Hi guys, I am new to forex and I have been reading the forex class here on babypips. I have some questions regarding trading as a newbie and I would appreciate your contributions:
1.What chart period / trade period is best for newbies to use (30min, 1hr , 5hr , 1day)
2.How can a newbie tell the difference between a real and a fake break out. I have read in numerous places that indicators like bollinger bands tend to mislead but I haven’t seen anything on how to spot the real from the fake.
3.what indicator / indicator combination would be best for a newbie to start with (not necessarily the best indicator but the easiest for a newbie to start with for atleast a couple of weeks)
4.How many pips a day should a newbie aim for and what trading strategy could a newbie use.
I hope I haven’t asked too much, I just need you guys to reflect back on when you first started and give some advise / tips. Thanks in advance.
You should use a Chart Time Frame that will show you what you need to see in order to analyze the market. For example, if you are looking to leave your trade overnight, you should use a longer chart time frame
You should use more than one indicator. When one indicator shows a break out while the others don’t, it is probably a fake signal.
You should start by learning how to use Trend Lines (Moving Average). There are other customized indicators that you can use though, but study the default indicators and learn how to use all of them. Each indicator is best used for different trading strategies.
You can decide the last question for yourself based on your capital and how much you know about forex. Don’t jump in the market when you have no clue.
I think all those answers really depend on you and you have to figure them out. Different traders will give you a different response and none may be suitable to you. Take your time and figure them out first before you fund a trading account.
Got to agree with all here. Learning to speculate is as much if not more of a journey into self discovery as the markets. Finding out what type of trader you are and the skill set you require can and probably will take years. Enjoy the journey bro and best of luck.