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The Big secret to trading success

  • #621
  • Jul 21, 2016 4:09pm Jul 21, 2016 4:09pm
Quoting cat
{quote} I believe I answered this question on the first page of this thread.... " The reason - because it's far easier to try and pick a top or a bottom, or counter-trend trade, than it is to wait patiently for a pullback, identify the point at which the price is about to rejoin the overall momentum, and pull the trigger. I know for a fact that more people attempt to out think the market than go with it - it is human nature to succumb to this tendency to believe we are somehow cleverer than the market,...
Waiting patiently is the hardest part.
My Threads: Trading is as simple as 1-2-3, Highest Open / Lowest Open Trade
  • #622
  • Jul 21, 2016 4:49pm Jul 21, 2016 4:49pm
The big secret is that there are thousands of secrets literally.
I saw a video of Usain Bolt and he has secrets! He does certain things in a particular way that allows him to be on top. How he trains, how he does the first takeoff, how he eats, the position of his legs on the start line, what he is thinking the moment before a run etc.. these are all secrets that allow him to be Usain Bolt.
If there was only one secret with trading....
You can have a winning system but without a proper mindset you can't execute it. And this is only one example.
There is not a big secret because there are lots of secrets and they are all essentials.
A Ferrari without the logo "Pininfarina" is not a Ferrari yet you can say who cares and you can drive it but what if one day you would sell it? It has a different value that the one with the "Pininfarina" logo. A Bugatti without over 1000hp is not a Bugatti yet you can drive it but you can't have the same acceleration of a real Bugatti.
It is the essence behind things which is important, what makes them to be what they are.
Watch the video of Horacio Pagani where he explains why he invented Pagani. There are secrets behind a Pagani.
If a project of a palace has 6 columns, can you build the palace with 5 columns? Of course you can but you can't treat it like it has 6 columns. It could be more exposed to wind, heartquake, floors weight etc.
If you concentrate to one secret you miss all the other 999
I am not perfect, I also have moments when I lose the path but I am aware that I have to expand my awareness. Sometimes all I need is someone to tell me "remember to look over your hands", someone that reinforces my beliefs. It can be a friend that touches your shoulder, it can be a friend that tells you certain things.
Sometimes all you need is that little wind behind your shoulders that helps you to run 100m in 9.90seconds.
But you have to be trained, you have to be able to run 100m in 10seconds seconds or the wind can't help you to lower the time to 9.90seconds!

Alex
  • #623
  • Jul 21, 2016 7:50pm Jul 21, 2016 7:50pm
Quoting TooSlow
{quote} Waiting patiently is the hardest part.
The hardest part is to write a line of code to identify this moment, it's the biggest challenge and the most important one.

The mindset is important when this code is written, it contains everything you know about price.

The mindset is mindless when you trade the signals, no emotions involve you don't want to be thinking when you execute trades, just execute as they happen, better still if this execution process is automated triggered by you.

Quoting cat
{quote} I believe I answered this question on the first page of this thread.... " The reason - because it's far easier to try and pick a top or a bottom, or counter-trend trade, than it is to wait patiently for a pullback, identify the point at which the price is about to rejoin the overall momentum, and pull the trigger. I know for a fact that more people attempt to out think the market than go with it - it is human nature to succumb to this tendency to believe we are somehow cleverer than the market, and it is the graveyard for the majority...
Disagree with this.

"What goes up must come down" - it don't always happen that way, we don't know how far it'll go up before it comes down, it may keep going up for a very long time if price is in a strong persistent trend.

Most traders are seduced by this overly simplistic analysis and paid the price for adopting such mindset without proper reasoning. If only it were that simple.
  • #624
  • Jul 21, 2016 8:50pm Jul 21, 2016 8:50pm
Quoting skyway
{quote} The hardest part is to write a line of code to identify this moment, it's the biggest challenge and the most important one.
Have you done so?
My Threads: Trading is as simple as 1-2-3, Highest Open / Lowest Open Trade
  • #625
  • Jul 29, 2016 7:20pm Jul 29, 2016 7:20pm
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IMPROVISE ADAPT OVERCOME
  • #626
  • Jul 29, 2016 7:22pm Jul 29, 2016 7:22pm
Attached Image

