Discretionary Forex Trading - is it for Me?

By: Kelvin Chan

Discretionary trading is very exciting if you ask me. Because the market is dynamic and never will you find the same market action two days running, so is the daily study on the market action and that's where discretionary trading comes in.

On the opposite side of discretionary trading, you'll find mechanical trading but this is outside the scope of this article so we won't be dealing with it for now.

In discretionary trading, we watch for quite a number of factors to come up with trading biases and decisions as a result of them. These factors include the time frame, the duration of our desired trade, news releases, candlestick patterns, global macroeconomics and so on and so forth. There's just way too many factors to be named here.

Now to answer you on the question of if discretionary trading is for you, you have to first understand yourself. When I say that, I mean if you are a disciplined person or are you pretty emotional. If you get emotional, then discretionary trading can be a very steep slope for you and you should look to mechanical forex trading systems.

It also helps if you are good with chess, poker or math for that matter when it comes to discretionary trading. Now take note that this isn't a proven theory, it's just one of my personal opinions and beliefs.

Go slow on yourself and take time to see if you enjoy studying charts and stuff, if so, you might have a thing or two for discretionary trading and stand a good chance succeeding at it.

Have fun discretionary trading!

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