I believe any instrument is risky if one is uneducated to trade. Too often too much time placed into getting in and very little on getting out or managing the trade to the right of signal bar. I know in my case it was that way when I was first staring to trade. Unless you have stop and reverse system, you going to have to learn to see the signs the trade not working out or market is possible going to reverse. Read up on "Rounding bottoms/tops", the distances between pivots are narrowing will give this rounding shape and most indicators will show divergence. Most of my profitable trades happen pretty quick, like in 3 minutes and twenty seconds, so I have a time rule that when price is filled I have to lock in one tick or new target is plus one tick, let someone else pay my fees cause these really add up by end of your trading.
I don't do all that much Forex trading as I prefer currencies futures cause of the extra couple of bucks, HOWEVER, if the spread is too wide in the futures compared to Forex, will do with forex. It's nice to have options.
Many will PM asking me which market is easiest for a new trader, I think E-mini Nasdaq is most forgiving. Too often in ES, it is difficult to get that one tick one wants to pay off the fees when in trade too long and having to be happy with entry price and exit, or simple not enough volume at Plus one tick profit, whereas Nasdaq always seems to behave. But if you not done enough study and simulated trading, no market is easy.
Don't need many signals, Triple Top/Bottom AFTER extended trend and retrace to a moving average then breakout, two signals, one trend and one counter-trend, using time rule so don't overstay your welcome. Your back testing will say how much to use for protective stops and targets. Learning price patterns will say one of two things, when not to take signals and when to either tighten stops or get out. All done by back testing and studying price action.
I use ten signals for entries and all same money management rules for all instruments I day trade. But do your homework of back testing to make it work or not work for you.
I don't do all that much Forex trading as I prefer currencies futures cause of the extra couple of bucks, HOWEVER, if the spread is too wide in the futures compared to Forex, will do with forex. It's nice to have options.
Many will PM asking me which market is easiest for a new trader, I think E-mini Nasdaq is most forgiving. Too often in ES, it is difficult to get that one tick one wants to pay off the fees when in trade too long and having to be happy with entry price and exit, or simple not enough volume at Plus one tick profit, whereas Nasdaq always seems to behave. But if you not done enough study and simulated trading, no market is easy.
Don't need many signals, Triple Top/Bottom AFTER extended trend and retrace to a moving average then breakout, two signals, one trend and one counter-trend, using time rule so don't overstay your welcome. Your back testing will say how much to use for protective stops and targets. Learning price patterns will say one of two things, when not to take signals and when to either tighten stops or get out. All done by back testing and studying price action.
I use ten signals for entries and all same money management rules for all instruments I day trade. But do your homework of back testing to make it work or not work for you.
