Forex trader profits consistent thesaurus

Consistent daily/weekly profits Joined Jul 2009 Status: Currency Acquirer 63 Posts 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 dont 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 quotlurkerquot and reader of FF, and you have all helped me so much in my trading career as of late. After all, if it wasnt for all of you, I wouldnt be driving in my new car Any input at all would be overwhelmingly appreciated Thank you again -2 SCOOPS OF PROFITABLE RAISINS I dont place as many trades as I once did due to market indecision, and lack of trend. 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 Ummm. ok, two things from somebody who is not a pro: 1) I am not sure how realistic it is to expect a consistent income from a business like forex. If you rely on a single system, Id say it is unrealistic. Markets go through different phases, change and evolve constantly. an a system may work wonderfully for six months, then stall for another six, then work again. That does not mean it is not a good system. It is a good system under certain market conditions. It is just the way things are. There may be exceptions, but professional traders dont generally expect consistent weekly income. They have negative months and positive months. and if their systems/strategies work, some of these months may be wildly positive and make up for the rest of the year. Joel Resnik says it better: Now regarding a second system. From your words it appears you have a trend-following system, so an obvious choice to complement it could be a countertrend system (for example you could develop something around momentum-based price action trades like pin bars, it seems you are already toying with that sort of idea). Without getting into details, one of the systems will tend to make money in the periods when the other one is not working too well, and viceversa. Of course the losses of one system in its quotbadquot periods will modulate the gains you are having with the other system in that very period - which is its quotgoodquot one-, but it seems that is what you are after, smoothing the equity curve. 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. Get trashed and put it all on red and spin the wheel. Better yet spend it on your basic needs and find a new lousy job. 2. If so, what type of trading systems/styles should I be looking for specifically IE: scalping, intraday, etc Trading is simple, Mate. Price goes up and down, each and every day while the market is open. There is no need to predict what price is going to do because price shows you what it is doing at all times. If you can ride a train, then you can trade. 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 wont 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. Thats it, Mate. The time period you choose does not matter. Dont let the rat beat you. quotLook, 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 didnt strive for perfection. It didnt 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. quot - P64 HOW WE DECIDEMaking Consistent Profits in a Random Trading Environment Posted 4 years ago 2:04 PM 7 September 2017 9 Comments Ever stop to think how casinos actually work and make money Casinos rake in a ton of dough every single day, despite the fact that casino operators cannot predict with certainty which person will be a total noob and split 5s against a dealer showing a 10, or who will hit the jackpot playing slot machines. How is this possible Shouldn8217t non-random outcomes lead to consistent profits And if that8217s the case, shouldn8217t random outcomes lead to inconsistent profits Casinos are able to consistently generate profits because they understand that for each game, the casino has an EDGE over the players. They understand that over time, probable outcomes can actually produce consistent and predictable results, given that the sample size is large enough. Just like a casino, traders are in the business of trying to be consistent and making money in a seemingly random work environment. The key is to think in terms of probabilities . This is actually much easier said than done, because it requires two layers of belief that you would initially think cannot coexist. The first level is on the micro, trade-specific level. At this stage, you have to understand and accept the uncertainty and unpredictability of each trade. Let8217s go back to our casino example and use everyone8217s favorite game, blackjack. While playing blackjack, you never know what cards you8217ll be dealt, nor do you know how each player will play his or her own hand. These factors have a direct effect on the outcome of your hand. And yet, there are some who make money playing blackjack because they understand that each hand is STATISTICALLY INDEPENDENT of every other hand and that over time, if they follow basic strategy, they can decrease the house edge and actually generate a small profit. The same is true for trading. We have to understand that each trade is independent of every other trade. Whether you won or lost the previous 10 trades has no bearing on the outcome of your next trade. Once you accept this, you can easily take trades without being adversely affected. The second layer of belief is on the macro level. You have to understand that over time and with a large enough sample size, the probability of profit or loss is relatively certain and predictable. This degree of certainty is based on the constant variables that are known in advance and most importantly, within