fxnv's blog

Friday's non farm payrolls were worse than expected causing a spike down in the USDCAD. But was the spike just a random reaction to the news or was response by traders planned to sell off the USDCAD so they they can buy it back after they lowered the price sufficiently to come in with some size? Look at the chart below;
 

This is a favorite discussion. Many traders believe that somehow there is a system that is a "Holy Grail". I traded for a private equity fund for 15 years and never saw any trader, in any bank that I dealt with, "rely" on a "trading system". Sure some traders had their own systems to provide them with a sense of direction and trend, but they never relied on the system totally.

Many people ask about the type of trading we favor. For example, do we prefer day trading to swing or position trading?

Nobody can teach you how to think for yourself. But there are certain ways of thinking, which one can learn through practice, that will lead to consistent behavior that is necessary for trading. The best way to change habit patterns and to overcome the fear and greed cycle is to develop confidence. Confidence comes from practice and testing and, therefore, knowing what your own trading system is capable of achieving. This kind of preparation is indispensable for success in trading.

If you think you can trade forex then we have news for you.....trading forex is not for everybody. In fact trading of any kind is not for everybody. The reason is that trading requires discipline, patience, objectivity and the ability to see the market as it is rather than as we want it to be. The most amazing feature of trading is that it can be easy to learn but difficult to execute; and its not that the technical or fundamental analysis is so challenging, which it can sometimes be, but rather our own psychological patterns that get in the way.