Easy trading for everybody

Money management

1. Always keep in your head that forex trading is risky. Trade only with money you can lose. Never give all your money to your trading account. You will be scary of lose, you will make bad decision and you lose all your money ... easy.

2. Maximum risk for one trade is around 2 % of your account. Never give more money to one trade ... NEVER ... even if you think that it is "sure bet" maximum is 2 %. It is crucial for successful forex trader.

3. Always use "stop loss" order. Never let one unsuccessful trade to ruin your account. Just take small loss and get out of the trade. It is part of trading ... unsuccessful trade mean nothing ... it is not your mistake ... even if you do everything right you will have many unsuccessful trades.

4. Your R:R ratio must be minimally 1:1 ... never take trade where reward is smaller than risk ... NEVER ... much better is R:R between 1:1,5 - 1:2,5. You don't have to trade trades where R:R is 1:10 ... in fact FXDD broker made research and showed, that trader who take R:R below 1:1 are in 95% unprofitable, trading with R:R cca 1:1 are in average around break even. And 60% of traders who take higher R:R are profitable. I don't know how much, but there was a curve and it showed, that there is no difference (in long term) between R:R 1:2 and 1:10

Always protect your capital. It is basic rule. If you loss all your money you are out of this game ... "GAME OVER" so firstly you must protect your money and then you can try to become millionaire .
Why protect your money ... cause if you lose 15 trades in row (lets say you risk 2 % every trade) and than you win 15 trades in row (with R:R 1:1) ... you are not break even but in loss. If you start with 1000 now you have 993 (I don't count swap etc...) So in real life you will be in slightly bigger loss. So protect your capital!!!

If you look at forex mathematically you can put monkey in front of monitor and if you learn to take trade with R:R 1:1 it must be break even (don't count swap atc.). You cannot predict future market direction so in long term this type of trading must be break even. It is monkey so you don't know what it will be doing lets say that it only sell ... so in uptrend you generally loss, in downtrend you generally win and in sideway market you are break even. It is only stupid example how to show that difference between winning and loosing trader is not in setting stochastic oscillator or choosing moving averages ... it is in your head. Don't overcomplicate trading ... let's do in much more easy and relaxing ... then you will be profitable.

Time Frame

I personally like 5M, 15M, 30M and 1H. I don't like higher TF because of my personality ... a hate waiting days to find out it the trade is successful or unsuccessful ... it is killing me . Most traders say, that signals on higher TF are much more accurate. I disagree. If you trade on on 5M chart and have signal on this chart ... take it. You trade on 5M chart ... why do you think, that is not accurate signal ... nonsense. I can say ... you trade daily charts? In todays world it is big risk because you don't know what will happen in two days (crisis, war etc.) and you want to hold position 5-10 days? You see ... all has cons and pros. So trading on 5M charts isn't riskier than trading on 1D charts.

Pairs

All pairs on timeframes where spread doesn't have major impact. (EURUSD 5M chart but EURCHF 30M chart).

Hi,

Since I am new on this forum I found this thread very similar to what I was looking for. I totally agree that loading charts with many indicators is not an option as it will involve into all analyzing, checking and then double checking again, filtering etc. And probably failing in the end. So less indicators is better in my opinion. Here I found this indicator on FB (screenshot attached) - anyone could suggest if it would be worth trying? Looks like it looks good "on paper" (or better said "on demonstration chart"), but I have compared this very same time period on my charts with every single general indicators and it's difficult to find one predicting price reversals or in such early stage. Any suggestions? It can be found on fb or internet by searching for "forbi forex trading" (i'm not sure if I can post links here, as it is not free strategy)