Why winning in Forex is impossible? - page 2

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Hakim Precious
352
Hakim Precious  
Afsal Meerankutty:

Not Easy doesn't mean Impossible :)

Is winning in a Business is Impossible ? Financial market is the same.

you said it all!

Ademir Basso
157
Ademir Basso  
NELODI:

Why are you using stops, if you know that? Seriously. Why? I never use stops. I open and close all my positions manually, because I've observed the exact same thing you are describing. If something does not work for you, accept it and look for a different solution. If you keep making the same mistakes, don't be surprised if the outcome doesn't improve.

Learning how to trade is not about joining seminars  and repeating what you've been told. It is about trading on your own, learning from your mistakes and finding out what works and what doesn't work FOR YOU, then using that to improve YOUR trading strategy. It is a process, which takes a lot of time and is different for everyone. But you need to learn and adapt, not just do what someone else told you to. Otherwise, you'll just be joining 90% of traders who keep losing money and eventually give up.

The biggest mistake most traders do, is to over-use leverage. I'm NOT against using accounts that give you high leverage. I also trade on accounts with 500:1 leverage. What I mean is that you HAVE TO make sure that your total exposure (open volume on all symbols) is low enough to survive the worst possible thing you can imagine happening on the market before the price turns in your anticipated direction and you can collect your reward. The root of all evil on leveraged accounts are margin calls, which always happen if you over-use the leverage.

Also, please keep in mind that each instrument available on the market is different. There is a HUGE difference between trading Stocks and Forex, but there are also big differences between each currency pair on Forex. For example, even if you know exactly how and when to trade EURUSD, do NOT try to trade EURAUD or NZDUSD or XAUUSD or any other pair by blindly following the rules that worked for you on EURUSD, because active trading times a different, range of movement is different, the spread is different, on some accounts even margin requirements are different, and ... most importantly ... people who trade these instruments are different. Everything that matters is different. The more instruments you trade, the more opportunities you will have, but you need to handle every instrument with respect to its own rules, or you'll keep losing money.

So ... how long does it take to become profitable?

Well, it depends on a lot of factors, but ... in my experience ... the most important are (1) your ability to learn from your mistakes, (2) your imagination in looking for solutions to the problems you will face, and (3) the amount of time you can dedicate to trading. If you trade with low volumes (keep your exposure low) and execute all your trades at the current market price (avoid using Take Profit, Stop Loss, Buy Stop, Buy Limit, Sell Stop or Sell Limit orders), you can learn trading on a DEMO account, without risking real money.

Once you have a solid trading strategy that works CONSISTENTLY over a LONGER PERIOD of time (I mean six months and longer, not a couple of weeks), then you can make a small deposit on a REAL account and try the same with REAL money. There will be differences, offcorse, because your actions will have an effect on the market, especially when liquidity is low, and ... because you will also have to learn how to control human emotions like fear and greed, but ... if you do NOT deviate too much from what you've already learned while trading DEMO, you should have comparable results on a REAL account. Unless something fundamental has changed and the market conditions are completely different now, in which case you should re-evaluate your trading strategy.

Obviously, you should trade DEMO with the same amount that you plan to deposit on your REAL account once you've learned how to trade. If you trade DEMO with $100k USD, but then only deposit $1k USD on your REAL account, you will end up with a margin call very quickly.

I know there are A LOT of self-proclaimed "Gurus" out there, who take advantage of people naive enough to fall for their stories of big riches, just waiting for you to grab on Forex, or the Stock Market, or trading Options. With words like "Get my PROVEN STRATEGY for ONLY $100 (normal price = $1000) and enjoy financial freedom for the rest of your life". But ... in reality, the ONLY way to achieve a point where you can trade profitably, is to do your own research (there are a lot of free websites that explain how the markets works, what indicators are and all the other stuff you should know), then trade by yourself and work on developing YOUR OWN trading strategy. And ... always keep in mind that Trading is a LONG-TERM PROFESSION. If you approach Trading like gambling, or dream about becoming rich quickly, your results will be random at best, but you will be losing more and more money over the long run. And, last but not least, there are a lot of ways to make money. If you do NOT like sitting in front of the Screen and looking at the Charts, then Trading might not be the right PROFESSION for you.

Anyway ... I'm NOT offering financial advice, but simply expressing my personal view, which is based on my personal experience, so ...
You're very wise!!!
Waseem Raza
9694
Waseem Raza  

Lot of Gurus are here...

but in this business over 80% peoples loose and it's an open fact

Jean Francois Le Bas
995
Jean Francois Le Bas  
NELODI:

Why are you using stops, if you know that? Seriously. Why? I never use stops. I open and close all my positions manually, because I've observed the exact same thing you are describing. If something does not work for you, accept it and look for a different solution. If you keep making the same mistakes, don't be surprised if the outcome doesn't improve.

