Boost Your Forex Trading Results With John Forman by J. Gopalakrishnan & B. Faber
John Forman is a senior forex analyst for Thomson Reuters Ifr Markets, where he provides real-time intraday and longer-term market analyses from both a technical and fundamental perspective. Forman, who has more than 20 years of trading experience and has been a contributor to Stocks & Commodities, focuses on the foreign exchange and equity markets, but also follows interest rates and commodities. An active educator, Formanís first book, The Essentials Of Trading, came out of his experience teaching trading and financial markets in the university classroom. His latest book in progress, New Trader Faqs, takes a collection of the most common new-trader questions and has them answered by a collection of experienced traders and market professionals. John Formanís thoughts on trading can be found on his blog at www.TheEssentialsOfTrading.com.
S&C Editor Jayanthi Gopalakrishnan and Staff Writer Bruce Faber interviewed John Forman via phone on August 6, 2010.
John, why donít we start by having you tell us how you got into trading.
The Wall Street crash in 1987 was the thing that got me interested. I was only 17 when that happened and it really spiked my interest. It was shortly thereafter, probably early 1988 or so, that I opened my first stock trading account.
Was that because you were intrigued by how much of a change could happen in one day, or at least in a short period of time?
Well, it was two things. It was certainly the volatility and what that represented, but it was also looking at things like Ibm losing half of its value in a single day. I realized there had to be an opportunity there. If I had had money available, I could have made a profit as the stock rebounded. There was an opportunity there that I couldnít take advantage of, because I wasnít in the market. Thatís when I decided that as soon as I was 18 and I could open my own account, I was going to do it.
Did you start by trading your own account, or did you work for an organization?
I was trading my own account and learning along the way.
Did you start with equities?
Yes. We are talking 1988 and I did not have a lot of funds, so commodities and futures were beyond me at that point. The stock market was pretty much the only game. I dabbled in corporate bonds and things like that, but that was not my focus. It was definitely equities.