Things all Successful Traders have in Common


Same as any business market, a reasoned approach to forex trading is desired to reach the heights of success in this magical trading world. This is true especially if you wish to become a successful trader. Although there are many steps to get started with forex such as to learn forex trading online, there are some common things you may adopt. These act as the first stage of initiating a fruitful carrier while trading in the foreign exchange market.
Being educated through the right platform
As with any new business process, forex trading requires valuable education before trying your luck in this market. Some of the whole parts of the education process involve learning about the world of foreign exchange. Acquisition of knowledge and education depends upon your personality and characteristics of your trading strategy.
Trading in the forex requires character traits that are not present in every individual. This type of trading requires a particular blend of characteristics that involves intelligence, courage, patience, discipline, and insight into market or mass psychology. It also includes a particular intuitive insight into market forces and determination to achieve the impossible with the help of proper awareness and will to learn more throughout your trading career.
For those who don’t have these characteristics, it will be quite tough to remain and survive in forex with profitable income. Some people are good at art, some at business and some at trading forex. Even if forex trading is for you, turning into a successful trader will require proper education, effort, and experience in the market.
You may gain education from the following means:
  • Visit various forex related website and gain information as much as you can
  • Getting help from forex trading education by asking the experts of forex mentors
  • By signing up for various forex trading courses
  • By looking and analyzing online forex educational video’s.
  • By making notes of what you have experienced so far and what you expect to emerge out of your doings
Looking for online websites
Looking for online websites
One can easily learn about forex by visiting various informative sites. These sites are designed to provide the basis for starters and tactics for experienced traders. The information on the internet involves all sorts of matter on currency and the country or region using the particular currency. One can easily look over various fundamental factors influencing the ups and downs of the currencies.
After learning about basics, one can move onto the next step of learning about technical analysis and how traders depend on it for most of their vital decisions.
Practising what you have learned
The forex market offers a variety of opportunities for practising the terms you have learned through informative material. Many forex brokers provide demonstration accounts that contain all of the real-time dynamics of trading. The best part is that these demonstrations come with no expenses or risk of cash loss. Traders can make use of demo accounts to test and increase their knowledge, and further, develop while testing their trading strategies.
It all makes sense that one should be able to consistently profit in a demo account before starting to trade with real currencies. This ensures that you have gained appropriate knowledge about the fundamentals of forex. Such sources also provide start-up traders, the confidence to initiate their trading carrier. One should always be patient during currency trading. A perfect trader learns to trade on paper (using a demo account) before risking his real currencies.
Take precautions
Even if you are perfectly ready to enter the forex market, you should never ease into it. A successful trader is capable of trading cautiously while following the trends in the movements of currency trading and not putting entire investment money into a single trade one at a time.
You should always take time to think about investing money available with you and it is only fair to invest a certain amount of money at the start in acquiring suitable Forex Trading Education while practising trading in demo accounts. A trader might run through profitable initial steps, but in many cases, the initial margin account will be lost at some point in time.
As a skilful and patience trader, you should give time to your trading strategies. It should be always remembered that the foreign exchange market is not a get-rich-quick scheme. It can only be learned through a sufficient amount of time and experience.

Trading Duration Mistakes of Beginner Trader


A lot of people who are beginning to master the Forex market like to choose how much longer to trade? And it’s pretty normal because the mistakes of beginners trader so common and demand for forex operates 24 hours a day. And some quotes change literally once a minute. Most traders think about what is needed to ensure that important moments of currency exchange are not missed?
Most of the new trader wants to trade every five minutes. They think this method would make them millionaires soon. But they’re wrong in this case.
Statistics show that people who are trying to discover the minute chart and open trade agreements will lose their deposits after a while. And 90% of such people are there. The rest is lucky, but it’s safe to say that your investment won’t last very long.
Why is it so unfortunate? Due to psychological unpreparedness and the inability to control your own feelings, this condition develops. Traders working with minute charts should learn to decide correctly and competently. Although, many traders actually overdo their own skills, so that they can’t always make the right choice. But another critical problem exists. Many traders do not understand their rash and mistaken behaviour. There is a way out of every situation in general. It is preferable to restrict yourself to a long-term investment during the initial stages of trade. This will give a trader a more knowledgeable decision.
Even in this situation, though, the trader has to wait for a long time and he puts more pressure on his psyche. It’s worth noting that you’ll be comfortable after a certain time.
Very often, beginner traders work on the Forex markets from its most challenging parts, they go bankrupt immediately. Firstly, it is safer to open a demo account without losing huge money and test both skills and abilities.
You can say if you’ve worked at least one month, whether or not you can trade with Forex successfully.

