Do you have an edge?
Page 1 of 4 1 2 3 ... LastLast
Results 1 to 10 of 37
Like Tree10Likes

Thread: Do you have an edge?

  1. #1
    BruceBanner's Avatar
    BruceBanner is offline Newbie
    Join Date
    Sep 2011
    Location
    Germany
    Posts
    16

    Default Do you have an edge?

    Hey!

    I was wondering how to make money in forex. Is it realistic to actually win? I am not talking about billions and gazillions I am rather talking about making a reasonable amount of money.

    I mean it is a lot of fun seeing those candles flipping around. That is why I am fooling around with a demo account. But I am not quite sure if it is worth spending that much time into learning all the stuff about forex.

    Well, the problem which bothers me is that I don't think that it is possible winning at least for 90% of the people. Why? Let's say I have learned all the stuff I had to, I know all the basics, I am good in fundamental / sentimental / technical analysis and of course am willing to learn new things and I am diciplined enough to "play the game" the one thing I will never learn is how to rule the market. The market has its own rules and I will never be able to look into the future to see what will happen next. So why learning when in the end you will lose the one way or the other?

  2. #2
    jingoy is offline Master Contributor and Member
    Join Date
    Oct 2011
    Posts
    520
    I may not have all the answers, but by what you just said you are already one step ahead of most traders, its not about ruling the market, lets say its more on lowering the chances of loosing in a trade, the low losses means bigger wins and with enough given time, watching them candle sticks will be fun one way or another >

  3. #3
    bobmaninc is offline FX-Men Honorary Member
    Join Date
    Oct 2010
    Location
    Jacksonville, FL USA
    Posts
    2,997
    You make money one of two ways in forex. First is to understand you can not make the market do what you want it to and from there you must figure out what the highest probability for you to make money.

    Or the second and become a member of the FXMEN and I hear you get a cool decoder ring that will tell you what the market will do.
    digitalgypsy likes this.
    If you do not help us noobs we will grow.

  4. #4
    akeakamai is offline Banned FX-Men Honorary Member
    Join Date
    Feb 2007
    Location
    PAPER ST
    Posts
    1,679
    You have total control over your risk. Focus on containing your risk and let the profit be a byproduct of your commitment to risk management.

  5. #5
    bobmaninc is offline FX-Men Honorary Member
    Join Date
    Oct 2010
    Location
    Jacksonville, FL USA
    Posts
    2,997
    AK is just saying that because he has one of those cool decoder rings
    Cholia likes this.
    If you do not help us noobs we will grow.

  6. #6
    MeiHua's Avatar
    MeiHua is offline FX-Men Honorary Member
    Join Date
    Jul 2011
    Location
    In the Market
    Posts
    1,345
    90% of people lose, actually i had 2nd hand info that a study conducted by bear stearns says only 7% are profitable. I got that number last week so it should be fairly up to date but then again its just rumor i have not seen the study myself. 10% is the general number for all types of traders.

    I think the question that comes off every newbies mind is Why such a small fraction? Its not just risk, its not just process, its not just psychology. Really people harp on the same stuff over and over again. The reason why most people fail is because a million things can derail you. Really its about consistency and alignment. You must have a profitable system that provides an edge over the markets, be in a good psychological state, have a reasonable money management strategy, and be able to repeatedly execute trades while all of these factors are in alignment no matter what. If any factor is off, it will be detrimental to your financial health.

    Most people think that having a system that provides an edge over the market is having an edge. Which is definitely part of it but there exists something called the "profit gap". This gap is caused only by the trader. The potential of the system vs the results of the trader. The best example of forward testing of this that most people experience is the difference between live accounts and demo. But here is a more concrete example, imagine you have a completely mechanical system that provides an edge over the market and have a computer trade for 1 year. Now you have a trader who trades the exact same system by hand, for the same year on the same instrument. The closer the trader's result to the computer's result the smaller his 'profit gap' is or rather the smaller negative affect his other elements detract from the system. sure this could go into EAs and bots etc to remove that and that is what some people do. But I think that the clearest example.

