Trading is easy, but it isn't simple. The ease is do to the fact that price can either go up or down and you can either buy or sell. Trading isn't simple because there is an emotional battle that every trader faces but only few win.
This battle brings us to the 3rd bad habit that every FX trader needs to overcome to have a successful career. Without, overcoming this bad habit, you'll find your self seeing exciting gains in your trading account only to have one or two bad trades get out of hand and wipe out the gains recently made.
So begins a new series to help you understand, navigate, and trade the often over-saturated yet still mysterious Forex market. Of course, the market place has become more complex with high-frequency trading programs, Quantitative Easing around the world draining the volatility out of the market and more players than ever before, but one thing remains. The market is still made up of many players trying to cash in a decent amount of pips.
The purpose is to help you see from my point of view, what holds traders back and what propels them forward. Just to let you in on a secret up front, it's never one trade. Sadly, many act and trade like it is. What reallys holds traders back or propels them forward are certain habits, both destructive and productive that will be explained in the weeks ahead.
This series is kicking off on the mind-set that limits most traders from success. Personally speaking, adjusting my view on the habit of being right vs. making money was a game changer for my trading. This article dives into the need to be right, the desire to be proven right vs. how the market works and how you need to be agile in order to stick around for the big move.
Truth be told, there will always be "Black Swans", a seemingly unpredictable and massive-impacting event that can change everything that few if any foresaw. In light of the black swans in the market, the heros and heroines of the game are those that know when to fold em' and move on to the next set-up or edge.
"Leverage can't turn a bad invetment good, but it can turn a good one bad"
This series is working on the habits, both good and bad, that traders must focus on to create an environment for success. Today's article, is a thorough look at overleveraging. Please understand, this is a practical look at a common problem that most new traders must face and overcome to stay around long enough to make trading worth while.
The allure of the market is clear. To make money part time or from the freedom of your home is something many people want. But how you go about extracting money from the market is another matter. Some traders work to learn how to trade the market by reading indicators and managing risk. Other traders wish not to spend the time learning how to trade and analyze markets and rather, seek out automated trading systems.
If that's a path you're interested in, here's an article that breaks down the ups and downs of Automated Trading.
Elliott Wave is akin to a road map for the makret. The trick is that the desitination is never certain and there can of course, be multiple roads to get there. However, with the use of Fibonacci Retracements & Fibonacci Expansions, you can have a clean tool that can give you specific numbers to focus on for trade entries or exits. Today's article walks you through the history and application of Fibonacci.
This question cuts through the noise to help you see what's helpful and what's not. As a trading analyst and instructor for a major FX firm there are a handful of questions that I gladly answer over and over again. One of the common ones relate to, which indicator would you never wish to be without. From a pure indicator point of view, I would likely say Ichimoku for it's dynamic way of showing you the power of the current trend. However, for a disciplined approach that I'd never want to leave, I'd have to say Elliott Wave. Here is an introdction to the methodology and how it applies to FX.
It is easy to associate trading with volatility. However, certain currencies hold more volatility than others. These typs of currencies are known as Higher Beta Currencies. Trading any market is often easier with volatility or bigger moves so traders will often look for opportunities in high volatility currencies first.
This article will show you which curencies are often more volatile so that you can find the action that makes trading worth your time. Just like in the stock markets which often have sectors within an economy that are more volatile than others, FX has certain currencies that you can trade if you're looking for more action on a pair than some of the majors like USDCAD, USDCHF, or USDJPY which are lower volatile currencies.
Many Forex traders were shocked by the March FOMC meeting when Janet Yellen said that the Fed could raise the Fed Funds rates as soon as early 2015. This move allowed the US Dollar to have it's best day since Fall of 2013. Many traders have found themselves asking the same question, was Wednesday, March 19th, the bottom for the USD.
Today's article breaks down what happened in different markets that could shed light on what's to come for the USD. What's also helpful, you will see the preferred set-ups should the USD begin to strengthen. It's often helpful to find the low hanging fruit and not just blindly buying the USD against whatever's convenient.
Today's article helps you to answer a key question of your trading strategy. The questions is, how long will you typically hold your Forex trade? The answer to this question will inadvertedly reveal a lot about your personality and how comfortable you are holding risk over a period of time.
The three common designations based on how long you hold a trade are day trading, swing trading, and position holding. Each type has it's own benefits and draw backs. Whichever method you decide on, I have one key piece of advise for you: hold on to your winners longer than you do your losers and that can make all the difference.