When I first started trading back in 2000, I had a lot of decisions to make.
How to set up my office… Where to focus my research…What system to use to guide my early trades.
But, most importantly, I had to decide on something even more fundamental: which market to trade.
Did I want to trade stocks? Bond contracts? Commodities futures? Pig and chicken parts? The world was my oyster at that point, but I wanted to make an informed decision about what kind of trader I was going to be.
I wasn’t concerned about which market was the most liquid, or which market I knew best. Back then I probably knew more about tech stocks than anything else, but that wasn’t what I was interested in trading.
Rather, the major consideration that I had for choosing a market was finding one that had the potential to be the most volatile, go the farthest and the fastest, and that offered the most leverage.
I was under an enormous amount of financial pressure at the time. I needed cash and didn’t want to have to sit around for months waiting for trades to pay off.
I wanted to make money quickly, which is exactly what you shouldn’t try to do. But that’s exactly what I did.
And, still to this day 20 years later, the reason that I love currency trading is the leverage. It’s better than almost any other market that you can invest in for that reason.
The volatility in forex is greater than in almost any other market, too. That means there are always big opportunities opening up, and big swings to jump on and trade.
And the liquidity in currencies kicks every other market’s tail, too. The currency markets are open 24 hours a day, six days a week, and the amount of activity that’s going on at the same time in the currency markets is just amazing.
I still love the leverage.
I still love the liquidity.
I still love the volatility.
And you’ll probably be hearing more about this soon—more and more about looking at the most volatile and exotic currency pairs that are out there. But we’ll save that conversation for another time. Because once I start on that, I’m not going to stop anyway.
But it all works together so seamlessly, and that’s still why I love the currency market and focus on it as a trader.
You’ve gotten started on your trading game. You’ve put up a chart. You’ve gotten some candles together. You’ve got $1,000, or $10,000, or maybe even $1 million, in your account to get rolling. And you start trading.
Now you’re wondering, “OK, now what?” Here’s what the process looks like…