Okay, so I started with a demo account, and have lost almost 50% of it. I traded out of my gut feeling and a little on how long term movement of currencies should be, but since I was impatient I kept selling and buying intraday.
I want to earn a living doing trading and investing, especially forex. So here we go. This is my Journal. Let’s start.
I don’t have any prior knowledge, however, I finished the school in a day. I’m a fast learner, and am good with math, programming and patterns in general.
I gained back about a 1k just by being a bit more cautious when trading. I found out that I have the personality of being an intraday trader. That being said, I found out that in order to be an intraday trader , you need to have a sense of the direction of currency combined with a chartist sixth sense. This means combining fundamental analysis with technical analysis in order to achieve daily points.
That’s my current POV on Currency trading, right now, however, I definitely don’t think I’m smarter than market, and my gains could be totally attributed to luck.
One other thing that I found out is that since no one knows with certainty which way the market will move, let’s say in the next five minutes. It’s very important to use TP and SL wrt your certainly level. Something like if you are sure about your decision you want to put take profit farther than when you are less sure, and vise versa, if you are sure about your decision you want to put stop loss closer.
Anyone can point to few knowledgable members of this forum?
Found out that I can’t do on short time points, so I decided that I would only do trades on M30 and above, rarely I may do M15 as well. But I’m aiming for M30, less than that I can’t predict.
Setting up rules:
Okay, second rule is that I will only check my computer 10 minutes in every hour. ( this doesn’t apply to when I’m learning about patterns, but only trading, this will lower stress and impulsive behaviors.
Looks like you’re off to a good start. Keep writing and keep looking for ways to improve. Trading is like any other skill in that does take time to gain experience and develop. And it probably won’t hurt too to hit up the School lessons to refresh your knowledge after you’ve gain a bit of experience. You may find new “a-ha!” moments in there. Good luck bud and keep it up!
Time to run some pattern recognition algorithm on some tick data, unfortunately I wasn’t able to download any tick data from tickstory or dukascopy, the way they share their data is enigmatic and I didn’t want to install any stupid software on my computer. So the next best quality data I was able to find was from TrueFx.
I wish there was a reliable company out there, I wouldn’t mind spending some benji for real and quality tick data
The numbers game of forex is just crazy. pip by the leverage you take directly correlates to percent revenue (ignoring spread price), Imagine, having a 1k with 1:100 leverage, it means that with around a 200 pip change in one day, you can profit 2k.
Now, 1:50, means half a percent increase, so a 200 pip change in a 1:50 leverage is 100% percent change to your initial value, and a 1:20 leverage, a 200pip is 40% change profit. So in the last matter, if the market changes 200 pips (it rarely does, and if it do, who am I to predict that!), you have earned 400 dollars with a 1k on 1:20 leverage.
this is just a quick way to know your numbers and get a sense of things. Hope that helps, these numbers made sense to me today.
Measure everything wrt to 1k , 1:100, 100pips, 1k profit and you can derive everything else from this very fast. or in a 1:100, each pip is 10, and in 1:20, each pip is 2 dollar. If that makes sense.
why so many few people know about forex is beyond me!
So I was busy writing my own algorithm. I used some machine learning and pattern recognition. However, the program didn’t turnout to be that accurate.
sigh
I wish there was an stack overflow for forex and trading in general