© Daytrader21
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I have started to trade since late 2008 after I read in the mainstream news about the U.S. subprime mortgage crisis. After a little investigation, I learnt about Forex Exchange market, and also about all variety of instruments that can be traded. Until that point I had no idea that there are so many derivative instruments you can trade, and I was under the impression you can trade only the stock market and you need quite a lot of money in order to play this "game". I began to learn about the leverage concept and I fell in love with the market right from the start because now I could trade without a need to have millions of dollars in order to be able to make some decent profits.
It came as no surprise that I enjoyed this "game" as I have a strong math background and playing with numbers was very exciting for me. Thus, aside from the possibility to make a lot of money, trading was like a three dimensional puzzle, where each day you add a new piece of the puzzle, and throw out old pieces that does not fit in, which was fascinating.
What currency pairs do you usually trade and what is the reasoning behind your choice?
Besides trading the major currency pairs like EUR/USD, GBP/USD, AUD/USD and USD/JPY, I also trade quite a few crosses as well, especially the Yen crosses like GBP/JPY and EUR/JPY. The reason why I like trading the Yen crosses is because they are very volatile. Despite the general believe that volatility is very dangerous for your trading, I like very volatile pairs as they offer great trading opportunity, but at the same time the risk increase and I try to overcome this issue by timing the market very close.
What is the basic principle behind your strategy?
I use both technical and fundamental analysis in my strategy. I use the Fundamental analysis for the general direction of the market and I use technical analysis to time the market and establish my stop loss and take profit levels. However, I can still trade just on the technicals or fundamental alone, when I see some opportunities. There is nothing set in stone and I try to be very flexible when I am approaching the market.