After a few failed attempts, I have recently begun to turn the corner in regards to live trading. There are a few things I wanted to share here that I think could help traders who are just getting into Forex.
Epiphany #1
Stop trying to predict where the market will go. This one is easier said than done. It is human nature to want to be right about something. Having an idea about where price will go and then seeing price do just that -- it's an amazing feeling. It validates our "worth" as traders. It is also very problematic to executing objective trades, and that is precisely the mindset you need to have -- objectivity. I see countless posts in the pair threads along the lines of "If EUR/USD breaks through 1.1675 resistance, it looks like we'll be on our way to 1.18"... STOP DOING THIS. And for all others -- stop taking this as gospel. What's happening is you are setting an expectation based on nothing tangible, one that can influence future decisions even in light of evidence to the contrary (remember what I said about the human need to be right?). You may be saying to yourself, "Hold up, Nico. I'm not one of those people that always needs to be right." And perhaps you are not. But even so, your subconscious mind is susceptible to all manner of suggestion, and trying to predict the market is training your subconscious to expect something that may or may not happen. Don't expect anything in this endeavor.
Epiphany #2
Get rid of your numerous indicators. Yeah, I said it. I come across so many screenshots on here of various guys' trading setups that look like something out of a Jackson Pollock painting. You don't need them. And I'll go one step further -- Get rid of your entry signal indicators/systems. All of them. "When 20MA is above 100MA, and RSI has crossed from below the 20 threshold, and ADX is above 25, and the crow flies at midnight and the moon is in a crescent lunar phase..." Just stop with all that. These systems are based on past information and are generating signals based on expectation from prior events (which brings back to mind Epiphany #1). All you really need is a candlestick chart and a method for determining S/R. Now, there are some indicators that can provide that for you, and that is the one exception to this rule. Fibos, Bollinger Bands, and MAs (used as S/R, and not as entry indicators). These are ok in my book, but once again -- use them to help you determine possible points of S/R, not as signals to enter the market.
Epiphany #3
Get motivated. And saying "I want to make money!" is not motivation enough. Obviously, we all want to make money here. You have to dig deep and find something that will give you that extra level of focus and determination. I'll give you my example -- I'm a poker player, and I've been active on a poker forum called 2+2 for many years. This forum has a lot of sub-forums outside of poker. Sporting Events, Health & Fitness, etc, aaaand Business, Finance, & Investing. You may not know this, but there are some very talented trading and financial minds in the poker community. Guys who have worked for investment firms or on trading floors for decades. I started a thread there documenting my attempt to take a "micro account" and trade it profitably. I was immediately met with doubt and disdain. Most of these guys trade pure stocks or derivatives and their opinion of forex is that it is a sucker's market and not in any way, shape, or form a medium in which a retail trader can be successful in. And you know what? They might be right. But I also VERY MUCH want to prove them wrong. Doubters and detractors can be a great source of motivation. Now, you may not have a similar circumstance, but the point remains -- find someone or something to help you REALLY get motivated.
Good luck all and Godspeed.
Epiphany #1
Stop trying to predict where the market will go. This one is easier said than done. It is human nature to want to be right about something. Having an idea about where price will go and then seeing price do just that -- it's an amazing feeling. It validates our "worth" as traders. It is also very problematic to executing objective trades, and that is precisely the mindset you need to have -- objectivity. I see countless posts in the pair threads along the lines of "If EUR/USD breaks through 1.1675 resistance, it looks like we'll be on our way to 1.18"... STOP DOING THIS. And for all others -- stop taking this as gospel. What's happening is you are setting an expectation based on nothing tangible, one that can influence future decisions even in light of evidence to the contrary (remember what I said about the human need to be right?). You may be saying to yourself, "Hold up, Nico. I'm not one of those people that always needs to be right." And perhaps you are not. But even so, your subconscious mind is susceptible to all manner of suggestion, and trying to predict the market is training your subconscious to expect something that may or may not happen. Don't expect anything in this endeavor.
Epiphany #2
Get rid of your numerous indicators. Yeah, I said it. I come across so many screenshots on here of various guys' trading setups that look like something out of a Jackson Pollock painting. You don't need them. And I'll go one step further -- Get rid of your entry signal indicators/systems. All of them. "When 20MA is above 100MA, and RSI has crossed from below the 20 threshold, and ADX is above 25, and the crow flies at midnight and the moon is in a crescent lunar phase..." Just stop with all that. These systems are based on past information and are generating signals based on expectation from prior events (which brings back to mind Epiphany #1). All you really need is a candlestick chart and a method for determining S/R. Now, there are some indicators that can provide that for you, and that is the one exception to this rule. Fibos, Bollinger Bands, and MAs (used as S/R, and not as entry indicators). These are ok in my book, but once again -- use them to help you determine possible points of S/R, not as signals to enter the market.
Epiphany #3
Get motivated. And saying "I want to make money!" is not motivation enough. Obviously, we all want to make money here. You have to dig deep and find something that will give you that extra level of focus and determination. I'll give you my example -- I'm a poker player, and I've been active on a poker forum called 2+2 for many years. This forum has a lot of sub-forums outside of poker. Sporting Events, Health & Fitness, etc, aaaand Business, Finance, & Investing. You may not know this, but there are some very talented trading and financial minds in the poker community. Guys who have worked for investment firms or on trading floors for decades. I started a thread there documenting my attempt to take a "micro account" and trade it profitably. I was immediately met with doubt and disdain. Most of these guys trade pure stocks or derivatives and their opinion of forex is that it is a sucker's market and not in any way, shape, or form a medium in which a retail trader can be successful in. And you know what? They might be right. But I also VERY MUCH want to prove them wrong. Doubters and detractors can be a great source of motivation. Now, you may not have a similar circumstance, but the point remains -- find someone or something to help you REALLY get motivated.
Good luck all and Godspeed.