Wrong Comparisons to Avoid for New Traders
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Thread: Wrong Comparisons to Avoid for New Traders

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    Registered user Obaforex's Avatar
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    Wrong Comparisons to Avoid for New Traders

    I will like us to enumirate wrongs comparisons often made by traders in the forex market that results in failure in the market. Below I will list some that I can think of at the moment

    1. Non use of stop loss.
    It is common to see traders in the forex market claim successful traders in the forex market don't use stop loss so they want to imitate them, then they open their chart and switch to M15 time frame with their $100 account and begin to trade without stop loss ignoring the fact that the successful traders they are comparing their self to trades on D1 time frame or higher with account balance in excess of $100,000.

    2. Copying signals or trade analysis
    It is also common to see trader who ignore or trade contrary to their trade analysis because they saw another analysis from a trader that they consider superior. Now this analysis or signal they saw from the supposed better trader may truly be good but these signals or analysis are usually posted well ahead of time, therefore before they are triggered some things might have occurred in the market that nullifies this analysis or signal that the website you are copying from may not come back to update but your own market analysis captured this recent details since you are continuously analyzing market in real time. But you ignored it and took the obsolete one because you compared wrongly

    3. Successful traders differs
    Most traders in the forex market does not even know that traders can be successful in widely different areas of this market, for instance one trader can be a successful hedge fund manager (they don't trade primarily to make profit, rather they trade to maintain value over a long period of time) and you see a day trader who is strictly in this business for daily profits trying to measure up to them by copying their strategy. Are u kidding me?

    4. The reason some traders will not use stop loss when trading in the forex market is because George Soros would not use one. Are u Soros?

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    Quote Originally Posted by Obaforex View Post
    1. Non use of stop loss.
    It is common to see traders in the forex market claim successful traders in the forex market don't use stop loss so they want to imitate them, then they open their chart and switch to M15 time frame with their $100 account and begin to trade without stop loss ignoring the fact that the successful traders they are comparing their self to trades on D1 time frame or higher with account balance in excess of $100,000.
    I think this is common, mostly coming from the traders that has lost so much amount of money, so they ain't believe that the use of stoploss will protect them against losses but they think that the use of stoploss will actually cause them to loss in the market, being a wrong trading idea actually, I like to trade with the use of stoploss, I just do make sure I am doing what I know about in the market and ain't trying to compare myself.

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    Registered user Sixteen's Avatar
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    So many contradictions about stop loss in forex and I chooses to believe that traders should stick to what works out for them. It's not everyone can use stop loss in forex and it will be hard one to force this tool to their trade. But when it comes to newbie in forex, the act of stop loss should be necessary because they are yet to get the ethics of the market and learn from experience.

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    My take on this is that traders should all time trade with the best way they have understand, there is no need using the method of other traders, obviously only the traders that hasn't been experience would buy the fact that forex can be traded with the use of stoploss and which means the trader is not making use of risk management, very bad way of trading actually.

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    Registered user ara's Avatar
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    Quote Originally Posted by Obaforex View Post
    4. The reason some traders will not use stop loss when trading in the forex market is because George Soros would not use one. Are u Soros?
    Yes I am Soros, I like your style in delivering the words in this thread. Looks funny but this topic is very valuable.
    Thanks for this thread.

    Quote Originally Posted by Obaforex View Post
    2. Copying signals or trade analysis
    It is also common to see trader who ignore or trade contrary to their trade analysis because they saw another analysis from a trader that they consider superior. Now this analysis or signal they saw from the supposed better trader may truly be good but these signals or analysis are usually posted well ahead of time, therefore before they are triggered some things might have occurred in the market that nullifies this analysis or signal that the website you are copying from may not come back to update but your own market analysis captured this recent details since you are continuously analyzing market in real time. But you ignored it and took the obsolete one because you compared wrongly
    Yes, strongly agree on this. We have our own trading rules, we have our own trading strategy. We have rules for market analysis, so we should stick to our own analysis in accordance with the scenario that we have prepared as our trading plan. No one can analyze the market with 100% accuracy, so just stick to our analysis whatever the outcome if it matches our trading scenario.

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    Registered user cutiekc's Avatar
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    Quote Originally Posted by Obaforex View Post
    3. Successful traders differs
    Most traders in the forex market does not even know that traders can be successful in widely different areas of this market, for instance one trader can be a successful hedge fund manager (they don't trade primarily to make profit, rather they trade to maintain value over a long period of time) and you see a day trader who is strictly in this business for daily profits trying to measure up to them by copying their strategy. Are u kidding me?
    I don't get, you mean all hedge fund manager don't trade to make money, they trade to maintain the value of the currency? I think the people that does that are the bigger banks they are the ones that trades to maintain value of the currency, but you have said a great thing, anything we do, no one is to compare with each other, we just have to make sure that we are on our strategy and following the rules to make it profitable.

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    Registered user Obaforex's Avatar
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    Quote Originally Posted by cutiekc View Post
    I don't get, you mean all hedge fund manager don't trade to make money, they trade to maintain the value of the currency? I think the people that does that are the bigger banks they are the ones that trades to maintain value of the currency, but you have said a great thing, anything we do, no one is to compare with each other, we just have to make sure that we are on our strategy and following the rules to make it profitable.
    When I talk about hedge fund managers and said their primary focus is usually to maintain value over a long period of time, I am not referring to value of currencies in the forex market, I am referring to value of investment of their investors. For example a deal is to be done between US and Japan and the base currency for this transaction is JPY and this transaction may take several years (say 10 years) to complete, and a fix price as been reach on this transaction. However value of currencies will not stay the same for 10 years, hence the importance of hedge fund to ensure that if $2billion as been set aside to fund this project, then even if USD drop in value against yuan before 10years hedge fund should be able to cover for the approximate drop in value.

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    I like the way the business works. No matter what, at the end of the day the trader have got to learn and know how they can trade and make money in the business. If you are comparing then you would never become successful as a trader the best thing the trader should do is to follow the right trading process. Learn and focus on your trading method, that is the way you can become profitable.

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    Registered user Lyon's Avatar
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    Quote Originally Posted by Obaforex View Post
    4. The reason some traders will not use stop loss when trading in the forex market is because George Soros would not use one. Are u Soros?
    And I don't even know how they got to know that he doesn't use one. People are different in the business with so many different approaches in trading. I have learned that the best thing I can do for my self is to always follow what method I know and the one that works for me. There is no need trying to make use of what the other person is doing whereas we don't know if it is true or not.

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    Registered user Sascha's Avatar
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    Quote Originally Posted by Obaforex View Post
    2. Copying signals or trade analysis
    It is also common to see trader who ignore or trade contrary to their trade analysis because they saw another analysis from a trader that they consider superior. Now this analysis or signal they saw from the supposed better trader may truly be good but these signals or analysis are usually posted well ahead of time, therefore before they are triggered some things might have occurred in the market that nullifies this analysis or signal that the website you are copying from may not come back to update but your own market analysis captured this recent details since you are continuously analyzing market in real time. But you ignored it and took the obsolete one because you compared wrongly
    i've been in this stage too and i often did this when i wasn't sure about my analysis and tried to find some references from other traders. i didn't do this randomly because i always followed certain types of analysis directly from roboforex analyst team which updated regularly everyday. i think this could be wrong or right depending on whose or which source we're following or copying.

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