I would like to take the time and ask all of you fellow traders a very important question.
I have already forged my long term wealth building strategy for forex trading. Due to the huge gains I saw with it near the end of last year, and the beginning of this year, I quit my full time job to actively pursue a career as a professional forex trader. Since then, I have been living off of the income I have been making using my strategy. However, for the last few months I have come into a dry spell with my system. Trades are now few and far between, and I am getting worried as to whether or not I can rely on my system to consistently make me money so I can pay my bills and live. I don’t place as many trades as I once did due to market indecision, and lack of trend. With that said, I would like to ask all of you for some advice and knowledge on the concept of CONSISTENT daily or weekly profitable trading.
I am searching for a 2nd strategy now, so I can start generating a somewhat consistent income for myself, while using my long term strategy to build my financial independence.
1. In all of your experiences and knowledge trading this market, do any of you have any idea if this is a viable concept?
2. If so, what type of trading systems/styles should I be looking for specifically? IE: scalping, intraday, etc?
3. I have been looking very seriously at momentum based strategies lately. For example, taking trades based on how fast the price moves on a certain pair, in a small amount of time. Taking small profits, and eliminating losses to a very few, and keeping those losses extremely small. For anyone who is familiar with this type of trading, whats your experience or advice on this kind of methodology?
Thank you all very much for your input. I have been a long term “lurker” and reader of FF, and you have all helped me so much in my trading career as of late. After all, if it wasn’t for all of you, I wouldn’t be driving in my new car
Any input at all would be overwhelmingly appreciated! Thank you again!
If you want to go north, would you get on the south bound train? If you got on the south bound trade by mistake, would you get off as so as it pulls into the next station and wait for the next north bound train? If you always get off a train headed in the wrong direction quickly, you won’t have much ground to make up.
There are different types of trains: local commuter, express and rocket. If you want to go north and only get on north bound trains, sooner or later you will find yourself on an express or rocket. If you get off the wrong trains quickly, you will never find yourself on an express or rocket headed in the wrong direction.
Decide if you want to go north or south and only ride trains heading in the direction you have chosen. Do not change your mind. Once you get on a train and it heads in the opposite direction, get off and wait for a train headed in your direction.
That’s it, Mate. The time period you choose does not matter. Don’t let the rat beat you.
“Look, for example, at this elegant little experiment. A rat was put in a T-shaped maze with a few morsels of food placed on either the far right or left side of the enclosure. The placement of the food is randomly determined, but the dice is rigged: over the long run, the food was placed on the left side sixty per cent of the time. How did the rat respond? It quickly realized that the left side was more rewarding. As a result, it always went to the left, which resulted in a sixty percent success rate. The rat didn’t strive for perfection. It didn’t search for a Unified Theory of the T-shaped maze, or try to decipher the disorder. Instead, it accepted the inherent uncertainty of the reward and learned to settle for the best possible alternative.
The experiment was then repeated with Yale undergraduates. Unlike the rat, their swollen brains stubbornly searched for the elusive pattern that determined the placement of the reward. They made predictions and then tried to learn from their prediction errors. The problem was that there was nothing to predict: the randomness was real. Because the students refused to settle for a 60 percent success rate, they ended up with a 52 percent success rate. Although most of the students were convinced they were making progress towards identifying the underlying algorithm, they were actually being outsmarted by a rat.”