About to Enter the World of Forex Trading

felinco

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Hello
I am about to enter the Forex trading world but I am a novice and seriously considering how to start, where to start etc...

I live in Birmingham UK. I will like other experienced traders to share their experience with me especially when they started etc...

I have collected some good information on the net, but I feel I need to know more....
Maybe I am just a bit too careful in starting this....
Any simple tips for a newbi like myself is highly welcome.

Thanks.
 
There is so much to learn, and yet so little of it will figure in what becomes your trading edge. You might even find an inverse correlation between your learning and your profits until that Eureka! moment we probably all go through, even perhaps without knowing.

You should aim to find a style/market/time frame that suits your own tolerances/preferences, and this is probably best done through trial and error and practice. Then develop a trading edge based on all you learn that again suits your own tolerances/preferences. make it yours, and get to understand it,...it's general characteristics and peculiar idiosyncracies as well as it's strike rate over any given sensible sample of times it set-up. (Remember that your trading edge is, to paraphrase Mark douglas; '... nothing more than an indication of a higher probability of one thing happening over another.' Once comfortable with it, trade it with impunity.

Remember too the fundamental truths of trading (from the same author)

The 5 Fundamental Truths of Trading:

1. Anything can happen.

2. You don’t need to know what is going to happen next to make money.

3. There is a random distribution between wins and losses for any given set of
variables that define an edge.

4. An edge is nothing more than an indication of a higher probability of one thing
happening over another.

5. Every moment in the market is unique.


and his 7 Principles of Consistency:

1. I objectively identify my edges.

2. I predefine the risk of every trade.

3. I completely accept the risk or I am willing to let go of the trade.

4. I act on my edges without reservation or hesitation.

5. I pay myself as the market makes money available to me.

6. I continually monitor my susceptibility for making errors.

7. I understand the absolute necessity of these principles of consistent success
and, therefore, I never violate them.

Personally, and with the benefit now of hindsight if I had to start again and choose the essential elements to study for a technical trading edge they would be

a. Price action, - both overall to determine trend, and individual as the trigger to market entry.

and

b. Support and Resistance.

c. Risk/Probability

These are the constants across any market and any trading class. You can add in indicator techniques such as oscillator divergence if you feel it will give you a better edge.

Keep reading, read about your chosen subjects and more widely re trading. Keep practicing, no time sepnt at the screens is wasted. Stay positive. Set yourself realistic goals and definate time periods in which to achieve them. Keep a log/journal-constantly review it-learn from it. Don't believe the nay-sayers, find out for yourself. This board/forum (and others like it) is 99% nonsense with 1% gold....you just have to look to find it. You'll get the background, ...the foreground is down to you.


Good luck with your journey.
 
The learning cycle never stops. I am now nearing my 77th birthday and I thank Heaven that I have this interest and that my brain is still able to get down to it. Always something new, though, even it is only trying to get around the latest software.....

Split
 
There is so much to learn, and yet so little of it will figure in what becomes your trading edge. You might even find an inverse correlation between your learning and your profits until that Eureka! moment we probably all go through, even perhaps without knowing.

You should aim to find a style/market/time frame that suits your own tolerances/preferences, and this is probably best done through trial and error and practice. Then develop a trading edge based on all you learn that again suits your own tolerances/preferences. make it yours, and get to understand it,...it's general characteristics and peculiar idiosyncracies as well as it's strike rate over any given sensible sample of times it set-up. (Remember that your trading edge is, to paraphrase Mark douglas; '... nothing more than an indication of a higher probability of one thing happening over another.' Once comfortable with it, trade it with impunity.

Remember too the fundamental truths of trading (from the same author)

The 5 Fundamental Truths of Trading:

1. Anything can happen.

2. You don’t need to know what is going to happen next to make money.

3. There is a random distribution between wins and losses for any given set of
variables that define an edge.

4. An edge is nothing more than an indication of a higher probability of one thing
happening over another.

5. Every moment in the market is unique.


and his 7 Principles of Consistency:

1. I objectively identify my edges.

2. I predefine the risk of every trade.

3. I completely accept the risk or I am willing to let go of the trade.

4. I act on my edges without reservation or hesitation.

5. I pay myself as the market makes money available to me.

6. I continually monitor my susceptibility for making errors.

7. I understand the absolute necessity of these principles of consistent success
and, therefore, I never violate them.

Personally, and with the benefit now of hindsight if I had to start again and choose the essential elements to study for a technical trading edge they would be

a. Price action, - both overall to determine trend, and individual as the trigger to market entry.

and

b. Support and Resistance.

c. Risk/Probability

These are the constants across any market and any trading class. You can add in indicator techniques such as oscillator divergence if you feel it will give you a better edge.

Keep reading, read about your chosen subjects and more widely re trading. Keep practicing, no time sepnt at the screens is wasted. Stay positive. Set yourself realistic goals and definate time periods in which to achieve them. Keep a log/journal-constantly review it-learn from it. Don't believe the nay-sayers, find out for yourself. This board/forum (and others like it) is 99% nonsense with 1% gold....you just have to look to find it. You'll get the background, ...the foreground is down to you.


Good luck with your journey.

Thank bbmac, nice post
 
Great Stuff

There is so much to learn, and yet so little of it will figure in what becomes your trading edge. You might even find an inverse correlation between your learning and your profits until that Eureka! moment we probably all go through, even perhaps without knowing.

You should aim to find a style/market/time frame that suits your own tolerances/preferences, and this is probably best done through trial and error and practice. Then develop a trading edge based on all you learn that again suits your own tolerances/preferences. make it yours, and get to understand it,...it's general characteristics and peculiar idiosyncracies as well as it's strike rate over any given sensible sample of times it set-up. (Remember that your trading edge is, to paraphrase Mark douglas; '... nothing more than an indication of a higher probability of one thing happening over another.' Once comfortable with it, trade it with impunity.

Remember too the fundamental truths of trading (from the same author)

The 5 Fundamental Truths of Trading:

1. Anything can happen.

2. You don’t need to know what is going to happen next to make money.

3. There is a random distribution between wins and losses for any given set of
variables that define an edge.

4. An edge is nothing more than an indication of a higher probability of one thing
happening over another.

5. Every moment in the market is unique.


and his 7 Principles of Consistency:

1. I objectively identify my edges.

2. I predefine the risk of every trade.

3. I completely accept the risk or I am willing to let go of the trade.

4. I act on my edges without reservation or hesitation.

5. I pay myself as the market makes money available to me.

6. I continually monitor my susceptibility for making errors.

7. I understand the absolute necessity of these principles of consistent success
and, therefore, I never violate them.

Personally, and with the benefit now of hindsight if I had to start again and choose the essential elements to study for a technical trading edge they would be

a. Price action, - both overall to determine trend, and individual as the trigger to market entry.

and

b. Support and Resistance.

c. Risk/Probability

These are the constants across any market and any trading class. You can add in indicator techniques such as oscillator divergence if you feel it will give you a better edge.

Keep reading, read about your chosen subjects and more widely re trading. Keep practicing, no time sepnt at the screens is wasted. Stay positive. Set yourself realistic goals and definate time periods in which to achieve them. Keep a log/journal-constantly review it-learn from it. Don't believe the nay-sayers, find out for yourself. This board/forum (and others like it) is 99% nonsense with 1% gold....you just have to look to find it. You'll get the background, ...the foreground is down to you.


Good luck with your journey.

Dear Sir

Thank you for your time and insights. I am going back into Forex after a 4 month hiatus to regroup and learn more after losing my initial 2k investment. Your thoughts are right on. Keep up the good work

Kindest Regards

Jacksrrr :) :
 
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