Maybe it’s easy to realize what the unprofitable traders (including me, trying to change that) do because there are lots of them doing things that doesn’t work over and over, apart from the courses business launched by failed “traders” teaching things that simply doesn’t work just to have it as a source of income. Only a small portion of the ones that enter the trading markets will eventually succeed after the hard and long work, and that’s a fact set in cold stone.
So I’ll ask, what is the difference that made you a profitable trader, and why almost everyone else won’t ever get to that level?
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I use a strategy that does not depend on luck, and I follow its rules.
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I tested my strategy for over two years until I felt confident and comfortable enough to follow a set process, day in and day out. I keep a very strict risk and money management, and I aim to always seek trades that offer a good probability of being on the right side. This is key.
As my emotional management is not subject to being cool, calm, and collected all the time, I place a S/L and T/P where I consider it to be at a suitable place, usually just outside a S&R zone. Then close down for the day, while letting the trade run overnight if necessary. I check it out first thing next day.
I consider myself as being breakeven profitable at worst, as I still need to overcome FOMO on winning trades. IMO, the larger the account size, the easier it is to let winning trades run.
Patience and discipline, as Rome wasn’t built in a day…
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I would say persistence and not giving up. I consistently checked forums, learned everyday, and kept pushing.
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Patience. Like Steve mentioned, you have to learn to walk away. The way I’ve found profitability is by looking at the bigger picture, like weekly charts.
Find the trend then look for a place to get in. There are 2 ways: on a pullback, or when price breaks a recent H/L: I took this trade when price broke the recent L on the weekly chart:
If you go in on a pullback then put your SL just above or below the recent swing H or L. You can find these areas easily by switching to a line chart:
If you go in when price breaks the recent L, like I did, then place your SL above the recent H.
It is slow and boring, but you will make money consistently and build your account slowly, over time.
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Bingo, Real winner use High date frame chart to trade.
If you use Week chart, with wait for pull back to trade, so this is big win.
but if you use 1min chart to trade, sure you lose especially on spread.
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Interesting question.
I’d say my one redeeming trading skill is my ability to have no idea what is going to happen next (yes you read that correctly). I have truly accepted the random nature of markets - first brought to light with the book Trading in the Zone , but took me a lot longer to actually do it.
I am able to separate my opinion from the facts - the facts being price and price only.
I have learned not to find articles or stories online that confirm my trading position - in fact, I am actively going looking for analysis on how I can be wrong.
Again this type of thinking is alien to most, who are too ego invested in their opinions.
Finally, my trading strategies I could literally teach to a seven-year-old. There is no discretion, no summing up the weight of the evidence or taking into account silly divergences or indicators.
My trading signals are binary - is there or isn’t there. That’s it.
Finally, I have (only quite recently) stopped caring about my trading performance and P&L whatsoever.
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Yes interesting question ,are certain people no matter how many hours of learning they do,are doomed to fail.?Or can anyone become highly profitable with lots of effort , knowledge and experience.
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Hi @fzz123 ,
I agree with alot of what @Johnscott31 said.
There are those professional traders who have PhD’s in mathematics and work for GoldmanSachs et al who are way brighter than me and know more about trading than I could ever learn in a lifetime.
However, the individual retail trader can develope their own edge and be profitable simply cos there are so many different ways to trade and interpret the markets.
I only became profitable when I accepted that I was lousy when it came to predicting the markets. If I trade in the traditional style i.e profit/loss ratio 1/1.5, diligently setting stops etc I lose money. Guaranteed.
So I only think about how much I could lose and how not to blow my account and then, if I can stay in the trade long enough, the money starts making itself.
I was and still am surprised that I am profitable where 95ish % traders are not. I’m not very good at maths and generally would describe myself as impatient.
You have to find your own edge and think differently cos u are unique and your plan has to be built around your own psychological make-up. I think you also need to be obsessed with trading - it’s a lifestyle and way more than a hobby. Hope that makes sense.
The very fact that u ask this question means you are asking the right things and thinking along the right lines, so I suspect in time and a bit of luck (we all need that) you will find the right path into that elusive 5% club. Don’t be discouraged- although I eventually recouped my losses I made every dumb mistake in the book when I started and once lost £6.5K in a single day.
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That sounds a lot, and is. But it’s nothing compared to what others have done.
I saw a video the other day of a guy that made 40k into 250k in 6 months, then lost it all in a week
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i don’t stoploss,and i won’t blow ac
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Great illustratiion of how trading to win too ambitiously will usually result in blown accounts/broken hearts!
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For all the newbies trying to make it profitable - trading is very simple - you are most likely overcomplicating it.
One of the biggest trading skills is being able to learn from someone else’s mistakes - saves you a ton of heartache - but are you actually clever enough to do that? Or must you learn through the school of hard knocks?
The chances are one day you will find yourself with a busted-out trading account - and only at that point will it get into your skull all those trading cliches you were taught but never listened to.
Expect that day - and have some funds put aside to start trading fresh from that day on.
To quote Jesse Livermore (which I often do)
“It is literally true that millions come easier to a trader after he knows how to trade than hundreds did in the days of his ignorance.”
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You showed some transparency in your post and some good points, I particularly agree with the point regarding having a rigid procedure.I honesty think this is one of the pitfalls for newbies .
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This is classic.
Set-up is the key, not entry patterns / signals.
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There are many factors that differentiate a profitable trader from an unprofitable one. The most important factor is probably risk management. A profitable trader is able to control their risk, while an unprofitable trader often takes too much risk and ends up losing money.
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- Higher timeframe decides what happens on the lower timeframe.
- Money management.
- Rule and execution based plan.
- Experience.
- FiItering incorrect information found on forums ( yes also on Babypips ), Youtube, etc.
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Just a quick question. Does this binary only apply to your entries or are your exits also as mechanical? e.g. fixed pips or trailing stop, etc. Or is your exit discretionary?
Just interested 
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The first thing you have to accept is that losses are totally normal, acceptable, and an integral part of trading. You cannot trade without both gains and losses.
So the answer really is simple: The profitable trader ensures that the losses are less than the gains.
How does one do this? Well, I think most of the answers have already been mentioned:
- Use a clear and explicit trading strategy.
- Stick to the rules
- Apply a strict and sensible risk exposure policy relative to your equity size
- Apply strict and modest money management controls, parameters, and targets
- Do your homework concerning factors affecting your market. (I don’t mean views and opinions. I mean whether there is a bank holiday ahead, or a major data release, or other significant event. These may or may not affect your strategy, depending on your timeframe, etc. But it is good to be aware of these and how they impact on near term price action)
- Journal all your trades, whether actually taken or not. Analyse them meaningfully.
- Never chase the market (there is always another trade ahead - unless you blow your account!)
- Never worry about losses if all your trades are managed according to your criteria
Regarding strategy, you need to find an approach that suits your character, your practical circumstances (job, etc) and your available equity. You can succeed whether you are a day trader, or a swing trader, or a longer term position trader. The key is to stick to your routines and rules as dictated by your strategy.
A longer term trend trader may win big gains occasionally, but can suffer a lot of small whipsaws in between. A day trader, on the other hand, (which is me) can pick a set number of pips per day and earn a steady income, but will miss out on the longer trends when they occur.
The point is you need to know what kind of trader you are, what kind of moves you can profit from, and stick to your profile. Keep your losses lower than your gains over time and you are in the top echelons.
But, of course, all this requires discipline, patience, controlled emotions and great objectivity (remain detached and remote from the screen and watch the “big picture” - and not get sucked into just watching the price going up and down.)
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Very valuable piece of advice sir 
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