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Back to basics- looking for a method to approach the market

  • Post #1
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  • First Post: Oct 8, 2013 9:06am Oct 8, 2013 9:06am
Hello.

Let me first tell you a bit about me. I have been on and off trading for 3 years (due to studies). Blew up my first account during the first year and went back to the drawing board and demo trading. I have tried various strategies, a huge amount of indicators and several EAs... of course, most of which didn't work even on demo account, let alone live account.

I have decided to go back to basics and studying again, because so far nothing of the "advanced" stuff worked for me. I have always been trying to scalp, but just recently it struck me -"what if my mentality and personality isn't suited for scalping, and thus I am approaching trading from the wrong side?"

That being said I am looking for more resources to learn from about long-term trading. If anybody has any ideas, feel free to post a link here - just please let me clarify that I am not looking for strategies. What I am looking for is a method to approach the market for long-term trading.

Sorry for the long post, I just hope I have made myself clear,.
I understand your frustrations because I have been there too. But there is one place I found some very useful information HERE. If your trading does not change a bit after going through his articles and videos, then it will take you even longer.

Hope this helps
Start learning: Price action of higher time frames; Ichimoku trading....you can rely on these on the long term
First off let me be the one to tell you that Indicators are complete rubbish and is NOT a profitable way to go, and neither is EA's.

You need to go toward Price Action trading. I'm assuming you have read the school on Babypips.com before asking that question, that being said I can recommend you toward some ways where you may advance your learning.

1) Learn about Price action. Specifically Engulfing candles, this is crucial to any price action strategies. After that begin learning the patterns such as triangles, wedges, ect. I personally use only Engulfing as i found that it has the highest success rate upon doing a manual backtest of it.

2) Learn about Supply/Demand and how you an incorporate it within your trading. I recommend Readthemarket.com, Alfonso's thread on supply demand swing trading, and finally Sam Seiden's videos on fxstreet.

3) Get your head in the game. When you're in demo you MUST treat it like live. If you lose money, pretend that you lose real money. It seems to me that your main problem is your strategy (seriously, indicators+EA's are rubbish), but remember that psychology is a big deal as well.

4) And finally and probably the most important part: Money management. Learn proper risk:reward ratios and how much you can afford to lose (max 5% risk per trade IMO).


Good luck to you!
Quoting Masudhossain
First off let me be the one to tell you that Indicators are complete rubbish and is NOT a profitable way to go, and neither is EA's. You need to go toward Price Action trading. I'm assuming you have read the school on Babypips.com before asking that question, that being said I can recommend you toward some ways where you may advance your learning. 1) Learn about Price action. Specifically Engulfing candles, this is crucial to any price action strategies. After that begin learning the patterns such as triangles, wedges, ect. I personally use only...
When talking about Price Action highly recommend Chris Capre materials from 2ndsskiesforex.
Price action trading and kind of curious - how much did you lose on the EAs?
Either way, chalk up the experience to a lesson and move on from there..Marl Galant, Michael covel..
Hey Endless177,
I'm a scalper mostly, in and out nice and quick so I can enjoy the rest of the day-aim to make my ten pips ASAP and leave the market to the longterm traders.
Just to let you know I started out as a longterm trader and the only difference to my system now as a scalper is the timeframe and limit orders and of course the opportunities to compound.
Alot of trading happens in the mind that's why some people can use say system A and do well and others who use it fail beyond belief, so if your struggling I would check in with the upstairs department first.


Expatfx
I suppose that's one way of putting it. Not a scalper for obvious reasons but just curious about one thing though - as a scalper how do you manage to close your position even when the market's trending in the right direction? Walking away from a trending market takes a lot, believe me, been there, done that..
Quoting Alanamc
{quote} When talking about Price Action highly recommend Chris Capre materials from 2ndsskiesforex.

I torrented all his videos and found them to be terrible.
Quoting Expatfx
Hey Endless177, I'm a scalper mostly, in and out nice and quick so I can enjoy the rest of the day-aim to make my ten pips ASAP and leave the market to the longterm traders. Just to let you know I started out as a longterm trader and the only difference to my system now as a scalper is the timeframe and limit orders and of course the opportunities to compound. Alot of trading happens in the mind that's why some people can use say system A and do well and others who use it fail beyond belief, so if your struggling I would check in with the upstairs...
Hi Expatfx,

I am a long time trader (D1) currently but practicing on becoming a scalper too. I intend to be looking for just 10 pips a day. Any tips on where I should look for the relevant information?

