Forex Focus: Do You Analyze Your Trades? by P. S. Nouvion
Access to foreign exchange trading has opened up exciting trading options for the
retail trader. You can now trade alongside corporations and institutions in a highly
liquid market that is global, traded around the clock, and highly leveraged. Before
jumping into this market, however, we must understand the factors that affect the
forex market. With that in mind, STOCKS & COMMODITIES has introduced Forex
Focus to better prepare the retail trader to participate in the currency market.
No, seriously. Do you?
Ever since I started trading currencies about three years
ago, I knew that I lacked the discipline to be a consistent and profitable trader. But I still love to trade; I just
can’t stop thinking of it as a game! I know that’s not the
“trading guru” way of thinking, but fortunately, I do not risk
too much money on the market and my primary “trade” is as
a programmer, so I guess it is okay for me to trade for fun.
Every once in a while I try to get back on the righteous path
and approach the forex market more seriously. Just last
month I created an EA, an automated program, to manage my
orders so that I would not be tempted to gamble and be forced
to respect my initial stop-loss and profit target. Let’s just say
the software was great, but I was still in there messing around
with the orders.
AND SO IT GOES…
The issue really is that we don’t know when we’ve won
enough pips, and we don’t know when we’ve lost enough
pips. So I looked around for money management concepts.
Standard trailing stops were the first thing I looked at and then
I moved on to average true range (ATR) trailing stops,
chandelier exits, and other options. Nothing was helping, so
I did a lot of research; I even found out that some people do
technical analysis on fundamental analysis. I had been working
on pattern recognition and neural networks (still am), and
after going through a lot of complex concepts, I decided to
take a simpler approach.