job description of a foreign exchange trader
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Job description of a foreign exchange trader
Forex trader job description
Forex trader job requirement for success.
The primary goal of being a successful Forex Trader is to achieve positive cash flow in to the Companies accounts. This in itself sounds like an over simplified statement, but it is the overall goal to the task at hand. We will go through the steps you will be required to use to achieve that goal.
First and foremost, you must have the positive mind-set that you will achieve the goal. Those who don’t think they can won’t succeed. They are constantly looking for the reasons why to fail. We here at the Company all have a common goal to succeed at what we do. In our job here as well as in our private lives. We are always looking for the ideas and means to better ourselves to achieve anything we set out to achieve and the willingness to share those ideas.
This being our common goal, the support structure of a group of successful traders and others willing to share what they know, has already been set in place and at your disposal. They are here to support and guide you. Remember that. They are here to GUIDE you. Not teach how to place orders, or give calls. They are willing to help in some of these things time permitting. But you have to remember they are also working, some two jobs and have to succeed for the Company also.
So do your part and learn the basics of trading from a technical standpoint first. Then move to the actual analysis segment where you then learn to place trades based on FACTS not myths. The FACTS being what we can actually see with our eyes and then make choices from those FACTS. The word FACTS is very important. Because as you will see, you must learn to trust the FACTS undeniably without pause or hesitation. I am sure there are many traders that could be more successful if they could gain that trust. Missed entries, late entries, Wrong entries, early withdrawal of profits, are all causes of the lack of trusting of the FACTS.
So what are the mechanics required to being a successful Forex Trader? I use the word mechanics as you will see, trading is no different than any other type of mechanical action. Action being “any reaction is the cause of an action” the reaction we are looking for is positive trades. This is the mentality of trading anything; it is nothing more than a group of people reacting to and about the way they view their analysis, whether it be technical or fundamental (news events). We will not focus on the fundamental side as the key word in there is MENTAL. Not cutting anyone down, but the skill to trade fundamentally requires a mind set and expertise many would find impossible to achieve. The professionals that trade fundamentals usually have teams of people to gather and digest the required information. As you will be working alone this is not an option for you. So as some say, we will just view fundamental trading as noise to ignore or avoid, depending on your skill level.
We trade only Price Action and we trade true price action. There are a lot of people out there saying that they trade Price Action. They make that statement because they say they aren’t using indicators. The use of indicators is not the defining point of Price Action trading. As you know we use indicators, but we don’t use them to decide the trade as they are nothing more than a set of tools to inform us that price has reached an area we might want to take notice of.
Even most of those that are making that statement are still waiting on something, to take the trade as candlestick pattern making a break of a line. That is just an indicator of a different sort and at times can still have the same results. Using indicators can become late entries and wrong entries. What you will learn to do is trade off the price action, learning to read the charts the same way a river pilot reads a river and can avoid sandbars and snags ultimately arriving at his destination in one piece. That isn’t to say he hasn’t got stuck on a sand bar or two. But that he has a better chance than most to succeed, no one can avoid all the hazards but when they do accrue the ability to deal with them in a swift timely manner is the difference between a professional and someone else that panics, causing more damage than the initial problem.
Which way, up, down or sideways?
The only thing you know for certain is that the price will move from the left of your screen to the right side. That is the ONLY undeniable statement we can make. And I am sure there are those that would argue with that. So that narrows down the choice that what we need to choose up or down… You have the traders that even refuse to make this choice they are called straddle traders they place PO (Pending Orders) on each side of a consolidation or ranging area and wait for the price to get them into the trade. Nothing wrong with that, everyone has their on style. We then have the higher time frame traders; they do use some analysis in their trades and normally are the more successful at the game. Their downfall comes with the rigidity of their strategies. They are of the mind-set of set it and forget it, let it do what it may, so they only have two outcomes a full win or a loss and their losses are normally great as to trade 4 hr and up charts require large stops. The Company has a policy that once you’re in a positive trade we will do everything in our power to keep it that way. Because what is our goal, to make Money.
