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Taking the EASY money

  • #1
  • First Post: Dec 30, 2013 3:09pm Dec 30, 2013 3:09pm
What I want to talk about is the EASY money in trading. Is there such a thing? Yes there is. And I'll tell you what definitely ISN'T the easy money... Trading against a trend or trading a market that is all over the place. That's just asking for pain.

The easy money comes from the trend. Patiently waiting for a high probability set up, using your own method, to go along with the trend and extract that EASY money, which is at the very least 50-100 points.

People talk down indicators all the time saying they don't work etc etc, well indicators actually do work --- ON TRENDS that is. Does it mean you'll have an indicator that is going to profit you 100% of the time? No, never happening, but maybe 60-80% of the time, depending on how strong the trend is.

I've lost a ton of money trading. My main mistake has been trading against the trend and of course not managing risk properly. But as far as the actual trading goes the #1 mistake has been not sticking with the trends, that's 100%.

There are plenty of currencies, commodities and stock markets out there. There is no excuse to not find a trend and patiently wait for a proper set up to extract pips out of the market.

It's not about going for home runs either, it's about being consistent. If you find your niche and you're a consistently profitable trader, don't worry about your position size not being big enough, in time it will be and you will be rewarded properly for your discipline and patience.

That's all for now.

Go get that EASY money.
  • #2
  • Dec 30, 2013 8:03pm Dec 30, 2013 8:03pm
Subscribe.
  • #3
  • Dec 30, 2013 9:14pm Dec 30, 2013 9:14pm
I could have used this post several years ago when I was getting started, thanks for sharing, I guess I would have ignored it back then chasing my imaginary millions.
  • #4
  • Dec 31, 2013 4:30pm Dec 31, 2013 4:30pm
@ Ck87

Thats absolutely correct. however the real problem is how to decide if trenf is up or down.
You look at one timeframe you see trend is up,you look at another timeframe you its down.
If you use ema or sma, again you the trend direction will depend on the ma period used.

Even when the trend becomes so obvious on some time frame it will be too late to join it.

So as I see it is Easy money if only you happened to join the trend before its too late whitch is Difficult.

Even the ones who trade against the trend are hoping to join the new emerging trend.
No guts, no glory
  • #5
  • Edited 7:10pm Dec 31, 2013 5:28pm | Edited 7:10pm
Quoting abokwaik
@ Ck87 Thats absolutely correct. however the real problem is how to decide if trenf is up or down. You look at one timeframe you see trend is up,you look at another timeframe you its down. If you use ema or sma, again you the trend direction will depend on the ma period used. Even when the trend becomes so obvious on some time frame it will be too late to join it. So as I see it is Easy money if only you happened to join the trend before its too late whitch is Difficult. Even the ones who trade against the trend are hoping to join the new emerging...

Hi abok, well to be more specific I'm talking about intraday setups here that go along with the daily/weekly/monthly trend, with a target of 50-100 pips. Plus if there's even a question in your mind about whether the trend is up or down, then you shouldn't be trading whatever instrument it is that you're looking at.

A couple of examples here and the EMA's aren't even relevant, these are clear trends. Now, they may start reversing soon, but for now these are trends and if you wait for high probability set ups using your own method, you should have an edge.
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  • #6
  • Dec 31, 2013 10:56pm Dec 31, 2013 10:56pm
Good thread.

Big money is definitely made in trend following.
It takes a lot of guts to stay in a trend, to trust the trend.
Strong trends mostly extend much further than expected.
At present USD/JPY is a confirmed uptrend.
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Never Trade without a defined risk, never, never, never.
  • #7
  • Jan 1, 2014 3:23am Jan 1, 2014 3:23am
Quoting m4ni4c
I could have used this post several years ago when I was getting started, thanks for sharing, I guess I would have ignored it back then chasing my imaginary millions.
everyone should experience in it include me even @ck87, just see the positive side lesson we won't forget.
About chasing imaginary millions we still have opportunity.


Quoting Ck87
#1 mistake has been not sticking with the trends, that's 100%
I will remember that.

Quoting Ck87
trading a market that is all over the place.
What does it mean ?


