New to trading

[Lech82]

Hi guys,

Am still only learning on the demo account and wanted to share my understanding, get some advice, opinion if am on the right track,

From all the reading and watching people posting beginners videos on YouTube, have to say there is lots of **** around. Am interested in forex - spread bet. As a beginner was asking myself few questions, main: how much money will i need to switch for the real money. How much per trade etc. Watching videos and some people say: “with small acc you need to risk more, to build up quicker” what a ****, impossible, etc etc, so much wrong information. Lucky everyone got his own brain.

Learned so far:

-          Focus on major fx, keep low spread, trade in the morning

-          Risk up to 2% per trade,

-          Look for pairs at the support or resistance,

-          Check and confirm the trend on 1hr and 15min charts (got also open 5/1min and 30tick)

-          Start with stop loos, checking how much I can afford on my excel spreadsheet, will upload it as well,

-          Check risk reward ratio, need to be able to pass 1:2,

-          no limit, let it go and fallow with stop, need to be able to determinate the limit or don’t trade

With my spreadsheet it’s physically impossible to risk more than 2%, only if you won’t place stop loss (or slippage) also shows required margin and proves that there is no way to be able risk 50% etc, as some people are saying.

https://synowkaprojects-my.sharepoint.com/:x:/g/personal/lech_sprojects_uk/EYlJyWi2kGxGsd2SqXS5aFIBX_1Wxly4kCUjF5ENzi0o7w?e=Z76Ocd

Now learning:

-          psychology     

-          correlation

-          candles and patterns, moving averages, stochastics, fibonacci

Could you guys please advice on some good trading course or books to continue my education.

Please also check my spreadsheet, it’s for acc from 1 to 10k, live data from x-rates, just change the capital, now am working my journal, where I will have to go through the steps and tick all of, check, check, confirmed, then trade etc. Will set my demo on 1k and see how it

 

In my opinion the best way to start trading is to learn, start with 1k for 6 months to 1 year, survive 1 year,  increase to 2k for another 6 months and then go forward.

[Caseynotes]

That's right @Lech82 the new margin requirements severely curtail the amount of risk you can take on and slow the growth rate of an account (or slow the demise of an account). And as risk is defined by your stop loss so it also limits which trades you can take if the size of the stop is just too big.

Stick to the majors for sure but I would start with just one or two and get to know them real well.

As for 2% of account size to risk on one trade, start off on the minimum £/point the platform allows and work your way up to 2%.

Yes, check on trend direction on the higher time frames, be wary of going against them.

Look to find one or two setups that you can practice over and over to get good at.

It's also not a bad idea to place a profit limit to start with and just concentrate on entries, in-trade management can take a while to learn. 1:2 set and forget is not a bad way to go until you know your market better.

Cred's study guide is a good all round trading guide for beginners.

https://drive.google.com/file/d/1UJBLRa9Sh0PZ0vL_wI9uDVbIRxVUdazE/view

[Lech82]

Thank you @Caseynotes

Will fallow your advice and thank you for materials.

Will go for USD/JPY and GBP/USD, good pairs in your opinion?

Will also change from £/p to p/p and use 1/p, will be easier and cleaner to learn.

Thank you

 

[Caseynotes]

@Lech82, no problem, usdjpy is a good choice as it is generally well behaved compared to the others. gbpusd is certainly more exciting, especially given the current brexit tennis match, as those nasty spikes on your chart show. Might be worth keeping an eye on eurusd as well if gbp gets a little too unruly. 

[Lech82]

Hi Guys

See attached pic and give an opinin,

 

Thank you

[Caseynotes]

Interesting @Lech82, you've elected to go short and go against the longer term prevailing trend which has been bullish since the start of the year though your target is reasonably modest so not looking for a major reversal just a deeper pullback and your stop is tight so damage will be light if price swings back up.

You look to be hoping the stochastic will remain in oversold though it has already been there for several hours, I would rather have it aligned so that there was a whole stochastic down leg looking forward to carry my trade with it.

It may work out for you, anything can happen after all, though I suspect there are many more traders waiting for the current pullback to end to go long with trend continuation.  

Best of luck.

[Lech82]

HI @Caseynotes

Yes, that's one of my bad habits to loose, but let's wait and see when us opens, hopefully i will last till then.

I've updated a bit.

Edited January 28, 2019 by Lech82

[Lech82]

Ah,

 

To tight on the stop, i've risked 0.8% of portfolio, should go 2%, take 50% profit on 13156, problem with going £1/p am not able to reduce in the time of trade. Will learn

It will be my first journal note, will post it later,  

Now need to wait for long