Hi Millowena and welcome to your future.
I say that with all seriousness, because you have landed in the right place at the right phase of your trading life.
Normally folks graduate from Stock trading to Forex through a variety of paths. But regardless of how you became interested in FX trading, the important item to note is that you are in a LONG TERM (LT) thread.
Experts will say that new traders should hone their skills on LT trades before they attempt the roller-coaster thrills of ST trading, or even swing-trading. I fully agree with this, having discovered it to be correct in my own experience and evolution as a trader.
Our brains simply struggle to handle the fast-pace of leverage, especially when we are new to this. The pips (and thus dollars) flow in and out of our a/c at an amazing rate. Of course we want them to flow IN to our a/c.
But the very worst thing that can happen to ANY new trader is to have success at the first attempt.
Because straight away, the head comes off and on goes a pumpkin … we begin to think: “How easy is this? How long has THIS been going on!” And we become bolder and more reckless than we ought.
Why not … we really haven’t experienced the events that keep us awake at night if we haven’t had a loss. But this is NOT about winning or losing as much as it is about Trade Management, or rather Risk Management.
When you have the keys to the company coffers, you are employed as a Risk Manager. If you lose the firm’s money, you get the sack … right?
So why be less careful with your own money?
I know you will do OK with this (more than OK really) because you have had the drive to go out and have a go at getting something that works. This one is free, and I will say it is simple and works. Nothing to complicate it except our own impatience and perhaps being a tad greedy to harvest pips more quickly than the market is prepared to hand them over to us.
Before I go, (it is almost midnight here in the East Coast of OZ) I have to say that my input may be a bit restricted for the near future. I am going back to some serious study, and will participate where able.
In the meantime, run with it yourselves, and feel free to either PM me, or write a question on the thread. I will try to keep up with the thread.
I am certain you have enough info, especially if you keep in mind the MAIN TRENDS and do not trade against these trends.
Further, please read and re-read Spudfyre’s thread here:
Spuds Stochastic Thread Theory
and if possible, PRINT is out and keep it on your desk to refer to frequently.
DO not OVERTRADE - just take the trades that are there, and try to specialise in no more than 4 of the majors - limiting your expertise will make you more focused and an expert in the few you DO choose to trade.
Restrict your use of leverage - try to learn more about leverage and its effects on your trading capital, and do try to keep your Stops wide. Manage risk sensibly and you will not only prosper and thrive in this, you will experience a joy that has been lacking.
Finally, try not to introduce any more indicators … they really are not needed and only introduce other variables that will distract us. Eventually we will be able to dispense with even the candles, though I still like to defer to them briefly as I eyeball the majors.
God bless you all … I will be back when able.