Currency trading is a business. It is not a place for amateurs. If you are new to currency trading, you should watch the video below that shows a documentary on how a professional currency trading Andrew Barnett starts the day. In this documentary, Andrew Barnett shows how he make the trades during the day.
https://www.youtube.com/watch?v=VRhxEaXP2ho
As you can see in the above video, Andrew Barnett takes his trading very serious. This is the attitude you should also adopt. First you need a strategy. Developing a strategy can take some time. You should not rush this step. Take your time to find the strategy that best suits you. Did you read the post in which we explain our strategy that makes 200 pips with a small stop loss of 20 pips? The idea behind this strategy is to catch the big moves in the market with a small stop loss of 20 pips. Suppose you have a winrate of 50%. This means in a series of 10 trades, you are going to win on average 5 trades and lose 50 trades. Our strategy aims at making 200 pips with a stop loss of 20 pips. So losing 5 trades we lose 100 pips and making 200 pips means we make 1000 pips in 10 trades. So in 10 trades we make net 800 pips. This is how you should develop your strategy.
Once you have the strategy, you should test it thoroughly so that you know how it works. It is a good idea to develop an indicator that monitors the charts for you. This will make your life real easy. You don’t need to monitor the charts for hours waiting for the signal. Monitoring the charts for hours is the most tiring process and is one of the main reasons why most new traders burn out.
Professional traders know a lot of coding. This helps in making their trading systems automated or semi automated. You should also learn coding. Learn MQL4. Learn R. R is a language that has been developed for doing data science. Don’t worry. Now a days learning these languages are not difficult at all. If you have passed high school, you will be able to learn these languages. There are many resources freely available online that can help you learn these languages. Once you have learned how to code these languages you can test your strategies and then automate them. As said above this will help a lot in making things easy for you. With automation you don’t need to check the charts frequently after each hour.
Learn a little bit of statistics and time series analysis things like how to model a financial time series and how to do a regression analysis. Simple statistical models that use auto regression on time series can be a great tool that can tell you about a big move before it starts. Time series analysis is based on the premises that past values of a time series contain information about the future values. This is also the premise on which technical analysis is also based. So you can use statistics based on time series analysis to confirm your technical analysis.
Swing trading is a good idea. Swing trade can last for a few days and you have many hours before you make your entry and exit decisions. Read the post in which we explain in detail a swing trade that made 200% in 18 days. Our day is very busy since we are into automated system development. We enjoy every moment of it. Our focus right now is to develop an automated system that can double account every day. This automated system is based on our Double in a Day Strategy. Double in a Day Strategy entail in catching a big move something like 100-200 pips and then using it to double the account with low risk.