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  • #121
  • Sep 12, 2012 6:59am Sep 12, 2012 6:59am
Quoting Sonofsin5
LET YOUR WINNERS RUN!
This is the only way to make it. It is easy to have 1-3 300-1000 pip trades a year if you let a runner free.

I have learned to only take trades with at lease a 5-1 r:r.
Find a hobby that coincides with your trading life. Staring at a screen all day will only make you close winning trades to soon and let losing trades run to long.
I've taken up fishing and mountain biking during my trading career and can honestly say that my biggest winning days are when I walked away from my screen and came back to a take off trade I...
This just goes to show how differently we all think about trading. I trade primarily on the M5 charts and about once p/month I'll see a 4R trade. 1R for me is about 10-12 pips on most pairs though and so that means that 4R is only 40-48 pips.

While I am "chained" to the screen all day due to the time frame I trade, I do not stare at the screen. I make a decision at the end of every 5 minute candle and then I shrink my MT4 down and read a book or something for 4 minutes while I wait for my watch to beep and tell me that there is 1 minute left on the current candle and that I need to evaluate it. Then the cycle repeats.

Staring at the candles while they form just stresses me out. It's also boring and a poor use of time as far as I'm concerned. I have a trade manager check me out of trades, I never pull out early so all I'm responsible for is pulling the trigger to get in. That being the case, why bother watching to see what happens while a candle forms? You can read a lot of books over the course of a month while spending 10 hrs in front of a screen working M5 charts this way.
  • #122
  • Oct 22, 2012 3:24pm Oct 22, 2012 3:24pm
Just in case you didn't read it, this is an absolutely MUST READ thread from a pro:
http://www.forexfactory.com/showthread.php?t=338283

Thanks to Jack Larkin!
  • #123
  • Oct 24, 2012 5:36am Oct 24, 2012 5:36am
I started to trade because I was just curious about the market and all this stuff... You know all this romance about Wall street and big money)) But I found out quite soon, that this is not so simple and I must learn a lot of things for just being able to have the same earnings as I have on my regular job. So here I am - almost on the beginning spot. Already without any illusions. But still with a belief
  • #124
  • Feb 2, 2013 1:13pm Feb 2, 2013 1:13pm
Quoting botsog
@tradista: i first read about her from a different thread (HSM) and then followed her in BOD. she's really amazing and serves as an inpiration to many binary options traders (specially for those who are unsuccessful). i do trade binary options but not yet that successful but i'm more confident with my trades and my strategy.
Have you reached consistency in binaries yet? I am now adjusting my trading plan for binary options too.
  • #125
  • Feb 2, 2013 3:18pm Feb 2, 2013 3:18pm
Quoting tradista
Have you reached consistency in binaries yet? I am now adjusting my trading plan for binary options too.
I would be very weary of taking the time and effort to establish a trading plan for binary options. Am I saying those "brokers" can't be beat? Absolutely not. It would seem very probable that you can develop a system/strategy that leaves you in the green month over month.

However, these people are not like Oanda for example. Does Oanda take positions against you? Sure, but they have no conflict of interest if you make money or not. If they don't want to take the opposite position against you that's fine, they will offset it on the open market. They actually prefer you make money so they keep banking commissions.

With binary options it is impossible for the broker to do this. They require most of their customers lose money in order for them to be profitable. To each his own and this is simply friendly advice, but I would not rely on binary options trading for rent money because your broker will have control over everything and needs you to lose. It's sketchy, if a binary options broker starts falling behind on their profits, they will widen spreads, decrease % for winning trades etc.

Good luck to you, and I would be interested to hear your opinion if you disagree.
  • #126
  • Feb 2, 2013 4:10pm Feb 2, 2013 4:10pm
Quoting SemperOorah
They require most of their customers lose money in order for them to be profitable. To each his own and this is simply friendly advice, but I would not rely on binary options trading for rent money because your broker will have control over everything and needs you to lose. It's sketchy, if a binary options broker starts falling behind on their profits, they will widen spreads, decrease % for winning trades etc.
Thank you for the sound reasoning and advice. I understand what you are saying and I also noticed that there isn't any true regulation for BO brokerage operations.

