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Old 22-03-2006, 23:11   #6
pipmarshal
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Join Date: Mar 2006
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Re: Give up on Forex

One year is not quite enough to become a proficient trader but it is enough to analyse and understand where you have been going wrong.

There are a few things which you could consider, namely

1. Define a simple trading plan.

2. Work out a strategy and practice it on demo, tweak it till it starts working. It is not necessary to have a strategy using many indicators even simple ones when applied consistently will be profitable over a period of time. Only thing needed is patience and perseverance to stick to the game plan. Do not forget to fix a stop loss and stick to it, moving the stops up and down is a recipe for inconsistency and disaster.

3. I would not depend entirely on the results attained in a demo account because I believe demo and live trading are not the same. Demo platform is ideal for testing strategies and not for gauging how good a trader you are. So when you have a strategy working in demo trading, start trading live with small lots with a lot of caution. You can consider increasing the lot size slowly when you are consistently profitable and comfortable with the lot size.

4. Atleast intially, avoid trading the news especially the big ones like NFP, TIC etc which is when most of the small traders get knocked out the market. You may also consider staying away when the big guns like the Fed Chairman, ECB chairman are taking the floor when volatility is the name of the game.

Every trader got his quota of knocks before breaking even and becoming profitable. They became profitable because they worked on their trading and did not give up.

Have a nice 100 pips day.

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