You do not know how to trade | Forex Factory

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You do not know how to trade

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  • Do you know how to trade?
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  • #1
  • First Post: Mar 8, 2015 6:45am Mar 8, 2015 6:45am
I was never good at writing and i am not good at writing now but i will give it a shot; i will share little of my experience and knowledge in this thread; there will be no systems or indicators shared in here and i will not discuss any indicators or systems, just knowledge and information for whom it may concern; i am not looking for thank you's and i do not need approvals or denials of the things that will be shared in here. Please excuse my english if i will make grammar or spelling mistakes at times.
The title will be offensive for some and a wake up call for others; only you decide in which category want to be; title is inspired from the text of another thread and i believe to be the very first step stone for every trader that is looking for profits in forex; this should be the line that a trader must hear and understand before stepping into the "Oz" of forex in the first place.
I want to simplify the market view from begining of times as much of possible; in my view and how all my trading experience started the market could be comprised in its simplest form as:
http://i1382.photobucket.com/albums/...pssemwslmx.jpg
  • #2
  • Mar 8, 2015 7:32am Mar 8, 2015 7:32am
I use a technical strategy that has about a 75% winning percentage. My problem is patience and discipline which makes it a 50/50 game for me. I am working on it though.
  • #3
  • Mar 8, 2015 7:54am Mar 8, 2015 7:54am
The price is always moving either up or down; the price does not move left or right; if a trader knows how to watch and trade a monthly chart then a trader can watch and trade a 1 minute chart but this depends on the trader's patience, account size and trading style; every trader is different and will take slightly different trades even if trading by the same rules of a system or strategy.
When a trader watches monthly charts he or she only sees the same price as the one watching the 1 minute or 1 hour charts only that is a comprised data, information.

240 MINUTES
http://i1382.photobucket.com/albums/...ps5zek6hpx.jpg
60 MINUTES
http://i1382.photobucket.com/albums/...ps51xktzy8.jpg
30 MINUTES
http://i1382.photobucket.com/albums/...pslfwprebt.jpg
15 MINUTES
http://i1382.photobucket.com/albums/...psbtjghrdt.jpg
5 MINUTES
http://i1382.photobucket.com/albums/...psvhl7vnlm.jpg
  • #4
  • Mar 8, 2015 7:58am Mar 8, 2015 7:58am
I do not know how to trade.
  • #5
  • Mar 8, 2015 8:46am Mar 8, 2015 8:46am
Quoting mark72
The price is always moving either up or down; the price does not move left or right; if a trader knows how to watch and trade a monthly chart then a trader can watch and trade a 1 minute chart but this depends on the trader's patience, account size and trading style; every trader is different and will take slightly different trades even if trading by the same rules of a system or strategy. When a trader watches monthly charts he or she only sees the same price as the one watching the 1 minute or 1 hour charts only that is a comprised data, information....
we don't predict, we only ride
  • #6
  • Mar 8, 2015 9:35am Mar 8, 2015 9:35am
this seems interesting, please keep going master!
  • #7
  • Mar 8, 2015 12:33pm Mar 8, 2015 12:33pm
Every trader that follows success in forex trading (day trading or long term trading) must understand that there are a few general rules that apply to every trader, every system, every pair or commodity, just like the horoscope predictions about each sign that follows certain 'rules' (eg. Leo is a strong and honest character); the horoscope might not be right every time or most of the time for the details, but when you encounter a Leo person you know that a strong person is in front of you.
One of these rules that i will try to put together here , is that you must always use a stop loss level; indeed price might come back to the same level somewhere in the future, but not knowing when in the future that is and what price will do, how low or high it will go in the meantime, the decision to use a stop loss is the right decision.

http://i1382.photobucket.com/albums/...pszigfex8k.jpg
  • #8
  • Mar 8, 2015 1:01pm Mar 8, 2015 1:01pm
Quoting mark72
the decision to use a stop loss is the right decision. {image}

i use mental stop ..
  • #9
  • Mar 8, 2015 4:28pm Mar 8, 2015 4:28pm
Attached Image
  • #10
  • Mar 8, 2015 11:51pm Mar 8, 2015 11:51pm
You dont know how to trade either.
  • #11
  • Mar 9, 2015 4:54am Mar 9, 2015 4:54am
The thing a trader need to do and learn it fast in order to accomplish a goal is to focus on trading only when being in front of the charts; no distractions.
Another simple rule of trading that has been said all over but many traders fail to understand and follow is "FOLLOW THE TREND"; this rule only will increase the chances of achieving a traders goals.
Trend can be different by looking at different time frame charts and it is quite hard for many traders to learn how to see the current prevailing trend.

