The learning cycle for a newbie trader

[m_ashiq88]

Originally Posted by primategirl

Hi,

I am testing S&C trading demo to practice right now. Have anybody tried this trading platform before? If yes, can you give me some advices? Also I don't know how to use the buy/sell limit. Can you help?


Primategirl

I am also started with a Demo Account.

[Gavin]

Originally Posted by txtrader

You know exactly where I'm at - I knew someone out there knew what I was going through!

I opened my demo account on Jan 7, started trading on Jan 13 and quickly learned that I had no clue what I was doing.

I've been looking since then for info that will help me learn what do to - I mean the basics of what are pivot points and how are they used? How do I really read the bol lines? where are my moving averages? How do I use those to determine my exit points? So many questions that I need answers to - but the easiest way for me to learn is by hands on doing. Thank goodness for demo accounts.

But I've done exactly what you outlined in your post - 1, 2, and I've made it to 3 - now it's time to document what my plan really is - how will I trade in the beginning, what do I expect over the next xx week? what are the goals? are they reasonable? How do I manage my money? what is my risk level? (low, lower, lowest!).

I just told myself today - 1) discipline - gotta have that in order to leave the trade alone long enough for it to go with the trend (trade the trend!) - 2) money management - as I said before, since it's not cash, I didn't worry too much in the beginning about managing the money - now it's time to turn that around and manage the money before placing the trade 3) know my risk level (low, low, low right now) 4) document the plan! I haven't done that yet, but in order to be a success, I've got to have that document.


I still want to read everything I can get my hands on, just for different perspectives, but more for listening to those who know who can guide me - knowing they can't make the decisions.

And I realize it's not an overnight, get rich quick ticket. I've been told I can treat it like a hobby, but not to depend on trading as a way to make a living - but that's my goal. If I have to start with a mini account (which I will since I don't have the capital to fund a regular account), so be it -- as long as my pip gain is reasonable, it won't take long to open the regular account.

Thanks again for the post!

Hey TX,

Glad to see that I am not the only one is is just starting. As of today, I am comiting myself to FX trading. Though I have been trading options for a year and know technical analysis, FX seems to be a somewhat new ball game. I want to take the approach of knowing nothing and building from scratch. Why? That way I don't miss out on any of the fundamental building blocks of learning this new subject.

So if you can suggest anything that I do to help, things to move toward to or avoid, I'd really appreciate it.

Cheers!!

Gavin

[Jerseydevil]

Thanks for all that contributed to this thread. Good stuff - maybe I can avoid some of the common mistakes...

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[fxhst329]

well, forex is kind of game and is more like a game the less you're following the rules...

[marketiva]

Originally Posted by fxhst329

well, forex is kind of game and is more like a game the less you're following the rules...

game and gambling...win or lose...


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[Rufanuf]

This is a great thread for beginners Soultrader, thanks for the start.

I cant say what stage I am at...maybe 2 or....?

But for what its worth this is my experience so far.

1. When your comfortable with position sizes its easier to ride the trade out to its profitable conclusion.

2. If you take a long term perspective, its easier to justify going into a trade.

3.If fundamentally a trade is sound, its easier to stay in it until the fundamentals (and your profit) is realised.

4, If you know your trade is sound long term but it makes a profit in a minute, hour, day or week why not take it ?

5. Once you understanding the long term relationships between pairs using TA to enter for short term reasons becomes a safer approach.

6 If your in a trade based on fundamentals and TA, but it turns a profit in a minute,hour or week why not take it?(I know same as 4)

7.If the trade is fundamentally sound its easier to stay in it until the fundamentals (and your profit) are realised (I know same as 3)

8 If you take the long term perspective its easier to justify staying in a trade.

9 When your comfortable with position sizes its easier to ride trades until their profitable conclusion.


What I am I getting at here?? Well, the markets are cyclical, one of the lessons is learning to ride the cycle, also when you buy something (In this case a currency) you clearly have to believe it has value otherwise whats the point? If something had value when you bought it....if you wasn't raised by parents who had "throw away values" its value should remain. At some point if your patient and stick to your conviction its value will be realised.

Deeep!But it seems to be working for me, in fact any other approach doesnt seem logical, consistently locking in losses becuase your position size is too large in relation to your balance, or becuase you have changed your mind about a trade based on a new short term view (you have bumpy ride for a day or so a chart looks bad) simply isnt going to make you money..


Ruf

[kamba]

Tx Soultrader for starting this excelent thread.

I,m usually passive reader on MTforum coz my english not good enought to make a comments. But your stages of Traders evolution gives me excelent picture where i am now (18 months, stage 2) and my perpective as a trader. Those stages like a maps helps to find right direction knowing where are you now what to expect of going North or South.
Cheers