Some ideas about trading

Discussion in 'Forex Trading' started by drasfs, Mar 29, 2007.

  1. drasfs


    Do you want to get good in forex? I know a man who became the best player in a very popular videogame,where the price money for a tournament would be about 200k dollar. After that he went to poker, and is now one of the best poker player in his country.

    I asked him if he had some secret, and he simply told me that there is none, but to train rigorously.

    I think the same applies to forex. If you want to get real good, practice 6 hours a day, and then, you might get a knack for if after 1 and a half year. You need, practical and theoretical experience.

    A personal idea would be to scalp and range trade at the same time beause you would then be glued to thedisplay. And trust me, you will get a feeling of how the currency moves after you have watched the damn ticket 8 hours a day, for 3 months. You will start to learn how it behaves on a short term basis, when and how much it will go up. For instance ive found that eurusd on average just goes up 6-8 points before retracing back. However, you wont get a knack for bigger price movements, since they are due to fundamental and some other factors, which you wont learn by just watching the ticket. However, knowing how the price behaves on a short term basis is valuable for your entries and exit, or if you want to scalp. Bigger price movements are a lot more difficult to predict. I would say it is nearly impossible to get right 90%, which you could easily be for trades on a shorter term. Because you would have to be able to predict wheter they will rise the interest and if they are dovish on the economic releases, which takes into account so many factors. Like now for example, the eurusd increased from 1.3300 to 1.3414, partly due to them being dovish, but then it retraced back 1.3270. It smells fishy, and like a planned setup, which i guess no one could have predicted at the time. I read a lot of forecasts at that time. A lot of traders thought (when the price was at 1.3360,after having just retraced from 13414)it would try the 1.3414 again, but that it was possible for it to retrace back to 1.3270. No one was sure where it would go. A lot of expert had different forecasts, which just tells you that there a lot of subjectivity in their forecasts.

    I would also recommend trading with real money, because you will get more serious,interested and catious then, and learn from your emotional mistakes that you will undoubtedly do, because you wont listen to any book who tells you to be cautious and hold your ego.

    However, ive found that the more cautious im, the better i perform. Cautious is closely related to patience in this case. Dont buy the currency at 70, but wait if it goes down to 58. Do that, instead of buying partially at 70 and 58, but instead make a partial position at 58,and then the other than at 48, if that would ever happen. Your trades should only be of high probability. Minimizing risks are important. Prioritize that more than having less probability trades and more trades as a result.
  2. Thanks