So we have talked about Price Action and this is what leads us into profitable trades. We also have said there is a difference to some PA trading and others. The difference to our ideas and others is our abilities to integrate different thought patterns into one. The art of trading is full of different groups that know for a fact that theirs is the only true way to trade. Just read any forum and you will see time and again the contention of the different groups the scalper verses the longer term, or the Indicator trader verses the naked chart guy. If the groups would devote as much time to education as they do to the slaying of each other, profitable they would all be. But by chance that is where the founders came from. Their style of flexible trading, or having the ability to not be rigid in their thoughts and see the market for what it truly is. Is what lead to the beginning of the thread, looking for a friendlier place to hang out and we can never thank them enough for allowing us entry.
So onward with your duties, so how do we achieve what many find impossible what makes our strategies better than most. It is that ability to conform or flex our decisions around the market and not try to fit the market into our ideas as that will never work. Think for a moment about that statement alone for a minute. You are probably thinking I would never do that anyway. But if you’re like most, you do it not even thinking about it. You made your choice regarding a trade you accept the risk and you have placed the required orders. You now expect the market to give you what you have asked for. The difference is that we make our choices, we accept the risk then place the orders. BUT once we are in the trade we have the ability to be flexible and adjust according to the Price Action not accepting our fate to random acts. That is one difference.
The second and probably the hardest to accept is to enter as a scalper but trade as a position trader. The integration of those two ideas is the core difference between our strategies and those of most others. It is also a point of argument that it isn’t profitable or goes against everything most have learned. If you have studied the material provided. You will see in the beginning I myself devoted a great deal of effort and time to the production of charts. That produced a set of Flash cards that show a great many trade ideas off the 15 min charts primarily. I have come to the understanding that they are just the first shot that starts the battle in most cases. Just allowing us to enter what could be a very large move or not. It is always our goal to accept as much money as the market is willing for us to take. It is there for the taking just take it. Others have tried to share these ideas and some have been able to profit from them. But as far as an overall package I have only found here the ideas of position entry and then the management of the trades that actually provide a complete successful strategy.
(1) Charts (see the two charts below near the bottom of this page):
(A): We are assuming you have already added the MA’s from the PDF to all your charts. I will remind everyone again we are using the MA’s as floating Support and resistance levels. Once those MA’s are on your charts it will become very clear as to what we are talking about. We ARE NOT looking for A to cross B to do this or that. They are just another line drawn in the sand which helps you to see a given area of possible trades.
(B): You then need to determine the major support and resistance levels on your Charts. The 4 Hr. is the most useful but all the charts should be marked as the price does respect levels from any time. The areas that coincide on all the time frames are your major areas. The dailies really come into play once we are in new territory not showing on your lower time charts.
(C): Mark any trend lines on your charts just connecting the Higher Highs and Lower Lows. Once drawn you will see if you’re in a channel or is there just one line that price keeps coming off of. Here is a place where drawing trend lines is important on your Daily, Weekly or even Monthly charts can give you a look at possibilities most may miss.
(D): The use of any other tools for your analysis is a personal issue I still use my fibs others use Pivot Points, Stochastic etc… But as time goes by you will start to notice that the floating MA’s we use are also the places that those tools are showing you. But in the beginning the little extra confidence gained from them is good. Also we don’t care what tools anyone uses as long as we stick to the primary use of such tools which is to help us to see the price action clearer. Now we don’t like when others try and push exotic indicators that can’t be deciphered by the naked eye. As we continue you will see how simple this style of trading is to do. I have come to think it is to simple making people look for and see stuff that isn’t there. That is one reason for this instructional manual.
(2) Your Orders:
(A): It is not anyone’s place to tell you how much to risk or what to put on your trades. The information given here is what works for most of the successful traders here. The risk threshold is different form one person to the other. But if you risk a smaller amount than you normally would it may make the difference in your ability to manage your trade or even the way you think to jump in a trade.