How do you become a Successful Trader?

Learn Forex Trading Online – How To Become A Successful Trader

Everyone wants to know how to become a successful trader.
Is there a strategy that makes you very successful? Sure, a good working strategy is very important to be a successful forex trader.
But only with a good strategy, you will unfortunately not be successful. There are a few important points to become a successful trader.
I will now briefly discuss these points with you.

Good Strategy Of Successful Trader

As I mentioned earlier, a good strategy is very important.
Keep testing these especially until you make much more profit than you lose.
Get to know the forex pair well, observe this for a while very well so that you know exactly how it moves.
Keep practicing your strategy on a demo account or a simulator until it is good enough to go live!

Good Risk Management Techniques

When you don’t have your risk under control at every trade, you simply open the door for the friendly but emotional neighbors to come in and dominate in your house.
We promise it’s hard when you start trading at the Forex market.
Because it is an emotional market. It’s hard to stop trading emotionally once you’ve started or even admit you’re trading emotionally.
The game is about how much you lose or better said how you minimize your losses.
Not about your winnings. We all have that gambling friend that always talks about his big winnings.
He never tells you about the day he lost $1000 on one hand of Black Jack, does he?
A good example that shows you how important it is to minimize your losses.
You don’t want to lose that $1000 you’ve won with 100 hands, on one hand, do you?
So set your losing limit before you trade.
This has to be an amount that you completely OK with losing.
If you lose it’s just another day at the office.

Become A Successful Trader you have the right Mindset

The truth is a majority of all traders keep losing. There is a simple explanation: They enter the Forex market with wrong expectations.
They think it’s a getting rich quick system.
Traders like that have the thought by investing a thousand ($1,000,-) they will make $1.000.000 in a week.
That’s just unrealistic. The Forex market is not a casino.
This unrealistic expectation can and will work against you and will brush your whole account away in a heartbeat.
Again, don’t let emotions get the better of you. Ask yourself the question: “what am I willing to lose?”
Always have the rule that you can explain why you make a certain decision.
Your thoughts have to be robotic and emotionless.
These are the 3 most important points, of course, there are many more to be successful and profitable.
If you have questions you can always contact me.
And if you joined the forex boot camp you will, of course, learn all ins and outs!

Learn More About Forex Trading

Want to know more about trading in forex/trader mindset or do you want to join the forex group?
The forex group is mainly English!
Please contact me so that I can explain to you much more about what we have to offer.
And all your questions can be verbs.
Looking for good Forex education? Look at www.theforexscalpers.com