I will follow your thread.
  • #8
  • Jan 1, 2014 3:36am Jan 1, 2014 3:36am
Quoting Ck87
{quote} Hi abok, well to be more specific I'm talking about intraday setups here that go along with the daily/weekly/monthly trend, with a target of 50-100 pips. Plus if there's even a question in your mind about whether the trend is up or down, then you shouldn't be trading whatever instrument it is that you're looking at. A couple of examples here and the EMA's aren't even relevant, these are clear trends. Now, they may start reversing soon, but for now these are trends and if you wait for high probability set ups using your own method, you should...
As most of the fellows here in FF, I want to learn, and help others.

If every one agrees on a specific trend, no one will lose, as all know that you should not fight the trend. The thing is you have multiple trends at the same time on different scales, and this is what make it difficult.

Attached is the Weekly chart for AUD/USD, in my view its in up-trend and the recent decline is just a retreacement, while on the daily chart that you have posted its in a down-trend. This is exactly what I'm talking about.

Even on a specific time-frame, you can see different trends if you zoom-out, or zoom-in. So, it might not be easy as you think.
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No guts, no glory
  • #9
  • Jan 1, 2014 5:27am Jan 1, 2014 5:27am
Silly me. Wasting a year and a few k going for the HARD money and not the easy money. What was I thinking!

{sigh} This is kind of a stupid (mocking? attention seeking?) thread title.

I'm not saying it is a stupid thread, as trading with the trend is a slightly 'safer' (smarter?) way to trade to make your pips, but certainly not definitively so. There is a good % of pips to be had working retracements and reversals in lower TF's, but when you do it, I'd suggest it is wise to review the associated higher and lower TF's to decide whether you're comfortable trading when TF's are out of sync.


Easy? I wish it was. It certainly is easier than many extreme voices posting in this forum would have you believe. "Battle the market", "treacherous", "fight for every pip", "win the money the banks are trying to take from you", blah blah blah. All psychological noise that is detrimental to trading consistently and profitably.


Overall, relax, lower your trade size to reduce your stress (as stress/tension probably can't be completely eliminated) and try to trade consistently. That will almost certainly make your trading easier* than it may have been in the past.



*assuming having less stress with trading is a way of making it 'easier'
  • #10
  • Jan 1, 2014 6:44am Jan 1, 2014 6:44am
Quoting FxGladiator
Good thread. Big money is definitely made in trend following. It takes a lot of guts to stay in a trend, to trust the trend. Strong trends mostly extend much further than expected. At present USD/JPY is a confirmed uptrend. {image}
No, it doesn't take guts and no they don't extend much further than expected. You just have to understand why the trend is in place and what it takes to dissolve it...

Oh but then it's not easy money anymore, cause people have to use their brain and not watch some crap on tv. So better we stick to the "let's have a lot of guts" mentality

I love the ff crowd, always reminds me that there are tons of people just praying to get their asses handed to them
  • #11
  • Jan 1, 2014 7:59am Jan 1, 2014 7:59am
@Ck87:


Looking at the daily chart for AUD/USD posted by Ck87, I have the following comments:

1. When the down trend started in May it was so steep it didn't give a chance to join it. It didn't make a good correction (either through Fibo, or MA bounce) until September. I will discuss the details of this point at another post. But what I mean here is that It was very difficult to join the trend (which started as a reversal of the previous up-trend started from June-2010).

2. When the First Double Bottom (at point A) formed, I think it was wise to trade it, even though it was against the recent trend. And who ever traded it made a lot of money.

3. Now at the current price we have the following:
- A smaller double bottom formed (at point B)
- Target for Head&Shoulders pattern formed at point C, and completed and target was hit at point B.
- Points A & B form a larger Double Bottom.

So looking at the current daily chart, at the current price, are we going Short or Long. No body know for sure.

We'll have to wait for a Confirmation.

This confirmation could be :
1. Break Up of the smaller double bottom at point B at 0.8960, aiming for a small target (100-200 pips).
2. Break Up of the Larger double bottom (at points A&B) at 0.9770, aiming for a big target (500-1000 pips).
3. Break of the recent Low at 0.8820, for the down trend to complete the second leg aiming for (400-600 pips).

