Help drowning in a sea of Indicators and systems | Forex Factory

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Help drowning in a sea of Indicators and systems

  • #1
  • First Post: May 22, 2006 7:38pm May 22, 2006 7:38pm
I've been following Forex for the last 3 weeks. So far I haven't made a dime. I've made about 7 live trades and was doing well and got blasted on one very bad trade. Since then, I've been looking for a new system or something more reliable. The bad trade that I made didn't even fit into my system that I had and I have no idea why I made the trade. My old system relied primarily on ADX lines crossing and RSI and I thought I saw the lines about to cross and I imagined them doing this so I got in and then realized about an hour later that I was in deep trouble so I kept moving my stoploss back and back until I lost 30 pips. Bad mistake. My inital stoploss was 10 pips and then I just couldn't say die so kept moving it.

Since then I've looked at every system out there. Right now I'm looking very closely at Asctrend system. I like it. It isn't automated but I don't care if it's automated or not. Anyway, I need some guidance. I'd like to use a combination of some things.

I got most of my systems from other forums. What bugs me is that they seem to mass produce indicators and now I got a computer full of indicators and I feel like I'm drowning.
  • #2
  • Edited 8:40pm May 22, 2006 7:51pm | Edited 8:40pm
Hey Switch, STOP! Take a moment and catch your breath. After 3 weeks, you should not be trading at all. You should be studying. You should go to the 1st Sticky in the Beginner Forum and work your way through every one of them. Then You should look at Merlin's list and or Dial's list of books and get every one you can from the Library and read and study them. You need to learn Money Management and one system that is reliable.

The biggest thing is you need to start at the beginning.

Thanks Scott


Quoting Switch
I've been following Forex for the last 3 weeks. So far I haven't made a dime. I've made about 7 live trades and was doing well and got blasted on one very bad trade. Since then, I've been looking for a new system or something more reliable. The bad trade that I made didn't even fit into my system that I had and I have no idea why I made the trade. My old system relied primarily on ADX lines crossing and RSI and I thought I saw the lines about to cross and I imagined them doing this so I got in and then realized about an hour later that I was in deep trouble so I kept moving my stoploss back and back until I lost 30 pips. Bad mistake. My inital stoploss was 10 pips and then I just couldn't say die so kept moving it.

Since then I've looked at every system out there. Right now I'm looking very closely at Asctrend system. I like it. It isn't automated but I don't care if it's automated or not. Anyway, I need some guidance. I'd like to use a combination of some things.

I got most of my systems from other forums. What bugs me is that they seem to mass produce indicators and now I got a computer full of indicators and I feel like I'm drowning.
  • #3
  • May 22, 2006 7:58pm May 22, 2006 7:58pm
It's easy to see at least 4 problems that you answered already:

1)That 1 bad trade wasn't your system;
2)You imagined ADX and /or RSI lines crossing (always wait for the bar or candle to close before figuring out where your crossings are;
3)A 10 pip SL? What are you scalping or something?;
4)You moved your stoploss (although a 10 pip SL is too small for any system. Don't ever let anyone tell you they're so awesome they only need a 10 pip SL!)

Good trading and good luck to you.

k
  • #4
  • May 22, 2006 8:04pm May 22, 2006 8:04pm
READ THE FOLLOWING:

Mastering the Trade - John Carter

Trading in the Zone - Mark Douglas

Day Trading the Currency Market - Kathy Lien

Trading Manual - Joe Ross

Encyclopedia of Chart Patterns - Thomas Bulkowski

for starters.....

And trade the crap out of a demo account before you drop the real ca$h, then come back and we'll see how you're doing.

Oh, and dont take forum trade signals. Forums are good but most ideas are posted by novice traders. Quick way to lose your shirt.

Lata!
  • #5
  • May 22, 2006 8:11pm May 22, 2006 8:11pm
That is an excellent choice of books for both general and Forex trading... Nice...



Quoting BillyRayValentine
READ THE FOLLOWING:

Mastering the Trade - John Carter

Trading in the Zone - Mark Douglas

Day Trading the Currency Market - Kathy Lien

Trading Manual - Joe Ross

Encyclopedia of Chart Patterns - Thomas Bulkowski

for starters.....

