Consistently Profitable Trading. BUT HOW?

[sharpiemomo]

So I've witnessed a few people who do manage to make consistent gains in the Forex market day in and out.... it's mindblowing, and I'm not just saying this out of seeing short term success... I'm talking about people who have managed to do it day in and out all the time. One guy I've talked to online is a multi millionaire who says he has a hit rate of 90%, and I think it's true because whenever I ask him what trades he's taken he'll show me them. I also have a friend in person who is working towards being a fulltime trader... he plugged one of his old trading accounts into MYFXBOOK.... and it was a slow and consistently profitable gain of 500%....

So my point is, do I believe it's possible to be consistently profitable in the Forex Market... Yes, people are doing it.
Do I know how to do that? No.

Today I asked the millionaire dude, What trades did you take today? He responded with GN Buy, AU Buy and EU sell. Here's a screenshot he sent me.

So my question is... are any of you guys able to consistently and accurately extract profits from the market? and if anybody would care to help and guide me towards that I would appreciate it.

 

[NVP]

Hi Sharpi

and welcome to T2win .....can you let us know a little about your background and if you have used other Forums .....

will help the guys here to help you

PS - dont believe too much the hype on what other traders tell you .....anyone can fake results ...trust me

thanks

N

 

[Pat494]

Put in lots of practice reading charts imho

 

[sharpiemomo]

Hi Sharpi

and welcome to T2win .....can you let us know a little about your background and if you have used other Forums .....

will help the guys here to help you

PS - dont believe too much the hype on what other traders tell you .....anyone can fake results ...trust me

thanks

N

That's the thing though. Wasn't fake, my friend who got MYFXBOOK... I actually plugged his account in for him because he had no clue of how to even use myfxbook.... No fake results here.

 

[NVP]

hey there....no worries ......if you say so......

 

[fxtrader01]

Hi, Sharpie. As you have already mentioned, it is certainly possible to become consistently profitable and in my case, I found that the best way to do this was by focussing on the fundamentals rather than the technicals. If you are looking to day trade FX, then I would say that you need to put up some money for a live squawk so that you can get information at the same time as institutions but if you are looking to swing trade, I would start of just by reading various currency related articles on websites like Bloomberg. The fundamental allow me to decide what currency I want to trade and in which direction I will trade it and then I will look at the technicals to determine my entry.

The second most important thing is risk management. Do not overuse leverage and do not aim for unrealistic returns. A good target on an account without leverage is around 2% a month. Of course, you won't hit this every month so do not go chasing it, but it is what you should be looking to average. Then with a bit of leverage, the targets increase proportionally, ie 2:1 leverage means you should be aiming to average 4%.

Two traders I would recommend you take a look at are Jarratt Davis and Chris Mathis. Both of them have tremendous experience in FX and provide some valuable content (free and paid).

For an idea of how I analyse the markets, feel free to take a look at my website where I post weekly previews and frequent analysis: www.londontradingcommunity.com

 

[J_C_Anderson]

For sure, the ability to understand charts is very important for each trader, just as an ability to make own decisions based on fundamental information.
There are two directions of trading improvement:
1. Technical issues and strategy: chart understanding practice, generation of ideas, back testing (testing strategies on historical data with the help of special software like Tradingview or Forex Tester), creating own collection of chart patterns.
2. Psychological issues: formation of proper trading mindset, improvement of trading discipline.

These are two ways to become a consistently profitable traders.
By the way, try to focus not on the profit, but on progress. It is much more important.

 

[Xevield]

I also think that it is possible to make continuous profits with good trading strategy. Now, this is hard part. In order to develop good strategy takes time for learning and gaining trading experience and understanding what drives the market. There is no easier way to do it

 

[Pat494]

Check all time frames and still buy the dips.
Vice versa for shorts.

