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New To Forex and Need Advice!

Quoting Albert.C
Just to share with you my experience. I started 2 months ago, and I already lose 7000. Why? 1. Emotion/Impulse trading 2. Following others without analyzing the chart 3. Over trade (This is the main reason why I lose so much) My account was 8000, and I opened 1 lot for the trades, and for many trades that went against me I didn't bear to let them go so I hold on to them hopping the trade would go differerent direction, untill the loss was too high and I was forced to close it. 2 months down the road, I lose 7000 dollars. And I'm very lost right...
There is a very easy way to recover when market moves against your position. This method is not for news trading. For example you enter short position and you place your stop loss. And then all of a sudden price reverses against you. Don't panic. Set pending order ( Buy Stop order ) at the same price of your Stop Loss. Then relax. In this way you're hedging using" Pending Order". If the price is so serious to trigger your SL, then as soon as you SL is triggered, Bullish trade takes off from your pending order price. You can have same lot size or increase it. In my case I increase the lot size and make much more than I lost in that trade. Anyone who doesn't fully understand should let me know. Maybe I come in full detail. The strategy is really rewarding.
Can i asking something too..
 
Currently im trading my demo account on mobile platforms and recently i notice that all pairs have additional code.."m","f","k"
For example: EURUSDm ,  EURGBPf , EURGBPk etc
Whats the meaning of those additional
For those who PM on how I hedge, I decided to add my EURCAD last position to show you. The opposing setup must be strong enough to inform me to hedge. You would see that two days after my entry a strong long position was formed on daily chart, the strong Pinbar/Dragonfly supported by strong Bollinger Lower Band breakout. For those who use Bollinger Band and know what pinbar can do would understand more. I did not close the position. So I placed Buy Stop order at the same SL price. As soon as the SL was triggered bullish trade picked up. I used the resistance to set my TP, over 300pips. I do not hedge every position. I must see that the setup really invalidates my earlier position and is ready to trigger my SL. I don't place order and hedge it at the same time. I hedge it later when it's against me with strong setup. I hope the chart will add more information. Happy trading guys.
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Quoting E300
Hello Forex Factory members, I just started trading Forex about 2 months ago and the past 2 weeks I started trading seriously on a demo account. (Feel free to check out my results) And well I don't know where to start. I love math so I understand risk formulas. My Goals this week are : Learn how to use/make trend lines Learn Order blocks/Order Flows Learn about other people's simple strategies As of now I trade through a few EMA's and other indicators, It's looking good but I'll share my strategy when I have a little more confidence in it. If you...
You can find all necessary information on John Murphy's "Technical analysts Bible". I used it in the past but real technical analysis implies much more complicated stuff than author describes. But as a jumpstart for building your own strategy it should be perfect choice.
1. study forex strategies (there are tons out there).
2. determine your forex screen time, meaning amount of time you want to spend trading (scalp, swing, position trading).
3. based on your studied strategy, select the best suited to your screen time.
4. backtest your strategy.
5. demo for forward testing.
6. go for Live account.
Quoting Arkateyah
1. study forex strategies (there are tons out there). 2. determine your forex screen time, meaning amount of time you want to spend trading (scalp, swing, position trading). 3. based on your studied strategy, select the best suited to your screen time. 4. backtest your strategy. 5. demo for forward testing. 6. go for Live account.
Following are the basic principle of trading which must be followed by any new trader in market. Staying in this market is not always going to be easy but we can improve are trading with discipline and maturity.
please download first this link
http://forexwinners.net/forex/steve-...-stick-charts/
http://forexwinners.ru/forex/rahsia-bbma-oma-ally/
and then see this link
http://www.forexfactory.com/showthread.php?t=605011
Follow price direction
Don't just walk away .... run
we must know the state of the market tradng well, then that's the update on news from the market, in order to take advantage of the good moment, with the SL we can manage risk so as not to be a big loss
Quoting mlawson71
{quote} That's what the stop loss is for. In the worst case scenario one can call their broker by the phone and ask them to close their position manually.
I used dabble in the stock markets a while back, granted it was only using a demo account. I quickly found that stop losses are very important when wanting to stay on top of money/risk management.
When you start with a live account start with a small lot size like .01 and have enough deposit so that you can seriously trade. Anything under $1000 deposit is a waste of time if you trade with a small lot size you can afford to make mistakes while you are learning
Quoting AntiVi
{quote} If you have a strategy test it on historical data for at least 100 trades per strategy per pair per time frame per time slot (aka the time that you'll be trading at example: during the London session or simply from 3pm to 5pm).
How do you test strategy on historical data? I hear that a lot, but no idea on how to do that. Do you have to write trading algos?

