1000% Per Year Possible With Position Trading, I Will Outline The Strategy For You

[Master_Tang]

Ah yes! The writing of a sir is his finest quality to distinguish him from the modern day keyboard savage of our post-grammar society.

Uhhhh uh!

U dint just call m3 a savage didju?

[kitnik]

@InfinityComplex

Either you didn’t read carefully or you have problems with reading comprehension. I never said I’ve already held a position for over a year now.

I’m not saying I’m a God of Forex. I’m only saying I have a strategy and that it has the potential to work.

Right now I have very limited Capital. Its easy to find lows after major news…maybe it’s presumptuous to say I’ve found the absolute low for the year. But I did find the absolute low for the past 24 hours and that’s all you need to do to make money.

The strategy of finding lows after news is applicable to multiple currencies and how long you want to hold is up to you.

Let me illustrate with my story. I had similar idea - trying to find the low. Total noob. Lost a lot of money for good. Greed, fear, hope - all the good friends, so well known to the trading lot.

I don’t say - you can’t spot a bottom. But risking 50% and hoping to be able to spot the bottom consistently was exactly what I was doing and I did lose a lot of real $$.

Trading pennies now, trying to find my style, humble and committed.

[daydreamer65]

In this thread:
The person with admittedly limited experience posts a thread telling other beginners about a ‘strategy’ that he/she is apparently clairvoyant about, which people tend to call “the blind leading the blind.” Then, after the efficacy and legitimacy of this strategy are called into question to help spare the other learning members from taking potentially misguided advice, the author just throws out strawman arguments and continues the myopic overconfidence.

Classic I need to keep this.

One of the most elegantly composed besmirchings I have ever come across on the internet.

For that, I award you a cookie

[lancedes]

Suppose a position trader realized that the BOJ policy of aggressive QE which was announced about a year ago when the USD/JPY was valued at 77.00 was going to lead to a massive decline in the value of the Yen. Now suppose he used 50:1 leverage and has $10,000 in his account and therefore was able to take a 500,000 unit or 5 lot position. He later closes the position a year later at 97.00, he would have made a whopping 2000 pips, or $20,000 per lot or a total of $100,000 thereby making 1000% on his principle.

During all this time all he has to do is check the charts periodically and noting that they never drop below his buying price of 77, all he has to do is sit back and wait one year for a 1000% return.

Now your scalper is going to try to kill himself looking for an “edge” and after 20 trades a day is only making a return of 5% a month.

What I don’t understand is why noobs who are new to FOREX who want to risk 50% of their account on one trade so they can profit 50% but who have a 99.9999999999% of losing there account if they chose to trade like this for more than a week, don’t just find a price which they think is the absolute LOW for the year, buy in and hold it for one year with the potential for a 1000% return. The most they can lose is 50% of their account because a Margin closeout is exercised once one’s account loses 50% or more of it’s value.

Yet because of ignorance people prefer taking 50% risks over and over with a 99.99999% of failure rather than taking on a Gamble where they risk 50% of their account and have a 50% chance of making a 1000% return.

The trick to executing this strategy is finding the absolute low for the year and finding the right currency pair. All it takes is timing and patience, nothing fancy.

This is definitely one of my Eureka moments. Realizing that the obvious and easiest path to success is often overlooked. I avow to be a position trader from now on. Killing myself for a measly 5% return a month isn’t worth it when the potential for 1000% return a year is possible.

Hehe, all sounds good in theory mate. Hindsight is a wonderful beast! However, if we’re going for rash gambles like the one you describe on USD/JPY when it was 77, we may as well short the USD against every currency because the US of A is absolutely buggered with this its current monetary and fiscal pollicy. And THAT aint gonna change in a great big hurry.

So mark my words and lets look back here in a year’s time and see what kinda returns coulda been made.

Best o’ luck, peeps.

[abrsive]

This whole idea is wrong in so many ways…

So the strategy, as I understand it, is to pick top and bottoms (i specially like how you used the 1 min TF to get you in :D), sit back, ride the money train for a year, bank the 1000% gains and pat yourself in the back for being so darn smart. Sorry man, but this sounds more like a pipe dream than a strategy. Talk about looking for shortcuts to a get rich quick scheme…
I could of course be wrong, as can happen from time to time.

