- Stop trying to make the market fit my strategy
This can be a disconcerting experience, but my number one lesson for 2014 is to remember not to try and make the market fit my strategy, and start to make my strategy fit the prevailing market conditions. For example, trying to implement a break out strategy when the market is in consolidation mode. You see the price break above your noted resistance level; you put on your trade only for price to turn back around causing you to lose money. A breakout strategy does not work in consolidating markets. Instead, you need to think about what the market is doing first, and if it is moving sideways consider something else, for example a range trading strategy. Having a repertoire of ways to trade the market rather than one favourite strategy that you try to use in all conditions is a more sophisticated (and hopefully successful) way to trade.
- Stay disciplined
- Join the community
Becoming more actively involved in trading blogs, communities twitter etc., is my final resolution of 2014. I tend to dip in and out of them rather than engage with any consistency. This means that I am potentially missing out on a wealth of information and trade ideas. Trading can be a solitary business, but the community can make you feel part of something and not so alone when your trade goes wrong or the going gets tough.
Kathleen Brooks is Research Director at FOREX.com. She has extensive knowledge of the financial markets after working as a trading analyst on the foreign exchange trading floor at BP's London office. While she was there, Kathleen covered foreign exchange, fixed income and equity markets and also co-managed a trading book for its analytics trading desk. [More about Kathleen Brooks]
Editors’ Picks
EUR/USD stays near 1.0750 following Monday's indecisive action
EUR/USD continues to fluctuate in a tight channel at around 1.0750 after posting small gains on Monday. Disappointing Factory Orders data from Germany limits the Euro's gains as investors keep a close eye on comments from central bankers.
GBP/USD retreats below 1.2550 as USD recovers
GBP/USD stays under modest bearish pressure and trades below 1.2550 in the European session on Tuesday. The cautious market stance helps the USD hold its ground and doesn't allow the pair to regain its traction. The Bank of England will announce policy decisions on Thursday.
Gold price turns red below $2,320 amid renewed US dollar demand
Gold trades in negative territory below $2,320 as the souring mood allows the USD to find demand on Tuesday. Nevertheless, the benchmark 10-year US Treasury bond yield stays below 4.5% and helps XAU/USD limit its losses.
Ripple lawsuit develops with SEC reply under seal, XRP holders await public redacted versions
Ripple lawsuit’s latest development is Securities and Exchange Commission (SEC) filing, under seal. The regulator has filed its reply brief and supporting exhibits and the documents will be made public on Wednesday, May 8.
The impact of economic indicators and global dynamics on the US Dollar
Recent labor market data suggest a cooling economy. The disappointing job creation and rising unemployment hint at a slackening demand for labor, which, coupled with subdued wage growth, could signal a slower economic trajectory.
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