Technician
Long

Trading? Here are 10 Things You Should Consider

FX:EURUSD   Euro Fx/U.S. Dollar
1. Trading is not a get rich quick scheme. It is a normal investment that gets traders return on capital.

Have you ever met a trader making double-digit percent return per month on a consistent manner?

Trading professionally with proper money management would likely get you a return of few percents a month. From my personal experience a 3-5 percent return on capital per month is a very realistic number.

So if you’re that kind of person who wants to “make a killing” trading, please reconsider your expectations.

2. You should be well-capitalized. Small accounts will probably burn you.

This point is correlated to the first one. let me illustrate with an example:

Suppose that you have a $30,000 trading account. According to the 3-5 percent return per month rule, that would give you 1000-$1500 return per month, which is a very good number, relatively speaking.

Now let’s assume that you have a $5,000 account, according to the 3-5 percent rule, that would return 150-$250 per month.

In the second example(smaller equity ), the return would likely be unsatisfying for someone looking to trade for a living. Would it be for you? Wouldn't you break your money management rules and take more risk to increase that return?

3. Technical Analysis doesn't work all the time.

Assumptions we make will always have a percentage of failure. The main goal is to keep your risk limited, your targets bigger than your risk, looking for consistent profit on the long run.

4. Trading is not about forecasting the market.

Do not try to forecast where markets are headed all the time. What a trader does is wait for the market to GIVE him certain conditions that validate a trade. (Don’t trade under the market rules, trade under your rules.) Do you feel sometimes that you're lost and don’t know what to do? it's probably because of this.

5. Limit your risk.

If you did use stop loss on your trades within the past year, but you didn't and took excessive risk only on one trade, this single trade might wipe out all of the profits you gained through the year.

How many times did you ignore your stop loss convincing yourself that you will close at a better price? It may have worked sometimes, but what if the price goes against you more and more? Are you mentally strong enough and able to close at a bigger loss? You probably won’t, until forced to close on a margin call.

6. Don’t over analyze.

Over analysis and complicating your tools will lead to confusion and is not necessarily efficient.

7. Ignore your bias

Initiating a trade requires technical evidence, three, four or five conditions that occur concurrently.

8. Always use a top-down analysis approach.

Start from the higher time frame to the lower time frame. The higher the time frame the more strong and invulnerable the trend is, and the more strong and invulnerable the support and resistance levels are.

9. Trend-trading increases your chances of success.

Trading setups that occur within the context of the trend tend to have a higher success rate than those against it.

10. Don’t give up when you encounter a losing streak

Yeah it can go up to 10 losing trades… Don’t worry, it’s normal in trading.

Hope you found it useful and enjoyable... If you have points that you would add to this, I would be happy to hear them, please comment and discuss..

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My best regards
Technician
My trading channel https://telegram.me/technician_forex_trades
nappenbir
2 years ago
my dream is consistent profits each month between 5-20% profit!
Then I would be overjoyed!
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Technician TOP nappenbir
2 years ago
follow ur dream mate, i wish luck to all.. just always emphasize on limiting your risk.
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nappenbir Technician
2 years ago
sure and disciplin very good Techniques :)
+1 Reply
idegtyarenko nappenbir
2 years ago
Yeah. 5% a month with no big drawdowns would be a dream come true by itself.
+1 Reply
nappenbir idegtyarenko
2 years ago
Yes i risk only 1-2 % stop.

and more reward! :)
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faizankauser1 nappenbir
2 years ago
Yes, try and keep your level of risk to a minimum. 1-2% is great. When trading I usually won't trade anything that's giving me less than 3% of my account.
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TheBlanco951 nappenbir
2 years ago
So far this quarter I've had an average ROC of 9% per month. My goal is to hit above 10% each month. It doesn't take a whole lot of skill when it comes to trading the markets, but making consistent profits from every trade that you put on is no easy task. diversify your portfolio and don't put all your eggs in one basket because you don't want a whole lot of variance as a result of one big trade!
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ActiveTrader PRO
2 years ago
I agree 100% with point #2

You must trade like your account is worth $1,000,000. Reason being is a 5% profit on that size account is $50,000.... You wouldn't be attempting to trade the 1 hour charts with that much capital. I would say under-capitalization is the #1 killer with retail traders. You can't live off a 5K account as you mentioned, and that is why over-trading and over-leveraging takes place on small accounts.

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Technician TOP ActiveTrader
2 years ago
Thanks for explaining the point in a greater depth.. Great addition mate.
+1 Reply
faizankauser1 ActiveTrader
2 years ago
Unless your patient. Personally, I think It would be very difficult to live off an account with a balance less than $30K, (Yielding 5% Per Month) . Trading is pretty much part time, so the best solution would be to continue trading, but continue to work your day job too, as it would allow you to grow your account and cover your living costs.
+1 Reply
ActiveTrader PRO
2 years ago
I trade a 100K account so I only utilize the higher-timeframes for analysis - Quarterly, Monthly, Weekly. Then I drill down into the daily for a price action trigger that lines up with the dominant trend. Most recent trade being GBP/AUD 3rd drive off the trendline. That position is currently running at 10% with a 1% risk. You MUST have large capital in order to stay sane
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Technician TOP ActiveTrader
2 years ago
Here comes the importance of 2% maximum risk per trade rule, if you have 100k as u said, 2% would give u the ability to increase ur position size that would result in a better return. However with a 5k account, u only have $100 to risk, and thus should take a smaller position size, hence the lower return and unsatisfying income...
+1 Reply
TheBlanco951 Technician
2 years ago
yeah when starting out with small accounts -you do need to break some rules from time to time to reach that goal of 100k. Hey man, you have some awesome trade set ups by the way. its great to see traders like yourself that actually know what they are doing! I'm now following you.
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PaperChase PRO
2 years ago
Technician, great post as always! Can you talk more about money management and using leverage effectively? I've read that FX traders should only risk 2% of their capital per trade and that they should only utilize 5 - 10 times leverage per trade. Do you agree? What are your thoughts on CFD trading where 500:1 leverage is available? Thanks!
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Technician TOP PaperChase
2 years ago
I totally agree on 2%, this is what i am currently using as my risk limit per trade.. leverage is not an issue for me, so long as i am using the 2% rule.
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ChartArt Technician
2 years ago
500:1 leverage is so crazy that I recommend to only trade with the smallest position size your broker allows to keep the winners running as long as possible before the overall trend changes against you. With that strategy and so much leverage I easily reach 1000% gains in a few weeks by letting winners run in demo trades. As soon as I have more confidence in this approach I will test it with real money and not only with a Forex demo account.
+1 Reply
Dimitris Technician
2 years ago
You are wrong here my friend. In some set ups I use 30 pips stop loss. On these set ups I use leverage around 9 to 1 still risking 2%. Imagine in such a position, a black swan event (CHF on January) where stops did not work. Your account is in negative territory in no time. Even if you had used leverage only 3 to 1 you would still loose one third of your account. Leverage is very important as the case of January clearly displayed.
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Technician TOP Dimitris
2 years ago
You are talking about a black-swan event, which has a very low probability of happening. I am talking here about normal trading. Leverage is not an issue, as long as your not utilizing it in an excessive way.
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Technician TOP Technician
2 years ago
I don't know why anyone with proper money management would need a high leverage, i mean hundrads to 1.. 50:1 is even more than enough.
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Dimitris Technician
2 years ago
Yes I am talking about such an event. Because before 15 of January I wasn't even aware that something like that can occur. I also thought that SLs ALWAYS work (except weekends) and I had the idea that the ONLY thing a trader can control is how much he will loose in a certain trade. Now I see this is not the case. Albeit rare only one such event is all needed to cripple you.

