First Steps You need To Learn To Trade Any Market – Forex is fundamentally similar to any market be it that of lemons or that of Stocks. If you have ever done hunting in the jungle you would know that despite having a rifle or bullets you may not kill anything and the jungle is home of all species of wild life. In frustration you may kill a lizard or some other low hanging rodent.
Well, most traders do exactly that, they spend their days killing lizards rather than training to be a hunter. The experienced hunter understands the jungle he has respect for the creatures. This is because he has taken the time to understand the market.
If I asked 9 out of 10 traders what asset correlated strongly with the Brazilian Real, they wouldn’t have the foggiest idea. Yet they will tell you they have traded for years, it is lack of market knowledge and awareness.
So the first step is gain market awareness and knowledge especially in your chosen asset. A Cocoa trader knows everything about Cocoa, all the players, if the Cocoa market took a shit, they would know. This is the first thing every trader needs.
To be successful at forex trading you must be…
1) Realistic – This is going to take you a few years minimum of hard work to get competent
2) Process driven – You must approach building trading skill like becoming a concert pianist or a professional golfer. Measure everything, engage in structured and focused practice.
3) Aware that 99.99999% of the people selling courses, ebooks, and systems are themselves failed traders. Imagine you didn’t play golf, and one of your friends was a serious weekend golfer. If you didn’t know any better, he would appear to be incredibly good, but the reality is that he’s not good enough to make a living from it (insert any hobby/sport analogy you like)
Let’s break it down into the component parts:
a) An system for trading the markets
b) That system must have an objective edge. Most successful traders I know trade edges which are uncontroversial and uncomplicated. Some examples:
- Buying pullbacks in an uptrend is an edge
- Buying support in a range bound market is an edge
- Buying breakouts is an edge, even though it only works around 30–35% of the time, since the wins are large
- Opening gaps are an edge
- Seasonality is an edge
- Inter market correlations are an edge
c) The system must suit your investment goals, lifestyle, market beliefs and personality. It is unlikely you will be able to trade another persons system without modifying it to your taste.
d) You must keep accurate records and screen captures and set aside a lot of time for regular reviews of your system performance and your own performance as executor of that system.
e) You must have a business plan to go with your trading system, telling you when to increase position size, when to reduce, when to stop trading, and how to deal with anything that could potentially go wrong. And below are 5 recommended forex trading systems you have to know…
- Holy Grail Forex Dolly Trend Bars Trading System for M15 and M30 Time Frame
So this is too close to that Holy Grail you probably dreamed about. Best Forex Trading Strategy-90% Accurate. This one of a kind Forex trading strategy is based on price dynamics and traders realtime sentiment. Forex Dolly Trend Bars Trading System for M15 and M30 Time Frame.
Best Time Frame:15 or 30 Min
- Forex Bollinger Band Stop with RSI Filter Trend Following Trading Strategy
Bollinger Band Stop with RSI Filter is a trend following multi time frame strategy based on the Bollinger Band Stop indicator and RSI Filter.
How to use Bollinger Band Stop:
- The first stop is when there is a trend change, the stop is set to the same as the opposite side bb. Then it stays the same as the band as long as the band is going in the direction of the trend, but then when the bb changes direction, it stays level, just like any other trailing stop. Look at the first blue dot in your picture, the close of that bar is above the previous bars red line = trend change. Then it stays level as the bottom bb goes down.
Time Frame: 15 min or higher.
Markets: Currency pairs (majors), Indicies (S&P 500, Nasdaq, Dow Jones, DAX, FTSE) Commodities (Silver, Gold and Oil).
- Advanced Forex Gain Formula Trading System With Auto Target
Advanced Forex Gain Formula is a manual trading strategy that you can use to generate profits from forex market every month.
It was designed to be very simple and very powerful at the same time. And unlike most trading systems all over the market, this system is tested for a long time and proved to be profitable even in the worst market conditions. The reason for that, is that was designed based on the most powerful trading methods like trend following and wave trading.
- High Profitable Forex Trend Momentum System for Intraday Trading
Aroon up down is a trend momentum system for intraday trading. We have a combination of trend indicators with momentum indicators.
Time Frame: 60 min, 30 min.
Markets: Currency pairs and Index.
- Trend Following Forex Trading System Based on Non Lag Trending Indicators
This trading system is a trend following strategy based on trending indicators. This is a combination of filters. For best result you can use Pivot points.
The pivot point itself is simply the average of the high, low and closing prices from the previous trading day. On the subsequent day, trading above the pivot point is thought to indicate ongoing bullish sentiment, while trading below the pivot point indicates bearish sentiment.
Once you have all this together, you do a lot of backtesting, and out of sample backtesting so you know what to expect. Then when you start trading live you start VERY SMALL. Literally risking $50 on each trade.
The way I do it is to start with very small trade size, and when I trade 20 trades with 1 mistake or less, I raise size a little. I stay focused on trading perfectly with no mistakes (as opposed to making money) and increase the size as I get better at execution.
You don’t need to do lots of courses to do this. It is honestly just time, and grunt work. Most people are unwilling to put in the work.