My name is Ben, I an I have started learning to trade myself two and a half weeks ago after I have decided I want to be able to control my money instead of being a victim of all those hyip and autosurf scammers.
I have decided that I am going to take this forex project very seriously…I really want to.
Till now I have finished babypips school (thanks so much for the owner of this site, I really mean it). I have written down to a notebook all the important points and read it all over again. Then I have searched and read a few more good e-books, one of them is yours, phill.
I really think that your e-book is a great stuff cause I am trying first to learn how to identify trends my self without all these indicators. I think the indicators can be a great tool for confirmation of a trend, but they are wrong many times, and show only what was in the past…what do you guys think?..I am right…right? lol.
OK so in the last two days I have started to trade first time in my life (with a demo account of course) with your method phill, and made till now 6.4% profit! I have a rule of MM not to risk more than 1% ( maybe I will go for the 2%).
OK I know it will take at least a few years until I will be a successful trader, and I know it and ready for it!! In the two last weeks I have spent most of my day just reading and reading and I must say I am just enjoying myself…and really want to learn more. I have decided I will not go to a course cause I have the ability and time to sit next to my computer and learn.
Sorry for spamming your thread phill with all my stories, but I want to say thanks you, and ask when will the second e-book be ready + how and where do you (or others here) suggest a newbie with a very big and strong desire to learn forex to start? I have learned all the basics of babypips + read as much articles as I could on each indicator. I have read also about a few trading methods like the kawabanga system…but, do you guys really think it is a good idea to start with these indicators instead of learning how o spot those trends only with my brain…and of course some other tools like pivot points, fiboracci and trend lines? till now I have used them and got good profits, but I feel that I am not 100% sure every time I open a new position.
Sorry again for all my spam…maybe it was better to open a new thread in the newbie island…but I have read only this thread till now and I wanted to spot my question about learning first methods like phill’s…without indicators…and say thanks for sharing, phill.
By the way you feel like nice guys…I am glad I took my time to check this forum.
hey rocket an inside bar means the market is “coiling up” and getting ready to move kind of like a spring that is compressed so the way i play them is i trade the direction that they break so if the candle after the ib breaks the top then i long the market if it breaks the bottom i short but heres the thing. i would only trade the ib if it were at a signifcant level and the trade has room to move. but thats me i always try to look for the highest probabilty setups
I think the indicators can be a great tool for confirmation of a trend, but they are wrong many times, and show only what was in the past…what do you guys think?..I am right…right? lol.
benji welcome to bps im glad youre here. i think phil is on vacation but i dont know for sure??
anyway i would have to say yes you are correct indicators show the past. they do lag accual price so my advice to you is learn price action and learn support and resistance. this is a great place to learn and grow. when you got the basics down and you want the advaced stuff check out the james16 thread over at ff but stay here and hang out it is really the best place on the internet to learn.
the j16 thread is daunting but if you read through the first post which has the “important” posts all listed you will get a nice jump start on some of the methodology and btw whichever style you adopt and whatever method you use those methods will help you.
ive read phils ebook and i think he is an excellent trader and if you were to learn his material and fully understand it then i think you will end up being apart of the 5% of people who acually succeed.
good luck, john
hey john, for IB trade, beside S/R and scalp line, do u refer to any other indicator to confirm your entry? Or u will enter as and when it break the top / bottom of the IB?
Hi John, thanks for the warm welcome! I am glad to be here as well.
Actually I am focused most of the time on the support\residence zones. I do not know yet exactly what “price action” means, but I will for sure go over the thread of it here in babypips and make a deeper research on it (I saw a link to it here in this thread).
Actually I have seen the link to the j16 site and saw most of the videos there. Good stuff. I will search for the thread as well.
I appreciate you reply John. And of course I will do what’s needed to become one of the 5%
hey john, for IB trade, beside S/R and scalp line, do u refer to any other indicator to confirm your entry? Or u will enter as and when it break the top / bottom of the IB?
i personally don’t use indicators except for spotting divergence which is a different subject. hhowever you could use stochs to look for overbought or oversold conditions if you want to. Im not saying indicators are wrong, some people love them I just personaly don’t use them.
@benji price action simply means looking at price. it is watching the flow of the market and observing wha tprice is doing. you will notice price tends to “obey” certain levels and areas. if you learn to trade by watching price move instead of 100 indicators then you will become successful. it just takes time an effort
Hi Ben, welcomed on board. Nice to see someone is so committed and learned a lot from Phil, me too, I am also a newbie and have learned great stuff from Phil especially. He is a good trader.
Let’s roll out whatever questions you have so that I can learn from you too.
s050399b, that looks like a good setup to me. I would have done the same thing but I think the price might have bounced off of an area of S&R around the 131.70 area which looks to have some historical significance. Did you exit this morning around that area when the price started to slow it’s downward progress, or are you still in the trade?
I am still in the thread, I have added a picture of what it looks like now, it has been bouncing off the ceiling of the trend?..not sure to hold it over the weekend or…
It looks like it’s bouncing between the ceiling of the trend and an area of support and resistance around 131.60. I’m not sure what Phil’s opinion is on holding positions over the weekend either. If you look through charts historically, you see trends continue over the weekend so it don’t know that it would be an issue but it would be good to hear thoughts from others.
From the looks of the image the price is coiling into a pennant/flag/triangle etc. This means that price will break in either direction and it’s impossible to really say which.
I’d keep a very close eye on the trade and if by the end of today’s trading there is no clear trend direction I would close the trade out. The weekend could well carry news (from the mundane to the catastrophic earthquake type) which may affect your position adversely with no opportunity to close out.
If there is a clear trend and you’re showing a profit, however small, I would move the stop to BE and play it from there.
Having said that, there is of course the possibility that price gaps past your stop so it’s still risky and you’ll need to have confidence that the existing trend will continue. I’d switch the the daily charts and check out what’s going on there - any IBs, consolidation, price patterns etc. This should give you some heads up what price is likely to do bar any major influences.
I apologize for not being around. I ending up staying away on vacation for a week longer than I originally intended.
s050399b, I think what happened with your trade is that you got in too late, and you saw a trendline when there wasn’t one. Two bounces don’t make a trendline. You can connect any two points with a line! What makes trendlines special is that you can connect three or more points with a line.
Also, even if it was a good trendline you got in a little late. The perfect entry would have been a few pips below the reversal candle, around 132.60. If you had gotten in there you could have gotten out of the trade with a bit of profit when you started seeing reversal signs (multiple long wicks in the wrong direction and dojish candles).
But since you got in late by the time you saw the trade wasn’t working you were in the negative. I know that a lot of the time it’s unavoidable and a trade goes south with no signals at all, I’m just trying to point out that it didn’t have to happen with this trade.
Don’t get discouraged though. Any trade you learn from isn’t really a losing trade! And if don’t have the guts to practice and take a few bad trades you’ll never learn to pick out the good ones.
As for holding trades over the weekend, I don’t like to do it, but I do it when it’s necessary. It all depends on the situation. If a trade has made 2x profit and it’s Friday afternoon I’ll probably close it out. But if I opened a trade on Wednesday, for example, and it’s moving really slowly in my direction but has no reversal signs I’ll probably move the SL to breakeven and keep it open.