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IMPROVISE ADAPT OVERCOME
  • #627
  • Jul 29, 2016 8:17pm Jul 29, 2016 8:17pm
Quoting cat
An impromptu post, one connected in a way with the ' secret to success' title of this thread. I'm reading a book at the moment about a Canadian RAF Spitfire pilot during WW2, and one single sentence sparked a reality with trading, so I'm sharing it here - " Mind you, there were always a few new green pilots who didn't know how to scan a bit of sky and know absolutely that there were no aircraft there. One hoped that they would learn before they got clobbered, or before they allowed a Hun ( German ) to clobber ( shoot down ) the Spitfire next to...
I understand that the average life expectancy of a Spitfire pilot was less than 14 missions.....
  • #628
  • Edited 10:13am Aug 1, 2016 10:02am | Edited 10:13am
Quoting PhilippineFX
{quote} I understand that the average life expectancy of a Spitfire pilot was less than 14 missions.....
There was a strong positive correlation between flying experience and survival, in that the more flying experience a pilot had, the greater his chances of survival. Some Battle of Britain pilots went into battle with just 10 hours solo flying experience, and needless to say, they were easy meat for the battle hardened Luftwaffe pilots. A bit like traders who start trading a live account after a few weeks or months, they seldom get very far.

Also, it wasn't just being able to survive in the air, it was being able to shoot as well, because unless pilots were properly trained, it was well nigh impossible to hit a small, fast moving object travelling at 400mph when the pilot himself was doing the same speed. The angle and amount of deflection, plus the range, were all critical factors if a pilot was to hit an enemy aircraft, and knowing when to pull the trigger, neither too soon nor too late, was the key. Again, great parallels to the business of trading.
  • #629
  • Aug 2, 2016 9:59am Aug 2, 2016 9:59am
I am a beginner in trading but what I have learnt during two months is that the secret of successfull trading is having good knowledge of how market works. also it's important to know how to use all the instruments and signals
  • #630
  • Aug 2, 2016 3:34pm Aug 2, 2016 3:34pm
In forex trading the most important things to me is discipline. We are so passionate to take forex as gambling. We are relying on fate. If we start from small amount and gradually develop our strategy, we may the real fruit of forex. If a trader has come to earn quick profit from forex market, he should go to fry other fish rather than forex.
  • #631
  • Aug 2, 2016 11:20pm Aug 2, 2016 11:20pm
If you know how to trade, then it is easy. The main place where the problem will come is when you don't know how to trade. I also don't think that the person who don't know how to trade will attempt to trade in Forex because this thing will sound as if he or she is trying to commit himself or herself to what he or she knows that it's not possible.
  • #632
  • Aug 3, 2016 12:27pm Aug 3, 2016 12:27pm
Understand that trading is market speculation and we buy to sell back later & sell to buy back later to this market.
We are not emotionally attached to what we buy or sell. We are happy to do either when the situation tells us.
When we take part, we are entering an auction so we must have a clear plan of what we intend to do & have the discipline to follow that plan.
We don't get caught up in the atmosphere of an auction and chase price.
If the auction does not interest us we stand aside. There will always be another opportunity.
Always do your homework beforehand - be prepared for all outcomes.
Market is always right - be humble, accept the reward & cost graciously.
Becoming an expert takes time, this is the school of very hard knocks. Put in the time & effort to learn & build experience.
Always have an open mind and keep learning.
It never gets easier, you just get better
  • #633
  • Aug 3, 2016 12:40pm Aug 3, 2016 12:40pm
sleep well that the biggest secret for me, when our trade make our sleep still good its on the right path
the gambler
the devils apprentice Return Today: na
  • #634
  • Aug 3, 2016 12:47pm Aug 3, 2016 12:47pm
Quoting Soekarno
sleep well that the biggest secret for me, when our trade make our sleep still good its on the right path
I know one person... he is mad about trading and he can stay without sleeping the whole night and than he looks like zombie) Trading is really like a addiction, but I cannot imagine myself without sleeping))
  • #635
  • Aug 3, 2016 8:09pm Aug 3, 2016 8:09pm
Quoting antonsatu
Hallo Cat, You are right. I think some of our friends here agree with you. But, why still many traders loss. I think they dont follow their rule CONSISTENTLY. This is just my opinion. thanks,
Well I feel you are right, many traders don't keep to the rules. Especially new traders who want to make profit so quickly that they abandon their trading strategies.
  • #636
  • Aug 4, 2016 12:19am Aug 4, 2016 12:19am
Quoting TooSlow
{quote} Waiting patiently is the hardest part.
This is a double edged sword.

after waiting patiently for endless hours or maybe days for the set up which ticks all the boxes ,you enter the market only to see price go in the other direction and take your stop .this is were the mind games come in,your back to patience waiting the next set up that meets your systems rules,hours or maybe days pass and you get your entry only to see price travel in the wrong direction and hit your stop.3 or 4 times this happens ,this is were most traders start to question there systems and start to change its rules ,this is were traders start to read threads claiming the whole market is random and instead of dismissing the total random theory start having doughts .

