Simple Strategy for newbies

[jessicason]

I have heard many newbies ask if they can make good profit with $500 or less. You can even do it with $100 capital but it will require a lot of patience and more discipline than with a larger account especially if you are not willing to set a long term goal and stick to a plan.Personally I have tried using small amounts of capital and have been quite successful but also have failed in certain aspects. You see due to the limited amount of equity you will need to keep your open trades to a maximum of two, otherwise you will end up kicking yourself when you get in on a certain setup..One thing that can also help you succeed with a low capital is HIGH LEVERAGE. If you’ve got $500 or less in your account, you can use a leverage of 1:500 to increase your pip value. But you must be very careful when using high leverage. You can do this by developing a good working strategy that you can trust.For example a few months back USDJPY was in a very fast moving mode-I am sure it is now-Ok so here is what I did and still do. I set my leverage to 1:500 and I watch this pair for at least 30mins each day. Starting from 10pm GMT in most cases, this pair will define its direction (you can only know its direction if you carefully monitor it at least 30mins for 10pm GMT). Once it has defined its direction (it could be an upward trend or downward trend), I place my trade. Since, I am sure that it will move at least 10pips away from my entry point, I usually buy 1 lot size (which makes my pip value $10). However, I make sure I close my trade after each 5 or 10 pip movements, no need to be greedy. With this strategy, I make at least $30 each day. One day I mad $350 in 5mins. – You can call this scalping. One reason why this strategy works for me is becausForex4you allows scalping and offers this 1:500 leverage plus tight spreads. I also take this risk because I can count on their execution speed to pull me out and get me in whenever I want. I am also increasing the $600 Bonus I got from my other broker Tallinex and I withdrew profits.Now, who says you can’t succeed with a starting capital of $500 or less. YOU CAN! With the right strategy, focus and discipline, YOU CAN!Here is a quote from a trader here“Sometimes, I even trade the news! I wait for lvl 2 or lvl 3 news events and I trade the 5 minute gap after the release with either the way it moves drastically in favor of positive news or with a fade of that move based on news that was released in the previous 3 days from the currency that is being traded againstFor example;GBP/USDUS releases ADP number as positive, sell GBP/USD unless GBP released positive news within the same or past days otherwise I will wait 5-15 min until the good news rally stalls and I buy the GBP.In any case it works for me as long as you have profit goals I usually take $5-$10 per trade as I am willing to build my account for many years to come! (Patience is the most important part of trading IMO)”This trader also started with less than $500. You can Learn to grow a low capit

[Barney20]

jessicason:

I really admire your patience and level of discipline as you can make do with small gains keeping of the bounds of greedy emotional trading. But as you said before you open a position you try to notice if it is an uptrend or a downtrend. The truth is this is what matters most, understanding trend reversals and when trend is changing after all changes in the direction of trend is what many traders really like to trade. What I most time use for my trend analysis is my MACD ( Moving Average Convergence Divergence) together with my magic oscillator. Trading crossovers may not be necessarily adequate so I just prefer not just opening a position when the MACD crosses the zero line on my price chart but really when it crosses the signal line above as well shown by the bar chart of the histogram. Then I am more confident that it is time to buy and I choose my trading volume and leverage on my MT4 platform and trade. This is one very profitable unique trading system that I have gained enough pips from. But I must be honest enough to say you could understand and make more money than me with this system if you learn it from where I did at https://www.mql5.com/go?link=https://www.profiforex.com/education/professional/ ; the truth is I can never explain it better than you will see where I learnt it from. As it might sound strange that that knowledge I gained from there has been a major turning point in my forex career.

[lisaanwood]

Hey all,

Well according to me, focus is the key in trading. More often than not, people overlook concentration as the primary factor behind this feeling and associate it with superstition or rituals instead.

Taking a structured approach to learning which aspects in trading require the most attention and focus allows traders to gradually increase awareness and avoid distractions. This will ultimately allow traders to process information faster, and develop the reaction times necessary to do battle in today’s markets.

Becoming a focused trader will have different implications depending on trading style, or a specific trading plan. For day traders, this may mean carefully monitoring price fluctuations throughout the day, while swing traders may only have to check the intraday markets periodically.