Hi Folks (1st post)
I am new to spot FX, but I traded futures extensively in the 1990s and for a time held a Series 3 license.
You have to be able to 'read' the market from just a bar or candle chart to have any hope of sustained profit. Why? Because the market is a non-stationary function. Not only do prices change, but the rules of the market itself change from time to time. That means that your RSI set to 14 bars may work great while the market is temporarily behaving like a 14-bar RSI expects. But as soon as the market abruptly shifts to another behavior model, you lose. Systems that cannot self-adapt will almost always lose. Unless you have access to the highly complex systems like financial institutions use, your attempts to make money from primitive moving averages and oscillators will likely end up badly. Been there, done that. You are fighting a war with sticks and stones.
Indicators are very valuable to provide context information that helps in your decisions, but you cannot ever rely on just indicators. You have to see what the market is actually doing regarding its interaction with support and resistance levels. The market will tell you what is up if you listen.
I recommend that newbies watch the market, on 1 min & 5 min bar charts, for a few hours per day for several months. Watch the indicators you intend to use, and observe how they behave when normal things happen and when strange things happen. Then apply those lessons to tiny real trades (0.01 lots). You have to learn to recognize patterns and read intentions from how the market moves, and there is no way that can happen IN REAL TIME without experience.
Good luck!
I am new to spot FX, but I traded futures extensively in the 1990s and for a time held a Series 3 license.
You have to be able to 'read' the market from just a bar or candle chart to have any hope of sustained profit. Why? Because the market is a non-stationary function. Not only do prices change, but the rules of the market itself change from time to time. That means that your RSI set to 14 bars may work great while the market is temporarily behaving like a 14-bar RSI expects. But as soon as the market abruptly shifts to another behavior model, you lose. Systems that cannot self-adapt will almost always lose. Unless you have access to the highly complex systems like financial institutions use, your attempts to make money from primitive moving averages and oscillators will likely end up badly. Been there, done that. You are fighting a war with sticks and stones.
Indicators are very valuable to provide context information that helps in your decisions, but you cannot ever rely on just indicators. You have to see what the market is actually doing regarding its interaction with support and resistance levels. The market will tell you what is up if you listen.
I recommend that newbies watch the market, on 1 min & 5 min bar charts, for a few hours per day for several months. Watch the indicators you intend to use, and observe how they behave when normal things happen and when strange things happen. Then apply those lessons to tiny real trades (0.01 lots). You have to learn to recognize patterns and read intentions from how the market moves, and there is no way that can happen IN REAL TIME without experience.
Good luck!