Hi everyone! I would like to discuss with you one topic. I’m sure that in order to become a profitable trader, you no need too much time as other could think. Let me share with you the main idea based on Forex market.
You are a novice trader - you know NOTHING about Forex.
You read 1 book - “Day Trading and Swing Trading the Currency Market: Technical and Fundamental Strategies to Profit from Market Moves” by Kathy Lien.
You get 1 trading systems from this book, which you like and which suits your possible trading style
You do back test in order to get good stats, and based on it chose your lot size.
You think about money managment
You start demo trading till the moment you will be sure in trading system and youself.
You start trading based on your trading systems signals - you follow the system day by day.
You try to lear something new everyday about trading, money managment, in order to become better as a trader.
You will need for these 3-5 months. Depends on your free time, your wish and trading systems you chose.
This is my simple plan. What do you think? You ideas? I will be glad to discuss )
Good idea! This is really useful plan. I want to add only that if a trader is beginner, he should read a few books about different forex trading strategies prior to the start, or read during a demo trading. For example: (Elliott Wave Principle: Key to Market Behavior, by A. J. Frost, Robert R. Prechte, and also Tutorial Day Trader: Lewis Borsellino and others). Very often the behavior of an inexperienced trader changes during the transition from demo to live. It is also very important to read a book about self-control trading psychology. (Forex Market Psychology: Thomas Oberlehner)
Right you are! And also I could add books by Aleksandr Elder - they are very useful for money managment. So, you also think that you don’t need to spend years for becoming profitable trader? If you have exact plan and follow it - why not to start getting profit asap? Also, there is other idea - no need any trading strategies - use candlestick parttens - they are so simple that need much less time, but power inside them so strong. Trading using the candles and levels - also very good trading strategy.
I like with trade with simple way using candlestick pattern also, I see still so many trader which they also can making profit although only ttrade with simple analysis, before I am trying various system with indicator and almost still faced many difficulties esepcially about psychoilogy trading
Sure, and the financial markets are good because of it also. Simple strategies could bring stable profit. There are huge number of ways to become profitable trader. Use any way you like.
I believe that in order to start trading do not need years of study, but at the time of trade need to constantly evolve.
Candlestick patterns are really simple and they work well. But I would advise you to master the same work with the indicators as an auxiliary tool, confirming the forecast.
Good idea. I believe if you have good strategy and plan then you can make good profit in Forex trading. So always you need to plan a good strategy and have good money management.
I think apart from reading books, we should practice on trading demo
but 3-5 months is a very short time. I don’t think we might earn money without loosing some, I think it takes at least a year to make newbies become profitable traders
First step after reading is trading on demo accounts. You should not start in a real account right away as this will deviate your concentration from learning towards earning.
Demo account is important for 2 things only. One thing is learn the features of trading platform. The second thing practise with your trading system, how to open trades when you have a signal, how to close. That’s all! After that it’s much better to trade on real money, with small deposit and with minimum lots. You will study the emotional part of trading on real money.
“You will need for these 3-5 months” More like 3-5 years, trading is as much art as it is technical knowledge. Worse thing for a new trader is to have success in there first month or two of trading as they will think this is how it is going to be every month and that just is not so. Market conditions change and that system that did so well for 3 months could give you loses over the next three months. Show profits over consecutive years then you know you have something
The plan seems good in theory and for some people it might work, but it doesn’t take into consideration the psychological side of trading. You might want to follow all the plans in the world and it still might not work because you are too stressed or too anxious or too greedy, etc. Usually it takes longer than 3-5 months to get learn how to contain one’s emotions.
if u ask me can it be done in 3-5 months? i would say YES if you are a PRODIGY, but it will definitely take more than that, there more aspects to consider when trading forex, i started with hotforex in 2011, and here i am still knowing i still have a long way to go…
In 6 months you will understand forex trading well with live trading account. I think to be a profitable trader we need some more time to practice here after more than 1 year one can pick profits from trading when he is doing it with risk management .
Maybe many trader fail and can’t maintain account more than six month, so if newbie they willing to spent time practice in demo account at least six month, they already making good first preparation I think, but almost newbie usually they in hurry jump to real account because they want making quick profit
Many of the traders who are newbie will fail in their trading as they are unable to hold on to their trading funds. More important than earning profits is the ability to hold the trading funds…
You read 1 book - “Day Trading and Swing Trading the Currency Market: Technical and Fundamental Strategies to Profit from Market Moves” by Kathy Lien.
Day trading might be a lil bit risky compared to swing trading. I’m all for swing trading though.
Technicals are also fine. Fundamentals, I think they just mess up your brain more. The charts themselves have a way to explain what’s likely to happen with the price movement.
You get 1 trading systems from this book, which you like and which suits your possible trading style
Okay, this one’s good.
You do back test in order to get good stats, and based on it chose your lot size.
Yep. Lot sizing must be enough to not wipe out the account easily and destroy a trader’s spirit.
You think about money managment
You start demo trading till the moment you will be sure in trading system and youself.
You start trading based on your trading systems signals - you follow the system day by day.
Good. Just remember that you, not the signals, are the trader.
You try to lear something new everyday about trading, money managment, in order to become better as a trader.
Good.
You will need for these 3-5 months. Depends on your free time, your wish and trading systems you chose.
Time management is great but don’t feel bad if you end up needing extra time for learning. Just enjoy.
This is my simple plan. What do you think? You ideas? I will be glad to discuss )
Add this one:
[B]Don’t make things hard for yourself. Always choose the method that makes sense, simple to do, and easy to understand. Although trading isn’t easy, it isn’t complicated.[/B]
There is no shortcut to become a good trader you have to spend a lot of time in the market to learn about market working , only after that you could start earning.
The best and fastest method to learn forex trading is to learn it from a good trading mentor. A mentor who himself trades in the market and have real account with good past history can teach you way faster.