Developing My Own Trading Style - page 2

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I am not sure I'm into the prediction posting for you guys...

11 Feb 2010.

GBP/USD careful with the down.

 

There is no 100% winning system without 100% support from you

* Don't change your system too much, just change your attitude *

I have read an e-book, "Timely Advice from a Pro Trader", stated that "Success in Trading is 80% Psychology and 20% Methodology". " If you can master the discipline to follow your system’s rules, you are eliminating that dangerous ‘human factor’ from your trading. This is the most important step towards becoming a successful trad"

So what is human factor?

I would say :

a) an immediate within seconds, you turn yourself to be greed.

b) an immediate within seconds, you turn yourself to be fear.

c) an immediate within seconds, you enter your trade without planning.

Basically investment is forex is 80% psychology and 20% system. Why do I agree? There is a lot of system (strategy, indicators) tell you that their system is good. However, do you do your research by comparing system and do your homework that you are confident of using it for at least 6 months? Why do we change the system so much and why not we focus the problem and solve it using the same system?

I do believe some other systems has their pro and cons, that's why I mention here that there is no 100% system without your 100% support from you. You are the trading system and what is your system?

Does changing trading system is part of your system?

How do we differentiate between improving a strategy with changing a strategy?

If you like MACD, try to focus it, and knowing which condition is work best, and which condition doesn't work at all. Then choose other system to replace this MACD weakness. Therefore you at least have two system on hand.

In other words, 1 trick is not enough. But if you keep on changing the only 1 trick you have, you are going to no where.

 
stevenglobal:
Before I start, I'm doing a forex research on myself. I know there is a lot of indicators out there, and tools for all of us to use. However, I'm trying to focus problems that I'm trying to solve it, that is why do we lose so much? Cutting every losing trade too much
When it is a losing position, it is understandable you would close it as lost to stop further losses. However, if you cut every losses too much, it is the meaning of accepting the losses, and the symptom is normally you would not able to let the profit run long enough because did not take the risk long enough.

Strategy focuses on Profit too much
If you unable to focus the losses problem, you would not able to go far, and the symptom is this problems always repeated.
Loss small many times, Win A big one fewThis strategy would make you tired and to be greed at the wrong place. Once the Big One does not appear, you would start to panic. It's a No-No. You lose so many times because you are unable to spot the Big One, that's why.How about Win Small Many times, and lose a Big One few? This is the strategy where I'm going to experiment. Taking the risk, manage it at a appropriate place and see how much you would get.Sit Down and Straight Away PlayingThis strategy normally known as a gambling strategy. Where there is an empty seat, you sit and start playing. How about checking on each table, see which table has a big player and see how he/she is playing, there must be a reason the big player sit there for a very long time. Then you catch he/she playing style. In gambling, it is about winning, not playing. So with Forex, it is about how to win, is not a playing games to waste your money. Not every situation is the best condition for win.
The Style of WinningIf somebody tells you that he/she has won in the forex, there are two typical playing strategy. 1st : Doesn't require long hours of playing.2nd : Requires long hours of playing. This is the most important part that you would like to develop a winning strategy. If you mix up both of them, you are mixing whatever strategy you have in your mind, and telling yourself you are an expert straightaway.Amount per pip too much?
If USD per pips is too much, you would unable to stay long for the risk. This strategy normally comes together with those requires sit for long hours of playing because every pips carry a lot of money.Exit trade after long candlestick is formExit trade when you win is correct. However exit trade when you lose the most is definitely a No - No. Forex swing up and down, would it swing back or not, you have to do some homework.

If you want to make sure your trading style will be successful, you MUST match it with your personality type. Never forget that or you wont be happy in the end.

 

Thanks. Agree with the personality type.

 

EArning will be less, if we keep on thinking for lower benefits..

i think spending money in the market which has two type of investment...will be better..

1. One which is giving small benefits...with high risk aarea

2. second which gives big benefits....with low risk area.

 

Forex trading requires self determination and skill to be able to achieve a better sustainable source of income. I believe when somebody says 90% of the traders fail in the forex. Is it TRUE?

Let's look at this way,

"90% fail in the examination when they are given one year subject syllabus to be finished within 1 month or 3 months"

Forex is a huge topic that cannot be finished by 1 chapter and quite a long journey.

Ask yourself, do you like forex? It would not make money without your own control of your knowledge and emotions. The only road is to be a professional trader, and there is no way in between as it would be a waste of time and your money.

There are three levels in forex in my opinion, that each of us need to go through.

a) The basic - unable to make money consistently.

b) The sustainable - making money consistently.

c) The advance - making a lot of money.

 

It has been nearly one year from Aug 2009 that I have joined this forum. In the market there is no exactly the syllabus (guideline) out there, and left us as a kid in the forex.

However one thing for sure, if you are really into forex, you could see things much more clearer if you have done enough of home work.

Such as,

Doing part time trader.

Whereas, the chart is already there (history) for you to test your strategy.

You could get back 1 year or 5 years of experience within 1 month with your strategy or strategies depends on the history data stored.

In summary, when time goes by, it's begin harder and harder to teach the newbie and you would know that you have developed something extra ordinary that works very clear.

Let's see below example. How fearful or greedy are you into

a) stayed the trade for the longest lose.

b) stayed the trade for the longest profit.

That's bounds with the rules and not emotions (fear and greed). The Great investor would have no fear of losing as he/she has already calculated how to win in the following trades.

 

hi i am a newbie to forex trading, even i want to create a strategy of my own..going through

 

Depends what you want in the first place. If your answer is about money, you would come across many obstacles in connection with the money, and not about strategy.

If your answer is about skill, then you would know you are going to invest time and money for this marvelous skill, just like why do you study for PHD Dr, or Master or Degree, is it for the money or for the skill?

Make it clear or else, you are having everyone has, that is everyone has a degree or paper that everyone need to work in order to make money. Skill is something with a little thoughts, but the recognition is far more huge than the ordinary pay.

 

Forex trading requires self determination and skill to be able to achieve a better sustainable source of income. I believe when somebody says 90% of the traders fail in the forex. Is it TRUE?

Let's look at this way,

"90% fail in the examination when they are given one year subject syllabus to be finished within 1 month or 3 months"

Forex is a huge topic that cannot be finished by 1 chapter and quite a long journey. the journey with emotions and psychology.

Ask yourself, why do you involve in forex?

a) Because it is easy?

b) Because to try luck?

c) Because of circumstances?

The only road is to be a professional trader, and there is no way in between as it would be a waste of time and your money.

Forex is a truly fear and greed games. For advance forex traders, they become accustomed in this matter, that they believe they could make up the profit with one trade or few trades.

For newbie, they are too straight forward to ask professional "how much do you make?"

For professional, they will answer "how good are you that should I consider teaching you?"

In forex, there is no "how much you could make" but "how smart are you to stay alive if you miss the exit and miss calculation positions (due to own mistake) and how good are you to maintain your emotions while making large and consistent profits"

such as :

Last time I used to have $0.01 per pips, and make a lot of money. How is your emotions to bet $10.00 per pips compare with $0.01 per pips previously? Or do you want to maintain the level that you are?

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