10 Steps to forex learning & Trading !
Topic: 10 Steps to forex learning & Trading !
In my humble opinion, and as I have learned forex to trade eventually ... a newbie should do the following if he is blue-eyed.
1 - Download Metatrader terminal and run it ... press F1 to open its help file and study the functions of terminal ...knowing it fully well so there is no fumbling in operating it.
2 - Use a moving average of bigger period ... for instance, a 200 EMA ... using H1 time frame and study the price action ... monitor the price behavior around above and below the moving average ... open of a candle ... what the price does when a new candle opens if it is going up ... and vice versa.
3 - Learn about fractals ... price formations ... shapes and other graphical identifications.
4 - See where you may need some assistance in entering the market and what kind of trigger there should be to help you decide ... then start checking different tools and indicators to see what serves the purpose.
5 - If you happen to decide regarding some indicators ... research and study them ... see how they impend those signals and meet those requirements that you seek and test them against the running market. (Never ever go for an indicator seeing its painted history ... it might readjust or repaint itself).
6 - Never ever try to learn the market on an over-crowded chart ... don't start too many subjects at once when learning ... it will confuse you.
7 - Now is the time to pick some filters and entry points ... your study of the price action should help you decide where your entry point should be and how do you feel comfortable entering the market. If you are comfortable with a signal showing an arrow ... prefer using it.
8 - Calculate your boasted balance against the balance of your demo account ... and maintain a trade journal ... you can write 300 instead of 3000 in your trade journal to be more realistic as to how much money you are going to trade with and calculate your profits and losses accordingly ... to have a near-to-reality picture of what a live account would look like if you were trading one.
9 - Now see ... if you are in profit how much stop loss and profit target your set of rules is providing you ... decipher out your r:r ratio and devise a way to increase it if it needs rehabilitation.
10 - Now trade for at least 6 months ... remember 6 months of demo trading does not include the time it took you in learning. You can leave rest of the half year's experience to your LIVE TRADING, reality macho.
Remember one thing ... and it is frankly straight from me to the newbies ... don't spend your heads over the terms that you don't understand ... start trading demo and you will know during your demo experience what a strategy, a trade plan, a back up plan is ... you are constantly told to devise a strategy when you can't know A from B in forex and that is almost impossible for you guys ... so try doing things your own unique individual way and when you improve on your performance correcting the mistakes, eradicating the errors and rectifying them, you will have all those difficult terms understood.
Hope it will clarify many confusions