What is Missing on the internet about Forex trading

Beginner Questions Candlesticks, Chart Patterns, and Price Action
21

Hi,

The reason why a lot of people fail in trading is because they want to get rich quick and they forget that trading is not a sprint its a marathon. Yes people will lose trades like we all do but what people think is that trading is all technical but they are wrong its actually 90% mindset and 10% technical if your mind is not right then how the hell are you going to be a successful trader and you must be disciplined and use proper risk management.

Sometimes you need to go with a reputable paid company that will actually teach you the correct info (I can help you with finding a educational company) . But if you donā€™t have the money to invest in your self then look up Christopher Derrick on YT. Books/video/internet are good but 90% of the time you donā€™t know where the info in coming from and donā€™t know if its 100% fact rather then theory.

I been trading for just over a year and yes I had my difficulties in trading but through out my time I came to realise that trading is more mindset then technical and when I got on a live account 6 months ago your mind set and risk management has to be top notch. Just keep at it and you will eventually grow and become a successful trader.

Happy Trading :smile:

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22

Money Management and The Mindset of a Trader. These two things are required to be successful in the markets.
And it comes with experience only.

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23

I think at the end of the trading is a business. The stats about business failing is 20% will fail the first year and 50% within 5. Forex is easy to get into and just as easy to lose so seeing 75%-80% fail rate doesnā€™t surprise me. People that can make it in trading have to have the right thinking manage there risk in the market and to be able to grow there business.
Just my 2 cents

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25

I guess how a newbie is introduced to trading is by broker trainers over very short time. After a 5 day crash course the traders are urged to trade big amounts and mainly for quick returns trading volatility with 1,5, 15 minute charts with tight risk management ratios. This is good ground for greed and hyper emotions and obviously stringy trade losses. With time and great loss I have slowly learnt that I am more relaxed with long term trades. When I stopped doing this for money and doing it for a lifestyle, ma game changed

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26

It is not about what you have read or what you know, but how you go about it. And sometimes things go wrong not because we made a mistake but it just happened.

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27

Yes, I agree that a good foundation is critical. Initially I paid to learn. Risk management was drilled into my head to the point where I only traded microlots. For two and a half years I only traded microlots. I started with a $500 account and lost $33 after 2-1/2 years of trading. Along the way I discovered trading psychological problems that I had. It scared me that I was revenge-trading and feeling ok with no stop placement. I had to stop the bad trading habits. Now I trade mini-lots and Iā€™m still working on being profitable. Iā€™m not a big loser but I still have a loss of $47.
Let me also add that most of those trades for 2-1/2 years were done on a demo account. Now I trade only on a live account.

28

Hi Clemmo

I agree with a lot of what you have said. However I am unable to find anything about this person Laurent Brunet.

Who is she or he??

I have found Al Brooks to be brilliant and I trade his method with good results on both FX and Futures.

Cheers
Blackduck

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29

I misspelled his name, sorry!

https://www.quora.com/profile/Laurent-Bernut

30

Got him now. Many thanks

31

Warnings and honesty.

32

This was an interesting thread. Liked the point that just because one is winning, it doesnā€™t mean others are losing.
Like they say, a long way to go and so much to learn.
Right now I am going to go through free courses on Quantra and other sites :slight_smile:
OH if there is a good course on forex trading, please tell me oh great ones. It will be much appreciated.

33

One of the reasons traders fail (ie they lose the bulk of their accounts) is because they are under-capitalised for the position sizes they attempt to trade.

I know this from personal experience.

Instead of taking a 1% or 2% risk based on the size of capital available, some traders (I am guilty) will take 30% or even more. Sounds insane, but it happens easily enough when opening multiple positions. before you know it, you have committed up to 50% of your account, making your vulnerability extreme.

This is particularly important because of the existence of such things as price spiking in the market.
Some people say this is stop-hunting (it is) and it happens because professional traders want to go long/short at specific Support/Resistance levels.

