Thread: Forex, Greed and Risk

Hello everybody. I would like to tell my story and might be get an advice from seasoned traders.

After, Ive been attracted with the info about Forex... where its potential to earn money easily staying at home.

Of course it was very intriguing for me, everyone would like to earn money... or acquire Without a moment's thought, Ive opened a demo account on forex.com. And

Ive played (I intentionally use the term played as which was really nothing more than playing) knowing no rules, without reading any of that quantity of novels about trading, technical analysis, money management etc..

I was only looking at the chart and trying to buy lower and sell higher That lasted for perhaps not too long as Ive increased my deposit more than twice in only a couple days, starting from 200$ and gathering 20 - 40 pips daily
Of course, I didnt know anything about money management and opened places using 50 - 100 percent of my deposit and the depo was growing rapidly, day following day
So, the time has come then I, motivated with my demo winnings, texture myself good enough to start a account. Of course, Ive opened it at forex.com, where Ive started with demonion, and my first $2000 were put to my account
First, everything was exactly the same the very same tactics with the very same results as on demonion Ive got roughly $600 within earliest days.

And I knew about all those books on trading, on the classicists of technical analysis which all teach us how to trade improved, about magical indiors, which show where to buy and where to sell How wonderful I believed when starting to read these novels And after some studying of classical novels I decided to protect my depo by employing Stop Loss, in order to not loose all the money at precisely what a surprise was when the first Stop Loss took $1000 away from my depo!!! A fantastic defense

I believed All right, I cant win each moment, the next time Ill recover it back After reading a little more novels Ive started to use all those methods I knew from the novels in trading. But the price started to avoid all of my traps, eating my orders and Placing ITS UNBELIEVABLE! I suspected it could be a virus in my terminal transferring the price against me! It was like a card game with the computer which knows my cards

Although a little later I tried the terminal of other dealing center and everything was exactly the same, so I didnt worry about virus any more, but concerned about trading! Why the price behaviour is nothing like it was described in the novels that it doesnt obey any signs of indiors, moves contrary to the news rather than moves where I expect it to move! My efforts to save the decreasing depo were unsuccessful, and eventually Ive got Margin Call.
So my first contact Forex was badly finished and thats what the greed and risk contributes to

Could anybody tell me what Ive done wrong and how to be a fantastic trader?

Originally Posted by ;

Really, a very common story, I believe. Most traders lose their deposit. In my opinion the purpose is that you trade without any system. A trading platform is obligatory for novices, at the easiest system like #8220;to buy in the lower border of the apartment and to sell in the top one#8221;. And of course one shouldn't risk with the whole deposit.

However, actually, IT was my system Maybe it's too simple? What do you suggest me to do? You know, it was so easy on demonion... I have read some books, as I already mentioned, but it wasn't any use!!!

Thank you for information, Gwen! I think, that I should stop on some thing. I hope, that on this forum I shall find good system which will help me to know the forex market
Thanks!!

Really, a very common story, I think. Most traders lose their deposit. In my view the purpose is that you trade without any system. A trading system is obligatory for beginners, at least the easiest system for example #8220;to buy at the lower boundary of the flat and to sell at the top one#8221;. And of course one shouldn't risk with the entire deposit.

I believe it#8217;s better to not trade in flat, but look for a good tendency to trade #8211; recall that #8220;trend is the friend#8221;.
What is the flat and what is the fad in the end?
Flat #8211; is a price movement within a range between two levels, once the price can#8217;t break neither top (resistance) nor reduced (support) of them.
Trend #8211; is a directional price movement, once the price moves in one direction (up or down) from one level to another.

It#8217;s possible to gather 100-200 pips in tendency, while flat is more likely to destroy your deposit.
I recommend you to see here about flat and trend
http://www.masterforex-v.su/002_000_01.htm

Hi MinorTrend, just continue on trading till you can be familiarize yourself with the market moves, utilize indiors to learn your transactions and try to anticipate a move rather than read and react. While you understand, in time, use tight and Trade small stops? I believe everything will start clicking for you. IMHO.

Plan your trade, trade the egy.

What percentage of your account are you risking on each transaction? That is what killed you.

I guess the best way to loe supports and resistances is to look at my positions each of these is a really strong support or resistance its really difficult for the price to break it giving me profit. What do you think about? Am I wrong somewhere?

I greatly aprecciate all the support!!

