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I received an email from a friend today. I have edited it slightly to protect those that need protecting, and I hope it serves as a warning for all......
Quote:Sorry I haven't been in touch sooner. No doubt you feel like you've given me enormous amounts of help and I've just up and [censored]ed off. Unfortunately, to a degree, it's true.
I have hardly been on the computer for sometime. I lost about 70% of my trading account (not the first time unfortunately) and had to basically shutdown. I suspended my subscription to Metastock, closed down my trading account and walked away from the whole thing. Only now have I started to look at live data again through [edit: Trading Platform Provider], though it does feel somewhat pointless, I feel like a kid standing outside the lolly shop drooling but with not a "bob" in the pocket to enter the shop. Something will happen, hope is eternal.
Having been a tad jaded after being fleeced by [edit: CFD Provider] (utter bullshit, I was warned by 2 very experienced traders to be careful of them), their marketmakers are absolute white pointers, hence the reason for going back to [edit: Trading Platform Provider], at least they have DMA.
Anyway I came to the conclusion that there are 3 types or groups of individuals in the market.......
1) the 5% or so that do exceptionally well, making big big amounts out of the market, consistently. These people have "it", but the problem is they are not really interested in helping anyone to do the same. They are very discreet and that's the way they like it.
2) those people that do ok but just aren't happy or satisfied (or able) to extract the amount of money from the markets to satisfy their financial needs/greed, so they sell systems or write books to subsidize the inability, add to that that these people tend to have very large ego's. They love to be the centre of attention, so they have seminars and do lectures and sell their overpriced time
3) Me, the saps that just can't seem to get "it" and so spend more and more money on trying to find "it" by going to the ego's in group 2 all the while giving the trading bank to group 1
The whole thing, as I read it again does seem cynical but I am sure there is some truth to the entire theory. Either way I'll just be looking in the shop for a while I guess. Damn, and I thought I was able to do so well at it or at the very least make a consistent small amount.
Bit by bit I WILL GET "IT", just a matter of time.
wabbit :D
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Rank: Advanced Member
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Wabbit,
It is sad to read the message from your friend, but it probably is the "real" stuff happening in the past, now, and in the future..... it really a matter to the person who belongs to which group of people if he / she opts for trading becasue of his / her greed or so.....
Having read this, I remember that I have read a message written by a person called Costa who is probably an Australian too, in the Woodie's CCI Club on 38 Steps To Becoming A Successful Forex Trader, though I am not trade forex now. But it is good to have a look.....
sa
Quote:
38 Steps To Becoming A Successful Forex Trader
1. We accumulate trading information - buying books, going to seminars and researching.
2. We begin to trade with our 'new' knowledge.
3. We consistently 'donate' and then realize we may need more knowledge or information.
4. We accumulate more information.
5. We switch the currencies and time frames we are currently following.
6. We go back into the market and trade with our 'updated' knowledge.
7. We get 'beat up' again and begin to lose some of our confidence. Fear starts setting in.
8. We start to listen to 'outside news' & other traders.
9. We go back into the market and continue to donate.
10. We switch currencies and time frames again.
11. We search for more trading information.
12. We go back into the market and continue to donate.
13. We get 'overconfident' & market humbles us.
14. We start to understand that trading success is going to take more time and more knowledge then we anticipated.
--------------------------------------------------
Many Traders Will Give Up At This Point As They Realize That Forex Is Not As Easy As It Looked And That Hard Work and Study Will Be Required
But Some Do Not Give Up ...
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15. We get serious and start concentrating on learning a real methodology.
16. We trade our methodology with some success, but realize that something is missing.
17. We begin to understand the need for having rules to apply our methodology.
18. We take a sabbatical from trading to develop and research our trading rules.
19. We start trading again, this time with rules and find some success, but overall we still hesitate when it comes time to execute.
20. We add, subtract and modify rules as we see a need to be more proficient with our rules.
21. We go back into the market and continue to donate.
22. We start to take responsibility for our trading results as we understand that our success is in us, not the trade methodology.
23. We continue to trade and become more proficient with our methodology and our rules.
24. As we trade we still have a tendency to violate our rules and our results are erratic.
25. We know we are close.
26. We go back and research our rules.
27. We build the confidence in our rules and go back into the market and trade.
28. Our trading results are getting better, but we are still hesitating in executing our rules.
29. We now see the importance of following our rules as we see the results of our trades when we don't follow them.
30. We begin to see that our lack of success is within us (a lack of discipline in following the rules because of some kind of fear) and we begin to work on knowing ourselves better.
