Do you guys believe that people shape their trading plan based on their opinion of how the market works? I realized with myself that I cant follow instructions if It doesn’t make sense to me so I’m curious to see if anyone can relate.
I believe that traders shape their trading strategy on what suits their style. As for how the FX market works, is a life long ambition that will probably see me pushing up daisies before it makes any sense.
What is key, is getting a handle on supply and demand, which peels off one onion skin to open up questions on why did market sentiment move that way. If you could fathom that out consistently you’ll become profitable.
A great example was yesterday when the NZD was weak during the morning Asian session, but accelerated into a F1 position come the London session. No guesses on who took short positions early, only to see the S/L smacked at lunchtime. Just unlucky the good news on NZD came too late.
If you are new and want to make money in Forex trading you should have a good strategy which suits your style of trading. You can make your own strategy and plan to follow.
Yes I do believe this to be the case. But there is a big difference between somebody who has an opinion that they cannot justify in terms of indicators, and somebody who looks to an alignment of indicators to put the odds of being correct in their favour for more than 50% of the time.
I have a fundamental belief that the right indicators can produce an Expert Advisor that does what it says on the tin. The caveats are that it is more probable that success will be achieved using EAs that assume a specific market direction (bull, bear, choppy) rather than one Holy Grail that works in all markets. My own longer term goal is to become proficient in being able to create EAs (either by learning how to code or leveraging the skill of one who already does) and combining that with less conventional social data like the APIs that can be used with Twitter feeds, as one example. I have a broad background in IT management, less so in cloud implementations, BI or API use. But at least I know what are the possible tools that may get me there.
I am an engineer of old, with the belief that our future outcomes are only limited by self-imposition on our own dreams and imagination. Sometimes I like to think like a five year old. Just to dream what is the art of the possible, and go down that rat hole to try to find the nirvana. I may never succeed, but the journey is thrilling, engaging, stunning and is what keeps us all alive to come back for more.
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Trade what you see and nothing else. Don’t use any indicators except for good lagging macro scale trends.
What did it do last week, last month, last year at the current date/price?
Thanks guys.
It’s a cliche but true - you always end up finding a method that fits your underlying belief system.
For example I believe markets cannot be predicted in the medium to long term, so I trade short term.
I also hate intra day trading so guess what I always make a pigs ear of it when I do.
I believe I am jinxed trading on the bear side, and my short trade results would confirm this
I need simple things, which I why I gravitate to price action, while others are quite happy with multiple indicators and timeframe analysis.
One of the biggest issues for new traders is the by the time they’ve figured out what style suits them best theyve blown up their account.
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generally traders choose their trading style according to own knowledge and experience , we should choose the trading style which is more appropriate to the concept of trading that will be used , if love doing scalping should choose the broker which allows trading concept such as this.
you trading plan can be good more and more but any kind of good trading approach can be useless if there is strong money management . so develop you MM first of all.
your trading styles should fit your personality, lifestyle and idea of the market
its a fantastic reply from all in there , its all about relates attitude and personalities.
Thanks again guys
i have a very simple and also stupid question for all , there is any difference between trading plan and trading style ?
Luke,
On this forum there is no such thing as a stupid question, and sometimes we all learn more from these than more complex questions. I had to browse for an answer to this since the thread originator did not refer to “trading style” himself, but it was introduced by responders.
Here is a link to what is meant by trading style:
On the subject of a trading PLAN, I use a business management definition to try to maintain the difference between a STRATEGY and a PLAN. In management speak, I start off defining a Vision. That could be something as high level and fluffy as “to reach a level of proficiency in trading where I can choose what I do with my time without having to worry about basic income required to live my life with all mandatory costs being provided for”. Now to achieve that vision, the management speak types would continue on to say that the vision can be achieved by defining Goals and those Goals can be achieved by defining Objectives. Anyone who “works” in a conventional job will start to recognize such terms in periodic discussions such as “annual performance reviews”. I jumped off that ladder 30 years ago, but still find it useful to think in these terms. Cutting to the chase, objectives can be achieved by defining a series of actions that can be described in a Strategy (what and why) and a Plan (who, where, when, how). I have a robotic type of approach to these matters that has served me well for over 30 years, and find it hard to change approach.
I recently determined that my natural “style” is most likely to be a position trader (Position trading trades are held for anywhere from a few days to several years), and at the same time to develop my Plan that does not isolate my trading Plan from my investment Plan. It’s taken me over 15 years to get this far, but it seems to be working an awful lot better than previous styles whereby I would strategize and plan my trading completely independently of my investment planning. We will just have to see how that works out.