Forex Traders' Evolutionary Steps

Admin · Newbie Joined: Sep 05, 2004 Posts: 3

It is known that a forex trader goes through the following evolutionary steps...

1) Market reading, deciding if is it going to fall/rise
2) Setting targets for the move
3) Trying out various Tools and Indicators
4) Experiment with Stop Losses etc and the basics of Money Management.
5) Formulating trades, thinking in terms of "If-then-Else"
6) Thinking in terms of Probability and Risk/Reward

Only after reaching this stage can a person move onto the next stage of strategising on a medium-long term basis, and start dealing with the question of Position Sizing, capital allocation and managing multiple positions.

I feel it's quite true. What do you think? Comments are welcome.

Guest · Posted: Mon Jan 03, 2005 11:31 am Post subject:

1) so for an appropriate time frame to cope with rising or falling of a currency ....in my opinion longer time frame is easier to predict but it would have to depend on the confidence of the investor to realize its target when its prediction faces a sudden setback ....eg: EUR ,its current primary trend is bullish but faces extreme secondary reaction which we see eur retreat several time...

2) Still face problem in indicating an appropriate target ....it's pretty much difficult to assume fundamental news would affect the current forex market....for daily forex trading...short term forex trading can be risky.

3) currently using MACD and RSI both trend and momentum indicator it self...but still need more exposure.....to more understanding in technical and fundamental analysis...any guideline for me to know how to use MACD for appropriate time frame?..and RSI too....Technical analysis does help a lot..for better understanding of the market that we couldn't see with our bear eyes i supposed.

4) yet still face problem in indicating when and where to put my stop loses...
any tips on that....and by the way any info that could be useful for basic money management.

5) Formulating trades, thinking in terms of "If-then-Else"

6) Thinking in terms of Probability and Risk/ Reward

-->Can u explain more on this....for number 5 and 6

Kaabi · Newbie Joined: Aug 28, 2005 Posts: 96

I think those are the appropriate steps to take when dealing with Forex.

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