5 Things I have learned in 5 years of trading!

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Farm Yard Forex

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1. A broker is not that important. 90% of them are fine so use whatever one you are comfortable with. I use ******* as I use Bitcoin to deposit and withdraw and it is very quick, also the tree planting is good. It all helps.

2. Social media “gurus” often don’t actually trade themselves and make their money conning the vast majority of people coming into trading looking for quick cash – don’t get caught out!

3. Nobody can give you a ready-made strategy and then send you off to start making money. A strategy is something personal to you in terms of time, risk tolerance, psychology, speed of the market etc. Take bits from different sources and then take the time to formulate and test your own strategy that fits your own parameters. There is no “one-size fits all” in trading.

4. Trading of any type is NOT A GET RICH QUICK SCHEME! It takes time for the above reasons to first learn the basics and then formulate a strategy, test it thoroughly and implement it.

5. Set achievable goals – when you first start break even at the end of the month might be a great target for you and that is fine. Not losing long term is priority number one to protect your capital. Don’t compare your 1000hrs of practice to another person’s 10,000hrs. Be better than you were 6 months ago and focus on that.


What else have you all learned in your time trading?
 
Great post! I’m glad to see that you mentioned setting acheivable goals because that affected me personally in the beginning and I don’t think it is talked about enough. I did realize that a lot of work went into trading, but I expected to make more at first and I think a lot of beginners think that way as well.
 
sebking1986 said:
1. A broker is not that important. 90% of them are fine so use whatever one you are comfortable with. I use ******* I use Bitcoin to deposit and withdraw and it is very quick, also the tree planting is good. It all helps.

2. Social media “gurus” often don’t actually trade themselves and make their money conning the vast majority of people coming into trading looking for quick cash – don’t get caught out!

3. Nobody can give you a ready-made strategy and then send you off to start making money. A strategy is something personal to you in terms of time, risk tolerance, psychology, speed of the market etc. Take bits from different sources and then take the time to formulate and test your own strategy that fits your own parameters. There is no “one-size fits all” in trading.

4. Trading of any type is NOT A GET RICH QUICK SCHEME! It takes time for the above reasons to first learn the basics and then formulate a strategy, test it thoroughly and implement it.

5. Set achievable goals – when you first start break even at the end of the month might be a great target for you and that is fine. Not losing long term is priority number one to protect your capital. Don’t compare your 1000hrs of practice to another person’s 10,000hrs. Be better than you were 6 months ago and focus on that.


What else have you all learned in your time trading?
Click to expand...

a broker is important .....pick a big one with good track record ...most beginners fail right there ....

N
 
Many brokers are fine but not 90% of them are honest.
All brokers semms fine when you still expect high returns from trading, like 30% pa or more.
When you are seasoned and you lower your expectations you appreciete the value of a cheap broker.
 
CavaliereVerde said:
Many brokers are fine but not 90% of them are honest.
All brokers semms fine when you still expect high returns from trading, like 30% pa or more.
When you are seasoned and you lower your expectations you appreciete the value of a cheap broker.
Click to expand...
Agree with you on the last line!
 
I think brokers are important and we never should go with an unpopular broker. Always choose a broker with a good reputation and have trust in the market.
 
I also think that choosing the right broker is important as far as trustworthiness goes. It is true, though, that - as long as you manage to avoid shady ones - the broker is not what makes or breaks your progress, as beginners sometimes think.
I like that you mentioned social media gurus, there are many of them who are not genuine indeed.
 
You are quite right. A broker does not win you money, but your strategy does, A true trading guru is hard to find, and it is never a get rick quick scheme. Trading needs trader to invest their time. We often ignore these facts, which we should not.
 
Not sure you are right regarding the first observation. There was noticeable improvement in performance when I found ECN brokers that works with solid liquidity providers as execution quality in tough times offer matters and can constitute your trading edge. I think it depends on the type of strategy though
 
These are excellent truths, and what I would add is Risk Management. If you can master this, you have a chance of truly learning how to trade successfully.
 
There is much to learn in trading.

I like to keep things simple.

Be confident.

Stay Tuff.

Never Give Up.
 
Last edited:
kevinkdog said:
Nice top 5! I'll add one:

Most people should not be trading at all. Whether it is poor psychology or poor "technical" skills, most people would be best served sticking to buy and hold.
Click to expand...
Not a bad point. It certainly takes a certain mindset and ability. But then some struggle with buy and hold even though I would suggest many should be investing rather than throwing money into interest-less savings accounts that fail to beat inflation.
 
To add to my original point about trading taking time - I think a big mistake many make is that they blindly go into using signal services out of a desperation to make money without consideration for what type of trader they are and how much time they have to dedicate to trading. It might be a scalping strategy but they can only commit to swing trader lengths of time at the charts and this means they end up missing winners and thus increase the variance of their results.
 
no_frame said:
Agree with 4th point the most but there are so many who think we can make easy money in forex which is not so. One needs full dedication, knowledge and patience to earn big here.
Click to expand...
Honestly social media is full of these types. The issue is there are so many sharks capitalising on the pandemic and seeing so many out of work and desperate. They sell forex as something that is as easy as opening an account and money just floods to you when we all know the reality is quite the opposite!
 
Forex experts have long identified the causes and manifestations of common mistakes made by novice traders. The two main reasons for these mistakes are greed and fear.
Beginners very often close trades too early, seeking to lock in small profits. This is fear. As a result such trader often misses an opportunity to make a really significant profit on his deal. The other extreme is when a beginner in pursuit of super profits does not close the transaction against all forecasts and against the market trend. This is greed. As the result a profitable deal goes in the red.
A fairly common mistake - not wanting to fix the loss, the trader holds unprofitable transaction in the hope that the market will change in the opposite direction. Such tactics often only increase losses.
One more common mistake is trading too aggressively. Many beginners start to open transactions with the whole amount of their deposit thus exposing themselves to maximum risk.
 
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