Rob Booker's Summer Recommendations
Thursday, July 29, 2010
, Posted by Usman Ali Minhas at 12:35 PM
1. What Are Your Recommendations On How To Trade Forex This Summer? What Should Be The Trader's Tasks In August? What Should We Prepare Before Leaving For Holidays?
Some of my methods (like trading to the weekly pivot) do not work as well in the later part of August, and the early part of September, so I do not trade that style at that time. Other methods - like counter-trend fib trading, work just fine and I keep going. One thing that I have noticed over the years is that during this period of time, a smaller trade size can move the market farther, and at strange times of the day. When these moves occur, they can just move farther and farther, faster and faster, and take everyone by surprise.This kind of movement is not uncommon, so we can expect it to happen. I'll be focusing my time and attention on the GBP mostly - the crosses and against the USD - and I expect to see some significant moves.
2. What Book Do You Recommend Us To Read This Summer?
Read something that isn't about trading. Read something that leaves you thinking more deeply, or that helps to calm your mind, or strengthen your resolve. There is now far too much material out there about trading, way too much than any of us could ever read, or could ever benefit from. It seems like the best course of action would be to get news and commentary from FXStreet.com as necessary, and then just give your mind a rest from the markets.That said, I think that Ed Ponsi's new book, “The Forex Playbook” - is brilliant. I read an advance copy (thanks to Ed) and it was stunningly interesting, refreshing, and left me feeling as if I'd learned something I never had thought of before. In particular, he's great with the AUD - and the book contains some insights that left me wanting to trade that pair again in the future. So if you had to pick one trading-related book, that would be it.
3. What Should We Do When Returning To The Markets In September And What Is Your Forecast For The Major Currencies In Q4?
My impulse when I return to the markets after a break is to try to do too much, too quickly. Having learned my lesson the hard way, I now try to take smaller trades, fewer trades, and just ease back into trading. When I do just enough trading, but not too much, it's like eating the perfect meal: I don't end up sluggish or sick. I just feel right. And I am ready for more when the time is right. Too often, people are gluttonous traders and gorge themselves on less-than-healthy options in the markets. That's ruinous. It's a disaster. Trading well for me is about trading selectively, patiently, while resisting the urge to trading everything.Trading successfully for me has more to do with staying true to our own rhythm, and that's not easy. Triffany Hammond has a lot of neat things to say on this subject - and I'd recommend that people join a webinar from her sometime this summer to hear some of what she has to say about this.
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Rob Booker is CTA, Auhtor and Trader at WR Booker & Co. He is the author of “Adventures of a Currency Trader” and “The Currency Trader's Handbook”. [More about Rob Booker]
