Trading Forex

[FlirtLife]

Maybe but it's irrelevant. Losses will be small while gains are much larger. Everyone loses, the difference between people who make money and don't make money is that their gains far exceed their losses.

That's where risk management and stop losses come into play and waiting for proper confirmation signals. I've improved tremendously in that area, which is definitely something I have struggled with in the past.

You are talking about a random event happening versus once a decade versus something that literally happens daily.

Saying "losses will be small while gains are much larger" is based on 1 month experience as a retail investor in Forex. Consider which is more likely: the Forex market is efficient, or a retail investor has found a way to make money for free within 1 month.

Using stop loss orders is good practice. But they are not a guarantee.

Do Stop-Loss or Limit Orders Protect You Against Gaps?

If you are worried about a gap down in price, relying upon the standard stop-loss or limit order as protection likely isn't your best bet.

www.investopedia.com

 

[BackInTheGame78]

Saying "losses will be small while gains are much larger" is based on 1 month experience as a retail investor in Forex. Consider which is more likely: the Forex market is efficient, or a retail investor has found a way to make money for free within 1 month.

Using stop loss orders is good practice. But they are not a guarantee.

Do Stop-Loss or Limit Orders Protect You Against Gaps?

If you are worried about a gap down in price, relying upon the standard stop-loss or limit order as protection likely isn't your best bet.

www.investopedia.com

Charts are charts bro. Stocks, crypto, forex, commodities. They all tell you the same information on them.

Either you can read them or you can't.

 

[EyeOnThePrize]

15 days isn't long enough. You need three months of solid blotter before taking the algo live, but it certainly sounds like you're off to a good start.

I was never attracted to forex since any market operation requires crossing the spread.

 

[BaronOfHair]

Are you actively working on improving your trading skills or just gambling?

This honestly started out as me gambling. I've become more serious about trading over time

 

[BackInTheGame78]

15 days isn't long enough. You need three months of solid blotter before taking the algo live, but it certainly sounds like you're off to a good start.

I was never attracted to forex since any market operation requires crossing the spread.

Working on the algo but have been manually trading. Currently on a 37 non-losing trade streak...36 winning trades, 1 break-even. Probably should have had a few more losses in there in the beginning when I had my stops a little loose and would have been stopped out before winning the trade but whatever...

Have been working on refining this and have been improving. Usually only look for layup setups...certain setups are so easy to spot on a chart, they are no brainers to take.

Also becoming more disciplined about not over trading. Some days there are no setups and that's OK. Other days there are too many setups to trade and I can't them all.

I'm new to forex but not new to trading.

 

[EyeOnThePrize]

Working on the algo but have been manually trading. Currently on a 37 non-losing trade streak...36 winning trades, 1 break-even. Probably should have had a few more losses in there in the beginning when I had my stops a little loose and would have been stopped out before winning the trade but whatever...

Have been working on refining this and have been improving. Usually only look for layup setups...certain setups are so easy to spot on a chart, they are no brainers to take.

Also becoming more disciplined about not over trading. Some days there are no setups and that's OK. Other days there are too many setups to trade and I can't them all.

I'm new to forex but not new to trading.

If you're really confident in your consistency then you should move on to sizing up and practicing scaling. Always risking 2% or similar, and occasionally risking 5 or 10% on ideal setups, pushing the limits of your BP until the books give and you're effectively market making.

We'd need more blotter metrics to make a solid assessment. Max drawdown, SL/TP, R/R, average hold time, etc. If you can average 20% per month then you'll hit seven figures in less than two years. But with a small account you should be hitting 50%+ months since slippage is a non-issue.

 

[BackInTheGame78]

If you're really confident in your consistency then you should move on to sizing up and practicing scaling. Always risking 2% or similar, and occasionally risking 5 or 10% on ideal setups, pushing the limits of your BP until the books give and you're effectively market making.

We'd need more blotter metrics to make a solid assessment. Max drawdown, SL/TP, R/R, average hold time, etc. If you can average 20% per month then you'll hit seven figures in less than two years. But with a small account you should be hitting 50%+ months since slippage is a non-issue.

That's my whole point...I am wanting to prove to myself that I can be consistent and get funded with a bigger account and trade other people's money rather than my own but keep 80% of the profit until I build up a good nest egg, put that in a Roth IRA and then keep trading out of that Roth IRA which completely negates all capital gains taxes on future earnings. Meaning no matter how much money I make, I won't be taxed a single penny on it.

Huge gaping loophole in US Tax code not enough people know about to take advantage of.

Can even start as a Traditional IRA and do a backdoor conversion to a Roth IRA and still get into that way if you are over the income limits of 153K a year(228K of married).

 

[EyeOnThePrize]

That's my whole point...I am wanting to prove to myself that I can be consistent and get funded with a bigger account and trade other people's money rather than my own but keep 80% of the profit until I build up a good nest egg, put that in a Roth IRA and then keep trading out of that Roth IRA which completely negates all capital gains taxes on future earnings. Meaning no matter how much money I make, I won't be taxed a single penny on it.

Huge gaping loophole in US Tax code not enough people know about to take advantage of.

Can even start as a Traditional IRA and do a backdoor conversion to a Roth IRA and still get into that way if you are over the income limits of 153K a year(228K of married).

Running a prop shop has become pretty easy so it's been a race to the bottom for a lot of the smaller firms. A place like Apex Trader has plenty of affordable options for six figure buying power. Although I think they're futures only. If you run your stops tight enough you could use shops that allows insane forex leverage instead of needing more BP.

 

[BackInTheGame78]

Just started my Funded account challenge with Apex Trader Funding.

First trade +$1000 before commissions, no trailing drawdown used.

Had a chance for a great re-entry after selling at the initial point on a trend line touch but didn't pull it...went up back to the initial point, could have had another 1K win.

Race to 6K now before hitting a 3K trailing drawdown.

A little upset because I had another trade marked, actually 2, on a support trend line but didn't take either and they both bounced bigtime from there. Could have been up 3-4K on the day between those.