Trading Advice: Analysts Share how to Trade Successfully | Podcast
Talking points on this podcast:
- The key tips to help you trade successfully
- Why choose one asset over another?
- Financial futures and options vs spot prices
This time on Trading Global Markets Decoded, our host Martin Essex is joined by two of our senior DailyFX analysts: Chief Currency Strategist John Kicklighter and Senior Currency Strategist Christopher Vecchio. On the agenda this time, we focus on the essence of how to trade successfully – covering technical vs fundamental analysis, the reasons for trading specific assets over others, and how volatility fits into analysis.
You can listen to this podcast by clicking on the YouTube link above or by using one of the alternative platforms listed below.
How to Trade Successfully
Kicking off the broad topic of how to trade successfully, John puts the importance of establishing a strategy or trading plan front and center. “So very few people take the time to actually establish that strategy, write it down if need be, and continuously hone [it] over time,” he says.
He stresses the importance of adapting the strategy to current market conditions. “If I made a strategy for 2008 when everything was falling apart, it would be [a] very different [thing] to applying that strategy to markets as they were in 2010 when I’m seeing a strong recovery.”
Learn more about what is takes to trade successfully
- Learn more about the trader lifestyle with our Day in the Life of a Trader series.
- Take our DNA FX Quiz to discover what type of trader you are.
- Download our free Traits of Successful Traders guide and incorporate new styles to hone your approach.
While John primarily stresses the viability of a trading plan, Chris points out that flexibility shouldn’t be sacrificed in the pursuit of a strategy. “Foundationally, a truly successful trading plan starts with risk management,” Chris says. “That means you are worried about protecting your capital; with how decisions you make today can affect future decisions. You never want to be in a position where one trade knocks you out. So, when you examine the market you have to have be willing to adapt.”
People weighed down by a system and inflexible ways of doing things can’t move fast and adapt sufficiently to changes in market conditions, Chris adds. “So if you do have a trading system, and you’re starting to see results that differ from what the expected results were in your back testing, it’s a good time to go back to the drawing board and look to see if the environment in which you constructed the strategy is different to the one the market is currently engaged in.”
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.