Technician
Education

Trading? 10 things you might need to consider!

FX:EURUSD   Euro / U.S. Dollar
6328 97 294
I strongly recommend everyone to read the new blog post from tradingview, as it advises users to be carefull from service sellers here at the website. Please read the 5 points caefully here : http://blog.tradingview.com/?p=2400

This is not the first time i publish this post. But some new followers may haven't had a chance to read it.. Suggesting advice on how you approach and perceive the trading experience is tricky. It might be useful and might not. This is because of the fact that every individual has different personality traits. Some might be risk takers, while others conservative. Some could have a strong mental stress absorption, while some may be more susceptible. Having said that, the suggestions I present below is not meant to limit your thinking about the trading process, if it suits your personal traits take it, if not find your own conclusions.

1. Trading is not a get rich quick scheme. It is a normal investment that gets traders return on capital.
Have you ever met a trader making double-digit percent return per month on a consistent manner?

Trading professionally with proper money management would likely get you a return of few percents a month. From my personal experience a 3-5 percent return on capital per month is a very realistic number.

So if you’re that kind of person who wants to “make a killing” trading, please reconsider your expectations.

2. You should be well-capitalized. Small accounts will probably burn you.
This point is correlated to the first one. let me illustrate with an example:

Suppose that you have a $30,000 trading account. According to the 3-5 percent return per month rule, that would give you 1000-$1500 return per month, which is a very good number, relatively speaking.

Now let’s assume that you have a $5,000 account, according to the 3-5 percent rule, that would return 150-$250 per month.

In the second example(smaller equity), the return would likely be unsatisfying for someone looking to trade for a living. Would it be for you? Wouldn’t you break your money management rules and take more risk to increase that return?

3. Technical Analysis doesn’t work all the time.
Assumptions we make will always have a percentage of failure. The main goal is to keep your risk limited, your targets bigger than your risk, looking for consistent profit on the long run.

4. Trading is not about forecasting the market.
Do not try to forecast where markets are headed all the time. What a trader does is wait for the market to GIVE him certain conditions that validate a trade. (Don’t trade under the market rules, trade under your rules.) Do you feel sometimes that you’re lost and don’t know what to do? it’s probably because of this.

5. Limit your risk.
If you did use stop loss on your trades within the past year, but you didn’t and took excessive risk only on one trade, this single trade might wipe out all of the profits you gained through the year.

How many times did you ignore your stop loss convincing yourself that you will close at a better price? It may have worked sometimes, but what if the price goes against you more and more? Are you mentally strong enough and able to close at a bigger loss? You probably won’t, until forced to close on a margin call.

6. Don’t over analyze.
Over analysis and complicating your tools may lead to confusion and is not necessarily efficient.

7. Ignore your bias
Initiating a trade requires technical evidence, three, four or five conditions that occur concurrently.

8. Always use a top-down analysis approach.
Start from the higher time frame to the lower time frame. The higher the time frame the more strong and invulnerable the trend is, and the more strong and invulnerable the support and resistance levels are.

9. Trend-trading increases your chances of success.
Trading setups that occur within the context of the trend tend to have a higher success rate than those against it.

10. Don’t give up
Comment: 10. Don't Give up
Yeah it can go up to 10 losing trades… Don’t worry, it’s normal in trading.
Comment: I feel sorry for the people talking about unrealistic returns of more then 10% a month in a consistent manner(you can do that in many months, but not in a consistent manner). You are talking about more than doubling your investment every year(120%) lol. Bring me ONE SINGLE, ONLY ONE SINGLE Trader who has done that for the past 5 years .

p.s. I have gained more than 50% percent return on my capital in some months, but that doesn't meant that i can do that in a consistent manner. So again don't tell me that people are making thousand% return per month, or even 15%. ARE YOU making more than 10% return a month for the past 5 years?

Latest trading ideas: https://www.youtube.com/channel/UC02s7uiUQl55HkhHZDM6eUw/videos

Free Telegram Channel: https://t.me/technician_forex_trades

Trading Signals Redefined: https://thefxchannel.com
thanks for sharing!
Reply
Thank you bro
Reply
Nice
Reply
Please, Could you illustrate point 4 by an example?
Reply
Thank you a lot for your kind sharing this practical and valued experiences.
Reply
Tech, you're one of the reasons I keep coming back to TradingView. Thanks for your time.
Reply
I appreciate this
Reply
Very very useful, thank you
Reply
would you please recommend me a book helps me to start\launch my own technical analysis of gold market ?
Reply
Finally, he turned to be the spiritual Forex leader! Happy to see that!
Reply
United States
United Kingdom
India
Deutschland
France
España
Italia
Polska
Türkiye
Россия
Brasil
Indonesia
Malaysia
ประเทศไทย
Việt Nam
日本
한국
简体
繁體
Home Stock Screener Forex Signal Finder Cryptocurrency Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing My Support Tickets Contact Support Ideas Published Followers Following Private Messages Chat Sign Out