31. We continue to trade and the market teaches us more and more about ourselves.
32. We master our methodology and trading rules.
33. We begin to consistently make money.
34. We get a little overconfident and the market humbles us.
35. We continue to learn our lessons.
36. We stop thinking and allow our rules to trade for us (trading becomes boring, but successful) and our trading account continues to grow as we increase our position size.
37. We are making more money then we ever dreamed to be possible.
38. We go on with our lives and accomplish many of the goals we had always dreamed of.
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Rank: Advanced Member
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Thats a good summation of the problems faced by traders. I like it.
I have yet to make the leap into the Forex markets, but I watch Patrick's blog with interest (intrigue? curiosity? amazement?) and monitor his performances.
In general trading terms, I think the progression from step 35 to 36 is the hardest because step 34 is the most hurtful. "We thought we finally had it right, but we didn't."
--
I think it is also refreshing to have in the open, a post about how much people can actually lose in the markets. I am sick-to-near-death of hearing about, "How I made x-million dollars" and "Trade my system to freedom" etc. In reality, I think more people lose money than make money (or at least more people lose big than make it big).
It's just a shame that snake-oil salesmen are allowed to have their name splashed all over the web with their "success" pages but we have to censor their names when they are associated with massive losses.
I would love it if the laws allowed people to say, "I traded Mr X's Trading Plan to the letter, precisely as instructed and lost everything!" and mention the name to prevent others from getting sucked into these trading traps like so many do. Unfortunately, those that do find themselves open for libel cases against them etc and someone who has already lost everything doesn't need that sort of grief.
Again, is it a case of Caveat Emptor?
wabbit :D
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Rank: Advanced Member
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Great post Wabbit... Tell your friend we all start off that why at first. At least he can see the hpye about the market now. Thats the blessing.
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Rank: Advanced Member
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Thanks for the post Wabbit,
Its all too real.I, like he have stood at that window many times(3-4) and am standing at the window now.I have accumulated lots of battle scars where each time I manage to last a bit longer,maybe one day it'll all fall into place.
What I do is don't look at the market at all do a little travelling and get a taste for the finer things in life and then built another stack and do it all over again.The " all over again"does not include the blowing yourself out of the game;that just happens to be unintentional. I just don't think theres instant success you have to work at it and is not a place where you arrive and your there you have to constantly need refine and fine toon this and that etc.
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Rank: Advanced Member
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Thanx sports...
I have never been out of the game, so to speak. I take a haitus every now and then; I am in one now as my attention is distracted from the markets by me setting up the business and university study etc
I have had some big individual losses but nothing has ever FORCED me from the market. I think this is because I have never gone for the "big-kill" or the "get rich now" strategy. I am still young (enough) to build my wealth over time.
I don't NEED a million dollars tomorrow, so I have no pressure to make money quickly. I can take time to smell the roses, go on holidays and do the finer things in life. I quit working to go to university (with no income for two years) How many people can afford to do that?
Although I may be a bunny, I learned from a tortoise, the slow steady progress will always win the race!
I feel sorry for the people fleeced out of their money by unscrupulous dealers, marketeers and merchants but ulitimately we are the masters of our destinies, so must take some (all?) responsibility. (My friend is now reflecting on how much he was responsiblity he carried and will eventually come to the understanding that only he was responsibile for his actions.) I have little sympathy for the greedy! (Not a personal attack on anyone in this thread but a general statement).
Bad luck affects everyone at some point in time, we must be prepared for this. More often than not, the astute trader/investor has planned for the rainy-day and yet many quick-fire traders don't have a contingency plan. That's when the biggest losses are realised which will force us from the market.
I have met some people soooo blinkered by the prospects of unlimited gain potential, they have become blind to the 100% loss potential. No rational person (?) would risk everything to make their gain? But some do...
wabbit :D
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Rank: Advanced Member
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Wabbit,
I share your view.... personally, it took me a long time to learn to be a "tortoise" instead of being a "rabbit" (not Wabbit !! :wink: ) .... my trading record was a bit of roller coaster ride with big jumps and falls, fortunately I am still alive here and learn the following:--
- Trading is a probablility game - admitting wins but also losses;
- Reakoning the above, improve the trading skills by increasing the chance to win;
- Patience;
- Discipline, discipline and discipline
- Money management
All in all, discipline is the most important factor to me... I always say to myself, you may miss a good trade, but don't be too brave to enter into the market if there is no signal to do so with your trading system (that has a proven good win-loss ratio)
.......
sa
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