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My Own Forex Journey 2 (What type of trader am I?)

Discussion in 'Forex Trading Systems and Strategies' started by Forexwatchman, Nov 13, 2009.

  1. Forexwatchman

    Forexwatchman Sergeant

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    So my birth into the forex market was on 4/03/2009, through buying the FAP Turbo software for $149. That purchase led me into an overwhelming amount of knowledge that I had never even given notice to before, knowledge FAP Turbo encouraged me to explore. It was overwhelming, and I placed a call to FAP Turbo to ask them a question about the MT4 platform. I had to leave the person I called a message and that led to an agent for Stellar Forex Consulting to call me back. Looking back it is so crystal clear that I was about to become shark bait, but at the time I was told they were looking to work with people one-on-one and boost their performance and that I would someday be another success story for FAP Turbo, all good things that I desperately wanted to hear.

    So I ate it all up like an idiot, or the other way around. I dropped $2,900 on their educational/coaching coarse, or whatever it was suppose to be, and that got me a once a week coaching session conducted over the phone and via joingotmeeting.com's internet link so I could see what he saw on his own computer as he rushed me through what turned out to be basic fundamentals of forex chart reading. What I learned from them is still debatable, I mean the information was accurate and useful, but it was baby steps, stuff I would have learned on my own for free by going to babypips.com (which is actually what I was instructed to do the first session we had).

    So I did it, I listened and tried to apply it, and looking back the money spent on that course probably would have been the same amount I would have squandered in the real market, because I was so new and naive towards the whole trading environment itself. I mean as we all know its a freaking war zone out there and one minute you're thinking you're about to sniper off a quick profit and the next you're dead in the water. In other words I'd of paid for my forex education in the market or through a service, even if the service was severely over-priced. I had no clue how to do anything. So then came a long way during those 8 weeks of training.

    Getting to the point, I made nothing out of it. But what I failed to gain monetarily I have more than made up for in experience. I found that I have a tendency to dread trades that take longer than 24 hours to close. If my take profit isn't hit within those 24 hours I start to second guess, which leads me to reevaluate my initial analysis and a tightening of my stop loss which leads to more losses even though the initial analysis turned out to be correct a day or so latter. This is what turns most people off from the forex market and leads them to say its too volatile to be a viable income. This remains to be seen for me personally.

    So what type of trader did I discover myself to be?
    1) Obviously I need to be in the market for a short period of time - 24 to 48 hours. This means I am comfortable placing lots of trades and having a T/P of 50 pips or less.
    2) I’m good at my overall analysis, but need to work on my entry and exit strategy. I need to get away from always setting a S/L that’s equal to or sometimes greater than my T/P since that logically has no longevity to it.
    3) I am able to be in front of my computer almost all the time and therefore all the benefits that go along with that are in my favor.
    4) I love researching the market and reading up on analysis and opinion forums. I wake up in the morning to Felix and Sir Pipsalot and then travel over to dailyfx.com before opening up MT4.
    5) Overall I'm addicted to the concept of trading, I'm definitely not in this on a whim or mild curiosity, and I believe it can work. The only thing I'm lacking (the reason I'm putting these threads on FPA) is to explore and finally develop a disciplined strategy that I create own my own, so that I will believe in it and understand it enough to stick with it till this forex adventure either crashes or soars.
     
    #1 Forexwatchman, Nov 13, 2009
    Last edited: Nov 15, 2009
  2. Ricex

    Ricex Sergeant

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    Looking like a very cathartic experience for you, sorry to hear of your initial starter problems.

    You bring up a lot of interesting points....

    Your analysis and your strategy have to be proven before you will have any real confidence in it (I think you know this already). If it was tested and you had proof of how the winning trades play out you would be less likely to be panicked out of the trade because you would know it's limits. This takes time, a lot of time but the fear will subside eventually if you give your strategy a proven track record.
    The moving of SL's is a sign of this fear and tells me that you are not mentally prepared to lose for whatever reason. A SL is a declaration of how much you are ready to lose on the trade, if you move it then the amount of money was to important for you to let go. Reduce your stakes until the original SL distance can be kept, (so your trade has room to breath and comply with your strategy) but will allow you acceptable levels of loss.
    Have a look at your TP levels as well and be honest with yourself about there reality. Are they based on 'hope' or a proven track record.

    Entry points are crucial to a good trade. Identify your target area and let the market come to you, as the price nears your ideal entry level come down to the 5min charts to watch the price action and pin point your trade as precisely as possible. A good entry will save you hours of candlestick watching agony.
    Yes, a trade where you are willing to lose more than win is just ridiculous, save yourself some time and just send the money gift wrapped directly to your broker.

    These are just my opinions to try and help you as you seem to be putting your heart on your sleeve so to speak.
     
  3. MattaMidus

    MattaMidus Private

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    I look at it like this. You need 3 things be successful trader. Confidence consistency and discipline.

    Confidence in you self and you strategy

    Consistency in implanting your strategy

    and the Discipline to follow your strategy to the end

    -MattaMidus
     

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