So, I'm completely new at this, and am trying to develop a plan of sorts for how to go about learning to trade on demo.
My current plan is to start by using purely candles, support/resistance, and perhaps trend lines on short period charts, during the time periods ideal for daytrading. I want to get to the point that I can trade profitably, or somewhat close to profitably, on a chart at a minimum timeframe of 1 day and ideally as low as 15 minutes. I'm considering avoiding using any of the other technical indicators until I'm fairly comfortable with these, basically focusing on the fundamentals (TA fundamentals, that is) first. Is it realistic to have any success with just these particular tools on short timeframes, or even on longer ones?
The main reason I doubt this plan is that I virtually never see candles cited as the reason for decisions made on these forums, or any of the other things I've read. Its always the EMAs crossed, or RSI/stoch said this or that, etc. This makes me question if candles are a viable primary trading method at all. My anecdotal impression so far is that I am profitable if I'm patient enough to wait for the stronger indicators, but honestly they're rare enough that its hard to get a good sample size.
Now, I'm well aware of the common view on short term daytrading, so I'd like to explain my reasons. First, I have a lot of time. I can commit almost any amount I want to learning this stuff. Second, while I don't doubt the widespread claim that shorter timeframes are much harder to master, I have yet to see anyone note that you get a *lot* more practice working with shorter timeframes. I have something like 30 candle patterns that I need to not only memorize but understand, and I just can't see it being more efficient to do that by only using weekly/daily charts. I'm sure I'll lose accuracy, but its a demo account, so no big deal. Third, since its a demo account, the biggest issue people seem to have with it (the cost being static making many small trades expensive) doesn't apply, and I would assume that the skills I build practicing on shorter time frames are still largely applicable to larger ones if thats what I need to do live.
I have a ridiculous number of questions (I write them down as I trade), but for now, does anyone have any thoughts on my basic plan? I'm sure I come off as a bit cocky, but I am very open to advice. Any help would be greatly appreciated.
My current plan is to start by using purely candles, support/resistance, and perhaps trend lines on short period charts, during the time periods ideal for daytrading. I want to get to the point that I can trade profitably, or somewhat close to profitably, on a chart at a minimum timeframe of 1 day and ideally as low as 15 minutes. I'm considering avoiding using any of the other technical indicators until I'm fairly comfortable with these, basically focusing on the fundamentals (TA fundamentals, that is) first. Is it realistic to have any success with just these particular tools on short timeframes, or even on longer ones?
The main reason I doubt this plan is that I virtually never see candles cited as the reason for decisions made on these forums, or any of the other things I've read. Its always the EMAs crossed, or RSI/stoch said this or that, etc. This makes me question if candles are a viable primary trading method at all. My anecdotal impression so far is that I am profitable if I'm patient enough to wait for the stronger indicators, but honestly they're rare enough that its hard to get a good sample size.
Now, I'm well aware of the common view on short term daytrading, so I'd like to explain my reasons. First, I have a lot of time. I can commit almost any amount I want to learning this stuff. Second, while I don't doubt the widespread claim that shorter timeframes are much harder to master, I have yet to see anyone note that you get a *lot* more practice working with shorter timeframes. I have something like 30 candle patterns that I need to not only memorize but understand, and I just can't see it being more efficient to do that by only using weekly/daily charts. I'm sure I'll lose accuracy, but its a demo account, so no big deal. Third, since its a demo account, the biggest issue people seem to have with it (the cost being static making many small trades expensive) doesn't apply, and I would assume that the skills I build practicing on shorter time frames are still largely applicable to larger ones if thats what I need to do live.
I have a ridiculous number of questions (I write them down as I trade), but for now, does anyone have any thoughts on my basic plan? I'm sure I come off as a bit cocky, but I am very open to advice. Any help would be greatly appreciated.
