There was a similar topic where I have mentioned few key important steps for new forex traders. I would like to repeat this assuming that it can help new forex traders.
1.Find any mechanical trading system based on pure price action or may be with one additional indicator like Support and resistance, Trendlines or Febonacci levels. Any one of the indicator should be enough. You can find many free systems online.
2.Choose a timeframe that suits your personality and mostly I will recommend minimum H4 timeframe or Daily timeframe will be the best to avoid noise signals and more accurate trades and less time of seeing the mt4 screen. Just set and forget type of system with fixed stoploss and takeprofit.
3.Next, backtest the system with sufficient amount of past trading history using 'Forex Tester' or using any other backtesting software. I am not talking about EA backtesting, rather it is manual backtesting of your system. You should test the system in one currency pair which you want to trade using the system. Every system doesn't work the same way in each pair.
NOTE::This is the most important step to be successful in forex trading in short time and it will save years of demo trading and practising, but unfortunately most of the new traders skip this step and directly jump into demo or live trading.
4.Next, once you are confident about your results in backtesting, start demo trading in a demo account for few months. Not too much demo trading...
5. Next, start a micro or cent LIVE account for live trading with a small account balance until you are confident on going LIVE trading with large account balance.
6.If you are able to follow perfectly all the above 5 steps, then you are now ready for live trading with sufficient amount of balance.
This is good very good advise... but I would like to add a very important distinction between demo and real. With a demo account, when trading a manual system/strategy you will not experience the emotional roller-coaster of live trading. By this I mean the fear of losing, the greed of moving a slop-loss or having none at all, the anger at a market that just took your real money, the revenge on a loss when doubling-down on the next trade.
When you trade live you will experience a whole range of emotions that will influence your trading decisions. My advice is to open a demo account with the same amount of money you will open a live account, and treat this account as if it were real. Every loss should be taken seriously. Constantly evaluate your mistakes and correct them. A key characteristic of a manual trader is discipline in your trading and a solid risk management strategy. By this I mean, and this is VERY important for manual trading, calculating the maximum amount you are willing to lose per trade, as well as in total on your account. For example, maximum m 1% of equity loss per trade and maximum 3% of equity on all open trades. A manual trader has to protect his/her account balance at all times. Your worst enemy as a manual trader is not the market or your broker, but yourself and your emotions.
In terms of an actual trading strategy, I agree with the above. I have tried all kinds of indicators, hundreds of them. The best method of trading is to define clear support and resistance levels. Use the weekly, daily and 4-Hour charts to look for SR levels. mark them with different colors for each time frame. For a new trader I would recommend the previous weekly High (res) and Low (sup), Daily High (res) and Low (sup), and them 3 previous Highs (res) and 3 prev Lows (sup) on the 4-Hour charts. Then trade on your 4-Hour charts (don't go lower than the 1 Hour), only taking trades when the market is at or near your levels.
For example, if you see a Bullish engulfing Candlestick pattern formed right at a support level, then buy on the next candle, or if you see an Evening star Candle pattern form at resistance then sell at the next candle, etc. You can then use another SR level at your targets, and always place your SL above/below the previous SR level.
Always be on the lookout for SR levels of various time-frames to line up, you can even use Fib levels here. These are key levels to watch. And I would say you should keep perfecting you trading on demo until you see consistent results (3-6 months) before opeing a real account.
Apart from this you should always be consistent with your trading system.
I have attached a PDF files with some basic principles for managing your emotional trading state.
Good lukj and have fun!
Keep it simple, be disciplined, get rich slowly and above all protect your equity!