My best shot at forex success

I’m starting this thread as a bit of a journal of my trading activity and what I’m learning about forex.

I have been in forex for about 3 years. I managed to blow up only one account so far… lol. I backed away from forex for a little while doing occasional reading on various forums. However, during this time I stumbled on to a man that offered to be a bit of a forex guide for me. I never paid him a dime and was nothing short of lucky to have stumbled on to him. Ironcially he was the second of such person I had ever met.

Both of these gentleman had success in the forex market. Basically this is the tale of two mentors or at least what I learned from the two. One of these men no longer trade forex after busting his account the other is still very successful and has probably one of the most solid, consistent, trading methods I have ever soon. The first mentor was alittle more traditional with predetermined stops and take profits. What I liked about how he traded was that he was able to trade almost has if he had a crystal ball. He rarely placed market orders. He placed mostly stop and limit orders with predetermined stoplosses and take profits.

The second mentor I had was pretty unorthodox. He traded mostly market orders, he kept orders open for days, weeks, and even for years. However he opens with very tight stop losses and lets profits run almost forever. His precent of trades that are winning is below 40%. I was impressed with this style cause it was so different than what I had seen before. I also like that he never predicted trends or tried to determine when a trend ended or turned. His goal wasn’t to make the most on every trade it was to pull profits out of the market systematically over time. The most difficult part of the trading method is battling the psychology of trading. For two major reasons.

You end up with lots of losing trades and you always have a huged unrealized profit, closing out trades systematically to keep your equity curve smooth as you can. I have seen this technique in action and this will be my attempt to focus on what my second mentor taught me. I have a small account with IBFX.

Thanks for reading, you will quickly find that I am still a newbie and still learning alot of the basics.

Hi,

Why didn’t you just continue in your first journal?

http://forums.babypips.com/forextown/13023-coastalfx-journal.html

That journal is very old and I trade much differently now. My two mentors I mentioned both came after that journal. Also I had no idea how to find that but figured it would be better to just start fresh.

Best of luck coastalfx! If you don’t mind, could you give us your basic trading strategy? Entry, take profit, stop loss, indicators, and so on. Would help us follow along for sure. Anyway, I’ll look forward to see what 2 different professionals have taught you. GL!

To answer your question I am mostly following my second mentor’s teaching which is more unorthodox. The hardest thing to learn is there are no hard and fast rules just general principles to learn and follow.

There is one primary rule but truthfully it is not clear nor concise enough for most people. The rule is keep stop losses short most of mine are 20 pips or less. Let profits from indefinitely. This will make more sense as you see it in action.

Just took
Sell Eur/Cad 1.40010 with stop/loss moved to breakeven and set to run

Buy Usd/Cad 1.00114 with stop/loss moved to breakeven and set to run

Two other trades were placed but one was stopped for -15 pips and the other was stopped out for -20 pips.

Jackie

Sound’s interesting for sure. I couldn’t trade without “hard and fast rules” because I can’t resist getting out too early or jumping in late on a trade I missed. Fear, my friend, is too powerful a motivator for me, it would seem.

That being said, I’ll be sure to follow along closely. Good luck on your two current trades.

You are right and it is the reason most could not trade this methodology. But in someways it’s also less stressful. I don’t worry where my TP would be. I don’t worry about trend changes. I just get into a trade with a small stop loss, move my stoploss to breakeven and let it run. There is more to it. I will be posting more trades up here. I will not be posting all of my trades because it gets time consuming but I will be posting overall wins and losses and some specific trades a well. My trades over night were stopped at breakeven.

I like placing entries on the 4hour charts so I may look for any possible set ups around 12pm depending on what I’m doing.

Jackie

actually it is the main principal for forex. But many traders (especially newbies) miss it. Before I was also trying to pick up the best “holy grail” parameters for my trading, like “entry, take profit, stop loss, indicators”, but after losing some money - I found the abovementioned principal

Couldn’t agree with you more PathfinderFX, the key is just to follow and implement what is already there. But if I may add it a bit… there is also some other aspect to consider such as mental strength of that particular trader is also another key aspect to get a consistent profitable trades.