Successful Forex Trader Key Factors


Every successful forex trader story must consistently profit. We can all believe that the majority of traders use profits to assess another’s a success. However, success is more than just money in every effort. It also deals with your life’s happiness and passion. Most traders want to become self-employed and successful traders, but few succeed. Many traders like the excitement of trading, but trade is really far more than gambling. You are halfway to success if you have a comprehensive trade strategy, periodically assess your market and manage risk.
The trader’s success depends on whether he is prepared to succeed or not. You should keep in mind that on this planet there are no immediate forms of success. There is no freedom shortcut in Forex. All needs effort and sacrifice; in what he does both physically and mentally one should become immersed. It isn’t easy to be a successful trader, but you can do it. Profit is the path to the success of traders, which is the key factor. On the forex market, there are a few important things every trader should learn about.
The forex market is very open to individual investors due to its low commissions and charges. So make sure you know what the forex market is and how to handle the market intelligently before you begin to trade. Before you start to trade, The Forex market is changing constantly and traders must be able to understand the patterns. No patterned equation or guidelines are required to guarantee Forex success. It is instead a mixture of a number of things at once and the market traders must be cautious, creative and attentive in order to succeed.
Probably you have heard that the successful trade in currency is based on discipline, but you also need to be patient. But don’t forget! You have to wait patiently to see the right chances for yourself. You also have to be patient to compete over the loss of time. Finally, to make the huge gains, you need patience. A lot of forex traders are too often without patience and discipline. You can not keep up with a big trend— if you make a decent profit, you get excited. We can’t resist taking advantage too early of their enthusiasm-or stop too late. This leads to average income–when a significantly greater gain could have been obtained.
Trading is complex and involves the execution of as much art as science, which means that only a trade-in profit or a trade-in loss-making is created. Forex Trading strategies exist as many as market movements have their causes. And it is your job to find a way to fit your personality best. Every Forex trader must analyze his or her personality and find a way to incorporate risk tolerance and habits. This is a first but important step towards becoming a successful forex trader. You will also be asked to add a cautious strategy on risk management that focuses upon risk at trade and portfolio level, besides finding a trading style suitable for your personality which is big key factors for the successful forex trader.

Are You Planning to Try Forex Trading? – Follow Step by Step Guide

It is a common fact that people with high incomes don’t have enough time to enjoy it. On the other hand, people who have time don’t have enough income to enjoy. With the forex market, you don’t have to sacrifice your lifestyle to earn an above-average income. If you focus for a few months on trading techniques, you can make your earning dream a reality while creating both time and money to do what you want. All you need to do is to try forex trading with a few simple steps. These are also mentioned in various online training trading courses. You might also hear them from forex mentors in various articles.

Here is a short description of various steps that you need to follow to attain a good fortune in the forex market.
  1. Deciding entry cost- You might think that getting started with such a reputed and highly used trading market will cost a lot of money. The fact is, when compared to other trading markets, forex demands a minimum fee of 100 dollars to open up an account. Forex tools also allow you to open or try a demo account to make sure that you are investing in the right places before starting your trading business.
  1. Interact with customers – What if you can get access to thousands of customers who are willing to buy from you and avail of your services? Wouldn’t it be great to avoid hassles like money collection stress, keeping tough customers happy and keeping up with competitors? All this is possible in the forex market which you can operate from anywhere with the help of a laptop and a working internet connection.
  1. Gain Experience- Another advantage of forex market is that you don’t need much experience or professional training to enter the trade market. Getting a traditional job involves the accumulation of experience, a well-maintained resume and having contacts with higher officials. With forex, you can get started right away.
  1. Leverage money– A huge amount of money like $100 000 currency can be traded with a little sum of money like $1000. This is due to the reason that ease with which you can buy and sell, some broker will leverage it up to 2000 times, so with the help of just $100, you can control a 200 000 unit currency position.
  1. Predict the outcomes- Currency prices generally follow a pattern in which their prices repeat themselves. Hence it is easy to predict the outcomes of your business and investments. Methods like technical analysis help to observe these trends and profit from them.
  1. Learn from transaction mistakes- In forex markets, your mistakes won’t cost you a fortune. The best broker for forex trading normally does not charge commissions to trade or maintain an account even if you are dealing with small volumes of trade.
  1. Stay transparent- This is a huge advantage in any business or trading market. This means that you can manage risk and execute orders within seconds. Maintaining transparency is highly efficient and it allows you to avoid surprises.
  1. Gain earning potential- Forex market has a daily trading volume of over 1.5 trillion which makes it the largest trading platform in the world. Hence there is no limit to how much you can achieve and how much profit you can gain with the foreign exchange market.
  1. Make money in every market conditions- Forex market involves pairing of one currency against another, hence when you buy in one, you are selling in another. So, there’s no partiality towards either currency while moving up or down. This also means that it’s entirely up to you to choose which currency you need to buy or sell. You can make money during the growth and fall of a particular currency.
Forex is not a skill you can accomplish in one day or night. It is a whole phenomenon that needs experience, skill, fortune estimating skills and a great intellectual level for traders to succeed. Though these are important, if you follow the above-mentioned steps, you might feel at ease in the first few months of trading. With time, you can modify or enhance your strategy and convert these simple steps into modified tactics that will help you trade with better luck on currency pairs. You can also take help from courses and websites that provide information in the form of forex trading for beginners.

