You know the saying, "If you cannot stand the heat, get the heck out of the kitchen". Have to agree with most of the points listed here, including the cherry popping. Wonder how many noobs actually believe Forex trading is a cash generating machine, delivering cash on demand?
- #42
- May 29, 2012 4:20pm May 29, 2012 4:20pm
- Joined Sep 2006 | Status: ... | 8,112 Posts
I attached a spreadsheet that might help you some in case you are considering to continue. I made this a week ago myself. It truly helped me in generating patience, only cherrypicking the best trades, and to not be greedy. .....
I don’t want to dissuade you from setting goals and targets, especially if they help to motivate you. However, in my experience, there are some pitfalls and caveats that every aspiring trader needs to consider.
Firstly, I don’t dispute the math: 2% per day compounds to a whopping amount in just a few months.
However, targets create this dilemma: what to do if you find yourself falling behind your projected daily/weekly/monthly goal? There is no way to catch up, without overtrading (taking poorer quality setups) or overleveraging yourself (risking bigger positions in an attempt to recover). The alternative is to lower your sights, which means that — if I may be blunt — the original target was effectively meaningless.
Targets can cause a trader to become P/L focused, rather than market focused. A profitable strategy is profitable because it exploits market inefficiencies, not because it is seeking an arbitrary pip target that’s set by the trader, which the market takes no cognizance of. From what I’ve read in Market Wizard-type books, the best traders focus on executing a strategy flawlessly and consistently, and let profit take care of itself.
Targets can cause a trader to take profits too early. Trend-following systems, for example, make their money when the market trends most strongly, and to cut winners short would be counter-productive, reducing your bottom line. Those extra pips help compensate for other losses, and can be the difference between an overall positive or negative pip count. It’s not greedy or risky to take any ‘extra’ pips that are on offer: many experts believe that if you have your SL at breakeven, you have a risk-free trade, and you should milk this opportunity for everything that you can get. As pipmutt says in his signature: "It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong." That’s a Soros quote, if I’m not mistaken.
Targets can also cause you to avoid good setups, if you say to yourself: “I’ve already made my 10 pips for today; to take another trade might be tempting fate”. In other words, you find yourself no longer following your system rules.
A small (e.g. 10 pips per day) target tends to encourage scalping, which requires greater knowledge and skill than longer term trading, especially because the effect of the spread is greater. For example, if your trade horizon is 10 pips, then a 2 pip spread represents a 20% edge against you, whereas if your trade horizon is 100 pips, then the same spread represents only a 2% barrier. Keep in mind that transaction costs both reduce the size of your winners, and increase the size of your losses.
Finally, here are some words from a professional trader with more than 30 years’ experience:
“All of the professional traders I know, whether they trade forex or futures markets, do not make "so much per day". That is a phrase used by marketers, because they know what beginners are looking for, and that is a steady income so they can get rid of their jobs. Money from the market that you can count on does not come steady or nicely "so much per day". Real traders make profits, budget their expenses, save some profits, add some profits to their accounts for further building of the account, etc. Just like any business, which is what real trading is.”
If you want to read the whole post, it is here.
Just my 2c, for whatever it's worth.
David
- #44
- May 29, 2012 7:47pm May 29, 2012 7:47pm
- Joined Apr 2008 | Status: Parsimony Rulez! | 3,216 Posts
- #45
- May 30, 2012 5:46am May 30, 2012 5:46am
- Joined Mar 2011 | Status: Bullish Behavior | 3,182 Posts
- #46
- May 30, 2012 2:44pm May 30, 2012 2:44pm
i know well above basics in technical analysis,it hit that area because it was last resistance on failing to take it out,it went down again to support.All would be nice if such things as fake outs or some bull$hit news that you never heard country of wouldnt come out everyday and straight away go trough 2-3 major supports giving you wtf immpresions.
Im still trading everyday,if not just id take a peak from time to time to see whats market up to,but eventually probably gonna give up trading,as i want to setup my own business in the future that i have already plans,and maybe try to learn poker instead
Im still trading everyday,if not just id take a peak from time to time to see whats market up to,but eventually probably gonna give up trading,as i want to setup my own business in the future that i have already plans,and maybe try to learn poker instead
- #50
- May 31, 2012 6:49am May 31, 2012 6:49am
- | Joined Oct 2010 | Status: Trader | 1,539 Posts
From forex to poker, well... 
- #51
- May 31, 2012 9:33am May 31, 2012 9:33am
From forex to poker, well...
But this is my last post,wont be trading anymore,as it might seem a small amount to loose money for others here but,i would of rather spend it somewhere in Spain laying on the beach with all the nice girls around drinking cocktails for a week or two,or small travel around Europe which would at least me give some pleasure and good memories.Gl to all and bye.
- #52
- May 31, 2012 10:11am May 31, 2012 10:11am
- | Joined Oct 2010 | Status: Trader | 1,539 Posts
just joking never understood the game
But this is my last post,wont be trading anymore,as it might seem a small amount to loose money for others here but,i would of rather spend it somewhere in Spain laying on the beach with all the nice girls around drinking cocktails for a week or two,or small travel around Europe which would at least me give some pleasure and good memories.Gl to all and bye.
- #53
- May 31, 2012 10:31pm May 31, 2012 10:31pm
- Joined Apr 2008 | Status: Parsimony Rulez! | 3,216 Posts
- #57
- Jun 3, 2012 10:53pm Jun 3, 2012 10:53pm
- Joined Mar 2011 | Status: I should be on your ignore list | 5,597 Posts
just joking never understood the game
But this is my last post,wont be trading anymore,as it might seem a small amount to loose money for others here but,i would of rather spend it somewhere in Spain laying on the beach with all the nice girls around drinking cocktails for a week or two,or small travel around Europe which would at least me give some pleasure and good memories.Gl to all and bye.