240 MINUTES
http://i1382.photobucket.com/albums/...pszkqryipx.jpg
60 MINUTES
http://i1382.photobucket.com/albums/...pshaiybvf8.jpg
30 MINUTES
http://i1382.photobucket.com/albums/...pskomwuxpg.jpg
5 MINUTES
http://i1382.photobucket.com/albums/...ps1f8els10.jpg

A trend can not be described as a minimum amount of pips after price moved up or down; a trend can be considered as any move between two points that will make your trade achieve green pips; just like any business where the sale price should cover all costs, the smae a trader should only enter those trades that will cover all costs and step into the profit zone.
  • #12
  • Mar 9, 2015 5:11am Mar 9, 2015 5:11am
The forex market might seem very irrational but it is quite the opposite of that and in fact it is rational to a very high degree that lets us trade it and obtain profits; the market follows certain laws and rules in nature as incredible as it might sound. The forex market is random and predictable at the same time; by predictable i do not refer to the fact that a trader will know the exact price where the market is heading and i do not imply that a trader should try and predict where the market is heading.
By drawing a random horizontal line on any time frame chart you will observe that price will cross that line and price will bounce of that line; there is no other thing that price will do when reaching a line. As soon as a trader understands this it will all become more clear as what not to look for; sometimes it is more important for a trader to know what not to do than to know what he has to do.
Let us take for example the human dna and the primate chimpanzee dna; they are so similar around 98.5% and still it makes the biggest difference. Such a small difference in such a small but complex structure as the dna.
  • #13
  • Mar 9, 2015 5:45am Mar 9, 2015 5:45am
Experienced and profitable traders are not depending on only one or two elements in their trading; their trading systems are complete, full and autonomous systems comprised of :
- trading strategy
- psychology
- money management
- entry
- exit.
By not completely defining or using any one of the above a trader can not achieve the goals he has and profit from trading; every component of the system must be used at all times; every component must be clearly defined like when someone will wake you up in the middle of the night and asks you what is 1+1.
The trading strategy is what every trader uses for his trading being the cross of two or more moving averages or pure price action.
Psychology is what makes as unique in this universe; psychology can and must be developed in order to achieve focus, discipline and patience.
Money management has to be adapted to every traders account size and trading system, considering consecutive losses in the system, stop loss amount and appetite for risk.
Entry is very important in a traders portfolio; if the entry is flawed and bad like selling at the very low of a move or trend the only thing that will save your account is your stop loss or bluntly said the exit.
Exit is as important as the entry in a traders portfolio; if the exit is flawed and is not clearly and logically defined than a winning trade could turn very easy in a losing trade; waiting for 200 pip move in a low volatility market with 100 pip average move is wrong.
  • #14
  • Mar 9, 2015 6:07am Mar 9, 2015 6:07am
It does not matter what i have done for a living before trading the forex market but i can say that it helped me a lot to understand certain things and to use my life experience.
The forex market is simple at first when watching a chart and the trader says to himself "I can do this, no problem"; but the forex market as easy as it is to trade is not simple at all; just like the dna that makes as who we are as tall or fat or skinny, with blue or green eyes, it follows rules; God is in the details.
The whole universe is governed by laws and are very different from what is generally believed; they are not written black on white; they are general laws that contain general constants and they are made so creativity is infinite.
Just like the world and life forms evolved due to our free will, the same way the forex market follows certain rules and constants.
Dna is a double helix and is made up of a smaller double helixes which is made up of other double helixes and so on.
http://i1382.photobucket.com/albums/...ps6fto6cty.gif
  • #15
  • Mar 9, 2015 6:09am Mar 9, 2015 6:09am
Inserted Video
  • #16
  • Edited 9:07am Mar 9, 2015 9:05am | Edited 9:07am
Traders are looking at charts which depicts the market and therefore price in candlestick, bar or line graphics; lets say that every price that is shown in a traders chart will draw a dot or point;
http://i1382.photobucket.com/albums/...psgt8g31mo.jpg

This is the simplest form of the price that a trader should understand.
  • #17
  • Mar 9, 2015 10:41am Mar 9, 2015 10:41am
May I ask how long have you been trading, mark72?

Thanks
  • #18
  • Mar 9, 2015 11:09am Mar 9, 2015 11:09am
Quoting mark72
Traders are looking at charts which depicts the market and therefore price in candlestick, bar or line graphics; lets say that every price that is shown in a traders chart will draw a dot or point; {image} This is the simplest form of the price that a trader should understand.
yes a point, instead of a circular ring shape.
we don't predict, we only ride
  • #19
  • Mar 9, 2015 11:39am Mar 9, 2015 11:39am
Exactly.

Quoting metta87
{image}
Attached Image
  • #20
  • Mar 9, 2015 11:45am Mar 9, 2015 11:45am
Yeah... fractals might be what you're onto here... google it.

It's hard not to be offensive in reply to your the sweeping statement thread title. Someone who obviously knows very little being so condescending probably isn't the best way to introduce yourself to the forum.

Save yourself the time, this isn't going to end well.


Quoting mark72
It does not matter what i have done for a living before trading the forex market but i can say that it helped me a lot to understand certain things and to use my life experience. The forex market is simple at first when watching a chart and the trader says to himself "I can do this, no problem"; but the forex market as easy as it is to trade is not simple at all; just like the dna that makes as who we are as tall or fat or skinny, with blue or green eyes, it follows rules; God is in the details. The whole universe is governed by laws and are very...
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