How to make money on Olymp Trade - Secrets, Strategies, Trading Recommendations

Considering the question of how to make money on Olymp Trade, it can be emphasized that the secrets of making money on options are much greater than successful traders. And even many newcomers to option trading believe that they allegedly possess them. As a result, there is a lot of information and video on the Internet about how to make money with OlympTrade. But, the same type of information about the earnings in the system of doubling the rates (Martingale) did not teach the beginners to trade successfully and profitably. Consider further the main strategies and the fundamental secret of earnings in Olymp Trade.

How to make money on Olymp Trade

Official site - https://olymptrade.com


How to make money on Olymp Trade


The essence of working with options is to predict changes in the price of a particular asset (currency pair, cryptocurrency, or commodity). And in order to make money on Olymp Trade, you need to correctly predict whether the price of the selected asset will rise or fall in the transaction you open, that is, the price chart goes up or down.

In options trading, you can make a significant profit simply by determining the direction of the transaction, it will become cheaper or more expensive, for example, a dollar relative to a rupee or bitcoin against a dollar.

Each trader who trades in options knows in advance what he risks and how much he can earn. Revenues and risks are recorded before the conclusion of the transaction, and the profit ratio can reach 92% on the VIP account.

Considering further how to make money on Olymp Trade, you should not look for secrets and universal methods of obtaining quick income in options trading. It is only necessary to understand that every successful strategy is always based on an exact mathematical calculation. Stable and fast earnings, even with 10 dollars, will bring only that strategy, which will provide not less than 70% of profitable transactions. And, of course, for this you need to learn how to properly understand the basics of the market trend on the stock exchange and understand who buys a financial asset and who sells.

Understanding who wins this confrontation between sellers and buyers in exchange trading will allow you to look for good points for opening profitable deals.

In order to consistently make money with Olymp Trade, it is not necessary to be an experienced trader, you need to find the best points to enter and open trades.

In order to successfully learn how to earn money in options trading, first of all you need to start by opening account for training (read the detailed instructions on how to open a training account in OlympTrade). The demo version of the account will give the beginner valuable experience in trading financial and exchange-traded assets in real market conditions, without financial risk. You will get the opportunity to test and choose the best strategy for making money in financial markets for free and without replenishing your account.

Read the full review of the Olymp Trade.


RSI strategy trading


One of the most reliable strategies for trading options Higher / Lower is algorithmic. It comes down to the formation of certain rules for opening deals and on the basis of them the purchase and sale of options is carried out. And the most competent and profitable tactic is the RSI strategy on the trend reversal.

To open a trade in the OlympTrade trading platform, an option "Higher" or "Lower" is bought, but only after the appearance of a reversal level of 30 or 70 (overbought / oversold) by the RSI indicator.

For trading, it is better to use the timeframe (time period on the chart) M1 - M5 and set the term of the transaction for at least 10 minutes. Shorter periods of time (60 seconds), widely advertised, cannot be successfully used, because they are the result of the activities of HFT (high-frequency) exchange robots.

Therefore, it is not possible for a novice trader to predict high-frequency operations and especially the direction of the trend on short timeframes (1, 2 minutes).

It is worth remembering that the rules are the main one for earning in every successful strategy, since it is impossible to trade on Olymp Trade and consistently make a profit without the transaction analysis algorithm.

It is the rules of trade, taking into account the chosen strategy, that are able to eliminate the psychological impact on the trader and allow them to start earning stably. And there are no secrets in earnings: you only need to understand the direction and dynamics of the trend of the selected asset, and correctly analyze charts on large and medium timeframes when trading.


