1. Your name sounds a lot like the movie character Forrest Gump, do you have any similarities with him?
If by similarities you mean that I’m also a Vietnam War veteran, have a successful shrimp business, and can run across the United States and back… Then no, I don’t have any similarities with him.
But if you mean that I’m as good looking as the actor, Tom Hanks, who played Forex Gump, then yes, I do!
2. Being part of the FX-Men sounds glamorous, awesome and cool. Tell us, is it really like that?
Truth be told, hanging with the FX-men crew really is a pretty sweet gig. Not only are all these braniacs really good at what they do, but they’re actually a cool bunch to hang out with. From hitting the clubs with Big Pippin, to shooting some hoops with Cyclopip, to trying to keep up with Huck’s wackiness, it’s never a dull moment in the FX-men headquarters.
What I like best though is that when it’s time to work, everyone is willing to roll up their sleeves and get down and dirty. Forex analysis isn’t easy, but it’s what we love to do and it’s great seeing everyone’s passion to learn and understand the market!
3. What do you think is the biggest misconception about macroeconomics and how it affects the forex markets?
I feel that traders, especially novice ones, have this notion that economic events have a black and white effect on the markets. However, that is not the case.
Take for example the most recent BOJ rate decision and its effect on the yen. Old school market wisdom tells us that currencies usually get sold off when central banks shift to a more dovish stance. However, that’s not what happened on the charts on September 19.
The yen rallied despite a 10 trillion JPY increase in the central bank’s asset purchases. For the most part, it was because traders were just relieved that the bank didn’t directly intervene in the markets.
This goes to show that the markets are constantly changing and traders need to learn to adapt. The effect of a certain event on a currency now may not be the same as it was in 2007.
4. If you had to pick the top 3 Piponomics post to recommend to someone who hasn’t heard a thing about you, which ones would they be?
Hmm, that’s a tough one! I’d like to show them at least a dozen or so pieces, but if I had to pick three, my first choice would be the 3 Reasons Why the Aussie Has Been Burning Up the Charts article. These types of pieces help newbies break down difficult economic concepts and apply it to the price action that they see in the charts.
Then, I would show them the Quick Guide to Trading the Non-Farm Payrolls. Like many similar articles, I also focus on major economic reports and help traders anticipate possible scenarios for a news trade.
Lastly, I would show them my Quick and Wacky Predictions for 2012 to show that this not-so-old man still has a funny bone and likes to use it on my favorite subject, the markets.
5. Have you ever experienced “trading burnout?” If so, what did you do about it?
Don’t let my perfectly-styled hair fool you that I have superpowers. Just like any average trader, I do go through trading burnouts. Good thing my good friend and trading psychology guru, Dr. Pipslow, always has my back!
The first thing that Dr. P. always tells me when I tell him that I feel burned out is to breathe and let the good vibes in while exhaling the bad vibes out. When I’m calmer, we talk about my trading, revisiting my goals, and reviewing my trading execution. This helps me refocus and get back on track!
6. Please describe to us your daily routine to stay in tune with what drives the forex markets.
I start my day off by reading Pip Diddy’s Daily Forex Fundamentals. I enjoy reading it because it’s like having a newspaper dedicated to the forex market. Going through it helps me stay aware of recent economic events, upcoming releases, and current market sentiment. Of course, I also supplement my reading by taking a look at other financial websites and trading blogs, as this helps me gauge the market bias for the trading day.
After finishing up my reading, I take a look at the setups that Big Pippin is watching because he sure knows how to spot ‘em yo! I also scan my forex charts for more high-probability setups and I take note of those that are in sync with my fundamental bias. Aside from that, I also talk to my trading buddies (mostly on Twitter, Facebook, and the BabyPips.com forums) since I absolutely love hearing their opinions on what’s moving the forex market.
7. Which currencies do you think will gain value the most in the next 3-5 years? Which will be the weakest? Why?
Oh boy. The answer to that question really depends on what’ll happen over the next 3 to 5 years.
If the world can avoid an epic global economic slowdown (not as easy as it sounds) and countries achieve sustainable growth, then sure, I can see high-yielding currencies such as the Australian and New Zealand dollar appreciating in value and safe havens such as the Greenback losing their appeal.
But if the world’s largest economies (shout out to the U.S., China, Japan and the euro zone!) don’t make any significant improvements in the next couple of years, it’ll be hard for smaller countries (such as Australia and New Zealand) to sustain their own recoveries. In that case, the tides could turn in favor of the Greenback, at the expense of higher-yielding currencies.
I took a peek at my Bloomberg terminal just to see what the big banks are forecasting 3 to 5 years down the line, and it seems that the median forecasts favor the Greenback to retain its strength and the comdolls to depreciate in value.
8. What was your worst forex trading day like? What have you learned from it?
Well, forex trading definitely has its ups and downs and I’ve had my fair share of bad days. In fact, I’ve probably had some bad weeks here and there as I suffered losing streaks from time to time. I can’t exactly pinpoint a particular trading day when I was at my worst, but it’ll probably be one of those days when I’m in a rut when it comes to trading and I’m feeling out of sync with the markets.
Throughout my entire forex trading experience, I’ve learned that these situations can really take place and the best that we can do is to practice proper risk management and learn from our experiences, both good and bad.
Lastly, over the years I’ve also learned the importance of trading psychology. That’s why I always make sure to hit up Dr. Pipslow’s Pipsychology blog for tips on how to handle these rough patches.
9. What would you consider is the most important trait to have if you want to be able to stay alive in this industry?
When it comes to surviving in the forex industry, nothing beats good money management. If you know how to minimize risk, you could practically last forever in the forex market until you get the hang of things!
10. If you had to create a playlist with 5 songs to play while trading, what songs would it have?
I normally listen to classical music when trading and doing my market analysis but I like to play “new” music from time to time. For now, I think these songs would make up my 5-song playlist:
• Pachelbel – Canon in D
• Chopin – Nocturne
• Beethoven – Symphony 9
• Coldplay – Viva La Vida
• Deadmau5 – Strobe
How about you? What's in your 5-song playlist?