How I trade forex and make a profit.

[patong]

Tomorrow marks the end of my fiscal year of trading. I have done extremely well trading my method over the last year. I've had 238 trades, of which 91.6% paid off, for a total of 623% profit. This was my best year since I started trading in 2001. It has taken a lot of hard work to get to be this efficient at trading. Most people are not willing to do the work that it takes.
At this time I'd like to give a special thanks and to Bob Volman for "Forex price action scalping" and Tim Lucarelli for "Forex secrets trading from the dark side" their books and gave me a whole new perspective on the markets that I was able to roll into the methodology that I use and have profited so well from this last year.

The big question is. Are you making any real money? I mean money you can live from etc.

 

[Traderallen]

That's a great question. My main trading is done in two hours and 40 minutes of the day which is from 8 to 10:40 Eastern time.In order for me to quit my "day job"and trade for living I would have to be able to comfortably replace my current income plus my health insurance costs which would be about $150,000 per year. I don't expect to do as well this year as I don't want to raise the bar so high that I can't reach it. But assuming I do a third as good as I did this year then I should be able to make at least $50,000 for this fiscal year. Then assuming I can do the same third as good the following year I will reach the benchmark of $150,000 in my trading account which is the bar that I need to reach in order to "trade for a living" based on my current earnings for this last year this seems like a reasonable figure that I should be able to obtain. I have strict money management rules that I will adhere to at all times. However with each trade as my account size grows so does my position size. I should be able to easily reach this year's goal at my current level trading 1.5 lots. I'm trying to error on the conservative side for psychological reasons I'm trying not to swell my head. I'll track my progress as usual at my journal for everyone to see at wallstreet2easystreet.com

 

[tar]

24 pages and we didn't get to "How i trade forex and make a profit" yet !

 

[Pat494]

24 pages and we didn't get to "How i trade forex and make a profit" yet !

The interesting bit is - how, but it doesn't look like he is ever going to get to it. More like a sales pitch of how great he is. So ?????

Perhaps about to unleash the bargain of the year system ?

 

[patong]

Great Post

There are potential obstacles to your progress which although not insurmountable, will present you with serious challenges aka potential show-stoppers. An awareness of their likely development provides you with at least a basic defense in that you can prepare or at the very least, be prepared, for them.

Even with risk controlled, position size managed within parameters and a continuance of whatever current levels of performance you’re using to extrapolate your future capital base, you will at some point hit multiple consecutive losers and these will be, fairly obviously, when your account is at its fattest. While completely within the criteria of your portfolio management metrics, and however statistically expected this run of losers will be, it will be a body blow from which you will find it tough to recover.



The switch from an intellectually interesting and financially net positive hobby to full-time career upon which the entire edifice of your life (and others?) depends weaves a whole new dynamic into the enterprise and its operation. You can choose at the moment whether to spend 2 hours and 40 minutes each day trading, it makes no difference as your day job pays the bills. With the element of choice removed to be replaced by absolute necessity it will place pressures upon you which should not be underestimated.

When and if you do hit these walls you will find your own way through, but as a general guidance I’d suggest two things: Be extremely prejudiced toward acceptance of the lumpy nature of out of series runs of consecutive losers. Randomness is lumpy and that is your cue. When you get an uncharacteristic run of losers (whatever that is for you) don’t keep stepping up to the plate using your normal risk and position criteria. The market has given you a hint, take it and drop down, stay small, don’t let it get those body shots in on you. The other suggestion I have is to start your full-time trading career when you have a trading capital base which is X10 your currently calculated level. The benefits of this are you will have traded your way up to size that will be necessary for you to maintain an equilibrium which will inure you against the occasional losing streaks without causing you the mental anguish associated with having to deal with financial matters outside of your trading endeavors. When you drop down in size from this base, it will still be for meaningful stakes, but there will that much less emotion tied up in their performance. It will have gifted you that much more experience, which is valuable in its own right. You need to have a calm and quiet mindset to trade day after day and if you’re starting off with the bare limits of what you consider adequate along with the pressure of needing bring home the bacon even if not quite hand to mouth, you’ll be far from calm and the smallest molehill will look, and feel, like a mountain.

These pieces of advice, if accepted, will undoubtedly increase the amount of time it will take you to get to your target full-time trading capital base.

Best post be far on this thread and one of the best I have ever read.

Cheers.

 

[Traderallen]

Thanks Absolute Zero, For your comments.

 

[patong]

Thanks Absolute Zero, For your comments.

For some reason I sense you are having trouble appreciating Absolutes Wisdom..

I would take Absolute Zero's comments very serious. Especially when you do take the big step, to trading for a living. I do trade for a living and what he says is very true. The pressure of paying bills, supporting others etc does effect your trading. i would suggest starting with atleast 100k,+ 50 k to cover expenses 1yr forward.

My FX trading has been scaled down from 10% of portfolio to 2% due to the fact stock indices, stocks and cfd's are more regulated and have a central exchange which makes them more suited for me to trade. Plus there is more money to be made. To many scams and dodgy brokers in FX.

Most FX brokers don't even send your trades to the market unless they are 20 lot plus. They offset your trades in house through an algorithm that matches buyers and sellers. The whole FX industry is dodgy. Including people selling systems, education, signals and others claiming to be making a fortune or claiming they make x amount of pips/% daily, weekly, monthly. Which is all bul****.

 

[Splitlink]

Referring to your last paragraph. I more than suspect that what you say is true, although I have no personal experience. My money has been staked, purely, on my own assessment of what I think, for better or for worse, apart from my dealer (I spreadbet).

Certainly, I am glad that I came across trading after I had retired and, so, a small amount of affordable money is at risk, overall-

My mind boggles, with the success rate that I have, of anyone going from pastime to earning money for a living. The potential worries are enormous. Its a question of one's responsibility to others ie. is he married with a family, or is he single?

 

[fxways]

Trading is a knowledge game rather than an emotional game. You have to know your broker, the market/underlying and master a profitable strategy. All this emotional stuff is just crap. The stuff on your account is not real money, it's just ammunition...

 

[_bob]

Hey Allen, get found out over at babypips. Hedging your bets here lmao. G'day to the minions

 

[iMusingKiMi]

Trading is a knowledge game rather than an emotional game. You have to know your broker, the market/underlying and master a profitable strategy. All this emotional stuff is just crap. The stuff on your account is not real money, it's just ammunition...

Mate,
I am absolutely agree with you on the broker side. I have gotten fed up with those offshore broker because they can robbed my money easily. I have do a lot of research, and finally I chosen Armada Markets because they are onshore EU broker with much better in terms of regulation moreover they have more accurate quotes.. I used their ECN account with 0 EUR/USD spreads and excellent broker charges. They do provide 1:500 leverages, but I prefer to use a max of 1:200 as my Money Management rules.:smart:

 

[enigmatics]

Just read through this entire thread out of boredom and not going to lie ..... I'm still laughing about the $8.36 profit for every $1.00 loss.

God bless the interwebz.

 

[Abdul2012]

Keep doing what's currently working for you. You'll be amazed on how far you can go.

I like this strategy in general life, thank you.