Quote:
Originally Posted by ws6ta
Haven't failed at many things in life and I wouldn't call this a complete failure but I will not be trading forex again. I drained my fx account of everything it had in it today. Learned A LOT about trading, trading psychology, technical analysis, etc. I was clueless when I started. It was too easy to trade large positions on demo but with no idea of stop losses and just hoping for the best when trades go against you they will make you panic. A solid trading strategy is needed and a lot of patience. I don't have any patience for day trading lol
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Lots of people can talk the talk. Here's an example of one. You know the strategies, you know the advice. So where is the missing link? Discipline. Unfortunately, discipline in Forex trading is no different in trading Equities, Options or even Futures. So I'd say if you're going to quit FX, quit trading. Or at least take a break.
I firmly believe trading Demo is a MUST. I spent a good 1.5yrs before going live and sticking to my trading plan. I've read many books, spent countless hours in front of the computer (very much less now), and put in my time. [bold] Trading should be boring. [/bold]
You should be able to fill this out if you have a proper strategy:
What is your entry signal?
What is your exit signal?
What is your risk?
How do you determine your position size?
That's it. If you can't concisely answer those 4 questions and write it out so a 10yr old can follow it and trade your plan, then you don't have a working plan. Whether you're into Technical Analysis, Price Analysis, or Volume-Based Analysis, you still need to be able to answer those questions. (I find most difficulty in Fundamental Analysis, but even those who use FA will look at S&R areas.)
Personally, I think Forex is a great training ground for future traders. It's open 24hrs so it'll feed the need for those who need to watch the market. With enough hours logged in, they say you can get a feel of the market breathing, like sitting on the beach for hours and watching the waves. They say you need to survive trading 3 years before you can call yourself a trader.
Another great thing I find with Forex is that you can find forex brokers that allow you to open with a small account. You have $50 to play with? Put it in the market and follow your plan to the T. If you can treat that $50 like you would with $500,000, then you're on the right track.
Hope this helps. Forex is no different than any other market. It's as equally dangerous as the stock market or futures market.
And Ulic, Forex is not currency futures. We trade with pairs.
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