FOREX Trading Spaces and Profiles

FOREX is a very big trading space. It attracts an amazing array of traders, styles, techniques, systems, and methods. Perhaps most importantly, it is composed of traders focused on a wide range of price action and time frames, entering orders from a 1,000 lot to a 10,000,000 lot. The market accommodates full-time very sophisticated computer systems executing trades in a duration of seconds or even a fraction thereof. These systems may be hunting only two or three pips. It also accommodates the small part-time discretionary trader watching 1-day charts and seeking 300-to-500-pip long-term profits while he toils at a day job.
And, it accommodates everyone in between.

Trading Spaces is intended to start you thinking about where your own trading space may be located in this vast continuum.

Tip: Find a trading space that fits and drill down deep. While it may take some moving around to get comfortable, one of the biggest mistakes new traders make is shifting from one space to another; trading 5-minute bars today and 4-hour bars tomorrow.

Every market is a complex network or matrix of buyers and sellers engaged in a tug of war for trend supremacy at many different price levels. Technical traders focus on analyzing these battles using charts with different time frame bars.

A trading profile is the area in which you, dear reader and new trader, decide to do battle in the FOREX wars. Take time selecting your battlefield. Be sure it is the right one for you -- and come properly armed and ready! Work with a single time frame for now.

Begin thinking of the market as a process and you, the trader, are interfacing with it every time you trade. The successful trader works to adjust to the market process. The unsuccessful trader endeavors to get the market process to adjust to him or her.
By Michael Duane Archer
Michael Duane Archer has been an active futures and FOREX trader for more than 35 years. He has worked in various advisory capacities, notably as a commodity trading advisor, registered SEC investment advisor, and branch manager for Heinold of Hawaii. He currently trades FOREX and futures and is involved in several technical analysis research projects.

Copyrighted 2016. Content published with author's permission.

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