What is the most important piece of advice you've received? | Page 2 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Putting a Gun to your Head - 1 Piece of Trading Advice 83 replies

Question for you guys: What do you need advice on the most? 12 replies

If you could give just one piece of advice... 0 replies

Have You Received Consistent Profits From Either System? 0 replies

Attachments: What is the most important piece of advice you've received?
Exit Attachments

What is the most important piece of advice you've received?

  • #21
  • Apr 3, 2016 2:29am Apr 3, 2016 2:29am
Price movement is random, don't try to predict the market. Mingary's advice is alo good - don't pretend forex is a real job.
  • #22
  • Apr 3, 2016 3:46am Apr 3, 2016 3:46am
Quoting Diocletian
"Losing money is worse than not having money."
Not true at all.

Only in a loser's perspective, this statement is correct. In the trading and investing arena, money make money. Without money, you can't roll profit. Losing is part of trading. The day we start learning trading, we start losing on time, which time is money, if you use these time to work for salary. But the amount of time invested in trading if it is worth it varies between different individuals.
The only winner is the one who survive the longest...
  • #23
  • Apr 3, 2016 3:47am Apr 3, 2016 3:47am
Quoting Atokys
"You must read Market Wizards, its less than twenty dollars on Amazon."
This is a nice book. Personally read it several times.

If anyone want it, I can pass it to him both editions. Don't need to pay anything.
The only winner is the one who survive the longest...
  • #24
  • Apr 3, 2016 3:50am Apr 3, 2016 3:50am
Quoting gravitist
Price movement is random, don't try to predict the market. Mingary's advice is alo good - don't pretend forex is a real job.
You are not wrong, but market is both random and non random. If one is biased in their market perception, they can't open themselves to look at another side of the market. One of the most difficult part of trading, is about timing, and the timing of it, cause human to sway away from their decisions and fuck up their emotional state.
The only winner is the one who survive the longest...
  • #25
  • Apr 3, 2016 4:55am Apr 3, 2016 4:55am
ego is your enemy in trading & keep your losers short.
Trade fearless not careless...
  • #26
  • Edited 5:46am Apr 3, 2016 5:27am | Edited 5:46am
Quoting kinspk
{quote} Not true at all. Only in a loser's perspective, this statement is correct. In the trading and investing arena, money make money. Without money, you can't roll profit. Losing is part of trading. The day we start learning trading, we start losing on time, which time is money, if you use these time to work for salary. But the amount of time invested in trading if it is worth it varies between different individuals.
This statement is posted everywhere and repeated by everyone from "forex gurus" to all garden variety forex enthusiasts.
Fact is "losing is part of trading" is not going to make you win. Forex enthusiasts seem to always be in a "losing in order to win" mode.
Losing is part of losing and winning is part of winning, therefore the statement "in order to win all you need are winners bigger than losers" is logically valid, but is absurd in actual practice.
  • #27
  • Apr 3, 2016 7:37am Apr 3, 2016 7:37am
Quoting Mingary
{quote} This statement is posted everywhere and repeated by everyone from "forex gurus" to all garden variety forex enthusiasts. Fact is "losing is part of trading" is not going to make you win. Forex enthusiasts seem to always be in a "losing in order to win" mode. Losing is part of losing and winning is part of winning, therefore the statement "in order to win all you need are winners bigger than losers" is logically valid, but is absurd in actual practice.
False.

Quite literally all you need to do in this business is pare your losers and press your winners. That's it. It's that simple. Now why is everybody not doing it then. Well, as males, we need to be right, even if it means we lose money. When males become men, they learn to take data at face value and apply it.

You, Ming, got burnt, and now you are angry. Do more homework, Frenchman. Do more homework.
If you are good at something, never do it for free--Joker
  • #28
  • Edited 8:27am Apr 3, 2016 8:08am | Edited 8:27am
Quoting jmn5611
{quote} False. Quite literally all you need to do in this business is pare your losers and press your winners. That's it. It's that simple. Now why is everybody not doing it then. Well, as males, we need to be right, even if it means we lose money. When males become men, they learn to take data at face value and apply it. You, Ming, got burnt, and now you are angry. Do more homework, Frenchman. Do more homework.
Ok. So let's imagine your follow the dogma, idioms and tenets of proper trading to the letter.
For example this rule: "Never risk more than 1 % of your account on any one trade"

As it happens you have lost 9 times in a row.
You have learned to take the data at face value, and you are applying what you have learned with total discipline.
Therefore all is well, you are confident that if you "pare your losers and press your winners" you will come out ahead.

Here comes trade number 10.
Surely, risking again only 1 % you see that your profit target will recover most if not all of your 9% loss.

Darn it, it's another loser. Your account is now down 10 % ..

Now, here comes trade number 11 ...
After all, your system was thoroughly back tested showing that it's nearly impossible to have 11 losers in a row.
oops .. another loser.
Now, here comes trade number 12... and the saga continues...

