Hello babypips bbs

Community Introduce Yourself
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I’m a recent university graduate looking to make use of my time at the moment. I thought perhaps learning about forex was a reasonable thing to do, and my friend recommended babypips.

I don’t have high expectations. Not looking to take big risks. Just want to learn a sensible way to make a little money on the side.

Hope you’re all having a nice day.

2

I think that your realistic mindset, you’re off to a good start. :blush: I suggest you really take your time to absorb as much knowledge as you can and don’t be afraid to ask from those who are are more experienced. :blush: Good luuuuck!

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First lesson, then - learn HOW NOT TO LOSE MONEY. Protect yor capital at all times. Practise first on a demo account, until you’re comfortable with the process.

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Thanks Steve, that sounds like a great plan to start off

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The key elements are knowing yourself inside out, to manage the following emotional responses to trade outcomes:-

  1. Keeping risk low by setting yourself a daily exposure limit, e.g. 5% of your capital.
  2. Don’t overtrade.
  3. Don’t revenge trade when you lose. Accept you can’t be right all the time, and there’s always a better trade awaiting.
  4. Never gamble. Protect your account at all times.
  5. Cut losses early. Never let the market prove you wrong.
  6. Aim to let winning trades run. When your first profit target is in view, close 50% -70%, move the S/L to breakeven, and let the balance run. Trends mostly end in a big bang, so there is normally technical signals that highlight the end is near.

Hope that helps. Psychological self management is critical for success.

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self management i just love this word , actually there is no great teacher in this world without self learning. but this reality we cant realize and always try7 to depends on other.

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all point you have mentioned already is really good and informative but from all i think "over trade " is more important , because due to this bad habit we traders for all time lost our whole equity.

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While I was managing a demo account eighteen months ago as though it was a live account, on one intraday I took trades on 13 differing currency pairs, and lost the freaking lot.

My own small black swan event. Fortunately my risk exposure was low, and I managed to escape a heavy demo loss. And for others who overtrade, reduce risk exposure to 5% max per day - and stick to it. Discipline and patience are key mindset controls.

It only had to happen once for me to learn not to overtrade ever again. Every trader has a strength and a weakness, some more than most. My strength is to cut losing trades early, Why nurse a sick trade in the hope it would get better. For sure, the odds are against making any profits from it.

My weakness is the mirror image - I find it difficult not to cut winning trades as well. My solution, close 50% -70%, move the S/L to breakeven, and let the balance run.

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Very interesting to hear about your experiences, Steve. Very insightful