Forex Trading: You Can Teach an Old Dog New Tricks
One thing that has not changed over the years is that the forex market continues to be driven by news. I remember when I first started out, the key report was the monthly trade report. We used to quote spreads of 200 pips wide after the report and other bank would trade on it.
As a bank trader, we had to have a view on the market and quote accordingly. We were not liquidity providers but true market makers.
I traded off my gut instincts, feel for the market and never looked at a chart. Inf act, no one in our dealing room. That was reserved for commodity traders who used charts to trade technically.
Over the years that changed. As trading evolved, we started to look at charts. One popular one was a point and figure chart, drawn by hand. It eventually stretched so far that I could wallpaper a wall in our office with it.
As electronic trading took over and computers became more powerful, it became easier to get access to charts online and run extensive studies in real time. This has evolved even further as automated programs featuring algorithms have come into increasing use. While there is still no substitute for the human element, we have come a long way from keeping point and figure charts updated by hand.
One big change is that those who began forex trading during the electronic era learned by using charts and tend to rely mainly on technical analysis. Many veteran forex traders, such as myself, use charts for their trading but not with the same sense of trust or blond faith as those who started in the electronic era.
But for me this has changed. It all started for me when I created a charting algorithm for my own use that later became known as The Amazing Trader. It is based on the logic that I use instinctively to pick out key levels and patterns to trade. I must confess it was a slow process but one that has now come full circle.
The more I used this amazing program the more I learned to put my gut on hold and trust the patterns it displays on my charts. My trust has come from the fact that the program is based on a logic that makes it easier to believe in what you see rather than relying on a leap of faith that most technical programs require.
While my instincts are still as sharp as ever, The Amazing Trader has created a structure and discipline that I did not have before.
So, while the market has changed and evolved so have I. While the old adage says, “you can’t teach an old dog new tricks,” this old dog has learned a whole new set of tricks.
Member benefit: Join the Global-View Trading Club (free) and send a request for a 50% member discount for The Amazing Trader
Jay Meisler, co-founder
Global-View.com
jay@global-view.com
Forex Trading: You Can Teach an Old Dog New Tricks
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