Realistic approach to trading/Trading floor for like minded traders

Discussion in 'Trading Journals' started by Realist, Feb 23, 2017.

  1. Realist

    Realist Newbie

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    Hi everyone,

    I am new to this forum but not to forex trading. I have gathered a few years experience. Periods with wins and periods with losses. Been through what most people who endeavours to succeed with trading has to experience.

    Most people will quit after a while. This can very often be a losing game. Newcomers are most probably gonna seek help or try to learn from the wrong sources. A whole bi-industry of forex trading selling aid to rookies. Coaching, mentoring, selling indicators, sellings signals, books and so on.

    This will never make you succeed. The only person that can make you succeed is yourself. Your approach to the market and motivation to learn from it. The ones who realises this will pursuit further, than the ones who doesn`t. The ones who doesn`t will abandon the project.

    If you are serious about trading you don`t believe you will be rich quickly. Lay the fundaments slowly. If you can acchieve +30 percent return of your capital a year, with decent risk profile (Sharpe ratio etc.) , you compete with the very best hedge funds/funds. The old model for these are 2/20. 2 percent of the fund in wage and 20 percent of gains as bonus.

    It is possible to do better, still be realistic. If you maintain this acchievement for several years you could become attractive for people with money/employers. Also you are building your capital, that is the most important thing. To acchieve this find your edge in the market. I strongly advise you to learn a programming language. A language you can use with an API or trading platform. Make your own indicators and stick to them. Also the word yielding is something you should be aware of. Expectations of yields drives the markets.

    I am working full time in employment outside the trading industry. My goal is to start working full time as an trader. Either employeed or using own capital trading.

    As for now, I have an account at around 12 000 USD placed with a respected broker/MTF under a reliable regulation. This is money I am not dependant upon. Still I will not risk loosing more than maximum 20%. If my account declines to 80% of its deposited value, I am out no matter what.

    The account was opened monday the 13th February this year, so it is quite new. I will share my trades and methods in this thread. Not my edge. This is will keep to myself. The methods and approach to the market can benefit the lost ones.

    If anyone wants to join me on this path, I will happily welcome you. I want a sound discussion with equals about trading the forex market. A good friend of me has traded it employed institutionally. He pinpointed the importance of belonging to a group who soundly discussed the market, as what was his biggest loss when quiting this job.

    This is part of what I am trying to acchieve with this thread. If you want to learn or already have some experience and want to participate. Come along, as long as you are beeing realistic with your approach.

    To be continued.
     
    Enivid likes this.
  2. Realist

    Realist Newbie

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    Firstly, I never risk more than 1-2 % of my account for each trade. I will never open more than maximum two trades at the same time. The total amount of risk I am taking with these parameters is around 1-3 %. I use pretty wide stops, to avoid beeing closed out by smaller market movements. These are totally unpredictable and by random. Stops needs to be outside their range. Sure way to lose some money to operate your stops within their range.

    I will manage the positions/trades. Normally I will bag a little profit at around 60-120 pips, depending on the pair/cross. I will also move the stop to break even for the remaining of the position, as soon as feasible.

    1) When doing all of this I will atleast make some small profit each time I have been right with the movement. As well as preparing to hold the trade if the movement continue in my direction. A lot of small profits will over time lead to decent profits. Kinda boring but effective in growing an account.

    2) Most importantly, I am mentally at ease with the above way of entering the market and maintaining trades. I know that I will be fine if I loose. As well not beeing afraid to loose profits. This is an clear way of managing risk for me. It leaves the emotions outside of the trading. I just focus on the method. I am not thinking about loosing or winning.


    The AUDNZD trade:

    I have one position in the market as now. A short AUDNZD trade. Entry at 1.07333. Stop at 1.08686. Closed half of the trade at 1.06700. Securing 0.25% increase in the account. SL is moved to 1.0698. Securing atleast another 35 pips in profit.

    I will hold this trade untill Friday evening. Then I will evaluate what to do. I am prone to holding for longer term if possible. The distance from the stop level to the price level needs to be sufficient enough for me to do this. With regards to the potential weekend gap.

    For this trade I am very much at ease. I do not constantly check charts. I am able to give price the time to work. All decisions are based on rationale thinking and not on emotions.
     
  3. Realist

    Realist Newbie

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    Still holding the AUDNZD short trade. Currently 80 pips in the green with it. I will not think about anything related to forex or markets untill Sunday evening. Then I will look through the charts and look for opportunities for the coming week. If there are no clear opportunities presenting themselves, I will simply stay away. This preservation of capital is as important as making trades and try to increase the capital.

    Normally I will have a look at markets early in the morning and in the evenings (European time). Patience is what this is all about. Do not rush into positions or be in a hurry to exit them. I use the higher timeframes, minimum 4hours and higher. Try to minimize risk as soon as possible. The markets can easily turn against you. The use of stops and adjusting them is the most effective way of doing this. Trading without stops is like boxing without a guard. The hits you take will knock you out.
     
  4. Rjon111

    Rjon111 Newbie

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    When I was starting out, I found it very useful to STOP watching the charts after I entered a trade. So many times I closed good trades early. Now I set a trade and then leave it until the stop loss / take profit. A much less stressful way of trading
     
  5. Realist

    Realist Newbie

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    Hi Rjon111, I know others who uses that approach as well. They define the stop (where they are wrong) and their take profit (where they believe price will venture) and wait for either to happen. It is a decent approach. The less stress the better, that is the key with succesful approaches.
     
  6. Realist

    Realist Newbie

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    Have looked through the charts for the start of the week. Will not enter the market as per now. Staying in the short AUDNZD trade. I am expecting EUR to weaken a little more, towards levels where buying is interesting. The opposite with regards to JPY. Still some strengthening ahead before a bearish correction.

    This outlook could change based on other signals the coming week. Will update with any limit orders or positions taken during the week, as well as outlooks.
     
  7. Realist

    Realist Newbie

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    The coming week has some clear outlooks. I am actively looking to sell EUR and buy NZD and CAD. Short EURCAD and EURNZD are going into the portfolio.
     

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