Michael Marcus .....never heard of him ....but he was in Market Wizards ......i like him already ......3 tips from this guy
A Very Simple and Effective Trading Tip
“You absolutely want to put down a [short] bet when a market acts terribly relative to everything else. When the news is wonderful and a market can't go up, then you want to be sure to be short.”
One the the simplest tips you can use is to watch for a bearish market struggle to higher or even fall, on the realize of bullish news and look to trade the other way and vice versa in a bear market because the news is discounted by traders and there are high odds of a reversal which you can time with your trading charts.
hes talking relative strength here and i use this a lot in my own forex trading techniques ..........if a currency is acting like a dog and indications are it s/be flying then I am ready to short it .....and vice versa
See the Reality and Trade the Truth
“Objectivity A good trader can't be rigid. If you can find somebody who is really open to seeing anything, then you have found the raw ingredient of a good trader”
Most people see the market through a fog which clouded by news reports, other peoples opinions and their own emotions. One of the keys to trading success is to see the market action, as it is and trade the truth which is presented to you on the charts. You need to free you mind, be totally logical and objective, when looking at your charts and executing your trading signals.
in Forex I see the truth by watching my FXcorrelator..........I watch the interaction of 8 currencies and their relative strengths to each other ........thats a shedload of Truth 24/7 .......
Money Management Tips
Always use stops. I mean actually put them in, because that commits you to get out at a certain point"
How many times have we stressed this point in articles? Lot's of times but there is no hard in stressing it again – as soon as you place a trade in the market, decide your get out point and stick with it. Put the stop in the market and don't use a mental stop – why? Because if you miss it, you will let the loss run and this is one, of the most fatal trading errors you can make.
“The first thing I would say is always bet less than 5 percent of your money on any one idea. That way you can be wrong more than twenty times; it will take you a long time to lose your money. I would emphasize that the 5 percent applies to one idea. If you take a long position in two different related grain markets, that is still one idea."
He is talking about commodities but the same logic applies to currencies. Don't OVER commit yourself to a lot of trades, in correlated pairs which will move together - treat them as one idea so as not to blow up your account.
this last comment above bit is very important to my trading and the key to making profits using the FXcorrelator ........you have to understand the correlation and dynamics of the 8 individual currencies to maximise returns and minimise risk .........
