What is more important: a good trading system or a trader’s personality? In short, both are important, but if you cannot control yourself and follow your plan with discipline no trading system will help you. If, on the other hand, you diligently analyze markets and are able to see what works under different market conditions you will be able to use not only one, but a number systems that will be good for that specific state market is in at that specific moment.
Ability to see what state market is in is a key to successful trading. If you are a trend trader and want to apply trend trading strategy for a range bound market you will definitely be disappointed. If you want to be a good trader you have to expand your knowledge. I do not agree with people who say you should follow only one currency pair and trade only small time frames. You will not be able to see larger picture if you follow these kind of tips.
Yes, you can be a good day trader if you want. There is nothing wrong with that. But you can expand your opportunities by analyzing most currency pairs and then selecting (speculating) which are going to be leaders in upcoming move and those that will (possibly) present you with the biggest profits odds.
There will be times when (after analyzing the market) you decide not to trade and maybe not to trade the whole month. On other occasions you would be willing to make a dozen pairs and add to your position by building a large line that you will close with big profit. Seeing big picture and ability to control yourself puts you in a position where you are able to see the biggest opportunities and to squeeze the biggest profits from those opportunities.
The same can be said about day trading, scalping, range trading or any other trading method you are willing to use. You need to see the best times for using those trading methods. Yes, you can be a very profitable trader using one system, but that depends on a very simple fact whether you are able to analytically evaluate the market and control your emotions while waiting for best opportunities.
Ok, sorry if my thoughts were too erratic. Hope you understood my point.
Disclaimer: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts. 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. Forex Capital Markets LLC. 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 on such information.
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