Have you ever read rich dad poor dad?
Also, the house thing isn’t that simple - you need to consider inflation, and the fact that your house will likely increase in value, not to mention that if you weren’t making house payments, you’d spend 30 years paying rent and have nothing at the end of it.
The purpose of leverage is so that you can use money you don’t own - the bank charges you for that service.
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Hey man, sounds good to me. Really!
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Good Morning,
Oh man - did I have a week - last night was the first night’s sleep I have had for nearly eight days. Gold!!!
Anyway - pipgod - I cannot email you because I do not know your email address and like I said - I cannot send PM’s because it keeps telling me that it is not set up in my profile BUT IT IS. So I don’t know what from here but I would really like to see your plan out of interest sake. The email address that I provided does work - I use it for all my subscriptions on various websites and I’m getting the messages. Please try again.
Further to the above I want to thank everyone for their contributions.
I misunderstood the 1% rule - although - even although I was wrong about it - based on the new information contained in this thread - I would not be down the pan again.
I will be sure to use the correct stop loss calculations and the correct use of the rule form next week after I have thrown some more $$$ into the pit.
I have come to some conclusions and, once again, learned some valuable lessons in this past week. I’m going to share them here:
[B]You do not know better than the mentors on this forum.[/B]
I NEVER used stop losses. Everyone says to use them. Use them. Don’t think you can hang onto a trade until it turns a profit. Yes - it may in the future - but are you willing to run the risk that because of one single trade - you may lose everything in your account and pay loads on interest in the interim. Take the loss - at least you will live to fight another day. USE STOP LOSSES!
[B]Trust the graphs and indicators - they are right 90% of the time[/B]
This past week has taught me something (not that I did not already know it but once again I thought I was knew better). Last week - the Daily and Four Hours Charts and Parabolic SAR and MACD were telling me that Gold was going down. Not one, but at least four to six people were interviewed on Bloomberg that had varying degrees of interest in the price of Gold. Every single one of them said that Gold would go to $700.00 USD an ounce - in contradiction of my indicators. What did I do - ignore my indicators - and bought Gold. Had I either stayed out of the market - or bought in the direction of my indicators - I would have made a fortune by now. Instead - my account is clear again - this time - to $8 000.00 USD! We are now on nearly $18 000.00 USD in a matter of six to eight weeks. At one point in the last two weeks - I had ‘made’ $1 200.00 USD - by using Jame’s system(s), VanessaFX, and by making a few trades based on my own charts and indicators. The moment I stepped away from these methods and made a decision based on other peoples opinions - well - here I am again. TRUST THE GRAPHS AND INDICATORS.
[B]The advice of analysts in the media[/B]
I no longer have Bloomberg or CNBC in my office. These analysts (as had been said on this forum in response to one of my previous posts) may have a long term idea of where things are headed - but then again - if you had a look at your own graphs and indicators - you know just as much as them - believe it or not. Yes - Gold will go to $700.00 USD per ounce - and beyond. I don’t need an analyst to tell me that - my weekly and monthly graphs - as well as MACD and Parabolic SAR - are telling me that this will happen - just not today - just not this week - and even if it does - the gains to made in the long term - far outweigh the little bit of profit you may make in a day or a week. The four hour and smaller time frames were telling me that it was going down - and it has - big time. Whether these analysts use the power of the media to manipulate the markets - I do not know - and probably will never know - but they cannot manipulate the information what is being given to me in black and white (or in my case blue and red) by my trading system.
[B]Stop hunting - not just by your dealer - but by the market itself[/B]
This does happen - without a doubt - except - this time - with Gold - just on a scale that you would never see on intraday trading. In this instance - while sitting here watching parts of my financial life going up in smoke (or down in Gold as the case may be) I spent much time reading various reports, looking at futures chat forums, etc. etc. The statistics showed that the amount of limit orders for long positions on Gold by far outweighed the number of limit orders for short positions globally (from various sources including US Government stats and other places like Gold exchanges etc. etc.). So what happened? Gold went up - caught all of those longs and then plummeted - and even as it was going down - it still moved up now and then - just to make ensure that any new longs were taken down as well. This is not a conspiracy theory or anything like that. It is just the way people and the market work - the big players - that is why they are the big players. I corresponded with someone who was called by his broker hours before the price plummeted and he was told to liquidate his longs and go short - even to the point where the actual positions for shorts were given within to him within a $1.00 or so. Admittedly this is a forex pro (I can’t imagine GCI phoning me to tell me to remove my longs because Gold is going down in two hours). The point I am trying to make is there are people in the ‘know’ who do know what is going to happen before it happens. They are not guessing or predicting the market - THEY KNOW. Why do I mention thsi point - BECAUSE IF YOU USE STOP LOSSES AND DON’T GET GREEDY - it does not matter what they do. They can only rape you for a small amount - not clean you out.
