How to decide about positions?

How many positions do you open per day/week in case you are a beginner in the trading world? :roll_eyes:

As a beginner, you need more time to do your TA and think through your strategy, making your plans, refining your tactics and observing what price can do and why. Start with one pair.

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I would advise you to act as carefully as possible, because you are still new to trading.

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As many as my risk management plan allows for and my trading strategy fires signals off for.
Trade off analysis is always required because most of the time, when one signal fires many will follow shortly thereafter due to broader market correlations.

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As a beginner, I would stick with single digit when it comes to the quantity of trading. In fact, I would prefer to spend more time with demo account to get better with my trading style

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Keep your eye on trading signals and technical analysis. Plan out your entry and exit positions as per the signals.

As a beginner you need to spend more time on your analysis, practice more on demo accounts. You don’t need to open more and more positions initially, open a few positions initially and do apply your trading strategy to earn profit.

Just move forward according to a good plan and go slow in the beginning, that’s better.

Yeah one or two per week sounds manageable for a newbie. More than that and you won’t even get to really pay attention to what you’re doing.

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Thank you for this information. I actually practiced on a demo account for about 2 months and after that, I started trading on the live account. It took me some time to understand the market trend and strategy but now I am quite well versed with it.

After you get competent at running your strategy and at doing TA on one or a small number of pair charts, don’t keep increasing your watch-list, it will not make your trading more profitable.

The reason is correlation. So many pairs are correlated with others that positions on two pairs will tend to either cancel each other’s profit or increase each other’s losses.

I think this is where journaling is essential. Trade by trade, you can see what went wrong. But without looking at all your trades that month, you won’t see the patterns.

Keeping a detailed journal will help you see your mistakes and the patters within them.

Exactly. Patterns are what we should be looking for to see “running themes” in how you react to certain things. Also I feel like it’s usually the same one or two problems that persist - at least for me.

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@ponponwei
For me, one BIG problem is getting scared during retracements, then closing before the swing really begun.

Big problem #2 is late entries. A swing will begin and I’ll jump in during a bounce and my SL isn’t wide enough, and I get stopped out.

Problem #3 is manually closing my trades without following my closing steps. I’m supposed to check the slower chart to see if if price is reversing or retracing, but I have a habit of not doing any of my steps and I just close. Then, of course, the next day the price will sky rocket (or sink like the Titanic if I’m shorting).

I literally have a three-step closing process and each time I close I think, “I don’t need to check those steps—I know what I’m doing.”

And I regret it about 2 or 3 minutes later.

Mine is stoploss. It’s either I don’t use them (I KNOW I KNOW) or I keep moving them so really, not sticking to the plan because of greed or fear of losing money.

Oof that sucks. I heard that’s worse: missed opportunity vs. losing a trade.

It sucks though when you keep repeating it! You’re just there like “ok here we go again…”

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Thats exactly how one must begin. Good luck to you. :slight_smile:

This is indeed helpful. I prefer FA than TA. So based on FA I place my bet for the instrument

Thank you :slight_smile:

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Missed opportunity is really annoying. The greed of earning more has made me missed so many opportunities even when the price of a currency pair was at its peak

If you are a beginner, open positions in a single digit. Remember the basic rule in trading - It’ll bribe you but don’t be greedy else you loose more and earn less. Don’t rush