Is the EUR/USD another popular pair with traders?
Yes, its good and I think its got the highest turnover of any of the currency pairs, its got a history going back for a very long time before the Euro was created, people who backed systems use the Deutsche Mark against the Dollar and then there is history going back to 1971.
How volatile is this trade?
It is not as volatile as the pound against the dollar, but the pound against the dollar is not as volatile as the pound against the yen, the euro against the yen, those are very volatile currency pairs. Those currency pairs can move enormously in absolute terms in almost a year.
DO YOU WANT TO TRADE?
What about the euro against the US dollar?
I think in 2024 we will see that the rates in both will be a little bit lower, and I would have thought that the euro would fall against the dollar anyway.
Is there a strategy you use to trade EUR/USD?
You know, simple things like looking for a trend, looking for some patterns within that trend. When you are a trader, you pretty much do the same thing over and over again. So you have a little plan that you trust and you play the game over and over again, focusing on the perfect execution of that one trade over and over again. I use the Gartley pattern, which came out of HM Gartley’s profits in the stock market in 1933. So I do a lot of harmonic trading.
ARE YOU INTERESTED IN FOREX?
Are there any pitfalls to avoid when trading currencies?
I think the biggest pitfall is the leverage that you can get. Certainly there are a lot of brokers that are not FCA regulated that offer huge levels of leverage, which means if youre right its Christmas and if youre wrong youre wiped out. Thats mighty tempting because when you sit down to put on a trade you do all your analysis and you say to yourself that well the only reason im putting on the trade in the first place is that I know whats going to go up so if I know whats going to go up why not have a big bet, thats the paradox. Start small and just remember about that reptile brain, its like small little steps, the only way to get around that kind of reptile brain with flight or fight is to actually take small little steps. Give yourself six months and think of it as a learning exercise, reading Trading in the Zone in the beginning before you lose hundreds of thousands of dollars would be useful and buy that little book called Zen and the Markets. Focus on perfect execution is what the game is all about.