Which Entry Methods are Best for Beginners
- Learn the E.A.S.T. method
- Practise your mental training
- Use the EMA to optimise your understanding of price action
What are Entry Methods For Beginners About?
There are tons of different strategies out there in the Forex market. However, not all profitable, and not all are able to trade successfully in different market conditions. In our opinion, the best strategies are always simple, thus the abbreviation K.I.S. Keep It Simple!
How Do Entry Methods For Beginners Work?
You might be wondering what the E.A.S.T. chart setup is. With E.A.S.T., we are referring to the (E)nergetic (A)ccurate (S)ystematic (T)urnout. Before we delve deeper into the matter of setting up your charts, it is important to know that mental training is also a crucial part of the E.A.S.T. principle.
There are two critical aspects of a trader’s mental fitness:
- The more problems with trading psychology, the more significant the difference between the trading plan and the actual real-life trading (reality or execution)
- The fewer issues with trading psychology, the smaller the difference between the trading plan and the actual real-life trading (reality or performance).
Why Are Entry Methods For Beginners Important for Forex Traders
The common problem for new traders is letting the losses run and limiting the profits. They see losing trades as reasons for negative thinking. The fact is, negative thinking brings about negative things. Every trader’s fears become true.
If you suffer a financial loss, it’s not the end of the world. A loss is a regular occurrence in every business, and you should treat a loss as a cost for making a mistake.
What Did We Learn from Entry Methods For Beginners?
New traders often feel tempted to take more trades than they should due to the fact that they are scared of missing out on good profits. Having too many open trades, especially if they are strongly correlated currency pairs, can easily make you feel overexposed.
Back-testing is also important. In today’s world of software, We don’t see any reason not to run the back data through your system and see what the results are possible.
Although back-testing is no proof of future performance, at least you can see the logic of your system at work. For new traders, We definitely recommend one or four hour time frame trading due to less noise and definitely less stress. Trading the E.A.S.T. principle has its merits. Some of them are as follows:
- Back-testing is easier due to fewer setups;
- It is energetic – you can trade more pairs, which creates more opportunities;
- You can trade it with a day job;
- Larger profit potential.
Detailed Info on Entry Methods for Beginners
Setting up the E.A.S.T. Charts
Platform: Milton Markets
Forex Currency Pairs: EUR/USD, USD/JPY, GBP/USD, AUD/USD, NZD/USD
- Camarilla Pivots
- EMA 200 set on close (red)
- E.M.A. 3 set on close (blue)
- E.M.A. 8 set on close (orange)
You need to get Milton Markets to apply the correct price charts due to Camarilla offset in the time zones.
Once you apply the indicators on the chart, you can start trading. First, practise on the Demo account. If you are successful, move on to live to trade. The E.A.S.T. principle requires you to be as realistic as possible, even when trading demo.
That means you need to treat your demo account as if it was a live account. Invest the same amount of money on the demo as you would invest on a live account… and practise a lot!
In our opinion, rules are simple even for new traders, and the learning curve is shallow compared to other complex four h systems. our principle is to Keep It Simple.
When the price is below the EMA 200, only short trades are taken. When the price is above 200, only long trades are taken.
We enter short when the E.M.A. 3 (blue) crosses below the E.M.A. 8 (orange), while the price is below the EMA 200.
We enter long when the E.M.A. 3 (blue) crosses above the E.M.A. 8 (orange), while the price is above the EMA 200.
For short trades, the price should ideally be close to DPP, H3, H4, or H5, and for long trades, the ideal situation is if the price is close to DPP, L3, L4, or L5. Of course, we might often see a good bounce or rejection from other Pivot Points as well.
For short trades, the stop-loss is placed ten pips above the previous swing high, and for long trades, ten pips below the previous swing low. Targets are the next Camarilla Pivot Points.
Short Trade Example
Source: Milton markets Mt4, EUR/USD H1 chart
Long Trade Example
Source: Milton markets Mt4, EUR/USD H1 chart
We hope that the E.A.S.T. Chart trading, along with mental discipline, will bring you great trading results. If you have any questions, please don’t hesitate to ask us.
A good trading system is also reliant on good money management. Never risk more than 2 % per trade. In fact, being a beginner trader, try not to risk more than 0.5 % risk per trade. When you bring your account in profits, let’s say 10 % up, you might start taking a bigger risk, e.g. 1 % per trade. Try to keep your trades always in check and keep in mind that good money management is crucial in your trading decisions.