If this is a business that can only sustain itself through customer's losses then its underlying business model is the one of a casino or close to it. Isn't this business model doomed to failure in the long run? Are they all scammers? Why would someone with a true entrepreneurial drive to create a good company build a business around this model ?

What I find - at least at first glance and looking at the payouts - is that it seems like a promising way of accumulating investment money to later reinvest in more traditional and regulated trading markets.
  • #127
  • Feb 2, 2013 4:28pm Feb 2, 2013 4:28pm
Quoting tradista
Thank you for the sound reasoning and advice. I understand what you are saying and I also noticed that there isn't any true regulation for BO brokerage operations.

If this is a business that can only sustain itself through customer's losses then its underlying business model is the one of a casino or close to it. Isn't this business model doomed to failure in the long run? Are they all scammers? Why would someone with a true entrepreneurial drive to create a good company build a business around this model ?.
I think you nailed it by mentioning a casino mentality. This business model absolutely attracts gamblers, not traders. I remember seeing things like "1 touch" where if the price hits a certain level you will get a 400% payout. The odds are far worse than 4 to 1, however gamblers just focus on the 400% payout. This business model is successful because of those people.

Now I hate to contradict my own argument haha, however I don't think there will ever be a shortage of these people. If you are consistently profitable you will probably just be a blip on the broker's radar. However if they do go bust, this being a gambling website and not an FDIC insured broker, you will never get your funds back. This really is my number 1 reason for staying away from them, but I'm not suggesting they wouldn't 'toy' with your trading if you were breaking them.
  • #128
  • Feb 2, 2013 4:36pm Feb 2, 2013 4:36pm
Quoting tradista
What I find - at least at first glance and looking at the payouts - is that it seems like a promising way of accumulating investment money to later reinvest in more traditional and regulated trading markets.
But why wouldn't you use your time and money to master the regulated markets now?
  • #129
  • Feb 2, 2013 4:56pm Feb 2, 2013 4:56pm
Quoting Sonofsin5
LET YOUR WINNERS RUN!
This is the only way to make it. It is easy to have 1-3 300-1000 pip trades a year if you let a runner free.

I have learned to only take trades with at lease a 5-1 r:r.
Find a hobby that coincides with your trading life. Staring at a screen all day will only make you close winning trades to soon and let losing trades run to long.
I've taken up fishing and mountain biking during my trading career and can honestly say that my biggest winning days are when I walked away from my screen and came back to a take off trade I...
I agree with what you say. For newcomers, sitting in front of the screen 14 hours / day seems awesome, compared to a normal job. For me, it was not the life I wanted. Combining trading with other passions is the way to go.

Regarding letting winners run. To me, its a fact. How can not letting your runners run be an option? Those big runners is what pleases both mine and investors pockets. Its simple math. Take a look at your trading performance for the last 12 months. It is always those big runners who makes your trackrecord pumping.
Measure twice, cut once
  • #130
  • Edited Feb 3, 2013 1:28pm Feb 2, 2013 5:13pm | Edited Feb 3, 2013 1:28pm
Quoting SemperOorah
But why wouldn't you use your time and money to master the regulated markets now?
Mostly because I am SO MUCH undercapitalized that not even in 10 years will I be able to put aside enough investment money to trade full-time and make a living from it. I am so deep in debt that there is no possible way for me to build real capital in the next decade. All I can do is try to use one hundred here another hundred there as “potential” investment money. Not really interested to turn one hundred to two hundred by next year.

My trading plan shows me that I am profitable enough with safe MM rules, but the position size that I can afford is so insignificant that I won’t make any real money anytime soon. Trading from higher timeframes yelds the same results and I simply can’t watch the market during the day. Daytime job and a family life take away most of my time and, I must admit, that being at GMT+ watching the London/US open passing me by while I am at work is a bit nerver wrecking sometimes. Not interested in trading the asian session, which mostly gains some liquidity at around 3.00/4.00am (I have to wake up at 6.30 to go to work!).

I’m not saying that having more capital would make me a better trader, but right now and after seeing some amazing cases of fast-growing accounts in the binary world I am just considering this path as a possible solution to this problem.

