Hello everyone!
I'd like to give you a short description of my trading egy which was giving me considerable returns for over a decade.
I began trading in the summer of 2006 and cried everything related to trading with pleasure and determination. Tried many approaches loads of books about egies and the market in general. Fortunately it did not take me very long to grasp that major price moves in international capital markets are driven by anticipation and/or surprise. Big traders follow exactly what central banks are currently doing, central banks follow the development of inflation and employment data.
Since these agencies and corporations control almost all the available liquidity in the markets, I thought to myself, wouldn't it be sensible to attempt and follow their actions and attempt to acquire a bit of this cake? I began studying to find out what occasions are really significant to these traders and to the market in general. I attempted to understand what requirements required to be there in order for the market to go into a certain direction.
I found how inflation data was actually THE big deal before and right after the market crash in 2008, the way stock indices, commodities, and currencies went following readings in inflation. I could not know the majority of retail traders were ignoring these data points. The moves were there on the trading screens and people didn't care. I remember one day in 2008 I had lunch with another trader and asked him exactly what he thought about the uk interest rate choice. He had been a trader and said he was not watching it because it was not important. Whenever the Bank of England cut rates, the Pound was slaughtered and my friend the technical trader left in awe. He was not prepared for a move that was devastating right through all service levels.
That's when I understood, people are quite naive when it comes to trading. They'd rather trust some indior or price level than what the big money was doing. The only way to pull profits from the markets, I believed, was to take that the market must move down or up, driven by gathered buying or selling of Dollars, Euros, Francs, Yen and Pounds.
Through these years I'd several egies to trading. Some thoughts were very unique, others a derivative of a former one. But, they had something in common They were based on economic data and analysis of the macroeconomy. I subscribed to some news feed and constructed my trading egies about these pieces of newly-available information. Every time a news event had been deviating from what analysts predicted, I had an entry signal. Having access to a low-latency newsfeed, I entered in real-time. The only part of the trading egy that I had to accommodate was that the departure. Here I used a bit of technical analysis. And I still do. But not for the entrance, just for the exit.
That I will attempt to do my best to post trading thoughts and actual trades that I think are interesting, so I could connect together and find out from you, and you from me.