Generating Trade ideas

I still need directions in generating trade ideas, can any one Help?

Try different trade strategies on a demo account.

2 Likes

There are hundreds of trading strategies but first decide what your first strategy should look like. Maybe something like -

simple to run
uses straightforward TA which is objective , so you don’t have to make lots of judgement calls and it is easy to back-test and demo
appropriate for a small account
applicable to most markets
involves the right time-frame(s) for your trading "job"
does not involve massive risk per trade (as a % of your account)

2 Likes

Watch the charts. See how they move. Open a demo account and start playing about.

1 Like

Generating trade ideas? Sounds like you are trading fundamentals. It’s difficult if you are new to trading and takes a lot of time to read everything. This is how I do it. I watch and follow all data releases and central bank statements. Then I read and analyse is it good or bad for economy. Also what are the coming risks in the market. You will then get a bias long, short or you don’t know. If you dont know move to another pair. Once you know the bias or expected decisions then you can trade in the direction. Or you can try technical trading. Do the babypips course and itll give you some ideas of ways to trade.

3 Likes

@GMoore thanks for the help

@Rickster99 thanks for the help .

@tommor thanks a lot for the help

@jessoprules thanks for the help.

Bryan_1,
I think a good place to start (and it’s just my opinion,) is with price levels.
By that I mean a lot of traders use different means to find where the price might go. Some use Ichimoku and bounces from the Kijun line.
Some use moving averages,or their relative, envelopes, to see if the price is likely to move toward or away from them, or just how far away they are from the price.
A lot of traders use horizontal support and resistance lines to find a level that the price might bounce or break through.
Like that, too, are trend lines and trend line channels where the price has been and seems to be contained by it.
Anyway, those are all ways to find a price level to trade from. (The level will suggest the direction, toward or away.)
The only other thing I do is look to see how the individual currencies are faring against the currency other than the one paired. For instance, the Yen has been stronger than the USD and is not too weak (daily chart) against the Euro or AUD. The USD is weaker against most last few days, so I will probably sell the USDJPY. That’s just my view and not a recommendation.
Hope you make some money!

3 Likes

Happy to help always

1 Like

Some trading ideas from technical analysis can be very confusing so I prefer to stick to fundamental analysis instead because it rests on sound logic instead.

1 Like

ontario,
Interesting.
I find fundamental analysis too complicated. Too many fundamentals tracked on different timelines: annual, quarterly, monthly. Between releases, everything seems to trade on technicals. So.

In industry, we kept up with our materials, most of which we could not buy here but purchased internationally (and some of our customers were also foreign), and could tell when things slowed/picked up, but from that we could not tell how how bad/good it would get or how long the situation would last. We had a person who hedged for us in Euros but what they did was just a guess at what could happen by how they saw the current condition.
I think that how they saw things would be called - sentiment. Something to look at, too, I guess. Like Rickster99 said, you have to decide if it is good or bad.
Anyway, I hope you do well.

1 Like

@bobart thanks for the help.

This is a good one that I’m still trying to do more of myself! It’s not the only thing I consider but it has definitely made some of my trades more informed and I feel more confident taking them. :slight_smile:

2 Likes

In my opinion you should go back to demo account and try several trading methods. When you find one which suits you the best, try to develop your trading strategy around it. You will generate your trading ideas then

1 Like

You could watch some youtube videos of some other people well known trades and try to replicate the whole pattern with that matter. I do hope it really helps with everything going on there for whatever reason you may have. Can we ? I do hope it will work out.

1 Like

Charting analysis looks very controversial because it allows making pretty subjective conclusions and basically prone to confirmation bias. You see what you want to see. But there is a constructive and sound approach in statistical verification of technical indicators like EMA, DMA, RSI etc. In some period they can start working but because of dynamic market nature they become invalid in some time. That’s why it is also not so easy to successfully use them in trading

1 Like

Thomas N. Bulkowski quantified stock patterns to take some of the subjective out of it. The same has been done with anything that can be exactly defined. However, just looking at charts, humans have the innate need to see patterns (recognize faces, etc.) and will sometimes see things that really are not there.
The reason that real world transactions (purchases, investments, transfers, etc.) do not predict prices is because price discovery is is arrived at mainly speculatively by auction (bid/ask). Auctions can be volatile. :slightly_smiling_face:

1 Like

There are so many websites which are providing different content for trading and strategies, about how to use and how to manage account, one can check them for more clear idea.

1 Like