newb about to start demo trading

I plan to begin demo trading after I finish going through babypips.com and reading some of the threads on this site.

The problem is, I have no rules in place for a "system."

Is the example from babypips.com (link) a legit system to follow? If so, I plan on demo trading that for at least 3 straight profitable months before I start a live account.

Does this seem like a good plan?

Is it a bad idea to use this system? If so, should I just try to come up with my own ideas that aren't already published?

I am completely aware that I'm a newb and the phrase "I don't know what I don't know" applies to me right now. Any help would be appreciated.

hi!

I'm giving my first steps too..I started in fx it's making now 5 months and what i can tell you..well start to understand how it works, how a trade is made, units, leverage, stop loss, take profits..Try to understand the Japanese candlesticks, and very important money management! Later you can start to see trendline, supports and resist. lines etc..

this is just my opinion...this not mean i'm right..bigger sharks will tell you more..

Cheers

That strategy is a great way to start. You will learn so much trying to trade the market with a proper strategy in place. I think the Babypips tutorials are an excellent introduction.

If you have a run of profitable trades you will be very lucky, unless you have already learned the basics of support and resistance. For example, if you are playing the Babypips strategy on, say, the daily time frame and your trade runs into monthly S/R levels. When you have more knowledge of how the market moves you will probably rely less on indicators as they lag real time moves.

One thing I would add to that strategy is this: When you get a signal, place your trade beyond the signal bar so that the market picks up your trade while it is moving in the right direction. Another thing I would do is research fading the trade if the next bar is not profitable. This can help prevent poor entries in ranging markets.

That's good advice, that way you're less likely to go broke while looking for the elusive predictive indicator or strategy.

The babypips system the OP linked to is probably no better or worse than the thousands of other systems posted around the net and on forums. Without the basics of trading none of them will make any money.

I wouldn't even bother looking at strategies until I'd learnt how to trade.

Don't listen to Pipmutt. He hasn't got a clue what he's talking about.

Yeah, don't listen to me, I'm just an eccentric millionaire who only trades for amusement!

I would suggest you, first of all, make a general rules of your own desirable way of trading, such as short/long term trading, high/low risk trading, see what you want,

Then take a much closer look at various strategies, see if any of em suits you. in time you'll have your own, following your own indications, and patterns recognition, gotta play alot with the price too.

and in all of this keep your spirit cool and out of self-trouble.

I wouldn't be surprised... Have a good weekend everyone.

hmmm... reverse psychology/half-truth??
this must be the reason why u delve more into a particular kind of thread/topic - u are already well off.

glad to have a millionaire on board
btw, millionaire in $, aud, euro, gbp, yen or what?

COP, trouble is you need about 7,000 of 'em to buy a big mac!

I could say anything though, that's the beauty of forums, we can be whatever we want to be