Very short trading course for rookies

Hello guys! I don't write this because I am a good person, I write this because I am bored and because I see a lot of hilarious trading systems and claims. I also see a lot of confusion among rookies and not only.
Guys, the price can only go up or down, up or down, not to the left and not to the right. Up and down guys, up and down, don't forget this. More, the price can go up or down, it can't go up and down in the same time, right!?
Ok, now, there are two big stages of price behaviour: consolidation (consolidation in a range, ranging) and trending. This is all folks, consolidation and trending. When you look at a chart you will see this two big stages of price, consolidation and trending, no matter what time frame you are looking at. Consolidation and trending!!!!!
Now, the consolidation can be an accumulation or a distribution, does not really matter.
So, the price is consolidating in a range, the range can be smaller or bigger, does not really matter again, but, at one momment, the price will BREAK-OUT from the consolidation area and will start to trend. So, the break-out is very important. After the break-out, the price can start to trend, up or down or can start to re-consolidate on a new levels or the price can even go back into the previous consolidation area. When the price is going back to the previous consolidation area we call this a false break-out. Usual, if the break-out is genuine, the price will retrace a bit to the consolidation area before will continue in the direction of the breakout.
Look at the attachements, you will see how the price is consolidating, then the breakout and then the trend (even if is a minitrend), I have attached 2 charts, one 4 HR TF and one 5 min TF.
Now, usual, when the price is trending the trend will have a few retracements on the way and you can jump in the trend using this retracements. When the price is consolidating-ranging, you can trade the range buying and selling the extrems of the range. This is simple guys. I don't believe in fibs, elliot waves. Within a trend there are a few waves but verry rare 5 waves.
Guys, all the indicators are useless and anyway most of you don't know how to use them correctly but there is a way that you can use an oscilator, is to spot price divergences. Many times, not allways, a divergence is an early indication of a trend change or anyway, an indication that the trend is over or is slowing. However, there are hidden divergences that are indications of trend continuation. You need to learn about this.
Now, the more you trade the more you risk. So, scalping and day trading is the holly grail for the brokers because they collect the spread and they also know that you will eventualy lose your money sooner or later.

Guys, after you have learned how the price is moving you need to learn money management and trading psychology. Let me tell you, if you don't make money in trading, yet, it means that you don't have a good money management and in terms of trading psychology it means that you are your own enemy.
I read that the high leverage is not good, on the contrary, is very good but you need to use it wisely. It means not to oversize your orders. I have a simple rule, I only trade 2 microlots for every 1000 euros in my account at once. I also don't use static SL levels. For example, if I trade a breakout in the 1hr TF, I will use what I call a dynamic SL, it means that I only close my lose if the price will have a 1 HR close back into the consolidation area but I close my trade. Many rookies are afraid of losing and they do not cut short the losing trade. You need to cut short any losing trade. If the price starts to trend don't take the profits very soon, you must let the winner runn and more than this, you must add to every retracement a new small position in order to compound the profit. Usual, a trend will have 2, 3 or 4 retracements (verry rare 5 or 6) so, you can add another 2, 3 positions to the trend and trade. For all of the above you need huge patience and mental discipline.

Here and everywhere are many rookies that believe they can become rich overnight, well not realy overnight but in a short time and this is why they fall for all kind of false prophets and gurus. In trading you can make money, no doubt about this, but you can not get rich fast, no doubt about this too. You can also lose money, no doubt too.
There is no such thing as 90% winning rate. If you, as a rookie, are looking for a trading system that can give you 90% winning rate you are already doomed and trading is not for you!!!

are you writing this for you? or are you trying to give people advice?

I am writing this for me. I do not give any advise, why would I!?

Regards!

I am going to search this forum to find the best threads for rookies that wants to learn.
I will start with this:
http://www.forexfactory.com/showthread.php?t=613753

Another good topic for rookies but also for more experienced traders is this:
How to predict markets, Catch the moves at value
http://www.forexfactory.com/showthre...53#post9247953

I will attach some of my favourite books. My first favourite book is writen by Nicolas Darvas: How I made 2 million in the stock market.
Enjoy the weekend guys!
Regards!

Nice post!! I see the market the same way you do...

The best thing that a newbie can do is that too earn some good knowledge through Forex Trading. You need to practice Demo Trading to improve your trades and earn more.

This is another good thread with very good analysis and signals, all by the famous Tarantula!!!
http://www.forexfactory.com/showthread.php?t=302511

This is another good and honest thread:
http://www.forexfactory.com/showthread.php?t=155431