Episode 3 – 4 First Steps for New Traders. Ilan Azbel of Autochartist returns!
Ilan Azbel, CEO of Autochartist returns and gives us his 4 steps to becoming a trader:
- Open a brokerage account and deposit some money – Commit!
- Learn the rules – don’t blow out your account by cutting corners at the beginning
- Get a basic trading system and spend time to become proficient- nothing complex, maybe just support and resistance lines
- Get a more complex and more profitable trading system – but only once you have mastered the simple stuff!
The last few days of the week we studied the markets through the prism of support and resistance lines. Trying to get a feel for when and how prices bounce (or don’t) off these lines. Understanding the basic concepts of pivot points as well, as they are interlinked.
Also observing some ridiculous Brexit induced volatility in GBP in particular… we chose a great time to learn to trade!!
Support and resistance lines are a popular way to range trade it seems, but for those of us more inclined to ride a trend we’ve been casting around for something complementary to read.
We came across Kathy Lein’s ‘The Little Book of Currency Trading’ and her idea of using Double Bollinger bands. So that has been bought and will be read next week – we’ll familiarise ourselves with Double Bollinger bands and study the markets… with a view to jumping into the market the following week… once the the Brexit referendum is done and dusted! Full review in Episode 5.
David Jones’ Spread Betting the Forex Markets assumes basic knowledge (what is a pip etc) but then takes you through the ‘Rules’ that Ilan refers to – basic risk management, how the Forex markets function etc. He also gives some basic trading techniques – support and resistance lines, basic trend identification – the perfect simple trading systems to get us started!
Full review on the podcast in Episode 5 along with a review of Kathy Lein’s The Little Book of Currency Trading. Get ahead of the curve by picking it up from Amazon now.