HELP! please

I have been trading forex for a year now but still I have not been making any profits, I have read books, that has not worked, I have bought systems and got screwed. I am actually running out of money. So I hope to find someone on here that would help me achieve consistent profits.

thanks

Have you taken the time to step back and look at what you're doing? Is forex the right market? Are you operating is the best timeframe for you? Did you just dive right in based on things you read, or did you think through what you wanted to do?

just1wade said:

I have been trading forex for a year now but still I have not been making any profits, I have read books, that has not worked, I have bought systems and got screwed. I am actually running out of money. So I hope to find someone on here that would help me achieve consistent profits.

thanks

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I'm sure a few of us could give you some pointers, but it's almost impossible since you've given very little information.

Could you post a chart(s) of one unsuccessful trade showing your reason(s) for:
entry;
stop loss; and
take profit level(s).

just1wade said:

I have been trading forex for a year now but still I have not been making any profits, I have read books, that has not worked, I have bought systems and got screwed. I am actually running out of money. So I hope to find someone on here that would help me achieve consistent profits.

thanks

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This forum is full of info showing how one should trade but sadly nobody here or any mechanical system I have seen actually can define the way to produce consistent profits.

There are endless debates here about nature and nurture, thinking correctly, using indicators, not using indicators, support and resistance, elliot waves, the moon, etc

The Stages of a Trader is worth a read.
http://www.trade2win.com/boards/forex-first-steps/15433-learning-cycle-newbie-forex-trader.html

If I could distill what turned me from a consistent loser into a consistent winner then I would package it up and sell it - but I can't.

There is no magic formula or set of rules/instructions which one can learn from reading a book or by browsing this forum. Why? Because every trade is different, and because every event in the market is a unique moment in time with its own unique set of circumstances driven by human emotions, yours and all the other traders in the market.

But do not despair, because if I can do it (and I'm no whizzkid) then you can.

I would consider these pointers.

First thing to do is preserve your account, because without that you cannot participate.
Trade mini lots and concentrate on pips.

Imagine you are starting from scratch and know nothing - try and erase all previous 'knowledge' of trading.

Take one currency pair (I suggest EUR/USD) and watch a naked bar chart (not candles)
with the price displayed in the top middle of the screen. I use an MT4 indicator called DailyData.

Display a H4 chart and see where the key levels are for each day. Remembering those levels switch to a H1 chart, then an M30 and M15 to see what is happening within each period. Do not draw anything on the chart or use any indicators, practice observation and memory of price levels.

Before each trading day check out any forth coming news releases on the forexfactory calendar. If there is a 'red' announcement at 1.30pm GMT then take the morning off, chances are you will chopped about or caught in the doldrums.

After a period of passive observation you may want to enter a trade. Try a mini lot for 10p a point.

What is important is observing what happens around your trade. I say 'your' because it is personal, and chances are that even with 10p a point it will have emotional meaning for you. The only thing I would strongly suggest is that you always enter a stop and target with your order, try to place them at strategic levels where the risk and reward are in your favour.

The essence of trading consistently in my experience is to develop a feel for the market and become part of it

The more rubbish you have displayed on your screens the less you are able to do this.

Trade like this for a couple of weeks then PM me for the next step if you so wish.

Happy trading.

just1wade said:

I have been trading forex for a year now but still I have not been making any profits, I have read books, that has not worked, I have bought systems and got screwed. I am actually running out of money. So I hope to find someone on here that would help me achieve consistent profits.

thanks

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This is very common - after all, we hear that 95% fail.

The reason is probably not because you haven't found the right system or read the right book. More likely it's because we all get out of trading what we subconsciously want. The knee-jerk reaction to this is to assume that you know what you want but if you did, it wouldn't be SUB conscious, would it?

Somebody said on here yesterday that there are no succesful and unsuccesful systems, only successful and unsuccessful traders. You have to address your belief system, you have to identify what screws up your trades, what rules you consistently break.

I was brought up to doubt whether I could ever be rich. I tend to close trades early and second guess whether they will be successful - so I find it hard to take the next trade after a loss. When you get trapped in this frame of mind it seems like you are unlucky and pick the losing trades and refuse the winners!

Bottom line, it's probably not your trading rules but your emotions and psyche that's at fault. Maybe stop trading and work on those for a while - difficult and a whole new topic.

just1wade,

Are you expecting someone else to lose money to you? Why? Who that may be?

Do you know that forex is a zero-sum game?

