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What's the best trading system for a beginner?

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  • #91
    When it comes to Forex trading for beginners, the pin bar is king. This is because it's a very obvious pattern, making it easy to identify on a chart. It's also one of the easier strategies to trade. Notice how the market came into resistance during a rally but was soon able to break through that resistance.

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    • #92
      I prefer to do the manual trading and hence I do not like to invest in certain trading systems.

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      • #93
        95% of traders fail. Of these traders, most of them are using mechanical systems created by others. System's which can be operated by a brain dead chipmunk.

        If you want to be in the 5%, trade without a system (Not to be confused with trading without a plan). Don't just short because an indicator turned red or go long because it's green. Use price action.

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        • #94

          When it comes to Forex trading for beginners, the pin bar is king. This is because it's a very obvious pattern, making it easy to identify on a chart. Notice how the market came into resistance during a rally but was soon able to break through that resistance.

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          • #95
            Have you tried momentum or S/R trading. Easiest to grasp in view and despite of that those market anomalies persist which means relatively easy trading opportunities are still presented in the market.

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            • #96

              One of the simplest strategies, which is available even to market beginners, is the trend trading strategy. Its essence is that the price of any asset, such as currency or stock, has only three movement patterns – growth, decline, and sideways movement (as professionals say – flat).

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              • #97
                Originally posted by Investfox View Post
                One of the simplest strategies, which is available even to market beginners, is the trend trading strategy. Its essence is that the price of any asset, such as currency or stock, has only three movement patterns – growth, decline, and sideways movement (as professionals say – flat).
                When we are using such a trading based strategy that is easy to understand the income that we are going to get will also depend on many of the other factors, which also involve market dynamics and market trends.

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                • #98
                  The best trading tool for a beginner is the pinbar, which makes it easier to spot on a chart. It's also one of the simplest trading techniques.

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                  • #99
                    If by "beginner" you mean undercapitalized and uneducated you are most likely doomed to fail regardless of which system you pick. As others have already pointed out, the majority of traders lose money (some 90%+). The majority of the traders are using all the same great professional tools, indicators, and systems that are available to everybody else, and they all lose. Some are even capitalized properly and are highly educated, but they still fail miserably. Therefore, success is really about psychology, risk management, and position sizing. Notice that the two latter things are not posible to do well with small accounts, but you have to start somewhere...

                    Start by educating yourself and reading Reminiscenses of a Stock Operator, The Market Wizards, and Best Loser Wins. Once you understand these 3 books thoroughly and can quote Reminiscenses of a Stock Operator in your sleep, then try using deep-in-the-money call or put options to cap your risk and leave the upside uncapped (asymmetrical leverage) to try to grow your small account in the most unconventional way. Since you can't risk just 1% on each trade on small accounts, you will need to break all rules of trding and have lots of luck in the beginning. But, if you hit a normal drawdown early rather than later, you will blow out your small account. Don't get discouraged, just go back to work, raise another stake and try again! But, be careful not to fall into a trap of switching systems, taking new courses, and reading new books every time you hit a streak of losers. It is not about the system! Nothing works all the time. Read about the struggles of Michael Marcus, Mark Cook, and Marty Schwartz (Pit Bull!) for inspiration. They all started with small accounts and achieved the impossible. Jesse Livermore himself started with only his lunch money.

                    Any entry system is OK, really. If you need some entry system ideas, read Linda Raschke's Street Smarts... Just assume that every trade is low probability and most likely will be a loser, and then place it anyway! Get out quickly if it doesn't work and don't ask why, just cut those losers short! When and IF a trade actually works, just SIT TIGHT and let the damn thing ride with a trailing stop, and even ADD to your position at progressively higher prices! It will be extremely difficult and stressful to do this, and everybody else will naturally do the exact opposite. The majority will ride the losers and even average them! Then, they will cut the winners short because they tell themselves that a bird in the hand is worth two in the bush! With such a recipe, you are guaranteed to blow out even if you have a lot more winners than losers.

                    Some people, like me, like to enter on overbought or oversold technical conditions (mean reversion). Trend followers, like some Market Wizards, like to enter on new high and new low breakouts. Some people even use fundamentals for trading (Jim Rogers, Victor Sperandeo, etc), but be extremely careful because that's the most dangerous way to trade of all. Timing and risk management are impossible with fundamentals trading and small accounts. Turn off ALL the news and only look at price. Do not listen to anybody, no matter how reputable they are, and never mix politics with trading. Turn off the TV, the radio, and the news webpages. It's hard enough to deal with your own psychology while on a trade. Reading the news and getting scared out of your trades will make you feel like a sucker every time. Shut it off completely. I really mean this.

                    To summarize, I think it boils down to picking either mean reversion or trend following, whichever goes with your personality more. Pick a time frame that you like. Some people like to trade daily bars, others like 5 minute bars... You can make money from a small position and large moves, or big positions and small moves. There are a million ways to make money. Enjoy the journey, because it will be a long and difficult one.

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                    • Originally posted by NicholaCarew View Post
                      The best trading tool for a beginner is the pinbar, which makes it easier to spot on a chart. It's also one of the simplest trading techniques.
                      How can I use it? Please explain. I use Hotforex micro account, EURUSD and USDJPY where can I see pinbars and how do I place trades based on their signals?

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