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I started trading equities in 1997 and traded FX on demo a bit after. A few years in, I was convinced that it was not possible to profit from it and stopped. In early 2012, I was introduced to Technical Analysis, which was a game changer for me. I have been trading full time since then. My motivation was the flexibility trading offers, in time and not being bound to a location, staff, inventory etc.
What currency pairs do you usually trade and what is the reasoning behind your choice?
It depends on which currencies look strong/weak. For example, for a while the Canadian Dollar was very weak, and the British Pound was trending up nicely, thus I focused a lot on GBP/CAD. Currently the Australian Dollar is trending nicely, hence I am watching AUD/JPY, AUD/USD & EUR/AUD
What is the basic principle behind your strategy?
I use Fibonacci for levels and watch for a reaction through Candlesticks and RSI for confirmation.
In your opinion, what are the most volatile and predictable pairs at the moment?
The USD/JPY has been very volatile and difficult to trade for the last few months, while the Aussie has been quite predictable in the same time period. EUR/AUD has been both volatile and predictable.
What is your take on the Canadian Dollar versus its major peers for the short and long term?
The loonie has sold off aggressively against its counterparts on the bigger time frames. For the last 5-6 weeks we have seen some consolidation and a bit of a pull back. In the short term, the correction should continue strengthening Canada's Dollar a bit more. However, I believe sellers will look to sell into rallies, weakening the Canadian Dollar further, in the long term.
What advice would you give to those, who have just started FX trading?
1. Trade less - "Overtrading" has been a major downfall for many. Exercise discipline and pick the best trades. Discipline is a very important skill to have as a trader.
2. Study more - Spend time studying the charts, it will give you a feel for how price moves and you will start to pick up on reoccurring patterns.
3. Review - Get a mentor, or a trading partner and review the trades you've taken. Not only will you learn a lot about your trading style, it makes you accountable.
4. Learn to lose - We have been brought up to win, but in trading you have to accept that you cannot be right all the time.
Which currency pair do you see as a top performer a year from now and why?
I really do not know, I think ignorance is bliss in this situation. As a trader of shorter cycles, I find it prudent to be flexible in order to trade both sides of the market (long and short). Having a long term bias either way would not allow me to do that. As the popular adage goes "Trade what you see, not what you think".