As for normal trading circumstances I agree with everything you said.

Have a nice weekend !
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Technician TOP Dimitris
2 years ago
If you dont mind sharing your experience, that would be helpful to all the community.
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Dimitris Technician
2 years ago
Well not really much to share on that, just my reflections on the incident and how I had to change perspective for things I took for granted.
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Mjablo Dimitris
2 years ago
Good example. I think about this price action when I teach others to set stops.
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TheBlanco951 PaperChase
2 years ago
500:1 sounds dangerous. look at what happened in the EURCHF. Many traders that were trading that pair had accounts that went to negative, even with stops in place. read about the swiss franc surge in the Wall Street Journal; it is a very good read! Here in the US, we trade 50:, so i recommend you stick to that!
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2use
2 years ago
Probably made all the mistakes mentioned here :)
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Technician TOP 2use
2 years ago
We all do :) . lets improve together
+4 Reply
ksmash 2use
2 years ago
Same boat here :) I guess we that's part of the learning process.
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2use
2 years ago
Also, i think one of the most important ones is to not put all eggs in one basket. But with this, what to do if one is limited of being able to only buy stocks with 1-3% brokerage fee per trade?
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TheBlanco951 2use
2 years ago
stay diversified when trading. take small profits when the market makes it available to you. control your risk to a maximum of 2% per trade. trade what you know works for you. keep your analysis and strategy as simple as possible. log your entries, log your exits, and log your gains/losses.
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2use
2 years ago
What to do when your market sentiment tells a correction is brewing to lose steam it gained recently. But im eyeing some shares of companies with high volatility like HIMX, TSLA, DDD - their weekly looks attractive. How to act in such situations?
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TheBlanco951 2use
2 years ago
for a situation like that just take some profits of the table when the market makes it available. take 1/2, or 2/3, or 3/5 of your position off. if you want to, you can always move your stop after taking some profits.
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denovo PRO
2 years ago
I'm considering starting a website to offer useful resources to newer traders - may I reprint your list (with credit due, of course)?
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Technician TOP denovo
2 years ago
Yeah no problem denovo as you as you put a link. Good luck
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denovo PRO Technician
2 years ago
Will do (if I ever get past the planning stage...).
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Technician TOP denovo
2 years ago
lol :) Ur not alone
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Excellent points! And regarding account size, factoring in commissions and taxes small accounts are punished even further than what you describe.

Considering that 3% a month compounded annually is 42.5% a year, if that can be maintained with any reasonable consistency over the long term, you will have shown extremely savvy trading skills not to mention a pretty large trading account.

Another facts -- ppl think in odds and probability, but one thing they forget is you don't get the benefit of the law of large numbers in a closed set of trades. I forget the exact math behind it, but in a closed set of 100 trades, after trade number #1 you have #99 left, so its not a purely independent or conditional probability. The stat I cite is that in a closed set of 100 trades with 50% chance of win 50% chance of lose, the odds of getting 7 consecutive losers in a row is something like 65% !! That means for an active trader, you should *expect* a streak of at least 7 losses in a row despite a proven setup and proper market conditions! Another reason why risk mgt is paramount.

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+1 Reply
Technician TOP SPYderCrusher
2 years ago
Totally agree, I even consider ending a month BREAKEVEN is an accomplishment, we always need to preserve capital for another day as traders.. I think a 5% return per month is really something not easy to get and could be an ultimate target for any successful trade over the long run.
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2use Technician
2 years ago
Wow, i hear people make 50, 100% and more a year, let alone those 1000% in competitions. But barely scrape 1%-2%. I cant make heads or tails, unless someone is taking too much risk buying into one stock and hitting a lucky streak.
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denovo PRO 2use
2 years ago
Yeah, there are several "traders" who want you to believe they do it all the time! No problem! Ask to see their account statements... I saw some (obviously) faked statements on a youtube video that really cracked me up. Yeah, it's possible to make ridiculous returns; I've done it. But it always involves being WAY overleveraged, and if you don't get conservative after an overleveraged winning streak, the market is sure to take it ALL back. Stay safe, be conservative - slow and steady wins the race...
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ChartArt denovo
2 years ago
That is why I'm so glad that Tradingview exists as a great demo case of your trade ideas. Not even the moderators here can delete your charts. So it's a excellent proof of your great or horrible trade ideas :)
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Technician TOP ChartArt
2 years ago
Totally Agree, it's an open book, no manipulation no deceiving...
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2use ChartArt
2 years ago
Just a note, i actually know some charts were deleted , wanted to revisit them but could not find;)
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ChartArt 2use
2 years ago
Were the users who made them deleted, also? I mean maybe the users who made the charts wanted to get their entire accounts removed?

And did you check if the charts were fully gone? Mods can hide charts but not delete them.
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2use ChartArt
2 years ago
Nope, i am pretty sure i could find some charts of some top traders here ;) But i wont list their names. Though, one even replied in comments here :) But it was more than once so im pretty sure im not insane as i keep links to all the charts i like
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2use ChartArt
2 years ago
Ehm..what is the difference of hiding and deleting if i dont see any of those?
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ChartArt 2use
2 years ago
I once accidentally made a double post and published the same chart twice. I then asked a mod if he could delete the double post. He explained me that mods can not delete charts and only hide them. So the mod was then hiding that double posted chart as requested.

