Hi All, just to put my 2 cents worth in here. We read so many stories and things to do during our venture into the world of trading. The most important thing, well there are many important aspects to take into consideration but understanding a price chart is key.
Any bad habits you have picked up in trading need to be removed, the only way to do this is to have good mentors and education. You need to find a strategy that fits for your style of trading. Whether it be Structure Based, Fib Levels, Advanced Patterns, AB=CD, 2618, Double tops and Bottoms, Combined Technical Scoring System, Trend / Counter trend, FTB Strategy, so many strategies to pick from. As some members have mentioned not all strategies work for everyone
To get belief the strategy or system works, it needs to be extensively back tested and forward tested. Data entry for your back testing results is crucial, entering all data needed to analyze the performance, and eventually optimize its performance. I have a spreadsheet which is my trading bible. It incorporates money management as well, which is another important aspect. Tells me when to increase and decrease position size. For new traders a common mistake is they see results in their backtest and they think to trade immediately on a real account. The reason for trading demo is it sets you up and trains the brain for losses and wins, but more so actively managing your portfolio.
There needs to be no subjectivity in your system or strategy, if the signal is there trade it. Pick your time frame or chart intervals and currency pairs you are going to trade. Best way is to back test the most common currencies and put all the data together, some strategies have better results in certain pairs. By doing this you will optimize the return on investment.
I could write a book, also Im not here to troll just to throw some advice. Please dont check my page or results then come back with a message saying I have only just signed into MyFXBook and that my data is limited. By all means though everyone has a right to opinions. Here is a small checklist if you haven't studied these things maybe its time to really take your trading to the next level.
1. Reading a Price Chart 2. Fibonacci's & AB=CD 3. Double tops and Bottoms 4. 2618 Trading 5. A combined technical scoring system - puts multiple trade strategies together to build a case for probability 6. Advanced Harmonic Patterns, Cypher, Bat, Gartley etc 7. Back testing and Forward Testing 8. Trade Plan, Pre Market checklist, Goal Setting 9. Money Management 10. Psychology
I hope at least one person gets something from this then its all well worth the small effort writing it. As always enjoy your trading
The stock market is a no-called-strike game. You don’t have to swing at everything — you can wait for your pitch. The problem when you’re a money manager is that your fans keep yelling, ‘Swing, you bum!’ "Warren Buffett"
HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors.
Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance.
You could lose some or all of your initial investment. Do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading, and seek advice from an independent financial or tax advisor if you have any questions.
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Past performance is not indicative of future results.