This is thread is intended to be Chapter 1 of 4 chapters covering trading as I have come to define it. Which are:
1. Having a defined POINT OF REFERENCE in this complexity we know as [PRICE]
2. Choosing what DIRECTION to trade, BUY/SELL??
3. Deciding WHEN to place the trade
4. When to EXIT the position and repeat.
I know these have been discussed in different threads, but here I would like to begin from the very basics.
Each topic will have its own thread so as not to clutter with back and forth posts. I will update with links later.
I believe we all need to have clear cut answers to these questions as the foundation for trading professionally.
PROLOGUE:
FX trading and trading in general is a profession of probability, NOTHING IS 100% CERTAIN (to the best of my knowledge), these series of chapters aims to remove as much discretion as possible from trading forex , anything that can be defined should be defined, anything that can be optimized should be optimized. The less the number of random variables the better our final probabilistic outcome. Getting there is the mission.
PLEASE THIS IS NOT ANOTHER PISSING CONTEST!!
Technical, Fundamental, Hand signs, Beer consumption, Butterflies are all relevant...as long as you can clearly prove/defend it.
If you choose to reply to this thread, you agree you are equal with every other poster. Your trading history is irrelevant. Think of this as a gathering of philosophers come to solve interesting questions.
If you have an opinion or do not agree with an opinion, kindly explain your point to the detail.
Please take the time to think of answers to issues arising from your own opinions and provide answers before hand.
I would like the threads to be short and concise.
It would be great if we can follow the format I will lay down in the next posts.
1. Having a defined POINT OF REFERENCE in this complexity we know as [PRICE]
2. Choosing what DIRECTION to trade, BUY/SELL??
3. Deciding WHEN to place the trade
4. When to EXIT the position and repeat.
I know these have been discussed in different threads, but here I would like to begin from the very basics.
Each topic will have its own thread so as not to clutter with back and forth posts. I will update with links later.
I believe we all need to have clear cut answers to these questions as the foundation for trading professionally.
PROLOGUE:
FX trading and trading in general is a profession of probability, NOTHING IS 100% CERTAIN (to the best of my knowledge), these series of chapters aims to remove as much discretion as possible from trading forex , anything that can be defined should be defined, anything that can be optimized should be optimized. The less the number of random variables the better our final probabilistic outcome. Getting there is the mission.
PLEASE THIS IS NOT ANOTHER PISSING CONTEST!!
Technical, Fundamental, Hand signs, Beer consumption, Butterflies are all relevant...as long as you can clearly prove/defend it.
If you choose to reply to this thread, you agree you are equal with every other poster. Your trading history is irrelevant. Think of this as a gathering of philosophers come to solve interesting questions.
If you have an opinion or do not agree with an opinion, kindly explain your point to the detail.
Please take the time to think of answers to issues arising from your own opinions and provide answers before hand.
I would like the threads to be short and concise.
It would be great if we can follow the format I will lay down in the next posts.