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Sharing my experience for new traders

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Hello every one.

I thought as a member of this fantastic community, I will share some of my experience as a trader so that new traders don't end up making the same mistakes that I have made over the years.

Firstly, I am not a professional trader however, I have been doing this on and off for a few years now. I am sure there are other members in this community that have a lot more experience and can contribute to this thread. Like I have indicated previously this thread hopefully will help new beginners in making profits.

 

Okay, if you are reading this then I will assume that you have an IG account. This is one of the most important aspects of trading in my opinion. Having a good broker with an excellent trading platform. I have used many platforms previously and am happy to say that IG has met all my expectations and more. I need to point out that I am not an employee of IG. The fact of the matter is they offer a fantastic platform built for mobile and web. So naturally, the first point that I would make to a new trader is to find a reputable broker.

 

Secondly, in keeping with the theme of brokers, ensure that they have a demo account option. Lucky for us, IG wins on that front as well.

 

Now that you have your account opened, and funded, you are ready to trade? Not yet... This is one of the biggest mistakes that I made when first starting out. I was so eager to trade, that I ended up losing a good portion of my initial investment. If I could turn back the hands of time, I would of spent more time reading, reading, and more reading. There is so much of free information available on the Internet and YouTube that you have no excuse to learn what in fact CFDS are and, how they work. I wish someone had told me that before I thought I knew everything.

 

I am going to call this post one. If this is something you guys think I should continue updating then I will in instalments. Looking forward to your comments and opinions on this thread.

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Hi Dash 1,

 

A great read my friend and some good advice you have here. You on the money by having a trusting broker as its hard enough to trade let alone. I got into this new adventure of trading and was hooked about a year ago. Its a strange funny out come but ended well with some persistence in my part. "Big mistake I got into binary option"!!! with a dodgy broker in cyprus I will not name them, but lets just say they want you to lose your cash!

Anyway long story short I got all my investment back and manage to get my trading volume up and beat the silly bonus rules to make a withdrawal and a quick exit from them!

So all good now.

So this got me thinking I have always wanting to try and play with the markets. So done some heavy research of who to use as a broker. Then I found IG and very impressed in the company and the platforms they offer. It was all about trust for me and I think I have found this. Now its time to learn to trade without distraction. My word so much to learn and the best way was to use the demo account which I have been using now for about 9 weeks...There is times where my trades have done very well I'm wishing it was real money and eager like you say to just go for it...? ...haha but I am taking my time to read read and learn the platforms etc before it all becomes real for me! 

Up to date so far: I am day trader, price action, news events trading and now getting into indicators and charts studying, candle sticks, support & resistance. These tools has help me in many ways. Be great if you can share some good advice for a new trader like my self to make it real.

 

All the best Trev.

 

 

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Hi and thanks for the fantastic feedback. Strangely enough I also got caught up with the binary options trading companies and it did not end well for me. Well I am glad I have made that mistake and now that is over.

 

So let's get started with post 2.

So, now that we got our account funded and we have played with the demo, we can make our first trade. One of the rules that I try and stick by is try not to risk more then 5% of my capital on any trade. If you are trading with a small account like many of us new traders do then this is not very easy as we want to see the big money come poring in. Having a risk management Strategy is vital in this game. Just as you can make big profits you can loose big as well.

 

The next course of action that I should have undertaken was to find a trading group. This forum is a good example of that. Depending on which country you are from there are many good groups locally that can offer advice and opinions on a lot of the local stocks and shares is that you may want to trade. I have found that sometimes these groups have proven to be in valuable.

 

The next aspect of my trading is keeping an eye on economic calendars. We are rather fortunate on this one as, IG has a mobile app called IGTV. From what I can see, it is updated daily with all the economic news and company earnings for the week and the day. This resaws is free and you should make use of it.

 

I will update this further in post3

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Ah thank you dash1 for your reply.

 

I am still on the learning curve of forex trading and getting used to the platform, about 9 weeks now.

I did look at the PRT charts,,,,,**** it was a bit scary so not quit ready for that as yet. So my next question if you can advise me?

Is it ok to trade on there classic platform? Some limited features on the normal charts like the drawing and lines and lack odf colours etc.

Do I need to get on the PRT before I put real money in or is the classic account ok to trade on?  PRT looks great but so much more options and more to study it's a bit mind blowing at this stage.     

 

[Yes Binary option] I can't believe I use to trade on expiry times! that's way to stressful, at least you can pull out of a trade when you wish.

 

I am still working on my demo account [21k up to date] good so far, however I am trading with no emotion so I guess this is why I am taking more risks and keeping positions open until I am in the profit.

