What's your experience with Forex?

AnalAbscess wrote:Can you say that it's basically a grind? You make lots of trades with small sums, getting that little advantage that solid money management, discipline and technical analysis can give you?

So in long term, you simply have to win more trades than you lose.

And if you keep doing this for long enough, you will be profiting.

Most people fail here by either risking too much, not sticking to plan and being emotional or not having good money management.

Am I right?


Pretty much, yes. it's a hell of a grind. If you have a 50% success rate with trades and more than a 1:1 RR ratio, then you'll be profitable over time. Some people can make 3-4 big trades a month scoring 200-300+ pips, in contrast with scalpers making 20-40 trades per month. That depends on your trading style and system.

Chasing after quick money is a recipe for failure. Making small consistent profits over time is a winning formula. As I said previously, you only need to double your account 8 times to go from a measly 5k to 1m, that's the power of compound interest. You can have all the technical skills in the world, but without the qualities of a profitable trader such as patience, discipline, level-headedness, and humbleness, you are destined to fail over the long term.

Plenty of people have made quick bucks in months, only to lose them sometime after by getting greedy.

The luck factor is exactly my point, you trade, you win for 2 months you think you're succesful but after a year you have lost more than you started with, you cannot be sure of being profitable long term even though you may be profitable short term, autmated trading is the only way to find out if you're profitable, by placing thousands of trades over the years.
There's no purpose in aggressiveness, what may be a factor is that you may not be squeezing enough profit due to the fear factor and this is not a problem for a robot, i fail to see how aggressiveness could be an advantage, mostly it could be lack of fear.



100 trades is nothing.

Analabcess, even a small edge is GOLD, expecially if you trade with high frequency. This makes me think that there are no noobs out there, it's simply either you are a winner or you're a loser, because even with a small edge you can become a millionaire long term. The problem is that most people don't have any edge, or they think they have one but they find out that it was only luck.

short bald ugly wrote:
AnalAbscess wrote:Can you say that it's basically a grind? You make lots of trades with small sums, getting that little advantage that solid money management, discipline and technical analysis can give you?

So in long term, you simply have to win more trades than you lose.

And if you keep doing this for long enough, you will be profiting.

Most people fail here by either risking too much, not sticking to plan and being emotional or not having good money management.

Am I right?


That's one way of successful trading.

I know traders who have more losing trades than profitable ones. The only difference is they win big, but know how to have small losses only.

Yes, that's exactly what the other guy told me as well.

Currently reading Babypips school.

Worthless Trash wrote:The luck factor is exactly my point, you trade, you win for 2 months you think you're succesful but after a year you have lost more than you started with, you cannot be sure of being profitable long term even though you may be profitable short term, autmated trading is the only way to find out if you're profitable, by placing thousands of trades over the years.
There's no purpose in aggressiveness, what may be a factor is that you may not be squeezing enough profit due to the fear factor and this is not a problem for a robot, i fail to see how aggressiveness could be an advantage, mostly it could be lack of fear.

100 trades is nothing.

Analabcess, even a small edge is GOLD, expecially if you trade with high frequency. This makes me think that there are no noobs out there, it's simply either you are a winner or you're a loser, because even with a small edge you can become a millionaire long term. The problem is that most people don't have any edge, or they think they have one but they find out that it was only luck.


You will not find a system that works on the long term. That's the whole point. If it existed, then it was already found out by other programmers, and arbitraged away.

Luck is part of the game, you have to accept it. You can only get an edge and improve your odds. And manage your money properly to preserve capital.

AnalAbscess wrote:
short bald ugly wrote:
That's one way of successful trading.

I know traders who have more losing trades than profitable ones. The only difference is they win big, but know how to have small losses only.

Yes, that's exactly what the other guy told me as well.

Currently reading Babypips school.


It's called cutting losses and letting winners run. This is supported in behavioural finance findings.

But that's just one way to trade. And this is usually suited for long-standing positions.

AnalAbscess wrote:
short bald ugly wrote:
That's one way of successful trading.

I know traders who have more losing trades than profitable ones. The only difference is they win big, but know how to have small losses only.

Yes, that's exactly what the other guy told me as well.

Currently reading Babypips school.





by your posts i can tell you've already read a great deal and done a great deal of research already.

it's time to stop reading now and get some actual experiance.

go open a demo account

alot of what you say makes sence and is stuff i would not disagree with but at the moment you do realise you are the forex equivlant of a keyboard jockey, don't you.

i don't say that to be rude, but only to highlight the fact that you need to actually take the next step now..
mrz wrote:Those who argue against me are invariably religiously delusional with propaganda, or otherwise they are simply sociopaths, those are the only two possible reasons that anyone would argue against me.

