Good post, hopefully others will read and learn.
Oanda report that 73.5% of retail lose - they do so on their on-line ads - but yet more people sign up.
Has always been the same - Wyckoff hated the fact that the ‘bucket shops’ took money off the unlearned so easily - thus he spent so much time trying to educate.
It’s not IQ that’s needed, it’s learning.
You will do well in your future endeavours mainly because you are aware of your own weakness, not because of the IQ 
Meant to say - you have said that quite a few times but it is not actually true.
Quite a few traders sold GBP on Friday - won’t bother to repeat all the FA, some it was here:
Edit:
Learn why Jens Weidmann dislikes QE and how history affects Euro price right now - the market can be much more interesting than charts and paint drying
Yes it is true. As in we do not know if price will reach a specific level or not beforehand.
And why set up a business which has a similar failure rate?
I ask again were you day trading?
Also, you keep referring to high IQ. Some of the worst traders have a high IQ. Far to much evaluating goes on their heads, they think they are right and the market wrong.
And finally, whoever said you need to know where markets are going to make money?
That’s impossible, all you can ever do is place an order hope it’s hit and then manage it.
This whole idea of ‘knowing’ is probably a big reason your struggling, learn to embrace uncertainty in the markets.
If anyone thinks trading is about IQ then they only need to look at Long Term Capital Management.
What a disaster that turned out to be.
Your IQ means nothing when it comes to trading. Just because your IQ is in the top 1% doesn’t mean you’ll be profitable in trading. Trading is way more psychological than the brain power of an individual. I’m definitely not the smartest but have definitely made great profits. You failed to make a profit due to multiple reasons just like the next individual is able to profit due to multiple reasons. It doesn’t really matter how one profits as long as they understand why they entered a trade under their own sentiment following their own trading strategy.
Those reasons are right, I agree they are the major obstacles people face while trading. But when you know these are hindering your success, try and overcome them. Start learning and exploring these things and master this as well, so that there’s lesser scope left for incurring losses.
What i’ve said is I think a high IQ is not really needed for online trading.
Hey earthling.
I just read through this entire post. And these are my thoughts to you.
I can tell you have a high IQ. Not because of you telling us, but because of all your questions. And yes, we all can see the bottom line here, for you. After thousands of hours, you are not successful. And it does seem like you are getting to the final conclusion that it’s a scam.
You are wanting to hear from someone who might be in that top 10% bracket.
You are tired of the “keep on striving, don’t give up, you can do it, spend more hours…speeches.”
Etc…
But, there is one thing you said that I like.
Well, let me ask you some questions.
That is a loaded question. And I’m talking about what brought you into trading in the first place? Are you in it for the money? Only? I mean, does everything hinge on whether you make a profit or not?
Look. I know that probably every single person who has started out on this road has a good portion of that mentality. And you’ll have some who jump out of it earlier than others. Some hang on for years (like me) but won’t give up hope. But…is there any other way to be?
Of course.
How about trying to BECOME a trader.
See. There is a difference. And I think it all comes down to one thing.
How much do you love the game?
I mean, this extends across any field of study, or trade. Why do you think doctors become successful? To become rich? No. Probably because they want to help people. And I could go on about that, in just about any other field of specialization. You do it because it’s what you like. It’s becoming really good at it. It’s what’s inside of you. You have gifts that align with whatever we’re talking about.
You should know what I’m talking about here. Answer the question above. And the real answer to that should make your hard decision to try harder or walk away much easier.
This game (trade) is very difficult.
If you’re in it for the money, only, you’re not gonna make it much longer.
If you want to become a trader…and you should know by now all of what it takes to become a trader, then you’ll do whatever it takes to get there. And look. That’s gonna take a long time. Sure, everyone’s different. Some it takes much longer than others. But it’s time, and experience, that will get you there.
Look. I don’t believe when people say that they’ve spent hours and hours
trying their hardest in this game. Even you, when you say
I don’t believe you. And it really doesn’t matter. All I know is that you’ve spend a lot of time trying, that’s all. Know why? Cause, it was about a year ago, that I counted how many hours I’ve spent striving, in the first 5 1/2 years on my journey. That number came out to be right at about 7 thousand hours. So, my point here is that I do know literally how much a thousand hours is.
You probably don’t know who I am, in here in Babypips. But, I do have a long time running journal. I started it Jan. 2016. And all that started when I completed 3 years of a beginning. My journey started out Jan. 2013. In any case, I’m a typer. And through all of that I’ve asked more questions along the way ( I believe ) more than anyone. You included.
But you do remind me of myself. You are a thinker. And it looks like you’re getting to the bottom of yourself. Which is a good thing. Hey…look…trading is not for anyone. And frankly, I’m glad ( I even remember journaling about this very subject). What I said in my journal was that I’m glad that this game is so hard. I believe only those who deserve to be in it, should be successful. I mean, who wants to see lucky, greedy money hungry, retail traders month after month, year after year come out on top?
Uhhh…well, the good news is that I don’t think that happens. Think about it. Those who are in the market, managing it, making a successful business from it, are not gonna be idiots. They’ve got to be smart, well experienced, traders.
For me, I know this is my calling. I will become a trader. I will have a successful business one of these days (oh, and if you don’t know it, but I’ve had a year of trying my hand at this as my full time business…resulting in no success). This was on my 6th year.
It’s ok though. I wasn’t ready. Apparently.
Reality will always tell you where you are.
All I know is that it’s gonna take me much longer. I’m not worried one little bit. See. Time is on my side. However long it takes…it takes.
If there was one thing I knew, back when I started this journey, is that this is who I am. That’s why I felt it was important to document my entire journey. Cause I know I am a trader. And I will learn what I need to learn. However long it takes.
