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What is the most simple trading strategy if you were just starting out?
Main Post:
I had some beginners luck, then started over complicating and over thinking, then started falling into old rough habits.
So I want to sort of reset. Gonna go back to paper trading to at least get some strategy going.
But I don’t even know where to start. I’ve watched a bunch of YouTube videos. Supply/demand, ict, various EMA strategies. I don’t want to overload with indicators.
What’s some beginners advice?
Top Comment: Delete all indicators Find a higher time frame trend. Identify support and resistances Go to your trading time frame Identify support and resistances. Wait for a bounce, Enter candle after bounce. Pray
Trading Made Simple(r) | Forex Factory
Main Post: Trading Made Simple(r) | Forex Factory
Simple Margin Trading Question (fees)
Main Post:
Hey, I feel really dumb for not getting this because its probably something really simple.
I've been trading since summer, never got really into it though. I've looked at margin trading on kraken, however I don't fully understand how it works.
https://www.kraken.com/help/fees
https://support.kraken.com/hc/en-us/articles/206161568-What-are-the-fees-for-margin-trading-
This is the information regarding fees on their site. What I'm wondering is, say I have $1000 in that account. If I use 5:1 leverage and buy $5000 worth of bitcoin, do I get the .26% fee on the $1000 or on the $5000? I'm assuming it would be on the $5000, no?
I asked their support and they told me it was only on the $1000. I've just been trading with $1000 out of my account, if they only fee the original amount -- if I wanted to trade $1000 sized positions, I would just do $200 5:1 for a fraction of the fees?
I'm just confused and tried to understand on my own but I just give up at this point lol
Top Comment:
It's on the full amount of the trade (your equity + margin) when you open and close:
- Open position fee: 0.0001%
- Taker fee: 0.0026% (x2 this because it's applied to each order when you open and close a position).
- Rollover fee (every 4 hours): 0.001%
So, $5,000 * (0.0053) = $26.50 in fees just to open and close a trade with an initial cost of $5000.
That means, just to break even with fees, you need to close at at least $5026.50...
BUT: Depending on where the price ends up (say you open long and it goes to $5050), you'll pay different fees on the closing amount: ($5000 * 0.0027) + ($5050 * 0.0026) = $63.50 in fees.
Here's a handy calculator (not mine) that can help you calculate your fees: https://kraken-fees-calculator.github.io
Simple Trading Rules That Work
Main Post:
Hello fellow traders, I am looking for a set of Rules that, if applied correctly, produce consistent profit in the stock market. If anyone is trading by such rules I would appreciate it if you could share it with me/us.
Thank you in advance!
Top Comment:
- Know what you're doing. If you have thorough knowledge and understanding of the securities that you're dealing with, your due diligence, the trade that you're about to execute, WHY you're doing what you're about to do, and - most importantly - the risks associated including - but not limited to - the worst case scenario... then you're OK. otherwise, you're gambling. Nothing wrong with gambling if you understand that it's what you're doing.
- Buy Low, Sell high.
- it's impossible to have 100% winning trades, strategize accordingly with # of trades, amount of $ per trade, frequency, and how to allocate profit and fund losses; track the win/loss ratio and as long as win>loss you're good.
- 1 above is the most important one.
Can a simple day trading strategy really be profitable?
Main Post:
One of my friends has mentioned to me that he met some guy in Thailand who was basically a travelling day trading nomad. He asked this guy what his strategy entailed, and Mr Nomad basically told him he only trades two forex pairs and that his strategy uses a 10, 30 and 50 MA and “outside bars”.
My friend said that the way he mentioned it, was as if there was nothing complicated about it. The guy doesn’t do any fundamental analysis either.
Is it BS or can a trading strategy/system be so simple and be that profitable? (Dude said that he was averaging $4000 a week...)
Top Comment:
I only use a 20 MA, a 200 MA, and RSI. Every strategy is simple. What make the difference, is the mental aspect.
Simple trading strategy. This is how it's meant to be traded.
Main Post: Simple trading strategy. This is how it's meant to be traded.
Simple tips for trading the open?
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Nothing in depth or anything. Just things to look for specifically? Best open-specific indicators?
Top Comment:
Fundamentals + technicals.
I look at Support/resistance levels and use the tape to determine my entry.
Simple technical tools for day trading noob
Main Post:
I have a full time job. I’m looking into Day trading last few days to just earn few dollars that I can spend without thinking or just donate and give away to the needy... I read about some popular technical indicators and was also cautioned that they can provide hints on the trend but can never be taken as trade signals. I’m paper trading at E*Trade last few days. I want to reach out to fellow day traders to understand what are the various technical tools that you are using and find them fairly reliable in understanding the trends of the stock. Thanks for your time!
Top Comment: I try to avoid indicators when I’m trading because I find they aren’t very reliable. Indicators are mostly based on price and volume, so I prefer to focus on price action and volume themselves. If enough people use the same indicator, it still may have a effect on the stock, so they may still be useful. I have vwap on my intraday charts and the 200 moving average on the daily chart when looking at a stock, but other than that, I try to keep my charts very clean. Too much focus on indicators can be a real trap IMO, as they are mostly distortions of the price action already present in front of you,
Simplest trading algorithm
Main Post:
I am starting to play with trading algorithms and was wondering what would you consider the simplest strategy to implement and use as a base to add more complexity.
Top Comment:
Moving average crossover. Use it to build trend following on futures and currencies.