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I’m not good at explaining stuffs, except I can only say, the more you practice, the better you get. And treat all demos as serious as how you would treat your own money. Here’s two trades triggered on my account. One from yesterday (USDJPY) and the other today (GBPJPY).

USDJPY +101 pips (still running)

GBPJPY +137 pips (still running)

First step, Don’t Ignore Fundamentals

First for the fundamentals, I do look out on whether will there be any economic indicator releases which might affect my technical trade. None for the dollar, yen or pound that might.

Your Trend Lines Matey

I could do better with the help from Mouteki’s methods found actively popular in Forex Factory (kudos to their niche forum on forex) and would rewrite a trendline tutorial on the next few entries. Go with your trend lines. They are extremely important to determine your positions for either a long or short. Break outs pips are fairly nice and can be rewarding to pocket if you read it right.

Fibo? Hmm

Draw Fibo retracement levels. The levels you should be looking closely at are 38.2, 50.0 and 61.8. Again, if you do not understand how to draw them. I’ll touch them in the next few entries in conjunction with our Forex Trading Guide for Beginners. Trend lines and Fibonnaci Retracement levels work like perfect partners in crime.

MACD (Optional)

I like to look at MACD as my oscillator indicator for directions on overbought or oversold. Personally, I’ll be looking at longer duration charts (4H, Daily) to confirm the trend, and shorter duration charts (30M, 1H) to determine a new short or long position.

200EMA/SMA Lines For You Baby! (Optional)

Again, its individual preference. Any traders will argue on their own system and trading methodology, but in my case (All thanks to Dan), 200EMA/SMA lines works amazingly as a guide on market direction. My MACD could tell me where the direction is, and the lines will be where the price action of the candles might be going. Candle formations can tell you alot on market sentiments of buyers and sellers too. You can check out our candlestick tutorial if you’re interested on price action and candle stick formations (Our Nobs Network friend J swears by price action)

Stop Loss! Stop Loss!

Always set your SL level even for Buy/ Sell Limit or even Buy/ Sell Stop positions. They might be triggered and head to nowhere to your benefit (Or worse, margin call? lol). I’ve spent time tweaking my own SL levels by swapping my charts to line charts to look closely on the support and resistance level and picking a number comfortable to my benefit, the general guideline is never to lose 5% of your account size in all open positions.

Setting the SL too small might be a problem too, so again, practice and you’ll be able to spot which pairs are usually the volatile ones that might trigger your stoploss for nothing. (The Cable is one good example).

SL can also be your good friend to bag pips if you’re not sure whether you should be exiting soon (Just move it up and don’t be greedy so you can set targets of how many pips you should be locking). At least you wont have to pay pips spread to your broker if its goes towards your intended buying direction. No?

PIP away!

Identify a good exit with Fibonacci, Trendlines, and Support and Resistance from short to long term charts!. Bottom line, Practice!

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