Hi, I am relatively new to trading, currently I am learning to trade naked using price action and feel quite confident in what I am doing at the moment on my demo account.
I have a few questions that I hope any experienced traders could help out with.
Basically I am currently demo-ing with a spread bet broker, is this the best way to trade as notice a lot of you guys do it the way of buying micro lots etc (I’m not sure what this is called!) what are the pros and cons of different ways of trading?
Also if you are reading price action does it make any difference what broker you use, I’m aware of course that the spreads vary but do they all show the same price and show the same charts and candles (providing you’re viewing on the same time frame and candle close).
I’d recommend using a broker, many reasons, you are at a higher risk of getting ripped off is one of them, I think the platforms they have are nice and flashy and too clickable, I’m sure they are designed to make you over trade, as a broker, I recommend Oanda.
As it happens I mentioned something about showing the same price earlier, I say your trading strategy needs to be more robust than depend on a couple of pips difference on a chart.
In terms of profitability I.e the amount invested into an account against money made, is there much difference? For example I know that with a spread bet broker I can deposit £1000 and working on 2% risk a trade I can trade 50p per point with a 40 point stop. I’m not familiar with buying lots etc so what can you be looking at with a similar scenario trading with oanda for example? What’s your type of trading called?
I definitely agree with what you said about the robustness of a strategy, if there’s a few pips that doesn’t matter it’s just that when I Look at charts with the same time frame closing at the same time zone etc I seem to be seeing different charts, I will double check this.
Like I say i still have a lot to learn (which I’m sure most of us do!), what I’m focusing on at the moment may sound quite basic, just price action at strong s/r levels, paying more attention to pin bars at these levels, just demoing a few different methods at the moment in regards to entry, stop/trailing stop etc to see what works best.
Is this a similar way to how you trade? May I ask are you a live trader at the moment?
You seem to be on the right path. I am not familiar with spread betting so I will not comment on that. Oanda as PP stated already seems to be a decent broker. I dont use them but a lot of people here do. Good luck on learning price action. That is key in any strategy IMO.
You might not be meaning to suggest that £1000 is the ceiling for spread bet broker investment, but I have a spread betting account in the UK with ETX Capital, their standard minimum stake is 50p per pip, but I am pretty sure that they now offer micro accounts permitting one to spreadbet less than that per pip, which is something you might want to think about. I don’t know what their maximum investment is in an account, but it is certainly a lot more than £1000.
Their website is pretty good, there are all sorts of answers on there, so you might find it interesting to have a look on there.
(And before anyone flames me, no I am nothing to do with ETX Capital, I have just had an account with them for over two years and find them stable, reliable, flexible etc…)
Thanks for your reply, what broker do you use? Do you know what this way of trading is called? Do you trade live yourself?
Sorry for all the questions! Thanks