How can you consistently win in the FX using Technical Analysis?

[paulaelli]

Could any body please provide specifics ..? ie. what are you doing for money management and the results ? what % or your account total do you trade ?
What kind of leverage ? What kind of stoploss..is it in % or by pips ?

Would be helpful to know what others are doing ...thanx

btw, i've started a USD500 ac wth FXCM wth a 200:1 leverage,a mentor suggested I trade no more than 30% of my account value and do a stop loss at 35pips of th opposite direction of my trade.

What do you guy/gals think..?

tqs again...

kem

Good good, info there, using a 2% risk i trade lots equal to about 100% i think, (the main thing for me is 2% risk and good SL size "often price based").

I suggest you start here What is Risk Management? | Risk Management | Learn Forex Trading and read all the senior undergrad section. it covers most of the risk management topics.
in fact you should start at the first grade again, i have done so a couple of times. (ok maybe elementary as below that is easy to remember).

[LILYCERTAIN]

well to consistantly win (or win constantly) on your trades is not possible. this is because there are Millions of ppl acting on the markets, and never are the same ppl doing the same trades twice. (each period is truely unique).

the key is expectancy, you need to win more then you lose. this is why risk management is important. the key is having a system that gives an edge on the market, (wins more then it loses), its not about having an edge on any one person or peoples. the players in the market often dont have plans that allow them to make regular wins, (theyre wins are sparatic and low or neg expectancy).
also there are many triggers, indicators, parameters, Styles, Timeframes, even entry / exit, and risk rules, that basically mean that few people are using one plan for trading, some people dont even stick to one plan. (usually result in poor trades). some do well, others dont, this is where you can get an edge on the markets

No one wants to win all the time, even if he/she can. Let the market continue to believe it cannot be done. Furthermore, no one wants to be watched.

[pogahh]

You don't use any stop loss or any indicators.
using chart harmonic pet
fib ret and ext
you use 50% of your capital only
double on 30 to 50 pips below your lost price or support/res
and the 50% you using to trade buy or sell at least 10 trade
the money management is the key to profit every time.
try this in demo and you start making money every TIME

[paulaelli]

You don't use any stop loss or any indicators.
using chart harmonic pet
fib ret and ext
you use 50% of your capital only

Question, what do you do when the price does move against you, am i to understand you add to your position, hoping to gain more if and when the price reverses?

[MaxGold]

I mean, if everyone is using technical analysis then how can you truly get an edge over anyone if everyone is using the same tools/indicators as you?

The answer is inside your question. You are right- many traders use technical analysis and some indicators are more common than the others. That is the reason why the work. In fact, if many traders did use the 200 sma as a strong resistance/support, it would not have the impact it has. In other words, technical indicators are working just we because we use them….

[Brighton4]

Hi Noob4fx I to am new to forex trading. I used to work in sportsbooks in Las Vegas and Reno Nv. A professional Gambler took me aside one day and told me how he made his living. Three Gospels are 1 DISCIPLINE 2 MONEY-MANAGEMENT 3 PATIENCES if one of these three gospels break down you are toast. No if's no ands and no buts .
I am going to learn as much as my two brain cells will allow before I invest one dime in the market. Don't worry about technical analysis and who might be using it. Your edge will be 1 DISCIPLINE 2 MONEY-MANAGEMENT 3 PATIENCES. Good Luck

[Sweet Pip]

Hi Noob4fx

Hi Brighton4...Noob4fx hasn't been around these parts since 2006...just say'in...but still good advise for everyone

[paulaelli]

the biggest issue that plagues traders is actually not Tech Analysis, its the Psychology of trading, and how the brain wants to avoid losses and pain. this is essential to why 90% of traders lose money.

Try reading a few books specifically on the issue. (Trading in the zone, Inside the mind of the turtles) are 2 great books on the issue).

[paulaelli]

Specifics, the key thing is that you have a plan and setups that you trade consistently. its not the best idea to ask everyone else what they're doing. cause you'll end up with multiple ideas and then not know what to do, and if you start trying all these ideas out and without being consistant with one specific plan you will likely get frustrated when you cannot tell which one works best.


a plan consists of at Minimum; a Setup, Risk and management rules, Profit taking Rules, reviewing of trades (especially the losses).
a plan should also be backtested. this inspires confidence in the plan. if you know how effective your plan is during a losing streak (Especially historical Drawdowns) you would be less likely to abandon it.

the Setup is a usually a Trigger Variable on the chart, and supporting indicators. Poplular setups include Moving Average Crossovers, Price Patterns, Support and Resistance and Trendlines, Fibo Levels, etc. and supporting indicators include Stochastics and MACD, ADX, SAR, etc.

Risk and Management rules, Include Stop Loss, Maximum loss per trade. Max losses per day / Week / Month. The max loss per trade can be organised by Fixed Amount, Fixed Percentage of Account, Fixed Lot size. The best in My opinion is Fixed Percentage. because during a streak of losses the sizes shrink as the account shrinks, this allows the account to survive the longest. Stoploss is quite a personal idea. it needs to be not to close that you get stopped out all the time as natural retraction occurs. and not so far away that a large swing in the opposite direction is required to hit it. (or that it never gets hit), A good example is above previous Highs, or Support / Resistance points. Max risk per day / Week / Month is an arbitrary rule some traders use to preserve money, basically if you get stopped out Multiple times in a Day / Week / Month. (depending on your Timeframes). you stop trading until the next Day / Week / Month.

Profit rules, Until profit rules are in place, no system can be profitable. this includes Breakeven Rule, Trailing Stops and Profit Target. Break even rule is to move your SL upto the Same Price as your Entry. this can be when you reach a fixed amount of pips in profit. a percentage of your original risk, etc. Trailing stops are to secure profit in your trade that no matter what you won't lose that profit behind the Stop. Popular methods are to Periodically take a Percentage of current profit. or move the Stop in Levels of original Risk. Finally the Take profit target. which would be the max profit to expect on the current trade. for example a historal point of support and resistance. or a fixed number or multiple of the risk level.


also reviewing the trade, this is where a diary is handy. noting what happened during trade (especially a losing one). this allows you to see issues that maybe keeping you from making more winners. (ie not sticking to your rules and emotional issues that make it harder for your consistancy).

Good luck in your trading.

[Aceman]

the biggest issue that plagues traders is actually not Tech Analysis, its the Psychology of trading, and how the brain wants to avoid losses and pain. this is essential to why 90% of traders lose money.

Try reading a few books specifically on the issue. (Trading in the zone, Inside the mind of the turtles) are 2 great books on the issue).

The mindset of the trader is indeed the most important factor in trading. If you have a good winning strategy but do not follow your trading plan because of your emotions, you will not be as profitable as you might be.

These emotions are mostly comprised of fear and greed. Fear comes in when you feel afraid of taking a possible setup after making several consecutive losses or exit the trade early because you feel afraid the market will turn against you. While greed occurs when you want to put more at stake or take more trades after winning, which may conflict with your trading plan.