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

  • #21
  • Apr 22, 2017 1:32pm Apr 22, 2017 1:32pm
Quoting Paintomaker
Read the classics, a lot of great ideas can materialize from old school lessons.
Thanks Paintomaker. When you say read the classics, you mean the reading good ole books like "Reminiscence of a stock operator", George Lane Original work on Stocahstics..? or any other research work?
  • #22
  • Apr 22, 2017 5:02pm Apr 22, 2017 5:02pm
Quoting aaven
When you say Assess individual currency, is the approach towards analyzing the fundamentals of a given economy/currency (or) a suggestion that one look at the Charts of Individual Currency instead of a pair (or) both the above? Thanks
Both. If I buy EUR/USD thinking it will go up, I should be able to answer the following questions: Which currency is moving? Is EUR going up, or is USD going down? If the Euro is increasing in value, why is it increasing? If the US dollar is decreasing in value, why is it decreasing? Are those reasons still in play, or were they temporary? If they are still in play, how long are they likely to last?

If I don't have an answer to those questions, IMO I don't have a valid reason to think EUR/USD is any more likely to go up than it is to go down.
si hoc legere scis nimium eruditionis habes
  • #23
  • Apr 29, 2017 11:01pm Apr 29, 2017 11:01pm
Be sure to prove your plan works before risking any money. I have heard some people say the opposite, but since it is "HIGHLY" unlikely you will have a profitable strategy at first, then do your due diligence and check it out first.

It will be more difficult for you to trust your plan later, if you keep losing real money now. You will doubt your plan and yourself and hesitate or try to prove yourself right on losing trades, or take profit wayyyyy tooooo early. Do real analysis without money first, and know what to expect.

Just like everyone thinks they can sing, everyone also thinks they can trade. Evaluate your skills using demo first. First, review historical charts for design matches/flaws. Next, use the strategy tester to quickly assess entry and exit points against past performance. This is a "critical" step because you only make money trading forward, not based on the design of previous trades. If you are using multiple time frame tools, you might have to do some digging to find a good tool to use, or assess what you can for each time frame and overlap what you learn. Finally, demo trade the live market so you get exposure to the fundamental side, and can compare your plan against live conditions.
You cannot be extraordinary by being normal
  • #24
  • Apr 29, 2017 11:30pm Apr 29, 2017 11:30pm
Build Confidence instead of focusing on Performance or results.

You can only learn a system or a technique one time, but your performance/result is based on your level
of confidence or belief system. Every trade becomes a part of your belief system and your belief shapes
your personality...
Have an INVESTOR Mindset, but Trade like an ENTREPRENEUR
  • #25
  • Apr 30, 2017 12:21am Apr 30, 2017 12:21am
Dont trust on backtests, trust only forward testing -- and to do that consistently, one should learn to code, to create indicators/ ea to help you execute a CONSISTENT trade plan, for an accurate forward test.
Keeping It Gangsta
  • #26
  • Apr 30, 2017 12:53am Apr 30, 2017 12:53am
Here are my core rules of trading success:

Rule 1: Keep it Gangsta (this is a business)
Rule 2: Pimp them Pips (don't get married to the trade)
Rule 3: All Eyes On Me (Keep a cool head... Price action is stalking you)
Rule 4: Be an Ol' G (Remember your roots, and keep a cool head).
Keeping It Gangsta
  • #27
  • Apr 30, 2017 1:12am Apr 30, 2017 1:12am
after you learn principal of forex and platforms ,..... never trade DEMO accounts even for practice , always trade and even test your systems in real accounts ( you can use a cents or micro accounts).
  • #28
  • Apr 30, 2017 3:06am Apr 30, 2017 3:06am
Quoting aaven
Veterans and Newbies and any one in between, If you had to pick just one piece of advice from your trading career/experience, What would it be? and importantly, Why? Thanks
Lose your ego and admit to yourself you don't know what your doing, because then you will open yourself up to learning.
Never said I was Batman,all I'm saying is you'll never see us together.
  • #29
  • Apr 30, 2017 7:46am Apr 30, 2017 7:46am
Quoting aaven
Veterans and Newbies and any one in between, If you had to pick just one piece of advice from your trading career/experience, What would it be? and importantly, Why? Thanks
Currency pairs oscillate. Reason: Countries must keep their currencies within a range that will not destroy their foreign trade. Any outliers will eventually correct. LTCM was right in the end, but they were over leveraged and could not ride out the anomaly. As a retail trader, you can.
If you are good at something, never do it for free--Joker
  • #30
  • Jun 9, 2017 2:03pm Jun 9, 2017 2:03pm
Choose a Broker where you cant lose more than your Account Balance!