Since you’ve already picked the UJ bottom and placed your trade, you should let us follow the development of this trade.
A Myfxbook link would be spectacular.
Please, please, please… with sugar on top!!! :51:

[anon88459104]

I know… this is the type of thread where “we have all been” and desperately don’t wan to burst the OP’s bubble of hope and success. With that being said you would have more chance of making money betting against this supposed UJ bottom not holding for the next 12 months. Traders don’t make money in this game by hoping to pick yearly bottoms because it just isn’t possible, the odd’s of failure far outweigh the potential reward of constantly trying to catch a 12 month high/low. One trade per year will pay you off when you do actually catch the bottom…the remaining 364 days will bite you in the arse.

[Catabolist]

@kitnik

Let me illustrate with my story. I had similar idea - trying to find the low. Total noob. Lost a lot of money for good. Greed, fear, hope - all the good friends, so well known to the trading lot.

I don’t say - you can’t spot a bottom. But risking 50% and hoping to be able to spot the bottom consistently was exactly what I was doing and I did lose a lot of real $$.

Trading pennies now, trying to find my style, humble and committed.

This is a beautiful example of the thought process and eventual end result of trying to trade in that manner. Great post.

[thejoery]

Suppose a position trader realized that the BOJ policy of aggressive QE which was announced about a year ago when the USD/JPY was valued at 77.00 was going to lead to a massive decline in the value of the Yen. Now suppose he used 50:1 leverage and has $10,000 in his account and therefore was able to take a 500,000 unit or 5 lot position. He later closes the position a year later at 97.00, he would have made a whopping 2000 pips, or $20,000 per lot or a total of $100,000 thereby making 1000% on his principle.

During all this time all he has to do is check the charts periodically and noting that they never drop below his buying price of 77, all he has to do is sit back and wait one year for a 1000% return.

Now your scalper is going to try to kill himself looking for an “edge” and after 20 trades a day is only making a return of 5% a month.

What I don’t understand is why noobs who are new to FOREX who want to risk 50% of their account on one trade so they can profit 50% but who have a 99.9999999999% of losing there account if they chose to trade like this for more than a week, don’t just find a price which they think is the absolute LOW for the year, buy in and hold it for one year with the potential for a 1000% return. The most they can lose is 50% of their account because a Margin closeout is exercised once one’s account loses 50% or more of it’s value.

Yet because of ignorance people prefer taking 50% risks over and over with a 99.99999% of failure rather than taking on a Gamble where they risk 50% of their account and have a 50% chance of making a 1000% return.

The trick to executing this strategy is finding the absolute low for the year and finding the right currency pair. All it takes is timing and patience, nothing fancy.

This is definitely one of my Eureka moments. Realizing that the obvious and easiest path to success is often overlooked. I avow to be a position trader from now on. Killing myself for a measly 5% return a month isn’t worth it when the potential for 1000% return a year is possible.

This ain’t a strategy, this is just luck and greed.
First off all if you call it a strategy or a method than you need risk management. Using 5 standard lots from a $20,000 account is risky and greedy. I would use 1 standard lot if I had $60,000.
Second off all I would use a stoploss. Using no stoplosses is just suicide. It’s always possible that market doesn’t go the way you want. You just got lucky that’s all.

I’m a long term trader and I use the weekly chart but getting a 1000% return a year is only a dream. Like I’ve said, you can achieve but you risk to much to get there.

Professional traders don’t even get a 100% return a year so that says enough.

Good luck

[sayrix]

The trick to executing this strategy is finding the absolute low for the year and finding the right currency pair. All it takes is timing and patience, nothing fancy.

This is very interesting how you find year’s low. You can find it only on December 31. But… with great but… no one assures that chart will not refresh next year’s low lower than previous year. Coming back to year’s low doesn’t mean that price cant reach new lows. The chance is 50% or less.

[WHIZKID]

Suppose a position trader realized that the BOJ policy of aggressive QE which was announced about a year ago when the USD/JPY was valued at 77.00 was going to lead to a massive decline in the value of the Yen. Now suppose he used 50:1 leverage and has $10,000 in his account and therefore was able to take a 500,000 unit or 5 lot position. He later closes the position a year later at 97.00, he would have made a whopping 2000 pips, or $20,000 per lot or a total of $100,000 thereby making 1000% on his principle.

