Just to share my experience to newbie like me!
Hi everyone, I was just a newbie on this business, say less than a year. I want to give a piece of advice to all new aspiring trader just like me.
Its true that FOREX is unique income opportunity that no other business can match, in as far as income potential is concern.That is why there is a lot of individual who jump on the bandwagon, hoping to benefit on this field.
But on the other side of the story, there is a very high percentage of trader losing money in FOREX. In my experience, it took me sleepless nights doing research and hundred of hours reading Forex e-books. But the most important thing I found out about this market, is not about the technical aspect, winning FOREX cannot be achieved by just having a good trading rule or indicators, of course you need to learn all of this, but the one that will determine success in Forex is about how you will control your emotions, have self-discipline, patience and consistency. Its a matter of how you will control yourself while in front of your trading flatform.
Its about emotions, real world dominated by emotions, FOREX don't need emotions, you will surely wont succeed if you trade with emotions.But that is the burden because as humans we are governed by emotions. I agree to some expert that FOREX is 80% psychological rather than technical.If you can overcome emotions while trading Forex, I will be sure that you will be a successful trader in years to come.
My famous quote is:
A person with good self-discipline but with poor trading method will out perform a person with poor self-discipline but with the best trading method currently available.
In other words, you got to have control of your emotions, while trading FOREX.
That's all folks, I hope you are enlighten on my post.
U r just fired the bulls-eye, hats off to u, Yes Forex does repay to our emotion, i personally lost my total a/c balance not for my lack of knowledge but mainly for uncontrolled emotional trading, so now am trying to rebuild my mind to be a pure treader just without any kind of emotion
Originally Posted by litoac
Thanks for the advice. but may u please elaborate on emotion discipline? what do you mean exactly..
I've been trading for a year now n not much profit is gained so far....
and also money management as well
Read Daily Forex Jurnals, from News paper or see tv updates, read as mush books as possible to know 'which is what', and see Trend line in chart don't just enter market without any valid reason, always gather 2 to 3 valid strong enough point to go short or long according to ur trading time. don't be exited, don't make panic if it takes some bucks from pocket, no one can dig 100% right here, just try to make ur profit count as much as possible.
Originally Posted by 207009
Great post mate! True, you need to control your emotion. Most of forex traders i met (including me) lose money because they can control their emotion.
Thanks for the simple but candid advice, I will always abide with my emotion, probably take a degree on emotion control.
see on top
Love the Original Qoute
I agree 100% with the orginal quote about discipline
AND "control your emotions, have self-discipline, patience and consistency"
1. control your emotions- You can do this by hiding your $$$ amount ans focus on the pips and not the dollar bills.. I started to do this about a year ago and it made a huge improvement.
2. Self Discipline: I do not know how we can learn this, but once you loss enough $$$ you will realize that maybe you do not have the discipline to follow your rules. What has heped me, is that I walk away from the computer screen after a bad trade, and I practice POSITIVE thinking... Maybe wierd to some, but check out Tony robbins. Or watch "What the bleep do you know."
3. Patience- we all experience this... we want to make money now, so we jump the gun and make a bad trade... So set a rule.. watch the market for 45 minutes before pulling the trigger.. I hear to often that people sit down for 5 minutes and they are already in a trade. The market is open ALL the time,, so what is the ruch
4. Consistency: well basically you need to follow step 1,2,3 over and over again... Which takes practive...
Advice to Newbies.. Stay on the demo account for over 2 years before goind LIVE... I am serious..
As a Newbie, I have "toasted" at least 10 Demo accounts ranging from usd3k to 100k. But that's what Demo accounts are for. Do not be afraid to try out your "strategies" as the accounts are all virtual money. Keep trying your strategies until you arrive at on which you are comfortable, confident, and profitable with. Only then can we begin to think of going on LIVE account.
I have been on forex Demo trading for over 5 months now, and I have only arrived at the stage where I am seriously sticking to one strategy and will ONLY think about a LIVE account after I've tested that strategy to the fullest...which is from 1st to 31st Mar. 2010
My first week of "serious" trading brought my usd5k account to usd14,182.84
Another thing which I hear frequently, here at FXopen forum and elsewhere, is that Demo platforms are "yes platforms" which have “Fast execution, no requites, no slippages, etc”.
