Slow but steady wins the race in Forex!
June 1, 2006 by Trader Rich
Soul Trader, a trader I mentioned last month in a post about how he was quitting the day trader game has a new post on his site.
Here is an excerpt from my previous post:
I've been following Soul Trader's blog for some time now. He is a
forex trader from England and announced on his blog today that he is
quitting the day trading game. One of the big reasons for him quitting
is that he just cannot take the frustration and pain of discretionary
trading. He states that he will continue to trade his mechanical
system but will give up on being an "active" day trader.
http://www.forexproject.com/index.php?option=com_content&task=view&id=1648&Itemid=154
It seems that his mechanical system has been working out quite well for him. The gain on his account this month was over 45% and from his previous posts, it seems to have consistently produced profit.
His new post mentions the story of the Turtoise and the Hare, and how slow but steady wins the race. He states that, "Just an average of 9 pips a day is going to make me super rich." Now this comment may be the product of the euphoria of yet another profitable month for him but for some time now, I am agreement with this. I was just thinking about this today at the gym and wondering which is more realistic, my 60 pip target a week or a 240 pip target a month. These 2 targets are basically the same but how I go about trading to reach these targets would be different. To make 60 pips a week, I think about making over 10 trades a week using 15 minute charts. On the other hand, to make 240 pips a month, I think more along the lines of a making a couple of trades a month trading longer term charts.
I'm at a period right now where I'm definately not consistently profitable (far from it) and I'm unsure of whether trading short term charts is the way to go. I just don't know what to do right now.
I have to accept all of this as a continuing journey, one in which all of this frustration is teaching me something. Trading is certainly one of the toughest things to be successful doing in my experience.
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hi there, just thought i’d drop by - my advice would be that in 90% of cases your system isnt at fault - it’s you thats at fault.
thats why i reccomend a mechanical system - you cant mess with that if it’s truly mechanical.
my own problem with daytrading was always the same - patience and discipline - that is the demon i have struggled with for 5 years and you will struggle too until you find a totally mechanical system.
one that cares not about news or world events - one that you dont care when it loses and dont feel elated when it wins - thats when you are a true trader imo.
the weird thing is that when you find true discipline you suddenly discover more winning ways in the market that you thought were possible. - weird.
good luck anyway with your journey
Thanks Soul…. I’ve been following your blog and I certainly am struggling with the same demons. I am technical in nature and I always am searching for that truly mechanical system. I was reading about your success with your system and I was happy to hear that. It still gives me hope;;; Stop by anytime.