So much information! MACDs, RSIs, cycles, triangles, head and shoulders….what in the hell is a new trader supposed to focus on? NONE OF IT!
In this video I show new traders the only thing they should focus on – establishing a trade setup, and then trading it over it and over again. Nothing else. No matter what market you trade, if an asset isn’t showing you the trade setup you trade, don’t trade. You look for your setup, and trade it over and over again. A trade includes a precisely defined entry point which you establish in advance before the price reaches it, a stop to control risk and price target which compensates you for your risk.
As a new trader don’t adjust your entry point, stop or target once you have placed them. Let math and statistics do the work for you. If you trade trends in the manner discussed in the video you will likely be right more than 50% of the time, and your winners (based on your target) should always bring in more than you lose on your losing trades (based on your stop).
While you can focus on any one particular trade setup you like (it may be triangle breakouts, or some other trade setup for example) this trend-channel-pullback strategy is a great one for new traders. Once you know it, your only job is to find that setup, and trade it over and over again, and avoid trading when the pattern isn’t present.
In the video I discuss another video on screening for stocks…you can check that out here: How to Screen For Strongest Stocks in Strongest Sectors – Swing Trading
Here’s the video…enjoy.
What to Focus On As a New Trader (Video) (double click for full screen)
The Forex Trading Strategies Guide for Day and Swing Traders looks at other forex trade setups you can look for as well.