07/27/2020 @ 0600 Hours
Hello and welcome back to week 2 on my journey to becoming a profitable Forex day trader.
I decided to start my day positive and totally different than how I usually start my mornings.
I logged on to YouTube, and started doing yoga. Yes, I did some yoga. I wanted my mind open and relax, so I can soak up more Forex training.
So, after I was done, I started prepping my desk and of course grabbed some coffee!
I started by searching online for more information on day trading and came across some more interesting articles about price action trading and analysis.
Over the weekend I watched a handful of videos around price action and also took the time to open a demo account with Forex.com.
So far, I have spent the last few days learning about price action and the importance of market behavior.
It is exciting to learn that each candlestick’s behavior tells a story of what price is doing at that particular time, and how it impacts the next forming candle.
I was so intrigue by the whole fact that some traders don’t even use indicators to trade with, but solely rely on price action movements.
After my morning routine of exercise and coffee, I hopped on amazon and bought my first ever trading book on technical analysis.
I bought a used book of course because I did not want to spend so much on a new book. After all, I’m trying not go over $600 in total over all cost for my new trading plan.
Many professional traders advise that trading is very risky, and that I should not trade with money that I cannot afford to loose.
I wanted to take that a step further.
Not only that I should not trade with money I can not afford to loose, I wanted to keep my spendings down, just in case this whole trading does not work for me.
So after a look into my finances, I have determine that I can afford to loose no more than $600.00. Any dollar amount after that would not be right with me.
I have not placed any trades yet with my demo account. I have just been looking at price action, and getting a feel of technical analysis, and watching prices react to new releases.
I’ve spent the last week concentrating on pure price action.
Looking at bare charts and meddling around plotting support and resistance levels, trying to see if I can spot key areas where price respected or reverse.
So far, my journey has been very educational and exciting.
Since I signed up for a demo account, I have been using my broker’s MT4 trading platform. I started using its back tester to see if my analysis work, and to my surprise, it does.
Some however did not go as I planned, but hey, 60% of my analysis did pan out.
I think with more time and experience, I’ll manage to increase my percentage.
BTW, traders on forex factory, and baby pips, recommended that I use a charting solution called tradingview.
After looking at their site I found they have a huge trading community, I signed up for a free account. Trading view has a state of the art charting package, but the free version has its limits, but its free.
I will update more about trading view, maybe on another post of its own, till then, happy learning.