Planning a Trade...

[dominationFX]

Hi.
Could somebody task us through the steps of planning and running a trade please, from switching on the computer, to closing out? Thanks. I would go for:
1. choose FX pairing
2. choose timeframe
3. position sizing
4. stops, limits, alerts, targets
5. manual record of trade
6. open trendline
7. look at PA with candlesticks
8. support and resistance
9. MACD and volume/momentum indicator
10. pull trigger on trade.
Thankyou.

 

[luckyd1976]

WOW, 53 posts and then this.

First figure out who you are... Then work on being a trader.

 

[gamma]

Hi.
Could somebody task us through the steps of planning and running a trade please, from switching on the computer, to closing out? Thanks. I would go for:
1. choose FX pairing
2. choose timeframe
3. position sizing
4. stops, limits, alerts, targets
5. manual record of trade
6. open trendline
7. look at PA with candlesticks
8. support and resistance
9. MACD and volume/momentum indicator
10. pull trigger on trade.
Thankyou.

very good!
I would add one more thing.
Make a note when economic news is due on the pair you are interested in.

 

[scose-no-doubt]

I've tried something similar to this when I first started out and I failed. Couldn't pin down exactly why to be honest. I think it's the reason I became disillusioned with TA. Moving a bit more towards trying to find a balance between this and understanding and applying fundamental which hopefully that will work for me. Good luck with it anyway. Let me know how it turs out for you.

 

[dominationFX]

My self-education is forex has been a bit hit and miss. I know I dont always come across that well on T2W and some others can certainly be quick to score what they think is a point. I am just trying to clarify things in my mind. I have been self-educating in Forex for a while and am getting close to trading with real money. Different ball game from demo trading!
I am just trying to raise a debate with my questions, not start a flame war, or battle of egos.
I am trying to make friends with a knowledge of PA, as well as network with other newbies. Feel free to message me if you are also here in London, UK! Thanks.
For what it is worth, I did John Bartletts course from learntrading. Worth 150 pounds, regardless of what others may believe. The beginner needs to start somewhere, and without proper mentoring you will just go round and round, then give up. Enjoy the hustle. This industry is full of rip-offs and bs merchants of doom.

 

[scose-no-doubt]

Different ball game from demo trading!

Did you start getting really hot when you placed your first trade? I still have to loosen my tie and undo a few buttons on my shirt lol.

 

[William Waller]

Hi.
Could somebody task us through the steps of planning and running a trade please, from switching on the computer, to closing out? Thanks. I would go for:
1. choose FX pairing
2. choose timeframe
3. position sizing
4. stops, limits, alerts, targets
5. manual record of trade
6. open trendline
7. look at PA with candlesticks
8. support and resistance
9. MACD and volume/momentum indicator
10. pull trigger on trade.
Thankyou.

Hi there,

Well everyone will be different, but the most important thing to say is congratulations! You're thinking about your trade plan before you've started trading live, and that approach will make a massive difference to you.

I would just suggest breaking it down a little between longer term and shorter term. For example, I watch 29 pairs (27 plus gold and oil) on hourly, two four hour, and daily each day, starting at 07.00 and finishing around 17.00 or 18.00 (then come back towards the end of the day to check dailies). So I have the same routine marked out every day.

I have areas of interest already marked on my charts, and only look to trade at those.

Shorter term, I look to see if price is around those areas, if not no trade. Then I look for confirming PA, if not no trade. Then I look for reasons not to take the trade, such as nearby trouble areas being too close, getting late on a Friday etc.

If I'm interested, I determine stop and initial target (this could be full TP, partial TP, move stop etc). This is flexible however (with the exception of the stop, which is never moved back). The stop / entry determines my risk, which is always the same.

Then it's just a matter of managing the trade and doing and recording a post-mortem.

For me, the most important part of the plan is the pre-determined area, just because I think that location is the most important factor in trading.

