I’ve been studying forex pretty intensively (several hours every day) for almost three months now and I’m not making much progress so I would appreciate some pointers to improve my approach. So far, I’ve learnt lots of indicators (i.e. looked up descriptions and advice on use and memorized all that), memorized all candle stick patterns I’ve come across and demo traded as well as traded with a little bit of real money to see if it feels different. To get more practical experience in less time I’ve not just demo traded real time but also “traded” with past data in sped up time. I have also started reading a number of ebooks but none have seemed worth finishing when the essential information is available in a more condensed form on the web. Not making any progress is frustrating 
Three months is not really a long time as it usually takes years. You should first define what type of trader you are or think you are. In the beginning you try to take it all in, but at some point you will need to focus on one approach and see where it takes you. Frustration and boredom as well as lack of patience are three sure things which will cause you to fail.
I’m not bored, that’s for sure 
I haven’t enjoyed studying anything for years as much as I enjoy studying forex and I do realize the importance of patience in trading in particular. However, my question is if I’m doing the right thing to learn since I’m not making any progress? I forgot to add that I’ve also watched lots and lots of youtube videos and listened to related podcasts.
Bro, I’m going to say just jump straight in and trade from a small micro account. Just do it. Things start to fall into place once you go from demo to live. Remember a demo account is a marketing tool.
Also it takes 4 years to complete an apprenticeship then at least another 2 years to establish a business. Things aren’t going to be any differrent here. Personally I’m in my final year of my apprenticeship and have just become what “they” loosely term consistant.
Best of luck on your journey bro
Bob
Just go live with a micro, and as for the frustration part, welcome to the club.
Gotta agree with most of the replies here, frustration will happen at one point or another and it’s just part of the game. While in the learning stage, you may feel like you’re not making much progress but I think it would help to focus on the process rather than the profits. Once you’ve figured out a strategy that’d work for you, put in the time and discipline in executing properly and consistently.
Perhaps you want to list down your goals which you wish to achieve in trading. This will help you to be clear on what you need to work on and the areas of improvement to achieve that.
It is a normal phase that all traders been through - searching for the best indicators and systems out there. But the most important thing you need to take note is your own trading personality. Once you identify it, it helps you to select your own ‘best’ indicators and systems to use.
Personally, I didn’t start on demoing. Instead I jumped straight into a real account (but with small amount). I felt that this really helped me to quicken my learning curve. After all, real money hurts!
Back to your first point, I believe you need to identify what are the areas you want to work on first. For me, even till today, I am still constantly reading trading books. It is more of a reminder at times, i.e. money management and trading psychology aspects. Some times, we might get new insights from these books as well. In trading, it’s is always a learning process to me.
Hope these helps
Skipping demo in favor of a small, but real account may be the best first step for new traders.
Before you do anything, why don’t you post your trading method, money management plan first. As TLB said 3 months is not really enough time, but if you make a pre trading check list, out line your trading method, such as time frames, entries, stop losses and profit targets, as well as your money management plan traders would be in a better position to help you. If you need help doing that, then let everyone know you need some help. Hope that helps
Gp
As most of the answers pointed out three months is nothing and you should continue with your education and in between you can open a micro account and make some small deposit so you can start practicing. It is really not realistic to expect some progress after three months.
Friends three months are not enough time to gain good skills and knowledge about Forex. I think you need to learn more time about Forex. Need to do hard labor and exercise in Forex market.
I already lost 150 EUR trying live trading soon after starting demo but was pretty much intent on paying that as a “tuition fee”. However, I don’t think I benefit from trading more with real money yet because now I know what it feels like. I even tried to exaggerate my emotional investment as preparation for trading with larger amounts in the future.
My study plan is systematic: Right now I focus on simply getting my prediction right more often than not and once I do that consistently, I will teach myself money management. Is that a bad study plan?
My idea is to make a money management plan when I know my winning/losing trade ratio. Thus every trade is 5 % of my demo account with a 5 pip SL unless volatility is high in which case I set it higher and a 5 pip TP. If a trade seems to go my way, I move the TP whilst I move the SL once I have 2-3 pips profit locked in. Often I move SL even more and thus the profitable trades mostly end when price hits it.
The indicators I use are DMI, Stochastic, ATR, AD and MFI. A lot, I guess, but I’m intent on going through pretty much every indicator in JForex. I use the 1 min, 15 min and 1 h charts and trade like this:
-
Look at DMI/ADX to see what the largest time frame with a trend is (ADX >25). Rule: Trade with this trend.* If the 15 min time frame is contrary to this but 1 min and 1 h agree, I have higher SL and TP.
