this is a therapy session not a trade discussion
been 3 weeks so far without a simple prtsc paste to see if you walk your talk
proof of results over guru blah blah
It’s funny you should say that. Dr Elder compares the process of developing the correct trading psychology with the process followed by Alcoholics Anonymous.
And like alcoholics, most failing traders are very unwilling to admit that they have a problem with their psychology.
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This has been a really useful thread for not-yet-successful traders - they guys who keep on selecting the WRONG strategies because they have incorrect beliefs about what trading is.
Actually I never post details of my P&L either, I rarely mention which trades I’m in or have recently exited. I don’t think its a qualifying factor that is necessary to back up what I’m saying. Over the years I have posted most the strategies I have been using at different times and experienced traders will be able to see in 5 minutes if these strategies are able to make money.
The traders who don’t trade in my style will not make money from these strategies. They’re good, they’re winners for me, but if you’re a day-trader, scalper, range trader or enter on reversals etc. etc. they will be meaningless or probable losers. Further detail on these strategies for those traders would be useless.
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Thanks for sharing. For the matter of fact, I have used Oanda for a while. I felt the terminal lagging a bit and support a big question. I found a new one though, its called OspreyFX. working really good for me.
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It appears you already have a strong understanding of the markets and don’t need to review this fundamental knowledge. Good on you!
This type of thinking was the break through I needed to become consistently profitable and propel me forward in my career.
I believe you are beyond the material I am sharing here though but you are most certainly welcome to hang around.
I and I’m sure other users would love to learn some things from you! 
But for anyone else that is interested it looks like therapy is now in session!!
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That is great! Wish I could have been of more help but it is great to hear you found a broker that is working out better for you!!
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Hi Ele_Wood1,
How long you are trading with this broker (OspreyFX)?
You are helping great with your shares. Dont need to worry about that!
Hi BullsEyes,
I have been trading with them for 5 months now!
Thanks for your reply, Ele_Wood1!
I’m a bit confused with all your messages in this thread.
First you wrote,
“I am looking for some recommendations for a new broker. What would you suggest?”
Then you wrote,
“I am currently trading in the UK and using Coinexx.”
Then you wrote,
“I found a new one though, its called OspreyFX. working really good for me.”
At last you wrote,
“I have been trading with them (OspreyFX) for 5 months now!”
So, you are with OspreyFX for 5 months now and it is working really good for you. Then why you came to this completely irrelevant thread and asking for a recommendation for a broker?
Isn’t it an attempt of spamming on behalf of OspreyFX?
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what is the best way and easiest to work out a risk to reward ratio??
So, if banks (and similar big money institutions) mostly use lines at interesting price points then we can expect a lot of action at those levels. Delving deeper, I assume the support and resistance lines were taken from previous high and lows or resistance turned support type areas. Would they also use Pivot points and Fibonacci for these lines?
The edge point makes sense, I’ve developed a couple of systems that all work well, except when I trade with real money, then my own mind plays tricks, like closing positions early with no real reason except a momentary ‘worry’ that suddenly overcomes me, which if left open turns to a perfect profitable trade. I am at the point now where the strategy doesn’t matter too much but control over my mind and understanding how to tackle the psychology behind the decisions. For a starter I realised my morning trading decisions are bad, also I am removing trading apps from my phone so I have to slow down to make a trade at my PC station or laptop with my trading journal / manual at hand.
However, I really am looking for that psychological edge. I realised this is the missing piece of my puzzle. Please tell me more about how I can change my mindset.
As to the fundamentals, if a retail trader was focused solely on cable, without looking at the fundamentals, such as brexit, would this not leave the trader vulnerable if completely ignored it (fundamentals)? I understand the gambling potential if not guarded against, but brexit has been a big factor in the current down trend, thus quite important. Or are there other fundamentals that could be the diversion, such as PMI’s and the such? I realise that the advice would be to stay away from cable due to volatility, but it is my chosen focus over this year and the next. (I chose this specific instrument as my main focus)
To work on your mind set I will recommend Mark Douglas trading in the zone. It has proven to be one of the best trading psychology book out there
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Thanks, that’s my next book!
Wether Pivot points or Fibonacci are used depends of course on the individual trader but for the most part in my experience they are not used as much as some might think.
You will often times read reports from “experts” be it for stocks or for currencies or whatever market and they will say price bounced from this pivot point or this pyschological level and really they are just retrospectively applying whatever tool that fits. So maybe the RSI was showing overbought and they credit the reversal to the RSI being overbought the next time the RSI isn’t overbought but priced reversed from a pyschological level. The next time RSI was showing overbought for days price blew through a psychological level but price reversed from such and such pivot point. 