PS Forgive me for the tautology ^_^

Hello MinorChant

Some things for you to consider and some golden rules I Love to follow:Always plan your trade and follow it to the letter. A consistent trading plan can take some time to develop so make one that suits your personality. Terminate your losses quickly if the trade goes against your egy. Most novices nurture losses since greed kicks in. Don't do this. Let your profits grow as the trade goes together with your own plan. Don't let fear terminate your profits prematurely. Learn everything about technical indiors and throw them off. They work in the past and the last is not an indior of their future in forex. The sole indiors I use are moving averages to show trend, pivot points to reveal daily prejudice and Chaikins volatility indior to reveal trading strength. Don't misuse the stop-loss. Take full responsibility for the trade. There are rumors that brokers search stop losses.... Don't over trade. More money is made waiting instead of actively trading. Await the right setup that fits with your trading plan. Waiting can be very boring but it pays off. Trade with the trend. Discover how to recognize a short, medium and long fashion and commerce with the trend in accore with your trading plan. Avoid the currency when it is choppy, moving backward or consolidating like the plague. Come back another day. Ensure that your trading egy clearly articulates risk v.s. reward. Don't take high risk transactions that yield low reward be sure to become familiar with Daily, 4 Hourly and Hourly charts for the currency pair you trade. This will offer you a birds eye view of what is occuring. It is bad to be in the weeds (5, 15 minute charts) all of the time. Master one currency before jumping into other currencies. Each pair has its own personality so pick one and learn it's behaviour. Consider buying insurance to limit risk and increase profits... I'm speaking about call and put options. Learn the essentials of fractal mathematics and how it applies to trading. Learn everything about patterns.... continuations, reversals, triangles. Learn everything about support and resistance. Buy weakness and sell strength... this is the MOST important concept to understand. For instance, when a currency is strongly trending it often pulls back for a couple intervals to ch its breath. This is a weakness that should be traded. Some people today ask about my normal trading day so here's todays journal... I climbed at 3am to ch the UK markets and sat around waiting until 7am for the very first trade. The installation matched my trading plan so I entered past trade. 20 pips in my prefer the market shifted and began moving against my position. 20 pips became 5 so I chased the position preserving a very small profit and paying to the commissions. (I despise loss). It was a fantastic call since the currency pair began moving sideways across the top of a service line beyond the parameters of my trading plan. I'm very happy with the trade since it went to plan and there was no loss. This really is a business after all.

Yesterday Additionally, I climbed at 3am... it wasn't until 12pm that I discovered the installation I had been waiting all day to appear. I opened the commerce together with 10 lots. It moved in my favor according to this plan so I purchased another 10 lots. 80pips later I exited the commerce a very happy man. I'm delighted to wait for this sort of commerce to appear. When it will I go all in.

I've simplified many complied concepts to some lines so forgive me if there's anything peculiar of flippant here. Should you want any clarifiion then please do not be afraid to ask.

Regards

Originally Posted by ;

Hello

A couple of things for you to think about and some golden rules I like to personally follow:

Originally Posted by ;

[*]Make sure you become familiar with Daily, 4 Hourly and Hourly charts for the currency pair you trade. This will offer you a birds eye view of what is occuring. It's not good to maintain the weeds (5, 15 minute charts) all the time.[*]Master one currency before jumping into other currencies. Each pair has its own personality so pick just one and find out it is behavior.

I have to comprehend the motion of one definite pair?
But very frequently USD and Euro going in precisely the exact same direction! Is there some connection? Are they have exactly the exact same behavior?

Originally Posted by ;

[*]Learn the basics of fractal mathematics and how it applies to trading.

Please, tell me, what can I read on the subject? I have never learned about it...

Originally Posted by ;

[*]Learn about patterns.... Continuations, reversals, triangles.

You mean patterns that reveal points of turn and continuation?

Originally Posted by ;

[*]Learn about support and resistance.

Can you tell more info on the subject? I understand a little, and I use it, but I want to find out a bit more information ot this subject.

Originally Posted by ;

[*]Buy weakness and market strength... this is the most essential concept to know. For example, when a currency is firmly trending it frequently pulls back for a couple periods to ch its breath. This is.

But how can I define those points? And where the tendency will stop? What timeframes, do I must use?

Originally Posted by ;

Many people ask about my typical trading day so here is todays journal... I rose at 3am to ch the UK markets and sat around waiting until 7am for my very first trade. The installation matched my trading plan, and so I entered past trade. 20 pips in my favor the market shifted and started moving against my own position. 20 pips became 5 so I chased the position preserving a tiny profit and paying for the commissions. (I despise loss). It was a fantastic call because the currency pair started moving sideways along the surface of a service line outside the parameters of my trading plan. I'm happy with the trade because it moved to plan and there was no loss. This is a business after all.

Yesterday I also rose at 3am... that it wasn't until 12pm that I discovered the installation I was waiting to appear. I opened the commerce together with 10 lots. It moved in my favor according to this plan, and so I purchased another 10 lots. 80pips after I exited the commerce an extremely happy man. I'm pleased to wait for this sort of commerce to appear. When it does I move all in.

Great work! I look forward to be profitable, as you!

Thanks to find fascinating information.
Hope you'll reply my queries

Best regards!!!

Hello, welcome to the forum

Your story is quite common for a new trader, and thus don't feel awful. The first thing I'd say to do is make sure you are trading on demonion, overlook live trading for a month or two.

You need to discover a egy on the internet or create your own (that is much better). It might be a good idea to start with something very simple like a moving average crossover, together with stops below support/resistance points and a trailing stop to lock in profits. In doing so it will teach you the way to be disciplined and the way to manage your account with good cash management. If you become more experienced, you will likely amend the egy a lot to one which suits you best. Just my 2 pips. .