DislikedI've been researching trading on and off for a few years. Less more recently than I have in the past, mainly as I feel I'm going round in circles and have just absorbed to much. When I started looking it was "where do I start" I must have read everything on Babypips & similar sites twice, yet I still do not feel that I could actively trade. Had a few demo accounts, some did well, some didn't etc so just feel like I'm going round in circles. Does anyone else feel like that? By the way, I'm not talking about going round in circles to 2 months...Look...Ignored
Don't know about others how they do it, but after years of research and experience came to conclusion that as a retail trader you need to understand only two or three "principles" (not Methods) to earn 50% to 60% yearly return on your capital.
But why anyone would believe me? There are thousands of methods and millions of advices out there. We read, try to understand and test those methods before tossing them out of our windows. This may be right that no single method works in all market situations. But, few "principles" do always work no matter what market situation develops.
Principle 1> Anything without a logic or flawed logic will never work
Example1 : Long-term positions (where is the end of long-term? with reference to number of pips, time, etc.)
Example 2> Go with the trend (shorter trends start and finish before one can spot them. Longer trend give you several pip drawdowns. If you try to trade longer trend, how much you can make with a reasonable stoploss?)
Example 3> Go against the trend / martingale. (Pure suicide)
Example 4> Pyramid with the trend (Less fatal than martingaling but cannot be applied in ALL MARKET SITUATIONS)
Think critically on all these myths and argue. If you do not get to logic behind them or at least some concerns remain, throw that myth away.
In the end you will find a flaw-less method that works in every situation. This is hard work, very hard work but the pitty is other people's methods may not work for you.
But beleive me, there is an end to your going round in circles. Don't ask how I know this.
The Thief of Wall Street