Post for the New people in Forex.

I wanted to make this post and keep it simple yet informative. If anyone of you have any suggestions write them down below.

Why do you want to trade?

Since you are new to trading you need to understand why you want to learn and invest time into this. If you think it is to become rich and buy expensive cars chances are you are going to fail at the first sign of a struggle. Truly understand if this is something that is interesting to you. If you are from a maybe a finance background or Mathematics like myself trading can be a natural progression. Either way you need to decide whether you love doing this or is it just for the money. If it is simply for the money you will have a hard time doing the work. We as humans need something more than money to do something. What does it mean to you understanding this the first step.

What is the best Strategy?

Truth is there is no best strategy. Best relates to you as a trader. Whether it is support or resistance, Wyckoff, ICT or Moon alignments. It needs to make logical sense to you. You need to learn concepts and they will be hard at first. Charts will look so alien to you and it will be just a bunch of random bars. However, if you pick concepts whoever they are from and you stick with it you will be able to understand what works and what does not. The most important part of trading is does it make sense to you, do you understand when something works and when it does not. A Strategy is made by YOU and the way you see the market these concepts are tools, it is up to you to build. No one is going to give you a working strategy, even if they do it does not mean you will make money because you do not understand the small details like they do. There is no shortcut to developing your own strategy.

What are realistic expectations?

Time: The time it takes for YOU to make money might differ from other people. Some people just seem to get it and others just seem to never get it. Understand that you need to give yourself time once again this is a personal journey trading is all on you. And do not compare yourself to other people it is the worst thing to do. You can do things that are great in terms of your own ability and who knows you might be better than the people you look up to. Trading is hard but it is not rocket science, it is simpler than you think only time will help you see that.

Return: You will not be making 100% a day a week a month or even a year. Some people might for 1 year. Is your goal to make as much money in a day? Or make money sustainably for many years to come. Understand that you need to aim small in the market 5% might not seem like a lot but if you are able to do this consistently on a monthly basis you will be in the top 1%. Once you are consistent the only issue is capital not the percentage. Even a measly 1%-2% a month is enough. It does not take a lot to be successful. Be down to earth stop thinking with your heads in the clouds because of social media.

Back testing and Demo?

Demo: These are great resources to get the idea of what the concepts look like. However, I urge you to trade with something on the line as soon as possible. You will be more receptive to what is happening and understand why you may be wrong. I only made progress once I lost and now that I look back it was the moment that changed my trading. I made more progress after losing something than I did all that time before trading in demo.

Back test: Back testing will help you get comfortable seeing the setups and your strategies play out. It will also give you valuable insight on when to trade and when not to trade as well as your average RR. All of the insights you will gain through looking at past data. The market always moves the same it always has; the entities that move the market have not changed the way they do business because there are plenty of people losing. But as good as back testing is forward testing is key it helps you see the trades forming live, this is a skill you want to get better at.

Being independent.

This is probably the most important point imo. No one and I mean no one in this sub knows how you trade. Avoid posting BS posts like why did this trade go wrong. That does not help anyone and it certainly does not help you. You need to be accountable for your own trades. Sometimes trades just do not work. It is how it is there is no 100% WR in the market. You WILL lose no way around that get comfortable losing. The market will teach you lessons if you listen and avoid making the same mistakes again and again. Are you guessing news events? Are you trading extremely volatile news events like NFP, CPI? These are the things you need to Investigate yourself. Writing down your trades will help and journaling.

Emotions: The last thing you want to do is come to Reddit or any other platform complaining about yourself. If I am being 100% honest with you no one cares that YOU are failing and no one will comfort you. Everyone is busy improving their trading, anyone that is successful in trading do not complain about the markets or talk down to anyone else. Avoid being negative. You need to embrace hard times with some courage and a positive mindset it will take you far.

Things I have learnt on my way to Profitability.

There are so many things I want to mention. But I will mention a few things that are important. Not everyday is a trading day really understand what that means relative to the asset you are trading. Market is predictable due to the large players in the market being predictable. Understand that your main goal is to follow the big players in the market. Where are they? Monthly, Weekly, Daily and 4h at the very least. Even if you are scalping you will have a greater chance of succeeding following the trend on these time frames and taking trades in that direction. If it is not clear it is simple you wait or look at another pair. Even 1 trade a month is fine by me. You really do not need a lot to do great. HTF is your friend it is so simple but very effective. Avoid trading NFP, CPI and FOMC. The less you do in trading the better. Learn to be the greatest loser before you become a winner, risk management is the most important part of trading. Once again time will be greatest teacher for you be patient. I wish I could say more and mention every detail I learnt but I hope this is enough to help you get started.

Summary:

• Understand why YOU want to trade
• There is no ‘Best’ Method YOU are the Method
• Think realistically anything good in life takes time fall in love with the process of trading
• Understand 1% – 5% is all you need on a monthly basis
• Forward test and gain live experience
• Take accountability for your trades no one is here to help you other than yourself
• Trading is counter intuitive the less you do the more you are rewarded in the markets
• You will keep losing until you learn. Get comfortable with that. To be a great winner you need to be a great loser.
• Risk management and reducing risk is how you survive the bad times when you are on a losing streak