The Big secret to trading success

Quoting TooSlow

Disliked

{quote} Waiting patiently is the hardest part.

Ignored

Love this quotation:

‘If most traders would learn to sit on their hands 50 percent of the time, they would make a lot more money.’ - Bill Lipschutz


KP

Chose a trading style..

After almost 10 years doing it and very profitable for the last 4 or 5 years I learned something.

If you want to be a successful trader ( be it Forex, equities or anything else) you have to know how to lose.

I'm around FF since 2007 ( I used to have a different username in the beginning) and I guess I got to read pretty much everything from the "gurus du jour" and their theories.

Trust me !!

There is nothing beyond TAKE YOUR LOSSES !!

But the ones which can grasp and apply this simple principle are (according to my experience) close to none.

Talk about losing Oracle, here's the great man himself on losing -

I presume that there's a bit missing; there is a link in the image I posted, which I'll repost here:

http://stansberryresearch.com/invest...covered-calls/

I should point out that I don't know if it's possible or not; FWIW, I have NOT tried it yet.
I merely posted it to draw people's attention to it.

Also, there is no date on that webpage, so there's no way to tell if this situation happened recently. Perhaps,
and I'm just spitballing here, there was a time back in the 1990s when this occurred, and the
growth of Siebel Systems was ideal for this sort of scenario.

And yes, the dude could just be throwing out a number to get clients to sign up, much like the way that
Uber got a lot of people to sign up as drivers by floating the idea that drivers "could" make $90,000/year
just by driving an Uber.

It's not up to me to prove it. It's up to the individual options trader to do their due diligence to see
if it can be done.

Getting those results on a $34K account won't happen. Covered calls is a pretty good strategy that gives a little downside cushion & a little upside bonus if the stock doesn't rise much. I prefer call spreads rather than covered calls because it requires so much less capital & there's much less @ risk if the stock crashes. Here you CAN get some crazy % returns but still need to pick the right stocks.

***NO, options were never priced that differently back in the 1990s to get those results :-)
***Pick any stock & I'll show why it's not possible regardless of the "hype" or growth of the stock.

"You have to know how to lose." so true, only if some people just take this piece of advice can change thei trading forever.

Before everyone gets upset at me for making false claims, I'd like to repeat: those results are NOT my results. I found them
on a website and I thought I'd share them with you. If people think it's all b.s., then blame the original website.
Blame Stansberry Research if you think the results are skewed. I'm just passing on the information.

small losses lead to a big win.

Haven't posted here for ages, but came across a nice little bit of advice for what I know is one of the biggest, if not the biggest obstacle preventing anyone from ultimate trading success - your mind and how it sabotages your trading.

I won't go into anything I've covered before if you know my threads, but it will suffice to say that the first thing we have to do as traders or aspiring traders is put the mileage in - you simple cannot/will not be successful in this business until you have actually acquired the skill of reading price movement, a process that takes most of us several years.

Once we have however, then we've actually got to be able to use these skills to take money out of the markets, consistently, mechanically, day after day, week after week, and this, as we all know, is not so easy for a variety of reasons, the number one being based around fear. You simply cannot be burdened by a fear of losing because no matter how technically proficient we become, we are still going to lose some of the time.

We all know this, but often without a strategy, fear of losing can result in a whole host of mistakes - failing to take trading opportunities, exiting positions too early etc.

So back to this short piece I came across earlier today which may help a few people who have been finding they are not taking trades for fear that the market will snap back against them and stop them out, an irrational emotional response which unfortunately we are all hard wired with from our evolutionary past in which the ' flight rather than fight ' response to danger has ensured our survival as a species. In trading however, this ' flight' to safety is what kicks in when we sense danger, the danger being when we are about to put on a position, because it is actually a lot easier and a lot safer to sit back and do nothing than launch ourselves into the extreme uncertainty of putting on a trade. This mindset however, is death to the trader.


" Each time you enter a trade, assume that you are going to lose.

I know that this sounds funny; maybe even stupid or self-defeating. But after youve done this long enough, you can see the value in preparing yourself for the worst case scenario, and heres why: Because you are going to see the worst case scenario. And if you arent expecting it, its like that shot of negativity that we mentioned above.

Instead, if you assume the worst-case scenario right up front, this allows you to be pleasantly surprised a good amount of the time. And when you are pleasantly surprised, now you can do your job of actually trading the position by managing it.

This does something else that's pretty important: It ensures that any loss you take in a position will be minimal. Because if you are looking at each trade as an expenditure of capital for a chance (and only a chance) to make more, youll likely be more conservative with that capital.

When you enter a position, look at the amount you have risked as a sunk cost that is being paid for the opportunity to make money on that trade. The trade may work it, or it may not but the amount you put up to risk is a cost of doing business in search of opportunities. "

Just a few words about Exits. In many ways these are much more difficult than entries because as long as you are in the trade you are free to exit any time you like, whereas with entries, you may get more than one bite at the apple, but once the price has moved beyond your risk level that's it, you've missed it and have to wait patiently for another opportunity. With Exits therefore, you've got to have a clear exit strategy if you're to avoid constantly getting out too early or overstaying your welcome. For me this is usually a pre-defined exit level in the form of a moving average, fibonacci level, trend line, pivot point, or very often a combination of these. Exits take a long time to master, and I personally have spent many thousands of hours trying to get them right.

That's it. Good luck to all.

The biggest secret behind the success in trading is patience. Everything we engage ourselves in needs a lot of patience to give us results. Similarly Forex trading demands patience but most of the traders lack such quality. They just want to make profits in couple of months which is not possible and end up losing their money. What they ignore is the long term perspective. Initially you need to put a lot of time in building, testing your trading strategy, understanding market philosophy, refining your trading skills and once you gain experience and confidence then you should invest your real money. Yes learning these things will take time but at the same time it will increase your earning ability.

your word is true wisdom but doing that would not be easy... trust me!

I also write this in my thread today ... the lack of understanding simple things make huge problems .. forums not ever a friend to find the path, to many useless speaks and tools are on the road ... after now two years of intensive learning, i am able to increase my account ... was not the easiest thing in my life

My last hint and you do good to keep this in mind on the road!

All about magnetism in forex. Do you can see the magnets on chart? They are always all over it. Price is not going wild, if you will say this, you have no clue what are the magnets are.
Look deeper with more calm and you will find them.

thanks this information is helpful for me.

pls I like to know hw u enter at lower time frame when MAs confirms direction of trend in bigger time frame
hw do I get to ur previous thread where u share such?thank u ?
how do determine the S$R and enter with MAs

Nice thread. The big secret to trading success is hard work, there is no exception. Probably some luck too.

 

Hi,I just would like to mention if you are a good trader don't lose your time working with Tradency or Zulutrade,they are both crap,the best place where you can make money like signal provider today is at ayondo or eToro.Tradency paying close to 0,at the end of the month you will take between 0.02-0.05 USD per client or if you have 2000 clients(this the max there) you will get 40-100 USD per month but in ayondo you can make ten of thousands with these clients.Tradency just changed there payment model to the worst in this business and I guess you will not find any good trader there anymore!What a pity,once they was not so bad,but they make the business just a crap About Zulutrade they are since years absolutely crap as they just don't want to pay your fee,making a lot of tricks just not to pay your commission.I am still waiting(already 2 years) to take my about 1000 USD,but no hopes I will get it at all Sorry about this post here,I know it's not about the topic above,but I just wanted to share my experience somewhere.

The big secret to trading success is secret. Otherwise it wouldn't be a secret.