@Shawn set your stop loss at a distance from support and resistance. This is something I’ve been trying out lately by using the average true range and my brokers (fxview, pepperstone) seem fine with it too.
Along with this, try exiting the trade if the price closes below the support low and resistance high. Waiting for the candle to close beyond the SR can make a difference.
Is there any particular time-frame that works best for support and resistance. FYI I’m speaking in reference to scalping.
Does demo account have more effect on gaining forex knowledge, or live trade is the best way to experience live market trades and gain forex knowledge?
I’ve been minting greens, courtesy the strategy and platforms that help me align with support and resistance levels on the 15-60 min charts.
You guys might as well solve my dilemma of choosing between RSI and stochastics. It’s one thing that screws my brains out.
@Peter that depends on the market altogether. RSI is suited well for the trending market and stochastics can be best used or applied in sideways or choppy markets. Plan out your strategy well, know where you want to trade and what parameters go well with your platform. I’ve actually benefited from RSI also because IB and fxview, my broker’s platforms suits my strategies.
I believe that practising on a demo account is a great way to gain Forex knowledge, it helps you in making familiarity with the market as well as make you aware of the platform. But the real experience comes out after doing live trading.
Tried my hands too with RSI and burned them with my wallet. When analyzed, I made 2 mistakes, firstly going long since the market seemed to be oversold and secondly, perceiving that the market will reverse because I stopped a divergence. Have planned on shifting to stochastics now and wonder if there’s something I need to know to avoid beforehand.
A demo account is just a tool used by beginners to learn forex trading, whereas experienced traders use it to build strategy, and Real trading gives a better experience on live market trades compared to the demo account.