Can any experienced traders please review my plan to learn FX

Beginner Questions
1

Hi, I’m making this plan so I can have clear goals to overcome, since I tend to become overwhelmed easily.

I’d love opinions from experienced traders on this plan, and any gaps in my plan in terms of what to learn. Also a small disclaimer, I know that learning a subject isn’t so black and white; however this is just meant to be a rough overview of what there is to learn currently, albeit in bite size chunks. Also this helps me perceive trading successfully as a much more tangible goal as a newbie.

My plan

Part 1: Go through babypips school enough times to gain a complete understanding of its content.

Part 2: Learn a simple strategy from the net (can be before completing part 3), and start demo trading. Focus on sticking to the strategy, money management/psychology and gaining a firmer grasp on my broker’s platform, rather than profit.

Part 3: Research what books/sites to read pertaining to technical analysis, fundamental analysis, sentiment analysis, money management and trader psychology (to deepen my knowledge). Then learn what makes good strategies (in different market environments), and how to create one.

Part 4: After gaining a strong grasp on topics pertaining to part 3, start demo trading with a strategy I’ve created. I should aim to create the strategy based around my perceived strengths in the types of analyses. After I create my first strategy, learn how to back-test it properly. Then finally refine the strategy after learning my real strengths in the types of analyses through experience. (Back test this too of course).

Part 5: Once I make consistent profits from my strategy while demo trading, start live trading with a small account. Do this while making sure to stick to what I’ve learnt from demo trading, instead of gambling after losses. Increase deposit based on performance.

Final part: Keep learning more so that I can keep up with market environments etc.

I’m planning to dedicate 4-5 years before even considering becoming profitable as a trader (I know I could be profitable earlier but I’m trying to be realistic). I’m going to be learning how to trade alongside my degree in computer science. I’m only 19 and have 4 years left of my degree (if I pass lol), so I’m not worried about making money quickly. Plus I’m hoping the degree will help in potentially creating algos for my trading.

Thanks for reading!

2

Hi there,
Here’s my advice

1 or 2 open position at any point in time, do not enter new position before previous position is closed.

At any point in time,
If leverage is 1:200, do not utilise more than 5% margin.
If leverage is 1:50, do not utilise more than 20% margin.

Good Luck

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3

Hi Turtle, I think you have a pretty good approach to get going.
There is no one way to trade or best way - you need to learn your own way.
2 things.

  1. The quicker you can get trading the better. Get your own Demo acct open ASAP & start taking trades & see what happens.
    Google & Learn how to use whatever platform you are going to use first & worry about strategy 2nd.
    You can open as many Demo accts as you want.
  2. Forex Success = 95% Trading Mentality - 5% techniques/Systems
    Read as many books you can on developing a Traders Mindset.
    There are many Strategy’s - but only one Mindset that works - trading without fear.
    Some of the quotes I look at daily are:
    As you get better at trading it gets easier. Don’t wish trading was easier - get better
    The goal of a successful trader is to make the trades, Money is secondary
    Success is the sum of small efforts, reapeated day in & day out
    Be controlled, disciplined & consistent
    Follow your processes exactly & put emotions to one side
    To have excellence in trading you need to develop excellent habits in everything you do
    Trading is a game - to win you must trade with no emotion, only logic, fact & calmness.
    Good Luck!!
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4

I appreciate your trading plan. Very good step in trading. I think BabyPips shoal is the most effective and best learning platform for new traders. Simple strategy like scalping is the best startup for beginners. And demo trading platform should each and every trader should try unless they began experts. My opinion is every trader must spent minimum 2 months using own demo account. And of course if you follow step by step like you said surely you will earn consistent profit.

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5

On the contrary. Anything to do with scalping is the last thing in which beginners should be acquiring any interest.

6

Alph, Howzit Braugh??? :surfer:

The Ever Salutating VIPER

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7

I’m fine , thanks for the concern.

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8

I don’t like the bit where you pick a trading system and stick with it. I know you are trying to do the right thing, but you should try a whole ton of stuff early, when it does not matter, to help you work out what you like and don’t like.

Try scalping. Try trend following. Try trading reversals. It’s all just fake money at this stage. And once you figure out what you like and are comfortable with (which is not the same thing as successful with, btw - you are going to do all of these things very badly), then you can pick a system to focus on.

Fail faster. You learn a lot from that.

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9

People who chop and change their trading system all the time never become profitable.

I take your point about trying lots of different things, failing often and failing quickly, but -

Trying all these (and other) things is part of “picking your system”. It goes before selecting a system with a proven edge and sticking to it. Having done that, it’s certainly a good idea to pick a proven system and stick with it.

