5 Things I have learned in 5 years of trading!

sebking1986

Well-known member
288 87
When I got to know about forex trading, I had no idea that it would be this difficult. And that’s what I would like to tell all the beginners out there too. No matter what anyone tells you, it is difficult to make money in the forex market and you better bear that in mind before it’s too late. Make your basics strong so that you know what is achievable and can set your trading goals accordingly.
I think trading as a concept is relatively easy but what makes it very hard is the human element. We are greedy by nature and are scared of loss. On top of that we are emotional. People assume they can rock up to the markets with no education or experience and treat it like their own personal ATM.

A lot of this is driven by social media though which preys on those in often deperate positions. If you're broke and stuggling and you see all these people saying following me and this method and you WILL make money then people follow. It's sexy and appealing and sounds like instant gratification. Someone saying, well treat it like learning how to become a hotshot surgeon which will take years of learning and practice simply doesn't have the same appeal. Despite being 100% the more accurate representation.
 

No_Fear

Newbie
6 4
As a kid I always wondered why 90% of traders lose. I often look at the indexes and thought to myself, almost all of them are trending upwards. You simply have to put in money and wait, it's so simple.

But as I grew older, I realized people are impatient and full of emotions and most traders are just gamblers overtrading and on huge margin that's why it's easy to lose.

To win, you have to keep it simple. Don't make your system too convulated (unless maybe you are a genius and it's simple to you). Don't kill yourself by betting too big on a single horse. The longer you survive in the market the chances are you will be profitable at some point.
 

sebking1986

Well-known member
288 87
Great post. I too agree that when we compare ourselves with other traders, we create psychological hindrance in our path. We never know how hard the other person might be trying or how many failures he has gone through before reaching the level where we are seeing him. Our biggest competition is with no one other than ourselves. One can only go forward when he decides to beat his previous performance and try to do a little better every day.
I think this is generally born out of a lack of confidence in one's own confidence. Be it in their strategy, dedication to learning a strategy or other. Experience is so key in forex and unfortunately many fail to stick around long enough to acquire the necessary experience to realise it doesn't matter what the next trader is doing.
 

sebking1986

Well-known member
288 87
A broker is important. In fact, it is the most important and very first decision a trader makes in his trading career. All your efforts will only bear fruits if the broker you are using works in the best interests of you and is trustworthy. There’s no use of all the profits if you face problems in withdrawals or your broke runs away with your money. One should only choose a decent and reliable broker after a lot of research.
But I don't think it is hard to find reliable brokers. Taking the time to do a bit of research will quickly highlight brokers that don't pay out or have a history of issues.
 

sebking1986

Well-known member
288 87
withdrawl history is nice, but it really means nothing.

the big question is: is my broker operating as an unregulated bucket shop.

the big question is: is my broker going to suddenly stop making withdrawls and execute an exit scam?

It does if there is no history of it. Assuming things are scams before there is evidence to suggest so doesn't make it the case.

Regulation doesn't protect funds in certain countries so in those cases perhaps better to invest less in an unregulated broker and make use of leverage. If you are using a massive amount of capital to trade with then the chances are that you know what you're doing unless you're a total numpty with no appreciation of risk management. If you do know what you're doing and have the capital then the chances are you have contacted brokers/banks and are using a professional account rather than retail account anyway.
 

Egads

Junior member
27 4
@sebking1986 I agree with your point. Leverages should only be used when you are sure about the trade and have a proper risk management strategy including your stop loss and take profit in a strategic manner.
 

pezza55

Member
64 20
To add to my original point about trading taking time - I think a big mistake many make is that they blindly go into using signal services out of a desperation to make money without consideration for what type of trader they are and how much time they have to dedicate to trading. It might be a scalping strategy but they can only commit to swing trader lengths of time at the charts and this means they end up missing winners and thus increase the variance of their results.
after looking in to signals so many of them adjust and move there targets and entries you can never believe how they say they made 1000 pips yet you as a follower oly made 100 or something like that. i have never followed 1 that was continuedly profitable and all you ever do is relies on someone else word.
 

sebking1986

Well-known member
288 87
after looking in to signals so many of them adjust and move there targets and entries you can never believe how they say they made 1000 pips yet you as a follower oly made 100 or something like that. i have never followed 1 that was continuedly profitable and all you ever do is relies on someone else word.
Like I say, most have absolutely no business at all selling signals.
 

DT5

Active member
136 22
I've never found one profitable signal seller either. People with profitable systems don't sell them....
 

sebking1986

Well-known member
288 87
Quite - when you can make more than enough yourself from trading then time becomes the most valuable asset. You're not setting up signal services and creating work.
 

reecerispoli

Junior member
40 4
1. A broker is not that important. 90% of them are fine so use whatever one you are comfortable with. I use CedarFX as I use Bitcoin to deposit and withdraw and it is very quick, also the tree planting is good. It all helps.

2. Social media “gurus” often don’t actually trade themselves and make their money conning the vast majority of people coming into trading looking for quick cash – don’t get caught out!

3. Nobody can give you a ready-made strategy and then send you off to start making money. A strategy is something personal to you in terms of time, risk tolerance, psychology, speed of the market etc. Take bits from different sources and then take the time to formulate and test your own strategy that fits your own parameters. There is no “one-size fits all” in trading.

4. Trading of any type is NOT A GET RICH QUICK SCHEME! It takes time for the above reasons to first learn the basics and then formulate a strategy, test it thoroughly and implement it.

5. Set achievable goals – when you first start break even at the end of the month might be a great target for you and that is fine. Not losing long term is priority number one to protect your capital. Don’t compare your 1000hrs of practice to another person’s 10,000hrs. Be better than you were 6 months ago and focus on that.


What else have you all learned in your time trading?
i agree with all points here, point 5 is the most important i think
 

S Hughes

Newbie
5 0
It took me a long time to realise being profitable isn't about the volume of winners I get but the quality of the trades I take. I spent a good portion of my initial years taking profits before my targets were hit often because my targets were daily and I never looked at the bigger picture
 

LuckyMac

Member
73 19
As a kid I always wondered why 90% of traders lose. I often look at the indexes and thought to myself, almost all of them are trending upwards. You simply have to put in money and wait, it's so simple.

But as I grew older, I realized people are impatient and full of emotions and most traders are just gamblers overtrading and on huge margin that's why it's easy to lose.

To win, you have to keep it simple. Don't make your system too convulated (unless maybe you are a genius and it's simple to you). Don't kill yourself by betting too big on a single horse. The longer you survive in the market the chances are you will be profitable at some point.

Great post, simplicity is so key not just for success but to prevent mental burn out. Some just want to put it on and hope too and that is one of the largest reasons for failure. Stick to a system and accept their will be losses and the battle is close to being won
 
 
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