why short term trading won't work?

[andrasnm]

First off there are some short term traders/speculators that seemingly beat the odds. This is contributed to gambling theory and smart gambling instincts. Usually short term traders can plod along making their 30-50 pips a day and one day they blow 500 pips by freezing, not getting out of losing positions etc. I have seen it all, I have been there myself.
I have scalped listed stocks on wall street, traded options and futures in the Chicago Board of Trade pits and day-traded at home. I think I know what I am talking about...I have been working on Robertson Stevens Trading desk as an IT guy, in San Francisco before they were closed down by their bank parent.
Short term trading is based on indicators and charts, these charts either work of they do not. Most indicators are lagging and possess zero predictability value. In fact my trading philosophy and philosophy in life is you can never tell the future, for a few minutes is the same impossibility as telling the futures for weeks or months ahead of time. There are two ways to trade successfully.
1) arbitrage
2) trend following
I have a free website and just finished a book on trend following (turtle trading) for the forex markets.
Using the Turtle trading – Trend Following methodology serves a unique purpose, it allows a small trader trade forex like a hedge fund with 10k-20k risk capital which is unheard of any other market!
The book is only available in a hardcover version NOW but it is coming to amazon and all over online and offline, worldwide..

Andras Nagy
THE TURBO TURTLE: Trend Following for the Foreign Exchange Market

 

[pahj]

i was thinking i was about to read an advise from a professional trader but was disappointed, any way, good luck, hope your book sells well

 

[Geno88]

MAN YOUR TOTALLY CRAZY!!!!I am a Successful trade that is trading short term....and in profit....You my friend is clearly someone who is just trying to sell a crappy book and have others lose their hard earned money.....LOL

 

[Stony]

I agree. If there is a way to trade forex profitably at all, it is daytrading, because the worldwide forex market is based on short term trading. I do know a few successful daytraders, but no successful long term forex trader.

Regards, Stony

 

[Ricex]

I'm feeling more and more sorry for the poor newbie forex trader that really wants to learn but has to wade through such turgid statements written as if the forex gods themselves had carved them in stone.

If your knowledge of foreign exchange markets is limited to not understanding the viability of using long term trading as part of your portfolio, as in the use of different currency interest rates to your advantage, then I would advise you to maybe read up on it as your trading education is lacking and it's showing in your opinion.

 

[Stony]

Hi Ricex,

I´m not a forex god (which I deeply regret...), but I think it´s ok to post my personal opinion, based on my own forex experience over the last 4 years.

Regards, Stony

 

[Ricex]

I wasn't questioning your right to an opinion Stony, I was pointing out it lacked understanding of how longer term trading works, and it's potential in ones trading arsenal.

As John Milton once said: ...... opinions in good men is but knowledge in the making.

If you wish to expand your understanding of this type of trading then there is a quite good and simple explanation here:

Carry Trading | Long Term Forex Strategy

 

[kelvinlbl]

hi, I have been trading for sometime and still not able to be profitable in short term. Can anyone share some the experiences and methods..Thanks.

 

[clem699]

First off there are some short term traders/speculators that seemingly beat the odds. This is contributed to gambling theory and smart gambling instincts. Usually short term traders can plod along making their 30-50 pips a day and one day they blow 500 pips by freezing, not getting out of losing positions etc. I have seen it all, I have been there myself.
I have scalped listed stocks on wall street, traded options and futures in the Chicago Board of Trade pits and day-traded at home. I think I know what I am talking about...I have been working on Robertson Stevens Trading desk as an IT guy, in San Francisco before they were closed down by their bank parent.
Short term trading is based on indicators and charts, these charts either work of they do not. Most indicators are lagging and possess zero predictability value. In fact my trading philosophy and philosophy in life is you can never tell the future, for a few minutes is the same impossibility as telling the futures for weeks or months ahead of time. There are two ways to trade successfully.
1) arbitrage
2) trend following
I have a free website and just finished a book on trend following (turtle trading) for the forex markets.
Using the Turtle trading – Trend Following methodology serves a unique purpose, it allows a small trader trade forex like a hedge fund with 10k-20k risk capital which is unheard of any other market!
The book is only available in a hardcover version NOW but it is coming to amazon and all over online and offline, worldwide..

Andras Nagy
THE TURBO TURTLE: Trend Following for the Foreign Exchange Market

In as much as i agree with you that nobody can predict the future and that indicators are not that reliable.True that the best way to trade successfully is not only knowing the right trend but taking position at the right time.I disagree completely with you that short term trading cannot be successful.No matter the time frame at which you operate,the most important thing is to have a good and reliable trading plan that fits your person.You were not successful in day trading probably because your system was not reliable for day trading.