Professionals want to enter their trades at the same places dummy traders put their stops. The proā€™s do this because they want to sell high and buy low. Dummy traders put their stops high when they short at the wrong place, and vice versa. The proā€™s know this and drive price up to hit these stop levels. That is why price turns around immediately after stops get taken out.

So when price spikes a bit ā€¦ or a lot ā€¦ then you have traders taking a loss.

If this did not happen, then fewer traders would be recording a loss.

But it is a fact of trading life. The way to improve the trading mortality is to ensure you/I donā€™t over-commit to our positions. Maximum 2% is certainly boring, but it IS safe.

I stop short of saying that brokers should prevent these trades from becoming valid, based on the size of the account.That would be nanny-state nonsense. But if traders will not limit the size of the trade based on deposited capital, then they will become a statistic, and one of the 70-something % who are unprofitable.

I know this could be regulated into prevention, but that would penalise good traders who are profitable based on higher % risk. Not sure where to draw the line with the issues of industry regulation and personal responsibility, but I favour the latter.

I seriously doubt that many of us understand the actual risks we take - I took a long time to ā€œget itā€ but some proceed and take that risk regardless. Some people have no respect for money, and gamble it away anyway with unwise trading.

Another thing that losing traders probably donā€™t do correctly, is place conditional sell orders at resistance, where they would normally place their stop-loss, and conditional buy orders where they would normally put their stops at support. Once this mental correction is made, then traders can certainly begin to make profitable trades.

Would be keen to hear the opinion of others on these points.

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34

This quote goes well with this conversation, since itā€™s speaks to the need for personal responsibility in trading, rather than trying to regulate (off-load) responsibility for ones actions.

In my experience so far, there is copious information about trading on the internet. Both the marketing from Forex brokers bragging of unrealistic profits, and the cautious and helpful sites/forums/traders that make it clear this is not a get-rich-quick scheme.

Those who are desperate for a way to make fast money will listen to the message that best confirms their views. Those who are pragmatic will likely take heed of the warnings, and take the time to educate themselves about trading plans, risk management, etc. Classic confirmation bias. I think this is way there may be a lot of losers in this game.

I think the information is out there, both overly optimistic and overly pessimistic, and realistic. Itā€™s up to the individual to perform due diligence before jumping in. Actively seek out the information that makes you uncomfortable because it challenges your beliefs.

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35

Thereā€™s actually a recent article related to this, Data Confirms Grim Truth: 70-80% of Retail Traders are Unprofitable - BabyPips.com

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36

Ingot you going deep into that, I also thought earlier we could have such regulations

37

nice topic , actually its all about lack of discipline for that reason in spite of having all inevitable part of trading good result is not coming. we just need to keep balance trading particularly when learning and practicing. thatā€™s all.

38

The regulations usually compel brokers to ask traders what their experience is, in trading using leverage, as well as warning traders that they could lose more than 100% of their accounts in the Forex market.

I donā€™t know of a single trader who has desisted from trading because of these warnings, but there are probably a few who have considered it and asked themselves ā€œWhy?: How could that be?ā€

My personal view is that traders should be able to trade demo profitably before going live.
But I didnā€™t follow my own advice. I understand the haste people have to get in and begin to ā€œmake some money.ā€

Unfortunately I thought I was reasonably clever - I was an Industrial Chemist for 8 years, before going into nursing and midwifery 35 years ago. But cleverness is probably the thing you do not need in this trading game.

Humility would be the best attribute, followed by patience. Those who possess these two qualities would be much closer to success than those who think they can figure this out in a jiffy.

Mmmm. I wish!

39

Forex has become well accepted as an online earning stage with the advancement of technologies. And it is now easily accessible to the retail traders with the means of various learning tools. However, there are some divergence between reality and expectation and along with theoretical education a trader must practice with demo account to understand the reality.

40

True, that is why is important we donā€™t compare ourselves with others in the market, just stay through to what you do and look for ways to improve.

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41

Yes that is true itā€™s about the mentality