I am happy to be a part of Babypips community. This website gave me all the information I needed to start trading as a beginner covering wide range of topics. I gotta say it’s only been 5 months since I started learning about Forex and now I have much more knowledge in this field than the week I first started. I took time to learn everything I can from basics, risk management, technical analysis and so on, since I don’t wanted to jump right in and loose money miserably. It took me this long because I have never been familiar with financial markets before. I learned not only from this websites but from other sources as well.
Well my target is to make my money compound over time. I don’t have whole day to trade and dedicated 1-3 hrs each day for trading and learning. So all I wanna focus is bigger time frames like 1h, 4h and daily. I am not interested in smaller time frame like 1m, 5m charts since it takes much mental energy and active attention to trade those time frame. My focus is to have few but high quality trades each week. I’m very patient and is excellent in controlling emotions.
By doing some simple math it’s clear that even with 10 trades a week, 60% winning rate, 1:1 R/R ratio, 2% Risk of capital, it is possible to earn 200% in just 6-8 months(of course with a trading plan). Even some best case scenarios are attractive such as 10 quality trades a week(approx), 70% winning rate, 1.5:1 R/R, 2% risk makes big compound gains in the long run.
Well my question is this…
Am I thinking correctly? Since I am demo trading now and in the process of creating my own trading plan, I want to eliminate the noise and focus only on my expectations and exclude short time frames. (what I mean by noise is, claims about accumulating huge bucks in short time frames, and the advantages of trading frequently). I believe nothing comes quick stays longer. It’s better to compound money over time than to accumulate by trading many times a week. It’s better to have much promising but few trades per week than to have many, less promising trades.
My second question is If I only focus on 1h 4h daily frames it is possible to make a decent amount of percentage monthly? And how much % that would be in approx ?
Since I am on the journey to make consistent profit, it is better to work on something I believe have potential to grow money over time and omit every other things. This thinking will create a trading plan according to my goals. My thinking must match with the goals I have from trading. So I am back to my original question…
Am I on the right path ?
Sorry for the long post. I very much appreciate your comments on this post.
THANK YOU VERY MUCH.