To be successful in the markets you really just need four things.

[Jack Francisco]

I like forex because i like Independence

Independence from…

Employers
Time constraints
Economic conditions
Geographic constraints
Employee management
Illiquid investments

And to be successful i follow four things

Always target tiny Profits
Never trade in opposite direction of trend
Use hedging while losing
Alwasy evaluate my failures and never enter in a trend it i lose one.:clap:

 

[BBPI_FXTrader]

I like forex because i like Independence

Independence from…

Employers
Time constraints
Economic conditions
Geographic constraints
Employee management
Illiquid investments

And to be successful i follow four things

Always target tiny Profits
Never trade in opposite direction of trend
Use hedging while losing
Alwasy evaluate my failures and never enter in a trend it i lose one.:clap:

I also like independence, and one day I hope to achieve it, I am working hard at it :cheesy:

I do not however, agree with your first condition: Always target tiny profits.
I don't want to get in the discussion about greed and etc, but gtargeting tiny profits is not ok. You need to ride the profits (in a reasonable, well thought out strategy)

 

[Hoggums]

Always target tiny Profits
Never trade in opposite direction of trend
Use hedging while losing
Alwasy evaluate my failures and never enter in a trend it i lose one.:clap:

These, my friend, are exactly the reasons why you will NEVER be successful.

I can't think of worse rules to follow, especially the 1st and 3rd ones.

 

[dan1986ccfc]

I like forex because i like Independence

Independence from…

Employers
Time constraints
Economic conditions
Geographic constraints
Employee management
Illiquid investments

And to be successful i follow four things

Always target tiny Profits
Never trade in opposite direction of trend
Use hedging while losing
Alwasy evaluate my failures and never enter in a trend it i lose one.:clap:

And to be honest I disagree with alot of your first list.
Independence from time constraints? I think alot of day traders would disagree.

 

[chinabean]

I was going to be bad and dissect each of these rules/conditions but that's wrong as everyone is different however I will say this...

Always target tiny Profits....... I think this should be always target the amount of profit you think you can get out of a trade......that means not being overly greedy or cautious.
Never trade in opposite direction of trend - all depends on what's going on? look how quickly some markets are reversing at the moment.
Use hedging while losing - again it depends, if you don't believe a trade is coming back you shouldn't be in it, plain and simple, forget (substitute in a word that rhymes with puck) hedging a losing trade if you either don't think it's coming back or if you don't know what's going on, there's no point hanging onto a trade on the off chance as over the long-term you will find the one's that do come back are going to smashed by your losers.

Of course, there may be something lost in translation from your original post but if you meant what I think you did then I think the above is probably a better/more profitable way to go.

 

[FringFX]

And to be honest I disagree with alot of your first list.
Independence from time constraints? I think alot of day traders would disagree.

for some of the profitable day traders..... they probably prefer to trade regularly so they can grow faster... perhaps with a goal of trading less in the future.

 

[intradaybill]

And to be successful i follow four things

Always target tiny Profits
Never trade in opposite direction of trend
Use hedging while losing
Alwasy evaluate my failures and never enter in a trend it i lose one.:clap:

(1) will work only if losses are tiny also. But in general, as far as forex, these are good suggestions. The more you stay in a trade in forex, the higher the probability you will lose. This is what experience says. So (1) is the correct approach in general and (2) is a must. I have used (3) extensively only because I need time to figure out an exit strategy.

 

[NVP]

I like forex because i like Independence

And to be successful i follow four things

Always target tiny Profits....not sure about this one dude ??

Never trade in opposite direction of trend (what trend ?)
Use hedging while losing - Eh ?

Alwasy evaluate my failures and never enter in a trend it i lose one.:clap:
then it wasnt a trend ?

can you illuminate please more on the comments above ? :smart:

thanks
N

 

[NVP]

for some of the profitable day traders..... they probably prefer to trade regularly so they can grow faster... perhaps with a goal of trading less in the future.

you need larger volumes of trades to make serious money...and the more you make ...the more you will need

 

[chinabean]

(1) will work only if losses are tiny also. But in general, as far as forex, these are good suggestions. The more you stay in a trade in forex, the higher the probability you will lose. This is what experience says. So (1) is the correct approach in general and (2) is a must. I have used (3) extensively only because I need time to figure out an exit strategy.

talk to any non-systematic (read macro) hedge fund managers and they'll laugh in your face at these.

1) You stay in the trade as long as you SHOULD be in the trade. Once the reasons you got into it in the first place are not there (it could be as simple as your target profit has been reached or your stop has been triggered, it could be macro factors), you get the F**K out.......unless something else has changed (eg your long Copper trade sees target profit reached as fed announces new QE, you probably wanna assess where it is going from there). As for if you stay in a trade longer in forex then you have a greater probability of losing? WTF? I'll say again WTF! A very basic example, you have bought AUDUSD at say 1.05, 2 seconds later the market hasn't gone anywhere so profit = 0, 10 seconds later it still hasn't gone anywhere but yet ONLY your probability of losing has increased? By your rationale, I should always sell options because if I was in the underlying, the chances of losing (only - since you've haven't mentioned winning) increases......... SHHHHHHHHEEEEEEEEEEZZZZZZZZZZZZZZZZ!!!!!!!

