Hello fellow traders

Hi fellow traders

My name is Rob and I live in the UK. I have just joined babypips as I would like to learn more about Forex trading. I’ve already started trading in Forex for about a month now with very low deposit. I’ve gained a little but lost a lot though. I find it very exciting and very scary at times too, especially when it starts to go against you!! I was wondering, would any kind traders on here would like to give me any pointers and good advice on how to get on the right road, please?

Any good tips would be appreciated.

Many thanks

Robert

Hey Rob. You’re in the right place.

I’m not sure what your knowledge level is with forex but if you’ve been reading and studying a lot- you still may want to do the Babypips school because it is a very comprehensive tutorial and will teach you everything you need to know.

Not sure what trading system you’re using- but if you are trying to develop one on your own, you’re better off using one that is already established and tested by others. The problem with being a novice and trying to develop your own is you don’t have the full understanding of how everything works and works together. Choosing an established strategy means there’s already documentation that exists on how to apply it and you can bounce ideas and thoughts off of people that trade it themselves. You can find plenty down in the Free Forex Trading Systems sub-forum.

Lower timeframes are harder to trade than higher ones. It may work better to learn on 4hr or 1 day charts depending on what you want to do.

Study everything you can on Risk Management and trading psychology. Learning the mechanics of how to trade isn’t hard. It’s dealing with your own emotions, fear, and greed that is the hard part.

Any questions? Feel free to ask.

Hi Michael

Thank you for your reply.

Yes, I have already started learning about Forex on ‘babypips’. It is very informative. I am just so excited about the whole thing. I wish I had got into this years ago.

I do not have any trading system at the moment, only guess work. That’s why I keep loosing money, I suppose. The way I enter trade is, if I think certain currency is going to go up, in way of candle graph, green, I just click ‘Buy’ and hope it continues to go up and up. And so I do the same when it’s declining. I click ‘Sell’ when it’s going down and hope it continues to go down. Like I said, I do a lot of guess work. I know it’s a very bad thing to do!! Also, because I’m new to this, I am trying to contain my emotions, as well as fear. I tend to over trade, thinking I’m gonna win all the time and I do have some fears too, whereby I close the trade far too early and only to find the trading trend keeps going up or down to the way I traded on.

Do you have a specific system? What system do you recommend for me to look at?

Kind regards
Rob

When starting out, I think that guess work is okay to a certain extent. You’ve just started learning & the guess work allows you to familiarise yourself with the charts & the trading platform. I also think that if you can start winning more trades than you lose, it’s obviously training your eye to spot the direction of a currency pair.

As your knowledge improves, the guess work will be slowly taken out of the equation & an element of skill will go in to your trading. Work your way through the school & implement what you learn in to your trading & see how you progress.

My advice on starting out, trade off the daily charts. Trades don’t come up as often & it’ll seem boring to start with but you’ll be able to gauge things better. Trading pinbars on the daily TF is what has kept my balance up. Try watching this (it’s a quick YouTube search I just did so search more for further info):

Candles on the higher TF’s carry more weight as more data has gone in to their formation. If daily is too boring, include the 4hr (maybe even 1hr) as the same principals apply.

Just keep things simple & don’t sweat a loss, it is only demo after all & you are just at the learning stage so stick with it & it’ll all eventually start coming together.

Good luck!

Hey Baz

Thanks for the tip. I will take it all in. I’m here to the end and I’m determine to succeed!!!

Good luck to you too buddy. Speak very soon.

Rob :wink:

I ended up settling on Price Action trading which is simple and effective; which also makes it popular. There are several extensive threads on it on the forums here and a host of information around on the internet.

You’re right in that guesswork isn’t a good approach. Most traders outline the specific criteria in which they will enter a trade in their trading plan and strive to adhere tightly to it. The idea behind it is that your trading plan is developed when you are calm and level. You’ve already made all the difficult decisions regarding how to enter/exit trades and just need to apply it through your strategy.

So for example; my entry criteria looks something like this.

  1. Established trend on the time-frame.
  2. Favorable candlestick on the next highest time-frame. (Example- if I want to enter a Bullish trade I want the candlestick in the next highest time-frame to be favorable to a Bullish trade. Not trading into significant S/R.)
  3. The pair forms a favorable formation (pin, engulfing) at a significant pull-back (mid-range of Fibs).
  4. Stop Loss is placed just behind the formation.
  5. First target is the top/bottom of the Fib levels (depending on direction).

No feeling, no emotion- just logic to apply to the market to find my entry and exit criteria.