I recently called the most profitable currency trader, on my portfolio and asked if he can share what he does in the day. He will not allow me to disclose his name however he allowed me to say he is in his late 30's, gave up his engineering job 2 years ago, to trade full time.
He also invests in stocks and property, so do not put "all your eggs in one basket"
Ok, naturally, a few coffees, then I watch the BBC News it's on at 5.30 am GMT, but repeated, The Briefing, presented by the clever and beautiful Sally Bundock. Very insightful 30 minutes, says what's happening in the finance world, gets me thinking of ideas, trades etc.
Then onto the P.C.
Where do I get my news from?
You can stay up to date with the markets from several sites :
1. www.bloomberg.com – Market News ( My favourite)
2. www.investing.com – Market News
3. www.reuters.com – Market News
4. www.finviz.com – Forex Trends/Asset Performance
5. www.forexfactory.com - Reports
6. www.calculatedriskblog.com – Report Predictions
7. www.marketwatch.com – Market News/Stock Performance
To name but a few. I will have Bloomberg on the TV, in the background.
I trade every opportunity, I use the leverage of max 1:100. Again, every trader is different. Some do not trade leverage, but basically, you need to be a bank to make any profit. Some take bigger risks with higher leverage. That is their business.
I use Fundamental Trading, Technical Analysis, Trading Sentiment and a combination of all.
I consider myself a day trader but will hold a position if I must. No one likes swaps.
I like to make manual trades mostly, now because I am watching. I have four monitors, not because I think I am on Wall Street, but it is easier on the eye if I'm in front of a screen during a session.
I like the forex 3-session system. The trend is my friend, usually get an idea of what's happening by looking at Asia when I wake.
Ok, put simply when the Asian market opens, traders trade, be it banks, institutional investors or speculators. If I see a gap in a currency pair, I will take a look. If the trend reverses for a while but reverts, I will jump in.
I found that when the Asian/European sessions overlap, it often see increased volatility, due to increased trading activity during those hours. Some are taking profits others are closing but then the trend normally reverts.
If the currency pair is a cross made of currencies that are most actively traded during Asian and European hours (like EUR/JPY and GBP/JPY), there will be a greater response to the Asian/European session overlaps and a less dramatic increase in price action during the European/U.S. sessions' concurrence I have realised.
Bear in mind I prefer high volatility for my strategies, I go in big and happy with say 10 pips, this is sometimes not allowed by some brokerages, so make sure you know the trading terms of the broker. Therefore 10 pips equate to a circa $100 return.
I prefer MT4 to MT5 (although I haven't really investigated the latter . Why change something that Is not broken. I really don't like some brokerages own web-based platforms, I know other traders that love them. I think that is a choice to be made individually. Trust me I tried all at the beginning, blaming the platforms for my early losses. And as you know Kyriacos, I had a lot.
Once the Asian European market settles and I have made the gains I predicted, it becomes a waiting game, looking at potential short term movement.
Again, I am old-school and still rely on the maybe antiquated platform forexfactory.com.