New Guy, Seeking Valuable Advice

A little background: I am an aspiring trader. 21 years old. I started in June 2015, with zero background in Forex. I paid an institution $5,000 USD to "teach" me how to trade. It was presented in a manner that would make anyone think that trading is quick, easy money. They taught me how to use their industry-redefining indicators - accurate 90% of the time. Webinar after webinar, mind-blowing demo account growth and a 7:00pm meeting every Wednesday. 3 months later, they stopped communicating with me after receiving their last payment. Suspicious...but I went live anyways.

$1,500 USD. Ready to turn it into millions, move to Cali and buy that 2016 BMW M3 in the Spring. Starting September 8th, 2015, I lost all of it except for the $2.71 that is currently safe in my account. I refuse to deposit more until I have a strategy in place, that I know works. Since then, I have sunk my humbled brain into the depths of this forum. Reading pages and pages of turnkey strategies, ground-breaking automated systems, you get the point. Starting to sound like the BS I went through back in June.

Fast-forward to now, I know exactly what Forex is. All those numbers don't just represent an exchange rate between two currencies. If you're winning, someone else is losing, and vice-versa. (how could they not have taught me that?)... I have learned MQL4, the coding language for MetaTrader 4 and have coded a few Expert Advisors that are also not profitable.

The point: Aside from my agitated rambling, I am trying to develop my own strategy. Any advice that any seasoned traders reading this have to offer, I am all ears.

Regards, Casey-

The worst kind of vice is advice.
1) the big winner is that "institution" - not a surprise, they are all crooks.
2) I doubt if there are any "seasoned traders" here - What we ave here are "seasoned traders" who have not lost all their money yet, or someone who pretends to be one.

I don't know what you did to lose your $1,500 and paying some "institution" was a huge mistake, but IMO in order for the casino to win it has to brainwash the customers into believing that "it's ok to lose before you win" -- or some variation like "you just need your winners to be bigger than your losers", or "you must learn to lose before you can win"...
It's not how much you can win that's important, but how much you can lose.
Find a way to stop losing, stop looking for a way to win.

The $5,000 was blatant ignorance and stupidity, against my own judgement. The $1,500 was a lack of money management - maxed leverage and no StopLoss. Rather, getting margined out a couple times. $6,500 deep, it kills me.

This is not an advice, this is what I have done ==> Pay back the debt any way you can from other sources and only then, if you must, try again.
It was hard. made me realize that trading with funds that I cannot afford to lose keeps me honest.

That is a tough pill to swallow. If I were in a position to cut my losses and avoid anymore risk, maybe. But I know there are traders out there who have turned less than $1,500 into a hell of a lot more than $1,500. I got into Forex (however, ignorant) for the same reason everyone does and ever will. I hope to figure it out, too.

Sure, and then they lose it all in one trade... but they won't talk about that of course (:

Kinda the same vibe I got from all the threads I read. But hey, here I am, talking about how I lost it all in one trade. I take it you don't trade anymore(?) then?

Yes, still do.
I have a real job that pays for my trading habit (:

Some general advice...

1) Don't waste your time here studying any trading system that relies solely on technical analysis. That is just gambling.
2) Don't use leverage. Will you become a millionaire in a year? No, not with a small starting balance but it is a wake up call. If you expect to turn your 1000 into millions then expect to fully lose it all.
3) Don't pay money for so called experts to teach you how to trade. If they have no verified track record they are not a real trader. They are salesmen. Find someone who understands how the markets work and successfully makes consistent money from trading.
4) Learn about the biggest players in the forex markets, who they are, what they do, how they act, what their goals/intentions are, then trade in that direction. It is hard to lose money if you do this.

If you begin with these points then I'd say you are above the majority of people here on this forum who jump from system to system.

Get these in your system...

Chew on em!

http://www.forexfactory.com/showthread.php?t=273035

Hello, Casey!

Those traders that you speak of are exactly that: traders, real traders. They know what they are doing, they have years of experience, they have a solid money management strategy, they can recognize the best setups, they pay attention to fundamentals, they are great at technical analysis. And just as you, they most likely blew accounts in the past. But now they are skilled.

You need time to develop such skills... lots of time. Whatever strategies you may find, do lots of backtesting, then try them on demo for many months, and when you are fully confident that they work and you can see your demo account steadily growing, then and only then you may go using a live account, and start by trading small lots. And in time, after you are successful with trading small lots, you may increase the lot size. Unfortunately, there are no shortcuts.

That's just a personal opinion, treat it as it is. Take other opinions in consideration also. There are many great people here who will provide you with valuable information. I wish you all the best in your future forex adventures!

Hi Casey,

Here are mine...

 

1. You are very young, that means that you have time to learn and discover, so first of all, make time your ally, not your enemy. Don't be in a hurry, becoming a trader is a long journey.
2. According to 1, design a plan. Take time to learn all you can, MQL programming, technical analysis and also take the time to observe the currencies you want to trade to learn how they behave.
3. Read the forums, there is some valuable information from some valuable traders that will help for sure. Just don't get everything as gold.
4. According to 3, try what is of interest for you and see what works according to your character. Don't be afraid in trying dozens of systems, even if they don't work, there is often things to learn from them.
5. Have a journal and write into it all that goes through your mind in regard of your trading life. It's a good opportunity to have an honest mini-retrospective about what you did, how you behaved, why, etc...
6. Rinse and repeat all the precedent points until you find who you are as a trader, what kind of trader you are and soon you will have your own style and be successful.

