It all starts with the Central Banks One of the key skills you need to acquire as a trader is the ability to identify good trading opportunities. Now this is not simply being able to draw trendlines and understand technical analysis. That is a key component for sure but what I’m talking about is the step before, identifying currency direction and potential trading opportunities. To get an understanding of what I mean I need to explain how the ‘Fundamental’ market works. Long term currency direction (trends) come from the Central banks. They manage their respective economies by micro-managing the monthly economic data releases. Their overall plan has always been to keep inflation between a band of 2-3% per year. They know if they do that the economy will tinker away without any major issues. If inflation starts to get above 3% then they’ll look to take the steam out of the market by raising interest rates. People are encouraged to save and the higher cost of housing etc slows cons...
Professional Trading is Methodical & Systematic I know a lot of traders want to become full-time traders and they dream of a great lifestyle working 30 minutes a day and lazing by the pool or beach. But how can you expect to reach this dream or goal without first adopting a professional structure to your trading? This includes a rigid trade plan and daily trade routine that identifies and guides you into good trade setups and steers you away from potential bad trades. It’s all about increasing your probability of success. But all that will be wasted if you can’t, first of all, manage your capital professionally ! Most traders want the dream without the professional approach I have spoken to thousands of traders that are super keen and enthusiastic. The usual comments I hear are: “I promise I have what it takes”, “I will be patient and stick to the plan”, “I never lose” etc, etc. The problem is everyone’s trying to get to the end result without any change to their curren...