The Mastering Forex in 2019 webinar focused on 5 steps that would help you start the new trading year in the best possible way! Check out the steps below:
Step 1: Pick a Strategy
The most obvious step is to choose a strategy and stick to it. It may seem trivial but it is surprisingly easy to not accomplish for many people. It is important you choose a strategy that works for you which leaves a lot of options open to you. I do recommend checking my own strategy as it is flexible to a lot of different trader preferences. You can look at my free strategy as well as my paid strategy.
Step 2: Get a Demo Account
There are a lot of demo accounts available with many great options. You should look at a few of them and try some different platforms out. It is important that you feel comfortable with your broker and enjoy using their trading platform. I recommend using Oanda and Dukascopy based off my experience.
Step 3: Define Your Risk
Your risk management is going to play a pivotal role in your success as a trader. There is no getting around that fact. When you are starting out, 1% risk is the best. You can look to adjust that after your first 6 months though. Don’t make the same mistake so many new traders make and ignore this part of your trading. It will help you reach profitability much faster!
Step 4: Set a Trade Goal
When you are trading it is important to set a trade goal. I recommend a goal of 30-100 trades, but 50 or more is ideal, if before you open up a live account. If you can’t manage 50 trade in 6 months then falling back to 30 trades is acceptable. It is crucial that you log these trades in order to look back on your results and improve from them. There is a lot of useful data that you can use to your advantage. You need to stick to your strategy for 6 months in order to get a useful sum of data. You can use the free journal I provide if you need one (make sure you are logged into the site).
Step 5: Review and Improve
Looking back through your trading journal and assessing your results is going to accelerate your progress immensely. If you want to be a profitable trader you have to self-assess and improve from your mistakes. This is going to enable you to make changes and keep reaching higher goals.
Frances Duluora
Thanks for the steps. Pls how do the time frames affect my trade because I see that they’re all moving in the same direction. Thanks
Nick
It’s important to use multiple time frames as this gives your context on how price has been behaving. When you see a daily candle, you are not able to get a glimpse of the relative strength of buyers and sellers. Looking at multiple time frames will also better inform your placement of stop losses, take profits, and entry points. It is a good habit to get into and will help you achieve profitability!
Paul
Hi, i’m an intraday trader, trading on the H1 timeframe. Going by your strategy, when do I pull the triggger on my hourly chart: Is it when I spot the indecision candle on the daily chart or I just simply look for it on my hourly chart?
Nick
Hey Paul – You should be looking for breaks of recent lows/highs and past bounces. Use these to inform your entry. It’s important to look at multiple time frames so you get more context of price’s movement.