Mati

just1wade said:

I have been trading forex for a year now but still I have not been making any profits, I have read books, that has not worked, I have bought systems and got screwed. I am actually running out of money. So I hope to find someone on here that would help me achieve consistent profits.

thanks

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Rols makes some absolutely excellent points. An edge is what you need to make consistent profits and an edge is not something that can be found in a book or in a forum. An edge is a sort of abstract concept that really cannot be explained or transferred, it is the result of constant study and practice. But this is not enough, it is also having your own realisations and testing your correctness in the market. There is a big difference between 'looking' and 'seeing'. Those who spend hours and hours looking at charts etc will never progress in their trading unless they see! Do you see?

Another thing that I think is a good idea is a good old fashioned notebook and pencil. Keeping notes about all the trades you make so that you have a record of your progress is beneficial. In some way it helps prevent overtrading or reckless trading as you have to explain your actions for each and every trade.

Good Luck.

Thanks

Thank you all for the advice, I have stopped trading and started to look at my charts and I realised my entry and exit was completely wrong. So now I'm on the hunt for a way to correct that.

You guys made great points because I was and do LOOK for an entry but not SEE it. I also realised that I do not follow the behaviour of a currency pair and this is difficult for me to understand.

So to be completely honest I know what I must change but I just don't know how.

wade

matifx said:

just1wade,

Are you expecting someone else to lose money to you? Why? Who that may be?

Do you know that forex is a zero-sum game?

Mati

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Why do you say it is a zero-sum game?

gamma said:

Why do you say it is a zero-sum game?

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Any trading is a minus-sum game. Until you get in profit.

The zero-sum quote came from a book, and must be wrong. No?

options said:

Any trading is a minus-sum game. Until you get in profit.

The zero-sum quote came from a book, and must be wrong. No?

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Thanks for that Options.
I thought he was referring to the whole of the forex market as a zero sum game.
as he says

Are you expecting someone else to lose money to you? Why? Who that may be?

Do you know that forex is a zero-sum game?

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On a personal level yes I agree with the quote

Any trading is a minus-sum game. Until you get in profit

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But the forex market itself is not a zero sum game
This statement is definately not true!

Are you expecting someone else to lose money to you? Why? Who that may be?

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someone else does not have to lose for you to gain.

gamma said:

someone else does not have to lose for you to gain.

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Interesting - I can't think of any examples where I win and no one else loses...

This would suggest that money is created when you win - whereas I always thought trading was a transferance of wealth.

Only at the point of creating the initial physical asset (e.g. digging up some gold) would wealth actually be created.

I'm willing to be proven wrong on that one.

Just1wade buddy,

A: trading is not rocket science.

B: If you can't handle losing you're in the wrong job, and, for that matter, wrong life.

C: you can make more money than pretty much anybody else on this planet inclduing most traders if on average you are wrong 70% of the time, but have larger winners than losers to the tune of, on average, 3:1.

D: OR you can turn that upside down with lots more winners than losers, but where winners will on average be smaller than losers, depends on your preference and psychological needs.

E: Trading is NOT about fulfilling a desire to be right, its about one thing only, making money.

F: This BB is full of net profitable traders posting threads showing exactly how they make money, and for some of them its bucket loads at that, with simple, straightforward and robust methods, be it trader_dante, Grey1, Captain Currency, Mr.Charts, NewtronBomb, etc etc.

Now, go back and reread point A, and then go dig up those threads, and then just get a move and do it !

Good luck !

Hoggums said:

Interesting - I can't think of any examples where I win and no one else loses...

This would suggest that money is created when you win - whereas I always thought trading was a transferance of wealth.

Only at the point of creating the initial physical asset (e.g. digging up some gold) would wealth actually be created.

I'm willing to be proven wrong on that one.

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I can think of a few good examples where you win and nobody loses.

I am sure the value of your property has increased over the years(Please don't bring up the last couple of years) lol.
the person you bought the property from did not lose out.he probably made a profit as well.
my girlfriend's gold jewellery has increased in value, as above at no loss to anyone else.

At the retail level the sum zero game probably does not apply at all
Let me quote my fellow trader with his permission.

Paul71
Besides, retail money in the game of zero sum doesn't add up to a fly around a buffalos asre

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.

Without getting to technical I suppose what we are talking about is

opportunity cost

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I might exchange a few dollars for your pounds, the value of dollar has gone up I have simply lost the opportunity of getting better value for my dollars by not waiting a bit longer. You on the other hand have gained
the only loss and gain here s one of opportunity

Let me add a few quotes from another thread to ponder.

