I have found this site very usefull and got excited at the prospect of earning some money from forex on a daily basis. Ive been putting tools into practice using 1 min / 30 min / 1 hourly charts.
I havent had great success day trading on my demo account, in fact i wiped out �5000 across 3 months. I had some good wins at times, but generally the losses added up over time (with strict money management controls).
I have just found this article which poured cold water on my enthusiasm for forex;
Very harsh, not a well supported argument, and seems bias to me. Thats just on the surface.
Could I make a living scalping with low risk? no… Could I with high risk if I didn’t blow my account… actually no… But I can make a living by getting in and out of trades in 1-5 hours, or even longer. I have to assume that he is talking about that too, rarley do my trades carry over the next day (Although some could)
My goal is just to get in at decent times with the trend and in smaller timeframes. For example I look at the daily, hourly and 15 minute trends… Then if its all the same direction not near S&R levels, etc… I’ll go and trade it from the 15, 5 or 1 min chart. (I’ll wait up to half an hour for a counter-trend to occur when I think it ends I get in) I think what he considers me to be is a scalper… The only reason I’m doing so good is because even though my R:R is not as good as people would like my W:L ratio is good. (I also completly ignore common MM rules right now)
I cant scalp the 1, 5 or 15 min charts on their own, but when looking at the larger picture – I guess by the writers definition I can/do.
Thanks for your input.
I use the higher trends to determine whether I go long or short. But i decided to trade quick movements and make small but regular profits on 1 min charts. That was the plan anyway - but lossess grew the more trades I placed. I just assumed that there could be more profit in this strategy - than one where you could wait for 4 hours and only get a 10pip difference.
I guess your strategy would lead to fewer trades being placed. How many trades would you place in a single day (on avg) using your strategy?
I have been working with just one currency pair USD/JPY- and would often enter/exit trades as frequently as 5-10 times per day based on stoch / MACD cross-overs on 1-min charts.
Are there profitable traders out there which trade this frequently?
You can easily make a living off Forex. But as you yourself said the strategy you were using wasn’t working. That just means keep looking for what works for you… Looking over my account. In the month of May I made 83 trades and 73 were positive… I have had a phscological issue that I think is finnally on the mend. But I have a good return dailly. I tend to get in and out varilly quicklly might make 2 ,3 trades a hour or more. But I am studying longer startegies also. I feel having more than one way to trade gives you a great advantage you can trade as the market ,Trends , or Ranges (consolidates). That way you don’t have to wait for the market to change style.
Just stick with it, Rome wasn’t built in a day , and neither will your account. Just start small and compound your account. it doesn’t really pay to start big and loss it all. It hurts your feelings. But even starting small you will know for sure when you have it right…
Pick one startegy and get it right before you try another that way you won’t get them mixed up. Every strategy has it’s own rules, and it doesn’t help if you mix them up…
Good luck and remember you are learning a new trade and it will take time, I have really never seen to many people that just jump in and start making lots right off.
That article represents the views of the writer, his experience, his failures… and in no way should influence the aspirations of the reader.
For myself, I have been day trading Forex as sole income for a bit more than three years…
I like Forex as the trends suit the style of trading that I like… to me there seems to be more trend days than in indices like S&P or YM…
I think we all reach our own level in trading. and there are many excellent systems available, and that it is definitely within a person’s ability to day trade profitably.
Ignore that two-bit article that doesn’t show you both sides of the coin, and read the advice above because it’s infinitely closer to the truth.
Another viable option would be to filter out the market you aren’t interested in trading, let’s say the consolidation period, and only look for trending markets. You might have to look around at different pairs, or to different timeframes, but at least you know that you are trading your system under its optimal trending market conditions.
I think some new traders get caught up in the idea that it’s going to be easy and simple. I think FX trading can be easy, but I really don’t believe it is simple. You need time to learn all the components of the market, and the skills, needed to be a good trader. After you learn those things, then it can be easy to trade and be profitable, as long as you have the knowledge base and discipline to make it possible.
I tried to trade larger time frames like 1/3 hours and day charts but it knocked me around. I dont really like the article it doesnt make sense to me. I scalp the market I know scalping works. Swing trading and everything I dont know if it works Im on the fence about that it work always. Anytime you dont watch your trades you stand to lose money. How you trade is up to you if you think you are going to not follow your rules be emotional. Deposit a small amount in a live account when you blow it you will learn how to follow money management and follow your system rules
Being a vairly opioninated person I’m going to give a shotgun approach to some people as a reply…
I’m sorry I missed the direct question as well, I got side tracked. I wouldn’t say it is not easy, and I would not say its not hard, I would say it requires a learning curve that alot of people overlook. You dont just know how to use a computer, and you dont just know how to read a book – at one point you needed to learn alot more then you think you did. Same goes with the forex, and then still it depends on a persons controll of emotion, or more aptly the sepperation of emotions from trading.
I have put in as many as 10-15 trades a day, and most of those become profitable, when I was being really stupid my first live week I traded nearly 40 times the second day, and was at around 20-30 the second day. I didnt stay in them long enough to ride it out, or they would have all mostly evened out or won… Problem was I got too greedy and was too nervous… I also trade/watch about 6 or 8 currencies. How often I trade each one simply depends on how well it setup for my tradeing style.
That is a very good idea, although I’ld like to add that you should be nearly an expert in one style before learning another. I tried to just get it down, and learn another style to trade and that messed me up in both. I’m sure some can do it, but I would suggest that one tries to demo multiple straigies first before they move foward with doing that live. But that would be very powerfull!
My stragie is very simplistic, look at charts which way is it going is there anythign to stop it, if not try to ride the train. If the train has trouble get off… I only trade in trending markets but it is possible to trade in ranging markets – although I’m not very good at that yet. Slowly working on that scenerio.
Trading for a living is possible but you must have a detailed trading plan and stick to it. So a full time trader must be discipline to follow his /her plan. In addition, the trading plan must consists of money managment and detailed strategy. Just my novice point of view.
