Money Management and Trading sucess

I wanted to post this in the experienced traders section because thats where the new traders will look. Am I experienced? I think so, I have been watching pips for quite a few years now. Am I successful? Well I’m still working on that, I’m not full time yet... but it is defiantly in my future. You will have to wait a bit longer for my post in the success stories.
What I wanted to address to the beginning traders that are just starting out there, getting a taste of this business is that proper money management can not be over emphasized. You can not spend too much time on calculating risk and reward. A lot of pundits quote that 95% of all people lose ALL of the money invested in forex. It seems like a lot, but I kind of think it is true. I think most of this 95% go through seven stages. The first is discipline, they find or try some method that they don't quite understand but they follow exactly and to the letter. And what happens next is success, followed by overconfidence, greed, disbelief, panic, and then finally my favorite, despair. At this point they close their accounts and declare to the world that forex is a scam.
I have tried manual trading, and have realized that it is not for me. I have been fortunate that my college years laid a good enough foundation in programming to translate my trading style into a EA that trades for me. It is the same method, but by removing the emotion from the equation, I am way more successful. Not that I don't still get those feelings of overconfidence now and then, resulting in letting my emotions lead me to break the rules, which always cost me real hard dollars in un-necessary losses.

The development of proper money management will lead you to rules that cannot be broken, no matter what. If you are strong enough to do it manually, go for it. If not, try to learn programming and make the computer do it for you. However you do it, YOU have to develop rules that fit YOUR style of trading. What are YOU willing to risk, what do YOU want to make. I’m not sure but the experienced traders that hang out here would probably agree with me that they spend more time figuring out how to minimize potential losses, than calculating how quick it will be to retirement.

Which also leads me to another tip for the beginners. Do you really think that someone who has translated a successful trading methodology into a working EA (or trading robot) would possibly even consider selling the program? I mean if it really does work, why would you sell it for a few hundred dollars. If it works it will make millions (isn't that why you want to buy it), so how could anyone put a price tag on it. Or risk the source code of it out in circulation. The EA's that really work are not for sale. Maybe they will sell the trading signals for a time to fund their own accounts. Because if they work in the long term, the creator doesn't need the money or the potential liability of selling it. Develop your own method or buy signals from promising providers. Learn the price action and keep studying. It is possible

nice post, but it belongs in the new trader section...

I guess Fortuna mentioned why he posted it in here in the beginning of the post 'I wanted to post this in the experienced traders section because that's where the new traders will look. '

Anyhow... Great post!

Thanks!

''Maybe they will sell the trading signals for a time to fund their own accounts. Because if they work in the long term, the creator doesn't need the money or the potential liability of selling it. Develop your own method or buy signals from promising providers. Learn the price action and keep studying. It is possible''


I agree. If I ever find a way to take my strategy and implement the logic into a trading robot, I would not have to trade anymore. But unfortunately, programming a strategy based on OHLC or pure data still lacks an innovative edge and decision making skills that humans are capable of. To make a successful EA..... It wouldn't be for sale but at least you would be lucky enough to find the signals.. The next best thing

gr8 so what is our EA name and how much is it sold for? 😁

I agree with you on the money management part, and I also think that a lot of these robo cops are crap, but some might work, and to sell it is a good ideal, because sometimes the people that make them never traded a day in their life, they are really smart sophisticated nerds, so the program works, so if they sell it for a $1 and a million people buy it they just made themselves a million dollars but to try and trade they would lose so they might be using they own EA you never know.

thulfaqar posted:
    gr8 so what is our EA name and how much is it sold for? 😁

😲? What u are talking about?

im never gonna share my logics and ea lol i believe the right ea is with the right moneymanagement :) like my quote :P 'MM IS THE KEY' i did one demo for a friend to let him know how easy forex is :) https://www.myfxbook.com/members/redline187/just-testing-again/31332 i can make 8000+ pips if im trading 20hours a day lol