Looking For Six Serious Forex Traders Who Want To Improve Their Results !!!

If I get six forex trader's who post here and are serious in improving their results by spending at least 6 hours a week learning how to trade in a winning way consistently I will expand on the topic that I started.

Here is some good information that you can expect from myself. Not all the material is mine however there is no copyrights on good common sense in trading and rules that work do work for all of us including myself.

Enjoy and feedback is welcome.

Business of Trading
Trading is a lot more than buy & sell signals
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« Welcome to Biz of TradingTraders’ Lessons Learned
By arash7st
40 Lessons Learned

(insightfull collections of wisdom from successful traders)

 

All of the successful traders I know blew out their account at least once before becoming consistently profitable. Trading takes guts, and by following these “lessons learned” you are being given the key that will allow you to embrace risk and take the necessary chances required in the pursuit of capital gain. That is, you will feel more compelled to take a chance, because you know you are also going to fight to protect your capital. You won’t freeze and lie helpless as it is whittled away.

 


Trading, in my opinion, is the greatest business in the world. By following the lessons learned below I hope that you can stay in this business as long as you choose.


Lessons Learned





1.Trading is simple, but it ain’t easy. If you want to stay in this business, leave “hope” at the door and stick to your stops.

2.When you get into a trade, start looking for signs right away that you are wrong. If you see them, then get out before your stop is hit.

3.Trading should be boring, like factory work. If there is one guarantee in trading, it is that “thrill seekers” get their accounts ground into parking meter money.

4.Amateur traders turn into professional traders when they stop looking for the “next great technical indicator” and start controlling their risk on each trade.

5.You are trading other traders, not the actual stock. You have to be aware of the psychology and emotions behind trading.

6.Be very aware of your own emotions. Irrational behavior is every trader’s downfall. If you are yelling at your computer screen, imploring your stocks to move in your direction, you have to ask yourself, “Is this rational?” Ease in. Ease out. Keep your stops. No yelling.

7.Watch yourself if you get too excited – excitement increases risk because it clouds judgment.

8.Don’t overtrade – be patient and wait for 3-5 good trades.

9.If you come into trading with the idea of making – big money,you are doomed. This mindset is responsible for most accounts being blown out.

10.Don’t focus on the money. Focus on executing trades well. If you are getting in and out of trades rationally, the money will take care of itself.

11.If you focus on the money, you will start to impose your will upon the market in order to meet your financial needs. There is only one outcome to this scenario: you will hand over all of your money to traders who are focused on protecting their risk and letting their winners run.
 
12.The best way to minimize risk is to not trade. This is especially true during the low-volume -chop and slop- found during the afternoon trading session between 11:30AM Eastern and 2:30PM Eastern. If your stocks are not acting right, then don’t trade them. Just sit and watch them and try to learn something. By doing this you are being proactive in reducing your risk and protecting your capital.

13.There is no need to trade 5 days per week. Trade 4 days per week and you will be sharper during the actual time you are trading.

14.Refuse to damage your capital. This means sticking to your stops and sometimes staying out of the market.

15.Stay relaxed. Place a trade and set a stop. If you get stopped out, who really cares? You are doing your job. You are actively protecting your capital. Professional traders actively take small losses. Amateurs resort to hope and sometimes prayer to save their trade. In life, hope is a powerful and positive thing. In executing a trade, hope is a virus that can infect and destroy.

16.Be right on day one or get out. Don’t take a red position home overnight.

17.Keep winners as long as they are moving your way. Let the market take you out on a trailed stop.

18.Money management is the secret to success. Don’t overweight your trades. The more you overweight a trade, the more hope comes into play when it goes against you. Hope is to trading as acid is to skin. The longer you leave it in place, the more painful the outcome will be.

19.There is no logical reason to hesitate in taking a stop. Reentry is only a commission away.

20.Professional traders take losses. Being wrong and not taking a loss does damage to your wallet, mind, and soul.

21.Once you take a loss you forget about the trade and move on. Especially if it is a small one. Do yourself a favor and take advantage of any opportunity to clear your head by taking a small loss.

