Interview To The Trader: Dave Maybe. Part 2

By in Intro to Forex on January 23, 2020

Question: How you consider losses and how you establish the threshold of tolerance of risk before the transaction is concluded?

Losses are a part of trade. You should transfer them to find advantageous transactions. The faster traders will acquire this lesson, the more effectively they will trade. When I enter into the market, I already know my point of an input and level of my stop warrant, and proceeding from it I determine the size of the position, therefore I lose a constant amount of money if the position is closed under the stop warrant. The good-picked up size of a position allows you to keep the losses by the small. If in trade there was “a sacred bowl of Grail” it would be determination of the size of positions.

Question: What key rules or factors you consider before a choice of any potential trading possibility?

I look, where there is rather high volume and movement, and simply search for a place to jump in the market. I have quickly learned, how excessive trade (i.e. trade too in great volume or it is too frequent) can be harmful. Thus, I have rules for search of candidates on the transaction and if they correspond to my rules I trade on them. Actually it is simple enough.

I see that traders break “rules” every day and conclude transactions which they didn’t plan in the trading day beginning. I believe, some people think that the good transaction should be connected with hard work, and they feel desire to conclude more transactions to correspond to this principle. The considerable part of the good transaction consists in expectation – expectation of good possibility to enter into the market and then expectation when your transaction already becomes irrelevant. Both and another can be difficult to make that, because in many cases trade contradicts a human nature.

Question: What markets for trade and tracing by means of the tools of the analysis you prefer?

Now I trade only shares. Almost always there are shares which move. Though, analysis tools “StockTickr” work with any type of the market.

Question: What was your most remembered transaction?

It is the transaction which I have endured. On September, 21st, 2007 I was in a short position under shares HAR since the morning. It turned to the magnificent transaction when the price has stopped in last hour the auctions. Fortunately, when the auctions have begun next day, the price has decreased still, and I could fix the profit. It was Friday, and the thought on position deduction for the weekend didn’t look attractive.

Question: Considering all variety of tools of technical and fundamental analysis how the beginning trader can avoid an information overload or, so-called, “an analysis paralysis”?

Beginning traders should specify the belief concerning the markets and follow them. I am not the supporter of trade on demos-accounts – personally for me have much bigger sense trade on the real account, but very small volumes. It allows you to see real execution of transactions and allows supporting though any interest in trade. Also, I consider that too many traders refuse absolutely good trading systems without any essential reason. Often, traders can introduce only small corrective amendments which can lead to the big difference in results.

If you want to participate in forex trading must start from learning the basics of currency exchange market to make sure you do not have problems with this industry.

There is another option – you can hire professional traders to do this job for you – read more about forex investment here. Also make sure to search for the info in a good forex book.

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