Everone talks like they experienced the bussiness… Fx and markets were not make for everybody… I love it a spend 4 - 6 hours. A day a live my life, when i enter in the markets i buy TIME for me and my family… Be disciplined thats it
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I would disagree here, but I am very passionate about trading. How many billions are spent every year on online games? Sure, they’re free to play, but to make any progress you need to break out the credit card. And people do, because it’s fun and it’s challenging.
Now if you’re blowing accounts regularly then that’s no fun, but if you’re managing you money properly you can trade any size account for as long as you want to.
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that’s fine I guess, but based on the replies here, I’m now viewing Forex as just like an online Las Vegas Casino, where there’s a slim chance you might make a few dollars, but more than likely you won’t, so only trade forex if you realize that there’s a 99% chance that you will lose whatever money you trade…But just like playing the slot machines, I guess some people still like to do it… I think I’d just rather go to Vegas since the odds of winning any money are about the same(or perhaps a little better in Vegas), plus you can get away from your computer while you re gambling there…
The reason so many beginners lose money is because they treat it like a casino. The big difference is a consistently profitable trader develops a strategy over a period of many months, even years and sticks to it. I don’t think there are many strategies related to slot machines.
But I don’t want to get into trading vs gambling, there are already enough threads on that.
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Hey Steve,
While reading this I wondered if you ever considered ditching scalping altogether and focusing on swing/position trading? You’ve recognised the damaging nature of your current approach and have laid it out really well but what did you do to explore other means, if any, of achieving the same trading goals?
Reason I’m asking this because I’m working on my own “fire and forget” approach and I was able to find atleast one other member on BP who was successful in achieving this approach. Here’s an interview that was done with him for context.
Yeah, I was waiting for that reaction. But what do you think is the number one reason why people gravitate to forex trading in the first place?
I think you and I both know it’s a lack of liquidity.
And in my defense, after pulling out, I did try to make a go of it with a prop firm. But I’m here to tell you that it’s mostly a scam. After all, as a business person, why would I want to fund some else’s account at 100K, when I can collect $200 a month from thousands of people by stringing them along?
Hey, Tommor, I remember you. How you been? It’s been a long time since I gravitated to this site. You’ve always been so nice to me, thanks.
Yeah, I agree with you. I had a pro trader buddy of mine who was a wiz at Elliot Wave theory. But equally impressive was his artistic ability. If I remember right, I think he made about 25% from art and the rest from trading.
I think it probably helped that his wife had a steady job, too.
I agree. And my post was not to dissuade you in any way, I say, go for it!
Great advice. I have had another business that was my sole income. But trading is much different.
Definitely. I took bowling lessons years ago from a guy who consistently had above 240 average. I asked him why he wasn’t on the tour. And he said that he made more money giving lessons and working in the pro shop at the bowling alley. And there wasn’t the stress that you have to face as a pro.
Sometimes I think that being a full-time trader is more about prestige than about making a living. And unless you’re Warren Buffet, there’s not a heckava lot of prestige to go around.
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I think you nailed it here. Thanks for your input.
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Oh, to be young again. I’m lucky if I make it outa bed by nine.
But if you have the energy, go for the multiple streams thing. Just be careful not to burn out like I did. Passive income is the best.
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Oh, but it is fun. I don’t trade with a lot of money. And I win once in a while.
It’s kinda like the old guys down at the casino blowing the weekly allowance they get from their wives. It’s really about the camaraderie and having fun.
Well, besides begging for cash on the streets…just kidding.
I’m a freelance copywriter. That’s just a fancy way of saying I write for the internet.
In my defense, I started out having a schedule. But as things finally spiraled outa control, it became a war of desperation.
Hey, that’s exactly what I told someone else just now. I think you and I have a clairvoyant link or something.
Great advice. I wish i could say that I will follow it next time but I don’t think there will be a next time for me.
And as you pursue your trading career, I hope you gain a little something from my experience.
Yikes. This was another downside to my post. My aim was not to discourage anyone here. My advice is, if you know you’re good enough, don’t let anyone stop you, including me. Like Nike says, “Just do it.”
There are a lot of better traders than me out there, and I’m guessing you’re one of them. But instead of trading only one instrument, the most successful traders trade stocks, indexes, Forex, and commodities.
That way, they can diversify and limit their losses. Also, it’s a must to learn how to scale in.
Food for thought.
Yeah, and even the pros can lose their minds and just start pulling the lever. That’s kinda what happened to me. But thankfully, I got out before I lost everything (which wasn’t a lot to start with).
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You’re absolutely right. Swing trading is much less stressful. However, it’s not quite that simple when you’re depending on making money every day on the charts. So, let me try and explain.
The basic definition of a swing trade is a 1:2 R/R. In other words, your reward should be at least two times your risk. And it is a scientific fact that it is about a 40% probability trade. However, you still come out ahead if you just set and forget your trades.
The problem is the availability of swing trades to the full-time Forex trader. On any given week, there are only two to three swings per session per week on the 5-minute chart. And to my credit, I happened to hit a few nice ones while licking my wounds from previous losses.
Now, forget there being major swings throughout the week on anything larger than a 15-minute chart. They just aren’t there. That’s because most currency pairs are range-bound. And even if they are trending, they’re usually in a very broad channel.
That doesn’t mean that a tasty 1:5 R/R on the U/cad doesn’t exist. It’s just that I don’t want to wait three days for it to happen.
Also, due to correlation, I only trade one pair at a time. I know, if only I were smart, I could figure it out, but I’m not.
So, if I’m trading one chart and see a set-up for a swing on another, too bad.
Also, there’s the psychology of swing trading. I just can’t handle the constant losses, to be honest. And since scalping is high probability (60% or more), I have a better time with it. And there are more trades to be had.
One final thought. The definition of a scalp is anything 1:1 R/R or less. So if my stop loss is $100, then I make $100 on each win. So, I could argue that I’m not really a true scalper since my absolute minimum is 1:1 R/R.
Whew! Any questions? 