(And like loureed10 wrote - SL always!)
  • #31
  • Jun 9, 2017 2:54pm Jun 9, 2017 2:54pm
1. Find something that works
2.Understand why it works, to give you confidence to follow it. I have lots of patterns I have spotted in the markets but I don't trade them because I don't understand why it works. There has to be some logic behind your strategy.
3. Trade 1% of your capital per trade. Why? cause you are human, you want the fluctuations in your equity to be minimal to prevent your emotions from engaging.
4. Avoid trading too frequently .
5.Every strategy will have a bad period, beware of risking too much cause you will never be around when the strategy recovers.Remember 3!
Special one
  • #32
  • Jun 9, 2017 3:09pm Jun 9, 2017 3:09pm
Quoting tetis
after you learn principal of forex and platforms ,..... never trade DEMO accounts even for practice , always trade and even test your systems in real accounts ( you can use a cents or micro accounts).
Why mate? Demo account cannot make real money but can provide the real experience of trading which is really supportive for the traders who are particularly beginners. Do you think demo is harmful ? if you , why ?
  • #33
  • Jun 9, 2017 3:23pm Jun 9, 2017 3:23pm
Go with your first instinct, make the decision off that and do not deviate from that at all, if you do, you'll start 2nd guessing yourself and all that bullshit....just - do - not - do - it.
  • #34
  • Jun 18, 2017 10:43pm Jun 18, 2017 10:43pm
Quoting MitchellMcC
{quote} Why mate? Demo account cannot make real money but can provide the real experience of trading which is really supportive for the traders who are particularly beginners. Do you think demo is harmful ? if you , why ?
because all of us know that trading in demo is very different of trading in real in both of mental trading and also of broker conditions and as i said in my post after learning principals of trading and platforms, it is better going to real accounts, trading is just like driving a car or airplane you never be a driver or pilot with training in a simulator.
  • #35
  • Jun 18, 2017 11:25pm Jun 18, 2017 11:25pm
Trade less. Learn to see the very best trades and take only those. If this means you only trade once in a blue moon, fine.
"If The Fool persists in his Folly he will become wise." - William Blake
  • #36
  • Jun 19, 2017 1:05am Jun 19, 2017 1:05am
Quoting aaven
If you had to pick just one piece of advice from your trading career/experience, What would it be? and importantly, Why?
Hi aaven,

A tough ask to do in just one piece of advice.
I would say trade a method that suits your psyche (or else you won't be able to stick with it in a losing streak); discipline, consistency and risk control are the most important traits to have.....and always use stops to keep your losses small!
  • #37
  • Jun 19, 2017 4:13am Jun 19, 2017 4:13am
Yes. I think do what CindyXXXX said. But since you wont do that, do what dkrock said.
  • #38
  • Jun 19, 2017 4:35am Jun 19, 2017 4:35am
Quoting CindyXXXX
{quote} Dont do it once you're in it you're in it but weighing up the pros and cons the reward for effort
Once you are in it, finish it.
Don't think.
A bigger family is a joy.
  • #39
  • Jun 19, 2017 6:45am Jun 19, 2017 6:45am
Quoting CindyXXXX
{quote} Dont do it once you're in it you're in it but weighing up the pros and cons the reward for effort just isnt there. imagine being so good at this that any few hours you spend away from the screen is costing you money through opportunity cost your wife who you did it all for divorces you and takes the kids. Your health deterioates rapidly but still you're a 1%er and that keeps you going despite all else. its sick man the time investment HUGE. And even if you ivest 10 years of your one and only life chances are you will not make a dime in the...
For anyone who trades 4h and below you'll constantly feel like your missing out on trades (this implies for currency traders) when you're out and about or even when you're on your lunch break at home (I did). And it can be unhealthy in many ways, but you tell yourself this is what it takes. But is it ?. There're plenty of opportunities on 4h and higher TFs, you'd think that you'll make a lot of money if you traded 1m (in theory thats true) but in reality how many of us are truly capable of catching every move that occurs during the day ?

I realised thats not the lifestyle I want to pursue for myself, it started to affect the dynamics of my relationship with my family and with myself. And to add salt to the injury I wasn't making anything. I've just started trading daily, I screen the charts end of the week and every morning thereafter just to keep myself up to the with the price. Besides that I don't spend that much time around the laptop screen anymore. It is doable, you can make money (a lot if you do it right but then again learning to do it right takes A LOT OF TIME and PAIN this you can't avoid) off of higher TFs while you sleep or while you're out and about living life or spending time with your significant others.

My point is that success shouldn't come at a cost of you sacrificing your every waking hours in front of the charts, or sabotaging your relationship or family situation. If that's where you're at quit whatever you're doing step back, think it through and come back with some of kind of resolution. There's always a better way to do things. Don't be so stubborn (like I was)
...
  • #40
  • Edited 3:36pm Jun 19, 2017 3:07pm | Edited 3:36pm
Quoting Piquant
{quote} For anyone who trades 4h and below you'll constantly feel like your missing out on trades (this implies for currency traders) when you're out and about or even when you're on your lunch break at home (I did). And it can be unhealthy in many ways, but you tell yourself this is what it takes. But is it ?. There're plenty of opportunities on 4h and higher TFs, you'd think that you'll make a lot of money if you traded 1m (in theory thats true) but in reality how many of us are truly capable of catching every move that occurs during the day ?...
Hi,

I understand this (and similar from CindyXXXX) and I do sympathise with the problems intense trading can bring. Equally, though, I've traded intraday, constant screenwatching with trades lasting <1hr for eight years and it's fine for me. I miss loads of great trades and it simply doesn't matter, there is always another good one coming along in a moment. It's just a job, just a way of making a living. It either suits you or it doesn't, just like any other job. That's why it's so important to find a trading style/method/timeframe that fits your psyche and personality. Otherwise, of course, it is going to burn you up with stress and frustration.

Funnily enough, I feel those kinds of stress and frustrations trading higher timeframes. I simply can't bear running a position overnight, the personal stress to me is too intense. Exactly the same for trying to ride out retracements whilst waiting for the big trend move. Simply can't do it, it's just not me. But a bit of short timeframe catching (at least, trying to!) the immediate flow, that's great with me, no stress at all (as long as I have tight stop in place to keep my losses small!).

Point is, there are a zillion ways to trade and they are all pretty much as good or bad as each other. It's what you make of them that counts. And to do that successfully, you have to find the niche you are comfortable with (and employ some basic good trading disciplines) or you simply won't last the course.
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