Photo Courtesy of MoneyShow. I recently had the opportunity to interview Ed Ponsi, a professional Forex trader who seems to be entirely immersed in the markets. In addition to publishing a book recently titled Selling America Short: The New World Order vs.
The American Middle Class, Mr. Ponsi is also responsible for FXEducator , a Forex training course for new traders who are looking to gain a better perspective on trading the currency markets. Ponsi will be presenting at the Traders Expo Dallas in June , along with Rob Booker and a host of exciting speakers. It was truly interesting and exciting to learn more about Mr. Ponsi's work and his views about the Forex world, and I hope you enjoy an interview of this fascinating and personable Forex Figure.
I was a stock trader for a boutique firm on Wall Street, but I had a tendency to think in global terms. I was always tuned in to the international news, looking for an edge, and paid more attention to macro events as opposed to micro.
Someone pointed out that my methods and demeanor seemed built for the currency markets, which is known to be news-oriented and for forming massive trends. So, I decided to investigate the currency market, and when I learned of its advantages, in terms of liquidity and transparency, I was hooked.
I worked a summer job at the Philadelphia Stock Exchange when I was in my teens, and that's how I became interested in trading. Later I owned a small business but traded my own account on the side. I built up a pretty good track record, and used it to land an entry-level trading job on a Wall Street desk. It was rough at first, I had to adjust my techniques to comply with the company's trading profile, but after a rocky start everything fell into place.
Once I successfully incorporated their techniques and risk management into my trading, there was no looking back. I don't use just one technique. I feel you have to be flexible in order to take what the markets are willing to give you.
For example, I sometimes identify myself as a trend trader, but markets don't always trend very well - in fact, right now, the markets aren't trending well at all, so I'm focused on other techniques. I probably use seven or eight techniques in all, each designed to take advantage of a particular market tendency.
I don't believe you should specialize in one or two pairs; instead I trade whichever chart looks the best to me. Six months from now, depending on how the market is moving, the answer could be completely different.
Yes, it makes sense. Trading with other people's money should be no different than trading your own; you should always try to make the best trade possible. I love the feeling of hitting a new high-water mark in the client accounts. If I see a great opportunity, I want everyone to enjoy the benefits. It's funny, I guess it depends what you mean by trading.
Some people think trading consists of pushing a lot of buttons, constantly buying and selling. I tend to hold positions for awhile, sometimes weeks, so I'm not constantly entering or exiting. I'd rather place one good trade than a dozen mediocre trades, because one good trade will make more money. I constantly read, I study economics, fundamentals, technicals, news, speeches, everything.
I don't keep track of how much time I spend doing this every day, because it's a constant process. You learn everything you can because of a desire to know and understand, and of course to make the best trading decisions. The biggest benefit is the transparency.
In the stock market, if you really want to understand what is happening in a company, you read the news, study the balance sheet, listen to the conference calls, and a dozen other things.
These companies can play tricks with accounting, write off losses, shift profits from one quarter to another - and there are thousands of companies to worry about. In the currency world, it's much simpler; every country releases virtually the same information; employment, GDP, inflation, manufacturing data, etc. There are only a dozen or so major currencies to follow, instead of a universe of 10, stocks.
Because it is a much smaller playing field, it's easier to keep track of everything. The biggest drawback for me was the lack of accurate volume information in Forex. Tracking volume in Forex is like counting grains of sand on a beach, so we have to base trading decisions on factors other than volume.
I created FXEducator in , because there was such a lack of good trading information available. I know exactly what traders need because I was in their shoes at one time.
Traders need good, actionable strategies that work. They need to possess an arsenal of actionable strategies, and they need to know the right time to use the right strategy. And, they need to get solid information from an experienced professional trader, not from an experienced professional salesman. There are people who understand how to trade, but can't articulate it well. There are also plenty of people who are willing to teach you how to trade, but many of them can't actually do it themselves.
But there are very few actual traders who teach, and who are good at teaching. I'm lucky because I know how to make money as a trader, and I can explain it to anyone.
People tell me this is a rare combination, and that's why FXEducator has been such a huge success. FXEducator has been around for seven years now, and in that time I've seen many competitors come and go. People appreciate quality in this business, a willingness to go the extra mile, and that's why we've been successful. I haven't done that for many years, but we are always getting requests. Between my trading, writing, and television appearances, it's difficult to find the time, but we get so many requests, and I hate to let people down.
Sometime later this year I might take a few students under my wing, if I can find the time. Where do you see the future headed? There has always been crisis and change in the markets. Fifteen years ago, there was no euro, and fifteen years from now it might be gone, or survive in a very different form. The best traders are the ones who adapt to change.
The game is always changing, and every time it does, some traders fall away, but the good ones always adapt and survive. I can't predict the future but I can prepare for it by allowing myself to accept the possibilities now. Maybe Greece leaves the Eurozone and the euro currency rises; or perhaps Germany will leave and we will trade the Deutsche Mark again. Maybe someday the U. Maybe China will float the Yuan, what will that do to the Japanese Yen?
It's an endless game of possibilities, and I'm fortunate to be able to play that game for a living. Registration is required to ensure the security of our users. Login via Facebook to share your comment with your friends, or register for DailyForex to post comments quickly and safely whenever you have something to say. Log in Create a DailyForex. Want to get in-depth lessons and instructional videos from Forex trading experts?
Register for free at FX Academy, the first online interactive trading academy that offers courses on Technical Analysis, Trading Basics, Risk Management and more prepared exclusively by professional Forex traders. Report Broker Scams Forex Widgets. Photo Courtesy of MoneyShow I recently had the opportunity to interview Ed Ponsi, a professional Forex trader who seems to be entirely immersed in the markets.
If not, why not? Sign Up Read Review. Free Forex Trading Courses Want to get in-depth lessons and instructional videos from Forex trading experts? Sign up to get the latest market updates and free signals directly to your inbox. Enter your email address here:More...