22.You should never let one position go against you by more than 2% of your account equity. This means if you have a $50,000 trading account, you should never let one stock turn into a loss of more than $1,000. This means if you max out your 2 to 1 margin account and buy 2000 shares of a $50 stock, you must have a stop loss of 50 cents. That is tight and bound to get hit. Do yourself a favor and buy 400 shares of this $50 stock and use a $2.00 stop to start. That is only an $800 dollar loss and gives you room to trail your stop up to break-even before you are taken out on a wiggle. Is there ever a time when it is okay to take more than a 2% portfolio loss on a position? NO! Never means exactly that. This is a maximum loss by the way. Setting up your plays for losses of 1% of your equity is even better.

23.Use daily charts to get an idea of the 30-day trend, hourly charts to get an idea of the 1-day trend, and 5-minute charts to establish your entry points.

24.If you are hesitating to take a position, that indicates a lack of confidence that is not necessary. Just get into the position and PLACE A STOP. Traders lose money in positions everyday. Keep them small. The confidence you need is not in whether or not you are right, the confidence you need is in knowing you will stick to your stop no matter what. Therefore you can actually alleviate this hesitancy to pull the trigger by continually sticking to your stops and reinforcing this behavior.

25.Averaging down on a position is like a sinking ship deliberately taking on more water.

26.Build up to a full position as it goes your way.

27.Adrenaline is a sign that your ego and your emotions have reached a point where they are clouding your judgment. Realize this and immediately tighten your stop considerably to preserve profits or exit your position.

28.Look for opportunities NOT to trade.

29.You want to own the stock before it breaks out, then sell it to the momentum players after it breaks out. If you buy breakouts, realize that professional traders are handing off their positions to you in order to test the strength of the trend. They will typically buy it back below the breakout point which is typically where you will set your stop when you buy a breakout. (In case you ever wondered why you get stopped out on a lot of failed breakouts).

30.Embracing your opinion leads to financial ruin. When you find yourself rationalizing or justifying a decline by saying things like, “They are just shaking out weak hands here,” or “The market makers are just dropping the bid here,” then you are embracing your opinion. Don’t hang onto a loser. You can always get back in.

31.Unfortunately, discipline is typically not learned until you have wiped out a trading account. Until you have wiped out an account, you typically think it cannot happen to you. It is precisely that attitude that makes you hold onto losers and rationalize them all the way into the ground. If you find yourself saying things like, “My stock in EXDS is still a good investment,” then it is time to start following the basic principals all professional traders follow. (That would be protecting your capital, aggressively cutting your losses, and letting your profits run by not giving in to the temptation to sell just because you have a quarter profit).

32.Siphoning out your trading profits each month and sticking them in a money market account is a good practice. This action helps to focus your attitude that this is a business and not a place to seek thrills. If you want an adventure, go live in Minnesota for a winter. If you want excitement, deliberately forget your anniversary. Just don’t trade.

33.Professional traders only place a small portion of their assets into 1 position. Or if they take on a large position, then they strictly limit their risk to 1-2% of their current equity. Amateurs typically place a large portion of their assets into 1 position, and they give it “room to move” in case they are actually right. This type of situation creates emotions that ruin accounts, while professionals are able to make decisions and cut losses because they strictly define their risk.

34.Professional traders focus on limiting risk and protecting capital. Amateur traders focus on how much money they can make on each trade. Professionals always take money away from amateurs.

35.In the stock market, heroes get crushed. Averaging down on a losing position is a “heroic move” that is akin to Superman taking a spoonful of Kryptonite. The stock market is not about blind courage. It is about finesse. Don’t be a hero.

36.Sadly, traders never learn the importance of “the rules” until they have blown their account out of the water. Until you “lose it all” it never seems that important to have to follow the basics of professional trading. (Cut your losses, let your profits run, etc).

37.The market reinforces bad habits. If early on you held onto a loser that went against you by 20%, and you were able to get out for break-even, you are doomed. The market has reinforced a bad habit. The next time you let a stock go against you by 20%, you will hang on because you have been taught that you can get out for break-even if you just be patient and hang on long enough. Tell that to the folks who bought VERT at $145. When is it going to get back to break-even? Well, if your timeframe is never, then you have nothing to worry about. Control your risk by sticking to your stops.

38.This next bit is brutal, but true. The true mark of an amateur trader who is never going to make it in this business is one who continually blames everything but his or herself for the outcome of a bad trade. This includes, but is not limited to, saying things like:

» The analysts are crooks
» The market makers were fishing for stops.
» I was on the phone and it collapsed on me.
» I was on the phone and it collapsed on me.
» My neighbor gave me a bad tip.
» The message boards caused this one to pump and dump.
» The specialists are playing games.