In my own private user profile (being logged as me) the chart is still there, but it doesn't appear anymore on my public account.
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2use ChartArt
2 years ago
Well, maybe that answers the question where the carts are (but to be fair, some people post same charts double here on purpose, and the charts i've searched for were the single ones). Well, ill just say that i did not find it that delete-proof ;)
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Excellent post. Many thanks. :)
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Technician TOP Captain_Walker
2 years ago
Thanks Captain :)
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Casey_Yeo
2 years ago
Thanks for this nice post.
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jangseohee
2 years ago
i see that many new traders chase price like they are chasing pretty women, which will lead them no way. Conversely, they should let the pretty woman chase them instead
Set a trap for the price to come in according to your rule, at least if it doesn't work up, i know WHY i lose :-)
+3 Reply
Technician TOP jangseohee
2 years ago
Your right, and this is the most difficult part, to wait for he pretty lady .. As a human, Its mentally difficult to hold your instincts ;)
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jangseohee Technician
2 years ago
is it possible to put a picture of the book "Disciplined Trader" here :-)
+1 Reply
Technician TOP jangseohee
2 years ago
haha. You know, why not put an educational section in tradingview, where ppl can also recommend books..
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FX_CLEVER
2 years ago
GOOD JOB! TECH!!
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RZel
2 years ago
Good ideas but poorly written. Review, rewrite, and let someone to check. Publish again. good luck.
-5 Reply
Technician TOP RZel
2 years ago
mmm, can you explain why in your opinion its poorly written?
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Technician TOP Technician
2 years ago
would like to hear something useful
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2use Technician
2 years ago
Leave room for some trolling ;)
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RZel
2 years ago
Technician, nothing personal and full respect.
I assume the rules were written based on your observations and trading experience. It's OK but it is not the 10 trading rules "per se". While some of them qualify for RULES, I would not call all of them the "trading rules" but rather suggestions. Some of the "rules" are written in the way that they are not clear to the outside reader why they are clear to you (see #4). And finally, use the proper English punctuations. :-)
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Technician TOP RZel
2 years ago
No issues at all, your reading my trading rules RZel :) , so i call them what i see them... If you want to take them as rules or not its your choice.. I encourage anyone that's reading this to inquire about any vague point. so far haven't received any. This is not a professional blog, so punctuation and language might not be my biggest concern. I am editing some though for more clarity. Thanks for your input always appreciate criticism..
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Technician TOP Technician
2 years ago
One more thing, I always try to gauge my words before publishing them(ofcourse as much as i can), I used the word "consider" for reason.
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Captain_Walker PRO Technician
2 years ago
I like 'consider'. If people don't want to 'consider' then that's fine. Consider is an invitation to think about. It's not a statement of some imperative or 'rule'. People tend to hang on to words in text based form in a very literal way, I've noticed over the years. And so e-correspondence has a potential to injure relationships (as well as make them better) - it depends much on how people interpret things - that which you may have little control over. Technician, I really like your choice of words. Your clear thinking comes through in your trading ideas. Perhaps you may consider not responding to so many of these comments that are rather vague, and quasi-meaningless utterances. Your time, I think is too precious and valuable. I mean that in no sarcastic way - I honestly think so.
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Technician TOP Captain_Walker
2 years ago
Thanks to you for your valuable input. Appreciate it
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Tom_Killick PRO Technician
2 years ago
I really appreciate the response, even though I, personally understood it, I'm happy you took criticism regardless. Thank you for being part of the community.
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vdubus PRO
2 years ago
Have to agree to disagree with parts of this. A man who earns a $1m doesn't eat any different than a man who earns $200. They lose the respect for the value of money. Where as the man who earns $200 know only to well of it worth an in return finds a way to live, eat & breath at the same time as feed his family for the price of a rich mans cigar.
Place 1 trade per day starting from $10 then the next day $20 and the next $40 an so on . How many days does he have to trade before he become the man buying $200 cigars ?
+2 Reply
vdubus PRO vdubus
2 years ago
Risk less- Make more
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vdubus PRO vdubus
2 years ago
https://drive.google.com/file/d/0BxZa2n8Rjge4aWwwdEczYXBHakk/view
-1 Reply
tntsunrise TOP
2 years ago
This is great sharing! Thank you , Technician! You are so helpful
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GMOTruths
2 years ago
Hi Technician,

I sometimes wish I had a friend who would help me out by explaining some things to me, or going over charts with me, or plan out timing and strategy. I often look at others' charts and wonder about their interpretation, how the levels were derived, and how to apply the strategy.

Tradingview should add interactive screenshare+audio using WebRTC, for realtime tutoring and charting, like a skype screenshare, but better — a realtime chartshare. Technologically it is possible. They don't have that.
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jangseohee GMOTruths
2 years ago
GMOTruths,
sum out your strategy in 10 steps and follow them :-)
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GMOTruths jangseohee
2 years ago
I just did it. What do you think?

1. watch the symbol for a while
2. look at the larger time frames
3. notice a trend (chart)
4. look for supply and demand levels
5. identify patterns double bottom, H & S
6. gage market sentiment (in lieu of fundamentals); read some news
7. pick entry and exit points.
8. look at market sentiment
9. look at sector sentiment
10. Don't buy after a strong rally in price
11. Don't sell after strong drop in price

Long positions should ideally match bullish symbol, sector, and market sentiments.
Short positions should ideally match bearish symbol, sector, and market sentiments.
+3 Reply
jangseohee GMOTruths
2 years ago
Excellent. I suppose you have this mantra in front of you each time you analyse a chart :-)
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Fill15 GMOTruths
2 years ago
Nice post, your rules looks logic and sense full. What kind of indicator you using to check market & sector sentiment?
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ChartArt GMOTruths
2 years ago
I got much much much better when I ignored market sentiment completely in terms of following it, too.

Picking entry points is the most important factor driving profits for me. And to do that you have to follow your rule number 1 "watch the symbol" as long as possible and also I agree with rule 2, to look at the larger time frames as long as possible.

Finally your rule number 10 and 11 are the other key rules.

My learning for a maximum of profit and a perfect entry point:

Long positions should ideally go against sector, and market sentiments (short the top, the top as discovered by technical analysis).
Short positions should ideally go against sector, and market sentiments (long the bottom, the bottom as discovered by technical analysis).
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ChartArt ChartArt
2 years ago
oops, here the right recommendation:

Long positions should ideally go against sector, and market sentiments (long the bottom, the bottom as discovered by technical analysis).
Short positions should ideally go against sector, and market sentiments (short the top, the top as discovered by technical analysis).
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2use GMOTruths
2 years ago
May correct on 10 and 11, sharp price drops can project further price drops. Selling and reentering at a lower point (for example if you were awaiting a break of a downtrend at resistance, and instead it goes lower playing the earnings) or some other strategies (double down if you are still bull for example) May apply.
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Technician TOP GMOTruths
2 years ago
Mate, tradingview is considering adding this feature in the future..
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jangseohee Technician
2 years ago
"this feature"?
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Technician TOP jangseohee
2 years ago
That message should go to GMO, do no why its not
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jangseohee Technician
2 years ago
ahaha sorry
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GMOTruths Technician
2 years ago
I'm a js whiz, so maybe they want some help?
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steel.139
2 years ago
Excellent post. Everytime i got lost in the market then i will goback here and read it again.
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Technician TOP steel.139
2 years ago
Thanks mate
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suparih
2 years ago
Great post, thanks for sharing
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Technician TOP suparih
2 years ago
thank you
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Love Peace
2 years ago
Thanx a lot Technician....... added up to my SOP as well...... If we dont have our own SOP for trading, we will always be looking for something new to adventure on and not see results of 1 trading system overall at least for 1 year just to realize our own system is far more better than other bombastic ones.......
+1 Reply
Technician TOP Love Peace
2 years ago
Very True love peace
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Le_Chiffre_ PRO
2 years ago
I am risking 1% per trade and ends up with more than 10% per month sometimes. I would say 2% is a lot if you consider taht 10 loss in a raw id possible
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Technician TOP Le_Chiffre_
2 years ago
yeah as u mentioned sometimes, i made 50 percent return on October of 2013. So it happens sometimes.... I am talking here about a long term distribution... And 2 percent is not a lot, cause having 10 losses in a raw is possible but its very un-likely.. even if we assume that this extreme case happened, that would be a 19 percent draw down in account.
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Le_Chiffre_ PRO Technician
2 years ago
From a math perspective, I think 2% risk per trade is a lot for 3-5% risk. 5% return would means 5 trades Risk Reward 1:2 with a 50% winning rate and this over 20 trading days, or 1.25 trade per week which is very low latency :)
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Technician TOP Le_Chiffre_
2 years ago
Not sure what your mentioning here, I think this is very feasible... (also the 2 percent is a maximum, it could be lower if it doesn't match ur trading efficiency)
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DerekUweri Technician
2 years ago
Technician, good work. Having these posts re-enforces many of the sometimes overlooked rules, principles, suggestions, whatever anyone wants to call them. It also reminds us that traders share the same issues.
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IanLip
2 years ago
Very sound advice, excellent rules/observations, and for me I also try to follow a 'top to down' approach. It's a smart and safe way to approach a trade, now I can't say I always do this, I can be my own worst enemy lol, but when I do my results are typically better. Thanks for sharing.
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FXViper
2 years ago
beautiful post keep up the good work tech
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Tarek
2 years ago
Your rules are very precious and I suggest to summarize it and make it as a template and read it every day before one begins his trading session.
Thank you
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richmlc
2 years ago
Thank you for your advice. I listen intently and have been learning to many teachers and advisors in the last year and a half as I begin my trading. But maybe a different approach would also work. In your 5K example, it kind of turns people away. I tell myself, "Stick with your $50 R, follow your in and out rules. Do not break the rules. These are the rules of the game. If you break the rules, you are not allowed to play the game...meaning your blow your account out." Just thought, but I guess what ever works for you...
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ChebbiAmine
2 years ago
Yes I make 100% every month and i do it in 2 days too i love the risk and i have many proofs for that i have 4 years in Forex and i love my way to trading i use 0.005% from my account and i make more than 1400 pips every 2 weeks look the account here +62% in 11 Days more than 1400 pips https://www.myfxbook.com/portfolio/1000/1153889
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tommyjose92
2 years ago
Really Good Post @Technician , I agree in the statements that you posted .

