Well, it's from a book I read by some Russian guy, Alex Kresch-something-sky. Apparently he earned 20% plus per month. BUT usually about 2/3 of the trades went bad. And, that is what I'm dealing with, so obviously I need a better way to do this. I want to learn, but I'm not sure what to indicators to use and what to avoid.
Most indicators are completely useless; developing price action memory will yield far better results. Anything canned is worth less than nothing imo.
Phenforum, you must be referring to the "WWW Trading System" e-book, by Alex Krzhechevsky, right? Hope you didn't pay $99 for it, as it's available free on p2p. Of course, that's "18% a month and more", not 20%. Get your facts straight, would you? Unless he revised it. The 2-MA crossover system, 5 and 13 or whatever, is probably as old as TA itself. By itself (without setup conditions, without filters, without proper exit management and without regard for the current market mode), it is guaranteed to do one thing: bleed your account to death slowly but surely. That e-book, and probably many others like it, presents a crude, idealized, over-simplified methodology. Becoming proficient at forex trading may not be rocket science, but it's not that one-dimensional, either. Or else the winner / loser ratio among traders would be reversed, wouldn't it? My advice, FWIW? Take a good hard look at posts by Brites, then practice what he's talking about, in demo mode first. Look up the website of Joe Ross, there' plenty of good free info there on understanding price action. Then pick up his most recent book, "Day Trading." If you're committed and possess (or willing to acquire) the right mental attitude, those steps alone may get you a long way toward success. For a decent, hands-on application of TA to forex, written by a trader, check out "ForeX Trading for Maximum Profit" book/CD, by Raghee Horner. Since you're 19... are you planning to go to college at some point?... you've got all the time in the world. Above all, this being your full time job, you can never spend too much time observing price action, in real time. Initially, pick 1 or 2 currencies at most, e.g., EUR/USD and GBP/USD. Get to know them even better than you know your girlfriend... Then, when you get consistent positive P/L going, get yourself a better GF. Or something. Have fun with it, and best of luck to you.
I appreciate your detailed response, Apex. Thanks! I will check out those books and the site you mentioned. It is WWW Trading System. There's no way I'd pay $99 for his trading system. I found it on edonkey. I agree that it is oversimplified, but it has been working for me until the choppy conditions set in for a while. Then it'd kill me for sure. What is TA? Well, I did like to trade USDCHF and compare it with EURUSD movements, but USDCHF is definitely dangerous for me right now.
TA: technical analysis.. I think by asking that, you just opened yourself up to a lot of "just give me your money, it's quicker" type attacks you've just put blood in the water... If your trading a MA crossover, then you will no doubt feel some pain when the market doesn't trend. Particularly if you're over leveraged. I think you should: 1) take your money OUT of the market for now! 2) Follow the path Apex is pointing you towards Don't let the abuse you're most likely going to receive here shortly, get you down. But as you get more educated in trading, you will see why folks were clobbering you
It's highly recommended, that way you can actually be somewhat accurate on your entries, instead of randomly averaging down and praying you get out alive. Then you might even be able to trade in a size that would be meaningful to your real life bank account.