Trader333 said:

Any zero sum activity is based on the view that if someone has more than they started with then someone else or several others engaged in the same activity must have either a liability or a loss. This does not apply to buying and selling of stocks as you can buy at one price and sell at a profit without that sale incurring a new liability or loss to those who have become the new owners.

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Paul71; Not all money on the markets is intended as investment said:

Hotch said:

Isn't it more about opportunity cost?

If somebody sells a stock, somebody else has to buy it, now from there, either the stock will go up or down.

If it goes up, then the seller has missed out the opportunity to make more, and if it goes down obviously the buyer has missed the opportunity to buy at a lower price.

I agree it's not zero sum, but i believe the general argument about us all being against each other is more to do with opportunity cost.

Probably wrong though.

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gamma said:

I can think of a few good examples where you win and nobody loses.

I am sure the value of your property has increased over the years(Please don't bring up the last couple of years) lol.
the person you bought the property from did not lose out.he probably made a profit as well.
my girlfriend's gold jewellery has increased in value, as above at no loss to anyone else.

At the retail level the sum zero game probably does not apply at all
Let me quote my fellow trader with his permission.
.

Without getting to technical I suppose what we are talking about is
I might exchange a few dollars for your pounds, the value of dollar has gone up I have simply lost the opportunity of getting better value for my dollars by not waiting a bit longer. You on the other hand have gained
the only loss and gain here s one of opportunity

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IMO your first point isn't really a relevant example, the original quote said that forex is a zero-sum game, not the housing market, or jewellery.

The second point involving dollar/pound i think is effectively showing it's a zero-sum game. You've bought a pound for 2 dollars, it subsequently dropped in value, so now you can only buy back 1.8 of your dollars - you've lost 20 cents worth of buying power. The person who sold you the pound can now use his 2 dollars to buy back more sterling than he originally sold, 20 cents worth of sterling to be exact. Looking at it VERY simplistically you can see that you've lost 20 cents and the other trader has gained 20 cents (or 20 cents worth of sterling!).

mb325 said:

IMO your first point isn't really a relevant example, the original quote said that forex is a zero-sum game, not the housing market, or jewellery.

The second point involving dollar/pound i think is effectively showing it's a zero-sum game. You've bought a pound for 2 dollars, it subsequently dropped in value, so now you can only buy back 1.8 of your dollars - you've lost 20 cents worth of buying power. The person who sold you the pound can now use his 2 dollars to buy back more sterling than he originally sold, 20 cents worth of sterling to be exact. Looking at it VERY simplistically you can see that you've lost 20 cents and the other trader has gained 20 cents (or 20 cents worth of sterling!).

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The value of the asset has risen as a whole housing and gold are mere examples, it could be wheat or oil.or even Kruger rands

The second point ah !yes what I did not tell you was My dollar was bought a long time back at a very favorable rate with some swiss francs
So again its not actual value but opportunity cost
At retail level it is definitely not a sum zero game I refer you to the quotes from my earlier post.

And who says I want my dollar back I have moved on to silver.

The 'thing' in question is forex, not housing or gold, using them to disprove the zero sum theory is a flawed argument imo.

I completely understand where you're coming from in terms of seeing it as opportunity cost, but in the long term, for whatever reason, you're going to stop trading and all your money will be converted to a single currency. At this point there is no opportunity cost, just a profit or a loss, taken from or given to other traders at some point along the way.

mb325 said:

The 'thing' in question is forex, not housing or gold, using them to disprove the zero sum theory is a flawed argument imo.

I completely understand where you're coming from in terms of seeing it as opportunity cost, but in the long term, for whatever reason, you're going to stop trading and all your money will be converted to a single currency. At this point there is no opportunity cost, just a profit or a loss, taken from or given to other traders at some point along the way.

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I do not dispute the above facts but none the less the value of my assets would have increased. This increase is not necessarily at due to a loss to another trader
The buyers of my sale might even gain.The opportunity cost does not stop it is transferred
resulting in profits or loss due to the market inertia.
You and me as traders do not actually add intrinsic value to an asset we simply hope we are catching the train going the right way.

I think we're just gonna have to agree to disagree As long as we're making money who gives a toss!

mb325 said:

I think we're just gonna have to agree to disagree As long as we're making money who gives a toss!

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My very own sentiments!
Did enjoy the debate, Arguments like this get the old grey matter working and everyone comes away with something to think about.It also helps pass the time in this solitary profession of ours.