Forex Trading

[karkaore]

As the COVID-19 is obviously ruining all of my plans of letting loose on summer I've started looking into forex.

Anyone doing/done trading? How did it turn out for you?

Also, what do you guys think of Shiva Krishnan on YT? Seems to me as a genuine, professional trader sharing the how-to's.

[Average Investor]

@karkaore There is money to be made in trading. But most investors are beat literally by people who just hold investments in stuff like the S&P 500. Now if you want the money to come faster and you want to practice, then you can make plenty of money becoming a good trader. I am more into buying and holding investments that I believe to be good. But I know that I am not the best investor and there are so many things out there I cannot have knowledge of. I am aiming to build a portfolio based off information from Warren Buffets value investing style, and Jack Bogle's indexing. But my research is not going to stop there. That is just the start of it really and adding my own stuff to it, but also building a foundation of stuff that is known to work. 

It would be wise to learn about all of this stuff in general I think if you plan to trade or not. But I would suggest building a portfolio that is for the long term as well. There are so many things out of your control and things you will not know that it will be hard to predict value of things over the long term. 

Are you looking to do this as a primary income, or just an investment strategy? What attracts you to foreign exchanges? 

I can't really comment on the person showing the strategy, but I will say there is a lot more people out there giving bad investing advice, than anything good. 

[karkaore]

@Average Investor Haven't looked into foundations just yet. Looking into currency pairs at the moment. Gathering info on it, checking criteria, trying to form a strategy around EMA's.

I am thinking about trying it as a primary income although now it will be an investment as I don't see myself in a day job. I will have plenty of time in the months to come, a lot learning can be done. I know there are demo accounts that you can train on. Have any to recommend? What caught my attention is the possibility of spending so little time on meeting my survival needs.

[Average Investor]

This is one of my favorite sites for look at companies so far for a quick glance https://simplywall.st/stocks/us

I have used a dummy trading one in the past, but I can't recall what it was. I don't know what a good one would be.

I have heard really good things about this site and planed to use it more here is their

simulator https://www.investopedia.com/simulator/

One of the biggest things with trading like that is it is quite similar to gambling to the brain. It can be really attractive, but like I said most people do not beat the markets. A very high percentage of people make more money just putting it into index funds and wait. But that is not to say you cannot do it. But I think there will be a lot more to it and it will take a lot of time and energy to get it to a high enough level. You would also have to stake higher and higher amounts of money in order to make a living with it. It is totally up to you. I think investing is good to learn about though all around from my experience. I just think that a lot of people promote trading as a get rich quick type of thing, when it is not. Only a small percent really hit it big with trading if you look even in just trading groups with thousands and thousands of members. More practical though could be techniques like swing trading though and that could help yield a better profit in something you are knowledgeable about to start in. I would also have to say I have never sold an investment. So I can't really anything about trading from experience, but more from what I have observed. But I have done well by just letting things grow over the years. 

Edited April 12, 2020 by Average Investor

[7thLetter]

Hey, your thread caught my attention.

Currently studying the FX markets as well, taking advantage of this downtime, staying at home for who knows how long, and committing to coming out as a great trader. Honestly, I've been introduced to Forex in 2016, and I've been super interested in learning the strategies, but I've been on and off with it these past few years. Some months I've been serious about it, some months I've been distracted with working a job, some months I've been taking a break from the markets. So it has really been on and off for 4 years, and there's still a lot for me to learn at this point. But I will say that a lot of it is starting to make sense to me now. At this point I've watched a lot of videos from different teachers, did a bit of live and demo trading, and learned from a couple trading courses out there. To be honest, I'm still not where I want to be with my trading career but its definitely getting there. Its a matter of time, developing a trading plan, sticking to that plan, and improving my trading psychology.

Here are the some of the most important things I've learned (I'll try to simplify it as much as possible):

- Your psychology is HUGE when it comes to trading. Successful trading is 60% psychology, 30% position sizing, 10% system/strategy. You don't need the most complex advanced Bat Patterns, ABCD, Flying Wedge, Upside-down crocodile bullish momentum, whatever the hell patterns are out there. There's hundreds, maybe thousands of different strategies to trade the markets, but all you need is ONE strategy that wins 60-70% of the time and master that one strategy. Don't waste your time learning all the different indicators and patterns out there. Also, its easy to get emotional when it comes to trading, especially if you want to be a scalper. Scalpers make the quickest money, but trading the lower time frames might cause you to gamble your money, so I wouldn't recommend scalping until you're a decent trader. Managing your emotions is key.