 

[Pat494]

Hi Sharpi.
Have you found the magic formula for consistant profits ? If so then post it here.
If you are still looking I suggest you get the info out of your 2 successful friends. Have them round for a meal and lay on the booze and girls. Most people like to boast a bit when drunk.....You know the form I expect.
Then snitch to us ??????????????????????????
There is a very informative interview with John Carter on U tube

 

[trendie]

Your observation about money management is really good.
A while ago I found a site where the idea was to "reverse martingale", or rather, to keep trading into a profitable move, rather than average your losses.
Actually, if I recall, even the Turtles didnt enter completely in a lump sum, but averaged into a winning position, using ATR to decide how to build a full position.
Psychologically this can be less stressful.
And, as you say, the signals themselves become less important, and emphasis more on position management.

Personally, still toying with this quirk, but your post resonated with me about good MM.

Hope you're doing well.

 

[scarlet jones]

Yes,why not? you can make consistent profits in forex. However that needs a lot of hard work , patience and experience. Consistency comes with time only. So keep calm and keep trading.

 

[Daniel Jones]

Research is the key. Consistency in profits can only be achieved if you consistently work on exploring the markets. With every twist in the trend, your trading strategy might need a change, so work on that.

 

[D.Bernfeld]

The EA has a limited period during which it makes a profit. You need to constantly optimize your trading strategy for changing market conditions. This work should continue all the time. In addition, one strategy cannot be used for success; You must have a portfolio of strategies to diversify your risks.

 

[hatemypips]

The EA has a limited period during which it makes a profit. You need to constantly optimize your trading strategy for changing market conditions. This work should continue all the time. In addition, one strategy cannot be used for success; You must have a portfolio of strategies to diversify your risks.

I would also add that it is essential to diversify brokers and split orders between them to get better execution.

 

[NVP]

to understand Forex you must step back and observe the whole market.....i have been doing this for 20 years and trying to help other traders do the same

to be diving in and trading individual pairs on specific patterns without seeing what all the 28 pairs in the G8 are doing is crazy to me ....but the majority of forex traders just trade a few pairs and ignore the rest

crazy
N

 

[cantagril]

to understand Forex you must step back and observe the whole market.....i have been doing this for 20 years and trying to help other traders do the same

to be diving in and trading individual pairs on specific patterns without seeing what all the 28 pairs in the G8 are doing is crazy to me ....but the majority of forex traders just trade a few pairs and ignore the rest

crazy
N

Weeeell, respectfully I have to say that I think you've probably forgotten who you were twenty years ago

Whilst I understand what you say and it is quite logical, I'd suggest that your path doesn't reflect the majority's. Most of the tools readily accessible to new traders don't allow easy comparative analysis (or even observation) of currency strengths. Of course, there are strengthmeters/correlators out there that do the same as your own but they tend to be part of professional packages that cost a fair bit of moolah.

In my case, I'm happily(and very gratefully) using your FX correlator because it allows me to do almost instantly and simply to visually establish the strength of single currencies and therefore the most interesting pairs. A lot of people either don't want to trade in the way you do or just don't know that it is practically possible....and more importantly, profitable. I certainly don't do what you do and that's because I have an approach with which I'm comfortable. That doesn't mean that
I don't find it useful because I surely do.

 

[Pat494]

I forgot my rules last week trying to be too clever by half and paid the price.

 

[hatemypips]

To be profitable when trading, you should be focused and the process. Your key to success is learning and getting experience. Only learning new things and trading you will increase your profitability, cause you will become more confident about trading and will be able to take decisions faster and without mistakes. Trading has very fast pace and your success depends solely on how fast you can take decisions to take the best order. If you're not confident in yourself, then you will think to much about the same, even minor question. But this will learn to loss of posibility and to avoid this you need to train your fast-decision-making skills.

Nice where did you basically learn to trade? Is it a merit of self education of some proper mentorship?

 

[MoneyWeaver]

I am only getting back into trading but I have built a number of trading infrastructure tools in the past to assist my trading and research. One of the smaller apps that I produced was a trader expert system which captured any trading strategy/setup/money and risk management processes you are using etc - no matter how convoluted or complex the trading strategy/decision might be. The software asks a series of questions and comes to a decision for you as well as logging your responses.

It also explains how it arrived at the decision (usefull when deciding what works and what does'nt). I could dust it off and send you the software - perhaps the millionaire dude could then use it and give a copy to all of us!