How to trade. Need few questions answer

Beginner Questions
1

May be here i am asking some silly questions but please if possible answer my questions.

After loosing almost 1k i realized that I have to learn lot of thing. I need suggestion and few question answer.
First, introduce myself that, i am a web developer and working as a freelancer from last 3-4 years.
I was first addicted forex almost 2 years ago. That time i loose 200$ dollar and stop trading but learn few thing.
Second time i addicted almost 1 year ago. That time i lost 350$ and stop trading again but learn few thing again.
Two month ago, i addicted again and this time i have lost more than $500.

I know little about everything but i loose money like newbie.
i know how to forex work, how indicator work and little bit other thing but don’t know deep.
Actually, i learn lot of thing just don’t know how to apply it or how to predict what’s going on next on market.
This time i realize that news trading is the king of all trading(I may wrong).

Even, i see lot of people here predicting that market must go (eur/usd) 1400+, some expert told market going to 1450+ or some other told market going to touch almost 1500.
I don’t believe much that because i was selling mode and loosing lot of money. I thought market cannot go more than 1400 and my balance can survive that.
But it has gone long away and make my balance zero.

Yes, I loose lot of money(as a developing country people yes $1000 is a lot of money).
But, i want to win. It may take time but i want to win this battle.

  1. Thus, I need clear direction what should to do?
  2. What kind of strategy should follow?
  3. How can i get usa, euro zone news before publishing it or how can i predict what news going to positive or negative. Because i have seen lot of movement when news release.
  4. How can you predict 7 days ago that market will touch 1500+?
  5. Sometimes, i have seen market move 50-60 pips upward then then again move it downward 70-80 pips. So, do i need to try to both trade win? If so then how can i predict market move 50 pips and then it move downward again?
  6. How to think about money management?
  7. When i need to set stop loss or when i set to take profit. Because i don’t know what’s happen. Most of the time i have seen market go above or downward then try to come same position where he had.
  8. I am interested to long term trade like per day or 3 days even 7 days. So, what kind of strategy should follow.

I am going to start with a CENT account with 1dollar balance. Until this 1 dollar become 50$, I don’t want to invest mo

2

Work your way thru the school here, read the threads but stop trading until you develop a strategy…you’ll have a better idea when you finish the school.
Regarding other people’s predictions, in 99% of cases they are no more than guesses so be careful

3

You story’s a very common one.

Education should come first, then either demo trading without risking any money, or a micro-stakes account, until you’re fully confident that your methods have a genuine, reliable, proven, statistically significant edge (net positive expectation), before you risk losing $1,000.

Becoming fully confident of that clearly requires knowledge and experience of both the forex markets and enough understanding of statistics and probability to be able to assess when methods do have a genuine, reliable, proven, statistically significant edge (net positive expectation).

Here are three books which will help you (perhaps after working through the Babypips “School” pages) to develop both those essential skill-sets:

[I]Trade Your Way to Financial Freedom[/I] (Van K. Tharp)
[I]Beyond Technical Analysis[/I] (Tushar S. Chande)
[I]Profitability and Systematic Trading[/I] (Michael Harris)

[U]Key concept[/U]: longstanding, recognised, accredited textbooks published by mainstream, orthodox publishers have stood the test of time and undergone extensive peer-review before ever seeing the light of day, in huge contrast to “internet information” - be aware that there’s no “informational quality control”, [I]online[/I]: anyone can publish anything offering advice, especially when they have some additional services/products to promote. There’s some good information among it, doubtless, but [U]when you don’t yourself have the experience and judgement to identify it confidently[/U], it’s a real lottery, depending on advice from strangers.

Trading successfully is about statistical/probability functions, ensuring that the deck is stacked in your favour, rather than against you.

And so is [I]learning[/I] to trade successfully. :wink:

I’ve found the exact opposite, myself: that news trading is something to avoid at all cost. There are so often spikes in both directions that it’s very easy to get the direction right and still lose money.

I don’t generally read those things: I consider them entirely random and in any case trying to predict direction isn’t a very useful skill for me.

I would start with the three books mentioned above.

Very difficult to answer this without knowing more about your circumstances and objectives. But I think “education before experience” is always a good starting-point, and “experience without significant financial risk” should eventually follow it.

