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FOREX TRADERS

Interview with Javier Paz

Senior Analyst at Aite Group

javier paz-sm

Javier Paz is a recognized institutional and retail FX market expert, with a 16-year background in capital markets research and project management within brokerage and investment banking environments. A regular source for top-tier financial media publications, Javier recently wrote two reports for Aite Group “The Future of Active Trading” and “Global FX Market Overview”.

In this interview Javier talks about forex brokerage evolution, the current market fragmentation and future regulation. He also shares his view about global monetary policies and gives  FX traders valuable tips on how to improve their trading performance.

FXTM:
Tell me about your experience with the financial markets?

JP:
I’ve been involved with capital markets for the past 16 years, conducting research and advisory work across asset classes – particularly FX – and spotting various types of market trends: regulatory, business, and technology. Besides my work for Boston-based Aite Group during the past 5 years, I’ve also worked for two Wall Street banks and one retail FX broker. In 2012, I wrote a book called “The Forex Trading Manual” to educate new and younger audiences about how to appreciate and trade the foreign exchange market. I continue to trade FX at nights, during the Asian session.  

FXTM:
Are you still trading actively and how much of your time do you spend trading?

JP:
I’m trading less than a year or five years ago due to my various responsibilities and goals, but I still engage in the business as a swing trader using the major pairs. My favorite session continues to be Asian session.

FXTM:
How long did it take you to become a systematically profitable trader?

JP:
It took me three years to reach a point of consistent profitability, but I’d like to caution against thinking of consistent profitability as being permanently profitable. A trader’s profitability is in part dependent on whether his/her toolkit of strategies are producing good results at any particular time. As we all know, a good strategy today may lose money tomorrow, but start making money again in the future when conditions are right. The onus for consistently profitable traders is to continuously search out/develop profitable strategies, and research when they should be used or when these should remain dormant. Of course, another critical aspect of success (but easier to maintain once you’ve developed the profitable mindset) is to be systematic, risk-aware, rules-based, and somewhat detached from extreme emotions when trading.   

FXTM:
What type of analysis do you use TA, FA or both?

JP:
Both.

FXTM:
What tools/methods do you use?

JP:
I rely on trend and momentum indicators (RSI, stochastics, moving averages) to gauge sentiment/trend reversals/breakouts, and I use a pivot based trading strategy for EURUSD for some trading opportunities, which I would define as a contrarian strategy on relatively normal markets. Right now we are not experiencing what I’d call “normal markets” because of Brexit, so I either use another strategy or remain completely flat. 

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