful.

Forex is a probability "game".
And there are only two probability, buy or sell.

So the only thing a trader must do to be successful itīs guess more times the probability, buy or sell.

How we do that?
Well there are only one way.

- You need to choose a pair.
- You need to know the amount of pips that you want per day or week or month ...
- Then you need to get a way to get those pips, a system.
- No matter what kind of system is, if you stay just for minutes, hours or all day to see the charts, if you trade with 1 indicator or 20, if you trade naked charts, if you trade news or not, if you trade by the planets, if you trade drunk or sober, if you trade 1 sec or 1 month charts, if you trade with your eyes open or closed, you only need to chose the best way that fits you.
- Then you need test the system to see if itīs good for your target, the number of pips.
- Now that you find the right system, you need manage your money.
- And thatīs all!

Easy, no?!
Soon some examples.


Determination is the key to success!

Happiness for all.
  • #2
  • May 4, 2012 10:55am May 4, 2012 10:55am
if you really want to be successful trader read please: Way of the Turtle- The Secret Methods that Turned Ordinary People into Legendary Traders.

It will change your mind about trading...

Don't set your TP.. set just SL!!! cut losses, let profit run.

And don't risk more than 1%...
I personally risk only 0,5% from my balance per trade.
Read more books about psychology and long term trading..

Just my 2 cents.
  • #3
  • Edited May 5, 2012 6:29am May 4, 2012 4:02pm | Edited May 5, 2012 6:29am
That's a good book Raa thank you for your contribution.

Happiness for you.
  • #4
  • May 4, 2012 4:38pm May 4, 2012 4:38pm
Hello my friends, let's continue ... this fictitious example.


- You need to choose a pair.
Well letīs try Eur/Usd


- You need to know the amount of pips that you want per day or week or month ...
Ok i just want 10 pips a day


- Then you need to get a way to get those pips, a system.
One fictitious example, that consists in:

Trade only US session opening, in the 1m chart and just for 2 hours, using one indicator sma100 and a ratio 1:1 so SL 10 pips and TP 10 pips.
My entry point for sell is when the price crosses from up to down the sma100 and the next candle open below the sma, and for buy the inverse.


- Then you need test the system to see if itīs good for your target, the number of pips.
Ok now i gonna test my system for about a few months and my conclusion are:

Everyday i have an entry, so about 22 entries a month.

But this 22 entries, normally 6 are losses and 16 are wins.
16x10 = +160 pips and 6x -10 = -60 pips
total = +100 pips a month. (very good results)
But with that result my target is not 10 pips but almost 5 pips a day.


So i need to improve my system if i wanna 10 pips a day.

Then i change my SL to 15 and TP 10 and i see that i have another result:
4 losses and 18 wins
4x -15 = -60 pips and 18x10 = +180 pips
total = +120 pips a month (very good results)
But still not 10 pips, but i have now 5 pips a day


So if i want more then i need to improve my system again.

I change the TP to 20 and SL 15 and i see good results:
8 losses and 14 wins
8x –15 = -120 pips and 14x20 = 280 pips
total = +160 pips a month (very good results)
But with that result my target is not 10 pips but almost 8 pips a day.


Again, i need to improve my system.

I see if i only trade for one hour instead of two i donīt have entries everyday, in this fictitious example only 16 trades in 22 days, but i reduce my losses:
4 losses and 12 wins.
4x –15 = - 60 pips and 12x20 = 240 pips
total = +180 pips a month. (very good results)
But still not 10 pips, but i have now 8 pips a day


What to do next? Yes, i continue to improve my system.

Sometimes changing little things itīs enough, just like modify the setup of an indicator, the time we spend in tranding, the session, our SL and TP, adding another indicator or remove one, etc...


- Now that you find the right system, you need manage your money.
Soon in another post


Determination is the key to success!

Happiness for all.
  • #5
  • May 4, 2012 11:07pm May 4, 2012 11:07pm
Yeah! I agree with you. What i do is done my analysis first. Then i will setup suitable strategy according to the analysis result. Next, test the strategy for long period of historical price,especially involved economic crisis. The purpose is to know whether the strategy works. After that, judge and analysis the back test results in order to modify and find out the defect. Once the problem is solved, retest again. And the result shows better and better.

