Forex Patterns and Probabilities: Trading Strategies for Trending and Range-Bound Markets

CHAPTER 5

Things You Need to Know Before Trading Forex

In the game of baseball, there are players who win games for their team through sheer speed. Often referred to as “speed demons,” they intimidate opponents with their talent for stealing bases and scoring runs. Other players are known for their ability to knock the ball out of the park. Known as “power hitters,” these players have the ability to shift the momentum of a game with a single swing of the bat. Another group of players is known for their defensive prowess. Their talent for negating the other team’s offense by making spectacular fielding plays earns them the title of “golden glove.”

Many players are proficient in one of these areas, but only the truly elite are strong in all three. That rare player who masters all of the major aspects of the sport of baseball is called a “triple threat” player.

THE “TRIPLE THREAT” TRADER

In the world of forex, the trader who masters technical analysis and trading strategies can locate profitable entry and exit points. The individual who masters fundamental analysis can anticipate turning points in the markets when economies shift. The trader who understands solid risk management can protect and defend the account against loss in any trading environment.

The trader who masters all three—technical analysis, fundamental analysis, and risk management—is truly a “triple threat” trader.

It’s my sincere wish to help you become the best trader that you possibly can. You can accomplish ...