I have learned in my experience trading over the years as well those rules that we sometimes hear but don't want to accept.
In my humble experience I get really glad and satisfied with a 2,5% return per month if I can get it consistently.

I also have heard those 2% per day traders, but never seen a real one, jaja I really don't want to suppose why.. Really Good and realistic post.

God Bless You All.
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Technician TOP tommyjose92
2 years ago
Thank you mate
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faizankauser1
2 years ago
Great post Tech! Don't forget the idea of compounding your profits to grow your account exponentially over the long term.
If you started with a $30K account, whilst yielding 5% per month. Theoretically, you'd be a millionaire in 6 years. Patience.
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Technician TOP faizankauser1
2 years ago
Absolutely, when its get bigger, its get bigger and bigger and bigger ......
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Vince PRO
2 years ago
Yes one of the great illusions is the number of people who believe they can make a living or say 100K a year and then you ask how much they are are starting with and they say $5,000. I always tell them focus on first doubling...and with a risk of 1-5% portfolio risk it is not easy...but can be done. Over time it can become very good, but get rich quick usually means go broke quick...even the lucky ones who get rich quick- usually lose it think of all the lottery winners. It is he/she who learns the discipline, emotional mastery, dealing with the self sabotage etc that will grow as a trader and with growth discipline etc the account simply will reflect the inner work in the outer wins or gains. Great article thanks for sharing
+2 Reply
Technician TOP Vince
2 years ago
Thank you for your contribution to this, totally agree
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Vince PRO Technician
2 years ago
Thank you :)
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2use Vince
2 years ago
Great comment, thanx for writing!
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Vince PRO 2use
2 years ago
Sure thing :)
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againstthegrain
2 years ago
my two cents:

11. YOUR FIRST LOSS IS YOUR BEST LOSS.

(i.e. if didn’t work as you originally planed, get out! don’t try to amend it)
+1 Reply
Le_Chiffre_ PRO againstthegrain
2 years ago
12. The difficulty in trading is that your own style is the only strategy that is going to work for you
+1 Reply
G13Man againstthegrain
2 years ago
ouch , but true , learned to
a) Gurus are not the all knowing
B) not double down on what i did not know,
C) do my own due diligence .
D) i need ed to learn more [ and still learning
E) on one knows it all ( note to myself - this includes u dummy )
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Nice post! and very important things to remember...

mine are: run your marketing like a business... project profit and losses... if the plan appears worth the reward/risk (money management) and you have the talent (trend) then launch the plan and build your business on a solid foundation (close to major structure buyers or sellers) with stops above or below structure accordingly (insurance). many large business owners didnt get big on their first try... but by consistently making good business decisions they eventually make steady income.
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Hunter
2 years ago
Very well said. Traders like myself need to hear this more often than not. Good job!
+1 Reply
I disagree with most here in the comments that it is not worthwhile to trade with anything less than 30K. I am trading an account right now since Nov 2014 that started with only $602. I trade the account with robinhood so I pay zero commissions. I will fully admit that if I was trading this account in ANY other brokerage my account *would be* destroyed at this point from round trip commissions. Up to this point my P&L is 8.2% with an annualized gain projection of 32.8%.

I don't think there is anything wrong with someone either new or experienced setting up a trading account at a very small starting capital with the goal and strategy to trade the account to a very large size in the future. But of course as with anything else in life, a clear goal and strategy is needed.

My strategy is to be very aggressive in the early going when the account size is still quite small (ie. under 1K), so yes this means that in some or many cases I am placing trades that are using the entire available funds of my account. But the thinking is that I want to be aggressive early and highly targeted and then as the account grows past 1K, 2K 3K etc.... then to consistently reduce my capital exposure per trade, and continue to taper the amount of capital at risk over time. So yes it does put the account at much greater risk of being destroyed early on, but I sort of view this as the salmon swimming upstream analogy..... not all the fish are going to make it swimming upstream to spawn.. quite a few will be eaten by bears standing over them, but if one never *tries* then it is a lost opportunity.

I must admit that the small account size has made me gravitate towards low price stocks with low floats and to a certain extent this has hurt my results up to this point and it tends to put a very large strain on the emotional psychological side of things. Perhaps I need to modify my stock selection or try to stick to ETFS.

And yes the other downside is that with such small account size there is no immediate benefit in terms of money to live off of. I must admit that is very de-motivating. Trading a small account like this is purely academic in the early years, but with persistence and the ability to only focus only on the best trades, I think it could be worthwhile.

Either way I fully intend to trade this account into the thousands, and tens of thousands and millions at some point in the future. And then I will write a book about it :) .

+3 Reply
Technician TOP BestOnlineTrades.com
2 years ago
its totally dependent on how sophisticated the trader is, but IMO, typically, small accounts are a big disadvantage .
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Technician TOP Technician
2 years ago
why make it harder for you, its already hard
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ChimbOt PRO BestOnlineTrades.com
2 years ago
does robin hood have margin?
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G13Man BestOnlineTrades.com
2 years ago
thanks for how well said your remarks concerning the small ( or limited ) account sizes of a lot of us traders !!!! All traders still need learning , & practice , but some of us are trying this new trade with limited resources !
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ChartArt
2 years ago
My dream is consistent profits each month between 500%-1000% profit.
Then I would be overjoyed!

That is my dream. I said dream :)

I strongly agree that trading with only 3-5 percent of the capital is better than risking 50 percent or 100 percent, because the trading decision is then much easier to keep a potential long-term winner running when the winner is at risk of turning into a loser soon. Especially risking 100 percent leads to impulsive decisions and you can't place more winners, which is very sad when you see a new opportunity.

"Don’t over analyze. Over analysis and complicating your tools will lead to confusion and not necessarily efficient." I agree and disagree with this. In the past I made the mistake of over analyzing, but I used the wrong approaches. So I was seeing things nobody else was seeing. But due to over analyzing I found better approaches and learned that the market still doesn't see what I see but now more often behaves like I expected if I did enough over analyzes - comparing all viewpoints (therefore your point number 8 is key for a successful over analysis).

