The Trader's Academy - by Traders for Traders | Page 45 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Are you a trend trader or a counter-trend trader? 29 replies

Baby pips style academy for other financial markets? 6 replies

from retail trader to full-time trader 17 replies

Discipline Trader and Voice Trader EA/IND 16 replies

IkonFX Viking Trader or Pfgbest Viking Trader? 2 replies

Attachments: The Trader's Academy - by Traders for Traders
Exit Attachments

The Trader's Academy - by Traders for Traders

  • #881
  • Feb 19, 2016 3:51am Feb 19, 2016 3:51am
Quoting swetrader
{quote} Thank you. This means if I open a $1000 account I need very tight SL right?
No absolutely not. Never ever let your lot size determines your stop loss. Your stop loss should determine your lot size based on the amount of the risk you want to take. Moreover, you should open an account that lets you trade very little units like 100 units or which means anything between a nano lot to micro lot. And please don't trade live unless you have doubled at least 1 demo account with a draw down of less than 10%.
  • #882
  • Edited 4:21am Feb 19, 2016 4:07am | Edited 4:21am
This has been said thousands of times before and no doubt will be repeated many thousands more, but if anyone intends to trade a live account soon after getting into this business, without having doubled a demo account at least once with a sound, tried and tested methodology, then the money will disappear very quickly, and if it is money that cannot be affordably lost, then this could be the beginning of a disaster. If one must trade live from the outset, then a micro-account is the way to go using 0.10 lot sizes.

Trading destroys many more lives than it saves, something to bear in mind if you have recently set out on the long journey towards being a professional trader, in fact, if you've followed forex factory for a few years as I have, you'll have noticed that the overall majority of people show up for a few months and are then never seen again, no doubt tempted into believing they can get rich quick before the reality quickly sets in.
  • #883
  • Feb 19, 2016 4:20am Feb 19, 2016 4:20am
Hello traders

Im trying to solve how to survive Spread Widening during Rollover times and Friday close/Sunday opening times.

can anybody please help explain, how to solve and survive spread widening during this times? - what is your or general solution/method for this ?

Example: Gbp/Nzd, avg spread 4 pips, Rollover spread 30-55 pips, holding long term position for about 30 days.

What method of management/trading technique does long term trader use, that is able to during rollover not being threated by the spread widening even over weekend ? (no Stop loss ??? huge Stop loss like 500-1000 pips on hight volatility currency crosses ???)

What do you do If you haveo open trade in -50 pips now, your SL is 75 pips and you know that rollover time spread will kick you out of position ?? (assumption: trade still valid and SL well placed)
  • #884
  • Feb 19, 2016 4:25am Feb 19, 2016 4:25am
It is always the same: people listen to what want to listen to and nothing else.....they are all ego driven.
Well, in this thread there are many precious clues released by Cat, Medici, ebitalebi, some also by me: now those few who are truly willing to learn have a good starting point.
Bye you all
  • #885
  • Feb 19, 2016 5:04am Feb 19, 2016 5:04am
Quoting cat
{quote} I have an old thread 'Cat's whiskers ', with quite a few screenshots you may like to check out.
The most informative journal Ive seen so far !
Maybe because your method resonates with me more than anything I've ever seen before.
I was secretly wishing you would mistakingly show what ema you were using along with 20ema
Nevertheless great thread !
...
  • #886
  • Edited 6:00am Feb 19, 2016 5:07am | Edited 6:00am
Last night I watched episode 11 of Americans, a television series about some KGB agents in the US during the Reagan administration. See http://www.yourentertainmentcorner.com/?p=35529

A memorable line that struck me was when the senior KGB officer Claudia responds to the question "Do you agree with this order?" Claudia says:

Quote
I neither agree nor disagree. I follow orders.

The point is expressed well in the first 1.05 of this clip:

Inserted Video


This struck me as having very much to do with trading, at least the way I do it. A setup is an 'order' from the market. When you recognise it, you act on it - you don't agree or disagree, for one reason or another. You just take it.

You cannot know until afterwards whether it was a good one. Sometimes you may have a hunch, but that is best ignored, if you have a reliable trading system. The research has already been done. Don't mix R&D with trading - they should be kept completely apart.

And to get to this point of being able to completely trust your system, and follow its orders, a lot of research is needed. As has been clear from Cat's posts, a tremendous amount of work has gone into developing a precise method, and the same is true for me. And the work of 'sharpening the sword" is never ending.

