Greetings to ALL,
I am kinda new trader and still in learning phase kind.
I am guided by a Full Time Trader from Singapore which has been trading for almost 25 years.
He introduced me with MACD tool at the first lesson, and that was the last thing he tought me too
He also writing his own Expert Advisors (EA) for more than 200pcs and he doesn’t sell.
He also published books and Youtube video with his own Channel.
My point is, to be expert in forex trading doesn’t need to master most of the tools. You just need one and you be expertise in it, it will eventually turn out to be a very powerful one.
I have been trained and practised with only ONE tool (indicator), I only enter order based on MACD, while you still can have other indicators for reference, not to decide SELL or BUY.
MACD tool is pretty easy to understand, all you need is to set a suitable setting based on your trading style. I am a swing trader placing position based on M30 & H4 charts ONLY. I would never look at M1 M5 M15 charts, that is for Scalper type trader.
With MACD indicator on M30, average TP pips you would get is around 50pips, with a SL of 160pips. The risk reward I am applied is 4:1 .
Couple of tips for those using MACD and new traders trying out MACD:
- Do not rush in placing order, you certainly do not want to burn your hard earned money.
- Do not enter trade based on early signal by setting MACD to shorter Fast MA and Slow MA. ONLY enter trade based on 12,50,9 signal from MACD. (This is the most accurate setting using on M30)
- Not every crossover on MACD is a strong signal to pull your trigger. Always double check if it is a strong crossover and potential to hit TP 40 (minimum TP) by checking H4 chart.
- Do not close out order if SL reaches 159 pips. (I have experienced floating loss 159pips turned into 45 take profit !!)
- Spot a strong crossover and enter trade, set TP 40 & SL 160, Lotsize depends on your total equilty and how much you are willing to lose.
These are the few things came into my mind to share for today. Feel free to comment and correct me if I am mistakenly given wrong information. Everyone is keen to learn better in FOREX, so am I .
Regards,
Lee LaoLang (Mr)