Hi folks,
it is my opinion that trading systems are something pretty overrated and sometimes even dangerous. I have 2 empiric proofs to my small observation - one is my experience, the other is the "news factor". In other words - I do not think tricky systems and technical will make you rich!
I'm trading from almost 3 years - initially I was like all others - trying to "solve" the market, learn all technical indicators and trading systems, try to find my "tricky" way, etc., etc. Despite all this - my trading was mediocre - sometimes win, sometimes loose - nothing of interest. It came to me after some significant thinking that this is impossible task - market predictions and price guessing.
The other factor - so called "news" and technical analysis online shows that basically by using strict indicators you expose yourself to the big sharks - they know how you think, they know exactly what you are about to do.
So in time I came to follow a very simple approach - the base idea of all markets - "buy cheap, sell expensive" (shorting as opposite) by waiting some big 4-6 weeks move for like 500-600 pips and then get a retrace or reverse. I'm doing this simply by placing an order (avoid using technical "sweet spots") with reasonable stop loss and I wait the order to kick-in - usually the order is at such point where retrace or reversal is evident. If the order goes right - I ride the train - sometimes 4-6 weeks to get nice profit - if it fails - cut losses very quickly and wait again on same spot or very close. Pure statistics - and it works - profit volume is not the same every time, sometimes in 4-6 weeks I barely make profit (cover previous losses), but in the end of the year - things are pretty nice and stable in % gain (25-30%).
This way I also avoid the dangerous day-trading - pretty exhausting in emotional aspect and not too effective I would say.
So - FX IS a profitable enterprise - but you need to avoid what crowds do I think. I'm now focused on a way to gain good capital volume, so the year % looks more attractive in absolute terms.
Happy trading!
it is my opinion that trading systems are something pretty overrated and sometimes even dangerous. I have 2 empiric proofs to my small observation - one is my experience, the other is the "news factor". In other words - I do not think tricky systems and technical will make you rich!
I'm trading from almost 3 years - initially I was like all others - trying to "solve" the market, learn all technical indicators and trading systems, try to find my "tricky" way, etc., etc. Despite all this - my trading was mediocre - sometimes win, sometimes loose - nothing of interest. It came to me after some significant thinking that this is impossible task - market predictions and price guessing.
The other factor - so called "news" and technical analysis online shows that basically by using strict indicators you expose yourself to the big sharks - they know how you think, they know exactly what you are about to do.
So in time I came to follow a very simple approach - the base idea of all markets - "buy cheap, sell expensive" (shorting as opposite) by waiting some big 4-6 weeks move for like 500-600 pips and then get a retrace or reverse. I'm doing this simply by placing an order (avoid using technical "sweet spots") with reasonable stop loss and I wait the order to kick-in - usually the order is at such point where retrace or reversal is evident. If the order goes right - I ride the train - sometimes 4-6 weeks to get nice profit - if it fails - cut losses very quickly and wait again on same spot or very close. Pure statistics - and it works - profit volume is not the same every time, sometimes in 4-6 weeks I barely make profit (cover previous losses), but in the end of the year - things are pretty nice and stable in % gain (25-30%).
This way I also avoid the dangerous day-trading - pretty exhausting in emotional aspect and not too effective I would say.
So - FX IS a profitable enterprise - but you need to avoid what crowds do I think. I'm now focused on a way to gain good capital volume, so the year % looks more attractive in absolute terms.
Happy trading!