Very good point on the low account to new traders, as this will be me when I put in real money in.

So now my trades will be much less on the pip, between 0.50 to £7...this I hope will make it real for me and getting prepared for RM.

Yes I live in the south east Kent. Trading groups sounds great that would be a great help, where can I get started on this? Economic news I do use to serve my trades. However when its positive it turns out negative and that can be miss leading and frustrating..

 

I get the morning call from IG to my email as I like the FTSE 100. but IG don't always get the prediction right. A crystal ball is what we need,,,haha.

 

Thanks for your time buddy.

 

TreV... 

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You can find a local trading group by just using Google. Also maybe start a thread and find out who lives in your area?

 

I think prt is fantastic but you can also use the normal charts as well.

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Hi Dash I am a begginer...still trading on the demo

 

I am planning to fund my real acc soon....i am just wondering if R100 is not too little for margin requirements.

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Hi there and welcome to the forum. R.100 is far too little to start with. A good size account would be 10 K plus. In my opinion.

Mod Edit >> edited out personal contact information

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Hi. So it’s time to give this thread an update. We covered a few aspects so far but, there is a bit to go! One of the major factors that see new traders blow out there accounts including myself, is revenge trading. You start the morning and start with a losing trade, you then take another one to try and make up for the first one and, that to, does not work out. You try the third time and again, bang account almost blown out.

 

You think you got one more shot at it and you have now smashed your entire account. We all have been there when we first started. Trust me, do not do this. You will just become stressed out and extremely frustrated. Develop a strategy. Set yourself targets. Say to yourself, I am taking 2 or 3 trades for the day and that is that. If they work then good for you but, if they fall apart then stop and sit on the side lines for a bit. Do not revenge trade. In the long term it just does not work.

 

Well, the worst is when you are on a losing trade and you close out only to find the price rocket just after you leave. The general thing that new traders do is to jump back in only for the price to fall again. Like I said do not revenge trade.

 

Something ells for new traders to apply is a strict stop loss. If the target hits the stop loss then stop. Another serious mistake that new traders make is they keep on moving the stop loss as they have a belief that, “if I hold it a little longer it will bounce” Don’t do that!!!! Stop losses are there for a reason.

 

IG offers a great trailing Stop loss feature use it. You can lock in profits with it. That’s all for to day

 

 

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True say!

It's a good idea to start as a "dummy" on a ..... "demo" account first!

A dummy-demo is the best way to move forward?

shocks-n-scares

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Best way to "stay out of trouble" is to go with brokers who are regulated by "FCA" (UK).

You will find none of the so-called Cyprus brigade are!

So stay well clear of them!

shocks-n-scares 

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True say (again)!

After "donkeys of years" trading this game, I still play with just 2% of my "Bank of Ing-land" balance?!

Haa Haa!

It has worked for me - U need bleedin' will power!

shocks-n-scares

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I do Forex + Ftse stocks!

I love Ftse 100 stocks - nO sTrESS (well you know what I mean)!

Forex is very demanding and stressful!

I am out of the market last couple of days, due to ...... THE BIG FIGHT ..... in the USA!

Haa Haa!

Got lucky - managed to sell most of my Ftse stocks by Wednesay 2 November, at a profit, and now standing by to s@@

what happens on Tuesday 8 November?!

Hoping Donald does NOT win!

Going to be disastrous all round for the USA and the rest of the world if he does!

The guy is a clown to say the least!

shocks-n-scares

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You are doing just fine trading the demo account - TRUST ME!

Next few weeks will be "testing" time particularly if *DONALD DUCK* wins!

I am in NO hurry to get back into the market!

shocks-n-scares

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Haha, wikileaks is now more reliable than main stream media (MSM) for news. Their (MSM) caricature of Trump is fun (the clown), the reality of HRC is frightening, see #SpritCooking, see #PaytoPlay, see creation of ISIS after US attempt to force oil pipeline through Syria.

Ur right about demo, it's not like the real thing at all, my initial strategy worked on demo then clearly did not work live, live and learn. 

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I so agree with that shocks-n-scares. Overseas brokers keep the well away.

 

Very good salesman and before you know it he has got ya...

 

Thank god for what goes around comes around..dodgy brokers your time will come!!

 

TreV.. 

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Hi   See babypips.com  for good info on stops in the School section (also check the IG education section).

The trailing stop def is from the infopedia section.

Stop orders are just another order so the cost is the spread, guaranteed stop orders carry an extra charge so see the IG page re charges. 

