Hey. I have heard about forex 6 month ago, from that day I relentlessly continued to learn more about financial markets. I tried to set up a trading system with (moving averages) and (price pivot points) but I still didn’t test it because I had not a real account and didn’t know much about money management and lots and leverages. I haven’t been in a real trade with real money in the market and just did some random trade in my demo account. Today I came here very excited and eager to learn more things about forex and trading. maybe one day I could execute my first real trade!
Hello @RoomyBox. Demo accounts are very useful but not if they are used just randomly. They should be used systematically, but also experimentally. You need to freely explore new things and ideas in order to progress but at the same time systematically evaluate and build on your experiences. You can trial various timeframes and instruments as well as various indicators, candlestick patterns, PA techniques and so on.
But there is one important principle to grasp from the outset. Although we should treat our trading as a business it is not quite like other businesses. No matter how deeply we study the market via technicals or fundamentals, etc, we never know where it is going to go next. All we can do is assess what it is most likely to do next. In other words, all we are doing is working on probabilities. And “probability” means sometimes we get it right and sometimes we get it wrong. So how does that help us?
It means we accept right from the start that we will have losses and that it is an entirely normal part of the business. Therefore we have to conclude that if normality means accepting losses as well as gains, then it is essential to ensure that overall losses are less than the overall gains, otherwise we are not going to succeed.
But overall losses v. overall gains can be looked at in two ways: either in number or in monetary value. A trend trader may lose on 4/5 trades and then win on one long trend. But short term traders might want a win:loss ratio of around 60%+. Either way, the mathematics are a net gain. and it is important to keep focused on that and not just on each trade in isolation. If you are in for the long term consistency then you need to see the big picture and not the just the price bobbing up and down in front of you on the screen.
It can be a long journey, but a fascinating one if you keep to a learning curve and not just jump from one “strategy” to another from Youtube, for example…
Just some thoughts.
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I keep that in mind. I’m supposed to run my trading system on demo account for 3 to 6 month at least (depends on my results) so I can define my win percentage and average profit/loss ratio and if I was satisfied with the ratio then use real money.
meanwhile I started to choose some books for reading among which I started to read THE PHILOSOFY OF TECHNICAL ANALYSIS BY John j Murphy. Additionally I finished an economy course I downloaded from internet and now I’m in the middle of an financial course to become familiar with the whole concept of financial markets and specially forex. recently I found this site and forum and its been a week since I’ve started to attend PIPSOLOGY school to learn FOREX from A to Z.
my system is in 15-minutes charts based on 2 quick EMA and one major SMA hovering around daily, weekly and monthly pivot points. I rigidly put my trade levels based on pivot points and use moving averages as momentum notifier.so I’m very excited to test it through coming months and settle with it.
I was wondering if you could help me to find a place to interact with other daily traders. Someplace that every body shares ones idea or talks about the price movement or at least a place where I could interact with more traders who are looking for the charts live and sharing their live positions. I wish there was a place for each currency pair where I could feel at home if I wanted to trade and chat about live price chart in intraday timeframes.
Sounds a reasonable approach. Pivots from the longer terms can help indicate the overall trend direction and its current state. And shorter term MA’s can indicate momentum. I do the same and find it helpful. But I am not sure the 15m TF is the optimal. It might be worth thinking about using a longer term, like hourly charts, for your entries and maybe drop to the 15m for your exits (exiting is perhaps the hardest thing to work out!).
I can’t help you with that one. I know there are various Whatsapp and instagram groups for these purposes but I think you need to ask yourself a very important question about your motives here:
Whilst there may not be anything wrong with such groups, you have to ask yourself is this motivated by a lack of confidence in my own strategy. It is understandable that one seeks confirmation from others that our logic and analysis is right, but one needs to have total confidence in one’s own approach even without external input. In fact, the more people contributing to the overall picture the greater the indecision it can create! Unless these others are proven experts, they are in the same boat as yourself. You need to approach them from the same position of strength and confidence that you approach the markets themselves.
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I think that’s because I’m new to this environment and I am very curious to see how other people react to the market, but I think you said all that matters that we should put the whole idea into our own instruments and belief because at the end we ourselves are the ones who should click the bottoms and decide when to,
thank you a lot for sharing your knowledge with me, I really liked your topic about provoking quotes and I decided to add some notable quotes if I saw any on educational books.
Thank you! I look forward to that! I have been a bit busy recently with other things and my reading has been slow, but I’m still posting stuff there that I think others can think about in the context of their own trading,
Basically- you can watch 10 “professional traders” do their thing all day everyday. Would that make you profitable- maybe. I’d argue that the path from “newbie” to “consistent” is more of a personal journey. Your consistency will be largely dependent on you finding a way to interact with the markets that take into account many PERSONAL dimensions that only YOU are aware of.
e.g. risk tolerance, technical/fundamental preferences, journaling, etc etc
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this sentence gives me self confidence because one could never think that he or she is deprived of something in this vast criteria as long as we know that trading is a personal procedure. thank you for your simple but very important tip.
The more you learn, the better you get at forex trading. Forex trading won’t get you results the day you start trading in the live market. You are required to keep patience and educate yourself as much as you can. The first few trades you will make in the live market will be your practice trades and will let you know whether you are ready to risk more money or not.