I strongly suggest you learn the nickb system it will teach you a few things which you gravely need.
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Patience
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Learn that trading often is not really better, it just puts your account at more risk. If you trade often for very small pip gains you put odds in favor of losing more of your account. With nickb’s method you target 50,70 and sometimes even 100 pips. You have to only beat the spread once. To get the same gains with what you are doing you have to trade often and beat the spread over and over.
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Watching price action
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Learning candle patterns on the 4H timeframe and learning that lower time frame patters don’t hold up nearly as well.
P.S. It’s great that you are 20 and learning forex. But, if a couple of years is too long to be successful, well that’s just laughable. Any other business or going to school and getting a job, seven years is just starting. I’m 39 and been doing forex for somewhere just under a year, I wish I was 20 again and starting. It would feel like I had all the time in the world to build a fortune.
Don’t let greed and lack of patience kill your success, you WILL NOT become rich in a few months and probably not in a coulple of years. But, it is very possible that if you learn it well you can make it into a nice income
P.P.S. Here is a little compounding formula for you. To open up your eyes to the possibilites of just a few winning trades. Just put it into a spread sheet. Keep in mind this is fantasy land if you don’t add in losses. NO system or method wins 100% of the time.
A: account balance
B: Pip value =((A2*x%))/50 (x being what percentage of your account you risk and make per trade.) (50 is your Stop loss and your TP, change it for the method you are using, this is your risk divided among your SL & TP)
C: =(50*B2) What you win or lose per trade. With win your account goes up this far with a loss it goes down this far, and you should de compound down to this level. When you win, you compound and use the same amount of risk for the new account level.
To compound on the next line of the spread sheet it would be: =(A2 + C2) Then the above computation would be to the right of the next higher account balance.
The spread sheet looks like this. Lets say you were crazy risk taker, which you kind of are and went ballz out and decided to risk/win/lose 20% of your account per trade. This is what would happen with 30 consecutive wins starting from 100 account. (LOL, 30 consecutive wins.)
account balance/ pip value / 50 pip win loss
$100.00 $0.40 $20.00
$120.00 $0.48 $24.00
$144.00 $0.58 $28.80
$172.80 $0.69 $34.56
$207.36 $0.83 $41.47
$248.83 $1.00 $49.77
$298.60 $1.19 $59.72
$358.32 $1.43 $71.66
$429.98 $1.72 $86.00
$515.98 $2.06 $103.20
$619.17 $2.48 $123.83
$743.01 $2.97 $148.60
$891.61 $3.57 $178.32
$1,069.93 $4.28 $213.99
$1,283.92 $5.14 $256.78
$1,540.70 $6.16 $308.14
$1,848.84 $7.40 $369.77
$2,218.61 $8.87 $443.72
$2,662.33 $10.65 $532.47
$3,194.80 $12.78 $638.96
$3,833.76 $15.34 $766.75
$4,600.51 $18.40 $920.10
$5,520.61 $22.08 $1,104.12
$6,624.74 $26.50 $1,324.95
$7,949.68 $31.80 $1,589.94
$9,539.62 $38.16 $1,907.92
$11,447.55 $45.79 $2,289.51
$13,737.06 $54.95 $2,747.41
$16,484.47 $65.94 $3,296.89
Now that is very, very rosy picture. Compounding is great, but you have to account for losses, which will happen and compound down. And as you compound up, a string of losers can hurt your account if you don’t cut your losses short and compound down. Put in a few losses and you can see why it is rediculous when people think they are going to be millionaires within a year of starting a micro account and never have to work again.
Forex isn’t an end game, you have to run it like business and learn to manage your expenses (drawdown) and be consistent over time.
Right now I’m making $0 -$100 -$300 a week. Sometime I lose a little, but I cut my losses short. The best thing I learned was to cut my losses and don’t let them run, or revenge trade trying to get loss back. It took me many months, and many hours a day of absorbing everything I can, just to get to that point. If I was 20 again, I’d be thrilled as hell with that.
Right now I’m still learning, I’ve lately been ejoying nickb’s method. It was the first one I checked out. I didn’t even try it because it seemed to simple and didn’t take a lot of trades. I’ve personally found that not taking a lot trades and taking more pips is the way to go. And that adding stupid indicators is a waste of time. His method has in common with others I’ve tried that were easy to use and worked well. They only use price action, candles and support and resistance.
The best advice I can give to you is to get this notion of winning streaks and holy grails out of your head right now. What a winning streak usually means is that you are both lucky and using a system that works well in only one market condition. When both of those change, you are boned.
You have to learn to accept losses and risk on your account as part of the overall fudamentals of trading.