In today forex faq, we have 3 forex training questions from one of our fellow traders.
Below is the questions:
1. Please tell me how to kill the fear of loosing
a trade….? I am trading with fear in mind of loosing and one must get out of this to be successful , I think so.
2. Which indicators best suit for daily trading…? My strategy is to take small profit and out. Presently I am using MACD and Stoch (14-3-3) only.
3. For the beginner which time frame is suitable for daily trading….?
As for the forex training question 1 on how to kill the fear of losing a trade. This is something that you must get rid of in order to trade. In fact, I have said so many time that it is impossible not to lose a single trade. In fact, if you enter 10 trades per month, you will at least lost 2 to 3 trades.
What is most important is you have a reliable forex strategy that can win at least 7 out of 10 trades. Bear in mind that you do not need to win 100% of the time to be profitable at the end of the month.
You just need a strategy with good winning percentage as well as decent risk reward ratio of at least 1:2.
Why do you need a decent risk reward ratio? This is because a win will be able to balance out 2 loses that you have made. Therefore you will be able to generate profitable income every month without fail.
If you are unable to accept losses, I must say that trading is not meant for you. Therefore you should try to overcome such a thinking by trading on a demo account with a good strategy. You will understand from your demo account that you are still making money every month even when you have some losses.
As for the second forex training question on which indicators best suit day trading. From what you have written, it looks like you are a scalper who takes small profit. As a scalper, you will not have high risk reward ratio and therefore you have to compensate it with great winning percentage.
I will suggest that you make use of the fibonacci indicators as well as the pivot point to help you in your trading. As a scalper, you should work hand in hand with support and resistance. You can find out more about forex scalping indicators as well as forex support and resistance from my previous posts.
As for the third forex training question on which time frame is suitable for daily trading, I must say that the 15 minutes chart and the hourly chart is one of the best to use for any day trader. However if you are a scalper, you should make use of the 1 min as well as 5 minutes to trade which has a lot of noises.
My personal favourite is the 15 minutes as well as the hourly chart but I must say that they suits my trading strategy and may not suits yours if you are trying to scalp the market.
I hope that I have answered your forex training questions and if you guys have anything to share, do feel free to give your comment below.