I do agree that they need to experience it themselves. But this business is not forgiving, and mess ups in the earliest stages of trading can affect all the outcomes going forward.
The whole point about trading is putting the odds in your favour. I’m sure all would agree with that statement.
Well the odds are that as a beginner trying day trading you will not make money .
Should not that be among the first considerations?
Of course it’s really hard when there are course vendors, brokers and even experienced day traders telling you it’s all so easy.
And yes, too a point it is all about your personality, and yes the technicals on a daily and intraday are not that different - but emotionally the two are poles apart.
In closing the difference between someone wise and someone not is that the wise person will learn from other people’s mistakes rather than having to go through them themselves.
@Johnscott31
Swingfish
he is a forex trader very good one i guess,
he has a youtube channel and a discord channel… just type swingfish there
Long time trader from asia also, im not sure if hes in thailand too…
Funny enough this is exactly what I did before I even started the babypips course or Forex research. It’s helped dramatically, and not just in regards to trading but overall well being
Mental fatigue is your worst enemy. Trade based on pip targets will reduce the mental fatigue if they are realistic. Over time, you will realize that most profitable trades are not continuously monitored. Learning to live by your trades will take close to 5 months of delibarate practice on live account not demo.
For example, if your weekly pip target is 180 pips, you will only need 36 pips per day, this will reduce on the mental fatigue and the noise you constantly see on the price action.
My case is different because i target 10 pips per trade and only 4 trades per day, so using 1hr, 4hr and daily charts can be helpful but it will depend on the lot size and your business equity.
Meaningful forex trading business is viable if you have enough capital and you can trade just 1 lot per trade. But you have to close the open trade before you enter the second trade, this will help you to master the skill mentally and discipline.
My only worry is that you take forex trading as a hobby not a business. When you mention doing it part time, implies that you are still not yet ready to take on the profession. I have never seen a professional boxer taking boxing as a part time game.
During your week of relaxing, focus on what went well, what didn’t go well, and how you can improve when you are back in the market?. This will reduce your mental fatique i result my case.
I trade virtually every day, admit I start Monday night and start to back out Thursday night/ Friday, the only thing that has changed for me over time is I’m now trying to take better quality trades.
I’ve probably cut my trades down from between 6 to 10 to more 3 to 4 and my hit rate is around 65% to 70%.
I trade 4 hour charts and end of day, using 3 different strategies on the 4 hour I’m looking for aggressive movements and quick in outs, on the end of day I’m looking for trends I missed on the 4 hour and reversals.
Hi @Johnscott31 are you able to tell me how I find your blog? I would love to have a look at the stop strategy you mention, and also the information on there in general as I always find your posts informative. Thank you!
I find my stop strategy so blindingly simple I havent even written an individual post about it. Maybe about time I do!
Cheers
Just one point, while I have used this stop system for god knows how long now, it will not work for every type of strategy.
All my strategies, either work very quickly or not at all. This is the type of system it works best with. Also how successful intra day it is, I am not sure. I suspect at liquid times of day its better - but as I am not a day trader I really have no idea.
Hi and welcome to trading. Just don’t worry 5-10% per month that’s the perfect outcome for you. Imagine those big boys, they are making only 3-4% per year and not per month. Just don’t over trade (2-3 trades per week is enough) and journal all your trades and at the end of the week analyst them.
Mental health is very important so you should not let your work affect it. You can construct a long term trading plan. Trading higher time frames will also help. Establish a setup that does not affect your health, and trade according to that framework. Good luck.
Thank you all. I took most of the advice given here from the experts (Thanks everyone!). I now trade on H8 timeframe. This force me to wake up an hour earlier than my scheduled alarm call. (an hour extra for myself) Essentially now I only keep track of my system 3 times a day. And I have set TradingView Alarms to beep me if the signals meet my rules. The tricky part is to stick to my own trading rules. I have traded 2 or 3 times with my gut feel. And I got lucky
However, win rate is not 100% (never will) but how to keep it above 50%. I am bordering on 60% range win-rate but it will take a big loss to wipe out profit
I could not trade on 1D time frame - why? Because my broker resets the D time frame on my local time 12 midnight. Means my chart from my broker is off. I stick to tradingview charts.
It is less stressful for me now. But back to the question - longer time frame equates bigger stop loss? I am unable to manage this well for now.
I am using Double Bollinger with RSI which I am comfy with. I have also realised a couple of matters which I would like to share and hear your views:
EUR/USD syncs in tandem with Gold. If USD strengthens, then Gold price will go lower. Meaning, EUR/USD goes down, Gold price will go down. Do not be tempted to look at Signals that signal providers gave you FoC.
if SP500 or DowJones goes up, USD will weaken (i.e: EUR/USD goes up)
If there is a strong SP500 or Dowjones downward movement, Gold prices will go up
AUD/USD seems to be an early indicator of EUR/USD movements.
There is a relationship between EUR/USD and USD/JPY, i could not relate off my head, means I am not ready for JPY.
Additionally, I have read books written by ex FX traders in Financial Institutions. All of them talk about “taking pips”. It seems that they aim to win X number of pips per trade , and each month. Dollar values and monetary rewards seems secondary to them.
Most of them talk about simple trading systems, longer time frames (with occasional 1H timeframe for confirmation), trading the news and trading psychology (i.e: trading few pips away from round numbers)