During all this time all he has to do is check the charts periodically and noting that they never drop below his buying price of 77, all he has to do is sit back and wait one year for a 1000% return.

Now your scalper is going to try to kill himself looking for an “edge” and after 20 trades a day is only making a return of 5% a month.

What I don’t understand is why noobs who are new to FOREX who want to risk 50% of their account on one trade so they can profit 50% but who have a 99.9999999999% of losing there account if they chose to trade like this for more than a week, don’t just find a price which they think is the absolute LOW for the year, buy in and hold it for one year with the potential for a 1000% return. The most they can lose is 50% of their account because a Margin closeout is exercised once one’s account loses 50% or more of it’s value.

Yet because of ignorance people prefer taking 50% risks over and over with a 99.99999% of failure rather than taking on a Gamble where they risk 50% of their account and have a 50% chance of making a 1000% return.

The trick to executing this strategy is finding the absolute low for the year and finding the right currency pair. All it takes is timing and patience, nothing fancy.

This is definitely one of my Eureka moments. Realizing that the obvious and easiest path to success is often overlooked. I avow to be a position trader from now on. Killing myself for a measly 5% return a month isn’t worth it when the potential for 1000% return a year is possible.

Wao! That is a mind-blowing strategy!! Hey guys…If you really want to do this, please take my tip, PLACE YOUR STOPLOSS JUST BELOW YOUR ENTRY POINT, to prevent an unexpected colossal loss! Good luck!

[ZENWEST]

Your idea of making money in Forex is going to miss one important ingredient !! You’re going to miss out on all the challenges and the anticipation of your your trades to be fruitfull. If you’re just going to sit on your $10,000 for one yearlyTrade you might as well put it in a safety deposit or Mutual Funds account. It is the journey of Trading that holds all the promises and goals of the Individual. Can you remember the moments and excitement you felt when your scalping technique turned into a winner ? Forex Trading is not for the money hungry my friend…It’s for the Game of taking in the money and using your skills of winning in a 4 trillion Dollar Market of buyers and sellers wherein you can be either one and not worry about getting killed or eliminated.

[InfinityComplex]

Your idea of making money in Forex is going to miss one important ingredient !! You’re going to miss out on all the challenges and the anticipation of your your trades to be fruitfull. If you’re just going to sit on your $10,000 for one yearlyTrade you might as well put it in a safety deposit or Mutual Funds account. It is the journey of Trading that holds all the promises and goals of the Individual. Can you remember the moments and excitement you felt when your scalping technique turned into a winner ? Forex Trading is not for the money hungry my friend…It’s for the Game of taking in the money and using your skills of winning in a 4 trillion Dollar Market of buyers and sellers wherein you can be either one and not worry about getting killed or eliminated.

I’m open to getting out before a year. It will all depend on how the fundamentals play out. After trying scalping I’m convinced it’s a less efficient way of reaping profits than swing trading daily trends or longer term position trading.

Have you tried both short term and longer term time frames in trading?

[kashix]

I’m open to getting out before a year. It will all depend on how the fundamentals play out. After trying scalping I’m convinced it’s a less efficient way of reaping profits than swing trading daily trends or longer term position trading.

Have you tried both short term and longer term time frames in trading?

You do realize that scalping is just getting out at a short term overbought area and re-entering at a better price right? Since you are confident on the low, then shorter term trading should be more profitable for you unless you don’t wanna click the buttons or you’re afraid of not being able to predict short term highs (For example: getting out and price moving further up).

[InfinityComplex]

You do realize that scalping is just getting out at a short term overbought area and re-entering at a better price right? Since you are confident on the low, then shorter term trading should be more profitable for you unless you don’t wanna click the buttons or you’re afraid of not being able to predict short term highs (For example: getting out and price moving further up).

I don’t know if this has been your experience. But scalping is not efficient because trying to predict a market in the short term is very difficult. It’s easier to ride a long term trend driven by fundamentals than it is trying to scalp using the short time frames.

