Following the market trend is not a problem if you can identify the trend correctly.
So if the market only trends 20% of the time and we guess the trend correctly 50% of the time does that mean weāll only ever be right 10% of the time. Thatās got knobs on it.
So how do you identify the trend. Please help.
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Apparently I have been unflaged and can reply to this now so I assume it is ok.
To answer your question there are two sides to the fund. 1 is trading and 2 is educational and I suppose you should include a 3. support of a worldwide network of traders both learning and funded.
Having been a teacher/instructor in another life at the community college level and then in a trade school I was alarmed at the way a large portion of the student population that had no no skin in the game and just should not have been there in the first place. Even after teaching the lessons, then resorting to reviewing the test questions and answers in advance and then passing out the test in advance allowing open book usage etc. I gave up and quit.
Having said that and been around the block a few time in business if the student like an employee has no skin in the game the performance is lack lust at best.
As time goes on I will endeavour to dispel any negative feelings of this āis this to good to be trueā attitude.
Thanks for having BP itās a great place to learn and gain valuable insight.
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Negative feelings come when one not picks earning as he thinks and plans for it.He should go for more practice , not be feared always these feelings and emotions also effect on your trading psychology. Forex is some how difficult to trade live , it is possible for just practice.
Hi Bob, for me thatās the easy part. First on the weekend I do a weekly strength and analysis worksheet AKA S&W worksheet. When the trading time comes I have already selected pairs in a bull or bear trend and those in consolidation zones getting ready for a breakout.
Then I start at one or two higher time frame than I am usually planning my trade from. For example I usually trade off H1 for day trading so Iāll look to D7 and lower to make sure all is in alignment/agreement, if not I move on.
If good I drop down to the 5M for an entry. I always enter on a like cadle close, I. E. if it bullish then I want an bullish candle and vica versa.
I donāt use the M1 because of the noise but I want a corresponding set of like candles so I use the 5M.
I feel that and I have check it several times that if a trader enters on the matching entry candle there is a much greater possibility of a winning trade.
Oddly my win-loss ratio almost 100% matches my matching cangle ratio! go figure.
Make sense?
Yes avoid too much pairs seeing at a time for trading just focus on 2 to 3 pairs see their movement then decide about trading. When one is loosing continuously it shows his weakness in trading he needs more practice to know about market then he will be able to open position at right side that will not go always to loss.
Definitefely experience will giving some trader valuable lesson on their life, facing with many times loss or margin call account, will become valuable lesson if in fact not easy to making profit on trading, and then we can make new rules how to safe trading low risk, and built up good mindset if actually forex is not easy way to get rich at short time
Well, I draw the support/resistant levels on the daily chart; then I read the market context; when I get enough imbalances between the buyers & sell side; then I go for my new trade otherwise not!
How do you tell the difference between buyers n sellers bro
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very good pointā¦
There is nobody who can predict the real faction of this market with certainly , thatās why we have to depend on robot for making profit . but sorry to say , most of the paid system or robot are found to be scams.
how does that make any sense ?
Firstly , the Robots are not Robots to begin with
Secondly i can predict the market with a degree of certainty and i donāt use Automated software to do itā¦ SO EXPLAIN WHAT IāM DOING if we MUST DEPEND ON ROBOTS , as you said
this is not a true statement .
it is true that we canāt predict it with 100% Certainty
but to say THATSā WHY WE HAVE TO DEPEND ON BOTS is ridiculous
at the end of the day, programs are programmed by humans
without us they are stupid
From my readings and learnings and experience of just under 5,000 rookie trades.
The goal is to be consistently profitable day in and day out. If you have a bad day or a bad trade just shake it off and move on to next. Learn for your errors. If you followed your rules you made a good trade no matter the outcome.
There are two main reasons why traders lose money.
- is chasing bad trades, put another way traders donāt close out losers soon enough, there are a few reasons for this but maily pride and greed. you might read up on Mark Douglas Trading in the Zone.
- Bad money management.
Learn to calculate your risk in a trade or use a percent risk tool.
Learn the principles of Ben Franklinās rule.
Risk Management is key to long term consistently profitable trading.
each of the following is in any given trading day
a. donāt risk more than 5% of your account total on all your trades.
b. donāt risk more than 2% of the account total on any one trade.
c. For each 10K of the account size have a limit of no more than 50 open positions or .5% of any account total. You may blow it all in a day but you will be able to recover.
Another facet is maintain and know your risk to reward ratio, keep a log.
know your win-loss ratio and where you need to be at;
rate calculations:
1:1 reward:risk: 1x = (1 - x) --> 2x = 1 --> x = 1/2 (break-even), so therefore a win-rate ā„ 51% would be profitable
2:1 reward:risk: 2x = (1 - x) --> 3x = 1 --> x = 1/3 (break-even), so therefore a win-rate ā„ 34% would be profitable
3:1 reward:risk: 3x = (1 - x) --> 4x = 1 --> x = 1/4 (break-even), so therefore a win-rate ā„ 26% would be profitable
and so forth . . .
Another item to know and track is your edge or expectancy. How much can you expect to make per trade is the total winners less the total losers divided into the amount made for thoses total trades.
Mine is very small I have only be trading for a year and took of 5 months of that on a sabbatical but my edge gets better weekly as I get better: following the above rules and my disciplined trading strategy. Check out a book called the DIsciplined Trader.
As a new trader you may find it almost impossible to have a positive edge. I can tell you for a fact I know many traders with edges over $20, $30 even $40 and more per trade. It took them many years to accomplish this but it is possible.
I hope that isnāt to much to digest all at once. Take it piece by piece like a pie on PI day! and digest it.
Thanks for the opportunity to reply to this seemingly never ending question.
Based on the whole candle structure of my trading chart!
Oh my. lol.
Care to explain how you tell if buyers are leaving the market or sellers are entering. Both have the same effect on price action.
So Julian Martin K here mate
itās been like a week, Howās Trading going, how do you feel , how are you overall emotions, how is the strategy going. are you doing wellā¦ LET ME KNOW OKā¦
be cool
Whoa you have to calm down and analyze your strategyā¦record your trades, identify what you are doing right and what you are doing wrong. Do more of the right stuff. Create a plan and write it out be thorough!! Keep a journal! Practice and stay diligent!!!
I donāt think, robot is a good option! Manual process is much better than any automatic trading system.
Bob; I am not trading with 100% accuracy but I am happy with my PA trading skill. Yes, PA is my major, it helps me to identify the dominant side of the current market!
First create demo trading account with the most reliable traders, then discuss your strategy with the mentor of Babypips and practice your strategy with demos. By this process you will be able to identify the bottle necks of your trading styles and strategies and also the effectiveness of your trading facilities that will be provided by your broker. Once you will get the confidence that your strategy is going well then start with mini accounts.