I’ll try to summarize as best I can.
I got interested in trading after, like many others probably, reading all the stories of people making huge amounts of money in the stock markets.
If they could do that, then so could I right?
Since I didn’t have enough money to start trading stocks for serious money, plus the pain in the ass Swedish tax rules (not so much the actual paying taxes, more the incredible administration every time you buy or sell) I started looking at other instruments than stocks.
That’s how I ended up with Forex.
I was extremely lucky to find Babypips (BP) early on, which was like finding a kind guide when you’re lost in the jungle.
I went through the BP school and started demo trading on MT4 broker demos. Thought I knew it all.
At the same time I read Alexander Elder’s books and also found Tymens candlesticks thread.
Now the phase of system jumping began, testing and discarding one system after another. Always looking for a better indicator and so on. I even looked into robots and the like but quickly realized they simply didn’t work.
In the mean time I read Economics for Dummies, Technical Analysis for Dummies, Candlestick Charting for Dummies and Currency Trading for Dummies, plus Bill Williams Chaos Trading and hundreds of threads.
I began realizing that indicators (for me at least) didn’t do the trick. That they were just mathematical manipulations of the price movements. At best they have a self fulfilling quality, but even that is highly doubtful considering the vast number of indicators and settings that exist.
I began focusing on support and resistance and I read a book called Beat the Forex Dealer.
During this time I had the opportunity of watching how new systems would pop up on BP, attract a big following, become more and more cult-like, and then crash and burn. I had the opportunity to watch and learn how scammers operate and what their tell tale signs are. I’ve gained a lot of wisdom here on BP.
Then came what at least for me was [I]the[/I] book: The Undeclared Secrets That Drive the Stock Market by Tom Williams
Reading that book was my aha experience. You don’t have to trade exactly like the book, but the authors explanation of how and why the markets move and behave the way they do was the piece in the puzzle I had needed.
At the same time it then became completely clear to me that psychology and not indicators drive the market. Needless to say any remaining indicators went out the door.
For the first time since I started my trading journey about one year ago, I feel confidence in my abilities as a forex trader. The time ahead will prove whether that confidence is justified or not.
To get here I’ve spent about 3-4 hours every day in front of the computer since september 2008.
I would advice you to skip all of the unneccesary excursions that I’ve made, but I think it’s more or less unavoidable to take the winding road, and you do learn many important things while on that journey.
Just remember to be vigilant and always use critical thinking and common sense and I’m sure you’ll be fine.