After First Months on FX

After one year of trying to learn how to "surf" the wave I have the following observations of my mistakes, which I believe might be common to many beginners (of course there is a possibility I am more then average 'blonde' or dummy :-)

1. "Let's do some trading now" attitude. Try to smell the direction of the wind and sail. NO NO NO. Wait for it. Don't enter if you are not reasonably sure what is the situation (in my case this would mean - don't trade for 8 months :-). Then you can use tight SL - if you are wrong you will not pay too much. After year of reading articles and books on trading I am starting to understand commonly used phrase: "There will be always opportunity to trade in the future". That is of course if the end of the world is not close... but then who cares about money :D

2. Keep it simple. I really admire rule of thumb patiently taught by Greg Michalowski from FXDD (www.fxdd.com). At the beginning SMA100 and 200 didn't seem very significant to me. I don't understand why. Or maybe I do. I was trying to scalp, and MA100 and 200 seemed always to be beyond the horizon. IMHO, if success with scalping is possible at all, it requires 6th sense. For those not gifted scalping is the same sort of sport as dice. Of course trading in the scale of days requires patience: maybe today is not a day to play. But if we wait till the cable checks the 100 bar SMA on 5min chart - we can figure it out (hopefully).

3. Main enemies: lack of discipline, increasing risk in hope to get revenge on the market in the big style, lack of patience, fear and greediness. For the ones seeking for a nice trend on GBPUSD: I would dare to suggest: In addition to watching MA100 and 200, look at Ichimoku (9,26,52 - standard settings) on 15min chart. I think it can give a hint or confirmation where is the trend.