Hello! Recent FX trader here. My nick is profit but with a zero. this is because of my (impossible) ideal to have zero loosing trades. It's hard for me to "take the pain". I have traded in part time for some years now. Caught some of the great bull stock market in final nineties and after Y2K gave some back and got out with a little more than I got in...knowledge. Nowadays I don't trade stock. I' ve been watching forex for some months now and been trying to devise a strategy. Since I have a couple of hours a day, I've decided to daytrade FX (EUR/USD only). I decided to use the most simple setup I know - RSI divergences on the 5 min charts. My SL differs 2 pips from my TP, just like the zero in the roulette is "money for the house". I hope that even if my entries are random (in the market's perspective), I still can make a buck with 50/50 win/loss rate. I have an acct with oanda because of the spread but decide on trades based on metatrader. I'm starting with a real acct because I believe that with a demo you do not wave the "butterflies" you need to manage afterwards. However the money in that acct is very small. I win or loose peanuts but it is real money. If all goes well I plan to progressively increase my size. The increase of the trading volume will be proportional to the P/L. My aim is to turn FX into my main source of income. Anyone using RSI divs with success? I've started reading the forums but it's hard to distinguish people who are really professional from people who are just interested in FX. Would some of the experienced please point me to the people who are in FX as a career so that I can screen the forums?
pr0fit, Welcome to ET. I am glad to see yet another Forex trader posting here. You will find ET the best Forum and it is filled with professionals that can share with you. I do not personally use indicators, but if I did...I like divergencies. Good trading to You and your quest. Michael B.
By the way... I like the fresh way you present your trading methodology and your way to look at various issues. My SL differs 2 pips from my TP The increase of the trading volume will be proportional to the P/L with a demo you do not wave the "butterflies" you need to manage afterwards
If you're gonna trade as if the house with a roulette wheel, I hope you've gotten over your aversion to pain. A casino's edge in roulette is mathematically certain; on the other hand, if you have 20 losing trades in a row, how certain will you still be of your edge?
ElectricSavant: Thanks! Good to be abord. I'm looking forward to spending some of the lonely trading hours writing something on the board. What's up with the nickname? Are you aware of the electrical forces of the market? (lol) illiquid: Hi! Taking a loss does not trouble me. It's taking the pain of seeing a trade go my way and then reversing that is difficult. The need to move to BE+1 for me is VERY big.
I started trading on March 9, 2006. First with Trade Freedom in Canada. Recently with Man Financial in Canada. I have been managing funds for clients. I started with $10,000 US and worked up to $50,000 US. In 4 months my profit for clients is $50,000. That is 25% ROI a month. I trade only EUR/USD in lots of $100 K. My usual trade is 10 units or $1,000,000 EUR/USD. I am wondering why my success rate is 100% Comments ? P.S. I am a fundamental trader using only 20% of my capital on deposit going with the Trend only.
Not to burst your bubble but one strategy won't cut it. Being dynamic in that you can trade multiple time frames in different market types with or without indicators also adding a bit of fundamental knowledge is the only way I survive. And if you plan not to lose because is psychologically damaging then i wouldn't recommend fx because the market will play with your mind. Don't predict, adapt. Good luck.
don't use all your leverage and prepare for the most awesome price action you'll see in most markets. truly a zero sum game where there are few winners. This forex game takes intense discipline. Please do not try to pick tops and bottoms in forex because you will be wrong more often than right if your a newb and with all that leverage its a recipe for a burnt up account. Bottom line: Fx is tough prepare to eat sleep and breathe price action.