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How to make money consistently trading forex?

  • #41
  • Jul 30, 2015 10:08am Jul 30, 2015 10:08am
Quoting PierreMiller
{quote} In the small money people are more at risk. If you have $ 1,000 and you open 1 lot, 10 points is $ 100. But if you have one million dollars, you do not dare to open 1,000 lots.
then watch the dom, the deep of market, the liquidity provider. even that dom is not exact calculation of the whole world but at least give some hindsight. if on that dom there not sufficient to settle that 1000 lots why should place that amount.
we don't predict, we only ride
  • #42
  • Jul 30, 2015 10:10am Jul 30, 2015 10:10am
Quoting mrdetermined
{quote} Awesome twist in this. "You need confidence to be consistently profitable and you need to be consistently profitable to have confidence."
I think it's worth mentioning that IMO, consistency is also relative. There are traders who make a little profit most days of the week, and there are traders who lose most days of the week, but then have a enormous profit in one month or two that makes them money for the entire week. In both cases, both traders could be considered consistently profitable. One trader is just consistent over a day to day period and the other is consistent over a year to year basis. To the day trader, the other trader type might seem inconsistent by looking at his losing months, but that's obviously false if he is net profitable every year.
  • #43
  • Aug 5, 2015 7:32pm Aug 5, 2015 7:32pm
Quoting verv
{quote} +10R added to equity, followed by several months of break even trading with winners covering losses, followed by a further +36R added to equity. My stats for that period was 30% win rate. Average losing trade 1R Average winning ~7R Im losing close to 70% of my trades and going months with no net gain on my account. I know of only one person who made 2-4% nearly every month, and he isn't around any more which makes me think he had a blowout. Every other person I know who is profitable tends to go a month or several months without any significant...
I am the exception. Why go months without any gains. I don't get it. Why not make 100's of pips every week and grow your equity on a nice steady positive incline.

Where do you get 2% a month from? Do you mean 2% of your total trading account? This is where I lose people with the statistics. If everyone claims you should be trading no more than 1%-2% of your account, wouldn't even a mildly successful trader be making a couple of net profitable trades a week and increasing their account by a percent or two a week?

Example- 100k account you make a 1k trade a few times a week and you win 3 lose 1 how do you get 2% a month if you are net winning every week?

The only thing I can say is if you are going 3 months without adding equity you may want to reconsider your trading strategy. I am well aware of the turtle trading strategy and other "trend following" strategies where the idea is to use repeated "tiny" stops and eventually catch the big long trend and ride it up for thousands of pips with a 20 pip stop. All I can say is good luck. I hope your 20 pip stop survives smart money's 100 pip shakeouts. And good luck finding the thousands of pips trends in todays range bound ping pong price action where the price stays in a 500 pip range for 2 years and bounces back and forth.
  • #44
  • Aug 5, 2015 11:10pm Aug 5, 2015 11:10pm
Quoting verv
{quote} +10R added to equity, followed by several months of break even trading with winners covering losses, followed by a further +36R added to equity. My stats for that period was 30% win rate. Average losing trade 1R Average winning ~7R Im losing close to 70% of my trades and going months with no net gain on my account. I know of only one person who made 2-4% nearly every month, and he isn't around any more which makes me think he had a blowout. Every other person I know who is profitable tends to go a month or several months without any significant...

I hear you verv. One of the reasons I trend trade is that it is one of the few methods that can actually demonstrate long term sustainable results. Below is an aspirational audited performance table of a well know trend trading program and the resulting equity curve produced looked at through long term lenses. However look at the worst drawdown stats and also the string of monthly losses in the performance table as well. It is just one of the things you need to suck up as a trend trader if you want to attempt to produce an equity curve of this nature.

Each to their own choice of trading technique, but the stats at least for trend traders demonstrate that when talking of an 'edge' you really need to look at the Law of Large numbers to ensure you are not cherry picking.

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  • #46
  • Aug 6, 2015 5:36am Aug 6, 2015 5:36am
Quoting Copernicus
{quote} I hear you verv. One of the reasons I trend trade is that it is one of the few methods that can actually demonstrate long term sustainable results. Below is an aspirational audited performance table of a well know trend trading program and the resulting equity curve produced looked at through long term lenses. However look at the worst drawdown stats and also the string of monthly losses in the performance table as well. It is just one of the things you need to suck up as a trend trader if you want to attempt to produce an equity curve of...
Trading with "trends" is certainly a viable trading strategy if it is done correctly. Agreed. There are others. Every strategy has its plus and minuses. What is best is what works for your personality, your lifestyle, your capital size, what you are comfortable handling.

