You Cannot Beat The Market

Dear Diary,

I have been practicing Forex for 2 weeks now and I have made more profits than losses. But....if I were to close my current open positions now, I would be making more losses than profits. Get it? It means, I have opened positions that I thought would be in my favour. Perhaps I was wrong or there is not supposed to be any perhaps at all. I was simply wrong because I still do not know how to read the charts. Not yet, perhaps?

How are you my dear Diary? You have been the person I speak to mostly. All the times, I always have you to speak to about my predicaments. You have not grown tired of me, have you? I bet you have not. I am good here, Alhamdulillah. I am officially out of job and I am still waiting for the result of my jobs applications and interviews. Right now, I am not sure if I want to take a full time job or not. My mind is on Forex and I want to master it. On the contrary, I have to pay my bills and put food on the table. We will see what I will do next ok. Sit tight and enjoy the roller coaster ride with me Diary. 

I have been reading too much perhaps, because right now I am simply confuse with my trading strategies. All these while, I practice trading Forex like a day trader. It means I came into the market today and I came out of the market today; same day trading. Same day trading has to be done with you sitting infront of your laptop or pc and watch the charts go up and down and you have to make a quick decision whether to enter the market or not. That was what I did. Whenever I entered into a position, I usually close that position after I make $1 profit the least. Most of the times it is like that. I did it often. At a time, I could be trading 5 to 10 contracts. If I make a profit of $1 per contract, that would be $10 for 10 contracts. For that kind of profit, I do not have to stay long in the market. I stay for 5-15 mins and exit once I made that profit. They are not very significant, but I still make profit and most importantly, I do not make a loss. 

For the past 2 weeks, this is the trading strategy I have followed. Although I have left some positions open until today, this is the strategy that I have gotten comfortable with. However, this kind of strategy usually makes a trader refuses to leave his laptop/pc. It can become addictive and unhealthy. You are so engrossed in your trade that you do not have time to do anything else. 

I came across a website of this long time Australian Forex trader. He writes a lot about Forex trading in his blog and I assumed he is a professional trader. Now, his advises are to trade Forex like a sniper instead of a machine gunner. It means, open a position and let it be in the market for awhile so you can let the profit grow. He advises to use the longer time frame charts instead of the shorter time frame charts because longer time frame charts are more accurate. There are more to say about his methods but I have noticed that most of the experienced traders especially the ones in the Europe prefer to trade with the longer time frame charts. that means, they stay in the market for quite sometime before they pull out of the market. 

I am practicing the latter strategy now and I am a little bit discourage. You see, I am an impatient bitch when it comes to get things done. I like to see my profit margin rises quickly instead of having to wait for days or weeks to see it rise. I prefer actions and adrenaline pumping activities instead of knitting or gardening. It does not suit my personality. But...they said it is safer and that is the correct technique of trading if you want to be professional. I am confuse, really I am. And that is why I have 21 open positions now. Hahaha.....

But, I am not feeling anything about it because this is simply a demo account. I am trying to get it right Diary. Most importantly, I am looking at what are the best trading strategies that suit me. It takes practice, experience, experiment, discipline and patience. It is just two weeks. I still have a long way to go. The video that I have posted below, says a lot about Forex trading. You just cannot beat the market. If you think you cannot make a decision or a forecast of the market, then don't trade for that day. Wait for another day because the market opens 24 hrs a day five days a week. Do not simply trade simply because you want to trade. It is all up to you. Nobody can make you a good trader except yourself. From now on, I simply want to keep it simple. I will choose a strategy that suits my personality.