Just HOW do you make money in the markets?

[Highlander1]

Hello,
I'm trying to figure out which route to go to take a shot at making consistent money trading. I've been reading a lot of these posts here, and basically it seems like there are quite a few opinions on how NOT to make money. For instance: day trading-no way 'cause your computer/system/execution/bankroll etc... can't compete with the big boys & market makers; buying a canned system (i.e. "AbleTrend")-no way, 'cause if it was that simple everyone would be doing it, or, too expensive and trend following using EMA MA's is just as good & a lot cheaper; using " 'bots " for a fully automated system-no way, Star Treks' Mr. Data would have a hard time designing a good one;

And on and on and on...

So everyone, is ANYONE making money, and how?

I'm thinking a swing trading time frame, to help eliminate the execution headaches with active intraday trading; seems like it has become a high stakes video game rather than a exercise in strategic thinking. Options maybe?

Thanks in advance for your input!

 

[Mr. Charts]

Welcome to t2w.
Have a look at the thread linked in my signature.
Read thoroughly then test it for yourself extensively over a period of time BEFORE starting to use it live with real money and small position size.
Richard

 

[donaldduke]

Hello,
I'm trying to figure out which route to go to take a shot at making consistent money trading. I've been reading a lot of these posts here, and basically it seems like there are quite a few opinions on how NOT to make money. For instance: day trading-no way 'cause your computer/system/execution/bankroll etc... can't compete with the big boys & market makers; buying a canned system (i.e. "AbleTrend")-no way, 'cause if it was that simple everyone would be doing it, or, too expensive and trend following using EMA MA's is just as good & a lot cheaper; using " 'bots " for a fully automated system-no way, Star Treks' Mr. Data would have a hard time designing a good one;

And on and on and on...

So everyone, is ANYONE making money, and how?

I'm thinking a swing trading time frame, to help eliminate the execution headaches with active intraday trading; seems like it has become a high stakes video game rather than a exercise in strategic thinking. Options maybe?

Thanks in advance for your input!

Highlander1,

Welcome to Trade2win.

Traders are making money across all time frames, with automated bots and otherwise. However typically most traders have only one or two styles they focus on, for example i am a purely mechanical day trader. However i will never say it is not possible to trade in other ways as clearly many people make money with completely different methods from mine.

Swing trading is a good style of trading for most people, and if this style of trading fits your personality and objectives then it will be right for you too.

Hopefully some of the expert swing traders here can give you some good advice on how to start out. Although trading is very personal. Your way of profitable swing trading is likely to be unique to you. But you can use ideas developed by others to build your own trading plan. These ideas can all be found freely on the internet or from trading books.

There many snake oil vendors lurking on trade2win, they disguise themselves as profitable traders but they are really out to con newbies with worthless courses, seminars, systems or coaching (which is how these charlatans really make their living).
Typically the crap they peddle will reveal nothing more than anyone cant find freely on the internet or from reading the best trading books.

 

[Croupier]

Hello Highlander,

There are MANY ways to make money in the markets! In this forum you will find profitable strategies! All is right in front of you, BUT you have to invest time and trade it with small money to find out if it suits you. Maybe you work the full day, so there is no way to daytrade. Maybe you have a part time job and its possible to daytrade. Find a strategy that suits your life!

Every system you learn WILL make losses, dont change the system because of that. Losses are part of the game, again, focus! There is no easy way, find yours and make money.

In general: The trading system is not the problem. You have to learn how to overcome the human nature, your emotions. There are many profitable systems, but only a few profitable traders.

Good luck, it is a process to become a trader.

 

[meanreversion]

Just approach it as you would a start up business.. there is initial outlay, research, steep learning curve and so on. If you think you're going to become rich overnight, you'll risk too much.

 

[Highlander1]

Welcome to t2w.
Have a look at the thread linked in my signature.
Read thoroughly then test it for yourself extensively over a period of time BEFORE starting to use it live with real money and small position size.
Richard

Thanks for the reply, Mr Charts.

I hit your thread link and read about your 3 trades with the charts that showed where you entered and exited for your gains. Now, don't take this the wrong way, but looking at the charts you provided, especially the 2nd and 3rd charts, it looks like you left a lot of money on the table. I know it's next to impossible to pick the absolute top (or bottom) of a price trend, but looking at the charts it seems like you didn't get in until the last 10-20% of the trend. Is that how it always goes for you and your trading style? Is it because you are focused on trading 1 minute bars and not looking at the bigger trend for the day or half-day? Again, not trying to disparage your trades-which, after all did give you a profit-just trying to get a grasp on what I can realistically expect to get out of a trend.

Thoughts?

 

[dimsdaletraders]

heya Highlander1

Thought I'd answer this seeing as I'm in a similar position to you, just starting out, and the thread by Mr Charts is one of the ones I'm learning from, as I eventually want to widen my trading arsenal to intraday trading.

