I am just starting out demo trading after studying the basics of forex trading for a few months, and have decided to use a strategy based on a retest of a broken horizontal support or resistance level in a clear trend - just to keep everything simple.
I have had some wins and some losses (which i know is expected as no one will win 100% of the time), however I have not felt confident in any of the trades being placed. I know this will be partly due to a lack of experience and gaps in my knowledge so I am constantly looking to overcome this, however some things are just too difficult to learn on your own, and I for one cannot afford to enrol in an educational course at the moment, even though I would like to very much so.
I would like to ask for any assistance on which, if any, indicators I should apply to help with achieving better entry points in my trades (or perhaps any general advice on improving this), as this is where I feel like I fall short.
Also, I am struggling to get my head around leverage, but I will leave that for another post as I believe this will have been answered elsewhere.
Also, if anyone has any experience in trading in this price action based way, any advice or guidance would be greatly appreciated.
Hi Matt, if you give us an example of a trade you have taken or are looking at then maybe someone here will be able to give you more specific advice.
As long as you’re profitable in the long term dont worry about being right 100% of the time. If your risk to reward is good then you’ll be ok. Once you see profitability in your strategy then you will have confidence in taking the trades all the time.
Thanks for the reply! I’ve reviewed a lot of where I went wrong with some of these trades and I think I can pinpoint it down to more specifically about entry signals. I have seen many use various chart patters or candlestick variations or even indicators (which I currently don’t have), and I think my lack of knowledge on this is affecting my results. From your previous experience, what works for you and how did you go about implementing this aspect into your plan.
Thanks again.
@matt.bagg - matt, at this stage if you’re not regularly profitable, the problem is not likely to be JUST a poor entry price. OK, if you look at the losing trades, it will look like if only you had entered 1 bar earlier or 100 bars earlier, you would have made money. But don’t get hung up trying to find ways to wind the clock back and enter earlier and earlier, changing the entry rules will affect the winning trades too and the net result may not be as good as the effort and risk and stress would point to.
Whatever leverage you use, make sure your maximum loss if your stop-loss is triggered is only a small percentage of your account. Many traders use a 1% limit, many say 2% is their max.