Many losses..Small losses..Fair wins...Daily Profit
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MY WAY OF FOREX TRADING:
I Learnt about forex trading from a friend of mine some years back. The guy told me this thing makes money, he was happy, he was making 20 pips a day at 0.1 lots a day. His account was 8000, so it was pretty easy to survive. He had survived for 3 months by Gods grace without using a stop loss. I paid a handsome fee to him to learn the business. I have since lost almost 50,000 dollars.
I have since searched the internet, FF forums, for the magical indicator, magical price action set-up, holy grail, social trading platforms best performers, etc..to my dissatisfaction. Strategies seem to work for particular days/weeks and or a few months before markets conditions change and BOOM….no more.
Even those who post their strategies can never let you have a glimpse on their live accounts. I usually wander why?
I have since come to the following conclusions as of the 1 stof May this year: (and GUYS this is strictly my opinion, my research, my way of trading, not MEANT to hurt anybody’s belief --)
1. I think almost 100% of traders (as per internet strategies) believe that ‘’a trend is your friend’’. I don’t believe so. I believe a trend is a trend because it has already formed. If I’m able to tell that this is trend is going UP or DOWN, then I’m late for the ‘party’, because it means a reversal is possible any time from then.
2. For any business/commodity to profit, you must buy low and sell high.
3. To make 10, 20, 50, 150 pips a day in forex I don’t need to trade more than one pair because every pair moves enough pips in a day up and down to give that. All pair including metals are related in my opinion…. concentrating on one seems pretty good for me. People who trade more than one pair are probably trend following.
4. Since I don’t care about the ‘Trend is your friend’ stuff, I don’t need to trade more than one-time frame. One-time frame is enough for me.
5. The internet and all forex teachers tell us that the higher time is most accurate. I personally believe that all timeframes are the same. Higher timeframe gives you big pips when you are right but also will give you big losses when you’re wrong. Probably you need a big account so that even if you made 10% a year, you would be happy. But if you have 1000 dollars or even less, you need to trade on a small timeframe that gives few pips for stop loss; if you are to get a dissent pay.
6. I can’t accurately predict market direction, but I know that the market definitely moves
7. Its important news that move the market, therefore I have much interest in the market especially on news days
8. I also noticed that the market moves/trends and the consolidates….moves and consolidates….I therefore should do the same in my trading.
9. When trading 0.01 lots for 20-dollar account, I should be able to have the same comfort/emotional feeling like when trading 50 lots for 100,000 dollars without fear because I’m risking the same pips like for the small account and same %age of my capital. The strategy should be the solid for the two scenarios.
10. Before I get a big move for big pips for the day, I may get many small losses, therefore I need to plan my capital, so that the losses are catered for.
11. I need big moves to cater for my small losses, therefore I don’t scalp the market. When the market moves in my favor, I ride it till it loses momentum. However, I quickly get out of trades that don’t seem to move according to my strategy.
12. I open my business daily and close shop daily, therefore I sleep comfortably knowing my profits or losses
13. All indicators are the same, (with just different setting and little adjustments). Therefore, I use ONLY one for my trading, because when I use many, they confuse, offering signals at different times
14. I also noticed that indicators just follow price, therefore I only use the indicator to give me a smoothed view of what the market is doing. I live with it but I don’t trust it.
15. Historical price-action set ups believed to work in future may be true, but I’m a little skeptical…. seems like price just does its thing and setups incidentally forms.
16. Trading with big stop loss levels to avoid market noise is something I don’t believe in. Number one, it stops me from taking big pips, and secondary, it would mean that I entered the market late.
17. I don’t have a fixed SL/TP level. I believe these should be dynamic depending on market dynamics.
I HAVE PUT UP THESE IDEAS FOR DISCUSSION… LETS SHARE…WHO SHARES WITH ME THE SAME BELIEFS