Here is a comment from a trader that is trading with price movement rather than the trend.
“This really reminds me of my experience as of late. Every time the market moves against me, I wait until I just can’t take any more unrealized loss, then reverse the position hoping that the momentum will help me recover some of the loss, get me to BE, or even profit. Soon after I do this, the market reverses its direction and instead of putting me back in the green, exacerbates the situation. Worse yet, I come to realize that had I kept the original position, I would not lose or even gain from it. Effectively, the initial bad decision soon snowballs into a serious loss.
Can anyone be trained to trade for a living? I would say a LOUD yes…. and no.
A great deal can be “taught” like a working strategy. But a lot cannot be taught. One trader will have great success and another just a little success trading the same strategy.
There is something that some traders have and others don’t. That doesn’t mean you can’t be trained to make money trading; many can, but the level of success varies greatly. The love of trading has a lot to do with it. How you think and feel about money plays a big part in your trading also. A trader must understand that there are no absolute systems in the trading arena. Trading systems will give you the advantage but time and study have to be put in to become a good trader. Planning, practice, disciple, control over your emotions and greed, and a fresh outlook on life can go a long way to determine the level of success you may have.
There are many good trading systems, and trader must find the one that works for them. If you find a flaw in a system move on to something else. We would caution you not to spend much valuable trading time trying to perfect something that is flawed to start with. Find a trading strategy that fits you then learn how to use it. Do not spend time trying to change it or perfect it. Spend your energies learning how to trade, and then trade.
I came across a couple of quotes I want to share with you: “Wall Street never changes, the pockets change, the suckers change, the stocks change, but Wall Street never changes, because human nature never changes” Jesse Livermore “In order to make a success, the trader must act in a way to overcome the weak points that have caused the ruin of others” W.D. Gann
The reason indicators work in any financial markets is because human nature never changes. We remain greedy, emotional, and want things right now. If we can trade by using a system and following rules then we are doing the things other successful traders do. If we chase trades get caught up in one trade that is causing us problems and want more than the market is willing to give then we will do what most of the unsuccessful traders do and that is flounder.
Another way of looking at the quote by W.D. Gann is: If you keep doing the same thing you have always done then you will keep getting the same results you have always gotten. A trader needs to identify their strength and weakness then work on correcting their weaknesses and improve their strengths.
I once heard it said that: “It is insanity to think you can keep doing the same thing and expect to get different results.” Successful traders are successful because they are willing to do the things that unsuccessful traders are not willing to do. Successful traders will keep a trade journal, follow a trading system, and use a set of rules when trading just to name a few things they do.
First of all we must decide why we are trading. Then we must do what it takes to become successful. If we are not willing to do the things that successful traders do then we should never put money into the market we should just continue to demo trade and keep our money in a safe place.
If we trade the news and always lose, stop trading the news. If we chase trades and lose then stop chasing trades, if we trade against the major trend and lose then stop trading against the trend. If we trade without a stop loss and lose then start putting stops on our trades. Success leaves clues so look for the clues. We can be successful at trading if we are willing to change the way we trade when we lose.
We have all been told that we should only trade with money we can afford to lose. This does not mean to be wild and care free with your trading money. So we do not want to think of our trading account as money you can afford to lose. We just have to know that we can lose this money and not affect our life style. You want to be stingy with this money and try to keep it and guard it with all the skill we have.
Playing offence is important but you will keep and make more money by playing defense with your money. Before making a trade you should always think defense and check the risk before you place the trade. Once you have the risk figured out and you are willing to accept that level of risk you need to figure out the number of lots you will trade. It is best to think about how much you will lose rather than how much you will gain. When you approach trading defensively first, then money management will have a higher priority in your trading decisions.
If some news is coming out and you cannot control the outcome then the extra risk may not be worth taking the trade. If you are not sure what the risk is, then it is better not to take the trade because you are increasing your chances for a loss if you do take the trade.
A trader must see the big picture in trading to survive and prosper. If you only look at the small time frames you are only seeing the foothills of a tall mountain. It is necessary to look at the larger time frames and trade in the direction of the larger trend.
If a trader is going to be in the currency trading business very long they must look at the current trade as only one of many trades. This will help to get out of a bad trade without the emotions.
Everyone needs to find the time of day that is best for them be it emotionally, time restraints, or alertness (when you are not tired of fatigued).Once you find that magic time for you then build your trading around your schedule not what works for others.
Once you have the time to trade, decide which style you will use.Day trading, swing trading, position trading.This will take some looking into, your emotions and personality, for sure.Once you have figured this out the time frames you will trade will be obvious.For day trading use small time frames, (5 minute and 15 minute) for the longer time trades (swing or position) use the larger time frames (1hr or 4hr or larger).
If you take trading seriously you will think of trading as a business.Not just a hobby, or a way to get a quick rush, or a way to escape life’s problems, or a way of spending some of your extra time.You can think of trading, as a lot of things but to make the big bucks you talk and dream about, you need to think of it as a business.
You are responsible for your success or failure as a trader. You’re in charge of your trading, not the platform, not your broker, not your trading group Just you. If something goes wrong you are the one that has to figure what to do to get out of any given trade.
One of the best things a trader can do is be aware of their feelings, be aware of how you are reacting to things when they have gone right or wrong. Traders have to learn how to coach themselves. By keeping the trade tracker a trader can see what they are doing right and what they are doing wrong after only a few trades. Having a “winning day” or a “Losing day” is not the issue at all. It is how a trader is performing on the job.
When we trade properly we need to know that we are using the law of probabilities.
When you go to any gambling place you are playing with probabilities. The thing you already know is that the probabilities are in the favor of the house. When you use a trading system you are putting the advantage in your favor.
For example you have moving averages, oscillator signals, conformations, trends, time frames to put the advantage in your favor. If one indicator gives you a signal then you wait for the confirmation of the other indicator to give you another signal to enter the market. A trading system helps you identify high probability trades.