All is well, you think, because in this game one has to lose in order to win... until the entire account is gone...
It is that simple (:
  • #29
  • Apr 3, 2016 8:24am Apr 3, 2016 8:24am
Quoting Mingary
{quote} Ok. So let's imagine your follow the dogma, idioms and tenets of proper trading to the letter. For example this rule: "Never risk more than 1 % of your account on any one trade" As it happens you have lost 9 times in a row. You have learned to take the data at face value, and you are applying what you have learned with total discipline. Therefore all is well, you are confident that if you pare your losers and press your winners you will come out ahead. Here comes trade number 10. Surely, risking again only 1 % you see that your profit target...
That post was incoherent. If you lose more than twice, you are clearly bucking the trend. Get on the right side of the market. And learn how to position size. And stops were never meant to be hit. You will know you are wrong well before your stop is hit. Taking timely action matters in this business. And yes, it really is that simple.
If you are good at something, never do it for free--Joker
  • #30
  • Apr 3, 2016 8:38am Apr 3, 2016 8:38am
Quoting kinspk
{quote} Not true at all. Only in a loser's perspective, this statement is correct. .
I want to win every trade 24/7/2..
  • #31
  • Apr 3, 2016 8:55am Apr 3, 2016 8:55am
The 4 best pieces of advice:

Preservation of capital is paramount
You REALLY need to FULLY understand leverage and the effect it has on your trades
You don't need fancy risk/reward ratios if you understand rule 1 & 2
You don't need a stop loss if you understand rule 1 & 2 & 3
  • #32
  • Apr 3, 2016 9:02am Apr 3, 2016 9:02am
Quoting gravitist
Mingary's advice is alo good - don't pretend forex is a real job.
Well it is a "real job" for some of us! Though I'd hardly call it a "job". As they say, if you do what you love, you'll never "work" a day in your life
  • #33
  • Apr 3, 2016 9:29am Apr 3, 2016 9:29am
who risks 1% per trade anyway?! that is suicide! more like .10%
All posts are my personal opinion
  • #34
  • Apr 3, 2016 9:53am Apr 3, 2016 9:53am
Quoting Ponzi Jr
Simple question: What is the single most important piece of advice you've received in your trading career?
Trade only when the odds are in your favor.
  • #35
  • Apr 3, 2016 10:22am Apr 3, 2016 10:22am
Quoting jmn5611
{quote} That post was incoherent. If you lose more than twice, you are clearly bucking the trend. Get on the right side of the market. And learn how to position size. And stops were never meant to be hit. You will know you are wrong well before your stop is hit. Taking timely action matters in this business. And yes, it really is that simple.
I wish I could reside in a place called "theory", because everything always go so well there ..
Unfortunately doing it for real to try 12 times to "get on the right side of the market" is exactly where the greatest amount of money is lost. So why do it ?
Anyhow, I concur on two points:
1) You will know you are wrong well before your stop is hit.
2) Taking timely action matters in this business
  • #36
  • Apr 3, 2016 10:38am Apr 3, 2016 10:38am
Quoting Mingary
{quote} I wish I could reside in a place called "theory", because everything always go so well there .. Unfortunately doing it for real to try 12 times to "get on the right side of the market" is exactly where the greatest amount of money is lost. So why do it ? Anyhow, I concur on two points: 1) You will know you are wrong well before your stop is hit. 2) Taking timely action matters in this business
Hey Ming ... been a long time since I've been to here to enjoy your perpetual pessimism.

If it takes you 12 times to "get on the right side of the market"? You're clearly not paying attention!

As to why do it? Well maybe, just maybe if you have at least half a mind, the practice would do well to trim that down to only 1 or 2.

Practice makes perfect.

I also agree with jmn's two points.
Ghost Rider - WWTBMD?
  • #37
  • Apr 3, 2016 10:49am Apr 3, 2016 10:49am
Quoting Mingary
{quote} I wish I could reside in a place called "theory", because everything always go so well there .. Unfortunately doing it for real to try 12 times to "get on the right side of the market" is exactly where the greatest amount of money is lost. So why do it ? Anyhow, I concur on two points: 1) You will know you are wrong well before your stop is hit. 2) Taking timely action matters in this business

Maybe you should should reside in a place called "theory"..........

A hypothesis is either a suggested explanation for an observable phenomenon, or a reasoned prediction of a possible causal correlation among multiple phenomena. In science, a theory is a tested, well-substantiated, unifying explanation for a set of verified, proven factors.

A theory is always backed by evidence; a hypothesis is only a suggested possible outcome, and is testable and falsifiable.

You either do the work, or you "hypothesize" which is just a scientific way of saying "make a really good educated guess".
Markets are not efficient, rather they are effective - Jones
  • #38
  • Apr 3, 2016 11:17am Apr 3, 2016 11:17am
Quoting Diocletian
{quote} I want to win every trade 24/7/2..
I cant achieve that, but I hope you can do it. Personally, as long my profit is more than I lost, it's good enough, I do not need to win all the time.
The only winner is the one who survive the longest...
  • #39
  • Apr 3, 2016 11:18am Apr 3, 2016 11:18am
As an Artist I learned
Don't take advise from art teacher who can't draw
If you are surrounded by losers don't expect insight.Usually they are louder


Here is a quote from Don Johnson (multimillionaire blackjack player)
"Find inefficiencies and exploit it!"
All markets have ton of inefficiencies.That's it
In trading, you have to be defensive and aggressive at the same time
  • #40
  • Apr 3, 2016 11:21am Apr 3, 2016 11:21am
The Markets are not Random
A Positive Mind, and Positive Spirit lead to True Happiness
0 traders viewing now