Overall very good trading tips from you. Thank you for sharing them.
+1 Reply
Trade2Travel
2 years ago
Remember the JP Morgan $2 Billion + trading loss... Even corporate banks make bad investment decisions. We can all learn from the JP Morgan trading loss. $200,000... $2,000,000 or $2 Billion... There are good and bad investment decisions. As traders our experience in the markets is the key. My three rules for trading and investing are (in order) 1) Do not lose money 2) Make profits 3) Compound profits and incomes... Have a great day!
+2 Reply
diegomuscia PRO
2 years ago
Technician, as always...EXCELENT POST!
+1 Reply
Technician TOP diegomuscia
2 years ago
Appreciate that , thanks
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david.messmer.7
2 years ago
Even only making 5% per month, compounded every month over 40 years, you are looking at just above 145,000,000% increase. Assuming you started with $10,000, and you neither added to or subtracted to the portfolio over the 40 year span, theoretically, making just 5% a month, you can turn that $10,000 into over $14,500,000,000. That's the power of exponential growth baby! It's not a "get rich quick scheme," but for those willing to wait, it's a well worthwhile lifestyle.
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Vince PRO david.messmer.7
2 years ago
If you make 5% a month you are beating Warren Buffett who on avg is 20-25% a year since he began. Long term I doubt you will maintain 5% a month if you do you will go down as a top world trader. The markets change and more manipulation comes the with PPT and FED other things as well as black swans... the key is to learn about SELF as the market is a mirror to who you really are, how you hand fear and greed
+1 Reply
2use Vince
2 years ago
This went so philosophical. 5% on average is worse than 5% monthly, as it may be 500% in one month and then no trading for a long time, does not mean your system works.
+1 Reply
2use david.messmer.7
2 years ago
What is it with 1% a month?
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Vince PRO 2use
2 years ago
I am not sure about any percent per month as my feeling is that you can't know the future nor do you know who is entering the market today or leaving it today with their money. Therefore we can only trade our best probability based on fundamentals, momentum, patterns and systems that we continue to tweak. It is like saying the basketball team must score 1 basket per minute...we have no clue if that will happen. Great players like Michael Jordan did not count their baskets they immersed in the game. He focused on NOW and doing the best NOW and then at the end of the game they would say Michael you got ? baskets and won the game for us. We must be so immersed in the game of trading or investing that we are present...the hope of future results or the fear we reincarnate of past results cause us to live outside the only place we can act which is NOW. Create a great plan and implement it NOW...tweak it NOW and let the future take care of self...this is the HARDEST challenge of human kind
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2use Vince
2 years ago
Wow good example! How does one use that as being an investor though? As for instance i can only buy in hopes of future profit? For me to score a goal it will take a longer time/% as i need something around 10% on my risk to get something out of a trade.
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Vince PRO 2use
2 years ago
start smaller and test your system, once you begin doing well you can ad to it ...keeping risk down ...but markets change so sometimes there will be strings of losses...you can project profits based on good bases say 20-30% out of good cup or cup and handle base patterns on weekly charts t his is past ...and can work but never know so manage trade along the way..taking profits and locking in
+1 Reply
littleriver 2use
2 years ago
I really get what Vince is saying here ........... I can't tell you how many times i turned a winning trade into a loser waiting for my magical target or certain percentage to appear.........all the while the market/my indicators were telling me the trade was turning and I needed to get out. Trading in the NOW is the only way to be a trader. It is what profitable traders do. Sure they have targets and expectations but their eye is always focused on the market NOW and not their hopes and dreams. Only by acting on the market NOW can one hope to be a successful trader.
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chetan.visa
2 years ago
Hi Technician thanks for the Excellent post. I have a question for you. In order to manage risk what should be the trade size in a account of 30K and how many trades we can open at a time??
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timwest PRO
2 years ago
Nice post Luay - I agree on all the points. I'll check out your new website. Congrats! Tim
+2 Reply
timwest PRO
2 years ago
Re: #10. I think it is rational to expect 15 losing trades in a row. I have a great program I wrote to simulate the results of flipping a coin and the various betting strategies, returns and drawdowns associated with it. It is common to see a long streak of losses, to the tune of 20 or more using a 50% profitable system. Most people don't think that is possible in a 50-50 world. If you have a 60% system, the drawdowns can still be quite large. Either way, it is worthy of an entire seminar to go over the results.
+6 Reply
2use timwest
2 years ago
Good to know!
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Technician TOP timwest
2 years ago
Honestly, I would love to know more about that .. If your gonna show that one day. Thanks tim for your precious inputs to the community.
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Sniper_Trading
2 years ago
Great guide to start trading for a newbie ... keep it up !
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Technician TOP Sniper_Trading
2 years ago
:) THX
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CamariEllis PRO
2 years ago
Excellent Commentary!!
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Technician TOP CamariEllis
2 years ago
Its just Kind of you
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thank you for your nice post
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GMOTruths manijeh.kazemi.33
2 years ago
How to exit trades when they go the wrong way, for shorts?

I want to get out with a loss of maybe 0.5%. My broker has a web page for that for OTO, where I can go to set up exit points, but not for shorts. I am using Fidelity. Which broker should I switch to?
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Technician TOP GMOTruths
2 years ago
sorry mate cant help here
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Technician TOP manijeh.kazemi.33
2 years ago
thanks manijeh, always good to hear from you
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JorgeEllena
2 years ago
Hi Technician, as always nice chart!
I want to hear your advise:
I finished my studies of economy and I´m on the trading world since 3 years. I studied a lot about technical analysis and also I have some experience in the stock market (mainly fundamental investments). I believe that I understand something about the variance of trading and also about being capitalized enough to deal with losses. But, since I don´t have $30k of capital to invest and also my job allows me to watch the market frequently, how much capital do you recommend (and also how much to risk on every trade) with a timeframe like yours (I am following your charts!) how many trades do you think is a good sample to have an idea if you are a true winner?
Last, I want to choose a good broker, do you have any suggestion? somewhere to find info about?
Thanks and keep posting!
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Technician TOP JorgeEllena
2 years ago
Hello Jorge. As I mentioned, i prefer a bigger capital, and BTW while the rules may apply to all type of asset classes trading, the 30k capital is intended more to forex trading. I think a minimum of 20k is a good start(of course this is my own view, some ppl may have different preferences according to their strategies)... I look not to risk more then 2 percent at any trade so 2 percent is the maximum.. Regarding the how many trades question, this is a tricky one, and am afraid there is no specific answer for this. Let me try to explain, in my view, you need a lot of trades over a long period for a very important reason, which is "Confidence", confidence comes from believing in what your doing, and believing in what your doing requires results that prove that, and repetitive winning and losing trades that at the end it doesn't matter if you lose even 10 trades in a row, because you know its cyclical and the curve goes up and down in a periodic manner.
+1 Reply
JorgeEllena Technician
2 years ago
ty!
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Captain_Walker PRO Technician
2 years ago
I've tried with £500, £1000, £5000, £10,000 and eventually £30,000. My experience is consistent with yours. Over 10K seems more rewarding if the money management strategy is worked with the same discipline. Under 5K is a risk of easy losses relative to the 1 - 5% club. I've not worked out the math but I'm sure there is mathematics involved in finding the 'sweet spot'. Importantly I say to new traders like me, that there is 'free money' available on demo accounts. IG for example will give £20K (there is a that much in CFD and SB demos that can be transfered between demo accounts). So spreadbetters can actually test it out. If you're blowing up 20K demo accounts that's no bad thing if you learn from mistakes. IG will gladly top up with more demo money (for free). I've blown up about 30K before I saw some light, then I went partially live. Even now I still try some different strategies on demos. I thinks it's all about finding what works for the individual best. As Paul Gedrimas (Youtube is your friend) said, "There is no instant epiphany for success". Short and sweet. We're trying to cage a wild thing - so expect to be bitten. No pain no pleasure! LOL.
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3-5 % a month?

