Surfing for Profitstechnical analysis to get into the markets. There are many differ-
ent techniques—from candlesticks to moving averages—but if you
stick with one technique that you’ve identified and use it over and
over with proper risk management, I think you can definitely make
money in this market.
Q: It’s quite interesting because what you’re saying though is
that you really create a directional bias based upon fundamental
analysis, and then you enter the market based upon technical anal-
ysis. So you get an idea of where you think the trade is going to go
and then you use technical analysis to time your entry?
A: Yeah, I think that’s accurate.
Q: What are the key factors in FX that you feel drive direction-
ality?
A: If you look at a certain country, there are certain funda-
mentals—facts that support the strength of that country. For ex-
ample, is the economy booming? Are they in a recession? Is job
growth strong? What are interest rates like? Things like that. So
essentially you need to know those factors to get a pulse of the
country and compare that to the pulse of another country.
I try to make sure I understand everything regarding each
country of the pair that I’m looking at. If you have all the informa-
tion, you should be able to make a decision. If that decision looks
good and matches with positive technical areas in the market, then
you can make a trade.
Q: In FX there are basically two types of trades, there is the
prodollar and the antidollar trade, where you’re trading the U.S.
dollar against an array of world currencies: the euro, the yen, the
pound, the Australian dollar, and the other commodity currencies.
Then there are the cross-trades, where you’re trading countries
outside of the U.S. against each other. Do you concentrate on one