However, I have been experiencing on my Demo accounts with FXopen “delayed execution, re-quotes, slippages, and off-quotes”, especially during volatile market movements. I also have some open positions “forced closed” due to insufficient margin balance. Isn’t this exactly what is common in Live account too?
"Making Profit IS EASY, holding onto it, IS NOT!
...And one more thing..
I used to scalp for mini pips (and profits) when i first started on my forex journey. but recently I begin to think differently.
Scalping is...well...fun! Quick small profits at microsecond time..but you can loss all those hard earned mini profits in microseconds too.
We are here for profits, right? And so, I am turning away from scalping to holding position for bigger profits. Depending on my margin, I open a few positions (max 5) when I see from the chart that the currencies pair is either very high or very low, and than sit it out until I am happy with the profits before closing out.
I absolutely do not use Stop Loss (SL) NOW as I have found my positions closed by SL only for the market to reverse in a matter of a couple pips.
My available margin is my SL, but this is where money management comes in. Always ensure you have plenty of money in your available margin to avoid a margin call whereby one or more of your open positions will be forced closure.
I am still very much a Niewbie, and that's part of what I have learned so far. They said there is no 'right" or "wrong" way in forex trading, and that all traders develop their own trading style and strategy. I guess I am going through that process now, as will all Newbies will have to go through before becoming real full time successful Forex traders.
good work done mate
i would like to say you use good indis or system when trading i scalp too with other methods .
I use the 1, 5, 15, 30 minutes chart plus going back to as far as the chart can go to see what was the Highest & Lowest points of currencies pair. If I see the 1 min chart showing the currencies pair at near the top or way down at the bottom, I execute 1 single large trade and sit on my hands until the market reverse as it should. Just make damn sure you have plenty of free margin to ride out the expected losses to avoid a margin call.
Other times, maily to pass the time & for fun, I ride the daily peaks & valleys on a currencies pair. A person can scalp quite profitably with this as long as there is market movements.
"Making Profit IS EASY, keeping it IS NOT!"
Originally Posted by trendme82
I agree on all of your points my friend, except demo account for over 2 years!
For me demo accounts will be good only to familiarize the flat form, say 3 to 6 months. The best way to learn to trade Forex is to have real live account, by having a mini account of say 100 dollars or a little more and trade .1 lot per trade, will already goes a long way. Demo accounts will not teach you how to control your emotion because it is not real money your risking. Emotions start to set in when real money is involve.
I don’t know what other Newbies use Demo accounts for.
1) Familiarize myself with different trading platforms from different Brokers..i.e. tools, charts, trade executions, etc.
2) Try out various trading strategies: conservatively (0.5 to 1.0 lots) and aggressively (2.0 to 8.0 lots) and see which ones suit me best. I have burned over 10 Demo accounts (usd2k to 100k each) trying out various strategies over a 5 months period. I tried out scalping, going long & short for 1 to 5 days, hold positions over weekend, trade as market opens round the world (not easy due to different time zones), traded on signal advisors (not my taste), but have not traded on news yet (don’t have the necessary time and also too lazy to keep track).
3) I have since settled on a specific trading strategy (with usd5k starting capital) and am sticking to that and shall try it out for 1 month (now on my second week and trading account looking good). I treat that Demo usd5k account as “real” money, and I get the satisfaction when I performed a trade as I have expected it to perform.
4) I get the usual “requotes, off-quotes, system busy, etc” and is learning to live with that as, according to seasoned traders, that’s part & parcel of LIVE trading, along with slippages.
So, Demo accounts are good for Newbies like me as without them, if I were to have jumped in LIVE some two months ago like i wanted to because I thought I was ready, I would have lost all my money as I was relying on the wrong type of charts to help me enter trades.
The temptation to stay opened in a hugely profitable position for just that extra pip is still very strong, and I’ll have to keep that under control by the time I go Live.
"Making Profit IS EASY, keeping it IS NOT!"
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