Next Step To Trading

[ForexLobbster]

Hello everyone. Today I have decided to take my next step in trading. I want to become a part of a trading community! I would say that I have moderate experience in the forex markets but I am missing one thing. A strategy. I have been able to use some knowledge from indicators and moving averages to clear my view of trading. I would just like some feedback on how to create a strategy. What does a strategy consist of? How I could make one and execute it. Also wondering if someone can show me the ropes to back testing. I have heard it is very useful

 

[HeavLeighGill]

Hello and welcome to the community!

 

[Smith2525]

A strategy could be something like 2-3 indicators lining up on your chosen timeframes combined with some technical analysis.
You write the rules and if all indicate buy/sell, you execute the trade. Apply risk management.

 

[taylorarnold]

Hi. Before figuring out what your strategy should consist of, you should have full knowledge of forex analysis, whether its fundamental or technical analysis. Directly aiming for a strategy can be confusing. Once you have understood what you prefer, you can easily create your strategy. I’d also suggest you take help from youtube and babypips to understand technical concepts. Meanwhile, learning these concepts, implement them on a demo account.

 

[Farm Yard Forex]

I would also suggest considering your time constraints. There is little point in setting your sights on a scalping strategy when your time availability means you can hardly be sat at the charts.

 

[Melodiousmelody]

Welcome to the community. Hope you know the risk when it comes to trading. All the best

 

[sharonj]

Hey newbie, build your exit strategy even before you decide how you would enter the market. Exiting the market at the right time can help you save your money for future trades.Always make use of stop loss and take profit to trade safely.

 

[Kaleb Rogers]

Hey, welcome to the community! The best piece of advice that I would like to give is to never complicate your strategy. You will have to take risks but they should never go beyond your risk appetite. Take only those steps that you can understand and handle.

 

[jonahelen527]

Hi, Welcome to the community.
If you are struggling to build your trading strategy I'd suggest you learn price action and using indicators for confirmation. It will help you build a strong foundation. There are many books and courses that are dedicated to price action, I'm sure you'll be able to learn it.

 

[Susana Vecoli]

Hi, welcome! When it comes to building a strategy, you must keep your trading goals in mind. If you know where you want to reach, you will pave your way in the right direction. But if you are trading just for fun, chances are you may not do well at it.

 

[Jasonn]

Take a plunge if you really want to know what it is and what needs to be done. With your own experience, you will know what is happening and how you can take advantage of your skills and what needs to be included in your strategy.

 

[ackleselden]

A demo account would help you a lot in building your trading strategy. Once you are through your basic learning, apply different strategies on the demo account. You may also change the variables to see what works for you. A strategy should not be anything beyond your understanding.

 

[rickhobbsonce]

@ForexLobbster Hey! Welcome to the community. I'd suggest you identify your trading style before picking any trading strategy.

 

[andrewborund597]

Hello everyone. Today I have decided to take my next step in trading. I want to become a part of a trading community! I would say that I have moderate experience in the forex markets but I am missing one thing. A strategy. I have been able to use some knowledge from indicators and moving averages to clear my view of trading. I would just like some feedback on how to create a strategy. What does a strategy consist of? How I could make one and execute it. Also wondering if someone can show me the ropes to back testing. I have heard it is very useful

Hey! Welcome to the community. I think you should analyse your trading style before choosing a trading strategy. You can do it by analysing your personality, your preferences, whether you want to trade long-term or short term, and what your risk tolerance is.
Then pick a strategy accordingly and work on it.

 

[tomorton]

Hey! Welcome to the community. I think you should analyse your trading style before choosing a trading strategy. You can do it by analysing your personality, your preferences, whether you want to trade long-term or short term, and what your risk tolerance is.
Then pick a strategy accordingly and work on it.

I agree, style is key.

That said, I go further and also recommend not using the same style as most new traders, since we know statistically that most new traders lose much or all of their money quite quickly. Most new traders trade counter-trend reversals on intra-day time-frames. They might have found or developed the very best strategy for doing this, but it won't work for them, the style is too demanding.

 

[alexwinkler]

If I could add my 2 cents, I'd say remember the grass is always greener...

Find a strategy that makes sense to you and stick with it for at least 6 months before even considering trading another strategy. Even long-time professional traders will often make all their profits just from one simple strategy. The second you throw something else into the mix your mind is no longer scanner for that one perfect setup but is starting to think maybe it's kinda this strategy, let me try. Slippery slope.

Your goal is to master one strategy first and MAYBE only then add another.

Good luck 🍻

 

[Gracy2]

Next step to trading should be lots of practice and discovering what suits one's style. There can be hands on trying different Forex pairs to discover and explore.

 

[Jorg@33]

Next step to trading is to work on improving your strategies with every new trade, and learn from your own experiences.

 

[MonkeyMike]

Hello everyone. Today I have decided to take my next step in trading. I want to become a part of a trading community! I would say that I have moderate experience in the forex markets but I am missing one thing. A strategy. I have been able to use some knowledge from indicators and moving averages to clear my view of trading. I would just like some feedback on how to create a strategy. What does a strategy consist of? How I could make one and execute it. Also wondering if someone can show me the ropes to back testing. I have heard it is very useful

What was the first step? Could you share please

 

[charles2]

Master

1. One Currency Pair.
2. Watch one time frame, at FIRST
3. No indicators on your screen at all. They are all with exception to one Lagging. i.e. they tell you where you have been. not where you want to be in the future.
4. Follow the candles, watch the waves being painted on the screen, important watch for recurring wave patterns (which eventually will be part of your trading edge)

5. Once you can see the recurring wave patterns in your chosen time frame on screen 1 then turn on, and watch screen 2 same pair and see if you can see the same patterns being painted over a different time frame. and see how the patterns correlate with each other on there separate time frames.

6. Pattern recognition is one of the main keys in trading and the start of Technical analysis.


7. Important, If your in the trading UK ,i would watch the Screens from 7.30am till 3.30 pm uk time that will incorporate euro-uk and start of us open

Without learning and fully understanding 1--7 on a Sim / Demo


Then It would be much to early to discuss the obvious.

Size of account
Backward / forward testing
money management
Position sizing
Stops -targets
News releases
win loss % ratios
etc etc etc

That will come later.


To become a profitable trader without a Mentor is a difficult task and is a journey.
There is a lot of useful information on the internet (also a lot of rubbish) so keep an open mind
Read TA books ,referring back to your screens to see the levels that are being referred to.

But it all boils down to the Strategy the edge, imo once you understand the ebbs and flows (waves) of your chosen pair and see the patterns recurring you are on the way to a profitable strategy. 1--7

But until you have tested and proven your strategy I would not open a live account.


Just my 2 cents.