Night Option Trading Strategy


Among algorithmic strategies, there are those that are based on the peculiarities of the movement of currency quotations in a certain period of time. For example, the currency pairs EURGBP, EURCHF, GBPJPY, NZDCHF, AUDCHF are in a narrow corridor at night and move between its borders. Due to the large spread on Forex at this time it is impossible to earn, but in the options trading it is available and realistic.

Probably, this strategy is the only opportunity for newbies to quickly make money on OlympTrade from scratch. The secrets of the strategy are as follows: after 21:00 GMT on the above currency pairs, presented in the form of candlestick charts, you should find a narrow corridor in which the price moves for more than 1.5 hours.

Then it is necessary to determine the boundaries of the price corridor, denoting them by maxima and minima. The next step is the visual determination of the configuration of the price movement channel: almost straight (side trend), upward or downward.


Opening deals


Consider how to open an option deal in OlympTrade for this strategy. This is a sale from the upper borders and a purchase from the lower ones in the case of a horizontal channel on the chart. The second option is only to sell the option from the upper boundary of the downward channel with ignoring purchases from the lower one. The third option is only to buy an option in the uplink from the lower limit. The expiration date is set in the platform for 5 or 10 minutes, depending on the price dynamics, the timeframe on the M1 chart is M5.

In the pair EURCHF and EURGBP in the evening and late at night, a 15-minute expiration is justified. It is important that the amount of the transaction on the option is set so that the trader has the opportunity to repeatedly repeat the rate of the same amount for the entire trading period. In the question of how to make money on Olimp Trade, there are no secrets in night trading, as this strategy is simple and quite effective for making $ 500 deposit.

The main thing that is in the strategy of night trading range, it is a fixed amount of the option in each transaction. You can not double the amount of the transaction and give in to excitement. This is not a game for money, but rather a painstaking work. Using this strategy, in 3 hours of night trading you can earn about 1,000 USD in Olymptrade, each time risking only 50 USD.


Combined Options Trading


There is also a combined strategy, in which for beginner traders a huge amount of uncertainties. And if a respected reader wonders about how to make money on Olymp Trade, then he can learn something useful.

This strategy consists in the use of options as a hedging instrument for intraday transactions made on Forex. Their goal is to eliminate the risk if the forecast for the transaction in the foreign exchange market is not justified. Then you should close the Forex transaction with the lowest possible profit and make a profit on the option previously opened. The option is opened in the opposite direction of the currency transaction.

How to make money, earnings on Olymp Trade - secrets, strategies, trading recommendations

The benefits of options trading:
Low minimum deposit amount - from 10 dollars.
Low minimum transaction amount - $ 1.

To earn money on OlympTrade, use the following advantages of the trading platform:

"Cancel a losing trade" This function provides the ability to insure yourself against an undesirable outcome of the transaction. If you notice that after the conclusion of a transaction, the chart has started moving (rising or decreasing) in an unfavorable direction for you, you can easily cancel the losing trade.
"Early closing of the transaction" The ability to close the transaction before the expiration of the option. The amount of the return will depend on the degree of change in the price of the asset. The maximum amount of return is up to 120% of the transaction, for cryptocurrency assets up to 100%. Due to this, you can get up to 20% of net profit without waiting for the end of the transaction.


Summary


Perhaps the information in this review will allow you to understand that the issue of how to make money on OlympTrade, the secrets to trade do not mean anything. All profitable strategies for options have long been developed, tested and successfully used in exchange trading, because financial and exchange markets have been around for many years.

Churning and Burning, A message To all The Non-Daytraders and Skeptics

So last night, I discovered a huge spike in pageviews for my post about losing a shit-ton of money (the post above, which I changed the publish date in order to keep at the top of the page). The post was getting 100's of views from the usual expected sources, like Twitter, Facebook, Stocktwits, mostly from traders within my community such as InvestorsUnderground, or people that I know personally. Then all of sudden, it was getting 1000's of pageviews at a time -- now over 40,000 in the last 24 hours. Holy shit. 