i guess you are a stock trader

because i can get 3-5% a day with only risking 2% for every trade
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Technician TOP richard.siegers.1
2 years ago
mmm
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chetan.visa Technician
2 years ago
Hi Technician thanks for the Excellent post. I have a question for you. In order to manage risk what should be the trade size in a account of 30K and how many trades we can open at a time??
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Technician TOP chetan.visa
2 years ago
The trade size depends on how far the stop loss is.
Example: long eurusd at 1.1200, stop loss at 1.1100 , then ur stop loss is 100pips. so you can only take up-to 0.6lot (6 mini lots) . 6 mini lots x 100 = 600$(2% of 30k).
+1 Reply
chetan.visa Technician
2 years ago
Thank you. And how many trades we should open at a time in a account of 30k?
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Technician TOP chetan.visa
2 years ago
I prefer not to risk more then 15 percent of my capital at one time, but its a personal issue, maybe everyone may have a different comfort zone. But a rule of thumb is to leave some good percentage such in case things go worst case scenario and all your opening trades close on loss, so you have another day to..
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chetan.visa Technician
2 years ago
Thank you very much for your inputs..
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ChimbOt PRO
2 years ago
What a fruitful community , we have
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manumo PRO
2 years ago
Then i must be a magician ; )

https://www.mydigitrade.com/forex-robot/9408
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littleriver
2 years ago
Great post Technician! Thank you for sharing! New to trading myself, I would add be twice as diligent on exiting a trade as entering into one. As clouded in mystery as the entries may be, the exits are doubly so. All fortunes are won or lost on the timing of the exit. Be sure to get paid for one's efforts by focusing the last act. It will be the one you remember.
+1 Reply
childreth43
2 years ago
Great article...much needed read for all traders. Discipline has been my biggest combatant
+1 Reply
zinca13
2 years ago
Make yourself clear, you didn't mention the leverage on the 2nd point. If I have a 30k account and I use 1:10 leverage should that montly 5% profit be 15.000 as from the 300k leverage potential?
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BallerTrader
2 years ago
I agree with everything except for the needing a big account size to start trading. First rule of investing is to invest in yourself. Smart people understand they are playing a highly competitive game and probably won't be winning players at first. So you don't play for money. Keep account size small. Prove yourself to make winning trades. The money may be insignificant, but the feedback and experience will be worth thousands. Not to mentions you are building equity. Then once you can prove that you are worthy of an investment, you add more to your trading account, or naturally let your equity build.
+1 Reply
chetan.visa BallerTrader
2 years ago
Absolutely correct..
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JasperForex PRO
2 years ago
Good eye openers! You can´t really teach it, you can only preach it! ;-)
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TradeMaxGroup
2 years ago
Agree! 3 to 5% return per month is correct and that would roughly make 30 to 50% per return per year.
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moneymaking
2 years ago
Great points made Technician. Reading these points kind of reminds you what you need to keep in mind. It's good to have these types of points in front of you to look at while you are trading. Thanks for sharing, as always!!
+1 Reply
Technician TOP moneymaking
2 years ago
Sure mate, thanks to you.. If we just have the psychology to follow our rules precisely we will definitely be better.. :)
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deadbrokegenius
2 years ago
1. Paul Rotter (aka. euro-flipper).
2. I dont know, 500 usd is ok for a start (not my words, Tom Sosnoff from tastytrade). But only under condition you are not trying to make a living out of trading. Thats what most dont get. Trading for a living is beyond 99% reach. Trading for income on the other hand is much more realistic - at least in the very first years of trading. If you want to pay bills with trading each month in your first years of trading career you are done (at least the chances you are not going to make it are extremly high).
3. Sure, it doesnt work all the time, but your risk control should work all the time.
4. When you enter a trade you do actually forecast, dont you? You expect something to go up or down or stay in range or whatever, your expectations come from your feeling, analyses or whatever you use to guess... but it comes down to the fact that you forecast everytime because you expect. I think its just a nomenclature difference. Not important anyway.
5. Depends whats your money mangment profile is, you can trade for winning streaks doubling positions with small parts of your overall capital. Margin call for the part of your overall capital subacount can be a really good stop loss - because you cant move it :)
6. Subjective, really, whats complicated or when it starts to be to complicated. Sure, make things simple but not too simple. Einstein said it?
7. And what these 3,4 or 5 confirmations do actually create? Not your bias?
8. Subjective, totally, depends on strategy for one, the other thing, trading changed a bit since this statement was actually valid... because of electronic trading and daytrading activity.
9. Well trend setups are not used in choppy market, and vice versa so how to compare them? Trend setups suck in not trending market and range setups suck in trends.
10. Agree. Never give up but dont be stupid, have a day job, dont take other peoples money to trade, do not credit yourself to trade and always ask questions and seek for answers - that is the best method in trading.
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Technician TOP deadbrokegenius
2 years ago
"4. When you enter a trade you do actually forecast, dont you?" .. what i was pointing to is to always try to forecast where the market is headed. Trading is waiting for the right conditions to initiate, not to always forecast.
"7. And what these 3,4 or 5 confirmations do actually create? Not your bias? " Nope, these are technical conditions (you dont use your guts here), you wait for quantifiable technical evidence.
8. For me, you always always have a better position when you take a top=down approach.
9. Through my experience, i found that even in sideways market, going with the trend is a better choice.

I think we don't have a big different view on the other points...
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deadbrokegenius Technician
2 years ago
ad 4. "Right conditions to initiate" are right but from your perspective - there is no objective way of looking at market, isnt it? Now this perspective came from YOUR understanding of the market and in essence it is leading to forecasting. I would love to see "conditions" leading to initiate a trade which are not based on some method of forecasting.
ad 7. I think its inter-relational, your technical analyses and practicing it makes your feelings about the market (guts) - after years of technical analysing your guts tell you different story comparing to when you didnt know TA, dont they? It comes and changes with experience.
ad. 8. Ok I agree, in classic TA I guess its true. Still would love to see the results of a given method, but id guess its true.
ad. 9. Again, really depends on a method, there are really good strategies to trade range either way, and in the same time lot of weak strategies to trade in trend.

I guess, my point is, talking about methods and strategies is really very subjective - especialy if speaking about them in general.
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Technician TOP deadbrokegenius
2 years ago
4. "Right conditions to initiate" are right but from your perspective - there is no objective way of looking at market, isnt it?
Well, technical analysis is the study of making trades objectively. For example, a head and shoulders break of the neckline is a clear(not subjective) technical evidence. This is what i am talking about.
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deadbrokegenius Technician
2 years ago
ok, i understand what you mean now.
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Technician TOP deadbrokegenius
2 years ago
I appreciate your input
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Technician TOP deadbrokegenius
2 years ago
You know what, you reminded me of another key point that i should add to this list. which is : "Develop a trading approach that Minimizes subjectivity as much as a possible"
+1 Reply
deadbrokegenius
2 years ago
One more thing ad number 1.
It is absolutely possible to get rich quick but by the time you are actually able and ready to do this you dont need to get rich quick because you have already so much money that 1% you make every month with minimal risk is more you need. That is why you dont see great traders doing 100% a month, not because its not possible, but because its not necessary.
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ascension PRO deadbrokegenius
2 years ago
I agree. Great comment.
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chetan.visa deadbrokegenius
2 years ago
I agree. Well said..
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ascension PRO
2 years ago
Technician, I’m sure your brain believes your rules and your intent only is to help out people, so I admire that. However, these popular rules should not stand as true. It’s your vision and reality.

I’ve been studying forex for 5 years 12-16 hours a day before going live.
The only 2 rules should be:

Rule #1: This is not a lottery, it’s a language. Study it, it takes time to read any new language.
Rule #2: Find your trading style. (What’s your personality?)



