Daily Archives: July 7, 2010

3 Comments

Tomorrow, Currensee and FXCM present a live Forex Market Analysis session with FXCM Senior Technical Strategist Jamie Saettele.

Sign up here. Webinar starts Thursday July 8, 2010 at 5:30PM EST

In this informational session, Saettele will use live charts to analyze the market and identify technical trading opportunities while taking questions from the webinar audience. Attendees will learn:

  • What Jamie is trading now and what opportunities he sees in the weeks ahead
  • How to pinpoint entries and exits with channeling and Fibonacci techniques
  • The optimal time of the day and week to establish and exit a position

The webinar is free and suitable for traders from beginner to professional. At the end of the session there will be time for audience Q&A with Jamie and all attendees will get a special offer from the Currensee Marketplace and FXCM. Please join us for this engaging webinar on Thursday July 8 at 5:30pm ET, and feel free to invite your friends too! Also, get involved on Twitter by asking questions to @currensee.

Sign up here.

About Jamie Saettele:
Jamie Saettele is an active trader, Senior Technical Strategist at Forex Capital Markets LLC in New York and author of Sentiment in the Forex Market (Wiley Trading). His technical strategy focuses on sentiment indicators and Elliott wave and is published at DailyFX.com. He has contributed to Technical Analysis of Stocks and Commodities magazine, SFO magazine, Futures magazine, and Investopedia.com.

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Be sure to read the full risk disclosure before trading Forex. Please note that Forex trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved before trading. Performance, strategies and charts shown are not necessarily predictive of any particular result. And, as always, past performance is no indication of future results.

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Be sure to read the full risk disclosure before trading Forex. Please note that Forex trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved before trading. Performance, strategies and charts shown are not necessarily predictive of any particular result. And, as always, past performance is no indication of future results. Investor returns may vary from Trade Leader returns based on slippage, fees, broker spreads, volatility or other market conditions.

2 Comments

I remember my job at Fidelity back in the late 90s. We were cooking up this revolutionary new way for people to trade…online. It was back in the day when you sometimes paid hundreds of thousands of dollars for a URL and every website had a little worker guy image on it because it was under construction.

I remember how many people at that time said it would never happen, this Internet fad. It will never take off. Who wants to go on the Internet to shop? Who would ever give their credit card across the world wide web, into the ether? Why would people rather talk online than on the telephone? Well, friends, if you are living in the year 2010, you are living the Internet dream. We are connected 24/7 and it’s getting easier and easier to shop, communicate, browse and work.

But there always has to be someone who doesn’t believe it. Along comes Prince, who I love dearly. My first album that was banned from my record player by my parents was Purple Rain. I think I know every word to every song on that album. The man is a musical genius and has millions of fans around the world but refuses to embrace technology and went so far as saying the internet is over in a recent interview picked up by Mashable. And, he went on to say:

"All these computers and digital gadgets are no good. They just fill your head with numbers and that

can’t be good for you."

It is hard to believe that there are smart, influential, talented people out there who believe that the Internet is the root of all evil. What about all of the great things the internet has does to open business and commerce? To connect people around the world? To create access to information? To make music available to fans everywhere? To give Forex traders access to each other (shameless plug)?

Maybe we’ve all fallen prey to the cult of Steve Jobs, and Facebook, and iTunes and Twitter and the many gadgets and websites we use every day to help us do our jobs better, live better, learn more and be more productive members of society. Maybe we should go back to our pre-Internet days and forget all the gizmos, gadgetry and websites.

…on second thought, I’ll stick with the cult. Sorry Prince, I ain’t buyin’ it.

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Be sure to read the full risk disclosure before trading Forex. Please note that Forex trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved before trading. Performance, strategies and charts shown are not necessarily predictive of any particular result. And, as always, past performance is no indication of future results.