Do you guys really think you should take trading and investment advice from an incel forum? :lol:
Whimminz reactions when I try to be more "confident":
Image

Anakind wrote:Do you guys really think you should take trading and investment advice from an incel forum? :lol:


Likely you'd find them more sound than taking financial advice from a slayer forum.

OSTB wrote:
AnalAbscess wrote:Yes, that's exactly what the other guy told me as well.

Currently reading Babypips school.





by your posts i can tell you've already read a great deal and done a great deal of research already.

it's time to stop reading now and get some actual experiance.

go open a demo account

alot of what you say makes sence and is stuff i would not disagree with but at the moment you do realise you are the forex equivlant of a keyboard jockey, don't you.

i don't say that to be rude, but only to highlight the fact that you need to actually take the next step now..

You are correct that I am a keyboard jockey. For past 3 years I've been reading lots of forums and sites regarding stocks, investing and daytrading. I keep hearing different information, but something is consistent from all people: discipline, strategy, no emotions. I understand that if you have this, you must be successful, but I'm very unsure of myself, so once I finish babypips and choose a strategy at forexfactory, I will start with a demo account. If I am profitable with demo account, I will switch to real money, starting with 5-10k$, which is not considering my savings. Only once I am able to profit consistently in small incriments, I will increase the sizes slowly but in a way that it doesn't matter to me emotionally. I got into Bitcoin and was super stressed about it, but now I don't even care anymore if it goes up or down, I've seen lots of jumping, lots of people going crazy, but it's all emotions and bullshit. I have accepted Bitcoin as a speculatory investment or a gamble that might go up in long term or burn to the ground.

I am still having problems with this:

How is Forex better than trading stocks swing trading?

Can anyone help me with this?

I don't really think it is better, I think it is different. The only reason why I choose forex is that I believe in stocks you need at least 30k$ to start out with, and that kind of money will make me nervous. With forex you can start with less money. Also, stocks are a bit harder legally, considering taxes and all, need to pay for account maintenance and commissions only don't matter if you are trading $100k+.

Then again, stocks are real businesses with underlying value. It's not just a greater fool theory, it's actual value being created. You invest in McDonald's, they open a restaurant in Yemen or something, you get money from it by stock appreciating in value.

What are your thoughts on this?

Anakind wrote:Do you guys really think you should take trading and investment advice from an incel forum? :lol:

Of course, incels are bigger nerds, they spend more time reading, listening to youtube vids while slayers spend time getting drunk and getting laid. Incels are also cynical and more rational. They see the glass as half empty which is good when it comes to trading. You have to be cynical, you can't expect miracles. You have to be super skeptical. Incels possess the necessary traits except risk taking, but that's why I want to approach trading in a conservative manner. I don't want to go full leverage and lose my account from one pip movement down, because YOLO!

mustang19 wrote:Sticky this thread when OP goes broke.

Well, I don't think I will go broke.

Think about it. Let's say I have saved up 150k$.

I invest only 10k$ in stock market or Forex.

If I trade stocks, unless I do something stupid like extreme leverage and huge risks with penny stocks, what would make me go broke? I can end up with less than 10k$? Sure, I can. But that's why I would demo trade first.

Same with forex. If I risk little with each trade, if I cut my losers with stop loss as soon as they fall a bit and gradually raise the stop loss, letting my winners run, why would I "go broke"? I don't get it.

If I lose the original investment in some strange way, I will still have my current job and income and will just keep building money and looking for other ways to invest.

If I turn my 10k$ into 12k$ after a year, I'd still consider that winning.

I just need to beat S&P500 really to make it worth while.

All people keep telling me how dumb it is to just keep cash. Inflation makes it devaluate over time.

In worst case I'd just dump 30k$ in Vanguard index funds and leave it for 5-10 years.

Pip-Boy 3000 wrote:Don't trade stocks, it's a different game.

Can you tell me why you prefer Forex specifically over stock market?

AnalAbscess wrote:
Pip-Boy 3000 wrote:Don't trade stocks, it's a different game.

Can you tell me why you prefer Forex specifically over stock market?


I don't prefer either. Actually, I work in an investment bank doing equity research. So I'm more knowledgeable about the stock market and fundamental analysis, since this is what I do professionally.

But if I were to trade, I'd choose the forex market because it's much more liquid, leveraged, technical, and fast paced.

Pip-Boy 3000 wrote:
AnalAbscess wrote:Can you tell me why you prefer Forex specifically over stock market?


