Introduction to forex to someone who was an ex Banker 30 years without touching forex

Great to be with you honourable team. Tell me more about technical trading as opposed to fundamental trading

What were you a teller or a cleaner or something??? Would have thought a banker would know better than to try get involved with retail FOREX trading!!! LOL!!!

Don’t mind me. Crass attempt at humor with a sledge hammer. Just revving up the retail FOREX trading fraternity and my fellow forum members.

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Wait a minute. Been bugging me the whole day. It was the BLOOD bank right??? LOL!!!

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Thanks, I wont comment on that brother. The language really exposes things I wasn’t expecting to meet here

Chill. It was all meant in good humor. Do I think your or anybody else is wasting their time with spot FOREX??? Yes I do. But that’s just my opinion based on my experience. Doesn’t mean it’s fact.

Tell you this though:

If you cannot take a little bit of humor at your expense then I don’t know how you’re going to be able to cope with the psychological aspects of trading. Maybe I did you a favor.

Hi @Fxdyna and welcome.
There are some things I’d like to share with you and will get back to you later today.
Don’t take @dpaterso too seriously. He’s a good guy and has a sense of humour. You are greatly welcome here :wink:

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Hi Fxdyna!

You haven’t had a great deal of response yet to your question, and I believe that may be because you have not yet given us much background to go on.

Did you mean that you have been in banking for 30 years or that you left banking 30 years ago? Either way, I can fully understand that you could have been in banking for years without any dealing with forex at all. I also started my working life in retail banking in the UK and only dealt with private retail clients at that time. Foreign exchange was only an occasional side issue linked to certain core transactions and a far cry from forex trading. Only later did I move on to corporate and international banking and become involved in foreign exchange.

If you have had limited experience so far with FX trading then I can imagine that you feel you have a lot to learn and I think you are wise to start with differentiating between the technical and fundamental approach to trading.

As you know, trading forex involves taking positions in a currency pair i.e. a position involves two currencies each with its own set of factors, where one is stronger relative to the other…

Fundamental traders will study all the underlying factors affecting the movements of these two currencies. This includes the state of the economies, central bank monetary and fiscal policies, supply/demand factors, industrial trends, current sentiment, etc. From all these they will form a “barometer reading” of which way the exchange rate between these two currencies is likely to move and take a position accordingly.

Technical traders take one step back from all this. They are only (or mainly) interested in observing and analysing the price movement itself. Their argument is that whatever the fundamental factors are, and whatever the fundamentalists may think, the majority view will always be reflected in the movement of the price - and we are only interested in what the majority of active market participants are actually doing, If we can determine that through analysing price movements with technical tools then we are in a good position to decide when, where, and for how long, we wish to join that movement or even when to trade against it.

But in order to delve into this any further you really need to provide us with some more background of what you know/don’t know, what are your objectives and what kind of trading you are looking to do.

I know this is very vague at this stage, but I hope it encourages you to tell more about plans?

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You better let us know the difference between the technical trading as opposed to fundamental trading - not many people here except you really know the whole differences so you really can start that if you wish so. Thanks in advance please.