These are the procedures for my trading. Hope we can learn from each other and manage better return and trades.

Good trading!
  • #6
  • May 5, 2012 6:28am May 5, 2012 6:28am
Hello Fx2ProTrader,

Glad to know that you use this kind of procedure because itīs the right way, just continue and stay focus, because the results will coming.

And of course we all learning with each others.

Happiness for you.
  • #7
  • May 5, 2012 7:58am May 5, 2012 7:58am
Hi Please!

Yup.

How long have you been trading? Are you a full time trader?
  • #8
  • Edited 9:16am May 5, 2012 9:04am | Edited 9:16am
idea for further study:

What are your technical analysis' results if the chart was in different types of markets, for example
ranging (sideways)
trending (45-degree angle)
momentum (near-up or down)
, each with a good variety of uniformity;
and, what percentage and variety of each chart area did the noted testing period contain?


Hmm...
The indicator you use is popular, so maybe I can find its effectiveness ratings elsewhere....
  • #9
  • May 5, 2012 9:57am May 5, 2012 9:57am
Quoting Please
- You need to choose a pair.
- You need to know the amount of pips that you want per day or week or month ...
- Then you need to get a way to get those pips, a system.
- No matter what kind of system is, if you stay just for minutes, hours or all day to see the charts, if you trade with 1 indicator or 20, if you trade naked charts, if you trade news or not, if you trade by the planets, if you trade drunk or sober, if you trade 1 sec or 1 month charts, if you trade with your eyes open or closed, you only need to chose the best way that fits you.
-...
I'm not sure you are doing it right. Seems like you are instructing people to create a system based on any random parameters and then testing it to see how it goes.

You don't build a system and then try to find out the reason why it works. First you need to come up with the reason why it will work, and then you go and test the system.
  • #10
  • May 5, 2012 11:51am May 5, 2012 11:51am
Hi calamardo!

I think you are not experience enough in trading. I understand what host is trying to explain. But of course the explanation is not clear in details.

Host is trying to explain that trader requires trading plan/objective before putting money into real accounts. Understand what you require ,day trade? week trade? The purpose is to adjust your own time to suit a comfortable trading style.

Once you get your objective. Test the system and understand the result.

Please go to the link below to understand in details.
http://www.forexfactory.com/showthread.php?t=360183
  • #11
  • May 5, 2012 12:01pm May 5, 2012 12:01pm
Quoting Fx2ProTrader

Host is trying to explain that trader requires trading plan/objective before putting money into real accounts. Understand what you require ,day trade? week trade? The purpose is to adjust your own time to suit a comfortable trading style.

Once you get your objective. Test the system and understand the result.
And how can you plan your targets and trade frequency when you don't even know what your "system" is based on? My point is that you have to understand why and how your system works before doing any testing, in fact there's no way you can develop a system if you don't know yet the inherent reason why it should work.
  • #12
  • May 5, 2012 12:23pm May 5, 2012 12:23pm
Quoting calamardo
And how can you plan your targets and trade frequency when you don't even know what your "system" is based on? My point is that you have to understand why and how your system works before doing any testing, in fact there's no way you can develop a system if you don't know yet the inherent reason why it should work.
Yeah, that's a good point,
in addition to knowing under what general circumstances does the thread starter's technicals works or fails
(instead of using a small, random (vs. 'randomized' across a diverse population, a different term similar to structured sampling across a homogenous population) sample, which the thread starter used).

The threadstarter seems to have confidence in the sma technicals, so it seemed a side issue to the thread's main purpose of structuring the rest of one's system around any -- with given example of the sma technicals -- method.

I do find that of theoretical interest, for one because it suggests the thread starter is good at establishing rules for any method.
On the other hand, I also find what you do, that it is not in any way tradeable to do this, because one's technical edge must come first before tacking on rules and such to use that edge.
(And it seems the other poster explains a way of how to get this edge, in a link. The boil-down is of awfully complex material, as that link expresses and I've certainly so far found in my own historical studies.)
  • #13
  • May 5, 2012 12:25pm May 5, 2012 12:25pm
Hi calamardo!

OK.. have you view the link that i posted just now? I'm not going to explain here since is too long in details.

