I quit my job and skipped education to pursue Forex fulltime!:) What now?
- Thread starter Johnny
- Start date
For every person here telling Johnny that he should'nt waste his time and not to bother, I am dying to know... Are you guys giving him this advice because you have failed miserably and do not believe that its possible to succeed? Or are you giving him this advice because you have had great success and whole heartedly believe that its near impossible for anyone else to do what you did? Its got to be one or the other. I mean everyone started somewhere right?
You already know the answer
Best trading,
Jorge
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I do very much agree here. Learn about orders and their properties, some money management rules and then open the door. Stategies from books don't work from alone until you learn to filter them through your own window of personal experience. Start small but real! Reading is a waste of time unless you immediately look for proof of its value. The only thing you need to read are charts and the way you need to interprete them according to your developing comfort level which cannot be found in any book but only inside yourself.
Why am I hitting the books?
A basic understanding of economics is in my opinion a minimum to operate in the financial arena. If you have no clue about the effect of intermarket relationships, effects of changes in interest rates both short-term/long-term, economic indicators, inflation/deflation, basic supply/demand, etc, your chances of survival in the long run is probably weaker than one who have knowledge of it or even mastery.
One can argue that the technicals and price itself contains all information needed, but you live in ignorance if you avoid other relevant information. Looking at a chart in hindsight it is easy to point at a spike and say, XYZ happened here. While the price can live a life of it`s own in long periods of time, the fundamentals and the bigger picture will most likely be leading in the end.
I have not been reading full-time for more than 3-4 months and I plan to do so until february or so.
I don`t expect to start out a profitable trader then, but I will have a good framework to start with.
I have then read most of the recommended books on the subject, taken good notes and have all the information quickly available either through my notes or the books itself. Just the awareness of the books makes it easy for me to search out the information I seek when I need it.
Many of the books will be read and re-read after I start trading. Some will collect dust.
The case would be quite different if I actually were reading for years on and on without daring to put on a trade. I have a background in the markets already, so it`s not like I never traded.
Best regards,
Johnny
A basic understanding of economics is in my opinion a minimum to operate in the financial arena. If you have no clue about the effect of intermarket relationships, effects of changes in interest rates both short-term/long-term, economic indicators, inflation/deflation, basic supply/demand, etc, your chances of survival in the long run is probably weaker than one who have knowledge of it or even mastery.
One can argue that the technicals and price itself contains all information needed, but you live in ignorance if you avoid other relevant information. Looking at a chart in hindsight it is easy to point at a spike and say, XYZ happened here. While the price can live a life of it`s own in long periods of time, the fundamentals and the bigger picture will most likely be leading in the end.
I have not been reading full-time for more than 3-4 months and I plan to do so until february or so.
I don`t expect to start out a profitable trader then, but I will have a good framework to start with.
I have then read most of the recommended books on the subject, taken good notes and have all the information quickly available either through my notes or the books itself. Just the awareness of the books makes it easy for me to search out the information I seek when I need it.
Many of the books will be read and re-read after I start trading. Some will collect dust.
The case would be quite different if I actually were reading for years on and on without daring to put on a trade. I have a background in the markets already, so it`s not like I never traded.
Best regards,
Johnny
Unfortunately that is not the case.
Are all economists good traders? Nope.
Are all economists wealthy? Nope.
Do you need to makeup a reason for a spike? Nope.
Do you need to know what happens inside the wires before you can turn on the light? Nope.
Do you need to be a combustion engine expert to drive a car? Nope.
If all it took to be a good trader was reading a few books, then where are all those millionares?
If 95% of them lose, you need to do something a little different.
And I too agree with GermanTrader.
HolySpirit,
I agree with everything you say, but I think you are misinterpretating me intentionally.
I never said that knowledge of economics alone will make you a good trader. Perhaps it will be only 1% of the puzzle. Maybe not.
Still, I think it is mandatory information both as a trader and as a functioning member of society to have at least a basic knowledge of economics.
As for the statistics claiming that 95% of traders fail, where do they come from really? I hear it all the time and it seems to range from 80-99%. It is probably true that most traders fail, but I would really like to know for real what the actual statistics are.
Personally I think most traders fail because of various reasons and in different phases.
The first and most simple phase is when you are a complete beginner with no knowledge of the market except that it is a place where you can make a quick buck for free. When such people first enter the markets they think that reading a tip in the newspapers and following it will make them money. Maybe they get lucky, but eventually they will blow up.
When they eventually blow up and realise they are idiots, some will give up while some will persist. The ones who persist will maybe then become seduced by mentors and promising holy grail systems which ultimately will lead them to failure once again.
Other stubborn individuals that go past this phase or some that are smarter in the first place will realize that they need a trading plan and a system along with individual thinking.
After making a good system with a positive expectancy in the long run and trading it well in demo mode, they may realize that their psychological defects make it impossible for them to actually execute their system when real money is on the line, etc, etc.
There is no one reason that most traders fail, but if I were to single out one thing as I see it myself it would be lack of knowledge - which consists of both market knowledge and the most important part; self-knowledge.
Best regards,
Johnny
I agree with everything you say, but I think you are misinterpretating me intentionally.
I never said that knowledge of economics alone will make you a good trader. Perhaps it will be only 1% of the puzzle. Maybe not.
Still, I think it is mandatory information both as a trader and as a functioning member of society to have at least a basic knowledge of economics.
As for the statistics claiming that 95% of traders fail, where do they come from really? I hear it all the time and it seems to range from 80-99%. It is probably true that most traders fail, but I would really like to know for real what the actual statistics are.
Personally I think most traders fail because of various reasons and in different phases.
The first and most simple phase is when you are a complete beginner with no knowledge of the market except that it is a place where you can make a quick buck for free. When such people first enter the markets they think that reading a tip in the newspapers and following it will make them money. Maybe they get lucky, but eventually they will blow up.
When they eventually blow up and realise they are idiots, some will give up while some will persist. The ones who persist will maybe then become seduced by mentors and promising holy grail systems which ultimately will lead them to failure once again.
Other stubborn individuals that go past this phase or some that are smarter in the first place will realize that they need a trading plan and a system along with individual thinking.
After making a good system with a positive expectancy in the long run and trading it well in demo mode, they may realize that their psychological defects make it impossible for them to actually execute their system when real money is on the line, etc, etc.
There is no one reason that most traders fail, but if I were to single out one thing as I see it myself it would be lack of knowledge - which consists of both market knowledge and the most important part; self-knowledge.
Best regards,
Johnny
Whether it becomes evident that such learned information helps or not, at least in my opinion, its discouraging to not know whats going on around you. Maybe thats a personal flaw on my part, maybe I should better filter out the noise. To those giving you this advice which I do see much truth in, ask them practical questions regarding economics and finance. I doubt anyone would fail to give legitmate answers. Some things learned just come with the territory, who knows I am probably going out on a limb trying to understand things that may have no relevance to the task at hand. Once success is reached you'll probably be specialized utilizing only a very small amount of data. When your looking for something in the wrong place the best thing to do is keep looking.