FX Trading – My First Attempt
When I first tried to make money FX trading, I worked really hard at it for two years, and eventually wiped my account in acts of desperation and frustration. I came to the conclusion that it was not possible for amateurs to be successful.
I even thought I was being unlucky when news came out that resulted in trades going against me. My whole FX Trading experience was stressful.
But Since Finding an FX Trading Mentor ..
But since I have found an online mentor and tried again, not only has my FX trading become consistently profitable (I haven’t had a losing month yet), but I also feel relaxed about it, and most of the time there is nothing for me to actually do.
This is how I think trading should be.
My FX Trading Weekly Schedule
My daily and weekly trading habits are simply:
Read the financial news
What I am looking for is articles that affect the Forex markets, principally anything that affects inflation, interest rates, or the monetary policy of the main central banks. Hence most articles are not relevant to my FX trading, hence why this usually doesn’t take long.
Form my weekly FX trading plan
Form my weekly FX Trading plan as per what I have learned from my online mentor.
Once a week I evaluate what is the current status of the relevant markets that will affect my FX Trading (equity markets, bond markets, commodities, oil, etc), and from this information I decide which currency pairs I am interested in.
For example, as soon as I see commodities dropping, triggered by something like bad news regarding US or China growth, I will be looking to short the AUD as Australia is heavily dependant on exporting commodities.
If oil and equity prices start to fall, I will be looking at bond yields which if falling will confirm fear returning to the market and people running for safety, and hence I will be looking to go long EUR and JPY which are treated as safe haven currencies, etc.
So step 1 of my FX trading strategy is to understand the fundamental reasons why currency prices should be moving. From this I will created a list of currency pairs I am interested in.
I then will look at the FX charts for good possible technical setups, and decide on my final list of currency pairs I will be interested in which will generally be anything from 0 to 6. So I will not be going mad trying to watch 30 charts.
Executing My FX Trading Plan
My FX trading has to be simple and not time consuming. Within Metatrader, I will then place alerts at certain price levels on the charts I am interested in, so I don’t even need to watch them. I’ll only look at them once a day first thing in the morning, or if I get an alert.
With my FX trading, there is nothing to do most of the time, which is how I want it.
I think we are all taught in our school and working lives that the harder you work the more successful you will be.
But with FX trading I think it is the opposite. In my first attempt to make FX trading successful I worked really hard at it and watched FX charts for hours a day and I lost money. Now I must average less than 1 hour a day about 5 days a week, and I make money.
Friday I will review the stops of any open trades I have, but I will not open any new trades. I want to be protected in case any news comes out over the weekend. Saturday and Sunday I usually do nothing, but I may create my trading plan on Sunday.
Like anything, if FX trading is stressful or not enjoyable, I won’t be able to keep at it over the long term. But now I strongly feel I am on a good path with it and full intend to be doing it for the rest of my life.