Yet, it has been a challenging journey to get towards being able to completely trust the system, one that is also requires its continual sharpening.
  • #887
  • Feb 19, 2016 5:29am Feb 19, 2016 5:29am
Quoting Piquant
{quote} The most informative journal Ive seen so far ! Maybe because your method resonates with me more than anything I've ever seen before. I was secretly wishing you would mistakingly show what ema you were using along with 20ema Nevertheless great thread !
Just play around with different mas, it's what I did, though don't use too many. Find out which ones complement the 200ema. The 20ema is just used as a central ma by me, sort of like a linchpin around which the price moves. Your task should be to find a combination of mas that will give you entries, exites, help keep you in a trade, and help you determine directional bias and S&R levels. It took me several years by the way, and I'm still working on it, so don't be in a hurry
  • #888
  • Feb 19, 2016 5:30am Feb 19, 2016 5:30am
Quoting Piquant
{quote} 3b?
3b is a point on cat's chart.

Quoting medici
Don't mix R&D with trading - they should be kept completely apart.
In the early days of our methods development we get into this transitioning stage where we're trading yet R&D at the same time, R&D brings along new knowledge which can somewhat jeopardise trade execution and the mindset is not so focused and sharp. There's this wrong mindset while trading yet there's a need to R&D to assimilate better knowledge into our method as an when we see them occur. I would suggest to opt out of live trading onto demoing at this stage. And this transitioning stage can take a long time to stabilise, so it's not wise to rush into live trading until the method is properly tested and robust enough to gain our confidence to generate a strong positive mindset in our trade execution.
  • #889
  • Feb 19, 2016 6:29am Feb 19, 2016 6:29am
Attached Image
Attached Image (click to enlarge)
Click to Enlarge Name: not smart - disciplined.png Size: 324 KB
  • #890
  • Feb 19, 2016 6:46am Feb 19, 2016 6:46am
[quote=medici;8764264] http://www.yourentertainmentcorner.com/?p=35529 "Do you agree with this order?" Claudia says: {quote} The point is expressed well in the first 1.05 of this clip:
Inserted Video
This struck me as having very much to do with trading, at least the way I do it. A setup is an 'order' from the market. When you recognise it, you act on it - you don't agree or disagree, for one reason or another. You just take it.

Very good!
  • #891
  • Feb 19, 2016 6:48am Feb 19, 2016 6:48am
Haha...sorry medici, I completely messed that last post up, I didn't mean to re-post the whole video, but it'a done. Great post
  • #892
  • Edited 12:08pm Feb 19, 2016 7:06am | Edited 12:08pm
I tend to be a bit of a perfectionist, even as a child I was never happy until whatever I was doing was done to perfection, which obviously meant that I was never satisfied with anything. In trading, this poses a real problem, and it has been an area, a weakness if you like, that I have had to work hard on. Here's a great little article I downloaded years ago, about the dangers of being a perfectionist in the world of trading, and some tips on ways to overcome it -

"There is a great book called Golf is not a game of perfect by Dr Bob Rotella and a must read for those of you masochists who are also golfers as well as traders! from which I have pinched the title for this article because trading, like golf is also not a game of perfect. It is a game of ifs, buts, nearlys, maybes.

You can probably think for yourself about times when you have gotten out of that trade too early only to see it rocket to and perhaps beyond your profit target, or that time you got out of the market for a loss only to see it come back and go your way or maybe the time you didnt take the trade because the set-up wasnt quite right, or it wasnt quite at your level, only to see it go on to be a winner. Likewise maybe there have been times when fortune has favoured you in similar situations. The nature of markets and the nature of humans creates an environment of imperfection. Perfectionism is an admirable quality to some degree, but can often be destructive and is likely to hinder you as a trader.

Do you have perfectionist tendencies?

Here is how Burns in The perfectionists script for self-defeat in Psychology Today defined it; Perfectionists are people whose standards are high beyond reach and who strain compulsively and unremittingly toward impossible goals and who measure their own worth entirely in terms of productivity and accomplishment.

Does that sound like you?

Perfectionists suffer from setting excessively high standards, a fear of failure, procrastination, never being satisfied with their successes and can become emotionally disturbed when their standards are not met which can be often in trading - fear of competition, not learning, all-or-nothing thinking, being overly self-critical, being intolerant of mistakes and also they can be prone to high levels of performance anxiety.