Allow me to comment your rule #1 & 2:
It’s FALSE for many people. Many traders make well over 3-5% / month. A friend started trading a year ago with $3,000 and is now at $300,000 and growing steadily. His target and stop is at 5% per trade. One trade a day that compounds. It is possible to double an account monthly and many don’t post about it because then they get accused of lying. 5%/month has become a religion.

P.S. A good friend of mine became a billionaire with the bitcoin. He bought a ton at $2 and sold at $1000. He’s not even 30.

P.P.S. Years ago, I used to follow a forex teacher every week, until he said one day that he was making 5% /month. That day he lost most of his subscribers.

Your rule #3. True & False. Setting your target bigger than your risk is only one way of trading. It’s a popular way but it’s NOT a rule. And the chances of hitting 100pips in profit versus a 50-pip stop is about 33% because the target is twice as far as the stop. Some markets turn all the time, such as the EURUSD. Instead, it’s way safer to target the same # of pips but to play way higher odds like line breakouts.

Your rule #4: True & False.
Every tick/pip of the price goes where it goes every minute for very specific reasons. It’s a language and it’s extremely precise. There’s no randomness in the market. Even on the M1. (I can prove it but won’t reveal my knowledge. I worked too hard) Most people think the market is random but in reality the truth is that they haven’t learned to read the market. Most traders only read parts of the language, simple structure such as support/resistance, price action, etc.

If I move to Japan, will I play my rules(survive at first and only repeat the same habits daily; same restaurant, same subway, … (trading the same patterns)) or go way beyond and learn to read Japanese, learn the psychology of the population, their habits, their fears, goals, etc? It’s a choice. So your rule is like saying: Stick to the patterns you know. It’s only a good advice for beginners/travellers. Not a rule.

Your rule #5:
Stops are not essential. It depends on your strategy. For example, instead of closing a position, if one believes the market will go higher, one can open a small buy, and as the market goes against him, buy again lower to get a better average price. People simply get caught in their only unique opened position because of a way too large lot size, so they exit most often prematurely.

Or another strategy is to open an hedge while the market reverses and to close the hedge once back at $0. I use hedges as an insurance. So forex becomes like trading options, without time limits. (I’m not in USA so I can hedge, and anyway there’s a well known broker that allows us residents to hedge and has no fifo rule).

There are other strategies as well to avoid using stops. So, anything that talks about stops are not rules, they are suggestions.

Your rule #6:
Analysis paralysis. I tend to agree on that one. But knowing what to do should only require a quick look. But that requires experience of course. I remember my first 3 years. I had signs telling me bullish and other signs bearish. Only rule here should be: Don’t trade live until you know what you’re doing.

Your rule #7:
I tend to agree on that one.

Your rule #8: I totally agree. So wait to open a trade at those lines. And reverse position when price crosses that solid line. (Open Buy when price crosses over. And if price crosses under the line, close buy and open sell.) Trading gets as simple as that. Target the next solid line.

Your rule #9:
True, but the real trend direction is on which timeframe? That’s what nobody tells right? Which direction is the trend if the M15 is trending up and the H1 is trending down while the D1 is trending up and the Weekly is downward? I know the answer but it took me years to see it. And nobody tells, all they say is: The trend is your friend. First thing that happens, as soon as you open a position, the trade goes against you, then you look at another timeframe and it was going opposite way and you hit yourself. In reality: All bad teachers, traders get bad or cloudy advices and believe in other people rules without understanding how that teacher thinks/trades globally. There are a million ways of trading.

Your rule #10: I agree on: Don’t give up.
But I disagree on calling ‘normal’ 10 losses in a row. It’s a USUAL thing in an industry were people don’t obtain/receive the proper education or are not committed enough, but it certainly should not be considered normal.
Losing more than 2-3 trades in a row is ok if the losses are small. But again it depends of the strategy, so it’s not a rule. Example: "After a break out or a flag pattern if the price comes back under the support line there isn’t enough volume at that moment, close the trade 5 pips under the support line for a tiny loss. »
If a trader gets 10 big losses in a row, to me it means he might just be throwing dices or flipping a coin, while believing he’s a professional.


AND GUYS TRADING IS EASY: WHY ALL THOSE DARK RULES?
Anyone can make a killing using a simple moving average (a 200EMA on a renko chart for example), flipping its position when the price crosses it.

Or just wait for a bounce on a major support/resistance and flip (close & reverse) position on a break of the line.

P.S. My intents here were only tell people: "Hey! TRADE and don't settle down to any idea or rules that goes against your goals. You want to be a millionaire? Don't think like the mass. That's how I became a multi-millionaire in my other businesses. I love to dream and hate dream stealers. It remembers my parents who told me 20 years ago, for my own good because they love me, to get a job."

Stephan
-4 Reply
chetan.visa ascension
2 years ago
Thank you Stephan for such a valuable information...
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Technician TOP ascension
2 years ago
Buddy, with all my respect, what you're saying is a disaster for new traders.. There is a lot to comment on, so i will be back to you later..
+1 Reply
ascension PRO Technician
2 years ago
I would not have been interested in trading if I would have believed that 5% /month is all I could pull from the market.

Too many people will quit before even starting.
It’s killing the dream from the get go because most people start trading with less than $1000. Because then the person won’t put the energy to learn thinking he’ll never make it. Who would trade daily for an entire year for $500 in profits?

Instead I will I’ll tell him that everyone will want to throw money at him once he can double an account annually. And even banks will inject a fortune if he gets to double an account monthly. So who cares about having to be well capitalized?

All I’m saying is that there’s a way to say things, especially to people starting out.

I understand what you have in mind: Trying to protect people by counter balancing the zillions of websites saying that trading can make them rich overnight by clicking on a button or using xyz product they are selling.

But instead, why not say this (Like a father to a child starting to play ball dreaming of becoming a star player.)

"It's possible to become rich, some traders are among the wealthiest people on earth. But it will take time. Trading is a career, not a casino table. Until you master it, play safe, small or in demo. Until you get good, try to simply survive the game long enough. Start by aiming for a small increase daily. If you blow your account the real danger is to get discouraged and quit. Avoid at all cost telling your brain that you can't make it. That's the most precious thing of all. So go easy on yourself. Trow one ball after another, until you get good. And learn to love this thing, it's the best profession on earth. We all are passionate about it and see charts in our soup."

-1 Reply
Technician TOP ascension
2 years ago
We have a clear conflict in point of views. I surly wouldn't tell ppl that they can make such amounts, because it's not realistic and if happened its probably not on a consistent basis(My opinion). Do you want to hear the real discouraging info? I have worked for a brokerage firm for a years, and there were no single account making the amounts your talking about, or even double-digit gains CONSISTENTLY. So i advise through what information i have and my experience, not to let ppl dream of being millionaires in no time. This is not true and not there. I didn't say you cant become rich trading, and i didn't say that 5 percent is the one and only number, it could go above that but how much???...

So this is the base case scenario, if someone is a STAR and SUPER talented amid the normal ppl, he could find his way to exceptional results, without me or anyone giving him advise about what he can or cant make per month. (Great, exceptional ppl do not take things for granted)
+2 Reply
ascension PRO Technician
2 years ago
The last time I had an alarm clock waking me up was to take the plane to this island close to Cancun 3 months ago. So, about brokerage firms, they are filled with people that have to get up every morning with an annoying alarm clock, that have to drive through traffic for an hour, that have to sit in front of a pc all day, surrounded by all kinds of people they didn't choose to be all day with. And more than often stressed all day.