Done your analysis. Understand the trend behaviour. Then you will know what system you are going to develop. The current situation is you have no ideas and reference to start a system. Even you have it... does the system works?
  • #14
  • May 5, 2012 5:02pm May 5, 2012 5:02pm
Hello ha-pattern,

If i understood your question, she has already been answered right here.

“What are your technical analysis' results if the chart was in different types of markets, for example
ranging (sideways)
trending (45-degree angle)
momentum (near-up or down)
, each with a good variety of uniformity;
and, what percentage and variety of each chart area did the noted testing period contain?”


Well if i tested my system during a few months then i see all the market behaviour, in trend, sideways, etc... in that period of time that i want to trade.

... in that period of time that i want to trade.
- Then you need to get a way to get those pips, a system.
One fictitious example, that consists in:

- Trade only US session opening, ...........


Well if i tested my system during a few months then i see all the market behaviour, in trend, sideways, etc...

- Then you need test the system to see if itīs good for your target, the number of pips.
Ok now i gonna test my system for about a few months and my conclusion are:

Everyday i have an entry, so about 22 entries a month...........



"Hmm...
The indicator you use is popular, so maybe I can find its effectiveness ratings elsewhere...."

I donīt use this indicator sma100, this is only a fictitious system, i have not tested if the results really happen, this is just an example my intention is not to post systems but to explain the way to be successful.


Sorry for my (bad) english

Happiness for you.
  • #15
  • May 5, 2012 5:13pm May 5, 2012 5:13pm
Hello calamardo,

Basically what Fx2ProTrader said.

"Host is trying to explain that trader requires trading plan/objective before putting money into real accounts. Understand what you require ,day trade? week trade? The purpose is to adjust your own time to suit a comfortable trading style.

Once you get your objective. Test the system and understand the result."

Happiness for you.
  • #16
  • May 5, 2012 8:45pm May 5, 2012 8:45pm
Okay, I'm about to tell you the most simplest way to trade. You may or may not follow this simple way. It is up to all of you. Here's the secret/Cheat Code:

1) Google Bigcharts. It is a site that display charts.
2) Type in EURUSD or any currency that you like to trade. Then press the "Basic Chart" button.
3) This site is the best because they have already drawn the Support/Resistance lines for you. Remember trading is all about self-fulling prophecy. Look at the BIG ROUND NUMBERS and you will understand. If you don't then I don't know what to say....

4) Most important step. Buy the breakouts of these Round Numbers & Sell the breakdowns of these Round Numbers. If you study the charts from Bigcharts site carefully, you will understand.


Know the terms short squeeze and Long squeeze (Or sometimes called stop loss triggered). If you don't know these terms then you don't know what you're doing.

I wish all of you luck in trading Forex. For me, it is just plain gambling. But if you want to be successful, then always keep it simple. This will be my last post on ForexFactory if some of you get this strategy then I'll be very happy for you.

Ciao!
  • #17
  • May 5, 2012 11:34pm May 5, 2012 11:34pm
Quoting Please

Ok i just want 10 pips a day

i need to improve my system if i wanna 10 pips a day.

i need to improve my system again.

Again, i need to improve my system.

What to do next? Yes, i continue to improve my system.
Ok I have a question. After all this system improving what happens if the market doesn't offer me my 10 pips a day, what do I do then? Do I carry it over to the next day and wanna 20 pips? What happens if the market offers me, say, 50 pips? Do I just take 10 because that's all I wanna, or do I take the 50 and have the rest of the week off? What happens if one day I lose 20 pips, do I then have to make 30?
  • #18
  • May 6, 2012 4:21am May 6, 2012 4:21am
Quoting Please
Hello , my friends.

Iīm gonna talk about forex market and try to explain how to be successful.

Forex is a probability "game".
And there are only two probability, buy or sell.

So the only thing a trader must do to be successful itīs guess more times the probability, buy or sell.
why is everybody always so focused on the win-rate? Win-rate by itself is irrelevant.
  • #19
  • May 6, 2012 5:40am May 6, 2012 5:40am
Quoting Custos

why is everybody always so focused on the win-rate? Win-rate by itself is irrelevant.
Don't, you'll blow their mind altogether if you start talking about risk:reward!
  • #20
  • May 6, 2012 6:36am May 6, 2012 6:36am
Hello Evans,

Thank your for your contribuition.

Happiness for you.
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