Hello traders,
I have a question directed to experienced traders, but not to get answer from people who have still trading on a demo account and their opinion. I apologize if this sounds rude, but I guess you will understand that I need advice from someone already experienced in this business.
I am practicing for almost 4 years on FOREX demo account and I am feeling somehow ready to enter into the real world, but starting out with only $200 (I cannot afford more money as in my country the standard of living is very low). By trading, I have success in realizing my strategy of making 2% daily and achieving the goal of $50000 for around 340 trading days (excluding weekends and holidays) or 1.5 years. I am mainly hybrid trader (news, technicals and sentiment recognition).
But on the other side, in my head started to rise confusion when I have read on the forums and sites from experienced traders(I guess so) that the above mentioned is near impossible to be made on real account, and best starting deposit is from $5000 to $10000 (which for me this is institutional deposit and big money, impossible to afford) for which I was not able to find any credible information why.
What is your opinion on this, is my strategy a rational expectation (even for realizing it after 2 to 3 years) or only great delusion that will make you laugh out loud for the real account starting out with only $200?
Thank you.
P.S. I am not in desperation for money or trading for a living method
The afforementioned strategy is not a strategy.
You have developed "Traders Eyes" , which in many cases, i presume ,have caught yourself knowing what is going to follow by looking at a chart in combination with the fundamentals.
That is a good approach but it lacks foundation.
Lacking foundation does not render it useless , but it renders it weak when a blow comes to your real live account ,your mind is racing [yes it will] you consider jumping in again to cover losses immediately [yes you will] and later on notice that you blame a "strategy" for something the "strategy" did not cause.(cause on high stress trades , it was not your strategy pointing out the "oppurtunity").
What i advise is not dumping your approach.Dump your girlfriend instead.But "one last night" her first.Get some chocolate syrup...Im kidding.
What i advise is not dumping your strategy , but rather solidifying it.
See how your approach works and write everything down as a process you follow.
Example :
1.Open Chart
2.Find <span class="glossarylink">
<a href="https://www.forexpeacearmy.com/forex-forum/vbglossar.php?do=showentry&item=Support" onmouseover="return overlib('Support is a price level (often an area, not an EXACT price) that traders tend to buy at. This often prevents price from falling below this level, th [...]');" onmouseout="return nd();">
<img class="inlineimg" src="https://www.forexpeacearmy.com/forex-forum/images/styles/f4/misc/vbglossarlink.gif" border="0" /></a> <a href="https://www.forexpeacearmy.com/forex-forum/vbglossar.php?do=showentry&item=Support" onmouseover="return overlib('Support is a price level (often an area, not an EXACT price) that traders tend to buy at. This often prevents price from falling below this level, th [...]');" onmouseout="return nd();">Support</a>
</span> And <span class="glossarylink">
<a href="https://www.forexpeacearmy.com/forex-forum/vbglossar.php?do=showentry&item=resistance" onmouseover="return overlib('Resistance is a price level (often an area, not an EXACT price) that traders tend to sell at. This often prevents price from going above this level, [...]');" onmouseout="return nd();">
<img class="inlineimg" src="https://www.forexpeacearmy.com/forex-forum/images/styles/f4/misc/vbglossarlink.gif" border="0" /></a> <a href="https://www.forexpeacearmy.com/forex-forum/vbglossar.php?do=showentry&item=resistance" onmouseover="return overlib('Resistance is a price level (often an area, not an EXACT price) that traders tend to sell at. This often prevents price from going above this level, [...]');" onmouseout="return nd();">resistance</a>
</span> on H4
3.Get current D1 trend
4.Pull A fibonacci retracement from the previous low to the projected <span class="glossarylink">
<a href="https://www.forexpeacearmy.com/forex-forum/vbglossar.php?do=showentry&item=resistance" onmouseover="return overlib('Resistance is a price level (often an area, not an EXACT price) that traders tend to sell at. This often prevents price from going above this level, [...]');" onmouseout="return nd();">
<img class="inlineimg" src="https://www.forexpeacearmy.com/forex-forum/images/styles/f4/misc/vbglossarlink.gif" border="0" /></a> <a href="https://www.forexpeacearmy.com/forex-forum/vbglossar.php?do=showentry&item=resistance" onmouseover="return overlib('Resistance is a price level (often an area, not an EXACT price) that traders tend to sell at. This often prevents price from going above this level, [...]');" onmouseout="return nd();">resistance</a>
</span> (if uptrend) on H4 and find the first <span class="glossarylink">
<a href="https://www.forexpeacearmy.com/forex-forum/vbglossar.php?do=showentry&item=support" onmouseover="return overlib('Support is a price level (often an area, not an EXACT price) that traders tend to buy at. This often prevents price from falling below this level, th [...]');" onmouseout="return nd();">
<img class="inlineimg" src="https://www.forexpeacearmy.com/forex-forum/images/styles/f4/misc/vbglossarlink.gif" border="0" /></a> <a href="https://www.forexpeacearmy.com/forex-forum/vbglossar.php?do=showentry&item=support" onmouseover="return overlib('Support is a price level (often an area, not an EXACT price) that traders tend to buy at. This often prevents price from falling below this level, th [...]');" onmouseout="return nd();">support</a>
