True Forex Trader

Well, it’s been some time and I’m still in search for the most Profitable and Comfortable and 100% Logical Forex trading system.

I’ve been developing a lot of trading systems during my research and learning, but most of them were not meeting the goals I set: profit+comfort+logic. What I had was rather

- some kind of Profit alone - these were scalping systems, which were taking my entire day, eating my eyes off as I was staring at the monitor all day, and making me nervous about trading outcome, not to mention, canceling my normal life.

- then there were comfortable to trade strategies, usually breakout based, which required few hours of trading per day, but their performance was far from satisfactory; so my position was - why bother?

- then there were some method, which suggested trades based seemingly on no logic. Were they random? I don’t know. Systems used indicators, which importance faded in my eyes the longer I traded with them, so I stopped.

So what have I done up to now and how far am I from my own Holy Grail Forex system?

I hope not that far; and the reason I think so is because I kept notes of all the best factors which stood the test of time in my eyes and proven workable. I collected them piece by piece: entry rules, exit rules, how to determine congesting market, how to trail the stop, where to put the stop, how to take profits (additional “Ahaa” came to me yesterday, as I was learning about price and volume relationship).

What I have now is tons of pieces I’m trying to combine in to one method. Also if I happen to come across new trading strategy on the net, I already have a full pack of “spare parts”- my methods, which I can apply to the strategy to modify it to my taste.

This is probably it. The key idea to this post is: I separate every trading method I find or test to primitive parts, such as time frame, time I want to trade, entry signals, stops, trailing stops, “time to take profit” moments, “let it run” moments and then evaluate the parts I like most. I then keep them and bring along as I learn new things about trading Forex to combine in a new method and so forth. It becomes similar to a snowball.

Currently I’m  learning in depth (as deep as I can get info online ) about Support/Resistance trading - I thought I knew everything about it, but it appeared that there is more to learn, especially if you take Volume into consideration. So, I’m studying Volume and price, looking at consolidation areas and breakouts.

My tip to all who search online various educational stuff about trading: Don’t try to look only info on Forex trading, there are many other trading things like stocks, options etc, where you have same picture of buyers and sellers and supports and resistances… what I want to say, you may find more useful info on trading methods if you also read what stock traders say, they can teach you a lot, compare to that primitive (not all but on majority of webs) stuff written on Forex websites.

Good luck in building your own trading Monster!

Filed under: My trading performance