Tradebot 3000, booting up
I’m a new aspiring forex trader and this is my story so far.
I picked up an interest in financial markets way back in school, when I did a project on share dealing (it turned out I couldn’t make a profit by investing in football teams). I didn’t think about it for years, except to monitor some shares I was given by a relative.
Fast forward a few years and I lived through the 2008 crash, The Big Short and Brexit, highlighting the seemingly crazy nature of the financial system and the constant global flow of money that is happening all around us.
It seemed like it was pretty possible to apply my own tiny tap to this flow and take out a few drops for myself.
I was attracted to trading and forex for a few reasons, mainly to do with how liquid it is and how easy to trade (spread betting in the UK is tax-free and easy).
- It’s global. I love the idea of being part of a global marketplace and a back-and-forth flow of money around the world.
- It’s a new language to understand. I’ll be honest, I like the idea of learning to understand an obscure thing that takes some effort to grasp.
- It’s location independent. My day job gives me some freedom from location, but not the complete independence I would like.
- It might outperform savings. There are no returns on savings, there aren’t many pensions, there don’t seem to many places to put spare cash.
- It might, eventually, be my main source of income. Maybe, in a long time.
These might reveal some things about my psyche that set me up for disaster, please warn me in the comments!
My education so far
I was drawn to technical trading and simple price action methods, my first stop was Niall Fuller’s Learn to Trade the Market website. I read a lot of Niall’s articles and I was convinced by his simple approach to trading price action.
Looking for a free structured approach to learning the basics, I started by studying the first 50 lessons on BabyPips, making a folder of notes and a set of post-its with important candlestick patterns.
Soon I started realising that there was more to life than candlesticks, and I wanted to understand more about the flow of the market in human terms.
Then I saw Navin Prithyani’s Urban Forex videos on YouTube, and his style appealed to me. I thought a modest investment in a guided course would help me make faster progress, so I signed up for Mastering Price Action.
The Urban Forex course has been useful, Navin really simplifies learning about the markets and the momentum and sentiment that goes beyond just looking at candlesticks. Important to understand though, the course doesn’t leave you with a complete trading system that you can just run with.
Things I’ve learned
So here I am, I know little enough to be dangerous.
I think there are a few positives to my approach so far. I didn’t want to get rich quick, I see this as a long-term activity, I don’t like to gamble and I don’t think I will be too vulnerable to some of the worst starting mistakes. I’ve got a solid understanding of things like support and resistance, trends and candlestick patterns.
I like Niall Fuller’s longer-timeframe trading approach which ‘sets and forgets’ trades and checks charts only once or twice a day. I like Navin Prithyani’s understanding of how the markets are moving, the rhythm and how to decide which side of the market to take.
But I still have a lot of weaknesses. I don’t have a clear trading plan yet, I don’t have a daily routine of going through my charts and I still have a lot of concepts to learn. I’m also putting off getting into fundamentals because I don’t like the idea of constantly reading the financial news.
It’s also possible I’ve latched onto this simple price action approach because it seems clear, and it might not turn out to be profitable for me.
I’m in an interesting position now, with some knowledge but without a clear trading plan and some gaps in what I know. There are always new
My plan now is:
- Start making a set of rules for choosing trades
- Pick a small set of currency pairs to follow and learn inside-out
- Study lessons 50–100 on BabyPips
- Get into a routine of checking the charts daily and weekly, plotting important levels and making notes in a journal for the week ahead
Let me know what you think, if you have any questions or can steer me down a better path!