English submachine guns and spot Forex
Feb 1, 2015 15:18:23 GMT -5
fxoutlier, jon, and 2 more like this
Post by traderAllen on Feb 1, 2015 15:18:23 GMT -5
I remember reading somewhere of a Scottish officer in World War II talking about in English submachine gun he was making the point that in trained hands the submachine gun was difficult if not extremely hard to use. And in and untrained hands it's all but worthless. I can relate that same analogy to the myriad of trading methods touted to the aspiring trader most of the methods are extremely poor performers at best and in the hands of a new aspiring trader there all but worthless.
When I look at the various trading methodologies that I think are profitable methods I can jump from one to the other trade the method and make a profit. A new inspiring trader would probably just create losses. The difference is training and experience you have to have an understanding and a "feel" for the market that your trading this is the best path to profitability. Commonly referred to as trading in the zone. When I'm sitting in my trade station, and I have a good read on the market. I can profit one trade after the other. Occasionally something will change maybe I don't feel well, maybe there's market players I didn't anticipate. These days I'm not in the zone. And I can feel it, the trades I place I have to really work at to profit.
If you pick a trading methodology from a known profitable trader or traders stick with that method. Quit trying to learn other methods that are going to cloud your judgment. Model the method of that profitable trader. Then set about getting an understanding and a feel for the market. This will take lots of screen time. Look for the patterns of buyers and sellers there always on the charts. Know where the buyers are likely to be then when you're method gives you a buy signal you can do so with confidence. Then adjust your stops and targets based on where the sellers will likely be. Don't get greedy. If you're unsure where the buyers are sit on your hands until you spot them.
Know your market, for example the euro dollar spot Forex can be extremely volatile therefore in my opinion there's only two ways to trade it. One is a scalping method like I use day in and day out. The other is a long-term method where your position sizes are small, your stop losses are large enough to be outside of daily volatility. It is my opinion any methodology that would be trading in the middle such as swing trading is futile.
When I look at the various trading methodologies that I think are profitable methods I can jump from one to the other trade the method and make a profit. A new inspiring trader would probably just create losses. The difference is training and experience you have to have an understanding and a "feel" for the market that your trading this is the best path to profitability. Commonly referred to as trading in the zone. When I'm sitting in my trade station, and I have a good read on the market. I can profit one trade after the other. Occasionally something will change maybe I don't feel well, maybe there's market players I didn't anticipate. These days I'm not in the zone. And I can feel it, the trades I place I have to really work at to profit.
If you pick a trading methodology from a known profitable trader or traders stick with that method. Quit trying to learn other methods that are going to cloud your judgment. Model the method of that profitable trader. Then set about getting an understanding and a feel for the market. This will take lots of screen time. Look for the patterns of buyers and sellers there always on the charts. Know where the buyers are likely to be then when you're method gives you a buy signal you can do so with confidence. Then adjust your stops and targets based on where the sellers will likely be. Don't get greedy. If you're unsure where the buyers are sit on your hands until you spot them.
Know your market, for example the euro dollar spot Forex can be extremely volatile therefore in my opinion there's only two ways to trade it. One is a scalping method like I use day in and day out. The other is a long-term method where your position sizes are small, your stop losses are large enough to be outside of daily volatility. It is my opinion any methodology that would be trading in the middle such as swing trading is futile.