I’m new to forex but I do have experience with swing trading stocks for a few years and after a slight learning curve I think I have a system that works for me.
I’m working with a micro account at the moment and plan on scaling up as funds allow.
my plan is pretty basic , short term swing trades in the major pairs (mostly eur/usd) on the 15m charts using TA I’ll be using RSI, Stochastics and macd as confirmation of trend and price action along with fib lines to estimate profit taking areas. For entry I’ll mainly be looking for short term EMA crosses using the 5 and 8 ema.
My risk reward ratio is 1:3, for each trade I will place a 10 pip s/l and take profits at 30 pips with a 10 pip trailing stop. Since i have a low funded account of $235 (started with $300 until i learned from my mistakes) i’ll be risking $1 for every $3 of potential profit, not much money but it’s more of a way to become consistent and gain confidence before moving up to a larger account.
I will also be adding small deposits every few weeks to help fund and grow my account value
my ultimate goal is to become consistently profitable to a point where I can move up to a larger account and have enough savings, 6-12 mo worth of monthly expenses, to leave my current job and trade for a living.
i’ll update the thread now and then with my results and progress.
Sounds modest and disciplined. You should take some time out and test this method with the charts. Short term trading is very tough, but check out 1h and 30min charts as well. I’ll be observing the market tonight and tomorrow until I make a decision because I’m not certain right now with the eur/usd. You should study other charts like GBP/USD and GBP/EUR. It’s all about making a good plan and testing it.
I actually have been testing this method and my trading has made a turn for the better already. I went from averaging -100 pips to +75 since i started using this the other day. not a huge jump but a definite improvement and a $10 profit as opposed to a $10 loss for the previous days.
I do trade other pairs along with eur/usd, i usually have the major charts up and jump back and forth between them until i see a good probability setup. the eur/usd just seems to be more volatile and makes for good short term trades.
I just happened to be in the right place, right time on my very first day and i caught the huge rally on the USD/JPY, problem was it was sheer luck netted $70 in about 5 min but then the market took it all back within a few days :17:, at least now i know what signals to look for, i had been making the mistake of trying to chase the market and getting burned over and over by doing it.
so I tested my system in the demo account tonight just to see how things went, besides it’s sunday and there isnt a whole lot happening as far as trading and for the most part the market was flat so there are some small trades, here are my results
eur/usd 3 std lots - bought 1.42299, sold 1.42383 gain 8.2 pips +$252.00
gbp/usd 1 std lot - bought 1.61254, sold 1.61180 loss 7.4 pips -$37.00
eur/usd 3 std lots -shorted 1.42421 bought 1.42234 gain 18.7 pips +$561.00
eur/usd 3 std lots shorted 1.42265, bought , 1.42236 gain 2.9 pips +$87.00
in a 2 hr span
overall gain $863, 29.8 pips
3 wins, one loss and the reason for the loss was because i neglected to follow my rules and jumped in on a trade before the previous candle closed. but i guess thats why we test on a demo account.
So today I went back on live , it started out ok, i was trading the 15 min chart, long eur/usd then bernanke came along and threw a monkeywrench in my system and the pairs went crazy and unpredictable. I’m down a total of 103 pips today , currently long eur/usd , I took a few scalps on the ride back up, 15pips and other for 12 pips and now i’m long at 4223 looking to TP at 4248
