Hello People,
As most of these first time threads start I have been ‘lurking’ on the forums/school for a while now, and been reading about trading for on and off two years (with large gaps).
I have recently changed jobs which has now allowed me enough spare cash each month to start putting some on one side to have a go (with the expectation of losing it all ).
Seem to have settled on spread betting shares using capital spreads, using a demo account…I am planning to use the demo account until I have developed some semblance of a trading plan, kind of expecting to stick with the demo for the next 12 - 24 months (as long as it takes for me to gain more pips than I lose!)
Anyway, I have gone through the ‘school’ which has proved invaluable for explaining stuff from the basics up. My question is around the order to try and start to learn on a demo account.
As I am not actually risking real money I am putting the money management to the back of my mind for now, in preference focusing on getting on the correct side of a trade.
My plan of attack is this:
- Get the hang of placing support and resistance lines / stop losses / take profit;
- Get the hang of common chart patterns, such as rising wedge, etc;
- Get used to how chart indicators can support what you have read into a chart;
- Develop money management.
Does this sounds like a sensible order???
Finally, what granulatity should a trading plan go down into? I get the feeling that some people have clinical trading plans that almost prescribe where the stop loss and take profits should be placed based on things such as the risk to reward ratio…however to me it makes more sense to have an eye on risk v.s. reward (don’t risk £50 to make £2) but surly its makes more sense to stick your stop loss and take profit where you feel the chart is telling you to put it?
However this appears to be leaning towards an emotional/gut feel way of doing things which people are advised not to do?
Sorry for the long post!
Cheers
Ollie