I am not yet a successful trader, which I define as making constant profits by following an exact trading plan. This means having the same setups for entry and exit and not diverging from the plan based on emotional or irrational conflicts. This means no random entries, no sudden stops, and none of those things which do not require patience and discipline.
However, I think that if I want to be a successful forex trader, then I must go to the root/ source.
I am not posting to teach, I am posting how I learn.
I started out like everyone else, learning the basics of how Forex works.
From the What / Why / Who / When / and How to trade FX , to risk management/ stop losses/ scaling in and out/ currency correlation.
Did I just outline some of the things taught at the School of Pipsology at Baby Pips? Yes. Because I graduated from there too like some of you.
Anyways, so when I started trading I used Moving Averages (MA). SMA/ EMA/ KAMA.. whatever. But as simple as MAs sound, it's too complex.
So to break it down... peeling an onion here:
1. What is MA? It uses the movement of prices and averages them.
2. What can be learned from the movement of prices? This is Price Analysis (PA). Seeing how prices move as bars shown in charts can signal changes in trends and stuff.
3. Why does price move? Price moves because it has to, when supply and demand/ sellers and buyers in the fx market Make price move. This is Volume analysis (VSA).
If I were to ask what creates supply and demand.. well then that would be fundamental analysis, which came before technical analysis.
VSA, used to confirm PA, along with the use of some MAs as support/ resistance... will be how I trade.
However, I think that if I want to be a successful forex trader, then I must go to the root/ source.
I am not posting to teach, I am posting how I learn.
I started out like everyone else, learning the basics of how Forex works.
From the What / Why / Who / When / and How to trade FX , to risk management/ stop losses/ scaling in and out/ currency correlation.
Did I just outline some of the things taught at the School of Pipsology at Baby Pips? Yes. Because I graduated from there too like some of you.
Anyways, so when I started trading I used Moving Averages (MA). SMA/ EMA/ KAMA.. whatever. But as simple as MAs sound, it's too complex.
So to break it down... peeling an onion here:
1. What is MA? It uses the movement of prices and averages them.
2. What can be learned from the movement of prices? This is Price Analysis (PA). Seeing how prices move as bars shown in charts can signal changes in trends and stuff.
3. Why does price move? Price moves because it has to, when supply and demand/ sellers and buyers in the fx market Make price move. This is Volume analysis (VSA).
If I were to ask what creates supply and demand.. well then that would be fundamental analysis, which came before technical analysis.
VSA, used to confirm PA, along with the use of some MAs as support/ resistance... will be how I trade.