Learning how to trade is not about joining seminars  and repeating what you've been told. It is about trading on your own, learning from your mistakes and finding out what works and what doesn't work FOR YOU, then using that to improve YOUR trading strategy. It is a process, which takes a lot of time and is different for everyone. But you need to learn and adapt, not just do what someone else told you to. Otherwise, you'll just be joining 90% of traders who keep losing money and eventually give up.

The biggest mistake most traders do, is to over-use leverage. I'm NOT against using accounts that give you high leverage. I also trade on accounts with 500:1 leverage. What I mean is that you HAVE TO make sure that your total exposure (open volume on all symbols) is low enough to survive the worst possible thing you can imagine happening on the market before the price turns in your anticipated direction and you can collect your reward. The root of all evil on leveraged accounts are margin calls, which always happen if you over-use the leverage.

Also, please keep in mind that each instrument available on the market is different. There is a HUGE difference between trading Stocks and Forex, but there are also big differences between each currency pair on Forex. For example, even if you know exactly how and when to trade EURUSD, do NOT try to trade EURAUD or NZDUSD or XAUUSD or any other pair by blindly following the rules that worked for you on EURUSD, because active trading times a different, range of movement is different, the spread is different, on some accounts even margin requirements are different, and ... most importantly ... people who trade these instruments are different. Everything that matters is different. The more instruments you trade, the more opportunities you will have, but you need to handle every instrument with respect to its own rules, or you'll keep losing money.

So ... how long does it take to become profitable?

Well, it depends on a lot of factors, but ... in my experience ... the most important are (1) your ability to learn from your mistakes, (2) your imagination in looking for solutions to the problems you will face, and (3) the amount of time you can dedicate to trading. If you trade with low volumes (keep your exposure low) and execute all your trades at the current market price (avoid using Take Profit, Stop Loss, Buy Stop, Buy Limit, Sell Stop or Sell Limit orders), you can learn trading on a DEMO account, without risking real money.

Once you have a solid trading strategy that works CONSISTENTLY over a LONGER PERIOD of time (I mean six months and longer, not a couple of weeks), then you can make a small deposit on a REAL account and try the same with REAL money. There will be differences, offcorse, because your actions will have an effect on the market, especially when liquidity is low, and ... because you will also have to learn how to control human emotions like fear and greed, but ... if you do NOT deviate too much from what you've already learned while trading DEMO, you should have comparable results on a REAL account. Unless something fundamental has changed and the market conditions are completely different now, in which case you should re-evaluate your trading strategy.

Obviously, you should trade DEMO with the same amount that you plan to deposit on your REAL account once you've learned how to trade. If you trade DEMO with $100k USD, but then only deposit $1k USD on your REAL account, you will end up with a margin call very quickly.

I know there are A LOT of self-proclaimed "Gurus" out there, who take advantage of people naive enough to fall for their stories of big riches, just waiting for you to grab on Forex, or the Stock Market, or trading Options. With words like "Get my PROVEN STRATEGY for ONLY $100 (normal price = $1000) and enjoy financial freedom for the rest of your life". But ... in reality, the ONLY way to achieve a point where you can trade profitably, is to do your own research (there are a lot of free websites that explain how the markets works, what indicators are and all the other stuff you should know), then trade by yourself and work on developing YOUR OWN trading strategy. And ... always keep in mind that Trading is a LONG-TERM PROFESSION. If you approach Trading like gambling, or dream about becoming rich quickly, your results will be random at best, but you will be losing more and more money over the long run. And, last but not least, there are a lot of ways to make money. If you do NOT like sitting in front of the Screen and looking at the Charts, then Trading might not be the right PROFESSION for you.

Anyway ... I'm NOT offering financial advice, but simply expressing my personal view, which is based on my personal experience, so ...

also learn to react instead of trying to predict

NELODI
344
NELODI  
Jean Francois Le Bas:

also learn to react instead of trying to predict

Good point. And very important!

You do need to have an opinion before you open a trade, but you also have to be flexible enough to change that opinion and act accordingly, if your initial assumption turns out to be wrong. In essence, you have to think in probabilities, which is hard when you have no experience, but becomes easier the more time you spend trading. It's not like "if X happened, then Y is going to happen". It is more like "if X happened, then Y is more likely to happen than Z." But these probabilities keep changing as the market reacts to every new trade, so you should also learn to react, instead of trying to predict the outcome. And, there are also times where the probability of "Y" or "Z" happening are very close to each other, in which case it is usually better to stay out of the market, than to gamble on either "Y" or "Z".

But ... don't over-think it. Once you've learned the theory and have a fairly good understanding of how the markets and technical indicators work (do your research), just go ahead and start trading on a DEMO account. Spend as much time as you can trading, because that is the ONLY way to actually learn how to trade.
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