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Showing content with the highest reputation on 11/04/2023 in all areas
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1 pointHappy to share my experience. I tried to learn everything at once. It didn't work well. Overwhelmed myself and felt disappointed because couldn't see progress. Learning to trade takes time. Set the right expectations from the start. Don't expect to start making money in the first year. It happens for very few and if market is directional, but this is unlikely. Set goals every week and hold yourself accountable. Track them, this is the only way to see your progress at the beginning. You goal is to learn price action through a strategy and hold yourself accountable to follow the rules of the strategy. These are process goals and feed into the major goal - learning price action. Holding yourself accountable to follow your strategy rules is part of the trading process you will follow always even when you make big bucks. Be on the right side from the beginning and build the right habits to set yourself for success. Many of us struggle with discipline and patience when we go live, and some lose money and then have aha moment that all boils down to follow the rules of the strategy and entry criteria and avoid any other trades that don't fit in them. This is the only way to build consistency. Write down your observations during the session and review them regularly, slowly, slowly the picture will start becoming clearer. I don't want to demotivate you, but this really takes years and lots of dedication and perseverance, if you badly want to become consistent and profitable trader, you'll stay the course. Market changes and you must go through different market cycles, and the learning never stops.
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1 pointGo with the Simulator of the platform you are going to use. If it is DAS, start with DAS SIM, it is pretty good. Spend time to learn the platform and find out what layout is most comfortable for you. Don't clutter your charts with indicators and many lines as this leads to analysis paralysis. Keep it as simple as possible. You are going to learn Price Action. Next is to start learning a strategy and try to see it on the chart. The best is to be in front of the charts during market hours, DAS SIM works during market hours, replay mode works out of working hours. I recommend replay for later on, to replay your trades or work on improving entries etc. because you can download and trade only one stock in replay, while in SIM you can recreate the same environment as trading live. My suggestion is start with ABCD strategy, it is the simplest, easy to spot and happens all the time. ABCD is a pullback to moving average and it is a foundation for entries on many strategies. Learn the criteria and rules for entry and try to spot the pattern and execute it. Take screenshots of all your executed trades in the TF you are watching. 1 min include at least 4-6 hours of the session before and after the entry, 5 min include the previous day and premarket, 15 min if you use include 3-4 days and daily, a month price action. Make it a habit to take screenshots of your trades from the start, it will reward you later on. Your screenshots are the most valuable part of your learning curve. Once you are done for the day, review your trades with the strategy check list (create one) Did you follow the criteria and rules? What you see and can do better next day? If you do this from the beginning, it will accelerate your learning. Trade the same strategy for at least a month and hold yourself accountable for following the rules. Then you can try another strategy. I don't recommend ORBS at the beginning as you must have really good understanding of price action and daily chart to successfully trade ORBS. You can try them later once you are good at ABCD, 5 min or 15 min ORBs Trading the open takes years to master as this is a price discovery at the open, you will not be able to tell where the price will go being new to trading. Some suggestions - don't jump from strategy to strategy. Learn one, trade it and move to another. It takes time but you will find out what suits your personality. Some of us are more analytical and prefer to trade 15 min after the open and there is more information on the chart, some myself included need to have a strategy with strict rules to take a trade. You will find what works for you. I see many new traders spending valuable time to learn T&S and L2 at the beginning. I have done that, but the truth is you don't take a trade based on T&S and L2, you must learn the price action to understand Level 2 and T&S and volume. My point is having a plan and learning step by step, not trying to learn everything at once because everyone talks about this or another indicator in the room. Your first goal is price action which you learn through a specific strategy. Price action is the king - volume and L2 comes later on, in the picture when you have a decent understanding of the price action, and you look at them only at levels not all the time. T&S is more important than L2 as these are the real orders. Avoid discretionary strategies at the beginning, they are difficult to learn because you lack understanding of the market at this stage, choose strategies with strict rules at the beginning. When you get experience, you will be able to develop your style and adapt the strategy to suit your style.
