NEW TRADERS READ [+INFO]
Hi traders. I want to help new traders in their journey, so I am sharing my 8 years experience, hoping helps someone in the road.
We all get excited about the idea of making fast money, a faster financial vehicle, flipping small accounts into big profits, or making trading as our main income. But there are some edges I will talk about through this topic.
Apprentice journey.
Try to learn and connect with the graph.
Besides all the concepts we learn in the road such as:
Fundamental analysis
News
Indicators: macd, rsi, patterns, ema, bollinger bands, etc.
Before Trading.
There are some subjects that you MUST DOMINATE before your journey, otherwise you can find yourself in the "cycle of doom", but is a path most traders suffer.
-Risk management: this is a must for the long road. Never risk what you can't afford.
1% risk to get 3% sounds nice, same for .5% risk to get 1.5%, if you want to risk more I really suggest you to make an altern account where you risk higher %, but is less money. Such as splitting 200usd from your main 5k account.
-Everything is easier in %, and game mode.
Trading is a probabilty game, and we are looking to have a high % ratio.
-Find your strategy according to your personality and test it and STICK TO IT: what type of personality do you have? Are you patient? Can you hold negative balance on the run?
The game name is: bring profit to your bank account and compound, thats it. Do not look for more, or compare profit with other traders. There are many ways and strategies in the market to make profit, but 90% of traders loose capital, or fail. Why do you think is that?
-Always look for a 1:+1 ratio.
Bigger ratios are found in bigger timeframes. How much pips is the bank willing to risk in orther to protect their capital?
-Multitimeframe analysis. Bigger timeframes gives us direction while lower timeframes gives us gaps or edges for lower profit advantage.
-Correlation in pairs. Most of traders say that you should only trade 1 pair at the beginning, but observing correlation and multitimeframe will give you a deeper understanding of whats going on in the market, and what is happening to certain pairs, and their precise direction.
-Time is KEY. Participate only when there is liquidity in the market, New York and London sessions are the best in my opinion, but for some strategies, price retest or accumulation may happen in Asia or Sidney sessions so according to your strategy.
1 ACCOUNT : 1 STRATEGY.
I remember that at the beginning I was learning so many strategies that I ended up mixing all of them, such as doing scalping trades and passing them to intra, or intra to swing.
Every strategy has its own value of risk and lot size according to your account, so do not mix it up, otherwise you will fail and do not even know why you failed, feeling terrible for the loss.
When Trading:
Traders get paid while they wait for their setup.
-Look for the gap that pays your 1:+1 ratio.
In my case: i look for a 30pips:90pips gap in 2H timeframe, with 1D direction, i will give you an example:
Took this trade on Euro, with a 30:90 pips on Thursday knowing that European session will have 2 continous off trading days, being a gap for my target.
-Be aware of D, W, and M support and resistance. Price will reject off from it.
-My strategy and setup gives me 3-6 opportunities during 5 trading days, and I Exit the game if I fail 2 consecutive trades and wait for the next week.
This allows me to prevent overtrading, revenge trading, and protecting wrong trades (I used to open opposite trades to protect the capital or my wrong decission, I really do not recommend this unless you opened a trade by mistake or the worst scenario possible).
After Trading:
-I memo my trades and take note of why I took them.
-I pay myself first. (30% to my bank account, 70% compounding)
-I setup and look for next week possible gaps.
I highly suggest you to get married with 1 strategy, and dominate it, have a deeper understanding, get profit, and then risk or try something else with a minimum part of that profit. Otherwise you will be jumping strategies like I used to do, and will not succeed in the long run.
I am willing to connect and share with people. I hope that this subject helps anybody in his journey, have a good weekend traders, see you soon ! Cheers.
We all get excited about the idea of making fast money, a faster financial vehicle, flipping small accounts into big profits, or making trading as our main income. But there are some edges I will talk about through this topic.
Apprentice journey.
Try to learn and connect with the graph.
Besides all the concepts we learn in the road such as:
Fundamental analysis
News
Indicators: macd, rsi, patterns, ema, bollinger bands, etc.
Before Trading.
There are some subjects that you MUST DOMINATE before your journey, otherwise you can find yourself in the "cycle of doom", but is a path most traders suffer.
-Risk management: this is a must for the long road. Never risk what you can't afford.
1% risk to get 3% sounds nice, same for .5% risk to get 1.5%, if you want to risk more I really suggest you to make an altern account where you risk higher %, but is less money. Such as splitting 200usd from your main 5k account.
-Everything is easier in %, and game mode.
Trading is a probabilty game, and we are looking to have a high % ratio.
-Find your strategy according to your personality and test it and STICK TO IT: what type of personality do you have? Are you patient? Can you hold negative balance on the run?
The game name is: bring profit to your bank account and compound, thats it. Do not look for more, or compare profit with other traders. There are many ways and strategies in the market to make profit, but 90% of traders loose capital, or fail. Why do you think is that?
-Always look for a 1:+1 ratio.
Bigger ratios are found in bigger timeframes. How much pips is the bank willing to risk in orther to protect their capital?
-Multitimeframe analysis. Bigger timeframes gives us direction while lower timeframes gives us gaps or edges for lower profit advantage.
-Correlation in pairs. Most of traders say that you should only trade 1 pair at the beginning, but observing correlation and multitimeframe will give you a deeper understanding of whats going on in the market, and what is happening to certain pairs, and their precise direction.
-Time is KEY. Participate only when there is liquidity in the market, New York and London sessions are the best in my opinion, but for some strategies, price retest or accumulation may happen in Asia or Sidney sessions so according to your strategy.
1 ACCOUNT : 1 STRATEGY.
I remember that at the beginning I was learning so many strategies that I ended up mixing all of them, such as doing scalping trades and passing them to intra, or intra to swing.
Every strategy has its own value of risk and lot size according to your account, so do not mix it up, otherwise you will fail and do not even know why you failed, feeling terrible for the loss.
When Trading:
Traders get paid while they wait for their setup.
-Look for the gap that pays your 1:+1 ratio.
In my case: i look for a 30pips:90pips gap in 2H timeframe, with 1D direction, i will give you an example:
Took this trade on Euro, with a 30:90 pips on Thursday knowing that European session will have 2 continous off trading days, being a gap for my target.
-Be aware of D, W, and M support and resistance. Price will reject off from it.
-My strategy and setup gives me 3-6 opportunities during 5 trading days, and I Exit the game if I fail 2 consecutive trades and wait for the next week.
This allows me to prevent overtrading, revenge trading, and protecting wrong trades (I used to open opposite trades to protect the capital or my wrong decission, I really do not recommend this unless you opened a trade by mistake or the worst scenario possible).
After Trading:
-I memo my trades and take note of why I took them.
-I pay myself first. (30% to my bank account, 70% compounding)
-I setup and look for next week possible gaps.
I highly suggest you to get married with 1 strategy, and dominate it, have a deeper understanding, get profit, and then risk or try something else with a minimum part of that profit. Otherwise you will be jumping strategies like I used to do, and will not succeed in the long run.
I am willing to connect and share with people. I hope that this subject helps anybody in his journey, have a good weekend traders, see you soon ! Cheers.
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