Any ideas? What would you say to your early you, that wanted to start trading? books, websites, mentors, mistakes??
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get a sim account and trade a lot, then learn how to do post-mortem trade analysis.
Screen time!
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Use a simple trend-following strategy, don’t bother with day-trading, demo trade as much as possible, don’t try buying shares for short-term profit when the whole index (and in fact all the indices) are going down.
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Nice!!
analysis after the trading has past is a good way to become a better trader.
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The trend is your friend! Right?
I am curious… Why you wont do short term, and what is short term for you? Do you rather go for a swing trade?
Short-term is anything intra-day. Intra-day trading is driven by two mistaken beliefs - that the intra-day TA means anything (when all I see is “noise” and the possibility of some momentum) and that it is less risky to exit trades before the business day ends to avoid over-night gaps (which makes no sense anyway of you’re a forex trader and know how to locate and set a stop-loss).
Plus maybe a third mistaken belief that day-trading is easy.
I don’t swing trade I am purely long-term trend-following.
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The problem I see and find with most 1M and 5M traders aka short term is the risk reward ratio. If you going for 3-5 pips and have a stop loss or manually stop the trade at say 5-7 pips it take 5-10 trades to make up the fifference and that only if you have simply wonderful spreads which you most likely don’t.
You want a minimum of a one to one risk ration, Tudor said he would not take a trade that wasn’t 5:1… He is living with a few billion in the bank,
Don’t trade less than a 2:1 risk-reward position, the exception to the rule is the ability to build position against the short term swing for the swing back. Few people can do this without becoming lopsided and I do mean very few.
Put another way. How many successful short term traders/scalpers have you seen make traders are trader of year or get featured in any national publication?
are you catching my drift?
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Find a trading mentor who is experienced and profitable trader already so that you can ask questions one on one, the problem I had early on was there was noone to answer my questions so I had to do things by trial and error, this cost me a lot of money and time.
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Generally speaking “mentors” will cost you a lot more money than they will “earn you” - Keep asking yourself the obvious question -
"If they were any good - why would they need to get you to pay them ? - WHY would they not just take the money out of the markets ? "
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I agree with these 2 statements nothing else. He’s offering you his opinion Being honest he tells you he is purely a long term trader and that part of the post is fact.
Like all the posts to your question; these are traders opinions based on like above that I quoted opinions. Some based on their personal experiences and some just what they heard.
So. . .here’s my opinion based on my experiences.
As far as Short Term, Long Term trading and Everything in between; the majority of ideas on how to trade will all work sometime; but nothing works all the time.
Before you do anything distinguish between a fact and an opinion. 2+2=4 (fact) this the greatest, never before reveled, holy grail of anything is; opinion. Next base your decision to; or not to, by applying relevant facts, relevant options, pick on the balance of probabilities the least of the evils.
One of the top pieces of advice I got was; Realize that you will make the same mistake more than once. The trick is to try and make it the least amount of times as possible.
When it comes to trading in my opinion there is no one size fits all. It’s about taking a lot of information, filter to separate good from the bad and design a learning strategy, operating strategy that works for you and your particular experiences and circumstances.
That’s what I would tell me.
Gp
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There are too many things a newbie need to know and unfortunately in most of the cases is not even ready to hear them. It just takes time and a long trial and error period in most cases.
Here what I am repeating to myself today and every single day:
- Don’t rush into the market to trade.
- Study Forex, find a profitable strategy and constantly work on improving it while testing it on demo, nano, micro accounts.
- Trade real money gradually (from small to big) as you are able to show yourself profitability month after month.
- When results are bad, sit out or even go back to demo. Either you are not aligned with the market or your edge is lost/not working in this period.
- Risk no more that 2% of you equity on any given day/trade. If you are losing it close your trade, sit out and reevaluate the market looking for the next entry signal.
-Sit out if you are losing 5% of your account on any given week.
-Cut losses short. You don’t want/can’t win all the trades. You make money getting more wins than losses. or more pips in than out, or with good R:R or whatever else you decide to use into your strategy
-Learn to sit out, monitor the market and pick the right moment to enter and exit. No need to rush. No trade sometimes is the best trade.
-Work on yourself as a person. Learn to become more self-aware and analyze how and where you can improve
-Keep a trading journal and write comments on your trades. What worked, what mistake you made, what you have learnt and how can you improve your strategy and edge.
-Keep your emotion under control in order to be in the zone. I advise to read and reread trading in the zone by Douglas for it. If you are self-aware enough you can tell you are out of control pushed by fear and greed and it is maybe time to sit out from the market while regrouping with and improving yourself
-You need to be like a Casino. Win some. Lose some. Win more than loss in the long run. And that’s possible if you have an edge.
-Again be self-aware of negative emotions which can destroy your edge, plan and system and make you loss everything in no time by revenging, adding to losing position and over leveraging
-Keep stress always under control if you don’t want to die young. What all the money for if you don’t have the time to enjoy them?
-Spend quality time out of the market with yourself, your family and friends. What all the money for if you don’t have the good people to enjoy them with?
-And finally don’t rush to make lot of money as soon as possible. Sure money are good. They help you enjoy life better. But life is now and you can enjoy it also with little or no money.
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Hi all,
There are so many things a newbie need to know about Forex Trading. So if somebody ask me about Forex and Trading, then I will advise him/her not to follow anybody. If he actually has some interest in trading, then go for it.
Before starting trading, you must read or learn some Forex trading. Without any knowledge you may face some loss. You can loss all of you many. A trader can hire a Forex broker. The Forex Broker will help you definitely.
Thanks a lot…
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I want to add few extra words to my previous post, when I say find a trading mentor, I do not mean pay fortune to someone, that’s no reasonable if you are not wealthy. What I recommend is find people in the forum who post useful information for free and ask them questions, if you have particular topic where you struggle maybe they even can teach you one-on-one for free.
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If you’re serious about it, and I mean dead serious, then you need to keep a few things in mind:
1 - You need to study. A LOT. Read as many books on Forex Trading as you can.
2 - You will need to practice, again - A LOT. This is what a demo account is used for.
3 - Learn to adapt and evolve your strategies as you see fit. When trends change, you change. Remember, if you’re not sure of something, do it with a demo account.
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Its been a week since I learnt some basics and started demo trading, For how long should one generally demo trade before going live??(estimately how many months)
Thanks!
If found a profitable mentor of course , it’s a good luck , but there are almost thousands Fx Mentor in online and most of them are found to be scams. So, it is more appropriate to be careful when choosing a Mentor.
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Yea true, just verify the information before you implement the ideas with real money and don’t buy if the guy is promoteing something.
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I’m new here
Think 4 times before choosing a broker. The broker i have now 4xPremium is giving me a hard time with my withdraws. I had to wait 14 days to get back only 60k$
And also always learn with a demo first. never invest money without knowing how the system works.
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The best answer I have seen so far. However, 5:1 RRR is quite challeging. Since, it will be tempting for newbies to get a low Stop Loss in order to reach this beatiful goal.
In my experience a good stop loss cannot be anything below 20 pips, with your example my Take profit should be around 100 pips…
I will never recommed 15 pips of stop loss or less, the idea of the stop loss is to provide your trade with enough room so your trade does not end to quickly.
My ideal stop is 30 pips.
Thanks for your contribution.
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