New to forex few questions!

Hi everyone I am getting interested into forex trading, just a few questions. I have been through school of pip but am thinking what I should do next, should I learn all the candlestick patterns so I know them off by heart. I know I should look for the trends but any help with learning would be greatfull, also should I trade over a few weeks , days or wot cheers duane

If you have been through the entire babypips school then probably best to fire up a demo account and starting using some of those techniques on live charts. Generally speaking everything has to do with the charts so best thing you can do is start looking at them more closely and see if you can recognize support and resistance areas, high and low volatility market times, gaps (weekends) etc… Also perhaps going back through the section on what kind of trader are you (whatever it is called) in the babypips school will help answer whether you hold trades open for minutes,hours,days,weeks,months etc… After looking at a few charts you will hopefully have a few more specific questions that you can research yourself.

Yes, get some hands-on experience; many questions and their solutions will pop up automatically then.

I think the next step should be finding a broker which suits your needs … no easy task, since there are so many of them.

Then open a demo with the broker you’ve decided on and start playing around with charts, indicators and so on, to get a feeling for the whole thing, and to get acquainted with handling the trading platform.

In my opinion, learning by heart candlestick formations, chart patterns et cetera doesn’t make much sense.
It’s better to go step-by-step.

Cheers,
P.

It’s time to review brokers and set up a demo - do a dry run for a few weeks or until you start making a profit, that should get you started - good luck!

First off you do not need to learn candle patterns by heart, there are a plethora of indicators out there which offer candle analysis such as steve nilsons candlestick scanner etc; so it takes all the hard work out for you. Some rare candle stick patterns however you wont find in publicly available indicators. People tend to keep alot of the good stuff for themselves.

Trade a demo account with a sum of money you would ideally deposit if you were to trade real money, ie dont bother trading a $100,000 demo account unless you plan to trade that amount in a real money account.

Try to take bits of the course you learned and try and create a system, a good place to start is with support and resistence ie trendlines and patterns. Again there are plenty of indicators around which draw these for you but its still good to learn how to do them yourself.

Play around with demo and see how you go and most of all make sure you have perfect money management. Stick to a win loss ratio and stand by it! Some traders i have seen who are inconsistent have no win/loss ratio and take profit of 3 pips on one trade, 5 pips on another and then loose 20 pips on the final trade which obviously shows a lack of money management.

Take your time and embrace what the market throws at you. It could be many weeks or even months before you master a strategy which is profitable on a daily basis but when you have found that strategy you will know, you will get a feeling that you have a system which you can call your own personal ‘holy grail’/

Good luck.

Never put your trust in an indicator which you haven’t coded yourself (and even if you have done so, never trust it 100%).
The human brain is way more powerful than a few lines of code.

It’s a matter of pride, too … don’t you want to be able to do it on your own, instead of having to rely on a third party’s efforts?

Cheers,
P.

@webxtreme84, I think, after school of pip your next step should be using demo account for practice. Practice is very needed before to move on real trading. If you learn all the candlestick patterns then it will be better for you to understand trading strategies.

I agree its good to learn how to do things yourself but… an indicator is mathmatically correct whilst your brain may see something which may be a pattern where as someone else may think its not. Sometimes it bottles down to a matter of opinion; ie some people may think something is a valid trendline or candle formation whilst another person may not think they are valid at all.

An indicator is as mathematically correct as the person who coded it. :slight_smile:

If there are mistakes, I prefer them to be my own instead of somebody else’s … I can fix my own mistakes, but not other people’s.

Cheers,
P.

Yup! You can use indicators but to depend on “only indicators” to point the magic marker in the right direction is not going to work out in the long run. And on the demo capital, would second the tip posted earlier…it makes more sense to opt for a demo capital that’s close to what you would use in real account…

Yeah, that’s pretty important, I think.

If one got used trading full or even multiple lots on a large demo and then starts one’s first live account with 500 bucks, it’s very easy to be tempted to overtrade.

Cheers,
P.


There are no secrets to success. It is the result of preparation, hard work, and learning from failure.
(Colin Powell)

Money management and realism is key, i remember the first demo account i had with 100,000 in it, i made like 2,000 after one trade and was sooooo happy, then i realised it was only a few pips or so and then the trades after that lost 20,000 lol

Just wonder how many opt for the demo- standard version and then do the live with micro lots? i think most newbies do not take the time to figure out that it makes more sense to do the demo with respect to whatever live account they go for in the future…

Yep, probably they don’t.

Which is why we mention it here. :slight_smile:

Cheers,
P.


There are no secrets to success. It is the result of preparation, hard work, and learning from failure.
(Colin Powell)