my advice from what iv learned and im still a newbie:
1) everything strategy works but none are infalliable
2) following indicators does not work, they work in a rangebound market but in a trending market it wipes you out
3) elliott wave is too hard to keep track of
4) take trading seriously, if your position is open then watch it, dont go for a 30min break, or start playing video games, you should always be watching your position
5) set a stoploss and stick to it, you got the trade wrong, deal with it rather than blowing more money to maintain a losing position
6) never trade against the trend
7)if you cant see an oppurtunity, then dont trade
8) this is the most recent thing iv learned…you cannot predict what is going to happen, best thing is to follow wherever the price goes
There are various stages to a trading career and some of this stages include but are not limited to (this are from personal experience):
Stage 1: This is when a trader is introduced to trading and begins to learn the basics things like, how to read a chart, what moves the market, what is a pip, what is leverage…etc
Stage 2: In this stage we have an overall knowledge of the market and what it is. We start adding indicators and lines to our charts and begin looking for ways to make the charts tell us what we want to see by adjusting indicators and hoping to find the right combination that will make us rich.
Stage 3: We now have played with about every indicator so we go to forums to look for systems and EAs that we can obtain to help us in our quest to becoming millionaires. We go from system to system and begin to get frustrated because nothing seems to work, you begin to wonder what the heck are all this people posting systems on forums thinking, don’t they know that none of them work? In reality some of them work, we just don’t give them enough time and discipline to learn them, or they just don’t suit our thought process.
Stage 4: We begin to clear our charts of indicators and remove some of the dark clouds that were covering our mind and charts. You begin to learn price action, support and resistance, pivot points, fib replacement… and that indicators lag. You begin to realize that demo trading isn’t a bad idea and that maybe SOME of the crazy lunatics in the forums weren’t really that crazy after all. You begin to realize that longer time frames are a little less stressful and more clear to understand but yet the greed and curiosity to turn a $250 account into $100k account in one year or less for that matter continues to roam your mind and you start going back to your old ways; changing strategies, taking high risks, not using money management until you blow jet another small account (for some this blown accounts aren’t exactly small)
Stage 5: You continue reading and studding and begin to test price action or other strategy either via demo accounts or with very small accounts with money you consider as training expenses. You then begin to see the market and trading as a business. You continue to learn and make progress, while you raise funds.
Stage 6: You begin to make smarter decisions and begin to break even on your trading account, you win some you loose some. You realize your losses are dues to stupid mental mistakes and could have been avoided have you had your emotions in check and your business mentality in place. You continue on and begin to get picky with the trades your take and begin to use sound money management, you now see your account growing slowly but surely, while taking loses you begin to win more than you lose and with good money management you are on your way to the begging of your trading career.
Stage 7: This stage will be discussed at a later time since I’m not currently in this stage. Perhaps a more experienced member can continue on the ladder.