ps: First message here
Quoting E300
Hello Forex Factory members, I just started trading Forex about 2 months ago and the past 2 weeks I started trading seriously on a demo account. (Feel free to check out my results) And well I don't know where to start. I love math so I understand risk formulas. My Goals this week are : Learn how to use/make trend lines Learn Order blocks/Order Flows Learn about other people's simple strategies As of now I trade through a few EMA's and other indicators, It's looking good but I'll share my strategy when I have a little more confidence in it. If you...

Well there are no certain recommendations on drawing lines or reading order flow. There is nothing universal in trading, sometimes traders can trade opposite strategies and earn profits. Read forum and try to make conclusions following simple logical and based on something fundamental like Supply and Demand. Don't remember to backtest your ideas in MT4 to see if they have a right to live.
Following somebody other advices is not best way to learn because you have to obtain core understanding of what you are doing if you want to progress not swimming helplessly in the ocean..
Quoting fcaldas
{quote} How do you test strategy on historical data? I hear that a lot, but no idea on how to do that. Do you have to write trading algos? ps: First message here
Sorry for the late reply but to test something you can just download the historical data from your broker or trough the trading platform Then you can scroll back in the data and either do it manually or write an EA to do it for you.
Keep in mind that an EA can't do all strategies since some strategies depend on you making the decisions and sometimes a robot can't do that.
Quoting mozart4646
When you start with a live account start with a small lot size like .01 and have enough deposit so that you can seriously trade. Anything under $1000 deposit is a waste of time if you trade with a small lot size you can afford to make mistakes while you are learning
Great point. Just to add for all of new traders some brokers offer less than .01 lot and as low as few units to trade. In addition, bonuses on deposits can be in line with deposits amount or higher. Still would recommended hedging and trying all strategies on smaller amounts to figure out the kind of trader you are. You can ask by email about them or here. With about 100 margin and only $1 in deposit one can have 100 units, say 5 units in 20 various pairs and with about $100 one can get many strategies. Wish you a success and not overreacting to various instincts. P.S. Probably, everybody new to trading in some ways as always something to learn.
Hi, I am in a very similar position. I have recently ( last few months started to trade ) I have no background in trading / finance, I have lost money, but determined to make it work. I have over traded, and it has payed off short term, but over the last few months I am down, by a reasonable amount to me. I have tried different strategies, but still haven't formed any thing solid. I trade on a micro account, I did try demo for a week or 2, and felt that a real account is the way forward without any understanding. A micro account is good, as you can trade with such a small lot, I've done trades for only a couple of cents loss / profit. I'm happy to loose a little in exchange for learning and experience. I do have a much better idea now, however, I still need to make it profitable.
My advice ( from what I have learnt in my very short time )
stop loss, very important - Placement of stop loss even more so - Something I have not worked out yet.
Resistance & support - For me again, I am still learning, but this is what I base my TP, or SL on. These seem to change based on the time frame chart.
Don't open to many trades - I have had lots of trades, but you can quickly run out of equity with to many open trades.
You will not win them all, relax, don't panic, if it hits your stop loss, so be it.
Knee jerk reaction. I have lost a fair bit on an impulse or panic reaction.
Before placing a trade, look at the pair in a different time frame, some times they look fantastic, but when you switch to another time frame they look terrible.
I have traded across all time frames, I like short term, and have done ok from them, but I am now focusing on 4hrs based on what I have been reading for the easiest to use. Sadly, its not working for me yet.

I am hoping I may find a mentor, but I am skeptical about who "thinks" they are good. I do what some one to show me, but I am worried that I will learn even worse bad habits to what I have now.

At least if I loose my money, I only have my self to blame.