[B]You and the type of person that you are is the problem - not the market[/B]
I would be suicidal right now - except for one thing - I know that I am the problem - not the market, not the indicators, not the systems - but me. I hate looking at a loss - and even worse - I cannot bring myself to take that loss - but try to ride it out - until my account can’t take it anymore. This does not - and will never work. Why should knowing this make me fell OK about what has just happened? Well simply because I know that if I trade machanically and not emotionally the system does work and there is still hope.
[B]Hedging positions[/B]
Hedging can and does work BUT only in a ranging market. Never hedge to protect your margin - this does not and will never work. There can be no more a soul destroying moment that watching yourself ‘make’ $6 000.00 USD on your shorts within a day or two - but know that you will never be able to touch that money - because you have longs that are making a $6 000.00 USD loss. I still believe that with there is (mathematically) a system or algorithm that could be worked out to make this situation workable - but I have not found it yet - and until I do - never will I make this mistake again. And - once gain - this would not be a problem is you stuck to the rules and used stop losses (already mentioned above). Put it this way - last Friday when I bought Gold - within two or three hours - all of those positions were showing a profit - but - because of all of the things that I have mentioned above - I did not have any stop losses set, Gold WAS going to go to $700.00 USD an ounce, so - I left them open. By the next morning - these positions had nearly liquidated my account - so I hedged them in case things got worse - and spent the whole day yesterday trying every trick that my brain could come up with - to close them out - nothing worked - the only person that made money out of my tricks was my broker. All I managed to accomplish by hedging for this reason - was to delay the inevitable.
[B]Brokers that take credit cards[/B]
I am surprised that this has not been mentioned on any thread that I have seen here or anywhere else. DO NOT open an account with a broker that takes credit cards. I know that this convenient BUT think about this: I cannot tell you how many time in the last two months I have had open positions - they were doing well - so I thought - well - put some more money in the pot while the going is good. Most of these times I have just transferred money there and then to my broker - opened more positions - and been wrong. I can’t help myself but feel that even if I lost everything that day or night - it would have been limited to what was in my account - and I would have had to walk away - cool off - and at very least - wait until the next day to go down to my bank and effect a wire transfer. By that time the whole market would have changed - and you could start again - afresh - and with a whole new take on the thing. Being able to just transfer money immediately is not the plus that you may think it is. Once again - if you stick to the ‘mechanical’ rules - this would not be necessary - but we are human (at least I know I am) and have not yet developed that ‘mechanical’ skill that is required to be a successful trader (but you’d be surprised just how close I am now)! It has surprised me how a clever person like me (yes - this does not make me stupid) and who has been around for such a long time - has tried to apply human logic and emotions to an inanimate object like the market.
[B]Don’t watch[/B]
Don’t open a position and then sit and watch it. Have a good look at the situation i.e. your graphs and indictors, open a position based on these, set your stop loss, and walk away. I cannot tell you how many times (particularly with James’ EUR/USD system) I have opened a position (with no stop loss of course) and watched it start going against me and then closed it. It it does not IMMEDIATELY start moving in my favour - I close it - and make a loss. I can tell you that everytime I have opened a position and then become distracted by something else or had to attend to something else the position has ended in a profit situation. One time in the past two months I opened a postion (I forget on what) and then forgot about it (it was a Friday). When I looked again the next Tuesday - I had made about $800.00 USD and it was just sitting there waiting for me to claim it. But I looked at the graph for the preceding days and it was going against me - only slightly mind you - for quite a while after opening it. I know that had I been sitting there watching it - I would have closed it - and taken a loss - instead of actually making some $$$. Now this might be a problem for some of you because (and this is already mentioned in the Babypips School) I am one of those people who feels that if I am not sitting in front of my platform all day every day then I am not working. Once again - I suppose this the type of personality that I have - but it has to change. The above only does not apply to a ‘scalper’. Put it this way - if you have already mastered the ‘mechanical’ technique of trading then by all means - sit and watch - but if you don’t trust the system and yourself - then don’t watch - you have done all you can when opening that positions wisely - now it is up to the market.
