close to quitting...

Quoting Darkstar

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If your consistently losing, it isn’t because you’re a bad trader, it’s because you’re taking bad trades. You only have 2 posts, so I can’t too deeply analyze what you’re doing, but my guess is that you’re doing everything that everyone says you should. The problem is that you’re taking it too literally.

For the most part technical analysis and the probability distribution shit it’s built off of is of zero value in making money. Have you ever wondered why floor traders can pull money out of the market every single day while the best technicians are heroes when they hit 60%? It’s because the market isn’t moved by technical patterns, it’s moved by order flow.

<o></o>When you see a common technical pattern form, you take your trades with the expectation that the probability is on your side for it to play out as described. Being the diligent and disciplined trader you place your stops at the exact point where the trade should fail. Unfortunately you just opened your wallet and handed me your money. Was it because you didn’t know enough technical analysis? Was there some fundamental news that occurred to move price against you? No, you got smoked because you don’t understand that the pattern was built to trap you and take your money.

<o></o>You have been playing the game for 6 months now, and if you have studied as much as you say you have, then you already know as much technical and fundamental information as you will ever need. What you lack is an education regarding the market information that doesn’t show up on the chart; Sentiment, news, economics/politics, and most important of all, order flow. Pick up a news client for forexwatch and start watching the financial news channels. Start analyzing what the market is thinking and how that affects prices. Try to find where the “real” support and resistance levels are and why they exist. Combine that with the core technical principles on longer term charts and you’ll make more money then you ever dreamed of.

<o></o>The game is not that hard. What’s difficult is moving past the rigid structure you try to impose on the market. It’s not a mathematical puzzle to be solved or a science of price movement. Never forget that you are speculator looking for an opportunity to capitalize on the mispricing of securities. If you can’t do that, you’re not a trader; you’re a gambler in a negative expectancy game of chance.

<o></o>

Good luck.

<o></o>

PS- Don’t ask me to train you. Teaching is another mans racket. I just point the way.

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Quoting kimmie

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I don’t make crazy trades, I’m disciplined and aware of risk, but I just can’t turn it around!<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" /><o></o>

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Quoting narafa

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Kimmie, in the Market Wizards I read one statement that really made a huge difference in the way I analyze the price action infront of me...

"To be successful trading the market, you have to be one step ahead of everyone else..."

It's very true, you will have to be one step ahead...This requires risk tolerance, this requires you to be a contrariarian, buying when the whole world is selling that nobody is left to sell & selling when everyone is buying that nobody is left to buy....It takes courage to be a contrariarian...It takes courage to enter a trade on the first pullback after the start of a trend when everyone in the market is afraid the trend is fake & is just a correction....Thinking differently than everyone else is what really makes you the money....

Happy trading...


Thanks,

Nader

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