The mark of a professional, however, sounds like this:

» It is my fault. I traded this position too large for my account size.
» It is my fault. I didn’t stick to my own risk parameters.
» It is my fault. I allowed my emotions to dictate my trades.
» It is my fault. I was not disciplined in my trades.
» It is my fault. I knew there was a risk in holding this trade into earnings, and I didn’t fully comprehend them when I took this trade.

The obvious difference here is accountability. For amateurs, everything having to do with the market is “outside their control.” That is not reasonable thinking, and really just points to an individual who has, probably for the first time, had to confront their “real self” as opposed to the perfect self or idealized self they have constructed in their mind. This is also known as “living in a fog.” A person can drift around through life in their own private world, where they are pretty special and can do no wrong. Unfortunately, trading rips off this mask, because you cannot dispute what has happened to your account. This is also known as “confronting reality.” For many people, when they start trading they are suddenly confronting reality for the first time in their lives. Just to see the world as it really is requires a lifetime of training, and for many people trading the stock market is their first real step in this journey. Some people say that traders are born, not made. Not so. If you choose to see the world as it is, then you can start trading successfully tomorrow.

39. Amateur traders always think, “How much money can I make on this trade!” Professional traders always think, “How much money can I lose on this trade?” The trader who controls his or her risk takes money from the trader whose head is in the clouds.

40. At some point traders realize that no one can tell you exactly what is going to happen next in the market, and that you can never know how much you are going to make on a trade. Thus the only thing left to do is to determine how much risk you are willing to take in order to find out if you are right or not. The key to trading success is to focus on how much money is at risk, not how much you can make.

This entry was posted on December 31, 2006 at 4:22 pm and is filed under Biz, Trading. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.


The rules you have here are definitely words of wisdom. I do not agree with all of them but for the most part the are the rules that will keep people in the game and become professional traders.


Anthony Says:

January 6, 2007 at 10:50 pm
This is a very comprehensive list of success factors that more or less make sense to me. As someone who’s done trading on and off for more than a decade, I not only agree with most of these, but also can see where I should have paid more attention.

Oh, perhaps next time

pipinvestment1 posted:
    Banana Man - It is far from non-sense. I would have to agree with about 99% of those 38 statements.

Dear Will

zero is not well so just ignore him. When he is off his meds he goes into his other personality. He really thinks he can invent gold by some method only known to him. Anyone who gets in his way will receive love and kisses in the form of ramblings, insults, slurs, putdowns and whatever. He is a nice guy however he has his style and it will not change.

Good Night Edward

zzzero posted:
    

Diamond posted:
    If I get six forex trader's who post here and are serious in improving their results by spending at least 6 hours a week learning how to trade in a winning way consistently I will expand on the topic that I started.

THERE ARE FOOLS BORN EVERY MINUTE.

SO, MOST LIKELY THERE ARE AT LEAST SIX FOOLS THAT WOULD LIKE TO BE MENTORED BY A CONMAN LIAR THAT CANT TRADE.

AND, WE HAVE NO DOUBT THAT YOU WILL EXPAND ON THIS TOPIC.

CARRY ON.

Thanks For The Set Up Good Buddy 10-4

P. T. Barnum Never Did Say
'There's a Sucker Born Every Minute'
By R. J. Brown
Editor-in-Chief

P. T. Barnum is most often associated with the circus sideshow and the display of freaks. While this is true, he is also the founding force behind one of America's most famous circuses: Barnum & Bailey Circus. Barnum is also affiliated with the famous quote 'There's a sucker born every minute.' History, unfortunately, has misdirected this quotation. Barnum never did say it. Actually, it was said by his competitor. Here's the incredible story.

From 1866 until 1868 Mr. George Hull, of Binghamton, New York studied archeology and paleontology. Over this period of time Hull contemplated how to pull off a hoax. It seems that many an evangelist at the time had been preaching that there were giants in the earth. In June of 1868 Hull traveled back to Fort Dodge, Iowa where there was a gypsum quarry he had recalled seeing two years earlier. Even then, he had noticed that the dark blue streaks running through the soft lime rock resembled human veins. Realizing this its appearance was tailor-made for his hoax and it was easy to carve, Hull hired a group of quarry workers to cut off a slab measuring twelve feet long, four feet wide and two feet thick.

