Technical chart trading is not trading
Technical chart trading is not trading, it is gambling at best. You need to understand more than basic economics and how markets are influenced. Charting will help to give a view of market direction, and you only need to have trendlines and some basic indicators, no more than 3 indicators. Anything else is a waste of money.
If you understand economic data and how bankers trade then you will stand a better chance.
CAPITAL MANAGEMENT - this is key and if you don’t understand how to manage your capital whilst trading then forget it. Stop and go to a casino. This requires discipline and a very good understanding of financial management. Know when to trade, what to trade and how much to risk requires certain level of knowledge. Trendlines on charts help you to understand where/when a potential trade is worth looking at. Economic data will help you to understand what is driving price action and the market, along with the Order Execution strategy you need to take. Capital Management is the overarching decision as to how much you should risk based on all the information presented.
Rules, you need rules and you need to follow them. The important thing about rules is that don’t listen to people who call themselves traders, listen to the people who have traded in a structured professional environment, like the banks! It is easy to come up with rules, but you have to come up with the right ones, and definitely listen to the professionals, as they have had to follow rules in their banks otherwise they would be fired.
The challenge I find had in the market is that there is no one platform that can bring this all together. I am now getting closer to a consolidated solution, but not there yet.
In summary to trade FX you need to know how the professionals trade. The problem is everyone is a professional in an unstructured retail trading market. You will have to pay to learn this, but you have to exercise some due diligence and ask a lot of good questions before committing to your hard earned money. Beware I have run into individuals who say they have traded for the banks, but were they a good trader, and did they actually work in the bank. Finally, like any business when it comes to making a decision with respect to money you have to have a decision process in place. Retail trading offers hope to people in making a lot of money. We are emotional beings, we set aside any rational thinking process for instant gratification.
Trading is a business and treat it that way
Contact Michael Davis for those who want to earn and learn with the best signal on FX and make a daily profit as a business.
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