[B]Conclusion[/B]
I know that there are newbies that will read the above and do just the opposite. How do I know? Because I am not giving you any information above that others have not given me in other threads on this forum. I thought I was special. How do those people know me? How can they give me advice - they don’t know me, my personality, or my trading style? I chose to ignore them - and - unless you have the money to burn that I have (had) - even then - trade mechanically - and take note of what I have said above - and don’t think you know better - you don’t. Like I said - the market is an inanimate object - you don’t control it - it has no reasoning or emotion - it just is - and if you can understand that - you’ll do alright.
Thanks to everyone who has tried to give me advice and read all of my rantings and ravings. I do appreciate it. Like I said before - I really do want this to work for me and I believe it can if I just follow the the rules.
I know that there are those of you on this forum that will read the above and say ‘well - we told him’. I know that - and you were all right. It is just that I had to really mess up to take heed of your advice. I am hoping, however, that by putting your advice over just in a different and more open fashion - that I will get through to some or the other newbie and save them the anguish and hopefully make them some money. Put it this way - these thoughts are coming from a newbie - not from an expert or ‘old hat’ - so to all the other ‘noobs’ that read this - I am not an expert or an analyst - or anything like that - I am you - I just have a month or two on you - save yourself months and a lot of cash - I am not talking down to you - I am talking to you.
Anyway - I will see you all next week - ready for the fight! It is a long weekend here in South Africa and I am going to see Evanescence this afternoon (yes - I am a complex creature - never quite fitted the ‘mould’).
Have a good trading day and a great weekend.
Regards,
Dale.
Great post Dale - what you said about trusting the charts over analysts is only half true though. I’d say look to your charts first, and if you think it’s a good trade, go for it. If the analysts are saying the opposite, [I]don’t just ignore them, but don’t blindly accept what they say either[/I]. Figure out why they think the opposite, and you might find that your trade is uncertain. Better to lose an oppurtunity than to lose money.
I highly recommend these two books for any new, or even experienced traders:
[B]Reminiscences of a Stock Operator[/B] by Edwin LeFevre
The life story of one of the worlds most famous traders of all time - tells how he made a fortune, lost it, made it back, and lost it again. Great to learn from the mistakes he made
[B]Trading in the Zone[/B] by Mark Douglas
All about the psychology of trading, making sure that you make the most of every oppurtunity, and prevent your emotions taking over. Essential reading.
A lot of people online seem to make trading seem really easy - just look at a couple websites, try a demo account, then get rich. Much better to think of it like you would being a lawyer or a doctor - you need to get an education, and that means studying hard!
My friends, relax. It’s just life. Have fun. 
I used to wake up every morning and say “trading is simple, I can do it”.
Now trading is simple for me, and I can do it.
Try it, you will like it.
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With all due respect, while that may have worked for you, it will not work for most people. If it was that easy, everyone would be making money, which just isn’t possible.
While I’m glad your method is working for you, I think it is irresponsible to tell newbies who know nothing about trading to just “try it” - they’ll probably lose their money like 90% of new traders.
Don’t forget that forex trading is a zero-sum game - for every $1000 you make, someone else is losing $1000. If you want to succeed, you need to be better than the competition, and “just trying it” is unlikely to be enough to beat the pros.
I might be pretty good at brain surgery if I just try it - does that mean I should? Of course not, I’d study for years before attempting. Just because you have got lucky with forex, doesn’t mean everyone else will.
You know as well as I do that everything needs to be tested on a demo first.
