Go naked...while reading charts
Metatrader is packed with various multi-coloured software tools, most of whom are considered lagging indicators and are based on moving averages of different varieties. We would advise you to delete all them of from your platform so that you can concentrate on using the price chart without getting distracted.
We encourage you to spend time on learning to read the market using a naked chart : mainly the elements of time, price and exhaustion points. For practising this you will be required to use Vertical Lines (for plotting timelines) , Horizontal Lines to mark price action exhaustion points (also called support and Resistance or demand and supply lines). Live price quotes will be provided by MT4 broker through their platform.
Start practising frequently and spend some time on observing how the market is driven by imbalances in supply and demand and sentiment as well.
We treat Spot FX trading as a business, and you are expected to put in effort, time and money to pick up various skills that will be required to run this business.
As a self-directed trader, it's a challenge to handle various tasks. You should try not to over-complicate the process while doing a little of bit of everything. Keep it as simple as possible.
"WHY I do, WHAT I do, the WAY I do it." Let's understand this endeavour in these terms.
Why I do : A rationale should be there for developing trading ideas based on understanding of the market structure and forces active in it.
What I do : We put our faith in simple setups, strategies and systems. You are being introduced to a universal model based on four components of constructing a strategy. You can build up to 1,000 strategies from simple to complex using the Breakout Model.
The Way I do: We believe in
- Trading small lots
- Using lower leverage
- Putting wider stops
FX trading is a business which largely involves guessing and exploring probabilities since you are exposed to only the tip of the market iceberg.
I like mastering the breakout method.