So…who are you?
OH…I wanted to address another point you’ve brought up much.
I think you should read Mark Douglas’ book “Trading in the Zone”. If there’s only one thing I got out of that book (and I’ve read it multiple times), is this fact.
NO ONE knows where price will go next.
I can talk your ear off about that. Do you honestly know what that means? See. We as humans think we know stuff. Like … the weather…what other people’s actions will be next…what animals will do…lying of the politicians…etc. Man, I can go on and on. And guess what? We are right a lot of the time. Cause it’s true that humans are creatures of habit. And that’s predictable. We have become used to being right, and correct about a lot in life. Especially the older we get.
But, when it comes to the market, we think we can come to know a way of telling which way it will go (direction). Let alone, by how much. And it seems like you have, at some point, convinced yourself that it was possible to know that. And you’ve gotten so frustrated to realize that it is not possible. I think you just don’t want to admit it, to yourself.
Look. We can get close. We’ve figured out how to see trends on a chart. Some trends are long. Some are short. And their all different. But the thing is…all we’re doing is looking at what happened in the past! That’s all what a chart is anyway. It’s the past! And somehow we’ve convinced ourselves that it’ll happen again, in the future. You know, in a way that we can somehow predict it. And make money from our thinking.
NO ONE knows where price will go next.
It’s like the biggest deceiving thing that has ever happened to mankind. And that’s how this is such a big business drawing in people thinking they can do this. “Just give us so much money and we’ll teach you how to become financially free, etc…”
Anyway. I’m sure you know what I’m talking about. My only point is this. Think about what that really means. We really don’t know where price wants to go, and for how long, and when it wants to. If you read his book, he’ll thoroughly explain all of that.
Ok. Earthling.
I’ve said enough.
I would love to continue conversing with you.
Talk to me.
Mike
Thanks Mike for taking the time to make some interesing points.
Does it really matter what anyone else does?
No.
I suggest you make your life what you want it to be.
Prove to yourself whether YOU can be successful at it. Or not.
Check this out.
EVERYBODY’S DIFFERENT!
You just might be the exception.
Or not.
Mike
Chart based technical analysis is the graphical RE-presentation of what has already happened, and in no way shows what is yet to happen accurately enough to be used well enough every time.
I think your so wrong. There are many methods on technical analysis that work.
There are also many that are nothing but hocus pocus.
Deciding which can be difficult for a beginner.
I’m primarily a price action type trader, and really I just cannot understand why you say this type of trading doesnt work.
I give you a system now for free. Please don’t tell me it doesn’t work because I’ve been making money on it for years.
unfortunately it tends to work best on a daily which might not be your bag.
When you see a day, with a day to the left of it with a lower high, and a day to the right of it with a lower high, place a buy stop a few pips above the high of middle day
place a stop loss at low of middle bar.
if the next day the order is not triggered then cancel order.
If it’s triggered keep moving the stop loss to the low of the last closed day.
it’s simple but works time and time again in the market.
Hi John
And do you go short when the opposite scenarios line up?
How many instruments do you trade this on (or up to as a max) on an EOD basis?
Thanks a lot.
Short I would take signals only if they occur at or below a moving average eg 20 sma.
you could hypothetically trade this on all markets however I suspect only the more liquid ones are best.
Also I actively trade this on the gbp/use on an 8 hour timeframe with great results.
I actually only trade 3 markets but use a few different systems.
if you wanted to take a more long term approach you could trail a stop at a significant low; but personally I think short term trading (not day trading) works best with leverage.
When you start using too wide a stop it can lead to frustration and with that it’s easy to go off tilt.
for what it’s worth I don’t short very much.
yes there are some great moves to the downside but shorting is harder on the emotions because of the quick intraday rallies, I’m still partial to scree watching.
Giving up shorting was a tough decision but when I did it improved my trading.
Thanks John.
Unfortunately it sounds like another rabbit hole that i dont have the will or energy to go down. It might work or continue to work, it might not, who knows, the future is yet to come.
earthling, this is not meant to be anyway disrispectful, but the system I have given you is not ‘a rabbit hole’.
you keep eluding to your very high iQ, well why not simply write a few queries into Excel and see for yourself if it’s net profitable
it’s really that simple.
I am really not sure what rabbit holes you went down when trading, most probably day trading, jumping in without demo trading, a belief that you have to predict the market to make money (you don’t), or whatever else.
I feel for you I really do, because I have been in exactly the same place.
The best thing for me was actually having to trade demo for over a year because I didn’t even have a few hundred quid to add to my obliterated account.
that forced rest helped me a lot and made me nto what I would consider a pretty good trader.
Trading is not that hard it really isn’t, but you just need to figure out what doesn’t work before you find out what does.
Day trading does not work (for a beginner at least) they haven’t mastered the muscle memory or emotional control need for such short time frames.
Maybe your journey is over, and yes it can be tiring.
But it took me 7 yrs before I was profitable
.
I know one person it took 23!!!
it took Buddy schartz (market wizards) 9!
It’s not because trading is hard it took so long, it’s because you are correct, you can go down a rabbit hole for years and not know it.
Judgement to know who or what is real and what is full of crap is very important as a beginner trader, if you get this wrong you start picking up bad habits.
I suspect you picked up many, but like I said a forced rest made me see the cold hard light of day, and hopefully that’s the case for you too
I think we all also have to accept that trading sometimes really just isn’t for everyone… With everything earthling has said, it seems the mind has been made up. Props to those trying to convince her/him otherwise though, the passion for trading really shows.
Good exchange overall, I’m happy to see a respectful exchange throughout! 