If you go to the first post on the thread you'll see it says:

QUOTE: "The method I’m going to show [...] is not necessarily about trying to find the beginnings and ends of trends, although it does sometimes indicate the end of a move. This is about taking bites out of trends repeatedly and consistently."

Hope that answers your question?
regards
Tess

 

[DionysusToast]

My estimate is that there is are 4 people on this site that are actually making money from trading.

Therefore - asking that question on this site will not get you the answer you need.

In fact, I'd say that leaving the internet well alone may be the best thing you can do in your search, either that or stop trying.

 

[zupcon]

In fact, I'd say that leaving the internet well alone may be the best thing you can do in your search, either that or stop trying.

That is the best advice I've ever seen on a trading forum.

 

[Prawnsandwich]

Thanks for the reply, Mr Charts.

I hit your thread link and read about your 3 trades with the charts that showed where you entered and exited for your gains. Now, don't take this the wrong way, but looking at the charts you provided, especially the 2nd and 3rd charts, it looks like you left a lot of money on the table. I know it's next to impossible to pick the absolute top (or bottom) of a price trend, but looking at the charts it seems like you didn't get in until the last 10-20% of the trend. Is that how it always goes for you and your trading style? Is it because you are focused on trading 1 minute bars and not looking at the bigger trend for the day or half-day? Again, not trying to disparage your trades-which, after all did give you a profit-just trying to get a grasp on what I can realistically expect to get out of a trend.

Thoughts?

Just a quick comment on this - you should try to get your head around risk to reward ratios rather than just straight forward % gains and how this ties in with money management ......eg if you are risking only very small amounts you can use leverage to increase the overall size of the trade .....so maximising actual gains....

Also, start a journal / write everything down - what you method is, what your rules for entry, exit, stop loss, why you are entering any particular trade, before and after charts and review of the trade after exit

Sounds like a lot of effort, but it really is critically important.....plenty of material on here on both of the above points...

 

[SteamRoller]

My estimate is that there is are 4 people on this site that are actually making money from trading.

Therefore - asking that question on this site will not get you the answer you need.

In fact, I'd say that leaving the internet well alone may be the best thing you can do in your search, either that or stop trying.

I too would agree that your final sentence is likely to be excellent advice.

However, your assertion that there are 4 profitable traders on this site is wrong. I have met more that 4 people from this site who are profitable traders.

 

[DionysusToast]

I too would agree that your final sentence is likely to be excellent advice.

However, your assertion that there are 4 profitable traders on this site is wrong. I have met more that 4 people from this site who are profitable traders.

8 posts on this forum & you have MET 4 people from here who have proved they are profitable ?

You do realise this isn't a dating site for trader groupies don't you ?

Reminds me of as chick I nailed the night I borrowed my mates Ferrari...

 

[Splitlink]

I don't think that you should worry about the financial credentials of those who post on here. If you do that you'll need the patience of Job and unfailing belief in the honesty of everyone. Who needs it, anyway? What are needed are ideas that you, yourself, can work on.

I've worked on plenty of the ideas put forward on p-bars. IBs, patterns of all kinds. All of them are missing something and need adaptation to whatever you have in your mind to do but, nevertheless, they are ideas with certain merit and may well not have been spotted on your own.

I don't think that trading can be done without the internet, these days, anyway, unless one is a dinosaur and they are, even, before my time.

 

[SteamRoller]

8 posts on this forum & you have MET 4 people from here who have proved they are profitable ?

If knowledge, experience and ability in trading was linked to the number of posts someone had made on this site, then you'd be making another good point, however it isn't, and you're not!

 

[zupcon]

I don't think that trading can be done without the internet, these days, anyway, unless one is a dinosaur.

The comment didnt concern execution, it was made with respect to trading related information.

 

[searchlight]

The comment didnt concern execution, it was made with respect to trading related information.

still inaccurate in my view. Not only in trading; in any field if you are seeking a knowledge internet is great (mostly free) source. To advise someone not to utilise this source is a little bit strange.

 

[zupcon]

To advise someone not to utilise this source is a little bit strange.

There's at least 3 of us on this thread who understand why its not such a great idea. Why would you wish to confuse someone with noise ?, its irresponsible to mislead people in that way.

 

[searchlight]

There's at least 3 of us on this thread who understand why its not such a great idea. Why would you wish to confuse someone with noise ?, its irresponsible to mislead people in that way.

some people have a great gift of talking; without saying anything.

 

[Splitlink]

If knowledge, experience and ability in trading was linked to the number of posts someone had made on this site, then you'd be making another good point, however it isn't, and you're not!

Phew! I thought you were talking to me for a second.

 

[Splitlink]

The comment didnt concern execution, it was made with respect to trading related information.

I think that that is a harsh criticism of the internet.