Best of luck,
BT

Hi Casey,

I would like to give you a few thoughts that you probably won't get from anyone else who trades forex. I've been at it for over 15 years full time and I do make my living trading - but that said i am STILL developing my strategy because the forex markets are ever-changing. That is why people who can't (or won't) adapt their strategies always lose in the end. But.. onward... First, I am assuming that you live in the US (because you want to move to Cali) but let me be clear - DO NOT TRY TO TRADE UNDER A US REGULATED BROKER AND EXPECT TO BE SUCCESSFUL. The US trading rules are stacked against you! Find a broker outside the US as the trading rules (no FIFO, no hedging ban, better leverage) will allow you much more opportunity to profit. Second, don't buy in to the idea that if person "A" wins a trade, then some person "B" has lost. This is not necessarily true. Think about and manage your forex account more in the way that a country would manage their foreign currency portfolio. If it is advantageous for you to close a position for a profit - then possibly it was advantageous for the person on the other side of that trade to open a position at that price to accommodate their portfolio. Forex transactions are NOT necessarily a win/lose proposition. Third, as we would all love to be able to close every trade for a profit (and preferrably within a few hours or days) that is simply not going to happen. This is why having the ability to hedge is so important, in addition to not being encumbered by the nasty FIFO rules in the US. Managing lemon trades is the key to winning at forex and using strategies of hedging and multiple directional trades are the only ways to profitably manage negative equity from lemon trades. When executed properly, there is no reason to ever have a combination of trades close for an overall loss. Lastly, EXCEL, EXCEL, EXCEL... (huh?) What I mean is USE EXCEL SPREADSHEETS and record every trade you make with all of the data about the trade and why you took it. Over time you will be able to look at the spreadsheets and the problems with your trading methods and strategies will become evident and obvious and from this data you will be able to fine tune yor strategy to become even more successful than you ever imagined. Remember too the 10,000 hour rule... You simply cannot spend 10,000 hours doing something (anything) without becomming a master at it - but prior to spending 10,000 hours doing it, you are still an apprentice.

Good luck, stay strong and don't give up. Your dream is achievable.

Cheers,
Mindy

Trading is about knowing the right time to trade, and what to trade. Entry and exiting. and that it. all is just a game

i think u have a long way to go.
keep learning, keep looking and try every methods to see if they suit your personal or not.

usd 5k for one course, its expensive. but i think my total money invest in learning trading could be near or more then usd 5k.

Hi Casey,

I think it's right that you try to find a solution. This means the door will open anyway.
It's pity you spent 5k on a completely unnecessary studying.
How can teach something who themselves have little success in trading?
Why do I say that? Because if they would have been successful, they wouldn't have engaged in training, they would have earned millions in fx. Am I right ?
Here are really a lot of successful traders and valuable thoughts that must be found among a heap of unnecessary junk.
Good luck to you.

1. Buy when price is going up. Sell when price is going down.
2. Risk no more than you can afford to lose but risk enough such that a win is significant. If no such amount exists do not play.

Money is better spent trading. If you started off honestly believing you can turn $1,500 into "millions" - imagine what you could have done with $6,500. Probably would have lasted longer, at the very least.

When it comes to trading, there's no limit to the "advice" you'll get, especially from the retail side. When it comes to trading forums, you have to understand the reason they exist - and why brokerages pay to advertise with them - to begin with. This whole shebang is just a big advertising mechanism. There's hundreds of systems and indicators, each new thread makes your eyes light up and you think "If this guy can do it, so can I!" but the end result is always the same: you trade more. In a business driven by commissions, the more I can "fluff" your dream, the more you'll trade, the more money I'll make.

Yesterday, I was sifting through old stuff here on FF while eating lunch and I came across a guy who started another "revolutionary" thread about another "revolutionary" system. You know what that "revolutionary" system was? Consolidation zone breakouts. Apparently, OP wound up being forced to be a commercial member, stopped posting, and retreated to make his own web site where he charges a $500 "retainer" on top of $1,500 - IF determines you're "worth" teaching. That's right, some dingleberry will charge you money to "judge" you, then charge you more money to teach you how to trade something as ridiculously simple as trading consolidation zone breakouts. Despite the fact that his entire thread and all its indicators still sits here in the FF graveyard.

Point?

Don't pay people to teach you. Ever. Contrary to popular belief, the "mentor" aspect of this is just another wealth transfer mechanism. Everyone here thinks they're going to reinvent the wheel. They haven't and they won't. Realistically speaking, we're all each other's competition. Anyone with half a brain who finds a way that makes them money isn't going to dilute the strategy by sharing it.


Sounds 'bout right.