    Basically bottom line, you could give a completely profitable system to a trader and his profit gap could be so large it actually returns him negative results. Completely independent of the system itself, purely because his own performance is not adequate enough to profit from the system.
    dpaterso likes this.

  7. #7
    Edward74 is offline Newbie
    Join Date
    Mar 2012
    Posts
    12
    I hear you get a cool decoder ring that will tell you what the market will do.

  8. #8
    BruceBanner's Avatar
    BruceBanner is offline Newbie
    Join Date
    Sep 2011
    Location
    Germany
    Posts
    16
    MeiHua, so how do I know that I am the right kind of person?
    Last edited by BruceBanner; 03-19-2012 at 09:48 PM.

  9. #9
    DanielFxTradingCircle's Avatar
    DanielFxTradingCircle is offline Junior Member
    Join Date
    Mar 2012
    Posts
    126
    This is going to sound counter intuitive but has worked for me since i began trading profitably.

    You said : Let's say I have learned all the stuff I had to, I know all the basics, I am good in fundamental / sentimental / technical analysis

    This isn't everything. You need that but you forgot the most important thing. And thats having the discipline, patience, and emotional control to be able to apply everything that you know. That is more important than fundamental and technical analysis.

    I have an edge in the market and i repeat the process every day. I wake up at the same time, eat at the same time, go to the gym at the same time, and trade at the same time. Even my sleep, my diet, my workout training, is all part of my trading method. Even my free time during the day and weekend so i can have balanced life, is all part of my method. When i leave to go to the beach or the country side on the weekend, is all part of my trading method.

    When you get to that level, you become profitable in a mega way. Trading to become mega pro isn't a job, its a lifestyle choice.

    If all i had is my method, and technical and fundamental skills, without the rest. I would lose my accounts.

    The reason i say all this is because i know it may seem like some god like thing to become successful in this industry, but it can be done, once you do the yards.

    I always use the analogy of a pro Olympic runner. To become a pro olyimpic runner might seem like a god like thing, but there are people who do it. You need to be so serious about becoming a pro trader, that it's the equivalent to becoming a pro Olympic runner. Then you will make it.

    You said it yourself, "the market has it's own rules". All you need to do is find a way to exploit those rules.

    If anyone reading this thinks you can't make money. You won't. Knowing that you will do what ever it takes to learn how to make money in this industry is almost half the battle.

    Yoda (star wars) says: You must unlearn what you have learned. A normal 9-5 job mentality and thinking like the 90% who lose is going to be the surest pathway to losing. You must unlearn what you have learned. Trading is almost complete and utter boredom. The doing is in the not doing. It's in the thinking. When you become pro you stop over analysing and all you do is sit there, and wait, and wait, and wait some more until you find the perfect trade.

  10. #10
    mrmoleman's Avatar
    mrmoleman is offline Junior Member
    Join Date
    Jun 2011
    Location
    Johannesburg, South Africa
    Posts
    109
    Well said Daniel!

    May I ask this question:

    How may of you that lounge around here by Babypips are successful traders? And when I mention successful I mean you make a comfortable living off just trading FOREX.

Forum Sponsors
Page 1 of 4 1 2 3 ... LastLast

Similar Threads

  1. Do any of you have a forex blog?
    By coastalfx in forum Forextown
    Replies: 448
    Last Post: 10-24-2014, 06:09 PM
  2. Replies: 112
    Last Post: 07-29-2014, 07:46 AM
  3. What good is there with stochastics when you have RSI?
    By Caesar95 in forum Newbie Island
    Replies: 5
    Last Post: 11-04-2008, 02:54 AM
  4. Replies: 0
    Last Post: 08-08-2008, 06:40 PM
  5. Replies: 0
    Last Post: 08-08-2008, 05:10 PM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
"Minds are like parachutes, they only function when they are open."
Thomas Dewar