(C): If you have migrated from the Long term Large Stop group you will see also that you might even be able to trade at a higher dollar level as your initial stops have been drastically reduced. In essence, allowing your risk per trade to remain the same but your profits per trade to exceed your previous goals a great deal. There will be more on this later.
(D): Your order size pre-set on your platform should be a multiple of your ideal position size. This will allow you the ability to be more flexible in the management of your trades. Which you will see is key in the process of making you a successful Forex Trader. I would say if possible at least 4 or 5 and maybe as high as 10 the more the better. It just gives you more options.
(E): Your pre-set stop should equal the amount you would ever want to lose on one trade, as the stop levels do change depending on the actual trade at the time taken. It normally would be a lot smaller than most long term traders have used in the past. The exception to this rule is there are times when some in the room will take trades during their normal sleeping hours and they might set a large stop to another S/R level off the 4 Hr. With all our trading, you never have to follow and actually blindly following isn’t the way to success. You are here to learn not follow. Then on the other side I know of one the best traders on here that never uses a stop over 20 pips. But that requires a very good entry that most are bit nervous to take.
(F): Profit Targets these are not as important as your stops as you will see the taking of our gains will become an art in itself. TP’s are used once the trade is in action but might entail removing various amounts at different levels and not the take all lose all your use too.
(3) The Entry Choice:
(A): What if I told you that the hardest part of trading the choice of which way is probably the most simplest in fact. The reason it is so hard is like almost everything else you have had to learn in your life a lack of understanding. This is why almost any successful trader will tell you that it isn’t hard at all. Some will go as far to say it is boring one reason trading rooms are around. You also say you must be mechanical in your trading. That statement I feel is always a bit misleading. It tends to imply the jumping off the cliff in my mind. What I feel it really means is when the next trade has been decided upon and the entry level is reached do not hesitate enter the trade. Because there are trades that look the same but because the area or level they are at on different charts might make it a higher risk trade. So don’t blindly jump make sure the pool has water in it first.
(B): The main idea to understand and what I feel the mass majority of so called Price Action traders are missing and what has taken me a while to come to believe is the FACT that the historical data that you see on your chart is the key to trading period. I have had discussions with other people and they will almost 100% disagree with me when I say that taking trades from The Previous Price Action is a great way to trade. The funny thing is most of those people are higher time frame profitable traders. That use S/R Yet they still miss the best entries mainly because of a lack of faith in the FACTS. This last week I have started to see the reaction of price at these PPA areas. The price action maybe 30 minutes to 1 Hr. old or it could be a few days or weeks. What you have to believe in is that it will be effected a majority of the time. Not all the time but most of the time. Even if it does not make a complete turn it does and will allow you to gain a profit. As long as you manage the trade and not let the trade manage you.
(C): Now for some reality check. See Chart A. this is the GBP/USD from Friday Aug 14, 2009. (You never know how long things float around the internet). The top is the 15 Min. next 1hr. then the 4 Hr. The red and white arrows are showing the same time zone on each chart. The white Previous Price Action line is giving us the area we are concerned with. In this case around 1.6605
(D): The 15 min chart is showing price rising with the first 2 red arrows and peaking out. The 1 Hr. would be showing the same price hitting its high of that candle at that time. The same would be occurring on the 4 Hr. But as we look to our left and should have marked as a Resistance level anyway. We can see that price has been turned back here before. These are just small sections of the charts on full size it has turned here on the 4 Hr. many times. But price is rising then it starts to pull back. If we are aggressive we could take a short straight away Just believing that price will turn back again here. That would have been a correct call. Your stop from the top could be very small indeed.