The problem with scalping is one is tempted to try to predict every price fluctuation and invariably the unpredictability of the market prevails over such a strategy. On short time frames Market price action is actually less predictable than over longer periods because the overall trend will be determined by the fundamentals. Now I’m not saying that with fundamentals you can predict the future years or even months in advance. But by keeping up with fundamentals you will have a compass that will guide you as to the general trend of the market.

Let’s say you make 10, 5 pip scalps with a 1:1 Risk Reward ratio and you manage to gain 20 pips with a 60% win ratio. After 5 days you make 100 pips.

The key to holding longer positions is gauging the Markets bias by having a good understanding of the fundamentals. The USD/JPY often has positive upticks of over 100 pips a day when it’s it has an upward bias.

If you understand the key fundamental driver of the USD/JPY is the carry trade you’ll gain a whole lot more through longer term strategies than through scalping.

I’m not sure what your experiences have been, perhaps you would like to share, but my general impression based on what I’ve heard and from my own experiences is the higher your daily trade frequency the more likely you are to lose.

I’m not saying scalping absolutely doesn’t work. I believe it does if there is a strong trend, but the problem with scalping strong trends happen suddenly and usually don’t last very long, so a successful scalper has to be more patient and disciplined than most traders.

[InfinityComplex]

You do realize that scalping is just getting out at a short term overbought area and re-entering at a better price right? Since you are confident on the low, then shorter term trading should be more profitable for you unless you don’t wanna click the buttons or you’re afraid of not being able to predict short term highs (For example: getting out and price moving further up).

I don’t know if this has been your experience. But scalping is not efficient because trying to predict a market in the short term is very difficult. It’s easier to ride a long term trend driven by fundamentals than it is trying to scalp using the short time frames.

The problem with scalping is one is tempted to try to predict every price fluctuation and invariably the unpredictability of the market prevails over such a strategy. On short time frames Market price action is actually less predictable than over longer periods because the overall trend will be determined by the fundamentals. Now I’m not saying that with fundamentals you can predict the future years or even months in advance. But by keeping up with fundamentals you will have a compass that will guide you as to the general trend of the market.

Let’s say you make 10, 5 pip scalps with a 1:1 Risk Reward ratio and you manage to gain 20 pips with a 60% win ratio. After 5 days you make 100 pips.

The key to holding longer positions is gauging the Markets bias by having a good understanding of the fundamentals. The USD/JPY often has positive upticks of over 100 pips a day when it’s it has an upward bias.

If you understand the key fundamental driver of the USD/JPY is the carry trade you’ll gain a whole lot more through longer term strategies than through scalping.

I’m not sure what your experiences have been, perhaps you would like to share, but my general impression based on what I’ve heard and from my own experiences is the higher your daily trade frequency the more likely you are to lose.

I’m not saying scalping absolutely doesn’t work. I believe it does if there is a strong trend, but the problem with scalping strong trends happen suddenly and usually don’t last very long, so a successful scalper has to be more patient and disciplined than most traders.

[Master_Tang]

The key to holding longer positions is gauging the Markets bias by having a good understanding of the fundamentals. The USD/JPY often has positive upticks of over 100 pips a day when it’s it has an upward bias.

But usually it’s a case of three steps forward, and two back. The same 100 pip range can be traversed both ways several times in a strong up trend.

[anon88459104]

I still don’t know why this thread is still alive, surely the title of the thread says it all!

[ixs]

And an [I]immense[/I] amount of luck!

You’re right in principle, but [i]knowing[i] that you’re at your absolute low for the year is impossible. If I’m wrong, then I’d very much appreciate it if you could let me know when we hit an absolute low that will hold for the next 12 months. On any currency, I’m not fussy.

And I’ll cut you a deal - I’ll give you 75% of the profits if you agree to cover any losses!

