Forex a Great Hobby, But Not a Great Job

Yeah, it’s a common misconception that swing trading is only for the higher TF charts. And there is even more of a misconception that you can only scalp low TFs.

I often swing the 5M and scalp the 1-hour. Nothing illegal about it.

Also, I don’t normally do a top-down approach. It’s best for me to concentrate on the chart in front of me.

Yeah, but aside from the psychology, swing trading limits the daytrader’s opportunities. You just have to take what is offered. And sometimes you have to scratch and claw your way back to profit by scalping.

Thanks, but I haven’t given it up completely. It is still my hobby.

Thanks. Glad it’s having an impact.

I was able to build a little buffer, but it needed to be bigger, for sure.

I agree. And I think you’ve laid out a pretty good plan.

Why is that? Wouldn’t it be the same thing as really good golfer deciding not to go on tour due to family commitments?

I don’t believe I’ve come across a hard & fast rule saying that swinging should “only” be done on HTF but that it’s more practical because it requires gauging the overall trend over a few days/week. It avoids a recency bias and forces one to acknowledge the higher probability of price staying true to the HTF over days.

Swinging on the M5 should be doable with a wide enough SL to account for volatility over a few days and that it generally stays in line with the prevailing HTF trend.

First came across the principal in an Alexander Elder book (The New Trading for a Living) where he uses the MACD and EMAs. He does a really good job explaining the function of each of the timeframes. He calls it the triple screen.

And I’ve seen other traders use other indicators/systems on a similar TF analysis, with the same intentions/principles, like this one on the Ichimoku.

Disclaimer: Not preaching or saying anyone should adopt any of this. I don’t have experience or the knowledge base to dictate certainties like that. At the end of the day what matters is what works for each individual.

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Yeah, Elder’s approach is loosely based on the Elliott Wave Theory. And I think he uses stochastic as well.

Thanks for your insight. I’ll check out this vid when I get more time.

That’s awesome. And also makes sense why your post is so organized and with a great thread title!

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patiently track and piece together the ideal system that satisfies your accuracy standards. its been done

i wonder how much weakness plays into failures

they should have a website for aspiring nba stars haha

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Forex a Great Hobby, But Not a Great Job

At the end of the day I believe it boils down to two things…perspective and objective and while I respect your point of view I am certain there are people out here who will say the exact opposite…

Me I dont intend to trade into infinity. I just want to amass enough funds to buy a large amount of a certain stock down here in Jamaica and let my funds do all of the heavy lifting.

I always say that one should never leave a full-time secure means of earning for trading. At least not until you start making consistent profits. I don’t think that our trading style (full-time or part-time) has any bearing on the money we make. Infact I’ve seen many part time traders earning more than full time traders.
Moreover, doing something that you love doing can really alleviate your mood and you can approach trading with a free mind.

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Yes! Exactly!

FOREX is one of many great vehicles toward wealth creation. But just one of many :grinning:

I would like to give my two cents regarding this post if you don’t mind OP.

Many of us aspire to be full-time traders because of the freedom of time and choice that it provides. However, when we reach that stage, we then become slaves to the charts because we do not have anything much going on in life other than trading. Hence why it is highly suggested for all of us to have something else we are passionate about other than trading which we can put our time into. Let it be sports, music, travelling or reading. Set a strict time limit for your trading and stick to it diligently. Fill up your free time with other things you are passionate about.

This is where swing trading helps whereby you only have to make decisions when a HTF candle closes. If you are scalping, then decide which session is the most profitable for you and double down on that session rather than trading all sessions. At the end of the day, we trade for the freedom it provides hence we should not exchange the freedom of time just to trade more times.

On top of that, I think you did not plan your finances well before fully diving into full-time trading. This is what caused the need for you to trade more because you HAD to make money to pay the bills and live your life. If you had 6-12 months of expenses saved up, you would not have the NEED to make money to pay the bills for the current month. Remember, you have to detach yourself from the outcome of your trades and focus on the process instead. You might be focused too much on the money either consciously or subconsciously as you had to pay the bills and this will definitely be detrimental to your trading.

Finally, I agree most prop firms are out there are looking to get the challenge fees. However, there are some that give you the opportunity to trade live funds with low leverage just like an actual prop firm. No challenge fees BS that most online firms do. Look into Lux Trading Firm. They are tied to a wealth management firm which is where the funds are backed up from.

I really hope you find your love and passion for trading back as there is nothing like trading in this world. It is hard and it requires a level of self-consciousness like no other in order to succeed in it. And that’s what makes it so sweet when you make it.

Amen!

Excellent point

Exactly

Problem is, that’s the capital you need to trade! But, you make a valid point. After realizing my capital was dwindling, I tried trading for a prop firm, and that proved equally disastrous.

I’ll have to post about that experience sometime.

Hey, I will. Thanks for the tip.

I think I already have. And when there are other traders like you providing encouragement, it makes it that much easier.

Thanx.

While I see the point you are trying to make sometimes we are not aware of ALL the facts and ought not b quick to judge. What if there was a recent death in the family or some other emergency which ate up most of or all the savings?

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I am glad you are able to grasp my points. I wish you all the best mate!

Also, regarding the savings bit, I believe the savings should be separate from the capital you are going to be trading. This might take a longer time to build but it will definitely give you a better peace of mind when you are having off months.

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Right, I ain’t judging. I just provided my two cents on how you can trade full time without going through what OP went through (based on what was mentioned in the original post).

Plus, I don’t think a funeral will eat up an entire year of savings for your expenses and if it is a medical emergency, insurance plan is suppose to cover them. However, I see where you are coming from but I assume OP did not go through any of what you have mentioned as it is something major and it would have definitely been included in the original post.

Cheers.

Hobby is something that you do in your leisure time and can be done while doing other odd jobs too. Hobbies can be set and forgotten easily.

But trading can’t be regarded as a hobby even if you are not doing it the whole day or regularly. Trading is a job where you need to be serious in order to make profits.

I dont agree with that. Not everyone gambles with winning as their ultimate goal. They do it for the thrill. For some people its the same with trading. Especially those who have a lot of money already.

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You can say it is a great hobby, but that doesn’t mean it is a great job. Forex trading can be a great way to make some money on the side. The only thing you need is some patience and some skill. Forex trading can also be a great way to lose money if you are not careful.

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