Historical data analysis

Tarde4Fun

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Hi

I am new to trading and with a demo account for the last one month.
I have made and lost in FX and FTSE 100. I have downloaded historical data for a month. But not sure what to do with it.

Please can you some one share thoughts and links to proceed further to form a simple strategy ?

Thanks in Advance
Happy Learning & Trading
 
Try paper trading or online trading simulators first. All major broker websites have paper trading features.
 
Historical data isn't going to give you any benefit. Stocks are driven by account earnings, debt, business investment, M&A, and other such factors. Forex is driven by economic data points, interest rate expectations, risk on and off driven events (emerging markets and safe haven flows), central bank policy, and commodities for some currencies. You cannot trade off charts alone. The investment banks don't do this, hedge funds don't, pension funds don't, and all professional independent traders don't. For every successful chart pattern you show me I can show you 10 or more that fail. The only way to become good at this is to account for market driving factors and trade them like other market participants. If you wish to trade off the charts alone, then you are going to need to be very strict on your money management. That being said I doubt your profits would be anything more than small as the failed trades would eat away at most of it and give up after enough time has passed to make you realise this isn't working.
Technical analysis is wonderfully fun and we all love it. In real terms it should be the last thing you look at when making a trade and should only account for 5 percent of your overall effort. If you are adamant that you intend to trade off charts alone then only look at large time frames using a trend following strategy. This will give you the best chance of inadvertently catching trends in the markets cyclical nature. My advice however is to do what all other successful participants do and learn how to read market driving factors. Your profits will be larger and you will become a better trader than trading off charts alone
 
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