Some useful trading tips based on my experience
Markets Forex

1 Like 0 Dislike 2 Replies
1 year ago

Hi everyone,

Let me share a few personal insights based on my own experience. This may be helpful for some of you, especially beginners.

1. Don’t try to follow lots of indicators. An indicator is useful for you only if you understand it thoroughly. So, focus on just a few indicators (preferably those that you understand intuitively). Keep using them and soon you will master them. That is when the indicator will really start working for you and giving you useful and profitable insights.

2. Similarly, do not try to follow too many timeframes. It will leave you completely muddled and confused. Follow just 2 or 3 timeframes – that will ensure that you have a good command over the trends across those timeframes.

3. Speaking of trends, every trend first shows itself in a short timeframe. Then, it either breaks down or continues over the longer timeframes. So, do ensure that you follow at least one short timeframe.

4. Do not try too hard to spot patterns. If you put in enough time and effort, your mind could create and spot every possible pattern even where none exists. So, understand the nature of important patterns and then look at charts quickly to see underlying patterns. If you feel you have spotted a pattern, check whether it really matches/satisfies the standard conditions for that pattern.

5. Do not keep stops that are too tight. Every security has at least some volatility. If your stops are too narrow, your positions would close quickly most of the time due to inherent volatility – which means you will not be able to profit even when you have taken the right positions.

These are some tips that might be useful for you. I will post some more as they come to mind.

All the Best!

Posted 1 year ago 2 Likes   0 Dislikes

That is really smart advice, Mike. Thanks! I am definitely going to make a note of these points and will try to follow them. Thanks again.

Posted 1 year ago 1 Likes   0 Dislikes

Helpful post, Mike. Many thanks. Just out of curiosity, how long have you been trading? And, generally, which markets do you focus on? And, could you also share what kind of trading strategy or system you follow? Thanks again.