Daily Forex Trading System – Hint You’re Lying [RANT]
This article starts with a rant…. The resources I recommend are near the end of the post.
I’m going to start with a warning about day trading. It’s this – Most people who make 100 pip a day claims, don’t actually make this… I know you are probably thinking that’s an obvious statement, but I’m going to quickly explain how they can actually “prove this!” The method is 2 fold, the first involves using a relatively small time period. I want to meet the person who has made 100 pips a day, consistently for a year! Even 6 months would be incredibly impressive… But 2 weeks? 1 Month? No I’m afraid you do not have my respect.
There are a few general rules that I really like when it comes to day trading. These I found originally here and I’ve posted the image below for your reference. They are 11 rules that you should read before starting trading each day. This includes: Not an investment; this means you aren’t going to be in this position for a long time, remember that this is day trading and not swing trading, you are looking to get in and out very quickly and as a result don’t think of this as a stock investment, its not. At the same time you need to read rule 2 – Day trading is not gambling. Nor should it be thought as.
You can see the remaining 9 rules below, I highly recommend you read these on a daily basis before you start trading in the morning and if you feel yourself slowly drifting away, take 5 minutes out of your day and re-read these rules. I personally have this poster in my office where I trade, right on my peripheral vision, meaning if I ever start to make too many trades or think of them as gambling & don’t review they properly I catch myself looking at this poster and stand up, stretch and take a 10 minute break. It’s all it takes but it might save you a lot of money and time in the long run!
The second and probably most frustrating aspect to these
methods scams, is they have 5/6 accounts running different trades daily, so by the end of 2 weeks for example, maybe 2 accounts are actually on 100 pips of profit per day, the other 4 will be minus huge figures, but that doesn’t matter because we (the buyer) of the “revolutionary daily forex trading system” they are trying to sell us will only see the accounts with the 100 pips profit….
Now there is an article on dolphin trader that I actually really like, it’s talking about making 200 pips a day and as much as I like the actual method he describes, long term this is not possible, even the best traders in the world go through cold spots where they will lose a lot of money, the difference is they re-evaluate and get back on track quicker, without playing what I call “tilt trades” (This is trading huge amounts of money in comparison to your total bank roll to try and get back on track!)
Table of Contents
Day Trading vs Daily Timeframe Trading
An important aspect to remember with forex trading is the difference between day trading and daily trading. However you decide to phrase it, one type will look into the daily time-frame of currency pairs. This means the open starts at the very beginning of the day and the close is at day end. Intra-day trading is where you trade on the 1, 5 or 15 minute charts. Generally the 15 minute ones are the most profitable for day traders.
So before getting started with short term trading, you need to decide whether you are going to use the daily time-frame charts (and hence make trades that will probably last anywhere from 2 days to 2 weeks) remember this is called Swing Trading and not day trading, or if you want to look into the 5 or 15 minute charts to make quick gains but at smaller margins (and usually larger risks.)
My Day Trading Strategies
As you know if you’ve been on the elite forex blog for a while, I am currently doing a lot more short term trading, testing swing trading and day trading strategies, the keyword here is testing! Before I got full time into forex I used to be a marketer and made a lot of money from building marketing strategies that made businesses a lot of money! Nowadays I try to keep the same mindset in as much as I want to build a strategy or a system that I can replicate on a day to day basis to make small profits, but make them often. If I can make 0.1% of my total bankroll in profit per day, then that’s £200 per day which doesn’t sound like an extraordinary amount, but this is a figure can then be added to the total bankroll and the strategy and system grows…. Hope that makes sense.
If you’re reading this looking for an XYZ do this and you will profit X amount of pips per day style guide, then please leave as these don’t exist! Develop your own strategy and then refine this into the type of system you want. Over the past couple of months I’ve been putting together a number of guides to help you create your own strategies. Below is a list of the 3 articles/videos you need to read or watch to develop your strategy. Read these in depth and physically write your goals (factoring risk into the equation) and a baseline strategy, what to look for, what triggers and stop losses you should look for too, it will only take you a couple of hours but will put you on the right track to successful day trading.
- Elite Forex Trading – Day Trading Strategies
- Elite Forex Trading – 15 minute trading strategies
My final point is on scaling the strategies that work. As I previously mentioned I was a very successful marketer back in the day because I used to develop a strategy, test this to the extreme and then refine the ones that worked. This will take a lot of time and energy (and probably funds too) but once you have your strategy in place and you know it works its time to scale. Increase your bankroll, increase your trade size and continue to scale. Back to the marketing point, once our funnel was in place I would invest £10,000 in each of the most profitable ones, as I was confident I could profit a lot more than that as the funnels had been tested! Essentially, take the jump! But only once the system is in place to catch you.