YOUR CONTROL. Once you recognize the independence of each trade and believe in letting good odds play themselves out, then you8217ll have an easier time at removing emotions from your trades. For example, you8217re less likely to exit a trade early if you know that your trade idea has a good probability of winning in the first place. Similarly, you8217re less likely to fuss over the outcome of each trade if you know that given enough sample size, your trading method will most likely work out in your favor. But before you place too much confidence in your trading method, you must first make sure that it has an EDGE over the markets. We here at BabyPips have been ranting about having an edge because IT8217S THAT IMPORTANT. Without an edge, you are just like any random fool who walks into a casino 8211 yeah, you might win once in a while, but over time, the casino will win because they have the edge over you. The key to having an edge isn8217t found in paying bajillions of dollars for a 8220risk-free system8221 that can 8220guarantee profits.8221 In my hundreds of years of trading, I have found that the best traders find their edge by constantly looking for opportunities and tirelessly putting in the muscle work needed to fine tune their trading styles and methods. Bottom line is that the consistently profitable traders don8217t rely on luck 8211 they rely on the knowledge that their system works because they have put in the necessary efforts to make it work. How to Consistently Profit From Forex Currency markets provide lucrative investment opportunities and high risk. More Articles The Forex market is an electronic marketplace where banks, governments, companies and individuals exchange different world currencies. Traders generate profits by exchanging one currency for another by buying or selling a currency quotpair, quot then exchanging the second currency back for the first to profit from changes in currency exchange rates. Forex presents opportunities to generate consistent profit for savvy traders, but the risk of loss is significant. For beginners starting out in a demo account or actually trading, embracing the mentality of a disciplined and strategic trader can greatly increase your changes of consistently profiting in the Forex market. Manage Risk Effectively Risk management, sometimes referred to as money management, is one of the most important elements of ensuring consistent profitability in Forex trading. Risk management philosophies protect investors from large, dangerous losses by limiting the amount they can lose each day to a chosen percentage of their total account size. In general, disciplined traders cap their daily losses at anywhere from 2 to 5 percent, effectively limiting their strategys drawdown -- the inevitable losses that occur in any Forex system. Choose and study a risk-management system to understand how to vary your position size for each trade to effectively face the same level of risk for every trade you engage in, regardless of your stop-loss distance. Make Disciplined Decisions Never allow emotions to affect your trading decisions. Develop a strategy that works in a demo account, and employ it with disciplined precision in live trading. Stick to your chosen entry and exit triggers, profit targets, time cycles and risk-management guidelines trade after trade, using your demo account to test tweaks and changes if necessary. Making decisions based on the same objective criteria time after time allows a sound trading strategy to achieve consistent profitability. When you make last-second changes based on emotional reactions, you risk causing your strategy to lose more than it should, ultimately skewing its win/loss ratio. Think Big Picture Do not make trading decisions in a vacuum. Check an economic calendar for notable news releases expected during your trading period, and mark these times on your charts. Be aware that these news release can and do cause markets to unexpectedly change trend direction or momentum, and do not let yourself be caught unaware. When making trading decisions, always use multiple inputs for confirmation. Consult multiple indicators at once for added confirmation, pay attention to price patterns on your charts and check trend strength on multiple time frames to increase your confirmation and boost the probability of each trade working out. Understand Drawdown and Profit Every Forex strategy has a bit of drawdown, which means that no currency-trading strategy will make a profit on every trade. Train yourself to view profitability in longer time frames, such as weekly or monthly. Set your goal in terms of your overall profit factor and equity curve. Any strategy with a profit factor greater than one indicates a profitable strategy that earns more money than it loses over time. Your trading platform or broker should be able to furnish you with a detailed report of your trading statistics at any time, including your profit factor and a chart of your equity curve for any given time frame. is an A Rated BBB Logo BBB (Better Business Bureau) Copyright copy Zacks Investment Research At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1986 it has nearly tripled the SampP 500 with an average gain of 26 per year. These returns cover a period from 1986-2017 and were examined and attested by Baker Tilly, an independent accounting firm. Visit performance for information about the performance numbers displayed above. NYSE and AMEX data is at least 20 minutes delayed. NASDAQ data is at least 15 minutes delayed.