Suppose any of the above confirmations happened, are going to jump right away ? or wait for a re-test. For example what did happen to the people who went short when it recently broke the low of August 5, 2013 at 0.8846 ?.

Regards,
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No guts, no glory
  • #12
  • Jan 1, 2014 10:59pm Jan 1, 2014 10:59pm
Quoting Custos
{quote} No, it doesn't take guts and no they don't extend much further than expected. You just have to understand why the trend is in place and what it takes to dissolve it... Oh but then it's not easy money anymore, cause people have to use their brain and not watch some crap on tv. So better we stick to the "let's have a lot of guts" mentality I love the ff crowd, always reminds me that there are tons of people just praying to get their asses handed to them

Your comments added no value to this thread and for traders in general. Instead of acting like a sarcastic brat. Tell us something useful.
At least I made some valid points and showed a chart in relation to them.
The reason I said it takes gut to stay in a trend is because most traders are always afraid of a reversal and get out of a trend too early.
Never Trade without a defined risk, never, never, never.
  • #13
  • Jan 1, 2014 11:57pm Jan 1, 2014 11:57pm
Quoting FxGladiator
{quote} Your comments added no value to this thread and for traders in general. Instead of acting like a sarcastic brat. Tell us something useful. At least I made some valid points and showed a chart in relation to them. The reason I said it takes gut to stay in a trend is because most traders are always afraid of a reversal and get out of a trend too early.

You're absolutely right. It's a known thing losing traders have a harder time staying in when they're right than when they're wrong.

and Abok, it is looking like we're ready for a Gold rally and probably an AUD/USD rally as well. There's definitely money to be made counter-trend but it is way higher % to stick with the trend until it is over. I'm sure if AUD/USD rallies to 93-95 range and gold to 1300-1500 area, there will be very high % sell set ups. Could always be wrong.

The way I like to trade is Trending Momentum. So to see AUD/USD and GOLD rally nicely from here, that would only provide me with a high probability trending momentum set up, where the trend is still down for both but momentum becomes overbought, and if that momentum is on the daily/weekly, it will provide for a bigger move.

Example on AUD/USD weekly chart
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  • #14
  • Jan 2, 2014 12:02am Jan 2, 2014 12:02am
Example from Gold on weekly.
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  • #15
  • Jan 2, 2014 1:19am Jan 2, 2014 1:19am
i always look for the easy way to trade, but its started from our mindset,
think that easy, and it'll be easy...
nice thread Ck87, i will follow this thread.
  • #16
  • Jan 2, 2014 2:30am Jan 2, 2014 2:30am
Quoting Ck87
Example from Gold on weekly. {image}

I like this and will follow this thread.. Trade with the trends, rather than trying to pick tops and bottoms.
. Trying to pick tops and bottoms is another common fx trading mistake. If you're going to trade tops and bottoms, at least wait until the price action actually confirms that a top or a bottom has been formed before you take a position in the market. Trying to pin-point tops and bottoms in the foreign exchange market is very risky, but exercising a little patience and waiting for a proven top or bottom to form can increase your odds of profiting and somewhat reduce your risk.
  • #17
  • Jan 2, 2014 3:56am Jan 2, 2014 3:56am
  •  denozi
  • | Joined Aug 2012 | Status: trade with Patient & Discipline | 82 Posts
It's a good to learn here.
I am in for it.

Thank for sharing
I am a new 2 Forex- Your help would be greatly appreciated
  • #18
  • Edited 3:32pm Jan 2, 2014 2:55pm | Edited 3:32pm
My pick for the best fresh trend of the year- selling crude oil.
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  • #19
  • Jan 5, 2014 7:54am Jan 5, 2014 7:54am
i am a newbie, and i found it DO takes a lot gut to stay in a trend, i always exit tooo early.
I think i have to do more exercise. my method is: once got some pips profit, i'll move stoploss to breakeven point, if lucky, i got more pips, i'll close half my position, let the other half go as further as possible.
  • #20
  • Last Post: Jul 24, 2014 1:25pm Jul 24, 2014 1:25pm
Obvious trends right now are….

S&P / Us market stock indices going up….

Grains selling off….


Metals are still basically in a downtrend but maybe we can say they're sideways now?
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