Hey, I'm looking to make money trading (long-term..)
I was told by somebody on here, that maybe starting a journal on here might be good for me seeing as I don't trade $5000 or anything else like that until I can consistently make money paper trading. I understand that paper trading is not "real" trading but like I said I'm not going to risk blowing up my account - shame I can't start with a small account and grow my account, going forwards... anyways, after watching these videos;
I've decided to use a 50 day moving average, the MACD and ADX - this isn't the first time in the markets, nahhh I was stupid and blew my all my savings - just reading hurts but you learn from mistakes I suppose? Anyway, this meant stop seriously trading for a 4 to 5 years when it comes two entries and exits I'm going do it the right way this time and only going to look to take a long positions, when set-up happens...
Price above 50 day moving average
ADX above 25
MACD signal line on the upside
And only take a short position when..
Price below 50 day moving average
ADX above 25
MACD signal line on the downside
Unlike when I blew my account and savings with it - I will draw up support and resistance lines/ swing highs and swing lows - the plan is to set my stop loss at a recent swing high or swing low and look for a 1:2 take profit set-up... cos I'll set stop and take profit levels, chasing profits, getting out of trades early won't happen - unlike last time - well that's the plan.
Not sure if this is what you mean, or it's just way too simplistic but from my point of veiw this meets all my entry requirements...How about posting a historical chart showing your perfect setup with the entry points, initial stop loss and possible price targets marked.
Don't copy the examples in the YT vids. Find one in your own charts because this is where you're going to find them in the future.
Then show us how you calculate how many shares/lots to buy in your example.
The idea is to create a process that you can repeat over and over. It'll take quite some time for you settle into a consistent process. There'll be lots of changes along the way as you find what works and what doesn't work for you. If you don't start then you'll never get there.
Thanks for the chart and the additional edited comments.
You've posted an intra-day chart of a volatile commodity. The good thing about this market is that you can trade it with leverage. This is useful with small accounts. The bad thing about trading leveraged markets is that it's very easy to lose the lot. Especially if you can't calculate suitable lot sizes for your trades. Your admission that you're "kinda crap" at this important task probably explains why you lost the lot previously.
I'm willing to provide more criticism but none of it would be complimentary. I don't want to totally crush your trading aspirations.
I'll reply to any questions you post.
This post broken down into steps.How about posting a historical chart showing your perfect setup with the entry points, initial stop loss and possible price targets marked.
Don't copy the examples in the YT vids. Find one in your own charts because this is where you're going to find them in the future.
Then show us how you calculate how many shares/lots to buy in your example.
The idea is to create a process that you can repeat over and over. It'll take quite some time for you settle into a consistent process. There'll be lots of changes along the way as you find what works and what doesn't work for you. If you don't start then you'll never get there.
1. Post a chart that is relevant to me, and on the correct time frame that suits my trading style- I'm looking to hold stock anywhere from 1 day to 1 week, so short term swing trading suits me - which would be best? The 4 hourly chart, or daily chart? I'm not completely sure about this.
2. Draw in support and resistance lines, supply and demand zones, trend lines and important candlestick patterns. This will help me understand price action and when I should enter the market.
3. The use the above to help get an idea where to set my initial stop loss and take profit levels. Yeah, the stop loss might change but you just want to know where the stop loss will initially be positioned.
This is done to help evaluate if the potential reward is worth the initial risk. If the potential reward is not enough because there's a strong resistance level just above then don't start the trade. Wait to see what happens at the R level and assess your next opportunity.4. Set your initial take profit levels too.
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