Gap year, where to start?

Right then, in the UK just waiting to start my undergraduate in Economics, but will be starting in September 2012… That means I’ve got some time to hopefully learn forex over the next 9 months or so, knowing I won’t amass the knowledge of some guys here who’ve been dedicated for years but I intend to set a foundation for myself.

I just am wondering what written texts I should maybe study, any 'bibles" at all? Will presumably will be starting after some studying, a demo account then will have approx £500 to start live in a few months dependant on my progress.

Will be posting my stages over the year here, and I guess I’ll start with asking about any points of direction I should follow from some of yourselves?

Cheers, oh… Hey by the way! :slight_smile:

Start with the BabyPips School, its covers alot of basic info. Then when you find an area that interests you more than others start to read into it. Also playing around with Demo trading accounts is a good way to find out what you enjoy and what you find totally boring. Demo trading wont teach you money managment, and it wont teach you emotional skills etc with taking a loss. But its as close as you will get to the real thing.

I would also stay away from trading with real cash for quite some time, perhaps longer than your stated 3 months. Yes, sure there will be people who like to disagree and say that openeing a cash account straight away is the most valuable lesson. But then again they will not be making a considerable amount on their own trading account. Ask any expierenced trader here and they will agree. Take your time and learn it all at your own pace.

I personally used a demo account for over 12 months, and now I average in excess of 70% ROI a month

Swords TA Crash Course:

It is better to see resistance as an obstacle that was overcome than as obstacle that stands in your way.

Almost every trader draws both support and resistance levels on their charts.

Support & Resistance are EVERYWHERE on the chart; and if it isn’t then just change the chart period!

Only draw one line at a time. If price is closing higher than something then it is going up and if it does
not close lower than that something then it cannot be trending down.

What is support & resistance?

S&R is a line that price can cross but not close beyond. Price can break support in one time frame
and hold above support in another. One close over is a broken support level but you can get away
w/ holding the line until the 2nd or 3rd period closes over.

You can also trade off of higher time frame wicks(?) that cross support lines betting that price will
be home for dinner.

It is not enough to know North from South, you want to enter at the best places on the chart…wicks!

Not just any wick, no sir, you want a wick that belongs to at least a daily candle; not only to stop you
from placing 90 trades a month but also to give you the OPTION of holding for longer periods by having
the best position on those charts.

Many traders on 15 minute charts just flail around like Forex is moshpit…don’t be many traders.

Say you notice that the daily has been closing higher than “something” and the next day you sit
down and trade long off the daily low extreme. You have the same option of liquidating on the short TF
as the mosher but you also have the option to hold for the median daily range or better.

Or it might be the case that the hour or 4h is closing lower than something and you trade short form the
daily high extreme & then witness the daily candle close lower than something. Now you have a technical
reason to trade the higher chart period for a time.
In most cases you would reduce your position size to give you room for longer term fluctuations.

Trade off the extreme, trade off the extreme, what does this mean?

You want to enter close to the extreme with a maximum distance of a stop loss at the first entry
signal of the leg. If you are further than a stop loss distance from the first signal then don’t place the
trade.

REMEMBER: trade off of the high extreme if price is closing lower than something & vise versa.

Try your best to trade using a naked chart (OHLC is the indicator) and feel free to use custom chart periods.

If you combine the above with solid money management you will be years ahead nearly every trader with 2 years
under his belt

hello SwordOFManagement,

Can you share more on your Custom Candle? How to set it up and trade it?

Why do you draw your trendlines at 5 degree increment?

best regards.

-guandi

I beg to disagree with the first part of that statement: demo trading [B]can[/B] teach you money management skills, as long as you don’t just open large position sizes and set random S/L points; a demo account should be run in exactly the same way as a live account, otherwise the learning effect just isn’t there.

I wholeheartedly concur in the second part of the statement though: only making or losing real money (and it should be more than a cent per pip, too) will generate greed or fear, which can be really harmful and need to be mastered.

Cheers,
O.