I found out this was because someone re-posted it on Hacker News. Pretty exciting to see my humble little blog that had less than 1k pageviews last month reach an unexpected audience! I wrote the post for an audience of daytraders who could relate to what I was going through, but I never considered how I would be read by non-daytraders.

I then checked the actual thread and read through a lot of skepticism and negative feedback, both regarding my risk/money management (totally deserved regarding this particular trade, although misunderstood) and my use of technical analysis. Needless to say, a lot of people, based off one story that I haven't yet finished, now think I'm just another halfwit gamble-my-savings-away day trader.*
*On some days, I feel the same way about myself.

Here is a sample of the comments:
You sound like the people I've seen on gambling forums postings about their unbeatable roulette system that they've "really won with in the long term".
No surprise to me that these guys win some and lose some. All they are doing is trying to predict the future of a stock with absolutely no knowledge other than a graph of price movement. If it's going down, it will continue to go down. It it's going up, it will continue to go up. It's a fools game.
when you do understand probability and backtest these strategies, they are known not to work in the large. Stat arb is what happens when you actually do statistics, and these days it's got only a slim to nil advantage.
Reading this sort of stuff from manual prop traders makes me laugh. It sounds so amateur hour. How in the world can manual traders ever compete against a short-term stat arb or HFT strategy? It just sounds like pure luck that any of them will make money.
We call it picking up pennies off a train track.
Yeah, I alo made a fortune in the market except for the money I lost.
Do you think technical analysis works? Look at the mountains, try drawing resistance lines, my god, you are able to predict when the mountain ridges are going to break through right past 9000! Are you Jesus?
Don't forget the magical term 'support'. Or 'Fibonacci levels'. Or 'resistance zones'. If I see another blog post by the brokerage firm I'm with about freaking 'supports' I'm going to hurl. Technical analysis puts everything from astrology through religion on to homeopathy to shame in its bullshittery.

For what it's worth, I don't take any of the criticism or snarkiness personally at all. I welcome it. I always felt like I could be someone who could help bridge the intellectual gap between the momentum/technical trading school and the probability/statistics-oriented quant school, due to my background as an online poker player who relied on observing betting patterns and probability-based methods rather than tells or "gut feel". I spent my formulative online years reading through a gambling forum where concepts like variance and expected value became casual-speak in any given thread, even if the subject was sports, politics, or food. Some of my favorite non-fiction books include Fooled by RandomnessThe Black SwanFortune's FormulaThe Quants, and When Genius Failed. I'm far from an expert on probability or behavioral finance, but I like to think I have a decent novice's understanding of both. 

From what I've observed, TA skeptics are often sharp-minded, quanty/hyper-logical types who understand probability concepts very well. They scoff at the idea of drawing lines on a chart to predict the future movement of an entity of enormous complexity like the financial markets. I totally get that, it can seem too stupid to believe. Your beliefs are further confirmed when, if you surf the web about TA, you often stumble upon wannabe traders who use charts like this:


I was once a skeptic of technical analysis too, for all the same reasons listed in that thread:
  • No predictive edge when backtesting patterns
  • Human minds are too vulnerable to creating patterns out of noise/randomness
  • Markets are too efficient for charts to have an edge, because everyone can see them
  • Every decision or governing rule seems way too arbitrary and made up on the spot, as opposed to decisions that can be systematically applied across the board

I'm not the type of guy who can just blindly say "Well it's working, why question it?"* I've had to wrestle with these thoughts in real time and work intellectually to put these concerns to rest, as another part of me just wanted to draw trendlines and press the BUY key. Additionally, I've also read a lot from well-known technicians (here's one such guy, who I highly recommend. here's another for good measure. I think this is a decent quick read too) who went through a similar process in order to intellectually accept the validity of technical analysis.
*It's my observation that the best traders never really explain the edge well beyond "because it's simple supply and demand" because it comes so naturally to them. They'll just eventually ignore you because "you don't get it" and then keep making money.