I can offer answers to some of your questions.

I don’t know, and don’t really try to do that. It doesn’t really help me to make a living.

So have I - often a lot of wild and unpredictable movement. Those are good times for me to be out of the market.

By pendulum dowsing (it will be as reliable as any other way you can try to do it, and more reliable than some).

By reading the three books mentioned above.

By reading the three books mentioned above.

In my opinion, probably price action trading without indicators and with some understanding of “fundamentals”. I think this is a particularly difficult trading timeframe for someone without some years of experience, though.

Good plan! :cool:

I think you probably have rather a lot of reading and learning to do first, though?

Also note the excellent advice above, from Eddie. :slight_smile:

4

All good advice here, but don’t forget the most important one - Money Management! Don’t risk more than you can afford to lose.

5

The very first thing you need to do is education (when I say education I mean at least two years 24/7 dedication on it. Second thing is setting up your long term goals and working on the trading psychology and risk management. In the meantime you need to have a live small trading account where you can implement everything you are learning through trading. You should trade on a small live account because as any other new trader you will lose the money in your account several times and that is not bad at all, that means you will learn through your mistakes.
Just to remind you that the most successful traders are making 20%-30% per year so do your math and see how much you will need your $1 to make it $50.

6

I know little about everything but i loose money like newbie.
i know how to forex work, how indicator work and little bit other thing but don’t know deep.
Actually, i learn lot of thing just don’t know how to apply it or how to predict what’s going on next on market

I believe you necessarily do not have to learn how to use every tool or chart pattern you come across before you can be successful. I think it boils down how effective you can use them. The problem is that you know “very little” about your tools and ultimately forex. You can begin (again) at School of Pipsology. They introduced me to fx a few years ago.

While studying, keep things simple: work with few indicators. I recommend chart patterns. I never liked news – politics and economics bore me. I have learned to not mind the “fundamentals” though I am aware some may regard this as unhealthy . Good luck.

7

That’s for sure.

Trading successfully isn’t about doing very complicated things: it’s about doing [I]simple[/I] things [I]very well and very consistently[/I], after becoming able unambiguously to identify what works and what doesn’t.

8

I would add —

When [I]trading[/I], keep things [I]even simpler:[/I]
get rid of indicators altogether.

Indicators are marvelous tools which can tell you exactly which trades
you should have taken 4 hours ago, or yesterday, or last week.


… what Lexy said

.

9

From my own experience, I downloaded a trading platform in April of 2014…I have not yet put any real money at risk. To date, I am not confident to risk but becoming ever closer to jumping in. I still need to start a journal???..feel like a girl…but highly recommended so I know where I screw up and where I am successful. I believe this can be done at a methodical pace with a methodical approach concerning real money…AKA…easy does it, keep it simple. 12 step program…weird…works.
I have not become who I am today overnight. This has taken years to develop…hence, you may not become instantly successful trading correctly 90%…may be reversed. Realistic outlook and goals start out small and build from there.
Prosperous trading for us all.
Tim

10

Also pay attention to the incremental 50 pip moves that psychologically accompany moves up and down. From there, the data releases will determine if support or resistance holds or folds.
Listen to me, as if I am a vet…I’m a learning.

11

Yes, you must pay attention to it. Then another important thing you have to maintain the health and learning. So that someday you will be successful profit.

12

I would say it’s like learning a new language. You aren’t going to be good at it until you practice, practice, practice. They say it takes about 2 years of trading almost every day to get good at at, just like it would any other skill or language. I recommend doing the Babypips School, and there is also a free book online called “The Naked Forex”. It’s completely free and it talks about learning to predict future price based on a naked chart and simply using chart patterns and current price action. I agree with many of the other people in here saying to K.I.S.S. (Keep It Stupid Simple). Get rid of indicators. Use basic support & resistance, trend lines, and maybe a few things like Pivot Points or Fibonacci Retracement levels, but everything like RSI, Bollonger Bands, etc, you can throw that out the window. And the last thing that keeps me really grounded is the saying “If it was easy, everyone would do it.” Plain and Simple :smiley: I wish you luck!!