Trade with Support & Resistance only

Beginner Questions
#1

Hi, I recently completed babypips lessons and then I went to demo trading, while I continued my education from youtube.

I’m thinking that if I have 15k account and If i only able to spot one setup throughout the month risking 2% for 1:2 or 1:3 risk to reward ratio.
I’ll be able to earn 500 to 900$ , and it will be more than for me (for now).

So the question is can I get only one setup (for 1:2 or 1:3 risk to reward ratio.) Only one In a month, by using on basic knowledge like support & resistance, fib, trend channels, etc, I hope you’ll now get what I want to say.

So please tell me if I don’t do any high level trading, or 20-30 trades within month, instead just one trade. Can I do that with only basic trading knowledge.

#2

Of course you can. Just trade a pullback in the direction of the daily trend. When price pulls back, sometimes it will pull back to test a recent support area, just look for those setups and enter moves back in the direction of the trend.

Obviously, there are no guarantees, but these are good quality setups.

Good luck!

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#3

Yeah bro, I only need to take one setup in whole month amd even if I get 1:2 rrr then it’d great for me.

#4

You have to set your trading targets according to the support and resistance level. So, use trend lines and moving average to catch the market’s support and resistance level.

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#5

Sure mate, thanks for reply

#6

Why not just try it and find out? Show us what’s possible. Stay strong, young padawan!

#7

Remember about swap cost, holding long time transaction can “eat” big part of your profit

#8

Yeah I remember about it, but I’m not planning to hold my positions for weeks or even days, I’m only going to find one setup with at least 1:3 or 1:2 RRR and I’m out for the month.

#9

ok, it is one problem you should resolve, one trade per month give you 0 statistical significant from back test, so the results will be random, and you can’t count on it.

#10

Yeah, you’re right, I didn’t think that way, so should I start live trading or not.

#11

Every trader should follow the support and resistance to set target point and selling point.

#12

A good post but IMO, One of reasons many fall by the wasteside,is expectations and fixed profit/ loss ratios, they can end up a poison challis. Though unfortunately maybe only experience ,will help one realise this .

#13

Another question is: if you take one trade, and you get stopped out, are you done until next month?

#14

No man, the reason for that particular less trades, is that in a whole month if I’m 100% sure about an trade setup then only I’ll take that, and I think if we that sure about an setup then it should atleast give us some profits and if not atleast it didn’t stopped us out

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#15

I think you can forget about being 100% sure about ANY set up. Favourable, yes. 100% sure, though? I think that’s unrealistic.

If you find a setup that’s favourable, and price is trending in your favour, sure let it run and forget about trading anything else until that trend is finished.

If that’s what you wanna do, then go for it.

#16

Yeah buddy, that’s what I’m saying I’m not saying a setup to be 100% correct, I’m saying me being 100% sure about an setup,

Babypips taught us nothing is 100% i.e; indicators, r& s levels etc. But it didn’t tell us to be 100% sure on our setup.

I think I confused you with those 100% words :sweat_smile::sweat_smile:

But I hope you understand

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#17

To identify support and resistance, you can use fibonacchi and other indicators. Support and resistance will help you catch the exact market trend.

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