I personally do not use them but you don’t need to trade like me though. The key is in finding a tool or some combination of tools that gives you a 50 plus percent win rate and you can you make a heap of money if you manage your risk right. Even a 35-40 percent win rate should be atleast break even if not profitable for you.
And of course buying from a pivot point or Fib retrace will definitely be higher probability if you are trading with the trend.
This is good.
Definitely give trading in the zone a read or listen.
You can do a youtube search for Rande Howell he has some top notch material.
Also you are going to need to truly accept and even embrace the risk of each trade. Trade only an amount you are truly comfortable losing. Don’t even think about how much you can earn. Find the best place to place your stop and then if you are only okay risking $1 only risk $1 and just let the trade play out. It either stops you out or hits TP and you have truly accepted and embraced the risk. Once you build enough confidence losing some money and seeing that you make it back you’ll feel more comfortable risking $2 $5 and so on.
Using real money will definitely be more emotional even for small amounts so start there and build your confidence and increase the amount risked as you do.
I see no reason why a trader would or should focus solely on a single currency pair.
As far as Brexit the down trend caused by it is clearly visible on the price chart and I have favored shorts on the pair simply due to the strong down trend for quite some time profitably.
Brexit is not a fundamental driver of the pound. It is not something that we can look at the history of its reaction over 10 or so years. It is a “short” term impact that will hopefully work itself out.
When I began trading at a bank we learned about the news events that individual currencies reacted to and how strongly they typically reacted. This was sometime ago and of course there was no way to factor in the history of the pound when Brexit news came out. If you understand what I am trying to say.
The gambling aspect applies to those traders that are trying to trade NFP or numbers on a PMI and go long or short in the moments after the release even though they being at home are getting that info later than the “big boy” traders and most end up just getting burned.
General awareness about a political issue like Brexit I hope most would have.
If you want to focus on one currency pair in attempt to “learn” it you may but from my view point it is a waste of time. All markets trend range and consolidate. Looking for high quality signals on the Daily charts that are appropriate for the state of the market (is it trending ranging or consolidating.) On multiple pairs is going to give you much higher probability trading opportunities in the long term than trying to learn the way one market behaves on say the 15 minute chart. The Cable can be trending down now but it will trend up at some point again, it will also become range bound at some point and it will also find itself stuck consolidating and not giving very many good moves to trade.
If you do choose to focus on it though then just make sure to manage your risk and develop your psychology and you can most likely find a way to make it work. I just personally see that as being too complicated.
And believe me I tried focusing solely on the EUR/USD for a time starting out as well as USD/JPY. So I know where you are coming from.
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I use multiple brokers. I left Coinexx. Still on with OspreyFX and Still looking for others.
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@thetradinggod Thanks for taking the time to share some of your knowledge, it is very welcomed.
As a new trader there is so much to learn and to think of. I have been studying for a few months now and I write everything down which seems relevant to me. With those infos I will develop a trading plan and a strategy.
So my question is, is there anything you wish someone had told you sooner and is there anything you wish you hadn’t focused on so much?
Hi thetradinggod
do you think that VSA strategy works in FOREX or not ? what is your opinion ?
Yes, I have noticed the retrospective application of reasoning, especially in assigning price moves to news! The book, Trading in the Zone arrived on Friday and I’m nearly half way through. It is exactly what I needed. I am already at the point that I have identified my mind and thoughts negate my trading signals from my strategy. You are right, one of my problems has been truly accepting the risk, as the book also says. From my perspective, it does not matter if it is £1 or £100 risked on a trade, it is the percent, or in reverse, it is the risk of attaining or not attaining my % goals. I understand the concept of compound interest and what 25% or 50% yearly gain can mean to potential investors and the positive consequences. Part of my fear, I have just realised, is a performance anxiety. I fear losing x% of a trade or account compounded, versus attaining x% compounded with random loses peppered in between. I will be trying to focus on the outcome of the average and not the individual trades and individual loses. And yes, I am using smaller amounts of money.
Yes, again, I have realised that I was trying to learn more about the pair, thinking if I understood more about a currency I would trade it better, whereas the reverse is true. Because I am not truly accepting the risk I am trying to compensate by learning more about the market, without accepting the fact that nothing is certain and that I will never know all the variable there are (thus not accepting the risk)
Yes, I realise that now, and am going back the the main pairs I watched before. I only recently thought it a good idea to focus on a single currency, but before was looking at all the main pairs. After reading the new book I have looked back and realised I have missed quite a few nice and easy trades on the crosses. But it’s a new day, It’s a new dawn, and there are new opportunities around the corner. I also mainly focus on longer time frames, daily and weekly for signals, with 4 hours to see what is happening intraday.
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Your recommended book arrived Friday. Half way through, it is exactly what I needed!
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