Here are 3 more tips, by Richard Olsen, guest speakers of this year's conference and Raoan Khassan and Lisa McGrath as attendees.
"The Trading Mantra"
By Richard Olsen, Chief Executive of Olsen
Financial market prices are like a coastline. If we sum up the price movements over a whole year, then this is a whooping 1600% after transaction costs; so ample of opportunity to make a profit; you can afford to be selective and do not rush into trades, you have time.
Price action in financial markets is counter-intuitive: traders are over-confident and over exposed in the direction that fundamentals favor. Any larger order can cause a price spike triggering margin calls fueling a continuation of the price spike leading to further margin calls. This effect spills over and drives markets away from fundamentals; so always try to figure out, what seems obvious to the other market participants and then choose a different path.
Always be humble; you may be wrong: as soon as the underlying assumptions of your trade prove false, then take your loss without delay; if you are not decisive, you throw good money after bad.
"Precision is the Holy Grail"
By Raoan Khassan, attendee of the ITC 2012
Always pay attention to details in the chart. Use tick chart even if you're not a scalper: it helps you draw support/resistance lines more accurately. If you're familiar with Elliott wave theory, ticks can also give you a clue.
Once the lines are drawn, don't hurry to delete them. A line, which worked as resistance in the beginning, can work as support later. Once again, you receive the best result when using ticks.
Personally I use Fxstreet's chart for the analysis. Check it out: https://www.fxstreet.com/rates-charts/forex-charts/?interbank=1
Ã¢â‚¬Å“Taking advantage of the what is permittedÃ¢â‚¬Â
Lisa McGrath, attendee of the ITC 2012.
In the US we have been experiencing new and increasing regulations on spot FOREX.
The latest tip that IÃ¢â‚¬â„¢ve been implementing in my trading is a concept known as Ã¢â‚¬Å“offsettingÃ¢â‚¬Â. Essentially I attempt to get on a trending move and stay with the trade until the trend reverses. Every healthy trend provides corrections or pull-backs. Ã¢â‚¬Å“OffsettingÃ¢â‚¬Â allows a trader to enter the pull-backs giving an opportunity to profit on the corrections while remaining in the overarching trend, basically doubling-up or down on a trending move. Other benefits of taking advantage of Ã¢â‚¬Å“offsettingÃ¢â‚¬Â, is that by taking an opposing direction on an original trade, the trader increases the accounts Margin. Finally, when a pull-back turns into a trend reversal, the trader has realized an early entry on a new trending move.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.