- The TREND is your FRIEND. NEVER buy in a downtrend, NEVER sell in an uptrend. Its simple, only buy in an uptrend, only sell in a downtrend. If you don't follow that rule, you're just risking a losing trade.

- In addition to the above point, make sure the time frame you're looking at is in alignment with the higher time frames. So for example if you see an uptrend on the 15min chart, and you're looking to place a buy order, make sure the price action is on an uptrend on the 1 hour chart as well.

- Only risk 1-3% of your capital PER TRADE. Its so easy for us to want quick money so we try to flip an account from $100 to $10000 by risking 100% of your capital in one trade. Don't do it, no matter how confident you are in a certain trade. The reality of trading is that a good trader consistently makes 5-10% of his capital per month. When I heard that at first, its like what? That's slow money, so I try to make more than that, and I blow the account. Because that means, a $10K account only makes around $1000 a month, or a $1000 account only makes around $100 a month. Its easy to look at professionals and be like wow, he makes $3K profit per trade, how?? It's because their trading account is more than $100,000, and they still stick to the 1-3% rule. The more you have, the more you make.

- Best ways to develop your skills is by back testing, demo trading, looking at charts, every single day. Experience beats theory any day. Watch all the Youtube videos you want but it will never beat experience. But the theory is still important, learn first, then implement.

- Learn from as many teachers as you can, but like I said, its easy to waste your time trying to use all of their trading styles. Just pick one you like and stick to it.

So those are some important points I've learned in my journey, hope it helps. Personally my trading style revolves around support & resistance, trend lines, a few patterns, and a few indicators. The teachers I like to follow are the ones who are young and rich, because I'm still 24. So some of those teachers would be like Quillian Black, Ryan Gilpin, Daniel Savage. But I still follow other traders like Akil Stokes, Adam Khoo, Navin of Urban FX, those in the Falcon FX community, etc.

Not much to say about Shiva Krishnan, as I haven't fully watched his videos but he has a different trading style and I don't doubt anything he does.

You mentioned you're developing a strategy around EMA's. Another trader who likes using moving averages is "Adam Khoo," I suggest checking his stuff out if you want. Another teacher I suggest is "Navin Prithyani" or Urban Forex. A lot of teachers are big into trading psychology, but no one I've found has gone as deep with it as Navin has. He literally has a course dedicated to helping improve your trading psychology.

 

[karkaore]

@Average Investor @7thLetter Thank you guys for all the info! Much appreciated.?

[7thLetter]

@karkaore Welcome. And by the way I forgot to mention, babypips.com is a good site for learning the basics of Forex, if you haven’t checked it out already.

[Striving for more]

@karkaore I have the perfect course for you. 

If you Look at my profile you'll see I'm not a troll & I'm genuinely into helping others grow. 

You'll need to invest a bit, it's worth it ... don't waste your time on youtube trust me 

[Ameer]

Guy’s have go on YouTube and search for “no nonsense forex”. Check this channel out he has some really great educational content.

[karkaore]

@7thLetter @Striving for more @Ameer
Thank you all for recommendations. I have watched quite a few videos on this and have found some valuable nuggets. Shiva Krishnan 10 part series on forex trading is pure gold and have helped me the most. Utilizing all the tools he talks about made me understand the ways in which the market moves. I haven't been serious enough yet to start live trading, but predicting the way in which the market will move became easy at this point. Have some more things to understand in terms of entries/exits but overall it all starting to make sense.

[Kalki Avatar]

@7thLetter Do you Meditate or do yoga before trading? Doing trades while fully enligthened must be a huge advantage. Thats like hacking the market without hacking it. 

Also, a friend of mine who is rich from cryptotrading told me to just try a strategy on demo if you want, but that as crypto doesnt has demo account, Its a blessing. He says you need to get used to all the crazy emotions from day one and learn how to handle them. Its nothing compared to demo. 

I see you spoke about patterns which I have not really never looked into. Are they that important? Instead my friend has told me about identifying the types of candles such as doji or hammer, etc. 

And what doyou think about fibo? I see many saying they owe their successful trades to it. What indicators have worked best in your experience?

