I’ve been trading for 6 years so I guess I am not a newbie but I am consistently seeking knowledge. So I have some advice for newbies. Slow down!
When I started trading 6 years ago, I wasn’t very smart. I had good luck to begin but I was trading without any rules. I turned $2000 into $18000 in 2 short weeks. I thought I was on my way to being a millionaire in no time. Boy was I wrong. I blew out my account about 2 days after I reached 18k. I guess it’s safe to say that greed and being overleveraged got the best of me. I believe this is a mistake most newbies make.
Today, I am a little wiser. I’m still learning but I know in order to win, I must take it easy, otherwise the market will destroy you.
Also, having a great system to trade is only part of the equation. If the person using the system doesn’t know what they are doing then the best system will indeed fail.
In my opinion, money management is the most vital part of forex trading. If you have great money management skills you could actually lose more trades than you win and still be in profit.
Newbies, please google money management, youtube it, study it somewhere…it is the key to your account and your future as a forex trader.
You can still earn a living Forex trading if you understand the power in compounding and money management. I would say if one invested $1000, he/she can still earn a substantial amount of cash within 2 years @ just 1% daily gains. I may be reaching a little with 1% daily and if any experienced traders would like to add to this please do so because I am still learning as well…but my eyes have been opened.
Agreed the thing is making the transition from paper to live now.
Its a real kick in the face after 2 years of paper scalping. Now I guess I want to take it slow, if I can make 100 pips in a course of a few days I feel its safer because you have the time to get out even if its at a 10-25% loss at peak profit. Hell if I can turn this mini to a 4 figure let alone 5 I’ll be on easy street and say what you said to me this morning fx4aliving… “I’ve made my +35 pips i’m done for the day, Ta ta”
Taking fewer trades, using better judgment. I really understand pivot points now. Money management is the key in my opinion. That’s what I’ve been missing in the past. You don’t have to make HUGE gains to earn a lot in this market…take it slow and over the course of time, the money will accumulate.
Did you know if you earned an average of 10 pips per day for 3 years and investing only $700 you’d have $495,000? This really has me motivated right now.
With less industry, with a better judge. I now truly understand the point. Fund management is the key in my opinion. This is what I missing in the past. You do not have to make huge gains in this market to earn a lot.
This is the magic right here. It isn’t a race. You have the power of compounding interest on your side to fight with you! Sure, Iron Man has wicked cool lazers and a flying suit, but I have INTEREST and RATE OF GROWTH!
Yep thats where Im at as well. I have been making steady if unspectacular pretend profits for several months now, never using more than 1% of my demo capital.
I think 1% profit a day is a bit beyond me at the moment, partly due to the hours I can trade with my job. I am targeting 3% a week (actually first target is a profitable week, then month). If I can do that and compound sensibly I will be in a position to give up the day job in three years.
[B]Fx4aliving[/B]… Congrats on a honest account. Of course your doubtless aware your casting pearls before swine! LOL The 15m TF brigade will vilify you for thinking less is more… have given up preaching to the non believers! LOL Welcome to spectators corner!
Quite, I have said a few times on here that just 10% a month is life-changing eventually, but it is often not a popular view. Sure, more than that is perfectly possible, but my point is that many traders overreach trying for the really big monthly returns. Getting to 5-10% a month needs a fair bit of hard work from a standing start. One would hope to improve from there, but even if performance stays at 10% there will still come a time when that gives a very nice income.
I just think that too many traders put too much pressure on themselves too early.
This was a nice surprise. At first when I saw the topic I thought “oh another one who makes it with martingale in no time to 10 millions out of 1 buck on a demo, lol.”
Now, the only thing what I’d throw in is that while mm is indeed very important it can’t substitute for no edge. To be successful you need an edge and proper mm plus risk management. While mm is good for improve profits, risk management is good for “improve” losses.
