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Efficiently Trading the FX Market

By , Head Forex Trading Instructor
25 December 2013 19:23 GMT

Summary: Many financial investors like the diversification the FX market brings to their portfolio, but are too busy to spend countless hours researching the market for trades. This Forex Video shows how one can balance the time investment with the capital investment in FX.

This is a live webinar recording from December 19, 2013 hosted inside the DailyFX Plus Live Classroom. The objective of time efficient trading is to restrain ourselves from spending endless hours researching and trading the market when our return for our time can be quite volatile.

Since we cannot guarantee returns, the other part of the equation we have significant control over is how we use our time in accessing the market. If we can be efficient with our time in making trades, then we can free up time to also run other business or enjoy time with family and friends.

Outline of content in the video:

  • How you efficiently utilize your time (Money vs. Time)
  • Portfolio Update (since it began November 7, 2013*
  • Volatility tends to slow down during holiday trading – as a result, changes made to the portfolio
  • Japanese Yen – where next?

When looking for strategies to trade, we seek out strategies whose past displays a history of traits of successful traders. (Download this 45 page guide to DailyFX’s Traits of Successful Traders by registering your name.)

For example, look at your average winners and compare them to the average losers. Are your average winners larger than average losers? If my average winners are larger than the average losers than a good win ratio can be 40-50%.

So my goal is to find strong trends, apply strategies that implement traits of successful traders (namely a positive risk to reward ratio) to those strong trends, then manage the results.

*HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM.

ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES IS MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION.

OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS. Any opinions, news, research, analyses, prices, or other information contained on this website is provided as general market commentary, and does not constitute investment advice. The FXCM group will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance contained in the trading signals, or in any accompanying chart analyses.

---Written by Jeremy Wagner, Head Trading Instructor, DailyFX Education

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25 December 2013 19:23 GMT