What is the biggest mistake you regret you wish you were told when learning as a novice? 

 

[7thLetter]

7 hours ago, Kalki Avatar said:

@7thLetter Do you Meditate or do yoga before trading? Doing trades while fully enligthened must be a huge advantage. Thats like hacking the market without hacking it.

Not immediately before trading but I've always had a meditation practice that I try to do as often as I can.

Enlightenment probably can help with managing your emotions when trading but I don't have too much experience with that to have a specific opinion. The best way to control your emotions in the market is to continually experience the market. Open trades, experience the volatility of the market, understand how price moves, etc. Keep practicing or live trading until the point you're just so used to what goes on in the market.

There's a lot of traders out there who aren't enlightened and are really good traders. And some of these traders do drugs, drink, & smoke cigarettes. They became good traders through experience. If we had the opportunity to observe an enlightened person with 1 month of trading experience VS a smoker & alcoholic with 8 years of trading experience, the one with 8 years of experience will most likely do 10X better than the enlightened person. Experience beats anything any day.

7 hours ago, Kalki Avatar said:

 

I see you spoke about patterns which I have not really never looked into. Are they that important? Instead my friend has told me about identifying the types of candles such as doji or hammer, etc. 

Its up to you and your strategy if you want to decide to trade patterns. I only trade the patterns that work best for me which is double/triple tops, double/triple bottoms, H&S, and inverse H&S.

Doji, hammer, etc. are all patterns too, they're candlestick patterns. Personally I don't trade candlestick patterns. Not that they don't work but its just not part of my trading style. If you find they're helpful for you then you can trade them.

7 hours ago, Kalki Avatar said:

 

And what doyou think about fibo? I see many saying they owe their successful trades to it. What indicators have worked best in your experience?

I use Fibonacci, it's a really good tool if you're trading pullbacks/retracements, I enter around the 50-70% retracement levels. Fibonacci can also be used to set take profit levels.

I don't use indicators, I mainly trade just price action, some patterns & Fibonacci. I wouldn't say Fibonacci is an indicator, I say its more of a charting tool.

7 hours ago, Kalki Avatar said:

 

What is the biggest mistake you regret you wish you were told when learning as a novice? 

Biggest mistake I regret is not following the idea of strict risk management. Everyone tells us to risk 1-3% per trade, but as a newbie its tempting to risk big, and most newbies are too confident in themselves that they end up losing quite a bit in the beginning. In most cases I imagine it starts off that way for every trader where they don't follow risk management rules in the beginning, and until they actually lose a shit ton of money they start to take the rules more seriously.

[Striving for more]

@Kalki Avatar Think about how much time you're wasting asking random people questions on forums & watching YouTube videos. 

Because I invested in a course I don't need to do all this, I have 1 clear strategy with a set of info with proven results. 

The choice is yours but I think you're missing out & wasting your time. 

You're asking about what indicators work ect.. but if you just had 1 clear strategy it's literally copy & paste. You'd know exactly how to use FIBS & why it's useful.

BTW, yes fibs are very useful tool, also very easy to apply. 

Edited January 26, 2021 by Striving for more

[karkaore]

@Striving for more has a legit point there. BUT... who does one trust? How do you decide which gurus are legit and which are scammers? Especially when you have to pay first before u get disclosed with any sort of info.

From one standpoint YouTube is a waste of time. From another, these videos (if taken seriously, and not just sitting there absorbing without any kind of actual ACTION) provide some sort of filter where mild understanding of what these people are talking about develops. And once it does it becomes much easier filtering the bullshit gurus out.

@Ameer I can not thank you enough for recommending VP.  outright badass. He reminds me of Leo in a sense that he says so many things I don't want to hear but deep down I know they are true and it makes me act on them. Like a hard reality-slap-to-the-face kinda thing, makes you wake up.

Edited January 29, 2021 by karkaore

[Striving for more]

@karkaore  At this stage you have trust issues, I gave you too much evidence that's the guy's legit 

But if self taught rocks your boat, fair enough. 

 

Edited January 31, 2021 by Striving for more

[Striving for more]

@Kalki Avatar sorry my message was intended for @karkaore

[karkaore]

@Striving for more Oh I wasn't referring to myself. I do trust you and the man you recommended looks definitely legit! And while we on it, THANK YOU MAN!