I'm guessing 95% of these new influx of readers, while probably super bright, don't trade on a regular basis outside of the occasional portfolio adjustment. And if they do trade, it may likely be through different methodology than what I employ -- which is standard price-action/sentiment based trading, straight out of the Jesse Livermore school, with some kinks thrown in to adjust for the modern era of electronic trading and an awareness (but not detailed research) of news and fundamentals to adjust for the idiosyncrasies of trading individual stocks.

Anyway, that is my effort to tell you where I am coming from. You have no idea how much I've read up on financial history, probability, and behavioral finance. You have no idea the number of profitable traders (whose track records I get to see or witness in real time) I've spoken to whom use a variety or combination of different methodologies. I don't think I'm naive or delusional. So with that said, here are a few responses to some common generalized arguments:

1) "You're just picking pennies off a train track".
This is more about my risk management and the risk profile of my trading strategy, then about technical analysis. I get that when you don't see all my results nor do you have complete understanding of the trade in question and you only read the (unfinished) story, you only see "this trader made X every day and apparently, he then lost 100X in one day". Thus you immediately think I'm one of those suckers who got owned by an unforeseen fat-tail risk -- that my trading was a miniaturized version of what LTCM was doing or something like that. Well, it's apples to oranges because I had far more control over my situation, but failed to exercise that control to keep the loss manageable. There is a huge difference between losing $ because you were undisciplined or emotionally compromised versus losing $ because you were blind to risk. You'll just have to read to the end to understand.

2) "These strategies have no edge when backtested."
I'll preface by saying I only have a limited experience in actually backtesting a strategy but here's why I suspect there has been a huge gap between the supposed "backtesting edge" and the actual results of real-time traders with a large sample of trades.
  • it's too difficult to quantitatively define a chart pattern, so only the broadest definitions get tested and the sheer number of noisy examples take down the overall expectation
  • there are too many ways to manage after the entry (like time stops vs. price stops) and I don't know how you test this. 
  • it's hard to test profit factor e.g. "this breakout can gain 5x vs. losing 1x" versus merely testing whether it can predict future direction >50% of the time
  • the chart pattern itself may only be a timing mechanism for a trade idea that has multiple conditions (fundamentals, market breadth, correlations, etc) to establish an edge
  • the easiest things to test are usually indicators that have a numerical output and from my experience, the best price-action traders scoff at using indicators for anything beyond a simple visual aid
Remember that technical analysis isn't just charts, it is ALL market-generated information (price and volume or deriving from price/volume), which HFTs and quants are using as inputs as well.

3) "The only profitable traders are the ones who haven't blown up yet. (Insert textbook example of XXXX people flipping a coin heads up and one guy winning it X straight times thinking he's the man)
Take any profitable technical daytrader's long-term track record and run a stat analysis on it. Trades are not binary outcomes like coinflips. If you think someone with a consistent 70% win rate with 3:2 profit factor or 50% win rate and 3:1 profit factor on over 5000 trades is just the benefactor of survivorship bias, then you must be the type of guy who thinks a 10-sigma event happened after flipping 100 straight heads, rather than concluding it was just a rigged coin. How is this trader generating similar outcomes across so many different stocks? How is he producing similar numbers as markets keep changing (bull, bear, volatile, non-volatile, rangebound, trending)? How are his numbers still consistent even when you zoom into random smaller samples? You're probably still stuck thinking in casino land rather than understanding the true relationship between probability and markets. 

Also, read Warren Buffett's rebuttal to the coinflip BS about "luck". The more observations of traders with a similar strategy and approach making money, the more it reduces the chances that outcomes are only due to pure luck.

Back to writing
I could probably add more to it but since my post was such an unexpected hit, I don't want to leave my audience hanging because I'm too busy debating everyone. I want to work on finishing it. I haven't actually explained why I personally think technical analysis works but I don't think that matters. I just want to encourage a bit more open-mindedness. Believe what you want.

I hope some of you wait until I finish the post before you jump to conclusions about what I am doing, how much edge there is behind it, how risky it is, and especially what the true mistake behind my loss is. Feel free to post any comments (please stay constructive) but I will only address them after I'm done writing.