To all of you experts and well intended members, I have now spent hours reading threads on Forex trading and I am at a point of a "paralysis through analysis" state of mind. So, what would be a basic approach that one can build on? Should I just subscribe to a signal service and an automated execution platform that show a history of positive/honest results? Some of you seem like you enjoy the manipulating data/theories, systems etc. NOT ME! I would prefer to narrow it down to a few pairs, stick to a few indicators and focus most of my mental/emotional energy in entries and exits. So is there room for a mortal with limited cerebral inclination to make a profit in this field? I am not sure anymore .....YOU TELL ME.
Thats all I do. I just concentrate on the USD/EURO and use 3 indicators. Whle occasionally, I can pick a bigger move (50+ pips), most of the time it is just 5 to 20. Don't ignore system developement though. It provides the base you need to trade sucessfully.
Well, thank you. Maybe I am not that far off. As far as a system are you referring to an consistent way to choose/evaluate my entries and exits? or more? Which are the most popular indicators? Do you use stop loss? a signal service? I appreciate your feedback
I'm not an expert, but my comments are well intentioned. Working with the buy support/sell resistance idea, look at S/R levels as defined by trendlines on swing lows/highs, 50/100/200 EMAs, and Fibonacci retracements on relatively high timeframes (30 min, 60 min, daily, weekly). I find candlestick analysis helpful as well. Remember Occam's Razor. Regards,
Thank you Jangofolly. Have you had success with that system. Perhaps sticking to one that fits your temperament/goals and executing is the best approach. That seems to be the consensus. Wish you and all of you who have taken the time to reply many succesful trades. Why not? There is plenty to go around right?
I'm definitely not an expert. A simple strategy you can use is a moving average crossover. When the price crosses above or below your moving average then that's a signal. It's not necessarily your trigger though. You need to find something else as your trigger. Like maybe a candle formation or a pull back to the moving average, or a fibonacci retracement. Good Luck
There's nothing magical about S/R areas; they tend to work because enough traders believe the same thing (and I think they work better in forex than in other markets). S/R levels will be broken, however, and that's where your money management skills and listening to the market over your own analysis come into play. I find that approach highly reliable, but I'm a better analyst than I am a trader. It's not all that hard to understand the technicals of making money. What's really hard is overcoming fear and greed and using those techniques successfully to make money on a consistent basis (something I'm still working hard to learn). I certainly don't know for sure, but I would guess that most of the highly successful discretionary TA traders on ET have relatively simple rules for trade entries/exits. It's their experience, money management, and humility that put dollars in their pockets every day. Regards,
Thanks Jango, I am doing demo at Oanda. I want to be really sharp with execution before I tackle "real money" issues. I have more or a trader mentality than analyst. At Oanda there is a trader who has a very informative system of trading the news. You may want to check it out. It is under Novice Trader. I am going to demo his approach.
one could take a baby step approach to in size of position while trying out various methods , indicators , time frames , major pairs , etc trade small using real money ... small enough so it does not hurt you too much if you lose while you decide if FX makes sense for you. good luck