Stick to the Basics

To be successful in this business you need to stick to the basics, like support and resistance and trenline analysis. If you can read the candles (not patterns) on a individual basis then you will be fine. Now if you can tell what the market phase is before you enter a trade then that coupled with the other basic principals then you will be ahead of the curve !!!

I agree wholeheartedly with this post. I used to be one to think that the more indicators you had, the better off you were. This thinking only leads to several different indicators all giving different signals, which in turn leads to confusion and gives the trader no clear direction.

One thing that has REALLY helped me - and of course I'm no pro, not yet - is a post on DailyFX.com. Here's the link: https://www.dailyfx.com/forex/education/trading_tips/post_of_the_day/2011/06/15/How_to_Create_a_Trading_Edge_Know_the_Strong_and_the_Weak_Currencies.html

Written by one of the instructors there, he tells you how to get a slight edge by pairing strong against weak. Now this analysis is how I begin my trading day (before going to my real job, haha), and it seems to be paying off. Then of course, I look at S/R, and check a 14 RSI and (maybe) a 12, 26, 9 MACD. Stops / targets based off the 14 (DAY!) ATR. 4 hour timeframe.

Yes, it takes a little while but I just ended last week winning 4 trades, 2 of which matured while I was fast asleep. :) This was only accomplished through very careful trade choice, but as always hinged mainly on the use of the old standbys - Support and Resistance, and Trendlines.

skiilodge posted:
To be successful in this business you need to stick to the basics, like support and resistance and trenline analysis. If you can read the candles (not patterns) on a individual basis then you will be fine. Now if you can tell what the market phase is before you enter a trade then that coupled with the other basic principals then you will be ahead of the curve !!!

I agree. Some think the more 'tools' they use, the better the trading system, but sometimes they miss the point of having to actually read the chart instead of thinking the indicators will do that job for them.

May I know what is a market phase? Is that the type of the market, ie trending/ranging?

I think new traders ought to start with this thread😎

Right on the mark! The three most important words a trader can learn – Keep it simple!

95% Do Keep it simple 🙄 - But not to many are ready to face the 5 Year Learning Curve..... 😂

James_Bond posted:

skiilodge posted:
To be successful in this business you need to stick to the basics, like support and resistance and trenline analysis. If you can read the candles (not patterns) on a individual basis then you will be fine. Now if you can tell what the market phase is before you enter a trade then that coupled with the other basic principals then you will be ahead of the curve !!!

I agree. Some think the more 'tools' they use, the better the trading system, but sometimes they miss the point of having to actually read the chart instead of thinking the indicators will do that job for them.

May I know what is a market phase? Is that the type of the market, ie trending/ranging?

I totally agree my friend. Simplicty; IMHO, is the key to all success no matter what you do. Work smarter not harder, the old saying is true. With trading, you spend a lot of time and practice to engulf the encyclopedia's of information, sort and import only what truly works then execute what works everytime.
I apply that to my everyday life routines. Limiting mistake compounds go a long way in life too.
Love your avatar Mr Bond, Happy pips everyday to all!
C~

you guys are so on point. newbies think dat the more indicator on their, the better the signal. market is no respecter of indicators. indicators are just what it is...for analysis and reporting, maybe for people working at CBNC lol🙄

I also would like to add another important piece of information for those doing day trade or trade in 1H or less.
Pay attention to the financial news calendar. My rule is to stay out when high risk economic data are about to be released.

100% agree that basics is best. Main reason being to keep your mind clear and make it easier to follow a plan.

Is good experience at the start to trial indicators and understand how they are lagging etc.

Then once go through that process, just need screen time and getting use to price action.