with there new modified system some time up the road they have the same problem,at this point they subscribe to mingary .

they had great patience but a lack of mental staminia ,they failed to understand the the parameters of there method or system .will my system survive in the most challenging conditions and if so mentally i can ride out the dought and have confiedence in my method to produce over time a positive expectancy.

i would say we need the patience to exam our method over a prolonged period in all market conditions and most fail at this key stage.
as alexx said ,its a combination of secrets to sucsess ,and there is an order to this .
  • #637
  • Aug 15, 2016 4:36pm Aug 15, 2016 4:36pm
Quoting blunderbuss
I thought this might be of interest... I realize people have their own special trading techniques for choosing entry and exit points, but I found a website with a decent discussion about selling covered calls. I took a screenshot, 'cause that's how I kill time. :nerd: (Granted, this is about options trading, not FX trading, but I thought I'd pass it along.) {image} Something about "generate an incredible half-million dollars in income in just a single year" got my attention. The idea of buying a vacation home in Tahoe didn't exactly turn me off,...

It did not say what the investment was in the stocks and options the return mentioned could be 5 percent or 1000 of percents.

Best regards
  • #638
  • Aug 16, 2016 1:35pm Aug 16, 2016 1:35pm
Quoting jgadefelth
{quote} It did not say what the investment was in the stocks and options the return mentioned could be 5 percent or 1000 of percents. Best regards
Actually, in the conversation, the client owned 2,000 shares of "Siebel Systems" (which I think
was bought up by Oracle). He wrote covered calls on those shares. It's one of the first strategies
that are discussed in this highly-recommended book:

Attached Image

The problem is, I don't know the share price history of Siebel Systems. According to this timeline,
the company went public at $17/share. If he bought in at that price, that's $34,000 in stock.

So, if the comment is true, he got really good at writing covered calls, because he made
"an incredible half-million dollars in income in just a single year." ($500,000 / $34,000 = 1470%)

Again, here is the original doc:

Attached Image (click to enlarge)
Click to Enlarge Name: 2016-06-26 - SELLING COVERED CALLS - Stanberry Research dot com.png Size: 60 KB
HELL IS EMPTY, ALL THE DEVILS ARE HERE. -- Shakespeare
  • #639
  • Aug 16, 2016 2:15pm Aug 16, 2016 2:15pm
Quoting blunderbuss
{quote} Actually, in the conversation, the client owned 2,000 shares of "Siebel Systems" (which I think was bought up by Oracle). He wrote covered calls on those shares. It's one of the first strategies that are discussed in this highly-recommended book: {image} The problem is, I don't know the share price history of Siebel Systems. According to this timeline, the company went public at $17/share. If he bought in at that price, that's $34,000 in stock. So, if the comment...
Yes it is an awsome return. I dont know about that stock was it a highrisk stock or something. The way i was learned coverd call was you buy a big company stock (secure ) like facebook or amazon then you have covered call on it if you good you can make a return of 30 percent a year on your investment.

Best regards
  • #640
  • Edited 2:37pm Aug 16, 2016 2:25pm | Edited 2:37pm
Quoting blunderbuss
{quote} Actually, in the conversation, the client owned 2,000 shares of "Siebel Systems" (which I think was bought up by Oracle). He wrote covered calls on those shares. It's one of the first strategies that are discussed in this highly-recommended book: {image} The problem is, I don't know the share price history of Siebel Systems. According to this timeline, the company went public at $17/share. If he bought in at that price, that's $34,000 in stock. So, if the comment...
The article says he "started out" with 2,000 shares of Siebel Systems. How much did he add later??? How many other stocks/companies did he buy & write calls??? He didn't make the full half million dollars on just the 2,000 shares. I just recently gave an example of a covered call comparison of Google (GOOG). (http://www.forexfactory.com/showthre...75#post9079775) Notice the profit & % ROI after 1 month with an advance in the price of the stock. You'll never make $500,000 in 1 year writing covered calls on a $34,000 investment. You would need substantial gains from the appreciation in the stock itself but that isn't income from writing covered calls. I had a sizable account of many covered call positions & did pretty good with it but nothing close to the numbers he's suggesting so I think there's a bit of information missing???

(from Aug. 11th post):
Google (GOOG): current price=785

1-Covered Call: 100 shares>> $78,500 minus $725 (Sept. 800C)= $77,775 investment
Stock closes @ 800 on expiration date = $2,225 profit (2.86% ROI)
Stock crashes & closes @ 700 on expiration date= $7,775 loss
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