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10

Agreed, but…

That’s not actually mentioned anywhere in his plan. Which is why I raised it. Perhaps it was implied, but since this was posted in the ‘beginner questions’ section, I thought it better not to make too many assumptions.

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11

Yes, I take your point. I don’t think we’re really disagreeing - I was just clarifying the “order” of doing things.

12

my advice: dont even start trying to learn trading. you will only waist your time.

and completely ignore babypips school, whatever you learn there you will only learn wrong and it will take you lots of time to “unlearn” the wrong knowledge.

my advice goes even further: completely ignore anything that is presented to you online. it is usually unstructured and confusing and mostly wrong. evrything online for free will be stopping you from becomming any trader or take aside profitable.

stick to good books with reputation. structured knowledge leading you from a to b over c towards the final goal of Z. online gets you b then a bit of a then a tiny bit of Z and everything you read only confuses you. babypips school is a perfect example of that.

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13

I’m quite surprised you’ve made over 1,200 posts on the site, if you think its education pages are so damaging and dangerous.

14

Thanks to everyone for their feedback and discussion. So far I’ve collated stuff to add from the feed back you’ve given me.

  • Open fewer positions when trading (1-2)
  • Place margin limits based on the leverage used
  • Experiment with multiple strategies before settling on one
  • Try to learn in a chronological fashion, rather than learning aimlessly
  • Learn and experiment with my broker’s platform ASAP (I’ve chosen pepperstone UK)
  • Place more emphasis on trader mentality, rather than strategies/techniques
  • Place more importance on making trades as motivation, instead of money
  • Be rational and logical rather than emotional
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15

[quote=“TurtleTrades, post:14, topic:119462”]
Open fewer positions when trading (1-2)
Place margin limits based on the leverage used
Experiment with multiple strategies before settling on one
Try to learn in a chronological fashion, rather than learning aimlessly
Learn and experiment with my broker’s platform ASAP (I’ve chosen pepperstone UK)
Place more emphasis on trader mentality, rather than strategies/techniques
Place more importance on making trades as motivation, instead of money
Be rational and logical rather than emotional[/quote]

Those look generally like very good advice, to me.

I’m not quite so sure about “Place more emphasis on trader mentality, rather than strategies/techniques”, because without having a real, objectively proved edge, you have nothing - and it doesn’t matter how good your “trader mentality” is. Most people who lose money trading forex don’t have an edge.

16

babypips is NO educational side. it is a entertainment site. its like facebook or twitter. if you think you can learn anything on BP then say “good bye” to your money- if you didnt already.

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17

I agree with what you’ve said, I just wrote that with the assumption that I would have a strong skillset; before actually basing more emphasis on trader mentality. The reason I’d place emphasis on mentality after skill-set is because I don’t see myself opening a live account until about 6-12 months of demo trading. I’ve made this decision since I’d like to think live trading would have much bigger impact on my psyche, compared to demo trading. However I’ve planned to become profitable during demo trading, so of course an edge would be present when live trading.

18

here. start with this book:

https://www.

read it 2 times minimum. while you read it look at charts and try to find examples of what is described in the book. this book will safe your account -IF- you really care to read and to learn. skip online crap. just listen to that advice. im trading since 2008 and i made and make my money with it. im not trading for a living only. im trading to make money, big money.

be glad i stumbled over your thread.

then contimue with this book:

https://www.

after you mastered the knowledge in those 2 books you should lookout for good trading psychology books. and then you can put money in your account.

just ignore online crap. if its not worth enough to be published, printed and distributed on paper then it is plain worthless.

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19

Thank you for the resources! I appreciate it. I’ve saved them and will read them whenever I have free time. I’ve started to read “the new trading for a living” by Alexander Elder too, if you’ve heard of the book; what’s your opinion of it? I’d like to avoid wasting time. Thanks again. :slight_smile:

20

i dont know i havent read it. but i dont read anything anymore since years to be honest.

the title is already so bad that i would avoid that book by a mile. any book with a title that promises you something is usually crap.

like “how to get good looking chicks in your bed” or “how to be the star of any party”.
would you buy books like that? i wouldnt.

you are beeing marketet at.

loser who cant make money trading do such books and sell them. they dont trade for living they sell for living. and whatever needs to be sold (marketing, catchy names, advertisement etc.) is usually crap.
thou it for sure is still better than online education in any form!

by the way. your name is 0robably leaned on the turtle traders from the 1980ies and 1990ies. that strategy aswell still working but needs a lot of experience, nerves and patience. so if you havent heard of it then google turtle traders pdf. theres a book of one of the turtle traders who published the strategy and the story years ago.

1 Like