My Forex Experience

Getting started in forex trading is a decision that should never be taken lightly. As you’ll see from the list of “rules” below and by hopefully following along with my journey, the decision to trade forex did not come lightly to me either. While there is an opportunity to make great profits, there is also an opportunity to have great losses; possibly as much as you’ve deposited (called “blowing your account”). In an effort to avoid blowing my account there will be several rules I will be adhering to throughout this journey.

1. This is a business and will be treated as such. All trading decisions will be based on common sense and research and will not be made on a hunch or gut feeling.
2. Test all new ideas. By this I mean each new trading methodology will be tested for a minimum of 3 months on a demo account to determine if I can be profitable using it. The initial focus of my trading will be Pinocchio bars as outlined by Martin Pring, once I am comfortable trading that set-up I will test others.
3. To keep things simple I will be trading only daily and weekly time frames. No day trading or scalping here.
4. Never risk more than 3% of my account on a single trade.
5. Treat this as a business. Maximize profits. Never let a winner turn into a loser.

Those are the rules to start. I know it’s not many, but I believe it’s enough to keep my risk minimized and to ensure I don’t blow up an account early in the game. It also allows me to make well researched decisions before placing an order since I will be trading such long time frames. The rules are of course subject to review and I will likely add to them in the future.

Because I am just starting out it could be some time (maybe a month?) before you see me posting any actual set-ups or trades here. I want to take the time to review the current forex landscape, get back up to speed on technical analysis and review my options regarding forex brokers at the very least. During this time I’ll be writing about what I learn during my studies so there will be a good deal of beginner focused posts and forex review type posts. If you’re joining me early on don’t get discouraged, I’ll be getting to the trading soon enough. Remember that patience is a virtue.

That’s all for now. I’m off to start reading and taking notes, more to come later today. Thanks for coming along for the ride, I’m looking forward to a long and profitable one for us all.