A forex currency trader, how I start my day.

I recently called the most profitable currency trader, on my portfolio and asked if he can share what he does in the day. He will not allow me to disclose his name however he allowed me to say he is in his late 30's, gave up his engineering job 2 years ago, to trade full time.

He also invests in stocks and property, so do not put "all your eggs in one basket"

To summarise.

Ok, naturally, a few coffees, then I watch the BBC News it's on at 5.30 am GMT, but repeated, The Briefing, presented by the clever and beautiful Sally Bundock. Very insightful 30 minutes, says what's happening in the finance world, gets me thinking of ideas, trades etc.

Then onto the P.C.

Where do I get my news from?

You can stay up to date with the markets from several sites :

1. www.bloomberg.com – Market News ( My favourite)

2. www.investing.com – Market News

3. www.reuters.com – Market News

4. www.finviz.com – Forex Trends/Asset Performance

5. www.forexfactory.com - Reports

6. www.calculatedriskblog.com – Report Predictions

7. www.marketwatch.com – Market News/Stock Performance

To name but a few. I will have Bloomberg on the TV, in the background.

I trade every opportunity, I use the leverage of max 1:30. Again, every trader is different. Some do not trade leverage, but basically, you need to be a bank to make any profit. Some take bigger risks with higher leverage. That is their business.

I use Fundamental Trading, Technical Analysis, Trading Sentiment and a combination of all.

I consider myself a day trader but will hold a position if I must. No one likes swaps.

I like to make manual trades mostly, now because I am watching. I have four monitors, not because I think I am on Wall Street, but it is easier on the eye if I'm in front of a screen during a session.

I like the forex 3-session system. The trend is my friend, usually get an idea of what's happening by looking at Asia when I wake.

Ok, put simply when the Asian market opens, traders trade, be it banks, institutional investors or speculators. If I see a gap in a currency pair, I will take a look. If the trend reverses for a while but reverts, I will jump in.

I found that when the Asian/European sessions overlap, it often see increased volatility, due to increased trading activity during those hours. Some are taking profits others are closing but then the trend normally reverts.

If the currency pair is a cross made of currencies that are most actively traded during Asian and European hours (like EUR/JPY and GBP/JPY), there will be a greater response to the Asian/European session overlaps and a less dramatic increase in price action during the European/U.S. sessions' concurrence I have realised.

Bear in mind I prefer high volatility for my strategies, I go in big and happy with say 10 pips, this is sometimes not allowed by some brokerages, so make sure you know the trading terms of the broker. Therefore 10 pips equate to a circa $100 return.

I prefer MT4 to MT5 (although I haven't really investigated the latter . Why change something that Is not broken. I really don't like some brokerages own web-based platforms, I know other traders that love them. I think that is a choice to be made individually. Trust me I tried all at the beginning, blaming the platforms for my early losses. I had a lot.

Once the Asian European market settles and I have made the gains I predicted, it becomes a waiting game, looking at potential short term movement.

Again, I am old-school and still rely on the maybe antiquated platform forexfactory.com.

I got used to the simplicity of it, once I worked it out, just please please please, make sure you sync the times. Even when you think you saved it. I made very stupid mistakes in the past, thinking data was released already and jumping in.

The second wind.

The UK session overlaps the USA session for about four hours, between 1:00 PM BST and 4:00 PM BST. During this trading time slot, liquidity tends to increase a lot, providing more trading opportunities. Please check your own times' zones.

I will be looking for additional trading opportunities before markets close, but if and when I achieve my daily target I will call it a day. I hate trading Friday afternoon because of too much-unexpected activity but Monday mornings I love.

If I have some unfulfilled orders, yes I often set traps, I will close them. Helps me sleep better. I've learnt not to fret if I have a bad day, we all do. I like to look at my returns/profits over a quarterly period and compare it to my salary when I was employed. That keeps me motivated.

Trading is definitely not for everyone, but I loved it from the start, as I said, it was very rocky at the beginning but I persevered.

I trade with two preferred brokers, because I can compare and contrast and some offer more assets that I prefer and I can play off one another.

I will review my trades, strategies that worked, some may need amending, in terms of indicators. This is, however, not an exact science, If it was, we would all be winners.

I like trading forums to get other traders ideas and opinions, mostly taking some with a pinch of salt.

Tomorrow will be another day in the office. I love independence more time with my kids but I also know that I am committed to doing this as a living, so I take care of myself, stay fit-focused.

The 5 most important lessons I have learnt.

  1. Never ever trade under the influence of drink or drugs.

  2. Do not be influenced by others, your money your strategy your decisions.

  3. Take losses well, tomorrow is another day.

  4. Learn the markets, because history repeats itself.

  5. Learn to enjoy your successes.

Ok, that was great, please note, this trader is classed as a professional retail trader. Therefore experienced and can increase his leverage.

Hope that gives a bit of insight to a potential new trader.

If you want to try, let me know.