Stops

[nsideus]

Quote from bigmrfrank:

... Now set your stop 10 - 20% past that range and there is your stop....

This is very important. Make sure you have enough of a buffer between the support/resistance level and your stop. During low liquidity times, other traders may try to make a run on the areas where they think there are a large number of stops. The market will move to hit all the stops, then immediately reverse.

This will be very frustrating if it happens to you when you are trading live. The market may eventually head in your direction but you're out of luck if your stop got taken out. This is one of the reason I only trade options now. I'm immune to whipsaws taking out my stops.

Also consider the behavior of the pair you are trading. Something like the EUR/USD does not move like the more volatile GBP/JPY. You'll generally need much bigger stops to avoid whipsaws in the GBP/JPY.

When I started in forex I traded primarily the GBP/JPY, but I wish I would've started with a pair that had less noise, like the EUR/USD or USD/JPY.

You should also try opening a few demo accounts with other brokers to get a feel for the differences if you haven't already. Personally I don't think forex.com is a very good broker.

 

[T-Bone Trader]

Quote from cashmoney69:

most people probably trade this way. Why enter the market if you didnt think price was done falling?

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note to OP. The only real difference is the mental aspect. Once real money is on the line, you think differently. Like I said, only risk 3% or less on your account and you'll be fine...too much risk and youll be a nervous wreck, and wont last long. Use this time while on demo to find a style of trading that best fits you, and then back test that style. When does it work, and when does it NOT work. for example a trader that trades moving averages should know in choppy markets, that their system will NOT work, but in trending markets, they work great.

If I were you, id take screen shots of all my trades, and after each month, study them, what setups did you take, and why did they work, or not.

like others have said before trading is 80 to 90% mental, and 10 to 20% mechanical, meaning that, your success is not so much the system that you trade, but how you trade it.

An organized, and disiplined trader is a successfull trader.

cm

Some real good issues were brought up -- I was always told that if you have good discipline and a good trading system, you will be a good trader! Still working on the discipline part -

 

[cashmoney69]

Quote from JamesL:

I assume your definition of lot size is 10k not 100k (which is considered standard lot size) as each pip on the pair you mentioned would be worth only $1. Right?

yes