In November, Hull had his gypsum wrapped in canvas and hoisted onto a wagon. Since the nearest railroad was forty miles away, it proved to be a long, difficult job. He then had the slab of gypsum shipped by rail to Chicago where he had hired a stone cutter named Edward Burghardt to carve a giant. Burghardt and his two assistants, were sworn to secrecy and agreed to work on the piece in a secluded barn during their off hours and Sundays. The instructions were to carve the giant as if it had died in great pain, and the final result was an eerie figure, slightly twisted in apparent agony, with his right hand clutching his stomach. All of the details were there; toenails, fingernails, nostrils, sex organs and so forth. Even a needlepoint mallet was used to add authentic-looking skin pores. When the carving was done, sulfuric acid and ink were used, possibly smudged like printer ink, to make the figure look aged.

The giant finished, Hull then had the figure shipped by rail to the farm of William Newell, his cousin, located near the town of Cardiff, New York. In the dead of night, Hull, Newell and his oldest son buried the giant between the barn and house. They were instructed to say nothing about it and that Hull would let them know in about a year of what the next stage was.

Luckily, about six months later, on another farm near the Newell's, some million year-old fossil bones were dug up. Newspapers around the country reported the finding. Hull was filled with glee in reading the accounts.

True to his word, one year after burying the giant, Hull sent word to his cousin on October 15, 1869, to start the next stage of the hoax. Newell hired two laborers to dig a new well near his home. Newell directed them to the exact spot he wanted the well dug and went back into the house to wait -- anxiously. Sure enough, well into the day, the two laborers rushed up to the house to announce their discovery: a giant turned to stone! The laborers and both Newells carefully excavated the area surrounding the giant.

News of this amazing discovery spread throughout the valley and soon wagon loads of neighbors streamed into Newell's farm to see the giant. By mid-afternoon, Newell erected a tent around the 'grave' and started charging 25 cent admission. Two days later, the Syracuse Journal (New York) printed an article about the discovery. Being greedy, Newell raised the price to 50 cents, and a stage coach company made four round trips a day from Syracuse to the Newell farm. Thousands came every day. Among the visitors were clergymen, college professors and distinguished scientists. Before long, the expert's opinions split into two theories; one side claimed it was a true fossilized human giant and the other side pronounced it an authentic ancient statue. No one asserted that it was a fake!

About ten days after the discovery, and about the time the Cardiff Giant, as the papers had named it, started receiving national attention, Hull sold two-thirds interest in the giant for $30,000 to a five-man syndicate in Syracuse, the head of which was a banker named David Hannum. The syndicate moved the giant to an exhibition hall in Syracuse and raised the admission price to a dollar a head. Unknown to them, P. T. Barnum sent an agent to see the giant and make an assessment. The particular Sunday the representative saw the giant, the crowds were abnormally large -- about 3,000 people. The agent wired the news back to Barnum and Barnum instructed him to make an offer of $50,000 to buy it. Hannum turned his offer down.

The Cardiff Giant was the most talked about exhibit in the nation. Barnum wanted the giant to display himself while the attraction was still a hot topic of the day. Rather than upping his offer, Barnum hired a crew of workers to carve a giant of his own. Within a short time, Barnum unveiled HIS giant and proclaimed that Hannum had sold Barnum the original giant and that Hannum was now displaying a fake! Thousands of people flocked to see Barnum's giant. Many newspapers carried the version that Barnum had given them; that is, Hannum's giant was a fake and Barnum's was authentic. It is at this point that Hannum -- NOT BARNUM -- was quoted as saying 'There's a sucker born every minute.' Hannum, still under the impression that HIS giant was authentic, was referring to the thousands of 'fools' that paid money to see Barnum's fake and not his authentic one.

Hannum brought a lawsuit against Barnum for calling his giant a fake. When it came to trial, Hull stepped forward and confessed that the Cardiff Giant was a hoax and the entire story. The judge ruled that Barnum could not be sued for calling Hannum's giant a fake since it was a fake after all. Thereafter, Hannum's name was lost to history while Barnum was left with the misplaced stigma of being the one to say 'There's a sucker born every minute.'

pipinvestment1 posted:
    Banana Man - It is far from non-sense. I would have to agree with about 99% of those 38 statements.

i could copy and paste einstein quotes, does this make me einstein?

no.

bruce is a fraud.

bruce will lie his way out of a tsunami.

dont believe me?

ask him to explain to you about his 1800 sequentiallly profitable trades.

and when he is finished explaining that to you, ask him to explain why his fxmanager acct is down by 40%

he will explain everything.

ask him why he is even here at myfxbook, yet he publishes no chart at all.

he will explain.

bruce is a part of this business of trading, just like the wind is a part of nature.

this business is full of dogs.

z/.

