Let us discuss of what strategy we should take before entering into the market if you have passed the babypips school or currently studying it.
What things should we consider before entering in to the market?
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Demo account for a long time, try out different strategies, figure out what style trader you are, and as soon as your comfortable with something move to a live account with a set level you are willing to lose out of your trading capital. If you lose that, go back to demo and start over. At least That’s what I’ve done and it has worked well for me. Best of luck to you, enjoy your forex journey!
thank morris, but actually right now i m facing a problem and it is that i m having a good knowledge of technical but after watching market i’m unable to decide that which thing can be apply here???
I personally draw key support/resistance levels based on highs and lows, and I draw trend lines. From these I’m able to pick possible levels to enter. Now and then I’ll also use fibonacci levels as well.
same here and also i’m performing well but my knowledge is getting more and more which is making me confuse, but now a problem i’ll to try to handle this… thanks a lot for the replies
Keep it as simple as possible. Here is a conment I posted on a different thread showing how complicated I made it on myself in the beginning.
When I started I was using 4 indicators, stochastic, adx, RSI, and macd. On top of that i was using two trend lines, a 15 and a 30. Then as I got more used to those, I added even more! I put on a 9, 50, 100, and 200 moving average along with bollinger bands and parabolic sar. Somehow, I thought these were helping me, but now, looking back, it’s no wonder I wasn’t getting anywhere! I decided to ditch everything and I haven’t looked back. Now I use s&r, trend lines, and maybe some fib levels sometimes. It’s just all part of the learning curve we all must go through. But I always wonder, what if I never got blinded from the start with all of those pesky indicators??
Well there are several things to consider:
Firstly, would be the time frame we are trading. Would it be the 5- min timeframe or the 4-hour timeframe. It is important for traders to identify what time frames they are looking to trade and to stick to that time frame.
The next thing to consider would be if any major news items would be coming out within the set timeframe. That could cause some volatility and we need to know if this would affect our trading.
Thirdly, would be the strategy we would want to employ. Would we be buying breakouts, selling at resistance levels, capitalising on retracements etc. Would we be technically or fundamentally oriented in our trades?
Then we would need to consider entry levels, stop losses and take profits simultaneously. We would need to ensure that we have a minimum of 1:2 risk o reward ratio on the trades.
Finally, we would need to decide how to scale in and scale out of the position to further hedge against any risk in the event that our strategy does not play out.
Hope this helps.
aahh… i m using right now 6 indicators and 5 types of Moving averages and fib also…i think that’s why i’m getting confusing so much… believe me before 2 weeks i m saying… trend line support resistance and fib is sufficient.
quite good knowledge… but till now i’ve not started studying fundamental and risk ratio, hope it will help me.
if elliot wave theory get successful and also the abc pattern also made to the downtrend then what happen after that. will market come down or go above from there?
This is very helpfull as newbie it gives me a better idea of where to start .
I personally just finished reading the fibonacci section in the school of pipsology and couldn’t exactly understand where when or how start with my demo account
This helps
ya sure, just go through supp and rsistnce and also trndline and fibnci… and I’m sure u’ll make lot of pips. have a pipful day