Good luck, I hope we can both be successful.
I really need this to work, as at the moment I have no work, and things are not looking any better for the new year. I need to pay the bills, and hope this is the way forward.
Thanks for reply many of us went through that. Did go as many traders through a lot like you in earlier years and still talk about stop-loss. Yes all of us would like to think they are good. Btw, good luck of course. Interesting how and when new trader becomes more professional and that transition can be "awesome" hopefully as say in US. The truth is if someone is good, emotions and DNA of people are different, which comes into play. So there are things and notes on some steps that can be useful for new or non-new traders. Love to be in touch with some of you and see what you can input too. Would say before discussing these points get comfortable with at least 2-3 brokers and narrow down the list over time, so you move forward later on and do not have regrets about other things and details coming out from this decision. Demo with a broker is also a decision, do not have to be live account and hunting for every deposit bonus, promotion, but some are worth it.

1. Stop-loss is a good idea but there are other ways to manage that and think about besides obvious ones. Think how much of overall deposits per month year/relative to income you put in Forex/CFD/commodities/indexes (some brokers in Europe, Australia/Oceania, Asia offer it unlike in US) in trading and make a stop-loss there.
For example, if you earn 1,000 in some period in non-trading make 5% stop-loss rule that you cannot lose more than 5% or whatever during that period or cannot deposit more than 5% of that amount into any trading. Sort of stop-loss of stop-loss.

2. Basket trading spreads the risk and whole new subjects. Sort of hedging of hedging. If one can have bond, oil, various currency pairs with a minimal lots or even a fraction of that it is a good strategy to. Some brokers give you the right to get only 1 oil or bond and in margin calculation it may take less than $1 sometimes. In less than $10 you can have positions in commodities, bonds, currencies, CFD and so on. Kind of micro of micro-lot. Again, traders and friends across continents that in touch with have various margins, but many unaware that brokers exists that do give options like that. You can give email to chat about it and forums here are very good at covering them in anycase in brokers and other sections.

3. Hedging and Meta Trader allows it in many cases is another possibility. Stop-loss described earlier is hedging in itself. Rollover and interest rates sometimes make hedging irrelevant, so try to hedge pairs as AUD/USD, NZD/JPY and so on, but it is suited differently to various people.

4. Use the deposit bonuses accounts to try different platforms and instruments and ones that allow it to do with few hundred dollars or even less. (Just like in credit cards they have cashbacks or introductionary offers that help overall)

5. Look for refer a friend or holiday deals in brokers and used this to some degree while if you are referred than get a better deal as newcomer, so can be helpful there too may be. Now is actually a good time with deals as no deposit bonus or whatever. Just do not do too much of them, not to be overwhelmed.

6. This one is overlooked, but manage the time and it may sound simple. First, figure out the best session times (North American, Oceania, Asia, Europe). Second, look at movements in pairs and at what times it usually happens. Third, ask yourself how much trading hours should be putting and what suits you on daily basis or whatever time schedule you have. Basically with control of time comes controlled decisions.

7. May be the most important or interesting is not to loose it but save it when have profits. Otherwise, unrealized profit is double lost. You spend energy, achieve it through eyes being tired, stress and hope do not make strange decisions all of a sudden. Basically grab the opportunity when it is there.

Might not actually follow post for a while during holidays, but try to. Happy holidays and do not spend all the money on girlfriends, cars and so on. Just joking, get sport car anytime. On a serious note, Happy New Year.
In doing forex trading business we can do a study first before plunging into account realnya, and which will remind that risks will occur, if they do not have knowledge of the maximum will cause could not survive in the forex trading business his
That goes without saying. The trader told he is been already trading for few months and hope had experience with demo accounts before that for a decent time. At some point real account will determine if and how the trading styles fit to someone. Let's say you practice football/soccer or basketball and play for team in practices, but ones it is real competition and game than it is different story. But yes, without practice no point running into it straight away.
Quoting Albert.C
Just to share with you my experience. I started 2 months ago, and I already lose 7000. Why? 1. Emotion/Impulse trading 2. Following others without analyzing the chart 3. Over trade (This is the main reason why I lose so much) My account was 8000, and I opened 1 lot for the trades, and for many trades that went against me I didn't bear to let them go so I hold on to them hopping the trade would go differerent direction, untill the loss was too high and I was forced to close it. 2 months down the road, I lose 7000 dollars. And I'm very lost right...
Sad to hear this bro. If this may help, do you always analyse the market condition first before taking a trade? For example, checking whether a pair is in a trending or consolidation mode across at least two time frames; checking on a higher time frame first and then on a lower time frame (your trade entry/exit time frame). Often if you use only one time frame you tend to get into problems. Trade safe and prosper.

KP
Do your homework, follow the footprints of smart money
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