My trading log (please check ti and tell me where I am wrong)

Beginner Questions
1

Hey guys just started forex, learning some basics in babypips school. This is a demo account but please tell me where am I do mistake and hot do a proper trading

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I lost the trade because of the price hit my stop loss

Do I use the signal on the correct way??
I sold because it hits bollinger upper band and rsi indicate overbought condition.

PS: The market go down after it cut my stop loss…
it’s just an demo account but still…
how to determine an ultimate stop loss and takeprofit level :smiley:

Trade 1: loss (-82$ on demo account balance)

I am planning to create my trading journal here :smiley:

2

I’d say do this about 999 or at the very least 499 more times and we’ll give you a definitive answer.

3

no, I don’t say this method will works or what, My question is Am I doing the right thing here (reading the indicator)?? or I should add other things (fibo, etc).

4

Yes and No.

RSI like any indicator should be used as a tool to confirm your original bias. The RSI indicator will fail you in a strong trending market. It will constantly say overbought overbought until the end of that trend and you will keep thinking to short short short and by that time it may have gone so far up you have 40 positions which all get stopped out.

As well the weakness is the days you set it.

So you can see it as being right and wrong, you can be right that it can be overbought but that trend can continue to be overbought and the indicator will just adjust itself to continually say that. However there is not a ton of proper ways to do trading. There are only various methods and styles you shouldn’t be asking us more that should you add a fib if you did what would your assumption be? Sell at 100? 78? 62? 50? Adding more and more to the cluster fu*K in the charts doesn’t make you a better trader nor will it vastly reduce the losses thats where proper money management comes into play.

That’s the best I can hold back without trolling I would highly suggest you finish the school before you ask more because if I’m here chances are the wolves err I mean the trolls are near by.

5

all i can say is stay away from small timeframes, no reliable indicator for small timeframe a lots of fake signals, trade with bigger timeframes, cheers!

6

Hi

What was said above about using RSI is well worth taking on board. I don’t want to get into the ins and outs of your system here though, but I did notice one thing wrong. Your stop loss is placed fractionally below the previous high, but price will commonly retest previous highs and lows. Look at how the chart developed from there. It retested that high about 5 times. Also note that it didn’t touch that point exactly but got close to it before going back down. Think of support and resistance as zones, rather than exact horizontal lines.

The peak that took your stop out was only about 1 pip higher than the previous top. So if you had placed your stop loss a little above that, your trade would actually have worked. I use longer timeframes than 5 minutes, but my stops would always be at least 10 pips above or below previous high or low. I gues on lower timeframe you could go closer, but 5 pips at least I would have thought.

There’s something here about using indicators while ignoring basic price action, by the way. My feeling is that if you want to use indicators, they should be used to reinforce trading decisions made by studying the price action of the market.

7

This is the kind of answers I want :smiley: thank you

That’s the best I can hold back without trolling I would highly suggest you finish the school before you ask more because if I’m here chances are the wolves err I mean the trolls are near by.

I don’t mean to do any trolling in here. You’re correct though I haven’t finished the school :D. I want to practice when I reading the school material :D.