i can confirm that experience play the biggest role in your tradin' success....u wont be able to get out just before the shite reverses and get in at a bottom when you are fresh...seein' and decryptin' reoccurrin' behavior , recognize when a pattern is the right pattern and not a false move, be able to calculate the odds before initiatin' your pos and when is or is not time to get out is what's all about...especially on index futs where a 5min candles can whisper u somethin' when is formin' but tell u a whole different story when complete.
It is IMPOSSIBLE to make money in the markets
- Thread starter Ripley
- Start date
I agree. I sucked at forex, and find futures much easier to trade, and only became profitable after switching from forex to futures. I also find futures easier to trade than stocks. I still trade forex occasionally, and, for some unknown reason, now find trading forex simpler since trading futures.Quote from CFerret:
It was very surprising for me to hear that US index futures are the hardest markets to trade. A year and a half ago I started trading FOREX, spend almost a year without any positive results, tried to trade futures (YM and ER2) and finally became moderately profitable.
Now I think that if these markets are so hard, if I try some other I would probably become not just profitable, but SUPER profitable in other "easier" markets.
Could anyone please explain why exactly futures like YM are considered so tough and which markets are considered to be easier to trade?
P. S. Actually even more interesting queston is what people who so strongly believe that profitable trading is impossible, do on forums dedicated strictly to trading?
Yes. Although because most new users probably try similar methods and have similar fear>failure reactions I suspect that most find similar markets "hard."
One post here then done for the weekend. 
I always find it amusing when some say this or that is impossible to trade, this is easier etc, etc.
Without getting into what is tradable be who and what is not, just let me say this reminds me of Michael Jordan. I think Mike was thinking it would be easier to smack a baseball around, go sit down, get up catch a couple balls, go sit down, get up smack a grand slam, go sit down .............. now how cool would that be rather than running up and down a basketball court?
Boys and girls find your knitting and stick to it. just because you or i or others have failed at one thing does not mean it is impossible for others. LOL
i can tell just from reading some responses that the main reason some failed trading certain instruments is because they gave up to soon. NO ONE said this was easy. LOL
I always find it amusing when some say this or that is impossible to trade, this is easier etc, etc.
Without getting into what is tradable be who and what is not, just let me say this reminds me of Michael Jordan. I think Mike was thinking it would be easier to smack a baseball around, go sit down, get up catch a couple balls, go sit down, get up smack a grand slam, go sit down .............. now how cool would that be rather than running up and down a basketball court?
Boys and girls find your knitting and stick to it. just because you or i or others have failed at one thing does not mean it is impossible for others. LOL
i can tell just from reading some responses that the main reason some failed trading certain instruments is because they gave up to soon. NO ONE said this was easy. LOL
Quote from CFerret:
Hmm... I will probably appear a complete amateur, but it all sounds like a kind of Mumbo-jumbo for me.
I mean how can this knowledge be aplied to real trading?
How does it not apply? New traders seem to think buy low, sell high is all there is to trading but there's so much more. It's about buying at the lowest risk price and selling at the highest return price (or vice versa for shorts).
A couple examples for NYSE:
-You are a momentum breakout trader. You are building a position in XYZ as it starts looking ready to run. Now put in bids also down 10c, 20c, and 30c in case of a large sell print. If you get a fill then you have a great average that allows you a wider stop, and higher profit if the stock really does break out. It also allows you to add more on the breakout at higher prices because you have the wider stop. This just gives you that little edge over the other breakout traders.
-You are a pairs trader, and you have a core position that you trade around in a pair. If you envelope both stocks all day you can occasionally get a great print to get a better average on your pair, again allowing you wider stops and more profit when the pair contracts. A little edge over the other pair traders.
Both of those examples use price improvement which other markets don't offer. I made living off the specialist handling rules for the last 4 years. The recent NY changes have made the strategy not worth it for me anymore, although still profitable.
A dated Nasdaq example from 1999-2001 was when there were many ECN's (8 or 9) and day traders all had access to different ones depending on the broker. Not many people had access to INCA which often meant you could pick them off for 20-30c after the market has moved. An example of an innefficiency that is now pretty much gone.
These are the kinds of methods that people use to make a consistent living in trading. It all applies!
I think it's all about finding your niche. Some may be good at stocks, others good at forex, and others may be better at futures.
There are many ways to win. The most important rule, IMHO, is trading small enough to allow for a large drawdown, in case that happens. You also want reasonable stops, but not too tight. Allow for noise of at least a daily range.
Another tip is to refine your win/risk ratio, and make it no less than 3:1. If you find yourself losing most trades, then you may need to adjust your win/risk ratio to 5:1 or even higher. Example: buy limit order at 23.50, sell stop at 22.50 with a sell limit at 28.50 would give you a 5:1 win/risk ratio.
Refinement takes time and PATIENCE is the key. Make sure you have a money management and trading PLAN and STICK TO IT!
There are many ways to win. The most important rule, IMHO, is trading small enough to allow for a large drawdown, in case that happens. You also want reasonable stops, but not too tight. Allow for noise of at least a daily range.
Another tip is to refine your win/risk ratio, and make it no less than 3:1. If you find yourself losing most trades, then you may need to adjust your win/risk ratio to 5:1 or even higher. Example: buy limit order at 23.50, sell stop at 22.50 with a sell limit at 28.50 would give you a 5:1 win/risk ratio.
Refinement takes time and PATIENCE is the key. Make sure you have a money management and trading PLAN and STICK TO IT!
By giving you larger wins to cover the losses.
Note if you have to increase your win/risk ratio to more than 8:1, then you need to rethink other parts of your trading, such as improving your entry and exit points OR changing to trading a different instrument.
No one thing can make you a winner. Trading is a maze, and you must make the right turns to get to where you want to be. There is more than one way to get there AND there is more than one way to get lost (or fail). IOW, you must find YOUR OWN WAY.
Again, trading successfully also takes patience. It's nearly impossible to have patience if you are hell-bent on daytrading or short periods of time. Give your trades time. A successful trade may take from a few days to a few months.