In your trading fear of loss, hesitation and not pulling the trigger, getting highly frustrated or angry when trades dont work out or when your timing is out with the market, or being highly self-critical of your trading performance can all be evidence of perfectionist tendencies.

So, if you do have some perfectionist tendencies what can you do?

An important factor to remember is that you are a fallible (imperfect) human being and therefore also a fallible (imperfect) trader.

Secondly remember you are operating in an imperfect, uncertain environment and so learning to think probabilistically is important as Mark Douglas states in Trading In The Zone, each trade has a non-guaranteed probabilistic outcome. Move your mindset from perfection to probabilities.

Strive to do your best and aim for excellence, rather than obsessing with being the best; aim and focus on becoming a better trader.

Focus on your trading process and not just on the outcome.

Learn to embrace the challenge of trading and seek enjoyment in what you do.

Importantly, learn to see failures and setbacks as opportunities for learning not self-condemnation.

And finally, but critically, learn to accept that your personal worth is not your net worth that you are a worthy human being irrespective of your trading results at any given time.

If have identified yourself as having perfectionist tendencies, then taking on board some of the insights and perspectives in this article will be very helpful for you remember you are a fallible human being in an uncertain environment."
  • #893
  • Feb 19, 2016 7:18am Feb 19, 2016 7:18am
Quoting medici
Last night I watched episode 11 of Americans, a television series about some KGB agents in the US during the Reagan administration. See http://www.yourentertainmentcorner.com/?p=35529 A memorable line that struck me was when the senior KGB officer Claudia responds to the question "Do you agree with this order?" Claudia says: {quote} The point is expressed well in the first 1.05 of this clip: https://www.youtube.com/watch?v=nyKJeXDoqnw This struck me as having very much to do with trading, at least the way I do it. A setup is...
For someone who's going through this process (2years) I resonate with every single word you wrote. I'm sure the same goes for everyone who's in the same boat as me. Who also thought that they were ready to go full time but wasn't . But I became serious after I quit my day job. I no longer treated trading as a part time endeavour but like a full time job. I was under a pressure. But pressure can be good or bad and the cause isn't always the money factor. The last 4 months, I spent more hours staring at charts than I did the past year and a half. I learned that much more. But what I did for the first year and a half although a bit slower, lost & confused should get a credit for it set the foundation. Without it I wouldn't have been able reach this far. This is a "long" journey.

I also want to add that I was fortunate to find people who genuinely wanted to help the noobs. There's so much information on fx it's almost mind boggling that without a proper guidance of some sort you can easily go the wrong path.

All of this has been discussed before by cat, medici and some others. But I just wanted to say although I haven't been able to support myself from trading since I quit my day job (I have a back up don't worry ) I am glad that I took the plunge for that I have been able to look at it more seriously. When you have a 9-5 job it can be tough to really immense yourself progress can be slow. But use that time to study the basics, build your foundation. I'm not encouraging anyone to quit their job until they have a system that they trust and consistently profitable for a xxx time. It's all personal. It takes time. But when you know its time - it's time.
...
  • #894
  • Feb 19, 2016 8:47am Feb 19, 2016 8:47am
When you have a 9-5 job it can be tough to really immense yourself progress can be slow. But use that time to study the basics, build your foundation. I'm not encouraging anyone to quit their job until they have a system that they trust and consistently profitable for a xxx time. It's all personal. It takes time. But when you know its time - it's time.

tell me, 7 years i am trying to build up a strategy that suits me and its not working , yet. I simple love charts but obviously i can't understand them and gaining from them. And i want to quit my job so badly, 58 years old, but for that i need a little compensation. Now due to my job i can only trade the first hour of LO, and not even every day. So for me its difficult to find the time to gain confidence.