And trade the crap out of a demo account before you drop the real ca$h, then come back and we'll see how you're doing.

Oh, and dont take forum trade signals. Forums are good but most ideas are posted by novice traders. Quick way to lose your shirt.

Lata!
  • #6
  • May 22, 2006 8:23pm May 22, 2006 8:23pm
Switch,

It might not be what you want to hear, but SMJONES gave good advise. Stop, I mean STOP.

You must read like your on fire. You must read it over and over and over again. Some stuff you won't think you'll ever understand....like risk and money managment, but after you read it enough times and ask a few questions, stuff starts to sink in.

I stopped all my demo's for over three months. I did not even care to trade. I wanted to learn. And I do not know of a better place to learn FOREX then from these guys on this form.

I started my demo again but only take trades that agree with my personal system rules.

Have fun with this. It really is a blast!!

Good Luck Switch. Hang around these guys and you'll understand more in a short period of time then you ever thought you would.
  • #7
  • May 22, 2006 8:45pm May 22, 2006 8:45pm
Quoting Switch
I've been following Forex for the last 3 weeks. So far I haven't made a dime. I've made about 7 live trades and was doing well and got blasted on one very bad trade. Since then, I've been looking for a new system or something more reliable. The bad trade that I made didn't even fit into my system that I had and I have no idea why I made the trade. My old system relied primarily on ADX lines crossing and RSI and I thought I saw the lines about to cross and I imagined them doing this so I got in and then realized about an hour later that I was in deep trouble so I kept moving my stoploss back and back until I lost 30 pips. Bad mistake. My inital stoploss was 10 pips and then I just couldn't say die so kept moving it.

Since then I've looked at every system out there. Right now I'm looking very closely at Asctrend system. I like it. It isn't automated but I don't care if it's automated or not. Anyway, I need some guidance. I'd like to use a combination of some things.

I got most of my systems from other forums. What bugs me is that they seem to mass produce indicators and now I got a computer full of indicators and I feel like I'm drowning.
Going to have to back these guys up.

3-weeks trading is ok if you've been studying for 6-12 months...however if you just jumped in, you definitely learned the hard way that it's HARD to learn...lol...

regardless, we all empathize with what you're going through. FOREX promises immense wealth with a little luck and lot of knowledge and patience.

Obviously abandoning ship after just 1 horrible trade that may or may not have been part of your system will teach you a VERY bad habit. I think if you made SEVERAL good trades that netted you a loss, then you should be concerned about your system...however, I think at this point, you should be concerned more about your psyche than anything else. Your mind is just not in the game...or you wouldn't have asked for guidance after just 8 trades. You either know your system or you don't...simple as that.

Reading is definitely helpful, but understanding of what transpired is much more valuable.

If you've already done your homework, then examine your system. Backtest an complete year or 2, taking into account the possibility of news, and then forward test your system the next few years or months to present and see how well the system did. Find your max-drawdown...find your number of consecutive losses and then determine whether or not you can handle your system. Then, LEARN to trade using your platform through a demo system. Learn the mechanics of what it takes to get into a trade...do you have to be quick? do you have to be accurate? can you set it and forget it? etc. Then start with a SMALL account trading minis or even micro-minis and forget about making fortunes just yet. See where your head is during your trades. Are you wandering in thought waiting for a trade? Are you getting bored? Do you find yourself watching or doing other things? Does your system allow for this? Unfortunately, there is a bit of a progression that needs to be followed in order for you to have enough skill to be successful...you just need to know where the pitfalls are, and you'll be good to go.
  • #8
  • May 23, 2006 12:44am May 23, 2006 12:44am
Welcome to the forum Switch. Three weeks in to FX? I remember it well for me. I was studying, reading, studying some more, then re-reading what i just read. I did that for at least a month before i even demo traded. Then i made the mistake of thinking i could go live without understanding even the basics of what one might read over in the Money Management area by FijiTrader...and had a 50% drawdown on a live account within my first 6 months.

Each of the above posts by SMJ, Ktrade, BRV, C2, and mrmikal are pip-on. Follow the advice given and you'll be on the right path. I can't stress enough the importance of not being in a rush to trade. Think of how long it might be before you were into your education at a traditional institute such as nursing, law, businsess before you would venture off and do "Live" what your classes or education have been training you to do? Many years for sure.

