Beginner Foray with Stochastic Oscillator
Hi, this is my first post. I have been reading about FOREX for a couple of months now, but too busy with work to do anything. I opened an account with $600 and lost the lot very quickly, trading with no knowledge whatsoever.
I opened the account so I could have first hand experience of trading, as I knew absolutely nothing, so even the lessons seemed irrelevant at that time.
Now I have watched tutorials from among others, fxknight, and I have completed the school on this site and read other lessons and tutorials around the internet.
I have opened a demo account. Since I knew nothing about how all of those indicators worked or moved, I thought I would focus purely on learning to begin with, the stochastic oscillator.
I have been trading on this demo account, Friday, Monday and Tuesday for 12 hours each day.
I started using just one chart, but found that the SO doesn't actuallt indicate when to buy, and also that if for example, the blue and red line move into the >80 zone, then even if they cross it doesnt mean a down turn is imminent.
I found that by watching 4 charts, i could get a more accurate idea of the market behaviour. I did then see some interesting arrangements between the indicators on the different charts. After watching them a while, it seems they do, together, give a much better picture of what is going on.
I managed to get 8 good trades in a row, then a loss then 5 good trades in a row. I dont really have a money management policy at the moment, but Im not sure how to account for noise. Also, I did cut the successful trades short as all I wanted to know was if I was making a good decision, and not really for "profit" at the moment. I can see how using a small percentage of the pot is good thing, and I can see that implementing stop loss would be handy too.
I can see I have a LOT more :-) learning and practicing to do, as well as trying out developments as my strategy is put together. Im a bit burnt out now, so im going for a bike ride in the park while the sun is out.
Any advice / reminiscence / hints would be great
Thank you
Michael
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