Can you maintain success?

[NVP]

Clear, level thinking.

Trends, swing highs, swing lows, support and resistance don't go out of fashion. Trend-following won't stop working because people realise it has been working. A swing low in an uptrend means the same now as it would have to Jesse Livermore. It is just as possible to make a good profit out of 10 10-day with-trend trades as it is out of 100 intra-day trades over the same 10 days. In fact, it takes a damn sight less work.

Tom

Are you sure buddy ?......on a standard % of capital per trade I can surely turnover a lot more money on 100 trades than 10 trades......??


:smart:

 

[tomorton]

Tom

Are you sure buddy ?......on a standard % of capital per trade I can surely turnover a lot more money on 100 trades than 10 trades......??


:smart:

I don't doubt it. But the object isn't to choose the approach that makes the most money, its to make enough to justify the time involved with only commensurate risk. A good profit is what I said, not the most profit.

As an aside, daytrading only seems less risky in the way that walking a tightrope seems not risky if you are a tightrope walker. But the statistics show that most traders fail, and most of them are daytraders. Actually, many sources use trader and daytrader interchangeably. Many novices think trader just means daytrader: they don't survive long enough to explore other meanings and implications. And I can guarantee all of the traders/daytraders who were wiped out thought it was safer not to hold overnight and to only take small trades.

 

[NVP]

I don't doubt it. But the object isn't to choose the approach that makes the most money, its to make enough to justify the time involved with only commensurate risk. A good profit is what I said, not the most profit.

As an aside, daytrading only seems less risky in the way that walking a tightrope seems not risky if you are a tightrope walker. But the statistics show that most traders fail, and most of them are daytraders. Actually, many sources use trader and daytrader interchangeably. Many novices think trader just means daytrader: they don't survive long enough to explore other meanings and implications. And I can guarantee all of the traders/daytraders who were wiped out thought it was safer not to hold overnight and to only take small trades.

fair points ..........agreed

Scalping is one of the scariest areas to walk if you are a trader..............not for beginners

I forget the transition challenges a few years back when I finally committed to it from higher TF trading !! :whistling

N

 

[zaysev36]

fair points ..........agreed

Scalping is one of the scariest areas to walk if you are a trader..............not for beginners

I forget the transition challenges a few years back when I finally committed to it from higher TF trading !! :whistling

N

Here you say scalping is difficult, somewhere else I've read that long-term investment is the most difficult... I would really like to see a statistics of how successful different trading strategies turn up to be. Sad such project is quite impossible to accomplish.

 

[NickBk]

fair points ..........agreed

Scalping is one of the scariest areas to walk if you are a trader..............not for beginners

I forget the transition challenges a few years back when I finally committed to it from higher TF trading !! :whistling

N

NVP I don't really agree with that point.

I think to clarify it you need to add with excess leverage.

Any trading is 'scary' with excess leverage and scalping in the sense you refer to is only more so as it usually comes with maxed out leverage. Obviously a longer term trader can't go all in and head off for a couple of weeks.

There is no direct comparison. The returns also are not comparable for the very same reasons.

 

[zaysev36]

I think to clarify it you need to add with excess leverage.

Any trading is 'scary' with excess leverage and scalping in the sense you refer to is only more so as it usually comes with maxed out leverage.

Are you trying to say that without leverage one will not be afraid to lose money? Personally, I would be as scared to lose my million as someone else's.

 

[NickBk]

Are you trying to say that without leverage one will not be afraid to lose money? Personally, I would be as scared to lose my million as someone else's.

Well we know that scalping is hand and hand with over leveraged trades, hence the many people who bust out.

 

[NVP]

NVP I don't really agree with that point.

I think to clarify it you need to add with excess leverage.

Any trading is 'scary' with excess leverage and scalping in the sense you refer to is only more so as it usually comes with maxed out leverage. Obviously a longer term trader can't go all in and head off for a couple of weeks.

There is no direct comparison. The returns also are not comparable for the very same reasons.

xs leverage with poor MM will kill you in whatever form of trading you chose .....................

for me the scary part of Scalping is the speed of the moves and how little time you get to select lead pairs / trades and then get into trigger zone .........

fast and furious.............anything 5min upwards is like trading in slow motion for me

N

 

[NVP]

Well we know that scalping is hand and hand with over leveraged trades, hence the many people who bust out.

can you expand on that comment Nick ?

 

[NickBk]

can you expand on that comment Nick ?

Not really, for someone trading so long I am sure you know already exactly what I mean.

 

[zaysev36]

Not really, for someone trading so long I am sure you know already exactly what I mean.

Could you expand it for those who don't have that much trading experience? I, for one, surely didn't get it

 

[NickBk]

Could you expand it for those who don't have that much trading experience? I, for one, surely didn't get it

What is your trading experience?

Do you trade real money, how much is in your account and how often do you trade?

 

[zaysev36]

What is your trading experience?

Do you trade real money, how much is in your account and how often do you trade?

No, I don't have real experience yet. I'm trying myself in demo trading. So far am able to make about $20-$40 a day more or less consistently.

 

[NickBk]

I think demo is a waste of time. Everyone can trade without fear and emotion, when it is real it changes a lot and many people cant handle it.

Your $20 to $40 a day means nothing without account size and number of trades, though I suspect your having me on but I won't bite.

 

[Pat494]

I think a demo account is great intro to trading for a newbie. Not so hard to remember its just a demo and not go starkers barmy.
OK a bit of a big step to real money but not so very hard.

 

[Dinos]

If you've been trading profitably for over a year, lets say with with strict discipline (good entry, exits, money management), is it possible for those people to remain forever profitable as long as they maintain the same discipline? I hear some people say the markets change that leads to someone unable to maintain profitability over the long run. But as far as I can see, certain markets have the same patterns repeating themselves, even over decades. Yes they do go through different phases, bull and bear markets, but a good trader will be able to make money whatever the cycle.

My belief is this. If someone is profitable over a two year period then surely he's cracked it.

The markets do just 3 things IMHO, they go up, they go sideways and they go down, that's it, no need to over complicate it. The key to continued success is consistency in everything you do, if your system works, it won't suddenly stop working. Follow your rules, for entry, management and exit, keep records to analyse every trade, it may well be, the amount of points/pips you gain changes higher or lower than planned or expected, but any finely tuned system should enable you to identify that and adapt to still profit consistently long term. All of course IMHO.

 

[zaysev36]

The markets do just 3 things IMHO, they go up, they go sideways and they go down, that's it, no need to over complicate it. The key to continued success is consistency in everything you do, if your system works, it won't suddenly stop working. Follow your rules, for entry, management and exit, keep records to analyse every trade, it may well be, the amount of points/pips you gain changes higher or lower than planned or expected, but any finely tuned system should enable you to identify that and adapt to still profit consistently long term. All of course IMHO.

So true. I feel like most theorists which are overcomplicating markets' behavior must be facing some difficulties due to their own strategy's limitations, not the market.

 

[thunderboy]

Yeah, if you learn how to analyze the market situation properly and accurately then you could maintain your success.

 

[zaysev36]

Easy to explain, hard to predict that is.

 

[mlawson71]

Maintaining success is not a result of any one thing, unfortunately, but a complex set of conditions that a trader must meet. Education, patience, large enough account, good risk and money management and a dash of pure luck, all this and more is necessary to be successful on a long-term basis.