- Joined
- Jul 9, 2017
- Messages
- 211
- Reaction score
- 31
- Points
- 62
I apologize if this comes across as a rant, but I'm feeling quite lost as I am unsure where to post this. Most forex forums are filled with bots and people selling trading strategies that seem like scams. I have been following this forum as a lurker for some time, and I have seen discussions about forex trading. Therefore, I thought I would give it a try and perhaps someone could help me understand what I'm doing better. I'm also open to discovering other methods of making money besides forex because I don't plan to work a traditional 9 to 5 job for my entire life (I understand this might sound like a cliché, but it's the truth).
At the age of 23, I have been researching trading, specifically in the Forex market, for a year. Over the last four months, I have been practicing with a paper or demo account.
I have encountered mixed opinions regarding whether Forex trading is a scam or not. Some have suggested that the market is influenced and controlled by brokers who are eager to take my money.
However, I am the problem here as I feel lost. It could be due to my own fault or perhaps the mixed information coming from various sources has left me confused. Therefore, I would appreciate the opinion of someone experienced in this field.
Note: I have used Baby Pips to learn about Forex and have also read books on price action and different strategies. However, some of them seem confusing to me. Please keep in mind that English is not my first language.
1- My lack of understanding in developing a clear strategy hinders me from having a concise approach like many others do. Currently, I rely heavily on my intuition and pay close attention to the signals provided by the market.
Initially, I explored the possibility of engaging in scalping and day trading on shorter timeframes, relying heavily on the advice of various FOREX experts on YouTube. I used a variety of indicators and trading techniques which I later found to be impractical and detrimental, leading to significant losses. Currently, I have switched to using Price Action while trading on my demo account, using only a limited number of indicators such as the 200 EMA/RSI, as well as focusing on candle formations and patterns, supports, and resistances. Therefore, my current strategy doesn't involve as many lagging indicators as before, except for the EMA/RSI.
I'm experiencing difficulty in timing my trade entries, which makes me feel uneasy and reinforces my negative perception of myself as a trader. I struggle to understand the market's movements, despite using a range of strategies, such as setting supports and resistances (only where it seems logical), identifying chart patterns, observing potential BUY/SELL and demand zones, and monitoring the 200 EMA for bearish or bullish indications. Additionally, I review trends on higher time frames and lower time frames for entry opportunities, and occasionally refer to the RSI for confirmation. However, despite these efforts, I still incur losses, and I believe that I might be rushing my trades or making other mistakes. Although I recognize that trading takes time and practice, I feel lost and overwhelmed by the complexity of it all.
2- My insufficient money management skills may be contributing to my trading issues. Typically, I enter trades with a 1:2 or 1:3 risk-reward ratio based on my analysis, but recently, I've come to realize that I'm not accurately assessing how many pips a 1:2 ratio represents, which I now recognize to be crucial.
To clarify, when I place a trade, I might set a stop loss of 80 pips and a take profit of 160 pips, but I'm not certain whether this approach is advisable or if I'm overcomplicating things by trying to accumulate as many pips as possible. I'm wondering if I should establish a predetermined loss limit based on my account size and risk appetite, for instance, if my account is valued at $1000 and I'm trading 1% at a time, then my maximum stop loss for a trade with a 1:2 ratio would be 30 pips. Alternatively, I could choose to place my stop loss at a level where I'm less likely to be affected by sudden spikes in the market, which might entail risking a somewhat larger loss initially, while still maintaining the 1:2 ratio. For example, I might set my stop loss at 50 pips and my take profit at 100 pips.
I apologize for any confusion in my previous statements; I am also feeling bewildered. At times, I believe that my trading approach is effective, and other times, I struggle with the urge to quit. Over the past few months, I've been able to decrease the value of my $1100 demo account to around $800, but through cautious planning, I was able to increase its value to around $1500, and it now stands at approximately $1300.
Could someone please offer their opinion on whether I'm approaching trading correctly or if there are flaws in my approach? I'll attempt to respond as quickly as possible, but due to my work schedule, which requires me to work nights and sleep during the day, my responses may be delayed.
At the age of 23, I have been researching trading, specifically in the Forex market, for a year. Over the last four months, I have been practicing with a paper or demo account.
I have encountered mixed opinions regarding whether Forex trading is a scam or not. Some have suggested that the market is influenced and controlled by brokers who are eager to take my money.
However, I am the problem here as I feel lost. It could be due to my own fault or perhaps the mixed information coming from various sources has left me confused. Therefore, I would appreciate the opinion of someone experienced in this field.
Note: I have used Baby Pips to learn about Forex and have also read books on price action and different strategies. However, some of them seem confusing to me. Please keep in mind that English is not my first language.
1- My lack of understanding in developing a clear strategy hinders me from having a concise approach like many others do. Currently, I rely heavily on my intuition and pay close attention to the signals provided by the market.
Initially, I explored the possibility of engaging in scalping and day trading on shorter timeframes, relying heavily on the advice of various FOREX experts on YouTube. I used a variety of indicators and trading techniques which I later found to be impractical and detrimental, leading to significant losses. Currently, I have switched to using Price Action while trading on my demo account, using only a limited number of indicators such as the 200 EMA/RSI, as well as focusing on candle formations and patterns, supports, and resistances. Therefore, my current strategy doesn't involve as many lagging indicators as before, except for the EMA/RSI.
I'm experiencing difficulty in timing my trade entries, which makes me feel uneasy and reinforces my negative perception of myself as a trader. I struggle to understand the market's movements, despite using a range of strategies, such as setting supports and resistances (only where it seems logical), identifying chart patterns, observing potential BUY/SELL and demand zones, and monitoring the 200 EMA for bearish or bullish indications. Additionally, I review trends on higher time frames and lower time frames for entry opportunities, and occasionally refer to the RSI for confirmation. However, despite these efforts, I still incur losses, and I believe that I might be rushing my trades or making other mistakes. Although I recognize that trading takes time and practice, I feel lost and overwhelmed by the complexity of it all.
2- My insufficient money management skills may be contributing to my trading issues. Typically, I enter trades with a 1:2 or 1:3 risk-reward ratio based on my analysis, but recently, I've come to realize that I'm not accurately assessing how many pips a 1:2 ratio represents, which I now recognize to be crucial.
To clarify, when I place a trade, I might set a stop loss of 80 pips and a take profit of 160 pips, but I'm not certain whether this approach is advisable or if I'm overcomplicating things by trying to accumulate as many pips as possible. I'm wondering if I should establish a predetermined loss limit based on my account size and risk appetite, for instance, if my account is valued at $1000 and I'm trading 1% at a time, then my maximum stop loss for a trade with a 1:2 ratio would be 30 pips. Alternatively, I could choose to place my stop loss at a level where I'm less likely to be affected by sudden spikes in the market, which might entail risking a somewhat larger loss initially, while still maintaining the 1:2 ratio. For example, I might set my stop loss at 50 pips and my take profit at 100 pips.
I apologize for any confusion in my previous statements; I am also feeling bewildered. At times, I believe that my trading approach is effective, and other times, I struggle with the urge to quit. Over the past few months, I've been able to decrease the value of my $1100 demo account to around $800, but through cautious planning, I was able to increase its value to around $1500, and it now stands at approximately $1300.
Could someone please offer their opinion on whether I'm approaching trading correctly or if there are flaws in my approach? I'll attempt to respond as quickly as possible, but due to my work schedule, which requires me to work nights and sleep during the day, my responses may be delayed.
