I have just joined this website and am looking to get into the “wonderful” world of FOREX trading.
I’ve gone through the school lessons, which are WAAAYYYYYY better than anything else out there.
I’ve had a play around on MT4 and tried to get more familiar with different indicators.
Now, I’m wanting to try a few trading strategies on my demo account and just see them in action. I was hoping someone could give me an “easy” trading strategy for short time frame trading (1 or 5 min).
I was also going to try the Cowabunga system I saw in these forums also. But, does anyone have some strategies for real short time frames?
It’s tough advice to receive but many of those who have been here a while will say the same - start on the high timeframes - dailies or even weeklies, possibly the 4 hour at a push but nothing less.
You’ll find it much easier to trade the slower, smoother high timeframes and it’s a lot less stress too. Only once you’ve mastered these would I suggested delving into the shorter timeframes.
To answer your first question though, although I haven’t tried it I think giving the Cowabunga system is recommended, particularly with so many other people doing it you have lots of information and support.
Just so I am clear though. During a week there would be 7 new candles on a daily chart. And if you make 3-4 trades a week, you are making trades about every 2 candles?
I thought newbies could start from scalping…Can…I?
I thought I could get used to basics(+,-,x,/ in Maths e.g) of trading by scalping and could become used to swing/position trading(advanced calculus in Maths) later on based on a lot of scalping practices.
This is just the thinking of a newbie so please guide me in the right direction. Thanks:)
I agree scalping is much harder than it sounds but since you are on demo why not try it out, You will see. Better yet open a small live account. By small I mean expect to lose it.
As far as a strategy for short time frames I have not seen one that works with out allot of discretionary trades. The short time frames can be very random so much that it messes up any system with strict rules. The only way to learn to trade or scalp such short times is to do it. I suggest looking at only one pair watch it during the same session every day, learn how it moves, watch what your broker does with the spread as it moves. Watch the overall trend and don’t stress about trying to hit reversals and tops and bottoms exactly just go with the trend and cut your losses quick when your wrong.
Practice good MM on each trade, maybe you will be able to scalp maybe your emotions will rule you and you will over leverage and risk to much. If you do go with a live account be prepared to blow it up, count it as the cost of an education.
Well to start off with, I agree with what has been said in the thread, scalping is hard work and it takes a lot of time to master, I would stick with higher time frames, personally I like to trade 1h time frames.
Read up on support and resistance, I don’t think many new traders look at support and resistance but it’s something that is great to take account in when trading.
Stay away from indicator filled strategies, start with a basic chart and work your way up, make sure when using indicators you fully understand how the indicator works and what it does, I think a lot of new traders look at indicators at buy now/sell now signals, they’re not. What they are lagging tools that shows how the market is working in realtion to the mathimatical formula that the indicator uses.
This is very important: MONEY MANAGEMENT, learn to manage your money, you’re not going to turn $100 into $100,000 overnight, that is just gambling and you might as well go to the casino, take trades that follow your money management rules AND follow the system that you choose/create. I hear nothing but good things about oanada, so they are worth checking out.
Demo first and then trade live with a small amount and be prepared to lose that said small amount.
i’d agree with most here by saying scalping is not for a newbie as it requires alot of market knowledge and is a very discretionary trading style whereby you will rarely see a scalper follow a strict entry and exit rule.
but if you really are set on scalping then i would suggest easing yourself into it, start with intraday trading using support and resistance, trendlines and fibos, keep your r:r at least 1 :1.5.
when you are comfprtable with that and getting a better “feel” for the market then you can start scalping your intraday trades, what i mean by this is when your trade turns profitable begin exiting and re-entering the same trade at a better price on pullbacks and retraces bagging yourself an extra 2-10 pips or so, if you cant get back in at a better price then dont get back in at all and take your pips but in most cases you will.
this will give you a feel for scalping as well as still having your intraday trade as a safety net
I think that scalping is too risky strategy and a newbie can bite more than he can chew with it. Sure everyone can do scalping but I am not sure that it would be very profitable strategy for non-experienced. I myself don’t feel comfortable scalping, though trading already for some time Try scalping on demo. If you can do it than ok. Probably some people are born for this but no me
I’m one of those who completely understands that from a statistical point, over a long period of time, trading consistently, trading your plan and not deviating (no matter how emotionally hard it may be) is the only way to get long term profits.
Now I haven’t started trading yet (I’m still on my learning stages), but I would like some input as to the practicality of the matter.
My plan for when I start, would be to trade for about 30-45min every morning before I go to work. Focus on GBP/USD and maybe also EUR/USD. Stop for the day either when I got to the profit level I aimed for, or when I hit my stop loss, or when the 30-45min are up.
As for the precise mechanics, I haven’t sorted that out yet, but it will be more technical than fundamental and I will obviously be looking at the shorter timeframes. But there won’t always be a clear breakout, or a clear trend, or the magical combination of moving averages crossing each other with RSI being above or below what I want it to be.
So my question is:
If I devise one plan and wish to stick to it, there may not be any trades to enter in such a short window of opportunity. I don’t want to enter into a trade just for the sake of it. Is it realistic for me to only trade, say half an hour a day? Or, if I have a plan which consists of any number of entry options and trade whatever is appropriate - am I screwing myself over statistically by not trading one plan consistently?
Use that 30-45 minutes to make your analysis, get the best entry you can within that time and let your stop loss and take profit manage your trade whilst at work, this takes out the huge emotional factor, minimal time input with maximum returns
Very good point, Lee, thanks.
What’s your opinion on having multiple trading plans and trading whatever suits that day vs having just one plan and if the situation does not present itself not to go into the trade?
i’d say to begin with definately just stick to one plan, but as you become more experienced there is certainly nothing wrong with trading several strategies.
i myself like to both position trade and scalp dependant on the market
Here is my two pips worth of advise from a newbie whem demo trading are live trading.When i went live like alot of people on this forum it seemed like your entry turns into a pivot point against you.:rolleyes:Which you probably shrugged off in demo but live money showing on left part of the screen starts to twindle the emotions will try to come into play.I also noticed my entrys could have been better if iam trying to get 20 pips profit and 8 out of 10 profitable entrys turn back 10 pips before proceeding forward i need to adjust my entrys.Also know your method percentages, one method i use is the win ratio which from its creator was hitting a over 90 percent clip and for me demo trading hitting over 75 percent with very few losing days in a row.When it hit rough waters 3-7 less 50 percent on my trades and 3 losing days in a row.These are way below the norm, you can catch it rather quickly and freeze trading on it to preserve capital tell things turn back to normal or adjust the strategy to meet new market conditions.
