New in trading looking to apply a strategy

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#2

You’re in the right place Eric, pick a simple trading strategy, make sure the rules cover what to do in the only eventualities that matter - price rises (either as expected or more than expected), price falls (either as expected or more than expected). Open a demo account and trade it like its your life savings until you understand the best and worst points of the strategy and you’re hopefully consistently profitable.

You’re learning throughout about what makes a good strategy, more important than what makes this strategy good. You’ll also learn about risk management/capital preservation, best to do this with Monopoly money.

Good luck and all that.

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#3

Thank you for your warm welcome @tommor
I don’t feel alone anymore

#4

Where about here should I pick a “Simple Trading Strategy”, please?

#5

Try price action without any indicators first. Stick to higher timeframes such as weekly, daily and 8H.

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#6

You can see pictures here:
https://www.google.co.th/search?q=price+action&source=lnms&tbm=isch&sa=X&ved=0ahUKEwjM3pfT4_3dAhXKpI8KHTPaD1YQ_AUIDigB&biw=1280&bih=579

And you should also search for price action on Youtube. You’ll find plenty of videos to understand what’s it all about.

#7

Hi @ericpasso! Welcome to babypips! I’m just a newbie and not an expert like @tommor and @Mordengaard. I’m trying out a system for now because I feel like going in and applying everything that I’ve learned all at once would be too difficult for someone starting out. :slight_smile:

#8

Hi @ericpasso! Welcome to BP community and congratulations in finishing the School of Pipsology. :slight_smile:

Good luck!

#9

@ericpasso I agree with @Mordengaard. My mistake when I first started was merely following a system without understanding these basic concepts. Try price action first and don’t get too fascinated by indicators (also my mistake).

1 Like
#10

Warm welcome to ya!

#11

There are several to choose from, some actively been discussed here and others not so much.

Give this a look, the Free Forex Trading Systems section

#12

hey @ericpasso welcome to babypips.
Good luck for future.

#13

I think it’s all about the multiple risk reward.

I like to break up my trade into little parcels. This way I can exit out of my position as it goes against me.

Really helps setting different risk reward levels in the one trade. It shouldn’t be a binary option (win or lose), you can really structure the trade to your advantage.

#14

If your a newbi, start with a simple strategy: Multiple moving averages or RSI and build rules to create a formal strategy. A rules based approach to trading

  • In this situation I enter
  • If this occurs I exit
  • Never risk more then X%

When things are structured you can slowly tweak a strategy to see what works and what can be improved.

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#15

@CoinLady, thank you for your intervention. What are you suggesting, please?
Thank you

#16

@Johnno2626. This seems complicated for a beginner like me

#17

What I’m trying out right now is the 3 Ducks System. It’s a pretty straightforward system and what I’m doing is incorporating it with the price action concepts I’m learning and not just following the system blindly. :blush:

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#18

@CoinLady This seems to be really interesting for a beginner like me
Many thanks

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#19

@ericpasso No problem. Hope you can try it out and share your results here. :slight_smile:

#20

@CoinLady
I am still trading with a virtual account as I gave myself a minimum of 3 months of practice
I am applying today on GBP/AUD 1h chart, watching the action starting at 8 AM London Time Zone.

  1. On the 4h chart, the 60 SMEs is above the trade action

  2. On the 1h chart, 60 SMEs is above the trade action

  3. On the 5 mins chart, the 60 SMEs is below the trade action

For this, I have decided not to take a position

I am also applying today on EUR/USD 1h chart, watching the action starting at 8 AM London Time Zone.

  1. On the 4h chart, the 60 SMEs is below the trade action

  2. On the 1h chart, 60 SMEs is below the trade action

  3. On the 5 mins chart, the 60 SMEs is below the trade action
    For this, I have decided to take a position

I will come back later to write down what happened as a result
I will also explain how I have positioned my Stop Lost, Entry and Exit/Limit

1 Like
#21

You could also open a trading journal and post your charts so that it’s easier for others to help you out when you need help. :slight_smile:

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