a friend of mine learned forex, went through school of pipsology several times and she has been on demo trading since 2017. Well at least she says so. Now she’s about to quit and give up because she claims her trades always go in the opposite direction. She tested every indicator, lots of strategies, every timeframe, every currency pair and every session but as mentioned, she never made profits. It doesn’t matter if she trades before work, after work or durin work, it’s like magic, everytime she opens a trade you can see how the trades starts to go the opposite direction at exactly that moment she entered (forget the spread),well at least she claims so.
I tried to help her, explained that higher timeframes are better, told her about psychology, market manipulation, TAs aren’t bulletproof, stop loss and position size managing… But it all seems to not work, however she knew that all before…
Well I’m wondering if this is really possible and now I suggested her just to take a break and come back in a few weeks.
I’m wondering if I should suggest her to “copy” my style next time or if she just should stick to her failing analysis/system and just intentionally click the “wrong” button (if her analysis comes to the conclusion to go long, just clicking sell instead of buy to avoid gettin caught in the wrong direction again )
I know this sounds a bit crazy but I remeber back then when I was a beginner and also experienced to find me always on the “wrong side of the tracks” and I’m wondering how often I would had profit just by choosing intentionally the “wrong” side, however, it would had be the right side however my mistake was trading M5 and M15 so I often ended on the wrong side of the overaltrend.
I don’t believe going in the opposite direction would solve anything because she needs to figure out the underlying cause. Is she closing winners too soon, is she letting losers run?
The underlying cause might be obvious if she was to look through her trading journal over the past 5 years.
What, no journal? I’m assuming not.
Tell her to keep pushing on, and to start a detailed journal of each trade. Not just the date opened and closed and how much she made/lost, but why she open and closed them. Did it hit her SL? Why did it hit her SL?
After it hit the SL, what did it do after, did it keep going, was it a reaction to a news event, a pullback, did it turn around and go back in her direction?
This can help determine what tweaks she needs to make to her strategy.
Don’t let her give up and start copying your trades because then it becomes a burden on you.
Tell her to get in here and read some posts and ask some questions.
I remeber she told me about going with the D1-Trend and when market is ranging just trade "a bounce off of support/resistance, stops and take profits are placed neraby major key levels but not sure if she used recent levels or looked back in past…
I don’t really know her strategy and I’m beginning to see some problems of this post: I can’t answer all of your questions since this is not my question but as far as I remember she really likes esoteric ■■■■ and the fibonacci sequence maybe she should stick to something like that😅
In fact I also told her to start journaling her trades. When I started my journal it helped me a lot to figure out which pair to trade and which not (for exemple GBP-pairs brought me a lot of losses while Australian Dollar were mostly winning pairs so I started emphasizing tokyo/sydney-pairs)
As I see it there are basically two strategies - 1. buy because price has been rising, or 2. buy because price has been falling.
Buying a rising market is usually the right direction but is unlikely to produce a sudden, dramatic win: it does allow the trader to multiply profits by adding to the position.
Buying a falling market is usually the wrong direction but offers the chance of sudden, dramatic gains: these are one-off in-out trades.
There are perhaps also basically two types of traders - each feels more comfortable trading one of the two strategies above. Most people are Type 1’s but when they start trading they assume that successful strategies are Type 2 - that mismatch will not work.
Open up the DAX or DOW indices 15m chart. When London or NY open wait for two 15m.candles, then use the 30m result as a key base entrance point should the indices then take off in either direction.
You may have made a mistake in doing market analysis and that’s why so happened. I won’t say that all trades go in the opposite direction but some of the trades just because of adverse market condition.
)
however my mistake was trading M5 and M15 so I often ended on the wrong side of the overaltrend.