Good evening everyone! I’ve recently fallen in love with Forex! I’ve always love to take risks I guess that"s why i find forex so appealing.
My problem is how do i find a sense of direction? I’ve finish the school of pips, read a few books and watched hours of videos, and browsed forums. Di-spite all this i feel lost, as in I don’t know how to develop a strategy of a plan if that makes sense.
I would look at other peoples strategies, test them out for a week or two and afterwards nitpick things to develop my own. But i seem to just blow all my money (demo account). The problem isn’t losing money the problem is I don’t know why i do. where I went wrong. How did you find your sense of direction? a mentor? if so how’d you find one? more screen time?
hi there, I have been trading for a while and also recently have been posting my trades live ("100 live trades -FX Challenge).
I have a very simple strategy which I developed myself to suit “me”. which you are welcome to look at
I guess the advise I can give you is this:
Define your own risk management: I use 1%-2% of my “latest bank”. I have recently settled for 1% simply because I am now having a lot more trades since I trade the H4/H2 charts (for my “parent trades”) and the 1h/30m charts (for my “child trades”). The latter give me a lot more action
Focus: You got to find one method or a set number of crosses that WORKS FOR YOU and stick to it.
This is not to say that you cant test methods/crosses/systems until you find the method that works for you. But once you do STICK TO IT. I focus on GBP/JPY ONLY. But every now and then I “lose focus” and it usually ends up costing me money! If you look back at my posts you will see how I lost myself for a little while looking for “MORE ACTION”…MORE DOESNT MEAN BETTER, LESS IS BETTER…
Discipline: once you found your method, which should be “focus” on one or only a few crosses, then you must be strong enough to follow your rules
Back test: I have spent countless hours backtesting “manually” my method (I do not use systems), to ensure that I train myself on how to select my trades, what risk (pips) and what profits (1.5x or else) works best
I can tell you my method right here in a few lines (is that simple) …my rules I placed in my posts are a bit out-dated but they can also guide you:
Trade GBP/JPY 4h/2h or 1h/30m
Trade with the trend
Trade the 618 or 786 fibonacci
Use Candle formation
4.1 Trade the Crown Reversal or Trade the Break of the Inner Trend Line
If trading the Break of the Inner Trend Line it must have confirmation from RSI or Support/Resistance or an EMA (21/55/89/225/356 30m charts) or EMA (15/89 h4/h2)
That’s it. I am so far at 59% strike rate in my live trades I have posted. I started with about 40% at one point when I was NOT FOCUS on the G/J solely. Now I am back to it.
You see when you trade only ONE CROSS is like having ONE CHILD that you KNOW 100% and you spoil it.
I know the pound/yen, when it trends I ride it using the h4 chart, when it is ranged bound I trade it quick using the 30m break of the inner trend line or crowns right tip, and go for 1.5x targets (which I have tested over 200 trades to be the one that will give me the highest strike rate)
anyway, sorry for the long reply…i like helping…
unlimited in wealth from bull or bear
abundant and fulfilling because I dare…
My additional advice is this. You’re throwing up all kinds of red flags, just by what you’ve stated so far. One being that you are openly asking just anyone to mentor you. You need to be careful with that. You’re opening yourself up to predatory brokers, and while on this site that kind of behavior is shunned, you never know who you can trust.
Second red flag. You like to take risks? If this is true then you need to step away while you still can. This game isn’t for you. This isn’t something you love. It’s something you love the benefits of, but love is too strong of an emotion for you to invest into this. Until you feel as emotional about trading forex as you do about picking which channel to watch, you are just too emotionally invested right now. I would continue trading your demo account, investing no actual money, until you’ve reached that point psychologically. If, and only if, you think you can restrain yourself from using real money for that long.
Third red flag. As was said prior, you do not need to give one single damn about what “systems” other traders are doing. It’s fine to study their methodology, but don’t put all your faith in the trading style of someone else, because that’s all it is, their style.
Appreciate the advice! I should have been more clear about me being risky, I ment I like that you risk money to make money not risk 50% of my capital.
Also I was asking if people used mentors, I wasnt actually asking for one, believe me Im more then cautious! I told myself to trade demo until I can control my emotions, but hey who hasnt been emotional in the beginning. Again thank you for the feedback !
I really appreciate you taking the time to help! I will definitely check out all the information you’ve given me! Is this just for GBP/JPY? Or can this work for other pairs as well?
the technical analysis tools I use apply to any cross actually apply to any price charting…however, I have found that I am more successful with the GBP/JPY because it moves so much so quick!
therefore I can easily enter a trade say of 30 pips risk and make 45 pips within a few hours
I also found that getting to know one cross is highly productive
good luck!
cheers
Hello Aylmz,
Is very logical of losing money in the beginning of trading. You have to use different strategies before you realize which is the most suitable for you. Now, the direction of a currency you need identify it from the daily chart and try to use it in lower timeframes for posting a trade. It is difficult for a new trader. Only the experience will help you and some basic knowledge of the technical analysis.
