A question on difficulty levels for an aspiring trader

Beginner Questions
1

Hello so, technical analysis, risk management and so on, be smart, calm and no revenge trading are quite important which I’m working on currently.

I intend to demo for at least a minimum of three months, then trade with a £1000 and inject more capital into the account slowly as I gain more experience.

To start with, I’d be using a £1000 account, so £1 per pip with a 10 (or maybe 5) stop loss.

The reason I say maybe 5, is I’m still unsure on the do’s and don’t. Specifically the following;

  • New trader friendly trading
  • Experienced trading
  • Very experienced trading

So, scalping, as to my understanding requires more than £1000 to start with, ideally £5000 or £10,000 in order to play around fixed spread brokers that offer $2 to $4 dollar commission (per 150k traded in some cases). My reasoning behind this, is because of spreads, I’m going of OANDA also.

Of course, Ego finds scalping interesting, however this requires great speed and keen information reading and response, which I don’t have currently so of course, I’d be avoiding this until I prove to myself I can trade well, at that point, I may realize scalping is not for me entirely and dodge a bullet.

So I see my other options as;

  • Day Trading
  • Swing Trading

And of course some of the different types of these.

I’d be very grateful for your insight into these and feel that my trades would mainly be focused on looking at trend lines on the day chart, then 4 hour chart and finally analyzing the 30M and 15M charts, possibly entering trades on the 5M charts but ideally 15M? And when I go for a broker, Ideally I want mini-lots (or-micro lots?) and leverage in a way so I can have £1 per pip while only risking 1% of my account on any given trade.

I do feel that I’m perhaps off the mark here.

I’m looking to trade daily with around 2-5 trades max, focusing on one pair, GBP/USD most likely, I feel that avoiding the 1m chart is best and simply just trading around 5M or 15M master candles as well as taking it “safe” and just trading when there’s a support line smash, which looking at OANDA GBP/USD seems to happen twice a day, so that’s two trades a day there, then the occasional master candle.

I’m not confident with trading with/against resistance so I just trade with support currently on demo while going through babypips for revision respectively.

2

I have read your post and I appreciate your efforts for becoming a successful trader. You are going in a right direction but I would suggest you to trade with small lot sizes as with a real money you can not afford huge amounts. Moreover, work with a good money management plan as well. Thanks and best of luck!

3

Every level gives you some challenges but the only thing you have to do is to accept those challenges and gave your 100 percent to achieve the success. Never be afraid of those challenges because this didn’t give you anything but takes everything which is necessary for you.

4

If that’s what you want, why don’t you just follow what Dennis does. I think he the best here. Free chart on a daily basis. Scalping, intraday trading are very hard to master or understand.

There many ways to intraday trade. I have chosen the intraday counter trend style. But 1st i need to get the big picture (main trend) right with uncanny accuracy.

There many daily fundamental analyst namely Anil. His view point often helps me to zoom in on which pair i should choose. Combining with Dennis chart, i often get to see the market main direction pretty well.

For me, i don’t just do intraday counter trend trade. I have a backup plan when my counter trend trade goes wrong. It is about having a series of plan to cope or you can call it strategy.

5

No way actually, emotion is one of the biggest enemy here! Without enough trading skill, Forex is always costly.