i dont dare call myself a trader yet since i havent been at it really for more than a year and i work with very little money on nano and micro accounts, i also focus on one currency pair and one only for the time being because i feel i have to not only get the technicalities but at the same time develop a feel for how it reacts under certain circumstances.
How would you go about predicting the yearly low ? its probably safer to wait for a huge spike up or down after a news event and then scalp what it retraces when the storm ends but even there you have no certainty it wont just have been the proverbial eye of the storm. The usd/jpy had its yearly low at somewhat under 75 and is up ‘only’ 2500 points by now.
consider the situation here : crisis is far from over uncertainty has taken hold of about everything. The americans are actually talking about the possibility of a government shutdown ?
When that happened i tried checking last time was in 1995/96, thats something my metatrader doesnt even show, the pair dropped over 2000 points then (not in a day ofcourse) so here it might or might not do the same or worse IF everything reacts the same.
I hope you make your 1000% and if you do dont forget to buy the house of pips here a round of free beers please personally i only work with what few hundred dollars or so i have succeeded in getting as much as 35% or 12% sometimes in a month, i once dipped the whole account to zero because i was overconfident it would go up and doubled my lots every so many pips it went down (that way you can get positive without it going back up all the way)
wrong…lesson well learned and im back in the plus now but i burned out then
a 1000% that would require luck just as much as skill i fear. Dont let greed blind you. Quick money schemes hardly ever work, as do rigid technical strategies (as far as i have learned so far). Adaptability and staying informed, keeping safe and sometimes refraining from trading at moments when you could actually make the most because of potential volatility on news is something i try to stick to by now

[InfinityComplex]

i dont dare call myself a trader yet since i havent been at it really for more than a year and i work with very little money on nano and micro accounts, i also focus on one currency pair and one only for the time being because i feel i have to not only get the technicalities but at the same time develop a feel for how it reacts under certain circumstances.
How would you go about predicting the yearly low ? its probably safer to wait for a huge spike up or down after a news event and then scalp what it retraces when the storm ends but even there you have no certainty it wont just have been the proverbial eye of the storm. The usd/jpy had its yearly low at somewhat under 75 and is up ‘only’ 2500 points by now.
consider the situation here : crisis is far from over uncertainty has taken hold of about everything. The americans are actually talking about the possibility of a government shutdown ?
When that happened i tried checking last time was in 1995/96, thats something my metatrader doesnt even show, the pair dropped over 2000 points then (not in a day ofcourse) so here it might or might not do the same or worse IF everything reacts the same.
I hope you make your 1000% and if you do dont forget to buy the house of pips here a round of free beers please personally i only work with what few hundred dollars or so i have succeeded in getting as much as 35% or 12% sometimes in a month, i once dipped the whole account to zero because i was overconfident it would go up and doubled my lots every so many pips it went down (that way you can get positive without it going back up all the way)
wrong…lesson well learned and im back in the plus now but i burned out then
a 1000% that would require luck just as much as skill i fear. Dont let greed blind you. Quick money schemes hardly ever work, as do rigid technical strategies (as far as i have learned so far). Adaptability and staying informed, keeping safe and sometimes refraining from trading at moments when you could actually make the most because of potential volatility on news is something i try to stick to by now

The key to successful trading is accepting that cyclical change is a Universal constant and that the human intellect is endowed with the power to anticipate these changes. Change is constant but it can be foreseen and anticipated because of its incremental nature. A good trader therefore must be as well informed as possible. Only with enough knowledge is an accurate prediction possible. Making a successful trade is like predicting the weather, the more inputs a computer simulation has the more accurate it will be.

With so many man variables out there, how can one make sense of it all? The key is to identify the most important Fundamental drivers and look for confirmation through Technical Chart Analysis. Now the key driver of the USD/JPY has been the carry trade, a mechanism which the Yen is sold and the USD is bought to invest in USD valued Stocks and Commodities. A meticulous look at the chart confirms this, on May 23 when the Fed released it’s minutes that signaled a serious consideration of tapering QE should economic indicators point to a strong recovery, both the Stock Market took a nose dive, dragging the USD/JPY with it.

The other fundamental driver behind the USD/JPY price action is the aggressive QE policies being employed by the BOJ.

Once one can see the forest through the trees. One isn’t worried about trifles.

Knowledge is Power. With Perfect knowledge comes absolute power. While perfect knowledge isn’t humanely possible, we must stay as informed as humanely possible. All wealth disparities are caused by differentials in knowledge. That’s why Institutional traders have such an edge over the rest of us.

[Master_Tang]

The other fundamental driver behind the USD/JPY price action is the aggressive QE policies being employed by the BOJ.

What is the USD/JPY exactly?

If knowledge is power, you’re missing a few chapters in your assessment here.