Guys(and gals), after spending almost a decade trading the fx market pretty much on daily basis, I have come to the conclusion that everything works, provided that you know what you doing. In the beginning, when I started trading, it took me almost 3 years and a lot testing ( hundreds of methods and systems , trial and error) to finally realize that the "holy grail" was already in my head. In trading, its not the method that matters the most, but the mindset! Most people, who spend enough time in the market and gain experience, eventually develop with pretty solid methods and systems. The reason why many experienced traders fail is mostly found in their heads.
What doesn't work?
Stupidity.(and lack of knowledge)
Laziness.
Lack of proper motivation.
Negativity.
Excuses.
-----------------------------------
What works?
Knowledge! Never stop learning. (You have to evolve and improve your skills constantly. There is no such thing as being too smart or too skilled)
Hard work! I believe that trading should be approached seriously. If you just want to gamble - go to some casino. At least there you are going to have fun and get free drinks while losing your money.
Persistency. You have to persist, and not to give up on the first small obstacle or failure. You see, there are a lot of very smart people in the markets, and the only way to beat them is persistence and hard work. No need to be rocket scientist, just learn and work harder than 99% of the people. ("The harder you work, the luckier you get.")
Proper motivation. You need clear goals and solid reasons why you trade.
You must have positive thinking and absolute confidence in your abilities. (Ignore the losers and the negative people) You really have to believe that you can make it to the top 1%. Mediocrity Sucks! Aim for the top.
Consistent framework and method! Find good methodology that fits your personality, something that makes sense to you. And once you find it - just stick to it!
Don't jump from one system/method to another every week.
I can't stress enough now important is to have consistent framework. You have to have systematic structure in your thinking.
You must have daily trading routine and methods and do the same thing day in day out. Yes it sounds boring, but it works!
Understand the game and yourself! Know where you are in the big picture. What are your advantages, and your weak sides.
Because you are individual trader, you don't have to answer to anyone. (Unlike institutional traders who are under constant pressure from their bosses, investors, regulators......).
Having small capital is NOT disadvantage! It's the opposite! You are small and nimble and that is great advantage in trading. Because you trade small size you don't experience liquidity issues like the big traders. You can take advantage of so many opportunities on the small and micro time frames, which are sitting under the radar of the big players. You also have plenty of leverage available. (The big players don't have that luxury). There is no need to chase the big moves. You can make a fortune in the long run by taking just a few pips at the time many times during the day. (The big traders and the funds can't do that).
It's, amazing how many people lose money while chasing those 100, 200, 300 pips moves.... What's the point? What's the point to wait for days or weeks to make the same % profit that you can make intraday in a few hours (sometime minutes). In today's markets with all that awesome technology......the ONLY potentially valid argument against day trading /scalping is that the transaction cost is eating larger % of your profits. But so what? Intraday you have 10 times more opportunities and if you have solid method/system, the transaction cost is easy to overcome. Plus, today is almost 3 times cheaper to trade then 5 -10 years ago.
The reality of trading is that consistently averaging 10-20 pips daily (200-300 pips monthly) can make you rich. This target is real, something you can make almost every day. The average daily range in the major pairs is over 100 pips and inside this range there are at least 15-20 good moves (over 10 pips) every day. Think about it! How hard is it to catch 10-15 % of the daily range or just a few of these small intraday moves?
I am telling you - this is the real deal and it works! It's realistic and achievable goal.
Think what you can make today. Forget about the big money and the big "sexy" trends! Detach yourself from the value of the money and you are going to take your trading to the next level. Just focus on making pips every day, every week and every month. Make that your new job. Then as the account grows, slowly increase the lot size while keeping the same % of risk.
This is how you make a career in trading - by consistent small steps, laying just one brick at a time.
At first the growth looks slow and your equity barely creeps up, but if you keep doing that consistently, after a few years you are like: WOW, LOOK AT THAT! The equity curve goes through the roof! Exponential growth - the most powerful thing in the universe! Be smart and take advantage of that force.
What doesn't work?
Stupidity.(and lack of knowledge)
Laziness.
Lack of proper motivation.
Negativity.
Excuses.
-----------------------------------
What works?
Knowledge! Never stop learning. (You have to evolve and improve your skills constantly. There is no such thing as being too smart or too skilled)
Hard work! I believe that trading should be approached seriously. If you just want to gamble - go to some casino. At least there you are going to have fun and get free drinks while losing your money.
Persistency. You have to persist, and not to give up on the first small obstacle or failure. You see, there are a lot of very smart people in the markets, and the only way to beat them is persistence and hard work. No need to be rocket scientist, just learn and work harder than 99% of the people. ("The harder you work, the luckier you get.")
Proper motivation. You need clear goals and solid reasons why you trade.
You must have positive thinking and absolute confidence in your abilities. (Ignore the losers and the negative people) You really have to believe that you can make it to the top 1%. Mediocrity Sucks! Aim for the top.
Consistent framework and method! Find good methodology that fits your personality, something that makes sense to you. And once you find it - just stick to it!
Don't jump from one system/method to another every week.
I can't stress enough now important is to have consistent framework. You have to have systematic structure in your thinking.
You must have daily trading routine and methods and do the same thing day in day out. Yes it sounds boring, but it works!
Understand the game and yourself! Know where you are in the big picture. What are your advantages, and your weak sides.
Because you are individual trader, you don't have to answer to anyone. (Unlike institutional traders who are under constant pressure from their bosses, investors, regulators......).
Having small capital is NOT disadvantage! It's the opposite! You are small and nimble and that is great advantage in trading. Because you trade small size you don't experience liquidity issues like the big traders. You can take advantage of so many opportunities on the small and micro time frames, which are sitting under the radar of the big players. You also have plenty of leverage available. (The big players don't have that luxury). There is no need to chase the big moves. You can make a fortune in the long run by taking just a few pips at the time many times during the day. (The big traders and the funds can't do that).
It's, amazing how many people lose money while chasing those 100, 200, 300 pips moves.... What's the point? What's the point to wait for days or weeks to make the same % profit that you can make intraday in a few hours (sometime minutes). In today's markets with all that awesome technology......the ONLY potentially valid argument against day trading /scalping is that the transaction cost is eating larger % of your profits. But so what? Intraday you have 10 times more opportunities and if you have solid method/system, the transaction cost is easy to overcome. Plus, today is almost 3 times cheaper to trade then 5 -10 years ago.
The reality of trading is that consistently averaging 10-20 pips daily (200-300 pips monthly) can make you rich. This target is real, something you can make almost every day. The average daily range in the major pairs is over 100 pips and inside this range there are at least 15-20 good moves (over 10 pips) every day. Think about it! How hard is it to catch 10-15 % of the daily range or just a few of these small intraday moves?
I am telling you - this is the real deal and it works! It's realistic and achievable goal.
Think what you can make today. Forget about the big money and the big "sexy" trends! Detach yourself from the value of the money and you are going to take your trading to the next level. Just focus on making pips every day, every week and every month. Make that your new job. Then as the account grows, slowly increase the lot size while keeping the same % of risk.
This is how you make a career in trading - by consistent small steps, laying just one brick at a time.
At first the growth looks slow and your equity barely creeps up, but if you keep doing that consistently, after a few years you are like: WOW, LOOK AT THAT! The equity curve goes through the roof! Exponential growth - the most powerful thing in the universe! Be smart and take advantage of that force.
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