I don't prefer either. Actually, I work in an investment bank doing equity research. So I'm more knowledgeable about the stock market and fundamental analysis, since this is what I do professionally.

But if I were to trade, I'd choose the forex market because it's much more liquid, leveraged, technical, and fast paced.

In forex, do you rely mostly on technical analysis?

Can you tell more what includes equity research?

AnalAbscess wrote:
Pip-Boy 3000 wrote:
I don't prefer either. Actually, I work in an investment bank doing equity research. So I'm more knowledgeable about the stock market and fundamental analysis, since this is what I do professionally.

But if I were to trade, I'd choose the forex market because it's much more liquid, leveraged, technical, and fast paced.

In forex, do you rely mostly on technical analysis?

Can you tell more what includes equity research?


You should only rely on technical analysis, since you're usually in and out of the trade during the day.

What goes beyond technical analysis, is market time, and upcoming news. Peak market times for a currency, or overlapping markets, like the London and New York sessions (like right now, http://www.forexfactory.com/market.php) usually has the highest volumes, and should be the time where you make most of your trades. You should also check for upcoming news, you can either trade the news, or sit back until the volatility dies down (http://www.forexfactory.com/news.php).

Equity research has a small part involved in TA, but that's a different department than ER, it's actually a sub-department, and gives recommendation on entries/exits. But equity research is purely fundamental in nature. You basically analyze the company on a corporate level, and try to derive the present value of it's common equity after subtracting all senior claims. Valuations are the final part of your research. The assumptions you make about the company for the future drives your model. The present value of the current stock should be based on sound assumptions through qualitative and quantitative analysis. Which includes, but not limited to, financial statement analysis, management competence, macroeconomic conditions, competitive analysis, liquidity, DCFs, relative valuation, sensitivity analysis, scenario/monte-carlo simulation, and most importantly, a convincing story.

AnalAbscess wrote:
OSTB wrote:



by your posts i can tell you've already read a great deal and done a great deal of research already.

it's time to stop reading now and get some actual experiance.

go open a demo account

alot of what you say makes sence and is stuff i would not disagree with but at the moment you do realise you are the forex equivlant of a keyboard jockey, don't you.

i don't say that to be rude, but only to highlight the fact that you need to actually take the next step now..

You are correct that I am a keyboard jockey. For past 3 years I've been reading lots of forums and sites regarding stocks, investing and daytrading. I keep hearing different information, but something is consistent from all people: discipline, strategy, no emotions. I understand that if you have this, you must be successful, but I'm very unsure of myself, so once I finish babypips and choose a strategy at forexfactory, I will start with a demo account. If I am profitable with demo account, I will switch to real money, starting with 5-10k$, which is not considering my savings. Only once I am able to profit consistently in small incriments, I will increase the sizes slowly but in a way that it doesn't matter to me emotionally. I got into Bitcoin and was super stressed about it, but now I don't even care anymore if it goes up or down, I've seen lots of jumping, lots of people going crazy, but it's all emotions and bullshit. I have accepted Bitcoin as a speculatory investment or a gamble that might go up in long term or burn to the ground.

I am still having problems with this:

How is Forex better than trading stocks swing trading?

Can anyone help me with this?

I don't really think it is better, I think it is different. The only reason why I choose forex is that I believe in stocks you need at least 30k$ to start out with, and that kind of money will make me nervous. With forex you can start with less money. Also, stocks are a bit harder legally, considering taxes and all, need to pay for account maintenance and commissions only don't matter if you are trading $100k+.

Then again, stocks are real businesses with underlying value. It's not just a greater fool theory, it's actual value being created. You invest in McDonald's, they open a restaurant in Yemen or something, you get money from it by stock appreciating in value.

What are your thoughts on this?



by the way you write and articulate yourself i could tell that you'd done your research but by 3 years in you really should have opened a demo and gone live long ago.

disiplin, no emotions, and strategy are all key componants yes, ..but just because you have them doesn't mean it's a reciepe for guartnteed success. 95% of people are still loosers and i can assure you most of those 95% are reading through forums like yourself and many would have come accross that. competition is feirce and to be able to live off forex [consistant returns] you will atleast need to be better than 95% of all traders.

