Quote from phenforum:
Well, it's from a book I read by some
Russian guy, Alex Kresch-something-sky.
Apparently he earned 20% plus per month.
BUT usually about 2/3 of the trades
went bad. And, that is what I'm dealing
with, so obviously I need a better way
to do this.
I want to learn, but I'm not sure what
to indicators to use and what to avoid.
Phenforum, you must be referring to the "WWW Trading System" e-book, by Alex Krzhechevsky, right? Hope you didn't pay $99 for it, as it's available free on p2p.
Of course, that's "18% a month and more", not 20%. Get your facts straight, would you?
Unless he revised it.
The 2-MA crossover system, 5 and 13 or whatever, is probably as old as TA itself. By itself (without setup conditions, without filters, without proper exit management and without regard for the current market mode), it is guaranteed to do one thing: bleed your account to death slowly but surely.
That e-book, and probably many others like it, presents a crude, idealized, over-simplified methodology. Becoming proficient at forex trading may not be rocket science, but it's not that one-dimensional, either. Or else the winner / loser ratio among traders would be reversed, wouldn't it?
My advice, FWIW? Take a good hard look at posts by Brites, then practice what he's talking about, in demo mode first. Look up the website of Joe Ross, there' plenty of good free info there on understanding price action. Then pick up his most recent book, "Day Trading." If you're committed and possess (or willing to acquire) the right mental attitude, those steps alone may get you a long way toward success.
For a decent, hands-on application of TA to forex, written by a trader, check out "ForeX Trading for Maximum Profit" book/CD, by Raghee Horner. Since you're 19... are you planning to go to college at some point?... you've got all the time in the world. Above all, this being your full time job, you can never spend too much time observing price action, in real time. Initially, pick 1 or 2 currencies at most, e.g., EUR/USD and GBP/USD. Get to know them even better than you know your girlfriend... Then, when you get consistent positive P/L going, get yourself a better GF. Or something. Have fun with it, and best of luck to you.
