Meet the highly successful trader. He's a full time trader and has more than 5 years of experience trading FX
In March 2006 he joined Global Forex Signals web site as a Forex signals provider. He also manages a forex fund and for now he is the best one in a managed forex accounts service at Global Forex Signals. It was a real pleasure to get to speak to such a successful trader like Nikray.
How did you first become interested in trading Forex?
When I was studying at school I got interested in trading on stock exchange. But later, when I started studying Forex market it seemed to me more interesting. All this was in 2001. From there I was hooked and traded Forex heavily all through high school, blowing up several accounts before I got into a more consistent money management strategy.
Which part of technical as well as fundamental analysis does your strategy include?
The fundamental analysis doesn't take much of my strategy. From time to time I read news concerning to the economic situation in different countries to be aware of the important economic, political, environmental and other relevant factors.
A far bigger role in my strategy belongs to the technical analysis. The main attention I pay for studying charts, their support and resistance lines as well as channels trend lines.
Which indicators do you prefer to determine the entry/exit points?
I exclude any oscillators and indicators in my trading approach entirely. I place trade using technical analysis and my gut feeling based on the previous trade experience solely.
Do you prefer long-term strategies or short-term ones?
In general I prefer holding positions for a day to a few weeks.
How do you treat losses and how do you go about establishing risk tolerance?
For sure it is the main and most important problem. Sometimes I even think that knowledge of fundamental analysis and technical analysis is not so much important for successful trading as risk management. I believe that it is a key factor to successful trading.
There were always traders who make extraordinary gains taking extraordinary risks. The legends are surrounding them.
But this way is not acceptable for everybody because mean suffering inconsistent trading performance that often leads to large losses.
I believe that it is proper and right not to risk more than 10% of a trading capital, but better if it would be closer to 5%. Due to such policy there is a possibility to wait till unfavorable market movement is over and don't expose the account to excessive risk. As for the level of risk tolerance I can't give any unique solution here. I myself make a decision based on my own experience.
What is your most memorable trend on the market for this time?
Probably it is a total the US dollar plunging down against a basket of major currencies. In the Year 2002 when I used to work in a bank currency dealing department I was warning my clients of possibility of such scenario development. Then EUR was cheaper than USD. I was suggesting my clients to convert their savings in United States Dollars (USD) to Euros (EUR).
What is the main quality that you feel is most important for a trader to have steady profit over a long period of time?
There are several of them such as pedantry, punctuality and the most important is strict German discipline. Discipline is most important.
Don't allow yourself to break your trade system. It occurred to me that I didn't follow my trade system myself and every time I regretted for it.
If your system shows an entry point for the trade you should use it without any fear. If your system shows an exit point from the trade you should exit immediately irrespective of the result.
What do you think are the greatest misconceptions beginning traders have about trading the markets?
When I started trading at the Forex market my first dreams were all about a yacht drifting on the Atlantic. But that myth was shattered promptly. NO ONE SELLER CAN INFLUENCE THE MARKET PRICE. NO ONE FINANCIAL MARKET COULD BE VIOLATED.
If someone makes trades dreaming about a new house or just a car HE IS DOOMED TO FAILURE. It is an out-of-court settlement.
What kind of advice would you give a person just now beginning in trading the markets?
First of all my advice is only "my advice". Any person who wants to start trading Forex should learn the A B C of successful buying and selling.
Then he should develop his own trade system and follow it strictly.
A piece of advice which I would like to give is not to listen to any analysts or gurus who are mostly newcomers themselves and don't bring any responsibilities for your result.
Try not to read too much literature concerning to any master classes for traders. It will not bring you to success. And remember that the system which wasn't developed by you wouldn't bring you success!!!
Thanks Nikray for sharing trading approach with our Global Forex Signals Blog reading audience.
* Until 2009 my nick was Nikray.