karkaore

Forex Trading

7 posts in this topic

As the COVID-19 is obviously ruining all of my plans of letting loose on summer I've started looking into forex.

Anyone doing/done trading? How did it turn out for you?

Also, what do you guys think of Shiva Krishnan on YT? Seems to me as a genuine, professional trader sharing the how-to's.

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@karkaore There is money to be made in trading. But most investors are beat literally by people who just hold investments in stuff like the S&P 500. Now if you want the money to come faster and you want to practice, then you can make plenty of money becoming a good trader. I am more into buying and holding investments that I believe to be good. But I know that I am not the best investor and there are so many things out there I cannot have knowledge of. I am aiming to build a portfolio based off information from Warren Buffets value investing style, and Jack Bogle's indexing. But my research is not going to stop there. That is just the start of it really and adding my own stuff to it, but also building a foundation of stuff that is known to work. 

It would be wise to learn about all of this stuff in general I think if you plan to trade or not. But I would suggest building a portfolio that is for the long term as well. There are so many things out of your control and things you will not know that it will be hard to predict value of things over the long term. 

Are you looking to do this as a primary income, or just an investment strategy? What attracts you to foreign exchanges? 

I can't really comment on the person showing the strategy, but I will say there is a lot more people out there giving bad investing advice, than anything good. 

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@Average Investor Haven't looked into foundations just yet. Looking into currency pairs at the moment. Gathering info on it, checking criteria, trying to form a strategy around EMA's.

I am thinking about trying it as a primary income although now it will be an investment as I don't see myself in a day job. I will have plenty of time in the months to come, a lot learning can be done. I know there are demo accounts that you can train on. Have any to recommend? What caught my attention is the possibility of spending so little time on meeting my survival needs.

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Posted (edited)

This is one of my favorite sites for look at companies so far for a quick glance https://simplywall.st/stocks/us

I have used a dummy trading one in the past, but I can't recall what it was. I don't know what a good one would be.

I have heard really good things about this site and planed to use it more here is their

simulator https://www.investopedia.com/simulator/

One of the biggest things with trading like that is it is quite similar to gambling to the brain. It can be really attractive, but like I said most people do not beat the markets. A very high percentage of people make more money just putting it into index funds and wait. But that is not to say you cannot do it. But I think there will be a lot more to it and it will take a lot of time and energy to get it to a high enough level. You would also have to stake higher and higher amounts of money in order to make a living with it. It is totally up to you. I think investing is good to learn about though all around from my experience. I just think that a lot of people promote trading as a get rich quick type of thing, when it is not. Only a small percent really hit it big with trading if you look even in just trading groups with thousands and thousands of members. More practical though could be techniques like swing trading though and that could help yield a better profit in something you are knowledgeable about to start in. I would also have to say I have never sold an investment. So I can't really anything about trading from experience, but more from what I have observed. But I have done well by just letting things grow over the years. 

Edited by Average Investor

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Hey, your thread caught my attention.

Currently studying the FX markets as well, taking advantage of this downtime, staying at home for who knows how long, and committing to coming out as a great trader. Honestly, I've been introduced to Forex in 2016, and I've been super interested in learning the strategies, but I've been on and off with it these past few years. Some months I've been serious about it, some months I've been distracted with working a job, some months I've been taking a break from the markets. So it has really been on and off for 4 years, and there's still a lot for me to learn at this point. But I will say that a lot of it is starting to make sense to me now. At this point I've watched a lot of videos from different teachers, did a bit of live and demo trading, and learned from a couple trading courses out there. To be honest, I'm still not where I want to be with my trading career but its definitely getting there. Its a matter of time, developing a trading plan, sticking to that plan, and improving my trading psychology.

Here are the some of the most important things I've learned (I'll try to simplify it as much as possible):

- Your psychology is HUGE when it comes to trading. Successful trading is 60% psychology, 30% position sizing, 10% system/strategy. You don't need the most complex advanced Bat Patterns, ABCD, Flying Wedge, Upside-down crocodile bullish momentum, whatever the hell patterns are out there. There's hundreds, maybe thousands of different strategies to trade the markets, but all you need is ONE strategy that wins 60-70% of the time and master that one strategy. Don't waste your time learning all the different indicators and patterns out there. Also, its easy to get emotional when it comes to trading, especially if you want to be a scalper. Scalpers make the quickest money, but trading the lower time frames might cause you to gamble your money, so I wouldn't recommend scalping until you're a decent trader. Managing your emotions is key.

- The TREND is your FRIEND. NEVER buy in a downtrend, NEVER sell in an uptrend. Its simple, only buy in an uptrend, only sell in a downtrend. If you don't follow that rule, you're just risking a losing trade.

- In addition to the above point, make sure the time frame you're looking at is in alignment with the higher time frames. So for example if you see an uptrend on the 15min chart, and you're looking to place a buy order, make sure the price action is on an uptrend on the 1 hour chart as well.

- Only risk 1-3% of your capital PER TRADE. Its so easy for us to want quick money so we try to flip an account from $100 to $10000 by risking 100% of your capital in one trade. Don't do it, no matter how confident you are in a certain trade. The reality of trading is that a good trader consistently makes 5-10% of his capital per month. When I heard that at first, its like what? That's slow money, so I try to make more than that, and I blow the account. Because that means, a $10K account only makes around $1000 a month, or a $1000 account only makes around $100 a month. Its easy to look at professionals and be like wow, he makes $3K profit per trade, how?? It's because their trading account is more than $100,000, and they still stick to the 1-3% rule. The more you have, the more you make.

- Best ways to develop your skills is by back testing, demo trading, looking at charts, every single day. Experience beats theory any day. Watch all the Youtube videos you want but it will never beat experience. But the theory is still important, learn first, then implement.

- Learn from as many teachers as you can, but like I said, its easy to waste your time trying to use all of their trading styles. Just pick one you like and stick to it.

So those are some important points I've learned in my journey, hope it helps. Personally my trading style revolves around support & resistance, trend lines, a few patterns, and a few indicators. The teachers I like to follow are the ones who are young and rich, because I'm still 24. So some of those teachers would be like Quillian Black, Ryan Gilpin, Daniel Savage. But I still follow other traders like Akil Stokes, Adam Khoo, Navin of Urban FX, those in the Falcon FX community, etc.

Not much to say about Shiva Krishnan, as I haven't fully watched his videos but he has a different trading style and I don't doubt anything he does.

You mentioned you're developing a strategy around EMA's. Another trader who likes using moving averages is "Adam Khoo," I suggest checking his stuff out if you want. Another teacher I suggest is "Navin Prithyani" or Urban Forex. A lot of teachers are big into trading psychology, but no one I've found has gone as deep with it as Navin has. He literally has a course dedicated to helping improve your trading psychology.

 


"Intellectual growth should commence at birth and cease only at death." - Albert Einstein

 

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@karkaore Welcome. And by the way I forgot to mention, babypips.com is a good site for learning the basics of Forex, if you haven’t checked it out already.


"Intellectual growth should commence at birth and cease only at death." - Albert Einstein

 

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