 



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Great! Thanks, I'm in a funny situation as I've had a friend helping me but I'm on my own now, so I've been trading a couple of months with good success but don't know how to physically do it, I put a small spread bet on wall st last night, thought I knew how to close it but don't think I do, I know it sounds crazy...

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Execution of deals depends on your platform, if in doubt just go back to the old fashion way, get on the telephone to the broker.

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IG still offers the old-fashioned telephone call which is really helpful in sticky situations. I will do an update to this thread shortly

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Understanding fundamental and technical Analysis.

 

In today's post I wanted to share a little bit about why understanding technical and fundamental analysis is so important. As I previously mentioned, I am not an expert and I'm learning day by day however, in order to become a successful trader, you must understand why the market moves in the way it does.

 

 

Depending on which country you reside in, does a strong or weak US dollar affect your market? If so, do you know why? Is the market that you trade in heavily weighted in commodities? These are some of the crucial aspects of fundamental analysis that you need to understand before placing a trade.

 

Let me illustrate with an example. The South African top 40 index is heavily weighted in currency sensitive stocks. The South African market is also heavily weighted in commodities. A week South African rand and high commodity prices often drive this market higher. The same can be said about the FTSE to a certain extent.

 

You need to take some time out and do a little research as to why gold for example, moves the way it does.

 

Once you get a grip of the basics, you can then follow this up with technical analysis through the use of charts. There are plenty free resources available on the Internet with regards to how to interpret different types of charts.

 

Take your time and get an understanding of how candle patterns work. What is a bullish candle? What is a bearish candle? Some of you who are experienced may find this section of the post and little boring however, there are a lot of people who don't know anything about how to interpret charts.

 

If there are any experts which I am sure they are, please feel free to start a thread on the basics of candlestick patterns et cetera.

 

That's all for today.

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Hello guys. said something in the previous post that got me thinking and, I decided to do another post on it. That is confidence. Trading is all about confidence and, it takes a little bit of time and patients’ before you get there however, you do get there.

 

I am still yet to see a trader who can tell us that he has never lost? I am willing to bet that there are very few of those or none at all. You got to accept the fact that you are not going to get it right all the time. That is the game of trading. When you first start, it can be rather damaging to lose a few trades. It’s not so much about the money that you have lost but, your confidence gets hit hard.

 

If you read one of my previous posts you will read about revenge trading and so on. Confidence takes time and will grow as you become comfortable with your trading plan. Having the right mind set for this game is key. If you think you are going to become a millionaire over night then I think trading is not for you. The aim for me is to rather be consistent daily then get one big trade and loose 5?

 

I set my self little targets. For example, I trade the South African t40. I try for 100 points daily. If I get more then that then, that is a little bonus. It was hard but, there were some days where I never took a trade at all. Trying to keep emotions in check is the hardest in trading and, I still struggle with that.

 

Hope this helps

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hi buddy , i totally agree , so far i in the red but learning , i think best option is to set limit on the lost as i having much higher lost than profit ,  i will get there one fine day

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I've only started trading in Fx and the excitement of a few initial wins; over excitement, bad trades equate's to downside investments, and I believe in either winning or learning. My learning journey has begun, and seeking more sustainability rather than quick wins, is a challenge that I'm looking forward to. Understanding candlesticks through to learning various statistical tools to help me evolve into a profitable trader.

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Hi .  You have a different account code for each IG account you have opened. It is a mix of 5 numbers and letters and found on the 'My IG' dashboard page. 

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hi i belive this games should be played by group as there are many aspect we need to  consider. If you are keen we see set up working tean to pull the reswourse together, each take on some areas and putting together to make a final decision ? how about  that .. I can reacg with low.patrick168@gmail.com

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I believe share prices are unpredicable as the big guys move the market and it is a Zero sum games, if winner take all donated by the losser. if all a winner who will be the losser. Thus we have to devise some mean to see what the big guys want to do for the day.. on Techincal can do that ,  thus i believe we need to place more on technical , fast response is the key...EA is the way to go but we have to monitor the market and guide the robot when it is lagging 

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I do hope you are more familiar with the entry and exits? It is a must knowing how to use the platform and reading charts before you start real money trading.

Trading is harder enough so without knowing the tools of the job you will lose your cash!.

Please let me how you are doing atm?

 

Another tip: go to all the videos on ig under education and learn and study them.

Go to youtube and study like crazy different strategies. Listen to ig morning call at 7.30 and 10.30 and know the price action and the price market.

 

When you trade without emotion your on the sweet spot.

 

Let me know whats happening buddy.

 

TreV..

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