better than 80%?
not good enough. you'd probably be just below or round abouts break even in the long term


you might think you're doing yourself a favour by studying for so long without taking action and opening some sort of account but your not. you seem like an intelligent guy but your inexperince showed when you were just ready to take people at their word for how much money they are making. look around the forums, there are 1000's of threads by people where the OP claims or gives the strong impression that he is making money and he is showing his strategy for all to see. do you really think it's as easy as that to make money? you really think all you need to do is pick a thread and you'll be soon rolling in dough? you really think in an industry where 95% of people loose most of those threads are making money? you really think your rival traders don't know about these threads and that is the reason they are loosing? a big part of why they are loosing is that most of these threads are BULLSHIT .. and have a few lucky months or days but in the long term are not profitable.

by asking for a myfxbook you can help you find that diamond in the rough thread which actually lives up to it's claims, as the bullshitters will always ignore you when you ask for a myfxbook or make up some weak excuse as to why they can't show or display it.

you were asking those people in this thread to share/teach their strategy. what do you think happens if someone with a long term loosing strategy teaches it to another? you think the student will be proftiable?


yes, it possible to sometimes spot people who are profitable without a myfxbook, but this takes experiance. experiance you won't have. at the moment it is better for you to ask to see a myfxbook before learning a system. some can take AGES to learn. and there's nothing more annoying then spending weeks learning and trying to master a system only to finally twig that it's a shit system and the guy teaching you it is not making any money over the long term.

forex is better than stocks for the reasons already outlined in this thread.
also some stocks will suffer from liquidity issues making getting out of a trade cumbersome

and as for bitcoin. by the time the media started going crazy about it and the public started jumping in, it was already too late to make any serious money. the people who got in and made of a bit of money were lucky, as it soon plummeted and far more lost their money.

Image


when i heard about the bitcoin hype, i knew better than to try invest in it, as it was already too late..

you'll learn that too eventually. anytime the media is going crazy over a stock saying it will keep rising the stock is almost always at the end of it's bullish or bearish run and a turn around is imminant.

Pip-Boy 3000 wrote:
Worthless Trash wrote:The luck factor is exactly my point, you trade, you win for 2 months you think you're succesful but after a year you have lost more than you started with, you cannot be sure of being profitable long term even though you may be profitable short term, autmated trading is the only way to find out if you're profitable, by placing thousands of trades over the years.
There's no purpose in aggressiveness, what may be a factor is that you may not be squeezing enough profit due to the fear factor and this is not a problem for a robot, i fail to see how aggressiveness could be an advantage, mostly it could be lack of fear.

100 trades is nothing.

Analabcess, even a small edge is GOLD, expecially if you trade with high frequency. This makes me think that there are no noobs out there, it's simply either you are a winner or you're a loser, because even with a small edge you can become a millionaire long term. The problem is that most people don't have any edge, or they think they have one but they find out that it was only luck.


You will not find a system that works on the long term. That's the whole point. If it existed, then it was already found out by other programmers, and arbitraged away.

Luck is part of the game, you have to accept it. You can only get an edge and improve your odds. And manage your money properly to preserve capital.

AnalAbscess wrote:Yes, that's exactly what the other guy told me as well.

Currently reading Babypips school.


It's called cutting losses and letting winners run. This is supported in behavioural finance findings.

But that's just one way to trade. And this is usually suited for long-standing positions.


Yes, I like holding longer term positions on a daily chart rather than scalping.

It's more my type of trading style. I currently am profitable after 1 year of full time trading by 18.36% with a 51% to 49% winning to losing trade ratio, excluding my break even trades.

Analabcesses, I would strongly recommend a solid and detailed trading journal AND and excel macro to plot your trading history of each trade, including pair traded, entry price, exit price, pip target and stop loss target, total pips won or lost per trade, total dollars made or lost per trade, ratio of winning, losing and break even trade outcomes, and total gain or lost against your starting capital.
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AnalAbscess wrote:
Pip-Boy 3000 wrote:
I don't prefer either. Actually, I work in an investment bank doing equity research. So I'm more knowledgeable about the stock market and fundamental analysis, since this is what I do professionally.

But if I were to trade, I'd choose the forex market because it's much more liquid, leveraged, technical, and fast paced.

In forex, do you rely mostly on technical analysis?

Can you tell more what includes equity research?


Technical analysis and trade management ahead of major news events. Try forexfactory.com to follow major news events, red marked items are the ones you really need to watch as they can be major market movers.

short bald ugly wrote:
AnalAbscess wrote:In forex, do you rely mostly on technical analysis?

Can you tell more what includes equity research?


Technical analysis and trade management ahead of major news events. Try forexfactory.com to follow major news events, red marked items are the ones you really need to watch as they can be major market movers.

Thanks guys.

If you really love finance, go to school for it. Trading on forex isn't some hobby. Geniuses spend their entire lives studying this shit and still lose money.
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