-
I enter on the smallest time frame in the direction of the trend observed in (1) when the Stochastic crosses the signal line (in the right direction, of course). Preferably when price is on the same side of EMA(30).
*) If there is no trend, I enter when the Stochastic crosses in the oversold/overbought area.
ATR, MFI and AD on the 1 min chart help in deciding the precise moment to enter - i.e. sometimes a little bit before the Stochastic crosses if MFI or AD already diverge or if ATR just goes up and slightly down.
Due to this approach, equity mostly serves as a counter for the winning/losing ratio and I trade as often as possible simply to get more “observations” of my correct/incorrect ratio. Thus I have 5-6 positions almost all the time with different pairs.
Hey Sman,
I don’t know about your system (rather it works or not). But your comment that I put in Bold is quite something. That’s the alpha and omega in trading.
By the way it’s good to see someone putting a lot of hours into studying, reminds me of myself many years ago. I was reading constantly, during the day before going to bed, you know the deal. Just a quick tip, there are no hard facts just probabilities. Once you figured them, stack 'em.
Best
dear, The Sandman.
put more intention oh how much profit you willing to earn. monthly.
forex trading are much like any other investement program, it need well define plan. and keep the profit target reasonable.
for example 30-40% profit a year are good. build your positive trading portfolio, and i will eventually sharpen your trading psychology without you even notice.
I agree that demo trading is a marketing tool, but it can be a darned good tool if used right. If you had stayed in demo until you had made profit for three months in a row, you would be 150 Euro richer now. It might take years to be able to make three months profitable in a row in demo. If you are losing 150 Euro each 3 months, that is an expensive education you can get absolutely free. Of course there is a transition from demo to real money, but I don’t think you are ready for that now. When you are, trade the absolute minimum size, like 0.01 lots per trade. Don’t increase size until you get three months in a row profitable with real money. After that, you will be trading better than 95% of Forex Traders, including many who would give you bad advice here. Of course, that’s just my own humble opinion.
Record your system in “writing” if you haven’t. Then try to identify negative and positive patterns and adjust your plan accordingly. Its rewarding and fun to build a system.
Don’t be in a rush. I hope it’s different for you, but usually for me learning means losing. What’s the hurry for that?
Learning forex is not just a one day task .You need to first of all prepare your mind and focus extensively. A comprehensive education and practice is needed to succeed. One step at a time.
The Sandman,
[B]Firstly[/B]: as many of members said already - 3 months is faaaar from enough. I agree with bobbillbrown - 4 years is AT LEAST what you should be ready for (with same studying intensity as you did before now)
[B]Secondly[/B]: by any means - [B]do not open a real account. [/B] You will lose all of it. Instead of wasting ~1000 bucks on your first MarginCall - invest it in to some Forex training program. A training course will probably not make you a successful trader by-the-morning - but you will at least find that progress-direction that you are looking for.
p.s.: of course if you have that much money that you could use it instead of toilet paper. It will be ok to open a micro-account
No matter what way you choose to go in your learning and studying, I suggest you to “pack” all your knowledge based on following three “pillars”.
[B]1. Strategy:[/B] includes anything that you can use to decide what long- or mid- term direction you choose to trade. It could be anything - Starting from classical trend channels, Wave Analysis, volume analysis, MACD, [B]Masterforex-V binary elements[/B] … etc. ANYTHING - Put in to this group anything that you will learn that can or will help you to choose the direction for your trading session.
Strategical direction that you choose - is always based on your own understanding of markets.
[B]2. Tactics:[/B] - your tactical plan. Many experienced traders will tell you - before each trade: "a trader HAVE to have a “plan” ", or “if you don’t have a plan, you can not be allowed to trade”.
If you have your own trading plan - it means you have your own trading system.
Tactics: - Anything that will help you to describe to yourself - HOW you will trade the following session based on your chosen strategic direction.
Put in to this group everything that will help you to create that plan. If you learn something new - don’t throw away the “older” stuff - combine it
[B]3. Signal, MM, RR:[/B]
Collect in to this group all your knowledge about Money Management, Risk Management and Trading Signals.
There is a reason why I putted “Signals” to this group: many traders try to trade signals without having any understanding of what is going on (they don’t see forest behind the trees).
p.s.: by “signals” - i mean: trading signal that will tell you - it is time to open a trade.
Signal by itself - is just a 50/50 (throwing a coin will give same results). But if you combine your chosen signals with your strategic direction and your tactical plan - you will immediately realize the difference.
Signal should serve for you as a “trigger” for action (not more not less).
Constantly work on filling these three groups with new information, and after 4 years of active studying - I assure you - you will be able to say to yourself: I’m a profitable trader.
Good Luck
p.s.: sorry if my post was a little bit too long
Your post was very informational, not too long at all