ps i am at work now, great job
  • #895
  • Feb 19, 2016 12:04pm Feb 19, 2016 12:04pm
Wishing everybody who follows this thread from time to time a very nice weekend. Weekends for me are a time for getting away from my screens and spending time with my family, but not completley, as I'll be putting ina few hours of review work and chart analysis as part of my constant striving to be better next week than I was this week, and so it goes on. Remember, if you are not hungry enough to get what you want, there is always someone else who is, and they are the ones who will get there before you.
Attached Image (click to enlarge)
Click to Enlarge Name: quote-Charles-Evans-Hughes-i-believe-in-work-hard-work-and-221220.png Size: 105 KB
  • #896
  • Feb 19, 2016 7:00pm Feb 19, 2016 7:00pm
Quoting cat
Wishing everybody who follows this thread from time to time a very nice weekend. Weekends for me are a time for getting away from my screens and spending time with my family, but not completley, as I'll be putting ina few hours of review work and chart analysis as part of my constant striving to be better next week than I was this week, and so it goes on. Remember, if you are not hungry enough to get what you want, there is always someone else who is, and they are the ones who will get there before you. {image}
Have a nice weekend !
...
  • #897
  • Feb 19, 2016 7:19pm Feb 19, 2016 7:19pm
Quoting huskyboy
When you have a 9-5 job it can be tough to really immense yourself progress can be slow. But use that time to study the basics, build your foundation. I'm not encouraging anyone to quit their job until they have a system that they trust and consistently profitable for a xxx time. It's all personal. It takes time. But when you know its time - it's time. tell me, 7 years i am trying to build up a strategy that suits me and its not working , yet. I simple love charts but obviously i can't understand them and gaining from them. And i want to quit my...
I'm probably not the one to be responding but I'll try.

How busy is your schedule ?
Do you have other commitments ?
Do you have a family to support ?

You have to be realistic. Think about your situation. I don't think you should quit your job anytime soon. You're clearly not ready and I think you know that more than anyone else. Keep your job. It's going to be difficult to find another job at your age.

But if you want it so bad. No matter how busy your schedule is and whatever commitments you may have do what you have to do to achieve that. There's no room for excuse. Make it a priority. If you can't get free time during work do it after work, or on the weekends & holidays. Find time. Work smart. Threads like these can be a huge help. As you can they're some great people around here. Learn from them as much as you can. Practice that everyday. Read books. Go through this thread from start to finish a few times. You'll find great content.Hopefully along the way you'll put the pieces together and find your way.
...
  • #898
  • Feb 19, 2016 7:27pm Feb 19, 2016 7:27pm
Quoting cat
I tend to be a bit of a perfectionist, even as a child I was never happy until whatever I was doing was done to perfection, which obviously meant that I was never satisfied with anything. In trading, this poses a real problem, and it has been an area, a weakness if you like, that I have had to work hard on. Here's a great little article I downloaded years ago, about the dangers of being a perfectionist in the world of trading, and some tips on ways to overcome it - "There is a great book called Golf is not a game of perfect by Dr Bob Rotella and...
Thank you for sharing !!
...
  • #899
  • Feb 20, 2016 4:16am Feb 20, 2016 4:16am
Have you thought that he might be an idle, cunning con merchant with a ready sob story to appeal to the kind nature of people like yourselves. They are usually referred to various books or threads where they are advised to study and test over a long period of time. But the conman alluded to earlier wants the short cut or holy grail. FF is full of such people. Having said that, there are many others willing to put in the time to learn and debate with others. Hence this thread.
every Saint has a past. Every Sinner has a Future
  • #900
  • Feb 20, 2016 5:15am Feb 20, 2016 5:15am
In response to Kanzler and turnip, they are both right, in that the world of retail trading is full of people with false hopes and unrealistic expectations who are easy prey for the guy selling the magic 100% guaranteed instant profit trading strategy. It is cruel because many coming into forex cannot afford to lose money, and their situation can very quickly go from desperate to catastrophic. I have no idea how many suicides there are as a result of people losing all their money or even borrowed money trading forex, but I wouldn't be surprised to learn that the numbers were high compared to other professions.

One of the reasons I started this thread actually was to try, in my own small way, to convince people relatively new to this business, that trading, though potentially incredibly fulfilling, is a very difficult game to master in all sorts of ways, and that people approaching it with the wrong motives or perceptions, will find it one of the most ruthless environments they will ever expose themselves to. Approached in the right way however, with realistic expectations about the length of time and hard work required, then it can offer rich rewards, not just in the financial sense, but in every other area of one's life.

I am very happy that this thread has got off the ground, because there has already been some great advice from traders who have the experience and the knowledge of what it takes to succeed in this business, and I hope that at least some of it will be taken on board by the less experienced among us to smooth our way towards success.
7 traders viewing now