Originally Posted by Wireless

Hi all

Im kinda new to trading. finished a course of technical analysis just recently, and started testing what i’ve learned. after sometime a realized im missing something. the thing i was missing is a strategy, and a consistent way of trading.

I tried googling for that issue but came across so much different and confusing info, which left me clueless and scratching my head.

Thanks in Advance.

Isac Aze.

Admin (AT) iStartup (Dot) co (Dot) il

Hi Isac,

Thanks for your question. I understand your dilemma and I want you to know that you are not alone in that situation. Lots of emerging traders get into the »paralysis by analysis» stage when it comes to tailoring a trading plan that meet their needs. It also boils down to the question of »What Do I Do Now, And Why’? How do I incorporate these technical info and transform them into a holistic and practical plan of milking money off the forex markets. Well, here is suggestion:

Open the charts of the currency pairs that you want to trade for that day and apply the TOP DOWN trading rule. Start from the monthly charts, down to the Weekly charts,Daily,4 hr,1 hr and 15 min charts. Notice the current trend (bullish or bearish ) on the charts. Focus more on the hourly and 15min charts and look for the indications of the bias for the coming data, and decide what sort of setups you should be looking for to get in to a trade.

Like the Fibonnacci fans would do, they look for price to cross the 50% retracement line before going short in a downtrend or going long in an uptrend. Elliot wave fans look for the 3rd or 5th wave to occur before pulling their triggers to the observed bias.Nison’s Candlestick fans might look for a bullish /bearish engulfing pattern and so on.

Writing out a trading plan for the day, with specific bias, and estimated entries, stops and targets would go a long way in helping you out,Isac. Keep a faithful log of your trading decisions and their outcomes, as you TAKE ACTION on your plan.Plan your trades, trade ur plan». Check the results at the end of the day and see where you went right or wrong. Take note of your observations, and plan not to repeat them next time.

Ohh, by the way, if you are into intraday trading, please keep an eye on the news(fundamentals). Most times, they tend to override TA due to the huge momentum and volume of trades from market reaction.