Noob, one year on!

Hello All

So I have been in the forex game for a year now! how am I doing?

I am the sort of person who learns things the hard way. I guess its a personality trait! But, I believe that if you learn the hard way you will be better at what you are doing!

Finding this site has been a bit of a revalation for me. All the information I need in one place. Its simple and entertaining to read. Thanks Forex Gump for pointing me in this direction.

I started off doing all the right things. Traded a demo account, read everything I could get my hands on. Was making regular profit on my demo account. So I thought everything is going well lets go live

What a mess I got my account slayed with loss after loss. so back to the drawing board.

Back with a new bunch of indicators blah blah blah same thing again just a string of losses. I was doing everything right setting stops etc. but nothing seemed to work for me. I was starting to think I was paranoid and everything was against me. Turns out I was right, well partly anyway.

For me trading a demo account was a complete waste of time. It took me a while to realise that my demo account was lovely and smooth. None of the background noise in the charts to deal with and give you fake signals.

Convinced that I had developed a reasonable and reliable trading system I started to trade a live account. I have not looked back since.

So what do I use? Simple I use Bolinger bands and MACD sometimes I add in RSI. I scalp, and I dont wait for the MACD lines to converge if you do this you will miss out on half the move. When both lines are moving down/up and the histogram is decreasing/increasing then I go long or short. I Trade either 5 or 10 minute charts but use 1 minute chart to time my entry. and 15, 30 minute or 1 hour chart to confirm I am going in with the momentum of the trend on my side.

Its worth mentioning that RSI and stochastics represent strength of market feeling, and may not result in big moves price wise. After all 100% of us probably think it costs to much to put fuel in our cars but that doesn`t mean the price of fuel is going to go down.

I am still in the game and my account is moving forward day by day. 90% of my trades are in profit. I no longer use take profit and Stop loss. When I set an sl I was always getting bumped out only to see I would have been in profit in long run. instead I watch like a hawk. If I think it is going against me I just close the trade manualy. This probably says more about my lack of experince when setting Sl. But, as a newbie it was hard to judge how far things might move. It also means if the market is moving fast then why not hold on to the profit and surf it a bit further, rather than get out at a predetermined tp.

At the moment I am poorer than ever. I sneak away from my day job So I can trade. I spend all my time infront of a pc either trading or educating myself.

If I have losses on my account, at the end of the week out comes the debit card and I credit my trading account equal to any loss I have made that week. I never withdraw from my trading account just keep letting it compound.

But I can now see the day when I can give up the day job and trade full time.

I am trading not to get rich, but to have a lifestyle. So that I can dip in and out of the rat race on my terms.

Remember if you are having big losses then it is also possible to make equal profits.

This is the hardest thing I have ever done. Even harder than hanging wallpaper, plastering, or learning to windsurf.

It’s a long lonely road, but in the end when you see that you are one of the lucky 5% that can make in this game its worth it.

Like everybody I want to be in that 5%. I guess If I am still here in a few years time I could be in that 5%. At the moment I could be just having good luck than being a good trader.

Well any one can be there.

Good luck in your trading endeavours!

Demo trading, as you said, seems to give people a false impression on the market. I’ve been demoing for a while now but feel I need to really get a feel for how the live markets work. Even if that means I pay a little price (in losses) to learn.

Hence my starting out with low risk capital and a hell of a lot of optimism :slight_smile:

Demo is so different from the real thing. I’ve got two demo accounts that are up 30% in 3 months.

My real account (that I’ve had for about 2 months) is bearly braking even.

cuz u dont care about fake money, real money gives you fear

ah the fabled 5%… thats cause the other 95% quit after realizing its not easy free money… Once you get the feel for it, making money or pips if you will is easy (relatively), it just takes time and experience.

In my opinion you should only demo trade for like 2 weeks, just to learn the platform, then throw $500 bucks in and trade micro lots, oh and mentally consider that initial $500.00 lost or spent on “gaining experience” if you need to justify it.

All succesful demo trading does is give you a false sense of security, because it certainly does not compare to live trading.

I can say I blew about 8 grand over the course of the first year “gaining experience”, but kept at it, determined not to let the market get the better of me.

Trading has to suit your personality and its not for everybody, but the few who can suffer the setbacks without being phased and keep going, well they can and will make it.

so Cdawg, how are you coming along now after that 8 grand?

Yep i agree, It is harder than windsurfing! It takes years to become an accountant or bank manager, but people seem to think they can be a star trader within months, always have done and always will. We all want to make the 5%, no matter how many want it, still only the 5% make it.

I believe you have to make yourself very different from the rest to make it, its 20% in the system and 80% in the head for me.

:slight_smile:

Well I can honestly say, that was the best 8gs I’ve spent. I been at this bout 3 years steady now, and making consitent profit for the last 2 years, which has paid back that initial 8 several times.

You just need to be patient and disciplined… this is what kills most new traders, did the same to me. But like i said, once you figure it out, recognise your mistakes and learn from them, the pips come easy.

Theres a post on here about the different stages of traders, and it reads pretty true, just everyone has a dfferent timeframe of reaching the different levels.

I recommend you read Kenneths thread on price action, this is very simular to how I trade, but I came up with my technique all on my own more or less, trial and error, learning a bit from one trader or another and blending it all to suite myself.

Cheers

I will have a look at the thread you mention! The hardest thing I have found is trying to measure how well you are doing and what is normal. Not just from the how much money I am making but how far along the learning curve am I.

I tend to find just as I am feeling confident I get a reality check. I just try to learn from my experiences and keep pushing forward.

I don’t think there is a definition of “normal”, thats way to subjective.

Reality checks are the only thing that make you a better trader, unfortunately they come usually with a heavy price tag. Learn to accept your losses and move on, they are part of trading.

I would also mention to learn to trust your gut instinct, when you have a trade and its going against you and your gut is telling you its going to hit your SL, close it right then. I know I’ve had that same feeling, and I’m sure everyone has. Its funny, that you usually know it with-in a few pips of PA, but our pride and sense of greed tells us that it will turn around if we just let it go a few more.

Cheers

yep that is one thing I am learning more and more to trust my gut instinct.