2) You go with the trend when you think the trend is continuing, if you think it is not you don't. Plain and simple. There can be a multitude of reasons why you are trend-following or going contrarian.

3) If you need to hedge so you can figure out an exit strategy, you shouldn't be in the trade in the first place. Plain and simple. I always have an firm idea of what I will do if a trade is offside, that includes if the market gaps etc and believe me if you're trading something like the Hang Seng, you need to do this!

Sorry to sound harsh but remind me never ever ever ever to ask you for trading advice.

 

[BeginnerJoe]

The more you stay in a trade in forex, the higher the probability you will lose.

Perhaps. But not today. I am on this trade all day and am going to ride it to the end. Maybe what you really want to say is: longer you stay with a looser, the higher the probability you will loose.

 

[intradaybill]

talk to any non-systematic (read macro) hedge fund managers and they'll laugh in your face at these.

Are you a systematic hedge fund manager spending time in t2w? lol YOu don't even know what that means.

Sorry to sound harsh but remind me never ever ever ever to ask you for trading advice.

You sound harsh because you are frustrated. Please do not ask for advice. Anyway, I do not offer trading advice, just general thoughts.

Bye and good luck, you will need it (if you trade).

 

[BigPointValue]

Great that you've provoked such a response! I think several of your points could be regarded as true or false.

For example: Successful independent traders don't have "employers" but they treat trading like a business and therefore regard themselves as employees who need to make a profit.

Small profits can work great for scalpers and some high frequency traders and yet trend traders take the exact opposite approach.

Trade with the trend is a great and proven way to trade but there are also those who await clear divergences in the trend and make rapid profits e.g. at the end of bull markets.

So it's all down to style as far as I'm concerned. Doing what succeeds for you consistently is the key. Few people could disagree with your statement about evaluating your failures; I'd also add, evaluate your successes.

 

[chinabean]

Are you a systematic hedge fund manager spending time in t2w? lol YOu don't even know what that means.

Really? Sour grapes? Maybe you should read some of my other posts then. I've just broken down to you in probability terms why your first statement was STUPID! how can staying in a trade purely increase ONLY your probability of losing? please answer me that. Also, you can't work out what I am saying when I say ask any non-systematic hedge fund manager? well, i'll break it down to you, a non-systematic (read discretionary) FM will stay in trades for weeks, months or even years particularly FX carry trades, large curve plays, bond box trades......you want me to continue? Unless you are a trend-following systematic fund you will generally NOT stay in trades for months and even if you are, it is unlikely that you will stay in any trade for longer than 3-6 months........seriously, that is not a hard concept to understand. For the record, I work for a systematic hedge fund but in a semi- discretionary role therefore, I KNOW WHAT I AM F**KING TALKING ABOUT! Why am I spending time on T2W? Why not? I like markets, I used to like reading stuff on this forum when I was a prop-shop trader and I want to give something back as some of the advice on here plus, I trade Asia-pac for the UK so I have time on my hands during the day! Personally I think it is useful to have some perspective on different ways to trade. I have gone from being a distinctly average prop-shop trader to the best performing trader on my desk. Can you say the same and more to the point do you understand now? ??????????



You sound harsh because you are frustrated. Please do not ask for advice. Anyway, I do not offer trading advice, just general thoughts.

Bye and good luck, you will need it (if you trade).

Yeah I'm sure I will, I'll need help, my p/l this year really tells me that! And you did offer trading advice! You were saying that aiming for tiny profits is a good idea. It is only good if you have a strategy that focuses on that which would realistically have to be some form of market-making arb strat for which you need a decent amount of tech resource. Trying to scalp a tick or 2 here and there is a fools game. All that happens is you have a good run and then the market gaps one day. Assymetric risk - look up the term!!!

 

[easttrader]

I like forex because i like Independence

Independence from…

Employers
Time constraints
Economic conditions
Geographic constraints
Employee management
Illiquid investments

And to be successful i follow four things

Always target tiny Profits
Never trade in opposite direction of trend
Use hedging while losing
Alwasy evaluate my failures and never enter in a trend it i lose one.:clap:

hedging is not the best way you chose ))) it's better just close operation if you lose money

 

[Erhnam]

Greed kills

 

[nelsonhimes]

you have done a great work by sharing this wonderful information with us and the way you analysis all the things and describe over here is quite good.

 

[lynhappytrader]

I'm also looking for independence. However, at the moment I'm still trading as a part-time job. Hopefully, in the future, I'll be able to do it as a full-time.

 

[allantta]

I simply like all the advices from many posters on the topic of forex trading. Very interesting and insightful, I wonder how the OP's performance is like up till now based on the 4 important points.

I like forex because i like Independence

Independence from…

Employers
Time constraints
Economic conditions
Geographic constraints
Employee management
Illiquid investments

And to be successful i follow four things

Always target tiny Profits
Never trade in opposite direction of trend
Use hedging while losing
Alwasy evaluate my failures and never enter in a trend it i lose one.:clap:

 

[Jack Francisco]

Re be successful in the markets you r Teally just need four things.

hedging is not the best way you chose ))) it's better just close operation if you lose money

So you are ready to accept some loss. You don't want to recover the loss.

Rarely - I don't agree with your opinion- we can't close the operations and sit to watch the loss or cried on front your PC.

We must find some solutions to recover the loss. Now it depends on you......whether accept it or not but me---not...........