I guess I won’t be bothered to much if I lose my initial hundred bucks capital to the hands of these type of brokers anyway.
  • #131
  • Feb 2, 2013 5:31pm Feb 2, 2013 5:31pm
i don't trade for a living, but i have been trading profitably for 6 years now. I'm averaging about 22% a year, although it's been growing and I'm getting more confident. I think in a few years I'll be able to trade full-time. I still have a bit of a small capital base -- had a financial setback that required me to take money out of my trading account a few years ago -- which is a big obstacle for most traders. I think I can consistently generate 25%-55% a year. Hopefully as I continue to grow and improve as a trader that number will go up.
  • #132
  • Feb 2, 2013 5:54pm Feb 2, 2013 5:54pm
Quoting tradista
Mostly because I am SO MUCH undercapitalized that not even in 10 years will I be able to put aside enough investment money to trade full-time and make a living from it. I am so deep in debt that there is no possible way for me to build real capital in the next decade. All I can do is try to use one hundred here another hundred there as “potential” investment money. Not really interested to turn one hundred to two hundred by next year.

My trading plan shows me that I am profitable enough with safe MM rules, but the position size that I can afford...
Being a fulltime trader requires more than being able to execute successful trades. You need to run the entire organization, being marketer, analyser, risk-manager, customer manager and the list goes on. But don't be afraid of being undercapitalized. Money will find you if you do well, I promise!

The same goes for artist. You sometimes see a fantastic talented singers appear on Idol and other shows at the age of 35, yet they are unknown and work as a plumber. That's most likely because they don't have a combination of skills required to make it to the top. Same goes for trading.
Measure twice, cut once
  • #133
  • Feb 2, 2013 6:06pm Feb 2, 2013 6:06pm
Quoting HouseTaker
i don't trade for a living, but i have been trading profitably for 6 years now. I'm averaging about 22% a year, although it's been growing and I'm getting more confident. I think in a few years I'll be able to trade full-time. I still have a bit of a small capital base -- had a financial setback that required me to take money out of my trading account a few years ago -- which is a big obstacle for most traders. I think I can consistently generate 25%-55% a year. Hopefully as I continue to grow and improve as a trader that number will go up.
22 % a year is awesome! Continue doing that and you'll have no financial worries in 10 years.
Measure twice, cut once
  • #134
  • Feb 3, 2013 1:27pm Feb 3, 2013 1:27pm
Quoting aediaz1
Money will find you if you do well, I promise!
That is inspiring. Thanks!
  • #135
  • Feb 3, 2013 5:57pm Feb 3, 2013 5:57pm
Quoting HouseTaker
I think I can consistently generate 25%-55% a year. Hopefully as I continue to grow and improve as a trader that number will go up.
Thanks for sharing. I sincerely wish you success and that as your stakes get higher your profits stay around those levels or more!
  • #136
  • Feb 4, 2013 8:10pm Feb 4, 2013 8:10pm
Quoting aediaz1
22 % a year is awesome!
You mean 22% / month CONSISTENTLY, right?
I want to buy PATIENCE
  • #137
  • Feb 4, 2013 10:25pm Feb 4, 2013 10:25pm
Quoting matheszabi
You mean 22% / month CONSISTENTLY, right?
no a year.. that is actually achievable by some skilled fund managers. Thats after fees etc. Anything mich more and its prob a ponzi scheme.

If ur thinking he made a mistake you should prob practice on demo for a few months.
  • #138
  • Feb 19, 2013 6:53pm Feb 19, 2013 6:53pm
Quoting sidhujag
no a year.. that is actually achievable by some skilled fund managers. Thats after fees etc. Anything mich more and its prob a ponzi scheme.

If ur thinking he made a mistake you should prob practice on demo for a few months.
Here is the Napoleon's words

Maybe I am still beginner and still greedy and I do believe if I don't make +20%/month in FX than I am trash trader, but that's me, at this moment.
I want to buy PATIENCE
  • #139
  • Feb 19, 2013 8:51pm Feb 19, 2013 8:51pm
%20 based on what size acct ? 100k ?
  • #140
  • Feb 24, 2013 12:26am Feb 24, 2013 12:26am
One thing i have learned as a trader that one cant rely only on trading for a living.
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