Having finished the Baby Pips school, I’m now trying to develop my first trading strategy. To me, this is a daunting task and I’m not quite sure where to begin. Any advice or pointers in the right direction?
Also, I’m unsure of weather I should base my strategy around price action, indicators, or a combination of both. Any advice here?
Thanks
Good for you. Glad to hear that you finish it…
Yes, it is really a daunting task however you have to start somewhere to get your feet wet.
I think if you want to try technical analysis first it’s okay then incorporate that with fundamental eventually…
If you want the " price action" to start with then focus on that for a few months. There are so many thread around here you can looked and start reading it. Read it then test it. If you think it is not fit on your style, moved on to the next. Then do again… Make sure you have the calendar open for the news events so you know what you will expect for the week. Forex factory calendar is what I use. I will focus on the " red" color and ignore the rest… Even if you do not want to try to trade the news releases or events, atleast you are aware of what was going on… Read, observed the market, and right things down why you think the price move or where you expect the price to go ( journaling).
Keep reading books, articles, blogs, any thing in terms of Forex trading so you can keep yourself educated…do one step at a time.
Goodluck!
Hi, thanks for your response. You make it sound as if ignoring fundamentals would be a mistake (or at least a shot sighted approach to take). I’d initially intended to just avoid trading around economic events and base my analysis entirely off of technicals and price action. I am trying to develop a day trading strategy, do you think I aught to find a way to include some fundamental analysis into this? Thanks again!
You can do whatever you want. Yes, at the beginning, I am focusing on technical analysis alone just to get familiar with chart patterns, key S&R level, etc. because those are important too. I didn’t get into “price action” no idea ( who knows I might be doing it too but I doubt it). However, I like to know what is going on Policy/rate changes, and knowing the [B]Why[/B] the price it moved… So, I am leaning towards fundamental in that regard then I incorporate the TA. So, yes you can incorporate the fundamental and Technical in day trading. Try it in demo and see how you do for a few months and you can tweak it whenever you’d feel like…
The good thing about finding the strategy is unlimited and you can do whatever you want but the problem is finding what really works that suits you and can bring in a consistent profit… It’s a big puzzle that you need to solved and. Its always trial and error at the beginning…
Hi, JRC,
I am new to forex. I have the same task of creating my first trading stratagy. My interest are like yours in price action, with candel stick patterns. I have been journaling, as I watch the markets, about trade stratagies and notice that S/R lines are areas with higher probability trades. Learning about market movers accumulating positions before pushing the market has helped. I like PipNRoll’s advice to know what is going on in fundamentals the why price moved. Trying now to understand order flow and what those big bankers are doing. Price action patterns by themselves are not high probability trades for me still working on my trading stratagy. Hope this helps.