Trading For Living

[downtrend]

Frankly to tell you, you don't need a very large account to trade for living. 10k account are enough to trade for living. The question is what kind of living you are expecting from? What kind of strategy you are using? For instance in my country, USD 800 is good for normal lifestyle. So it means, you needs income of USD 200 per week. Let's say you make USD 2 per pips, in 8-10 trades per week, you need an average of just about 10 pips per trade. Learn to protect your assets before earning, learn to profit small 1 before big.

Indeed, once you make this decision then its simple math to set your target and start trading to achieve that target, but before this becomes possible, you really need to become a good trader with consistent and proper profitable track record.

 

[NicholasM]

Each and every trader who want to start his journey in the FX World, wants to make his life from this market but in practical world it in not possible for each and every one to be successful, so as a trader you also need to be prepared for the losses also, and everyone make mistakes in this market but the person who learn from his mistakes is the one who succeed in this market.

I believe that if you are to succeed in Forex Trading, then you must follow a few rules. At the top of that list would be the ability to make hard decisions. Most failed traders drop out of the market because they failed to make the hard call. Yes, because sometimes a trade can go terribly against you, or at least seem to go terribly. And in such circumstances if you do not make the right call, (close the position/continue holding), then things could actually turn out worse, or worse still turn a profit position into a loss position.

 

[NicholasM]

Indeed, once you make this decision then its simple math to set your target and start trading to achieve that target, but before this becomes possible, you really need to become a good trader with consistent and proper profitable track record.

And one of the best ways of developing a profitable track record is by coming up with a trading philosophy. No ill thoughts, but when a trader gets to the market without a plan, then he/she is definitely likely to fail. A plan involves first identifying you trading time-frame--are you going to do it on a daily basis?, weekly? etc. Secondly, are you a swing trader?, momentum trader? or the quantitative day trader? and then of course there are issues like keeping the discipline and avoiding emotional trading.

 

[iMusingKiMi]

And one of the best ways of developing a profitable track record is by coming up with a trading philosophy. No ill thoughts, but when a trader gets to the market without a plan, then he/she is definitely likely to fail. A plan involves first identifying you trading time-frame--are you going to do it on a daily basis?, weekly? etc. Secondly, are you a swing trader?, momentum trader? or the quantitative day trader? and then of course there are issues like keeping the discipline and avoiding emotional trading.

Yes, you need a very good trading plan and understand what type of trader you want to be and you can feel comfortable with. There is no chance at all you can eliminate all emotional and mistakes. The only way is you know when to shut down your screen.

Yesterday I was having a bad day because of emotional, not on impulsive trading but unfulfilled emotions. I miss a good trade on EUR/USD because it moves too fast when it break outs as I planned for an entry above 56. 1 Mins and it goes to 80 and I am late of 24 pips. I start to became emotional and made a bad trade on OIL. I have a trading plan only to buy after breaks 44, but because of unfulfilled emotions, I trade it on 17. It breaks 44 very late evening UK time which I should have 200 pips profit. After the OIL bad trade, again I ignore Cable when there's a good clear opportunity. I realise my decision making was bad yesterday so I just leave my screen. Remember, go away from screens when you feel isn't right, otherwise you will keep chasing the loss and making more and more bad decisions.

 

[iMusingKiMi]

I believe that if you are to succeed in Forex Trading, then you must follow a few rules. At the top of that list would be the ability to make hard decisions. Most failed traders drop out of the market because they failed to make the hard call. Yes, because sometimes a trade can go terribly against you, or at least seem to go terribly. And in such circumstances if you do not make the right call, (close the position/continue holding), then things could actually turn out worse, or worse still turn a profit position into a loss position.

Trade don't always go terribly wrong if you have good plan, it is mindset and human emotional problem which go terribly wrong. Most trader couldn't take losses when they actually realized the trade already against them and setup already breakdown. This is the most serious problem I think in my opinion, even myself was the same when I was still in -ve accounts. A good trading plan always start with the risk of the trade, then only you will have entry price and lastly profit.

 

[downtrend]

And one of the best ways of developing a profitable track record is by coming up with a trading philosophy. No ill thoughts, but when a trader gets to the market without a plan, then he/she is definitely likely to fail. A plan involves first identifying you trading time-frame--are you going to do it on a daily basis?, weekly? etc. Secondly, are you a swing trader?, momentum trader? or the quantitative day trader? and then of course there are issues like keeping the discipline and avoiding emotional trading.

Currently I'm not a full time trader and neither do I have such intention. As trading can be done full time even if you have a regular job or work so I'll continue it as part time. I'm a swing trader and trade on daily time frame with price action strategy.

 

[NicholasM]

Currently I'm not a full time trader and neither do I have such intention. As trading can be done full time even if you have a regular job or work so I'll continue it as part time. I'm a swing trader and trade on daily time frame with price action strategy.

Exactly with the keyword there being price action strategy. In such a case, you find out that your decision making becomes much easier and not haphazard.

 

[iMusingKiMi]

Currently I'm not a full time trader and neither do I have such intention. As trading can be done full time even if you have a regular job or work so I'll continue it as part time. I'm a swing trader and trade on daily time frame with price action strategy.

Price movement is driven by human being or more sensibly to describe is trader all around the world. This is why Price Action works in trading. Bank, hedge fund, professional trader looks for opportunity daily, hence I am not sure whether they still works on Daily Chart and I don't trade daily chart. But frankly to tell in my mindset, it is impossible that what they have did yesterday still same decision to BUY or SELL more today. To me, Price Action trading is more likely to describe as playing a seesaw games. You saw in last 15 mins, 10 people walking towards left to sit on it, but only 2 people walking towards right. Where will you choose to sit on if you wanna win the game? But are those 10 people who choose to sit on left side will still do the same tomorrow? And this also explain the question that I always see, why SUP and RES line will get respected.

 

[jkm]

I wouldn't trade for a living. Trading is my side plate. I like having back up plans.

 

[jkm]

I wouldn't rely completely on trading for a living...