I hate being a newbie

The Lobby
23

Hi Ethan,

It appears to me that you are feeling frustrated and overwhelmed. Would you like to share what you are feeling frustrated and overwhelmed about?

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24

in trading, there is only one thing to be frustrated about.

answer: losing.

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25

Forex trading is an endeavor that involves losses as well as gains. It is natural to feel DISAPPOINTED when a trade ends in a LOSS, but it is important to understand that losses are an inevitable part of the game. Often, the sadness that comes with losing a trade can be attributed to unrealistic expectations, whether they are conscious or subconscious. To manage this, traders can use the formula of expectation= win rate ($win amount) - win rate ($loss amount) to gain perspective.

For example, if a trader has a win rate of 65% with a profit of $500 per win and a loss rate of 35% with a loss of $500 per loss, the trader’s EXPECTATION would be:

Expectation = win rate (+$amt) - win rate (-$amt)
Expectation = 0.65 ($500) - 0.35 ($500)
Expectation = $325 - $175
Expectation = $150

This means that, over the long term, the trader should make an average profit of $1500 after 10 trades, despite the INEVITABLE losses that will occur. By keeping this expectation in mind, traders can focus on their overall profitability and not be DISHEARTENED by any individual losses they may experience.

26

i was referring to “overall” losses. yes, there will be some trades that produce positive profit and others that make negative profit, but… when i say that losing is the only problem in trading or gambling, i am suggesting that your equity goes down over time instead of increasing.

Following are the exact and only steps that may be followed to create a complete trading system:

(a)
by looking at our charts, we all know the current price(CURPRICE)…

(b)
by developing some kind of trading method or system, we attempt to figure out what is the correct target price(TARGPRICE).

(c)

//pseudo code

if(CURPRICE<TARGPRICE)
{
buy();
}
else
{
sell();
}

27

If equity goes down over time,
it’s important for traders to assess

  1. methodology
  2. risk management
    so as to determine the cause of their losses.

Negative Expectation only means

  • erroneus methodology / risk management
  • poor execution due to lack of discipline
28

Well, I think you gave him a great lesson on why he should not give up.

1 Like
29

Hmm, maybe you’re right.

30

I guess everyone who’s new to this when get exposed to all of these resources and information feel frustrated. It not just me. but so many people give up.

31

Thanks mate. I’ll keep it in mind. It’s great to get all of these advices!

32

Wow man! that hit hard. Thank you! :fire:

33

Interesting. What is the best mindset for a trader?

34

Exactly.

In US, it take 4 years of college, 4 years of medical school and 4 years of residency. Even after all that, some are QUACKS. :man_facepalming:

2 Likes
35

Stick to the plan

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36

Wow, Golden peace of advice mate. Thank you. It can be a nice book!

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37

Well, first of all, how should I know when I’ve learned enough? There’s a sense of fear that tells me I don’t know enough and that I should keep learning. And when I try to do so, I am faced with so much information and complexity, which is what makes me frustrated. As for joy, honestly, I have to admit that it is enjoyable, but I can’t deny that sometimes it can be truly frustrating. I’m sure you have experienced what I’m saying. There are moments when, despite enjoying something, it also frustrates you.

38

Sir, yes, sir. :grinning:
I guess it’s time to man it up.

39

Hey!
Well, yeah, I feel overwhelmed from time to time. The reason is that I find the whole trading thing kind of complicated. I know I should study and practice, and this process takes time, but there are so many things out there, and I’m afraid I won’t be able to handle it.

40

There’s something else too:
Answer: Never start because you’re afraid you will lose.

41

Hmm, actually you inspired me to create a topic about this. I’m curious what others think.

42

One good strategy that incorporate

  1. Method to determine Trend directional bias
  2. Reasonable risk : reward ratio with respect to winrate
  3. Bankroll management framework
  4. Use a simple technical analysis criteria for entering a trade.
  5. Keep a trade journal, review and reflect
2 Likes