The market is basically an auction where buyers and sellers get in and out. Those who buy and sell at the right levels win, those who buy and sell at the wrong levels lose. That's it. There is nothing more to it.

You cannot profit consistently unless you have confidence in your abilities. You cannot have confidence unless you can win consistently. Its a Catch-22 and until you figure than out you may be spinning your wheels.

Excitement and boredom are 2 of the worst account killers.
  • #47
  • Aug 6, 2015 6:33am Aug 6, 2015 6:33am
Quoting Giganntor
{quote} I am the exception. Why go months without any gains. I don't get it. Why not make 100's of pips every week and grow your equity on a nice steady positive incline. Where do you get 2% a month from? Do you mean 2% of your total trading account? This is where I lose people with the statistics. If everyone claims you should be trading no more than 1%-2% of your account, wouldn't even a mildly successful trader be making a couple of net profitable trades a week and increasing their account by a percent or two a week? Example- 100k account you...
OK thanks.

#Note to self, no more 20 pip stop losses.
#Note to self, don't trend trade in a range.

New and exciting information.
  • #48
  • Aug 6, 2015 6:37am Aug 6, 2015 6:37am
Quoting Copernicus
{quote} I hear you verv. One of the reasons I trend trade is that it is one of the few methods that can actually demonstrate long term sustainable results. Below is an aspirational audited performance table of a well know trend trading program and the resulting equity curve produced looked at through long term lenses. However look at the worst drawdown stats and also the string of monthly losses in the performance table as well. It is just one of the things you need to suck up as a trend trader if you want to attempt to produce an equity curve of...

Thank you.

Yes day trading is possible but consistently? Never.

Trend trading is easier, and harder. Holding onto winners is the hard part, as is taking lots of small losing trades. As demonstrated in your analysis, it isn't consistent in the short term either, but does work longer term.

''They say you never go broke taking profits. No, you dont. But neither do you grow rich taking a four-point profit in a bull market.''
  • #49
  • Aug 6, 2015 6:25pm Aug 6, 2015 6:25pm
Trading Forex is one of the most difficult jobs you can find because it deals a lot with your emotions, you can only control one thing and that's your risk so stick to controlling that, best at 1%.
Always think in terms of points/pips gained and not money.

In Forex simple things just works time and time again, you can trade consistently simply drawing some horizontal lines and trend-lines on your chart (any time frame) and watch how price reacts when it gets to those lines, but buy low and sell high using those lines as guides when to buy or sell any particular pair.
Forex markets are very volatile now and I know you can make money trading any timeframe, just control your risk 1% and set a limit of loss or profit at which you would stop trading in a day.
Buying the currency being demanded Selling that being supplied
  • #50
  • Aug 6, 2015 6:44pm Aug 6, 2015 6:44pm
Nice Financier :-)

Simplicity works. I think we get a bit too smart for ourselves thinking we as rational human beings can outsmart the market. The best strategies I have come across time and time again are the simplest. As soon as I try to impose rational thought in my trading strategies, performance inevitably takes a hit. A long painful history in trading, although frustrating actually helps to overcome any human bias we might have about our supposed cleverness. Most of us have a short painful history....the trick is to ensure you have a long painful history before that light bulb flashes and for that, risk management is paramount.
  • #51
  • Aug 6, 2015 6:54pm Aug 6, 2015 6:54pm
If you are new to forex, meaning you've been at it less than a year, then you should set small attainable goals. My goal is 20 pips a day. Then I just gradually increase my lot size as my account grows. My rules for this are:
1. Trade when it's the best time for me, as I will then make the best decisions
2. If 20 pips are gained I am done for the day (this reduces exposure to the market so I don't lose my gain)
3. If I lose 20 pips in the day I am done. (this prevents more loss from "revenge" trading mentality.

That's it...you can apply this methodology to any strategy.

It helped me a lot and I go back to it with any new strategy I'm testing out.

Hope it helps others
~5StarForexSystems~
  • #52
  • Aug 10, 2015 6:30am Aug 10, 2015 6:30am
Very interesting topic. This is not just in forex, all above is true in any market. What I can add to this and suggest to a newcomer traders is to stick to a method that is as much mechanical as possible (i.e. strict rules for entry, exit, trade management). Based on my own experience and I trade for about 10 years now, this simple fact could save a lot of money to a new trader. And if you got a proven, tested and reliable mechanical method that works just stick to it!
  • #53
  • Last Post: May 6, 2018 9:51am May 6, 2018 9:51am
Making money consistently doesn't mean you have to make profit everyday. It is a long term business. When you are profitable over a year and so, you can assume that you are making money consistently. In one year you see almost all type of market i.e trending market and sideway market.
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