This is the second post on our trader interview series. Currensee Trade Leader TCM Spencer Beezley (Ticker: SPBJP.A) uses a simple, common sense approach that adheres to strict money management and uses proven trading techniques. He mainly trades the major pairs and always uses stop losses. Trades are usually closed long before the stop loss is triggered due to a dynamic time based exit that reduces overall exposure to the markets. TCM Spencer Beezley uses a breakout and scalping strategy as the two main strategies traded on this account. He opens up to five positions at a time and always maintains a low amount of leverage per position.
I believe volatility will continue to be high due to the many unresolved issues that much of the world is still facing or has yet to face. When we see news and rumor affecting currency pairs to the degree we’ve seen in much of 2011, you have to consider how much is still yet to come in the attempt for resolve in these issues. With weak fiscal policy or short term fixes that ‘kicks the can further down the road’, the market thrives off any relevant news resulting in higher volatility.
What types of Forex strategies will continue to prevail in 2012?
The types of Forex strategies I believe will always have a chance of prevailing are ones that can be stable in a multitude of market conditions, use a tight stop loss, and do not rely on high degrees of leverage to be successful. It is also important to have a diverse mix of strategies to help smooth out the equity curve when one or more of the strategies is experience periods of slight drawdown. I prefer also to hold trades short-term to reduce overall market exposure and being liquid by the end of the week.
What would a breakup of the euro mean for your strategy?
In my strategy, the EURUSD is the currency pair that I trade the most. I am always working in the background to identify new trading strategies that trade different currency pairs. As a Forex trader, it is always important to be prepared for shifts in the market and to be able to accommodate for those shifts as seamlessly as possible.
Next week: JLFX Network (Ticker: JOLSU.G)
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.