You need to let that shit go right there. Be realistic, it helps. Also, might I suggest aiming higher for your starting balance? A good litmus test for me when I started was managing to squirrel away a large sum of money over a period of about 5 years before actually trading the account. I wound up living through life's ups and downs (no pun intended) without touching that money. By the time I started, I knew that regardless as to how much money it was, life had proven to me over the previous years that I didn't need it. As such, I became at peace with the idea of losing it all.



So you lost that in roughly 3 months? Damn.

When I was chasing the daytrading unicorn I racked up about $2,000 in losses. Thing is, it took me 2 years to get there. I don't have all the details as to how you traded but judging by your dreams of turning $1,500 into millions, it probably involved overleveraging yourself. Trading small won't result in an overnight lottery win but it keeps you in the game far, far longer. With that comes flexibility and time to adapt. You won't be a millionaire tomorrow but you won't be bust either.


You won't find it here. I'd like to think some of the more cynical members would be inclined to agree but seriously, you won't. What you will find here is a ridiculous amount of confidence with no results. It seems - to me anyway - anyone here who becomes even remotely successful winds up bailing out to focus on their work. Moving inventory, recording data, keeping up with the information flow; all that boring stuff doesn't leave much room to rack up a 10K+ post count on a forum.

On top of that, forums can be one monster of a distraction. You'll come across posts that make you feel hopeless just as often as you'll come across posts that will make you feel like you've got it all figured out. It isn't worth the ride. Forums are good for socializing, not so much for finding winning strategies.


It actually doesn't sound like BS, it sounds like the typical process for retail traders.

1. You start with a dream
2. Since it's a dream, it's obviously unrealistic
3. You begin the "grail seeker" phase
4. You pay someone else to do the work
5. It fails
6. Forums are free so you go there
7. After a small period of information overload, you start bloating up your indicators file
8. You start coding your own
9. You start spending more time coding than you do trading
10. It slowly starts to sink in that it ain't gonna work
11. You ask the forums for help
12. You either quit, figure it out, or go back to #8

I don't personally feel it's something you should be ashamed of but, it is a trap and you can get stuck in it for a good long while. I don't say that as some "high-and-mighty millionaire success story" - I say it as someone who already did it. Well, except the part about paying someone. I've never done that, lol.


For what it's worth..
I don't give advice about how to trade, we're all way too different as individuals to trade the same way but, I can share what I learned about myself...

1. Start with more money. A lot more. Someone named "Cloggie" had said it best in another thread where someone asked "How to make millions in Forex?" to which he replied "Start with billions".
2. Ditch MT4. Seriously, don't use it. If you want to get out of the "look for indicator -> code indicators -> repeat" cycle, you need to get out of MT4. That platform is like the "app store" for traders and you can get lost in that very easily. Now, if you want to be a coder, by all means, code. If you want to trade, understand that you'll never code your way into "lazy success" and you'll never code an "industry revolutionizing" indicator.
3. Keep forums at arms length. They're distracting and the allure of getting sucked into the "hot new thread" strategy can happen to anyone, even "seasoned" traders who just happen to be going through a rough patch.
4. Trade small, accumulate and distribute low-leverage positions. There's more flexibility in it and - assuming you've followed #1 - blowing the account is actually challenging.
5. Trade less, you'll lose money slower and losses become more controllable. Mingary is on-the-money with this:


I've personally found my own way - not to eliminate losses - but to outpace them with positive returns.

6. If I can do anything different, it'd be learning to invest before wasting time and money trying to be a day trader. To me, day trading is best left to the quants and their algos. I ain't that smart and don't personally think I'm equipped for such a high turnover rate.
7. Learn about the businesses. Brokers, their operations and their relationship(s) with liquidity providers and clients. How orders are routed, liquidity provision vs liquidity consumption, all that boring-ass mechanical stuff. It helps solve the "why is this happening?" puzzle.
8. Don't look at it as a journey. This leads to the tendency to dream and be unrealistic.
9. Don't look at it as a way to impress your friends. Not only is it bad juju but you'll confuse them before you impress them.
10. Overall, understand and become thoroughly acquainted with your limits. You're not Financial Jesus. You're just some guy starting a business.

That's all I got. I can confidently say that I don't expect much agreement but, you asked for it from all of us so, that's mine.

To succeed in trading, you must love the game of the markets.

Let me propose a simple test to gauge your level of commitment/passion about trading:

You have just inherited 10 million dollars. How much do you set aside in a trading account never to be withdrawn for the next 20 years?

If your answer to this question doesn't convince yourself that you are committed to trading then don't trade. Find someone else who is committed and invest your money with him/her.

seems to be one of the better threads here lately...

sorry for the loss casey - you're not alone as you see though. Been there, done that myself.

Pick a single pair. Learn all you can about it, demo it, work out what it takes YOU to out pace your losses trading it. Learn the fundies of it, exploit them to YOUR advantage. This isn't YOUR sprint, it's YOUR marathon, and it can be a really really long one too. Lots of hype surrounds fx, probably too late to tell you not to fall for it....but don't fall for it...

the view from the mountain top is the same - it's only sweetened by what it takes each of us to reach it.