Successful trading

Artemsb posted:

Mohammadi posted:
success can be an easy task ,
if you have enough capital and you know how to manage money. that's all

Money management is really good as it can save you from huge losses but i don't think success is that easy

When I talk of Money Management, as do many successful investors, it isn't just the money that is being talked about most of the time. It's really about a bigger topic of proper risk management.

Proper risk management which money management is a vital portion of, would also include the use of a profitable strategy.
Without a profitable strategy, then proper risk management isn't being used.

It's either profitable or it isn't.

If it isn't profitable and an investor continues to trade with it, knowing that it probably isn't going to just magically become profitable, then there isn't risk management, and the investor isn't minimizing their risk.

If a trader isn't minimizing their risk at all times, they aren't protecting their investment capital.

If the investment capital isn't protected, then eventually all those bad trades are going to blow the account out.

Accounts get blown out due to one reason only. Poor risk management. No other reason. Regardless of what the event is.

The event might be different of course, such as a Black Swan or whatever colorful name we might assign to such events, the name is irrelevant, but if the investment capital is lost and the account is blown, it's because of poor risk management. And ultimately that is entirely the fault of the investor.

It's very simple to protect your account against something like that, and it's absurd that investors refuse to accept responsibility for the losses, when ultimately it really is the responsibility of the investor for everything that happens with the investment capital.

Does it matter that it's a negative 3000 pip spike against your trade? NO. This could just as easily have been a profitable 3000 pip spike.
Does it matter that there is a change in political climate in 'XYZ' country? NO. This could just as easily be profitable.

Proper risk management would indicate that the ticket uses a REASONABLE and REALISTIC Stoploss to prevent the account from being blown. In the same note, proper risk management would indicate that the ticket uses a REASONABLE and REALISTIC Takeprofit, to avoid emotions from causing 'greed' to get the best of your winning ticket. Collect your losses or profits, and wait for the next HIGH PROBABILITY trade to happen as the market allows for.

Which is better?
A ticket which is -3000 pips in loss, or a ticket which got closed out by a stoploss price at -30 pips?

Which is even better?
A losing ticket with massive losses? Or a winning ticket with a small profit?

Personally I'd take smaller profit over ANY kind of loss every time.

Proper risk management protects investment accounts against catastrophic events.

If an account is blown, it's the investors fault. No excuses.

What do you mean by 'Does it matter that it's a negative 3000 pip spike against your trade? NO. This could just as easily have been a profitable 3000 pip spike.'?

Surely a loss is worse. I do not understand

TheGreatRecycler posted:
What do you mean by 'Does it matter that it's a negative 3000 pip spike against your trade? NO. This could just as easily have been a profitable 3000 pip spike.'?

Surely a loss is worse. I do not understand

I'm saying that if you had a stoploss of -30 pips, then the account would have been protected against a catastrophic -3000 pip spike, if your trade was in the wrong direction. The same could be said of your ticket was in the correct direction, if it spiked 3000 pips, it could be a big win.

The point I was trying to make was that regardless of what the event was, it is ultimately the fault of the investor if the account is blown.

 Bad trades happen to everyone. But proper risk management will save an account from being blown out. This is why it's important to use a profitable strategy with realistic SL and realistic TP on all tickets.

And yes, surely a loss is worse. But I see trades every day being made by people who refuse to use a stoploss, and have unrealistic take profits, and to make things worse people trade with lot sizes that are absolutely absurd for their account sizes, and they wonder how they lost it all.

Yes Practice Makes a Man Perfect! But the same time for forex trading its best to own little capital use leverage to get best experience. Gain best profit and increase your capital.

dextormason707 posted:
Yes Practice Makes a Man Perfect! But the same time for forex trading its best to own little capital use leverage to get best experience. Gain best profit and increase your capital.

It’s a good idea; I mean growing slowly from a tiny little amount; in this case, small trading leverage is useful instead of the big leverage!

AniLorak posted:

dextormason707 posted:
Yes Practice Makes a Man Perfect! But the same time for forex trading its best to own little capital use leverage to get best experience. Gain best profit and increase your capital.

It’s a good idea; I mean growing slowly from a tiny little amount; in this case, small trading leverage is useful instead of the big leverage!

Definitely; following the slow process is the best practice; on the other hand, greedy traders are interested on only high trading leverage; but that’s not the proper way!

Humans consistently under perform because they have emotional interference. Algo trading formalizes your strategy upfront and sets clear boundaries on your risk exposure

MBFr_Group posted:

Humans consistently under perform because they have emotional interference. Algo trading formalizes your strategy upfront and sets clear boundaries on your risk exposure

True; this is why traders need to start their live trading after enough practice is demo; otherwise the live trading will be messy for sure!

Very true! Good broker ensures good services giving you good profits if you already know how to trade and vice versa.

Αυτό είναι πολύ αληθινό. Νομίζω ότι το πιο σημαντικό πράγμα είναι η γνώση και η εμπειρία. Ο μεσίτης πρέπει να είναι αρκετά καλός ώστε να παρέχει αξιόπιστα δεδομένα τιμών και καλές διαφορές

putriririn posted:
Αυτό είναι πολύ αληθινό. Νομίζω ότι το πιο σημαντικό πράγμα είναι η γνώση και η εμπειρία. Ο μεσίτης πρέπει να είναι αρκετά καλός ώστε να παρέχει αξιόπιστα δεδομένα τιμών και καλές διαφορές

Both - your experience and forex knowledge as well as brokers conditions are important.
Also I would add it is important to either use robots or control your emotions and greed.

Good broker conditions and good service,
Strategy (demo account trained),
lack of excitement.

Its are main criteria for me for profitable trading.

Successful Forex trader doesn't exist 😲

Kamrul12063 posted:
Successful Forex trader doesn't exist 😲

There are many traders who claim to be successful, even trying to sell you their know how.
IMHO successful trader does not need to sell know how, he makes profit by trading or managing accounts.

Kamrul12063 posted:
Successful Forex trader doesn't exist 😲

Generating a consistent, low risk ROI of $100,000.00 or more per year from trading Forex is successful isn't it?

If an investor has $400,000.00 US in a well diversified portfolio and it generates an aggregate flat ROI of 25% annually, that works out to $100,000.00 US per year.

Even in expensive cities like New York or Tokyo a person can live a very comfortable lifestyle on $100,000.00 US per year.

If a person budgets their money correctly, and they don't really have any unmet financial needs as per their level of income, then I would most certainly say they are successful. If a person can't live on approximately $8000.00 US per month income, then it isn't a problem with Forex, but rather it's a problem with the person who lacks reasonable financial planning.

To state that successful Forex traders don't exist is absurd.

success can be an easy task , if you have enough capital and you know how to manage money. that's all

MBFr_Group posted:

Humans consistently under perform because they have emotional interference. Algo trading formalizes your strategy upfront and sets clear boundaries on your risk exposure

Agreed, but don’t you think that’s highly techno dependent. One short glitch and the entire strategy is ruined.

peter_fx posted:

MBFr_Group posted:

Humans consistently under perform because they have emotional interference. Algo trading formalizes your strategy upfront and sets clear boundaries on your risk exposure

Agreed, but don’t you think that’s highly techno dependent. One short glitch and the entire strategy is ruined.

Technical Analysis alone isn't enough.
Fundamentals are equally important.

The most important rule is Risk Management.

If the investment assets aren't protected above everything else, then there is a greater chance of blowing the account with massive losses.

 

I find fundamentals are very difficult to understand and use for trading. Do you know of any books that teach how to use fundamentals to help with Forex trades. Everything I have read doesn't really apply fundamentals to specific trades