 

[spinola]

Hi.
Could somebody task us through the steps of planning and running a trade please, from switching on the computer, to closing out? Thanks. I would go for:
1. choose FX pairing
2. choose timeframe
3. position sizing
4. stops, limits, alerts, targets
5. manual record of trade
6. open trendline
7. look at PA with candlesticks
8. support and resistance
9. MACD and volume/momentum indicator
10. pull trigger on trade.
Thankyou.

And then do you switch the computer on ? You know after the alarm clock goes off, your mum comes in and says "come on sleepy head, time to get up" And you realise it's all been just a dream !

 

[luckyd1976]

WOW, 53 posts and then this.

First figure out who you are... Then work on being a trader.

DOMFX,

I know this doesnt seem like help but after reading some of your past posts it was like you didnt even believe in indicators and such. If you trade PA then just trade PA. If you are a TA trader then trade TA.

Having a trading plan is nice but knowing yourself and risks are even better. What are you risking per trade? Money management? How short are you going to cut your losses? Focus on risk and the percentages will take care of themselves.

 

[luckyd1976]

I am just trying to raise a debate with my questions, not start a flame war, or battle of egos...The beginner needs to start somewhere, and without proper mentoring you will just go round and round, then give up. Enjoy the hustle. This industry is full of rip-offs and bs merchants of doom.

Good point and yes I dont want this place to end up a bash ben like elitetrader.com So please keep on asking you'll eventually have no more questions and you'll be trading on your own.
On the PC sometimes its hard to see the intent. But I assure you people here on T2W generally are really just some good people trying to help.

 

[William Waller]

DOMFX,

I know this doesnt seem like help but after reading some of your past posts it was like you didnt even believe in indicators and such. If you trade PA then just trade PA. If you are a TA trader then trade TA.

Having a trading plan is nice but knowing yourself and risks are even better. What are you risking per trade? Money management? How short are you going to cut your losses? Focus on risk and the percentages will take care of themselves.

I agree with this personally - my charts are 100% nekkid. That said, there's nothing wrong with chucking in some MACD divergence, fibs etc for confluence if you want to.

 

[dominationFX]

Thanks all. This is a great site and I am making online friends now. When do I stop demo trading and use real money? It gets closer, but my nerve goes. Any advice?

 

[JahDave]

Thanks all. This is a great site and I am making online friends now. When do I stop demo trading and use real money? It gets closer, but my nerve goes. Any advice?

I started trading real money with a micro account. That way each pip is only about 10 cents, so you won't feel so much pressure. Also just keep reading and learning different things and you will eventually find what fits you best.

Good Trading

 

[luckyd1976]

When do I stop demo trading and use real money? It gets closer, but my nerve goes. Any advice?

When would you feel you can afford to lose it? lol

No its about being comfortable with your skills. DEMO trading the platform you are about to trade is a very helpful tool. Go back to Demo when testing new strategies as well.

When you finally come off of Demo, trade your strategy in a small scale (1 lot or contract) and ramp it up as you get more comfortable with your picks and or adjustments.

 

[William Waller]

Thanks all. This is a great site and I am making online friends now. When do I stop demo trading and use real money? It gets closer, but my nerve goes. Any advice?

This will be personal, and might also depend upon how you're trading.

First , ignore those people who tell you that demo/paper is a waste of time, because they're talking bullsh1t. Demo is very useful when you're starting out because you WILL make a ton of stupid mistakes (everyone does). You will also probably want to test out ideas in real time. During this period you will be gaining vital experience - why pay for it when you can get it free?

When you're profitable on demo/paper, open a small account (SB or something like Oanda) and repeat the process. The reason you start very, very small is live is totally different to demo (for most people) even if you've only got pennies on the line. Again, you are almost certain to make a load more stupid mistakes - why pay more than have to for the experience?

When you're profitable on your tiny account, feed a little more in, and so on and so forth.

Don't worry about how long it takes, because it takes as long as it takes. The important thing is that you do what is comfortable for you, but for the sake of putting a number on it, try 3 profitable months per stage before you move to the next (so each stage could take 6 months, a year or whatever).

If you have to have something at stake, fair enough I can understand that. But make sure it's pennies - there is a lot of learning to do, so do as much as you can for free and the rest as cheaply as possible.