I’ve started forex trading recently using a demo account and I’ve made pretty steady profits basically just following a 60 minute, one day and four day chart and using bollinger bands to swing trade $400 with a leverage of 25 and holding it for about twelve hours to five days (I’m using the $400 to simulate the amounts of money I would actually have to trade on a real account). I also use high leverages on spikes which I think is called scalping?
Etoro is my broker and I use the copy trader feature to follow people with very high success rates and use them as an indicator, for example if I see one of them is down 25%-35% on a trade I’ll check that out and probably remake the trade they’re down on.
It seems to be working very well for me so far, in three months I’m up to $20,000 from $10,000 making consistent (virtual) money doing this. I’m reading stuff on here and other websites/podcasts and books, but I’m wondering what you think about someone trading like this? Or do I need to be more scientific?
maybe! pretty much last three month was ranging markets! you might want hold on Demo for another 3 months-5 months to see when the markets turn for trending to check if your system cound withstand with the windfall!
Furthermore, when markets changes the turns, be ready for surprises in your system! good luck!
cheers,
NVGU
Maybe using the word system to describe what I do was wrong, since I’m not very rigid about it. I’m just wondering if looking at support/resistance simply with the bollinger bands and various time charts without any further indicators is a good idea for swing trading and holding my trades for a long time.
Also the way I’m using stop loss and take profit seems somewhat unconventional so I’m worried that it won’t hold up. Basically I do a $400 trade with a 25 leverage, pick a point where I’m quite confident it will rise to at some point (usually somewhere from +$25-$200) and leave my stop loss at 100% so -$400 (not sure how many pips).
I have manually pulled out of some trades at a loss, but my success rate is something like 95% and I have only bottomed out on some high leverages I use to scalp when I see spikes. I know it will happen eventually but I’ve had good success with making about 3-8 $400 trades a day using small(ish) take profits and holding for up to 4 days.
Thanks! But I’m worried that I’m having too much success/good luck for my own good. If it has been consistently shown to be very unwise to do a much lower take profit than stop loss I would like to hear about it.
Don’t apologize for making a profit. If it works use it. But make sure you test it for long enough a period of time to be reasonably sure that it is a legit system.
If you can test your systems on historical data, that would be the best. But if you can’t, then keep forward testing until you are confident it works and keep your risk low.
