S/R levels (with candlestick patterns/PA confirmation) is the basis of successful trading. If you want to add whatever indicators and bells/whistles you think will help you see that.
Now either I'm a genius for finally getting what many seem confused about or the last year of my life has been totally wasted, because you can read the above statement in almost any thread you stumble into.
While I'm typing here I might as well let you in on the other <irony>massive breakthroughs</irony> I've had in this first year:
Q) Can you make 10% a month? Can I make 10% a month? Can my uncle Phil make 10% a month - he has 7 toes on his left foot.
A) Get a grip, when you stop looking at the gains and concentrate on the trades you'll make money. From your records you can work out a net average that each trade will give you. You may be +ve either because make more than you risk, or win more times than you lose, or both. Does a trade need to be 1R+? No not if your hit rate is 90%. Horses for courses.
But lets assume for arguments sake that you take trades that are 2:1 and you win 50% of the time (you know this from your records). Lets also assume that you risk 1% of your account, because you read it somewhere... blah blah blah.
If in any given month you find 8 trades that meet your entry criteria, whatever you have decided that is - you will on average add 4% to you account that month. Find more you will add more, less and you will make less. Notice the bold on average here please, I'm assuming we all understand that concept.
Ok so now you can decide if you can make 10% a month, 1% a day, 5% a year or whatever other figure you have come up with. Please, please, please don't listen to other people telling you what they make or what they think you should be making. Your records will, in time, prove to you what you can expect and not hope to make. With increasing skill and knowledge you will increase your return as long as you keep your emotions in check though the process.
I have a good friend who I met after he moved to our city - to one of the roughest parts, and managed to get work in a sausage factory -lets just say he didn't have the best set of circumstances. I think this was 6 or 7 years ago now, maybe more I can't remember. Where is he today? Funny you should ask - he has a sizeable property portfolio and lives in a >£1mill house.
A friend who I used to play in a band with started his business with a £200 advert in a paper and a rented room. Today he has around 10 professionals working for him and takes on contracts for the NHS.
My brother is a black belt kickboxer, just setting up his own training business. What's so remarkable about this one? Well if you had seen his physique and lifestyle a few years back you would know why I bothered typing it.
I guess what I'm saying is set your own limits, you may make your fortune trading FX, you may not, that's not the point. It's down to you, not others opinions of what you should achieve.
Ok moving on now, we have a friend coming over, and I didn't think this would take as long as it has. I'll write in another post about 2 other things that I have understood to be very important:
1) trading the trade rather than your P/L statement
2) Not moving stops to BE.
Please understand I'm not writing with any agenda or even any authority, it's just here for anyone interested in a ~1year shortcut.
Dave.
Now either I'm a genius for finally getting what many seem confused about or the last year of my life has been totally wasted, because you can read the above statement in almost any thread you stumble into.
While I'm typing here I might as well let you in on the other <irony>massive breakthroughs</irony> I've had in this first year:
Q) Can you make 10% a month? Can I make 10% a month? Can my uncle Phil make 10% a month - he has 7 toes on his left foot.
A) Get a grip, when you stop looking at the gains and concentrate on the trades you'll make money. From your records you can work out a net average that each trade will give you. You may be +ve either because make more than you risk, or win more times than you lose, or both. Does a trade need to be 1R+? No not if your hit rate is 90%. Horses for courses.
But lets assume for arguments sake that you take trades that are 2:1 and you win 50% of the time (you know this from your records). Lets also assume that you risk 1% of your account, because you read it somewhere... blah blah blah.
If in any given month you find 8 trades that meet your entry criteria, whatever you have decided that is - you will on average add 4% to you account that month. Find more you will add more, less and you will make less. Notice the bold on average here please, I'm assuming we all understand that concept.
Ok so now you can decide if you can make 10% a month, 1% a day, 5% a year or whatever other figure you have come up with. Please, please, please don't listen to other people telling you what they make or what they think you should be making. Your records will, in time, prove to you what you can expect and not hope to make. With increasing skill and knowledge you will increase your return as long as you keep your emotions in check though the process.
I have a good friend who I met after he moved to our city - to one of the roughest parts, and managed to get work in a sausage factory -lets just say he didn't have the best set of circumstances. I think this was 6 or 7 years ago now, maybe more I can't remember. Where is he today? Funny you should ask - he has a sizeable property portfolio and lives in a >£1mill house.
A friend who I used to play in a band with started his business with a £200 advert in a paper and a rented room. Today he has around 10 professionals working for him and takes on contracts for the NHS.
My brother is a black belt kickboxer, just setting up his own training business. What's so remarkable about this one? Well if you had seen his physique and lifestyle a few years back you would know why I bothered typing it.
I guess what I'm saying is set your own limits, you may make your fortune trading FX, you may not, that's not the point. It's down to you, not others opinions of what you should achieve.
Ok moving on now, we have a friend coming over, and I didn't think this would take as long as it has. I'll write in another post about 2 other things that I have understood to be very important:
1) trading the trade rather than your P/L statement
2) Not moving stops to BE.
Please understand I'm not writing with any agenda or even any authority, it's just here for anyone interested in a ~1year shortcut.
Dave.