BACKGROUND
During 10 years of stock and bond investing I managed to evolve my investor strategy for that market. I am a conservative investor that focusues on potential loss just as much as potential gain. Unlike the stock market which I buy and hold for months or years at a time sometimes never selling (I currently hold Bank of Nova Scotia stock for 6+ years with no intent on selling considering the dividend it pays) the forex market is a totally different market.
I plan to enter the forex market with a micro account with FXpro, but first I will expand my knowledge with a DEMO account with a starting balance of $1000 USD. After I gain enough confidence to put up some decent capital I plan on moving to a REAL account with a $1000 USD starting balance.
TRADING STYLE
Trend trading is what I will focus on, I'm not interested in trading breakouts or range-bound markets.
I will use the 4-Hour, 1-Hour and 15-Min chart. After confirming the trend on both the 4-Hour and 1-Hour chart I will use the 15-Min chart to enter the trade.
INDICATORS
I plan on using the SMA and RSI to assist me in entering a trade. I will also use support and resistence levels to assist my trades. The system is simple for the time being until I gain better understanding on how the market moves.
RISK MANAGEMENT
I will not risk more than 5% of my account at any given time. Which if my math is right will be .50 lot size for one trade. If i take a .50 position I can not open another trade until I exit the first one. I will not have more than 3 trades open at a time, and they must equal < .50.
TAKE PROFIT/STOP LOSS
I will use a 1:2 ratio. For every 100 pip loss I will gain 200 pips, in theory anyway. I will also employ a trailing stop-loss in case my take profit is not hit before the market turns against my favor. I have no set distance that I will let the stop-loss trail.
TRADING DESK
Here is a screenshot of my setup thus far. (No laughing, lol)
I will also use myFXbook to track my progress. Any feedback or questions would be greatly appreciated.
Thanks!
During 10 years of stock and bond investing I managed to evolve my investor strategy for that market. I am a conservative investor that focusues on potential loss just as much as potential gain. Unlike the stock market which I buy and hold for months or years at a time sometimes never selling (I currently hold Bank of Nova Scotia stock for 6+ years with no intent on selling considering the dividend it pays) the forex market is a totally different market.
I plan to enter the forex market with a micro account with FXpro, but first I will expand my knowledge with a DEMO account with a starting balance of $1000 USD. After I gain enough confidence to put up some decent capital I plan on moving to a REAL account with a $1000 USD starting balance.
TRADING STYLE
Trend trading is what I will focus on, I'm not interested in trading breakouts or range-bound markets.
I will use the 4-Hour, 1-Hour and 15-Min chart. After confirming the trend on both the 4-Hour and 1-Hour chart I will use the 15-Min chart to enter the trade.
INDICATORS
I plan on using the SMA and RSI to assist me in entering a trade. I will also use support and resistence levels to assist my trades. The system is simple for the time being until I gain better understanding on how the market moves.
RISK MANAGEMENT
I will not risk more than 5% of my account at any given time. Which if my math is right will be .50 lot size for one trade. If i take a .50 position I can not open another trade until I exit the first one. I will not have more than 3 trades open at a time, and they must equal < .50.
TAKE PROFIT/STOP LOSS
I will use a 1:2 ratio. For every 100 pip loss I will gain 200 pips, in theory anyway. I will also employ a trailing stop-loss in case my take profit is not hit before the market turns against my favor. I have no set distance that I will let the stop-loss trail.
TRADING DESK
Here is a screenshot of my setup thus far. (No laughing, lol)
I will also use myFXbook to track my progress. Any feedback or questions would be greatly appreciated.
Thanks!
Risk comes from not knowing what you're doing.