There are so many on the Internet who are willing to share their experience with a novice trader. But they all forget one rule: “Do not give advice until they are asked.” Those who need advice are unlikely to be able to use it. Those who are able to take advantage of them do not need advice.
- Indicators. Should I use indicators? Definitely worth it. They were created by intelligent people, but everything is good in moderation. Why can not I use the standard indicators MT4? Are they obsolete, do not work? People tend to decorate the Christmas tree. It seems to them that one Christmas tree toy is not enough, and they try to decorate the Christmas tree as much as possible. The same is true in trading: for some reason, many people think that you need to overload the chart with indicators, use some super cool new Forex tools – and, most importantly, do it all at once. And then everything will work for sure. This is an illusion.
Profi trades with a bare chart. He doesn’t even need to put tools, he already automatically in his thoughts draws the behavior of MA or stochastics thanks to his experience, brought to automatism. And anyone who does not know how to make money on simple tools will not do it on more complex ones.
Output. Do not listen to anyone, learn the basics, materiel. Does the ordinary MT4 indicator seem boring? This is because you do not understand how it works and what is inherent in its formula. Do not give the illusion that by complicating the schedule with additional tools, you will get the “Grail”.
- Trading system. This is a set of rules, the implementation of which gives a profit. No profit – the system is underdeveloped. Everything is simple. Key components of the TS: timeframe and asset, trading time, rules for opening a position and exiting the market, risk management (length of stops).
The longer you try to build a trading system, the more likely it is that you will not succeed. “Woe from Wit” – attempts to complicate any Forex tool in most cases are doomed to failure. Do not waste time compiling a trading system – better understand the essence of indicators.
What information do you get from the indicator? “A signal to open when the lines cross” – this is the answer of those who automatically, like parrots, blindly follow some well-established theses. You must understand how price behaves, and an indicator is a mathematical representation of its behavior. If you do not understand what is happening on the chart when building the trading system, you will receive a loss.
Output. It is important that you follow the rules in Forex. When the rules are violated, it is difficult to conclude where the mistake was made. And it makes no sense to complicate the trading system. An algorithm must be developed, discipline must be respected – and then there are chances for success.
- Pending orders. “Is pending orders bad?” It is a reasonable question for traders because many strategies are built on pending orders. For example, news trading, where orders are placed in both directions, and then a pending order that is not working is then canceled. Using this scheme, you thereby give the broker extra information.
Question: How confident are you that you are working in the real market, and not inside the broker’s “kitchen” system? We are sure no one knows for sure. At least most traders will not give convincing arguments. By placing a pending order, you show your goals in advance to the broker. And if the broker has a desire to harm you, then why not use this information? To warn DC about their plans means to incur additional risk. Meaning?
Output. Do not tempt fate. Not sure about the broker (and you can never be 100% sure) – work on real orders. And if you place stops, do not follow the classic recommendations “slightly above the previous maximum,” “below the minimum,” or “at such and such levels.” Market makers know the places where the stops are most concentrated and use them to open their deals.
- Trading advisors. The advisor is the embodiment of a working trading system in automated trading. The dream of every trader is to press a button and watch how the deposit increases. “Catch a pike/goldfish and monitor the fulfillment of desires.” Alas, this does not happen. Somehow an experiment was conducted: manual trading against algorithmic trading. A trader who used automated Forex trading tools was asked how often he makes corrections to the program. “Everyday”. So how is this different from manual trading? The theory says that the adviser should be optimized after a long time. Practice shows: in order not to be left without a deposit, it is better to follow the robot and adjust its actions constantly.
Output. The time spent searching, testing, optimizing advisors (and even more so the money) is time wasted. Want to believe in fairy tales? Then it remains only to wish good luck.
- Forums and chats. It seems to be a useful tool for trading on Forex, but it seems not. Why does a trader even go to the forum? To justify my insecurity, to show ourselves smart in front of others, just for the sake of curiosity. Forums during trading can be confusing, confusing. No wonder they are often used for manipulation. They have their own advantages: exchange of experience, stress relief – but all this only in their free time from trade.
Output. Spraying leads to loss of concentration and errors. Or earn, or do self-training. Understand that you need time for analysis and help – pause. Stop trading and devote a day or two to three forums, chats, etc. Don’t waste your time on forums without need.