All I’m saying is do as you need to do, and claim
“I love trading the forex market”
“I enjoy what I am doing”
“I enjoy trading demos”
“I love posting”
“life is good”
Or you could claim
…it will not work for most people. If it was that easy, everyone would be making money, which just isn’t possible.
It will work for anyone who learns how to do it, what ever they chose it to be.
…it is irresponsible to tell newbies who know nothing about trading to…
Of course do the demo thing
…If you want to succeed, you need to be better than the competition, and “just trying it” is unlikely to be enough to beat the pros.
Don’t try it live until it works on a demo, but “just try it” on a demo.
Most can see I was saying to try morning affirmations.
Just because you have got lucky with forex, doesn’t mean everyone else will.
Most look at me and say “he got lucky”.
Years of demo testing and learning everything I could has nothing to do with luck.
==================================================
When I say “just try it” [U]just try[/U] saying this every morning,
“I love trading the forex market”
“I enjoy what I am doing”
“I love trading demos”
“I love posting”
“life is good”
Or you could keep doing what ever it is you are doing now. Just ask “how far have I gotten with this”.
Love to all who except it.
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Here is something I here very much,
…“Don’t get [U]back at[/U] the market”
With my Capital Recovery System, I say,
…“I just allow the market to give it back”
Call me silly, but I see two different was of say something.
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Dale,
Good work on learning the 1% thing.
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I am so happy for your posts.
[I](nice affirmation,huh)[/I]
So if one has lost money doe to ones own errors. All another one has to do is sit back and recieve.
Just a thought, please correct me if I’m wrong. 
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I guess the question is,
Is another taking it, or is the one giving it?
I chose to believe that one is giving and one is receiving. No one is taking.
I chose to be the one receiving.
[I](another good affirmation,no?)[/I]
Hmmmm… :o
Once cryptic, it is now so clear. It truly is about the thinking. I learned something today, pipgod. Thanks for your help. What patience you have.
So much of trading is self-discovery.
Aces: As to your comments regarding risk, there is nothing wrong with your math. The rules you choose to apply are up to you. You are your own hedge fund manager. Know what you know and offer the lessons learned to others. Then let them choose.
I respect your desire to guide others away from what you see clearly as a hazard. Good trading…
Dale, I am truly saddened to hear of your misfortune… Thank you for taking the time to detail your experiences and present them as learning tools for us all. This is a beginning. Enjoy your weekend.
My mind has been working on something. Most people who are not already wealthy are some of the most caring people alive. Caring people do not want to hurt anyone to get ahead. Very cool of them. 
This fine gentlemen brings to us an awesome example:
In order to make it in forex, some one some where must lose it. I’m not sure how correct this is but, In my mind I receive money that a bank some where gave up by making a mistake.
Before I had money, I could help no one. Now I can help many, and do. I believe I am taking from the most wealthy and giving to the needy. I guess I feel like a modern day Robin Hood. Looked at this way, my mind is free to receive now and give some away on Sunday.
Thanks for listening.
Haha - nice attitude, although the bbanks aren’t losing money - they take both sides of the trade, and profit from the spread. Most of the people losing are hedgers - people who give up some profit to reduce risk.
We are speculators - the opposite of hedgers. We love risk, and try to get as much as possible, because risk=profit potential (in moderation of course - don’t forget standard deviation)
Anyway, soory I’ve been a bit absent from the end of this discussion - studying for my last university exam of the year which is tomorrow. Soon I’ll be on holiday, so ready to put more time in to trading (and a little project for this forum - mostly for the newbies, but experienced people might find it interesting too!)
You must be one smart dude, I have no idea what [B][I]standard deviation[/I][/B] is. But I do understand a little more risk pays me better.
Key word: [B]little[/B]
Look forward to it. The more different people can contribute different types of information, the better.
Remember to post some results in post your pips. Pips, ROI, and anything else you want.
Good Evening (Morning to some).
An new week - another bash!
Actually - based on the information in this thread - one of YOU has my USD!!!
Can I have it back please!!!
Regards,
Dale.
Hello,
OK - be like that then.
Just be careful - I’m posting record Pips this week i.e. My USD x 2!!!
If nothing else - I HAVE to get 10 out of 10 for trying!!!
Good luck to you too.
Have a good week!
Regards,
Dale.