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  1. #1
    JRC
    JRC is offline
    Rookie Member JRC's Avatar

    A Newbie's Learning Plan !!!

    Hi Everyone...

    Let me start by saying I am a newbie's newbie. I have basically completed all the BOTS college material and understand the theory behind it. Following this, I have spent some time "playing" with the NetDania and FreeStockCharts platforms using the EUR/USD pair and pretty much get this as well.

    I should also say that my orientation is more towards understanding price action and the use of "statistical" indicators (averages, Bollinger, momentum etc.) plus S/R and trend lines, and the impact of news/fundamentals, as opposed to the more subjective pattern recognition stuff (head/shoulders etc.).

    OK...So now that I'm going "live demo" and before I'll even think about placing a trade, I have put together a basic, beginner's learning plan with some questions that are no doubt obvious and have likely been asked before (Sorry) but I'm hoping the answers will better fit my plan and help me grow as a trader as quickly as possible.

    To be a little more focused, let's say I want to trade the EURO/USD with a 15 min expiry.

    So, here's my plan (with questions)...

    Step One...

    I become familiar with basic price action as follows:

    a) By checking the news for the day that may impact on the EURO/USD pair. From your school material, you recommend a great source at Forex Factory - (I'd put the link here but I can't until I post five times). Question: Is there another source or sources where experts or a consensus might predict what direction the releases may go (e.g., US consumer confidence on Tuesday Sept. 27th - tomorrow) so we could be a little more prepared?

    b) By following and better understanding candlesticks and candlestick formations to help predict price movement. Question: I am thinking of opening three time frames, 15 min, one hour and four hour. Does this make sense or are there more standard, traditional or meaningful time frames you folks might use for trading 15 minute expiry? Also (and this may seem dumb)...Can I just as effectively rely on and learn the candlestick bars and formations on a very short time frame like one minute or five minute rather than wait 10 hours to see 40 fifteen minute bars?

    c) By then plotting support, resistance and trend lines. Again, if I'm trading 15 minute expiry, on what time frame (15 min, one hour, four hour)is it best to plot the S/R and trend lines?

    d) By tracking the number of candlestick bars related to my expiry after a reversal, retracement or continuation to raise the probability of a successful trade. Question: If it's a 15 minute expiry, is it best to count the five minute bars...one minute bars?

    Step Two...
    Once I’m familiar/comfortable with price action...

    a) Add to the chart and become familiar with the indicators I like (averages, momentum, Bollinger etc.) and study their behaviour in relation to the candlesticks' movement/formations, S/R and trend lines until I’m “comfortable” with it.

    b) Select one or two newbie strategies outlined in your school material and back-test the strategy to decide which ones I'll use. Question: I've seen the post on back-testing using the MT4 platform...Can this be done with NetDania?

    c) Begin to demo-trade using the strategies until I'm ready to "go live".

    I've obviously considered using MT4 as my platform but am a little concerned about being overwhelmed by phone calls from the Forex broker (or brokers). Will this happen or do they leave you alone?

    Finally, I found one of a number of older articles which studied the effectiveness of neural networks in the markets. Here's one related to Forex, if you're interested. (Again, I can't give you the link but you can google "A case study on using neural networks to perform technical forecasting of forex - Jingtao Yao, Chew Lim Tan"). Given the article, it looks very promising but I have a feeling real-time application is quite different. Thoughts on neural networks?

    That's it! Does this seem like a reasonable plan?

    I apologize for the long post, and I hope I haven't sounded too obvious or dependent, but this is an amazing web site and resource in which I wish to get involved.

    I look forward to hearing from all of you.

    Thanks again.

    JRC

  2. #2
    Legendry Member Michael Hodges's Avatar
    Quote Originally Posted by JRC View Post
    Hi Everyone...

    Let me start by saying I am a newbie's newbie. I have basically completed all the BOTS college material and understand the theory behind it. Following this, I have spent some time "playing" with the NetDania and FreeStockCharts platforms using the EUR/USD pair and pretty much get this as well.

    That's it! Does this seem like a reasonable plan?

    I apologize for the long post, and I hope I haven't sounded too obvious or dependent, but this is an amazing web site and resource in which I wish to get involved.

    I look forward to hearing from all of you.

    Thanks again.

    JRC
    sounds ok so far, how is it working out?

  3. #3
    Legendry Member milos's Avatar
    It is nice plan. Before you start trading you can watch video price action by Okane. Very useful webinar education.

  4. #4
    Solid Member Trapped's Avatar
    Great plan, you might even say it's a small tutorial for newbies. Too bad when I began trading I did not read such an article...

  5. #5
    Solid Member Trapped's Avatar
    An education plan is good of course, but even more important is practice and practical experience, so read a little and immediately go into the battlefield)

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