Why would someone go to work and live such a life if he knows how to trade great numbers? So of course that's not where you'll find high rollers.
They leave when they pull out great numbers.

Brokerage firms consist of people having a job. A terrible play field to take advice and numbers from, if you ask me.

As soon as someone becomes great, he leaves to live his life; stay with his wife at home, buy a yacht, travel, live life. Brokerage firms are not even encouraging big numbers and stars. They do all they can to keep their traders or they would be out of business. All they want is the broker to earn just enough to stay.

Firms don't have the same target. They concentrate on acquiring accounts by showing a STABLE balance sheet. A small consistent growth, is what they are looking to achieve. They hire traders who can achieve that precise goal.

It's not the same mindset as people reading this post.
Plus, we're years later. With all the info available online, and this GREAT site (I LOVE tradingview and it's community) people share and obtain new ideas all the time. They don't get stuck trading the same way for years like the dinosaurs used to.

That friend I told you about who turned $3000 into $300,000 last year, well, he's not a star or talented at all. He learned how to trade in about 1 hour. And he knows almost nothing. He simply follows some great traders on stocktwits. One trade a day, trading a line breakout, risking 5% a trade.

And yes it's possible and doable for a vast quantity of people to double accounts quickly and consistently, with the right teachers, but most teachers online are terrible. I know, I've read thousands of forum/group pages, and bought many books, courses, tools, etc throughout my learning journey.

Trading is just like any business. It's all about acquiring something at the best possible price and then getting rid of it for a profit.

But people just become crazy in trading. It must be the ease of executing of buying & selling. Normally, in other spheres business people have to search for a longer time the right product at the right price, and then try to sell their stuff, waiting for a customer, etc.

People over trade.

Damn, take 10 charts, trade in the longer term trend direction, when all the higher timeframes all line up, open and wait. That's all. Play golf. Let the market work for you while you aren't. Why over do it by trading like a freak all day on low timeframes?

Want me to send you a picture of the beach I'm at tomorrow morning? Sounds arrogant but it makes mad when I read comments about scarcity from a well respected person that people take advice from.

I made $30,000 lately with a small $75,000 account just for waiting for the USDCAD to explode. It was all over the news for a long time in Canada that it would reach $1.25. Trading currencies is simple, it's even on TV and on radio. I heard about it while listening to a man talking about why the price of food would climb soon (because the value of our dollar was about to drop). Geez, a guy managing grocery stores knew. He's not even a trader.

The explosion of the USDJPY was also predictable. Japan is printing money day and night to depreciate it.

The bitcoin is even easier to predict. I've predicted EVERY major turn of the bitcoin for the past months (I can prove it).

For the EURUSD, when it was at 1.35, the ECB announced the price had to drop to 1.25. So the price started falling that very day like a rock, until guess what, well till it reached precisely 1.25. We all knew. There was a fortune to be made easily for months knowing that target would be reached. And reaching 1.10 was logical with all that's going on with Greece, and many countries in that zone. Their negative interest rate shows their intent. It will keep dropping. Europe needs to boost their economy, depreciation of the Euro is a way they chose and the ECB told everyone wanting to hear it.

Why would anyone buy the Eurusd unless they daytrade(only holding for a few hours)?

And in regard of charts, I already gave great simple advice on how to trade. How can anyone fail or only make a small % monthly if they apply such simple rules?

Yes it's possible to easily double an account monthly, and you're not seeing it because it's your reality that blinds you. Plus, you're surrounding yourself with beginners failing so your brain thinks it's true.

Plus, so many people online think your way. Your '10 things to consider', they are all very popular myths that people believe. That's what annoys me. It's not you at all. This time was just the 100th time I've read it and it was the last drop I could take. I had to say that it's all bullshit.

I have no problem seeing someone gambling not succeeding because it's a choice, a mindset. But what I hate is to see committed people receive bad advice, especially such old adage coming from Mathusalem. So I had to speak this time. It's nothing personal. It's just timing. It happens to be you, I'm sorry.

Such stupid sentences make people quit. It's hurting more than helping.

If you don't believe that it's possible to become rich for a lot of people, just don't talk about the topic. It's not helping. Stop propagating the old low return. It's ok that you don't know how and that you don't personally believe it's possible to double an account monthly or yearly.

I believe that the brain will produce what you made it believe is true. Tell people they can do it and more and more will.
-1 Reply
Technician TOP ascension
2 years ago
With all my respect to your opinion, and stories about making millions and spending life in yachts. Your irrelevant. I was saying that i was working in brokerage firm, i was able to have information about how ppl accounts are doing. Your answer was totally irrelevant. Even making money for a couple of years in trading, that doesn't make you successful, you are probably lucky. Anyhow, I think ppl are smart enough to differentiate between imaginary stories that have no proof of existence and common sense.
+1 Reply
Technician TOP Technician
2 years ago
If you have something to share, go on and post it to trading view, show us your skills and your profits. Otherwise please do not add to this thread anymore, because this is misleading.. Don't tell us that you don't want to share your valuable knowledge that you acquired through effort.
+2 Reply
ascension PRO Technician
2 years ago
I already have shared a lot of valuable information about trading. Re-read me.
And you know that I know what I'm talking about when it comes to trading.

My goal was only to tell people to go for it. You are telling them to be prudent, it's fine.

--
Lets end this by saying we have opposed point of vues (otherwise this trend won't ever end. After all who cares. I wonder if anyone even reads this low on a long page. Newer posts should be at the top of the page instead.)
-1 Reply
ascension PRO Technician
2 years ago
And the last time I showed my trading skills to someone, I got paid $30,000 and it was a nothing comparing to the money that person will be making though the next years, now that he knows how to trade successfully.

You wrote: "Imaginary stories? I'm being lucky? A person isn't successful even if he's making money for years?"

humm. Ok this thread is over. I'm done. It's like talking to a bird.

See, that's why people who immensely succeed in this industry never take time to write.
-1 Reply
ascension PRO ascension
2 years ago
I meant: It's like a lion talking to a bird. Too different realities, both true for each animal.
-1 Reply
Technician TOP ascension
2 years ago
Man, what you're doing is just talking, which is not useful at all. Either post trades, or stop. I STRONGLY ADVISE PEOPLE TO AVOID ANYONE PROMISES THEM OF SUCH RETURNS, CAUSE ITS PROBABLY AS SCAM.
+1 Reply
ascension PRO Technician
2 years ago
Did you see me promote or promise anything? The only people I've ever revealed my secrets to are my very close friends, family and a businessman I see all the time in my town. And they all signed a non-disclosure agreement.

I have nothing to sell. I trade.

Through the years, I've followed a few GREAT traders/teachers. It's true they are hard to find. Search. Study like I have.

I'm a swing trader aiming for approx 1000 pips /month in profit, which doubles an account in about a month. For example, on a $10,000 account, I like to be at $10/pip. I risk about 20pips per trade, so $200/trade. It's a 2% risk per trade. I usually make 200 to 300 pips per trade($1000 to $3000) which is my goal per week. On average 1 to 2 trades a week. That's approx a 25% account increase a week.

I didn't only talk, I posted great trading advices. I said too much in fact.

-1 Reply
ascension PRO ascension
2 years ago
Typo: ($2000 to $3000)...

Look Technician, we had a bad start. I'm sorry we had this debate. It was nothing against you. Those rules or 'points to consider' are not your creation. Don't take it personally. I'm criticizing the points, not you. Cheers and wish you all the best.
-1 Reply