Thanks
Hi Endless177,

If you understand of Price Action it's good for your trading, but you need to learning about the valid signal of Price Action,
try to read carefully of the chart from higher tf, like weekly tf here the sample
by using two ma as the filter of the trend ........
SMA 5 shift 1 price set up Close and LWMA shift 1 price set up open......
see a sample GBPAUD below .......on 03.10.2013 price break the MA so this is the valid SELL Signal, 01.10.2013 engulfing bar but can not close below the two ma, 02.10.2013 price pullback test the higher, and on the 03.10.2013 price break the low of engulfing bar and that the valid sell signal, just see the chart below....
after the end of the week just zoom back the weekly tf .......if pa touch the weekly tf two ma line just sell .... see D1 also, H4,H1...... maintain your SL above the line MA

may be this figure could help you to correction which area you need improve or learning more before enter to the trade ....

cheers
Attached Images (click to enlarge)
Click to Enlarge Name: gbpaudxweekly.png Size: 30 KB Click to Enlarge Name: gbpaudxdaily.png Size: 45 KB Click to Enlarge Name: gbpaudxh4.png Size: 37 KB Click to Enlarge Name: gbpaudxh1.png Size: 47 KB
Click to Enlarge Name: gbpaudxweeklyb.png Size: 41 KB
Quoting Masudhossain
First off let me be the one to tell you that Indicators are complete rubbish and is NOT a profitable way to go, and neither is EA's. You need to go toward Price Action trading. I'm assuming you have read the school on Babypips.com before asking that question, that being said I can recommend you toward some ways where you may advance your learning. 1) Learn about Price action. Specifically Engulfing candles, this is crucial to any price action strategies. After that begin learning the patterns such as triangles, wedges, ect. I personally use only...
When you refer to money management what exactly do you do to calculate this. For example do you consider you a ratio for you tp and sl ? Something like 1:1 or 1:2 . So if I aimed to get say 10 pips from a trade would I then set my sl to 20 pips ? I have been trying live and demo accounts and I get the concept that on the longer trades a need larger pips for sl and tp. Not sure if it is true or how to correct it but seems like if you trading daily setting a stop loss of 20 pips can get hit very easily just for fluctuations in the market ? Not sure how to avoid these fluctuations. It seems from what I have read that it has to do with timing, when you enter the market . Would this be correct ?
Finding and developing a method that fits you can be very hard. I've settled nicely on daily/weekly big picture and entries/trade management on 4h. Spending time looking at the big picture, formulating ideas then watching lower TF to execute is quite nice.

A combination of PA and some indicators (mostly MA's), fibs and EW are helping me develop a good strategy with a consistently positive return.

That's what's working for me though - won't necessarily work for you or anyone else as we're all different.

I recommend you do the following:

Develop a big picture analysis method/routine
Try a few shorter term methods for execution until you find what works for you.

There are lots of threads in the commercial section and trading systems sections that have very good info.

Be wary of anyone telling you "This doesn't work" or "That is useless" - nobody can tell you what will work for you

Keep at it and GL
Anything can happen.
Learning of PASR
http://www.stratsforextrading.com/do...method_summary
Trader should learn first the basics of Forex trading and increase their knowledge and experience and can become successful trader in the future. Trader should also follow patience to overcome the loss factors.
  • Post #16
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  • Last Post: Feb 2, 2016 5:24am Feb 2, 2016 5:24am
Forex trading can be frustrating, many traders can attest to that. Scalping as a trading strategy can be very difficult because you have to use smaller time frames(1min,5min and 15min) which are highly unreliable. I would suggest sticking to higher time frames (1hr and 4hr) and using price action for trading opportunities. No need to fill your Chart with multiple indicators, a single momentum indicator is enough. Most importantly, you have to realize that there is no perfect method for trading forex. You need to have good money management to be successful in trading.
Always follow the trend
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