Hey all New Traders and veterans alike. I've been trading for the past year on a variety of markets and have settled in on the Forex market for its insane capabilities to double my money. I want to start this thread to help new traders who might not have the money to pay for schooling or these trade rooms you see out here. IMO most are useless anyways and just try to teach the basics while keeping you on the hook so they can keep racking in your monthly money.
I'll start with a simple but very effective list of what not to do when you first get into this market or any market. Trading is hard work and takes dedication. Anyone can make it seem like its easy but it only gets easy after you put in all the hard work.
If you're just starting out.
Don't just jump into the market, your inexperience will get you eaten alive.
Don't ever take a trade if you cant explain to a 5 year old why you're taking it. Self explanatory.
Don't listen to everyone and anyone about how they trade or what they trade. You'll fall into the bouncing back and forth pattern and lose your ass.
Don't get discouraged, its like you were in elementary trying to learn your ABC's or when you first started to walk as a baby. If you quit then you wouldn't be walking or know how to read. DON'T give up.
Don't try to take on the market.T ake what you can and give the rest back. Haha.
Now for the to do list
If you were to go to another country and try to learn there language wouldn't you try to learn the alphabet first? How to count first? How to form basic sentences? Then move on to forming more complex sentences and holding an actual conversation?
Its the same with the market you choose.
1) Learn how to read a chart and what type of chart setup you like, if you can't understand what you're looking at, you'll be lost just listening to others.
2) Learn the terminology of the market so you can understand what you're reading and looking at in posts or websites.
3) Try to start disciplining yourself in other aspects of your life so when it comes time to start trading you can more easily apply that discipline to this area too.
4) Actually learn about risk management and trade size. It is very important to know how to manage your money in your personal life so why wouldn't you apply the same thoughts to your trading? You wouldn't just go out and buy a brand new car only on credit if you couldn't afford it so why do the same thing in your trading.
5) Pick a platform, make a demo account and get very familiar with it and your broker. Place trades, Put indicators on the chart, move things around, look up tutorials on how to use your platform effectively. Get USED TO IT. Its like driving a brand new manual Charger with 500 horses and don't even know how to use it.
6) After you get all this down, start learning about PRICE ACTION, PRICE PATTERNS, CANDLESTICK PATTERNS, SUPPORT AND RESISTANCE LINES/AREAS, KEY PIVOT POINTS/ROUND NUMBERS.
7) If you're in the FOREX market and trade only the technical s but totally ignore the Fundamentals. You're going to lose your ass.
Thats like deciding to go to the beach today but didn't mind to check the weather and it starts storming the minute you get there.
In forex you can't just trade technicals. You need to atleast acknowledge both and plan accordingly. Its just as important of a skill to know when to stay out of the market as when to get in.
Thats all for now guys. Its the weekend, I'm hitting the gym and going to the pool Have a good one and prepare to catch a few pips.
I'll start with a simple but very effective list of what not to do when you first get into this market or any market. Trading is hard work and takes dedication. Anyone can make it seem like its easy but it only gets easy after you put in all the hard work.
If you're just starting out.
Don't just jump into the market, your inexperience will get you eaten alive.
Don't ever take a trade if you cant explain to a 5 year old why you're taking it. Self explanatory.
Don't listen to everyone and anyone about how they trade or what they trade. You'll fall into the bouncing back and forth pattern and lose your ass.
Don't get discouraged, its like you were in elementary trying to learn your ABC's or when you first started to walk as a baby. If you quit then you wouldn't be walking or know how to read. DON'T give up.
Don't try to take on the market.T ake what you can and give the rest back. Haha.
Now for the to do list
If you were to go to another country and try to learn there language wouldn't you try to learn the alphabet first? How to count first? How to form basic sentences? Then move on to forming more complex sentences and holding an actual conversation?
Its the same with the market you choose.
1) Learn how to read a chart and what type of chart setup you like, if you can't understand what you're looking at, you'll be lost just listening to others.
2) Learn the terminology of the market so you can understand what you're reading and looking at in posts or websites.
3) Try to start disciplining yourself in other aspects of your life so when it comes time to start trading you can more easily apply that discipline to this area too.
4) Actually learn about risk management and trade size. It is very important to know how to manage your money in your personal life so why wouldn't you apply the same thoughts to your trading? You wouldn't just go out and buy a brand new car only on credit if you couldn't afford it so why do the same thing in your trading.
5) Pick a platform, make a demo account and get very familiar with it and your broker. Place trades, Put indicators on the chart, move things around, look up tutorials on how to use your platform effectively. Get USED TO IT. Its like driving a brand new manual Charger with 500 horses and don't even know how to use it.
6) After you get all this down, start learning about PRICE ACTION, PRICE PATTERNS, CANDLESTICK PATTERNS, SUPPORT AND RESISTANCE LINES/AREAS, KEY PIVOT POINTS/ROUND NUMBERS.
7) If you're in the FOREX market and trade only the technical s but totally ignore the Fundamentals. You're going to lose your ass.
Thats like deciding to go to the beach today but didn't mind to check the weather and it starts storming the minute you get there.
In forex you can't just trade technicals. You need to atleast acknowledge both and plan accordingly. Its just as important of a skill to know when to stay out of the market as when to get in.
Thats all for now guys. Its the weekend, I'm hitting the gym and going to the pool Have a good one and prepare to catch a few pips.
Gentlemen always play by the rules, if they can't, they change them.