If you are more conservative you could have waited for the hangman on the 15 Min. the 3rd red candle. It is a turning trigger one of many shown in the charts at the beginning of the thread. Plus price is receding on the 1 HR. and the 4 Hr. Minor loss of pips waiting for that confirmation. With the price action we had been seeing leading up to this turn. Once the price hit the 1.6580 area we would have probably covered this trade reducing the amount of our position to insure a profitable trade. I don’t think moving our stop at this time would have occurred. Then price went back up on the first and second white candle retesting the top. The Price also retested the top on 1 Hr. and 4 Hr. charts. But as we can see it did not close above the PPA which what we are looking for to break the trade.
The third white candle is showing a harami or inside bar, another turning signal. The fourth white candle is showing us the 3rd time price has failed to make a higher high at that point. We could add back what we had taken away at the 135.80 area, as the price is having strong indications of falling further. Then depending on how fast the price actually fell (can’t tell in hindsight) we would have taken some profit off at the 50 Emma 15 Min. and moved our stop to break even or +2. We then see that price continued to the 1.6500 area. We would have more than likely have taken more profit 1.6520 as that was an area of consolidation and had some PPA attached to it as well. Then it continued all the way to 1.6583 where we have very strong PPA and got turning triggers on both the 15 min. and 1 Hr charts.
(E): What else do we see?
(1) We had two chances to enter this trade off the 15 min. chart. Missing the first would have cost us some profits.
(2) We had 2 chances to enter off the 1 Hr. chart if we were highly conservative we wouldn’t have entered till after the white candle had closed. That would have cost us twice as much if we had entered on the first 15 Min.
(3) The 50 ema on the 4 hr. is our line drawn in the sand on this trade as it being our resistance level held and turned price back.
(4) If you were waiting for a 4hr. entry you probably never had a trade to take. Notice how the 50 ema 4 Hr. is almost forming a trend line. And price has turned from it a few times previously.
(5) The key is to take the trades based off the PPA as it will pay you well. Then to cover your trade if Price Action is strong against you.
(6) If you look left on the 1 Hr. chart you will see the circled area second from the left. Price did break the PPA here but it went up over 50 pips first. Plenty of profit to be taken and locked in.
(7) Looking at your 15 Min. chart you can see when price broke through the major MA’s 35/50 that price came back and retested before going further down just like any support line that has been broken.
(F): Chart B EUR/JPY.
I am not going through this one but as you can see the same applies and this happens again and again. The idea as I stated earlier a scalper would be waiting for these areas to jump on to grab a few pips. The higher time chart guys would maybe not have gotten a trade or have lost some pips. But if we enter like a scalper then cover our position with profits and let it run we can achieve more gains than the scalper or the position trader. In this fashion when price is moving in your direction you can stay in a positive trade adjusting your position as you go to take as much profits that are there to get.
(1) Setup your platform
(2) Plot your Support and Resistance and Trend lines
(3) Pay attention when approaching these areas.
(4) Enter the trade at the best price possible to limit the amount of stop required
(5) If the price gets you into profit take some off to guarantee a profitable trade
(6) If you get stopped out look to re-enter off the same trigger you entered before.
(7) The entry Triggers of any time frame are valid forever. One more time the entry Triggers are forever good. Until your current price action closes above or below it. The key word is close… We are always working off the previous candle. The present one is nothing till closed it can change in an instant.
(8) Always take notice of your higher time frame charts. They can show you where price will turn and the level it should reach next.
By using the ideas above and the 15 min trade ideas for times of consolidation. The overall success rate of our members should be awesome. Do not overthink it. Notice the areas and take action. If the area breaks, close and wait for the next area. Many people have their stops at that next area but there is no reason to pay to play. Unless you’re an absently player. You could risk in 4 or more trades what some risk on one. That is one of the great things with this set of strategies. This not a set it and forget it idea, but once your trade is in profit you can be assured that a profitable outcome will happen leaving the trade to do its thing. Now get in there and make the Company some money.
Chart A – GBP versus USD image:
Chart B – EUR versus JPY image:
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