Dear all,
I am new to the Forex world however have some stock trading experience; I already know it is a totally different market as a negative zero sum game, I guess it is not called the "slaughter house" for nothing and that the figures of 90 to 95% of the traders loosing in the long run is true.
I would like to show you my trading strategy in order to have some feedback from senior traders (i.e which means good one or very wealthy that still hope to hit the jackpot..) and as well because I think it is important to write one's plan down if one's want to follow a plan, it can be very easy to take crazy risk in this game and to blow it's own account in a few clicks without any.
I have at my disposal a capital of 10 000 GBP on a spread betting account.
I should not loose more than 1% per trade and per day.
I use stop loss to protect myself, therefore I will have two trade strategies.
2.5 GBP per pips with a 40 pips SL
5 GBP per pips with a 20 pips SL (in purpose to trade the news where the volatility can be very high)
if my account goes to 9 000 I will reduce by half the risk
it if goes at 8 000 I will do the same again and so on.
I will double the size of the position once I have double the starting capital.
I should put a SL at the break even point when the market has moved of 40 pips in my direction.
In case of extremely volatile market I should enter and follow the momentum (the Fed announcement of the 4tf of nov at 19h15 for instance resulted in some straight quasi continuous move of 100 pips done in no times in the market), hold as long the momentum is with me and close at any pullback or loose 4 pips ( at least try to do so..).
So in a much more video-game way I admit.
I am planing to trade the news in priority, without any technical analysis which appears to be irrelevant when big news comes out like FED announcement or unemployment figures.
The other time trade should be done using support and resistance level as entry and exit, in the sens of the global market trend (which can be tricky as different timescale would give different result).
I should not trade exotic currency but give preference to tight spread currency.
I should not have more than 1 position at the time until I double the starting capital.
my risk reward is about 3 times the risk.
I do not want to make a too much complex plan at first, as simple, I hope it will give better result and my knowledge of money management is basic.
thank you for reading this, any comment or ideas to share are welcome.
Be the god of FX be with you.
I am new to the Forex world however have some stock trading experience; I already know it is a totally different market as a negative zero sum game, I guess it is not called the "slaughter house" for nothing and that the figures of 90 to 95% of the traders loosing in the long run is true.
I would like to show you my trading strategy in order to have some feedback from senior traders (i.e which means good one or very wealthy that still hope to hit the jackpot..) and as well because I think it is important to write one's plan down if one's want to follow a plan, it can be very easy to take crazy risk in this game and to blow it's own account in a few clicks without any.
I have at my disposal a capital of 10 000 GBP on a spread betting account.
I should not loose more than 1% per trade and per day.
I use stop loss to protect myself, therefore I will have two trade strategies.
2.5 GBP per pips with a 40 pips SL
5 GBP per pips with a 20 pips SL (in purpose to trade the news where the volatility can be very high)
if my account goes to 9 000 I will reduce by half the risk
it if goes at 8 000 I will do the same again and so on.
I will double the size of the position once I have double the starting capital.
I should put a SL at the break even point when the market has moved of 40 pips in my direction.
In case of extremely volatile market I should enter and follow the momentum (the Fed announcement of the 4tf of nov at 19h15 for instance resulted in some straight quasi continuous move of 100 pips done in no times in the market), hold as long the momentum is with me and close at any pullback or loose 4 pips ( at least try to do so..).
So in a much more video-game way I admit.
I am planing to trade the news in priority, without any technical analysis which appears to be irrelevant when big news comes out like FED announcement or unemployment figures.
The other time trade should be done using support and resistance level as entry and exit, in the sens of the global market trend (which can be tricky as different timescale would give different result).
I should not trade exotic currency but give preference to tight spread currency.
I should not have more than 1 position at the time until I double the starting capital.
my risk reward is about 3 times the risk.
I do not want to make a too much complex plan at first, as simple, I hope it will give better result and my knowledge of money management is basic.
thank you for reading this, any comment or ideas to share are welcome.
Be the god of FX be with you.