Forex Trading Advice: Ed Ponsi

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Forex Trading Advice: Ed Ponsi
Ed Ponsi
This is the second part of an interview with Ed Ponsi, a managing Director of Barchetta Capital Management LLC and a NFA registered Commodity Trading Advisor. You can find the first part here.

How would you define successful trading?

Look at the returns of the average hedge fund; are you beating the average consistently? You should be. Generally, if I can return 2% per month consistently, I’d consider that successful. Any joker can earn 2% in a month or even in an hour, but being able to do it consistently, month after month is the real test. The market isn’t static; sometimes it’s relatively easy to trade, other times not as much. In a very difficult environment, breaking even could be considered successful.

What do you think it takes to be a successful forex trader?

Two qualities that are overlooked are adaptability and restraint. Trading is like a game where the playing field is always changing - sometimes subtly, sometimes not. If you’re locked into one system, what are you going to do when the market changes? It always does. The best traders are the ones who recognize and adapt to change the quickest. The trades that you end up regretting almost always begin with a lack of restraint. You think you’re right and you want to load the boat, but you can’t do that because you might be wrong. Or, you feel as if you need to place trades and make money but you don’t see a clear opportunity - will you give in to your desire or practice restraint? You have to be able to sit still and wait, regardless of whether you want to or not.

How did you learn about forex trading?

Working on Wall Street exposed me to many different aspects and forms of trading. All day long, I’d either be trading, reading about trading or talking to other traders about trading. Even on the train to Wall Street, I’d listen in on conversations about trading. I have to confess, at first the concept of trading money for money seemed odd to me, but once I realized that I was trading the exchange rate rather than the money itself, it all fell into place.

Is there anything you wished you knew before you began? Any advice for those starting out now?

Just understand that nothing can stop you if you’re determined to succeed. The markets don’t care about your beliefs, your lifestyle, your politics or your appearance. Trading is a meritocracy; nobody can prevent you from succeeding as a trader if you really want it. That said, it is hard to get started in this business. There were many things that I wish I’d known. My books and DVDs are basically the answer to that question - all of the things that I learned the hard way, all of the important stuff, it’s all in there.

One last thought - have fun. You’re on an amazing journey. Even if you don’t ultimately succeed as a trader, you are going to learn a great deal about yourself and about life. You’ll be richer for the experience in more ways than one.

You can check out Ed's website to learn more about him and the services he offers:

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About Andrew Beattie
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Andrew Beattie has spent most of his career writing, editing and managing financial content as well as more general web site material in all its many forms. He is especially interested in the future of search and the application of analytics to the business world. He has been a long-time contributor to and is currently venturing forth on ForexDictionary.
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