If you are a nervous trader like me, no system in the world will work for you. However, I have been working on a system that others have tried and it seems to be working.
Firstly, foget about trading big money if you are a nervous trader. Forget about sitting in front of the screen all day. Forget about the news. Forget moving averages. All you have to look at is the long term trend. Think about fundamentals.
Example, we see that the pound/dollar is very bullish and probably will always be that way. If you look at a 2-5 year chart, you will see what I am talking about. That being said, why not just cut your investment dollars into fractions and go long on the dips (100 pips or more). If it goes down again, buy more and so on. You should even plan on a dip from your original entry of 400-500 pips. If you cut down your amounts significantly, that kind of loss should still let you sleep at night.
So when do you sell? I sell when my latest purchase is up 50-100. You wont get rich doing this...yet. However, once you see that it's working for you and you gain the confidence of the system, you can begin to think about larger numbers. I've tried paper trading with larger numbers but I still had to sit at the computer all day. Very tiring and very stressful. Always had losses and of course had some wins. But again, as a nervous emotional trader, the losses really got to me.
I've been using this system for about 6 months and have not recorded a loss yet. Sure , I had to sit on a trade for a while until it turned positive for maybe 3 weeks or so but I was able to hold on because the amounts were not very significant. They did add up as I bought more and more but that is why you need to trade in VERY small amounts until you get the feel for it. I just recently put more money into my account and feel wonderful about it. I am upping my investment amounts (not "Trading" amounts) and am very relaxed about it. And as you know, that is one of the biggest problems: FEAR !
Now, the lack of fear does not make me do stupid things. I cant tell you how many times even though I knew (or at least had a good feeling) the pound was going to go up again, I still took a loss because I could not stand being in the negative and sitting there having to look at it for hours or even minutes. Lets face it, the pound is very volatile, it is easy to get stopped out for 20 pips or so. So, I gave up trying to be exact. I still buy at support and sell at resistance, but those areas are usually major S&R areas. If you're a beginner and unable to pick those areas, dont. Just wait until the end of the trading day and buy only if it has gone down 100 or more pips. BUY LOW, SELL HI ! It's simple.
Bottom line
Firstly, foget about trading big money if you are a nervous trader. Forget about sitting in front of the screen all day. Forget about the news. Forget moving averages. All you have to look at is the long term trend. Think about fundamentals.
Example, we see that the pound/dollar is very bullish and probably will always be that way. If you look at a 2-5 year chart, you will see what I am talking about. That being said, why not just cut your investment dollars into fractions and go long on the dips (100 pips or more). If it goes down again, buy more and so on. You should even plan on a dip from your original entry of 400-500 pips. If you cut down your amounts significantly, that kind of loss should still let you sleep at night.
So when do you sell? I sell when my latest purchase is up 50-100. You wont get rich doing this...yet. However, once you see that it's working for you and you gain the confidence of the system, you can begin to think about larger numbers. I've tried paper trading with larger numbers but I still had to sit at the computer all day. Very tiring and very stressful. Always had losses and of course had some wins. But again, as a nervous emotional trader, the losses really got to me.
I've been using this system for about 6 months and have not recorded a loss yet. Sure , I had to sit on a trade for a while until it turned positive for maybe 3 weeks or so but I was able to hold on because the amounts were not very significant. They did add up as I bought more and more but that is why you need to trade in VERY small amounts until you get the feel for it. I just recently put more money into my account and feel wonderful about it. I am upping my investment amounts (not "Trading" amounts) and am very relaxed about it. And as you know, that is one of the biggest problems: FEAR !
Now, the lack of fear does not make me do stupid things. I cant tell you how many times even though I knew (or at least had a good feeling) the pound was going to go up again, I still took a loss because I could not stand being in the negative and sitting there having to look at it for hours or even minutes. Lets face it, the pound is very volatile, it is easy to get stopped out for 20 pips or so. So, I gave up trying to be exact. I still buy at support and sell at resistance, but those areas are usually major S&R areas. If you're a beginner and unable to pick those areas, dont. Just wait until the end of the trading day and buy only if it has gone down 100 or more pips. BUY LOW, SELL HI ! It's simple.
Bottom line