</span> level in conjuction with already visible supports)
4b.Pull A fibonacci retracement from the previous high to the projected <span class="glossarylink">
<a href="https://www.forexpeacearmy.com/forex-forum/vbglossar.php?do=showentry&item=support" onmouseover="return overlib('Support is a price level (often an area, not an EXACT price) that traders tend to buy at. This often prevents price from falling below this level, th [...]');" onmouseout="return nd();">
<img class="inlineimg" src="https://www.forexpeacearmy.com/forex-forum/images/styles/f4/misc/vbglossarlink.gif" border="0" /></a> <a href="https://www.forexpeacearmy.com/forex-forum/vbglossar.php?do=showentry&item=support" onmouseover="return overlib('Support is a price level (often an area, not an EXACT price) that traders tend to buy at. This often prevents price from falling below this level, th [...]');" onmouseout="return nd();">support</a>
</span> (if downtrend) on H4 and find the first <span class="glossarylink">
<a href="https://www.forexpeacearmy.com/forex-forum/vbglossar.php?do=showentry&item=resistance" onmouseover="return overlib('Resistance is a price level (often an area, not an EXACT price) that traders tend to sell at. This often prevents price from going above this level, [...]');" onmouseout="return nd();">
<img class="inlineimg" src="https://www.forexpeacearmy.com/forex-forum/images/styles/f4/misc/vbglossarlink.gif" border="0" /></a> <a href="https://www.forexpeacearmy.com/forex-forum/vbglossar.php?do=showentry&item=resistance" onmouseover="return overlib('Resistance is a price level (often an area, not an EXACT price) that traders tend to sell at. This often prevents price from going above this level, [...]');" onmouseout="return nd();">resistance</a>
</span> level in conjuction with already visible resistances)
5.Check the news calendar .Is anything expected today , or tommorow for this currency?
6.Place a <span class="glossarylink">
<a href="https://www.forexpeacearmy.com/forex-forum/vbglossar.php?do=showentry&item=pending+order" onmouseover="return overlib('An order that will not execute until the price reaches a level selected by the trader. Forex Traders Glossary');" onmouseout="return nd();">
<img class="inlineimg" src="https://www.forexpeacearmy.com/forex-forum/images/styles/f4/misc/vbglossarlink.gif" border="0" /></a> <a href="https://www.forexpeacearmy.com/forex-forum/vbglossar.php?do=showentry&item=pending+order" onmouseover="return overlib('An order that will not execute until the price reaches a level selected by the trader. Forex Traders Glossary');" onmouseout="return nd();">pending order</a>
</span> at the first <span class="glossarylink">
<a href="https://www.forexpeacearmy.com/forex-forum/vbglossar.php?do=showentry&item=support" onmouseover="return overlib('Support is a price level (often an area, not an EXACT price) that traders tend to buy at. This often prevents price from falling below this level, th [...]');" onmouseout="return nd();">
<img class="inlineimg" src="https://www.forexpeacearmy.com/forex-forum/images/styles/f4/misc/vbglossarlink.gif" border="0" /></a> <a href="https://www.forexpeacearmy.com/forex-forum/vbglossar.php?do=showentry&item=support" onmouseover="return overlib('Support is a price level (often an area, not an EXACT price) that traders tend to buy at. This often prevents price from falling below this level, th [...]');" onmouseout="return nd();">support</a>
</span> or <span class="glossarylink">
<a href="https://www.forexpeacearmy.com/forex-forum/vbglossar.php?do=showentry&item=resistance" onmouseover="return overlib('Resistance is a price level (often an area, not an EXACT price) that traders tend to sell at. This often prevents price from going above this level, [...]');" onmouseout="return nd();">
<img class="inlineimg" src="https://www.forexpeacearmy.com/forex-forum/images/styles/f4/misc/vbglossarlink.gif" border="0" /></a> <a href="https://www.forexpeacearmy.com/forex-forum/vbglossar.php?do=showentry&item=resistance" onmouseover="return overlib('Resistance is a price level (often an area, not an EXACT price) that traders tend to sell at. This often prevents price from going above this level, [...]');" onmouseout="return nd();">resistance</a>
</span>(limit order).
repeat 10 times before trading day starts "I NEVER deviate from the process."
If it helps have a list of Hard Rules , rules you never break when trading.
For this you have to look within yourself after you have traded some real money .
Observe yourself while trading , like step above you , sort of outside you and think
why am i doing this ?what caused this?how can i avoid this. etc.
And yes it can be done.
Finally ,extra 1 [i tell everyone dont worry]: open an extreme account with a very high leverage broker and very little funds ($5,$10) .Trade that account on the maximum possible risk able. Its a fun account , what happens on that account does not matter , you never deposit more than $10 on that account , its the "you never know account" , it helps get the edge of,and in the process you will learn a thing or two about trading , and brokers.
Extra 2 :
[video=youtube;GhKJ9P3agRc]
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Extra 3 : Subscribe to this man here ,and watch his TA videos.
[video=youtube;uY0MKUKkkKg]
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Extra 4(yes new record 4 extras!) :
[video=youtube;zoN0D337GaA]
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And also , you can join forex competitions on the side .
Check ForexBall , ForexCup.
Cheers