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Be sure to read the full risk disclosure before trading Forex. Please note that Forex trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved before trading. Performance, strategies and charts shown are not necessarily predictive of any particular result. And, as always, past performance is no indication of future results. Investor returns may vary from Trade Leader returns based on slippage, fees, broker spreads, volatility or other market conditions.

1 Comment

There's a poll on the Currensee Facebook page which asks the question, "As a trader, which of the following psychological factors do you find the hardest to overcome?" The possible options are:

  • Patience
  • Fear
  • Greed
  • Lack of Self-Confidence
  • The two most common responses I saw among the traders who left notes along with votes were Patience and Fear. Casting back in time (way, way back!), I think I can remember my own progression. Here's how it went.

    Greed
    Let's face it. Most of us get into the market because of the potential to make a lot of money. Generally speaking, this doesn't end up being the thing which keeps people there, though. Most folks who stick it out over the long run tend to have additional reasons. They enjoy the intellectual challenge. Or maybe it's the "game" perspective. For some it's the competition. These additional reasons give a trader purpose when the realization hits that they probably aren't going to make 1000% returns every year.

    Of course there's also the micro greed that can take place on a trade-by-trade basis. It's a definite trap to think mostly about how much you can make. Folks who do it too much don't last very long. I can certainly attest to what can happen when the risk side of things is ignored. Fortunately, I think I got passed that.

    Fear
    When I got my start in trading, back in the Jurassic Era, there wasn't much in the way of demo trading. What we had then was literally paper trading – keeping track of buying and selling in a notebook. When I got to the point of needing to develop trading on live prices I had to do it with real money. I was all of 18 at the time and not exactly flush with cash. The money I traded was all that I could scrape together. On top of that, I didn't have experience actually putting in orders, so you bet there was a fear factor.

    Practice tends to reduce the fear aspect of things. As time went by, I got comfortable with both entering trades (over the phone!) and having money at risk in the markets. The fear factor faded, except on the occasional instance when I goofed something up and had a position I didn't mean to have. That can get your heart rate going pretty quick!

    Patience
    Once you get over the hurdle of being afraid to pull the trigger, the pendulum can definitely swing in the other direction to being overly eager to do so. I have definitely gone through periods where I just let things run away with me. This sort of thing often happened after a good string of results. Can you blame me? If you're on a good run you want to keep it going. That tends to make you forget your trading rules, though, which is never a good thing.

    Actually, some folks get caught up in revenge trading which can also be a lack of patience situation. This comes about when you take a hit in the market – often one bigger than you probably should have – and you're eager to make that money back. There's a scene in the Trader video where Paul Tudor Jones takes a hit in the markets and talks about making the losses back with interest. The difference between him and the rest of us, though, is that he clearly didn't get impatient, though he certainly did make the money back, and then some.

    Lack of Confidence
    Once I got over the three previous issues (mostly, at least), confidence became the thing which did the mental damage. I am not primarily a rigid system trader. That means my own discretion weighs heavily in my trading decisions. As such, when trades don't go well, it can be a confidence shaking situation.

    System traders have a simpler path to evaluating their trading and do discretionary traders because there is no human element (or at least there shouldn't be).  It's just a question of whether the system is working properly. With a discretionary trader, though, the methods employed have to be evaluated as well as the trader's application of them. For those inclined to be hard on themselves (as I can be), a period of underperformance can create a crisis of confidence. If you're prone to shaky confidence, you might be better off being a system trader rather than a discretionary one.

    Charting Your Own Forex Path
    The progression above was my own path through the comment mental pitfalls of traders. There was certainly overlap, and some things supposedly put behind me reappeared at different points to trip me up. Your own path may be quite different. It's good to know what's underlying your mental hurdles, though. It makes them that much easier to overcome.

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    Be sure to read the full risk disclosure before trading Forex. Please note that Forex trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved before trading. Performance, strategies and charts shown are not necessarily predictive of any particular result. And, as always, past performance is no indication of future results.