I started currency trading in 2008. The first few years were mainly gambling and nothing else. Of course during that time I thought that I am doing everything fine, and only the market is responsible for my losses.
In 2008, there weren’t so much information as now is. In 2008, it was the wild west if speaking about information.
I have bought my first forex courses for one week; they showed some necessary information, that is support/resistance, some indicators, like moving average and macd, as I remember it was all about indicators, all courses were focused on it. Another aspect was how to use MT4 platform. As I remember about this one week course it was a multi-answer quiz, I have made only a few mistakes and got “Certificated trader-analyst” diploma. I was thinking that now I am going to earn huge amounts of money, in my mind were cars and other expensive things. Some time ago I was cleaning my workroom and found this “diploma”, I remembered all these dreams and was laughing so much.
After these courses a brokerage company gave us a deposit of 300$, I was able to double it, so let’s say I had a 300$ deposit and I was able to turn it to 600$, so 600-300 = 300. Of course, it was a newbie luck how I made it. I felt like I know everything about currency trading and I will earn money all time. You can imagine that it was only daydreaming.
Some time afterwards I have opened an account with one of the largest broker, and I made a deposit of a large amount. I was trading forex only using support/resistance levels. One significant thing is that it was against the trend. Let’s say GBPUSD reached a new high, so I imagined “if it’s such a big move up, it has to go backwards”. Of course, it worked in some cases, but in the long run, I was unsuccessful. One big thing is that I haven’t had a clue about what I was doing. All newbies see the same picture, they don’t even think about stop loss levels or risk management.
Foremost, I began currency trading as a scalper and day trader. You will likely recognize this that very often scalpers or day traders turn to a swing traders. That’s, of course, ironic, but that means if you open a trade for some pips profit and when a trade goes against you, you hold it is hoping for a price to go back to break even. After some time, you will expect for the price to bounce at least to 50% of the current loss.
So as you can imagine I was trading randomly without any edge. I was so disappointed and sad. After that, I was going to some “guru” courses. During this course, people were talking about pivot points, fibo and some indicators. I was thinking that I’m improving, but the result was the same. Today I realize that learning should begin from risk and money management, you will never be profitable if you have the magnificent strategy, but not ready for risk management and your psychology.
I was trading forex with breaks, I deposited and deposited funds and was practicing the same. Subsequently, I lost every deposit I was doing time outs while I deposited more funds. It was all the same, thing. Subsequently, I have initiated to analyze my trades, not even losses but profits too. I was focused on scholarship, studying, watching videos. I have made attention to the same site, when I do similar in five places and take a loss, after that I was able to avoid some situation from my pattern.
I saw that I should concentrate on one trading style, but not do scalping, day trading and swing trading in the single trading account. Then I selected swing trading as most comfortable and psychology easiest trading style.
Some time afterwards I wrote my forex trading principles and that I need to confirm before I enter to trade.
Next most important thing was not to make money, but how to solve it and don’t loose. I was straining to come to trade if the situation for me was clear and try to avoid ambiguous situations.
I have noticed, that keeping plan helps. I, however, was receiving one issue; I imagined that I incessantly have to have active trade/s. Every day I was looking to open a deal. After I go to the next level that I can be without any trades and open trade after waiting, like a fisherman.
Today I watch these for currency trading:
Trading rules apply
Targets and stops (very significant thing to set stop not where everyone sets stops)
Before trade check news events
Follow forex correlation
Trade with trend
Not to find a trade, just wait for it.