Trade Forex Like a Pro
09/15/2007 12:00 am EST
In his workshop, Ed Ponsi, president, FXEducator.com, told attendees not to waste their time trying to catch the little moves in the market. Instead, focus on the big picture, track the trend, and don’t fight it, if you want to be a successful Forex trader.
He also warned against trying to apply your expertise as a stock trader to the Forex markets. His experience has shown him that the time frames just don’t work the same; long-term trading (mostly, weekly) is the way to go in forex, noting that it’s a lot less work for a lot more money!
Ed recommended that attendees maximize their trading by:
- Keeping a journal
- Selling into strength
- Knowing the psychology of the markets
He demonstrated these points by covering several specific trading strategies, explaining the entry and exit levels, as well as key ingredients of the trades. Ed advised traders to forget about shooting for the highs, attempting to squeeze every last pip out of the trade. Instead, he recommended they exit a trade by getting out in pieces. And always consider–what’s the worst that can happen?
Ed closed his workshop by discussing how traders might utilize his new book, Forex Patterns & Probabilities, for further ideas of trading strategies. Ed wrote his book to give the reader a good, basic introduction to the world of forex trading. In one section, he addresses trending markets, including his recommendations to look at multiple time frames as well as tips on how he uses the ADX line to spot trending markets. Additionally, he introduces volatility stops based on average true range that should help traders develop a precise, well-reasoned method for stop determination.