Hi,
iam quite new to the forex trading. And i want to share some of my experience i have made in my first weeks of Trading.
Before i started to trade with a real account i have done a lot of learning. I started here on the Pipsschool, which helped me a lot. After that i studied very intensive the candlesticks Pattern, :eek: Never thought that there can be such a big amount of information in some small Candles. After that i started to go through all the indicators, but finally i decided for myself that the MACD is enough. Finally Iam using Macd, MVA, EMA, Support and Resistence, Fibs and Pivot, and of course i learned a lot of chart patterns.
With this knowledge i started first Papertrading and Trading on a Demo Account. I very fast realised that its not enough to trade only with the technical analyse, so i started to learn the fundamental Analyse, and what all the news in the calender mean like cpi, ppi… After having at least a basic understanding of the fundamental analyse and the different countrys i started again trading on a Demo Account. This time my Trading was much more successful than the last time, but still i was not realy happy with my results. So i looked around and went trough a lot of different systems, but finally none of them realy fits to me. I dont say they dont work, but i just had the feeling that they are not fits to my way i want to trade. Finally i learned a lot of the Elliott Wave Theorie and i liked it very much and i added it to my tools i am using for Trading. After doing a lot of Demo Trading i was finally quite happy with my results, and i decided to start Trading on a live Account.
I opened a micro Account for checking out how I perform on a real account. Well first surprise was its quite different, my Account blow up within 4 days.
My mistake with this first try was to underestimate Money Management and Risk Management, so i added some strict rules to my Trading like Risk - Reward Ratio, no more Risk than 2% - 4% for one single Trade. Another mistake from me was that i made too many Trades.
After all that i gave it a new try and started again Trading with a micro Account, well what i should i say i blow it up after 3 weeks :mad: , but it was much better than last time, i even doubled in the time my Balance and lost all. I think this time i learned the most valuable lesson, the psychological part of Trading. After analysing all my trades i found out that my way to trade in a technical point was quite good, but i made still mistake that i stayed too long in lost trades with the hope they turn, or i didnt took profit and hoped it gets higher, but the trade then turned against me and i lost. And i have to admit its much harder to learn the psychological part of Trading than the technical part.
I changed my Trading totally in the way, that every single Trade must be planed before even i think to enter it. I have to know my Stop-Loss, my Take Profit, Risk-Reward … I prefer to miss a good Trade if i dont have all these points available, and i have to strictly apply to these rules.
After all i have started my 3rd try in a Live Account and till today iam doing very well, even if the start of the 3rd try was a 4 days loss in row, i managed to stay alive with my Balance and i also managed to take back the losses from these 4 days and i made profit. If i didnt changed my way after the the second try my 3rd try would have been also a total loss.
But still i make a lot of mistakes and i keep analysing my trades and learning. I can only give all beginners in Forex the advice not to listen to a lot of Advertisments in the Web where they say thats its easy to make money with the forex, its not easy its damn hard and its a lot of work. Second Point which i think is very important, is that there is no Trading System out there which can give you constant profit, i think you have to learn and find your own system or technik to trade according to your personality and character.
Wish you all good and profitable Trades and good luck.