For the record, i'm back in "demo mode" and this Memorial Day Monday is my 1st aniversary of my entrance into FX with a day long seminar i paid good money for! The best thing for myself is the freedom to not-trade-live and just learn from the greats we have here at the FF and also in the James16group private forum here at ForexFactory.

Don't be in a rush. Relax. Come on in the water is fine...but take baby steps and wear a life preserver!

Cheers,
Thom
  • #9
  • May 23, 2006 1:56am May 23, 2006 1:56am
Switch,

You've got some good advice already and I don't want to repeat anything, just add my 2 pips: on some days it's better not to trade. Sometimes you just don't see your set up and that's OK. Don't try to convince yourself that you see it. The biggest problem is to hold on to those hard earned pips that you already made.

Don't give up! Stop for a moment, pick up a book or a few articles and work your system on a demo account. And don't go anywhere... this forum is just the place to be if you want to learn something.

Happy trading,

Dane
  • #10
  • May 23, 2006 2:10am May 23, 2006 2:10am
Hi Switch,

You've gotten at least $2000 worth of good advice from the previous responders.

I'll just add this. It ain't the system what makes you the money. Sure, you need "a" system, but the money comes from discipline and a solid money management method. There are a ton of systems that will make money for you. Many of them free. As long as it has a positive expectancy (see definition in the book "Trade Your Way to Financial Freedom" by Van Tharp) you can make money IF you apply discipline and money management. But if you don't have either or both of those, you wouldn't be able to make money with the best system ever invented.

When I was learning to trade, one of the best pieces of advice I ever got was to quit switching between systeims and to pick ONE and get married to it. It doesn't really matter which one. Choose ONE of the systems in the Beginner's Forum and forsake all others. Then use that ONE system to practice and develop your discipline and money management skills.

Again, welcome to the Factory! We're glad to have you here.

Dial
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  • #11
  • May 23, 2006 5:02am May 23, 2006 5:02am
get a micro account if trading paper seems pointless. It actually helps alot and a 35 pip stoploss is only $3.50
  • #12
  • May 23, 2006 5:32am May 23, 2006 5:32am
switch,

a last hint...if you cant wait to go live and make money...limit you live account to 500usd, not more !!!!!!!!!!!!!!!

cause, even if you will make a lot of winning trades right from the start, there will inevitably be a point, when thing get out of hand...you will have losing trades...you start to give it back and you are NOT yet prepared mentally to handle this and you will not be able to stop till you have spend you last cent

  • #13
  • May 23, 2006 10:43pm May 23, 2006 10:43pm
Try not to predict whats gonna happen next. React to what just happenned. As you gain experience, you'll get much better at predicting. Also, you should know your entry and exit points. Keep you stop losses a few pips above/below resistance/support levels.
  • #14
  • Last Post: May 24, 2006 6:34am May 24, 2006 6:34am
Quoting diallist
Hi Switch,

You've gotten at least $2000 worth of good advice from the previous responders.

I'll just add this. It ain't the system what makes you the money. Sure, you need "a" system, but the money comes from discipline and a solid money management method. There are a ton of systems that will make money for you. Many of them free. As long as it has a positive expectancy (see definition in the book "Trade Your Way to Financial Freedom" by Van Tharp) you can make money IF you apply discipline and money management. But if you don't have either or both of those, you wouldn't be able to make money with the best system ever invented.

When I was learning to trade, one of the best pieces of advice I ever got was to quit switching between systeims and to pick ONE and get married to it. It doesn't really matter which one. Choose ONE of the systems in the Beginner's Forum and forsake all others. Then use that ONE system to practice and develop your discipline and money management skills.

Again, welcome to the Factory! We're glad to have you here.

Dial

that is one good piece of advise...i did the mistake in my first year to wanting to know all the systems and trying all the systems and by the time i read so many i was sooo confused i didnt know what day it was....

i agree that you have to search for THE ONE....like in life there is THIS ONE somewhere in the forex trading material out there...go search for it..find it...and love it for the rest of your trading time....i mean its different for each of us isnt it?? a system that is good for me and make sense might not be the right for you!!! so yes i agree wth the above and saying its ONE system u need to find and learn and test and then make money...eventually.....
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