Diamond posted:
    If I get six forex trader's who post here and are serious in improving their results by spending at least 6 hours a week learning how to trade in a winning way consistently I will expand on the topic that I started.

i double dare anybody to contact bruce about his mentoring.

he will show you fake charts, he will rattle your ear off with the most fanatastic stories about his trading successes.

anybody can produce a fake trade listing and that is exactly what bruce does.

and then ask him why his fxmanager acct is down by 40%.

he will explain that also.

z.

zzzero posted:
    

Diamond posted:
    If I get six forex trader's who post here and are serious in improving their results by spending at least 6 hours a week learning how to trade in a winning way consistently I will expand on the topic that I started.

i double dare anybody to contact bruce about his mentoring.

he will show you fake charts, he will rattle your ear off with the most fanatastic stories about his trading successes.

anybody can produce a fake trade listing and that is exactly what bruce does.

and then ask him why his fxmanager acct is down by 40%.

he will explain that also.

z.

You Are So Full Of It That A Reply Is In Order. I Never Met Such A Two Faced Con Like You. At least get your facts right. You have NO CLUE what you are doing. Your track record is one of failure. Your manners are beyond comment.

You should be more than ashamed of the garbage that you put out. You are one sick puppy. It is nice to not have you post ugly images on Oanda. Give it a rest Edward before someone calls you a LUZR !!!

Have A Good Passover and maybe one day you can set yourself free from your anger and hostility towards others. Give Mark a call and see how he really feels about you. Have I pushed your buttons enough to get you to go Ballastic. I sure hope so you LUZR !!!

pipinvestment1 posted:
    Banana Man - It is far from non-sense. I would have to agree with about 99% of those 38 statements.

i could copy and paste einstein quotes, does this make me einstein?

no.

bruce is a fraud.

bruce will lie his way out of a tsunami.

dont believe me?

ask him to explain to you about his 1800 sequentiallly profitable trades.

and when he is finished explaining that to you, ask him to explain why his fxmanager acct is down by 40%

he will explain everything.

ask him why he is even here at myfxbook, yet he publishes no chart at all.

he will explain.

bruce is a part of this business of trading, just like the wind is a part of nature.

this business is full of dogs.

z/.

Is it full moon because people seem to be so sensitive.

https://isitfullmoon.com/

I thought you two were friends? Edward sometimes you remind me another guy who just can't get Bruce off his mind. He seems to have captivated your minds. 😁 Kind thanks for the heads up anyway. Can we move on? And why would you waste your precious time trying to open a shitty demo account with a no name broker in who knows which remote place. Play some music if you like?





There was something I wanted to ask: why did you not rewrite / recreate the trading system Mr. Mark allegedly stole from you?

<b>There was something I wanted to ask: why did you not rewrite / recreate the trading system Mr. Mark allegedly stole from you?</b>

i suppose that is a valid question.

that which i delivered to mark was not, in my most sincere opinion, a finished product.

i delivered to mark that system as a sortof gift.

at one time, mark was the most kind of gentlemen to work for.

and then he opened the door of his home to me and i thought that he was helping me to complete this project.

he was helping, that is for sure..

he was helping himself to everything that i made.

that last system that i turned over to him turned a 1,000% profit in a year, it ran in an automated fashion, undisturbed, in a closet.

i have no desire to reproduce what he has.

to do that would require me to step backwards.

i am not here to make a pip.

i am here to conquer.

edward.

speki,

will you kindly ease up with all of that faggy music?

regards,

edward.

No worries Ed. Someone took the wiener out of your hotdog? Hope not.
Here's one about bondage - you sure like it - but if you call that one faggy, I'll call you ... a ... cross dressing pervert. 😄

hey, quick question...

know anything about oleander plants?

apparently, it is a very poisonous plant.

and, i understand that they are all over california.

but i probably wouldnt recognize one if it bit me.

i must seek out this oleander.

z/.

also, speki, you didnt catch the humor in my post, above...

let me try again...

hey, maybe stop playing all of those stupd kiddeee videos, ok?

😄