You remember yesterday. I took 2 positions of 0.10 each.
First to be honest with you, I made a "double click" and i did not really want to open 2 positions....in Metratrader 4, when you click on the trade, you are not opening the box to modify the order, what i wanted to do to modify StopLoss, but open a box to open a new trade.
I made a terrible mistake with the stop loss.
Let’s go back yesterday. After a quick setup, we took the decision to open LONG (means BUYING) in USD/CHF with a clear trend in H4 « replicated » in H1. TakeProfit was set to 66 pips, StopLoss, 100
Seeing that we had a resistance during the forecast journey, we decided to look at the trend when we will be close of the resistance.
First, we take Metatrader 4 as software to trade.
To download Metatrader 4, we advise FXDD or SwissQuotes.
SwissQuotes :
https://en.swissquote.com/forex/forex-trading-platforms/metatrader-4
Fxdd (*):
To trade, you need to pick a good broker :
Picking a good broker :
http://www.thirdbrain.ch/how-to-choose-a-forex-broker-being-alone-wolf
After, you need to understand that all trading will be a matter of loses :
I will repeat that each time I can but the base of your future success will be money management more than your ability to recognize a pattern, enter right or exit right.
And a formula can help you a lot. This formula is quite simple. You will compute a "hope of gain".
If you make 10 trades, win 6 and lose 4, you have a winning percentage of 60%, losing one of 40%, right?
Ok,
If the average win for the winning trade is 20 USD and the average loss for the losing one is 30 USD, you have :
We see a lot of comments about Live and Demo account.
Being a beginner, a demo account is the best way to start. No doubt.
Before to go live, you will need to repeat your trading plan, be sure that you are computing right the lot size, entering at the good moment and exiting right.
The money management needs to be perfectly understood: you need to survive first.
No matter that Live account will be different - it will be -, it's only a training.
After the 2 first article dedicated to the global sense of trading: " is simple " and the choice of your first "strange partner" (the broker), we will speak about losing.
Indeed Trading is a matter of what you will lose. To stay in the game, you need to control this aspect. How much you will lose when you will lose because you will.
For that, you need to understand some basics figures and computations you will need to know to see where is your risk.
Indeed you will choose the amount of money you will play - the lot size - thanks to the risk level you will take.
I know the Forex Business since 2010. First as beginner trader - manual -, after being professional and asset manager using Forex on a daily basis. A lot of people following me gained a lot of money, me a little finally but I was able to live from it during 6 years with a Swiss Standard of life - Swiss people knows what is the meaning of that -.
The 2 last years was different for many reasons which are more businesses reasons and strategies than "trading reasons".
Before you start trading Forex like I was - a beginner.
Trading is complex because it's too simple.
Why?
Because you need to follow rules, to apply this rules and never stop to apply this rules.
This is behaviour has a name: discipline. It's something that a lot of people can see as only stupid but the only way to make a profit with your own money trading
Simple?
No, it's complex.
Indeed, humans need problems to feel alive and because in Trading you don't have a problem, you create them.
Fear and greed are sting(s) on your back pushing you the worst decision you can make.