Interview: Liviu Flesar of InnerFX

By ,
Interview: Liviu Flesar of InnerFX
Liviu Flesar
Source: InnerFX
Liviu Flesar is a technical trader who started in forex in 2003. He operates the trading blog innerfx.com.

What attracted you to the currency trading market rather than other markets?

I’m more familiar with FX trading so I prefer to do what I already know. The FX market is also highly correlated to the stock markets, so I prefer to trade the risk-sensitive currencies (such as AUD, JPY) when I’m expecting certain movements in the stock markets.

What were the big mistakes you made and important lessons you learned when you started trading forex?

First mistakes were also the biggest ones. After a few winning trades I thought it was so easy to make money trading. So I made all those beginner calculations like, "you only need to win XX pips per day to become a millionaire in a few years." Trading with high leverage was the biggest mistake, followed by overtrading and over confidence in my expectations. Intraday trading/scalping used to keep me too busy staring at charts, getting into the emotional roller coaster too often.

Slowly I realized that intraday trading or scalping was not for me and started trading on higher time frames, using larger stops/targets and leaving positions open for more than a day (in most cases). I also learned that there is no secret formula that can guarantee profits and such, so the hunt for the perfect trading system was a waste of time.

What is different about your trading now compared to when you first started?

I was addicted to charts, so I watched them all day long. During that time, I did worse than a blind man driving a race car. What I know for sure now is that profitable trading and time spent in front of charts are not necessary positively correlated. At least not in my case. I spend a lot less time in front of my charting/trading platforms now and I feel a lot more confident about my trading results over the long run. I’m doing a lot better job now - less emotions and less chances to manually close good trades too early.

What type of trader are you now?

I am both fundamental and technical, but focusing more on the technical aspects. From a fundamental perspective, I care about most important macroeconomic events but I don’t set my alarm clock 5 minutes before the news releases. I rarely even watch the NFP market reaction live. There’s always a better opportunity if you intentionally miss the big movement on news releases - which is often only market noise.

How often do you trade? What timeframe?

A few trades per week. I rarely close a trade in the same day and I also try to avoid putting all the eggs in the same basket by opening trades in highly correlated pairs at the same time.

Do you have any indicators, releases or other information sources you depend on?

Trend lines, momentum, moving averages - the basic stuff. I don’t over complicate things.

Do you focus on specific currency pairs?

Not really. I have scan lists in my charting platform so I switch through several charts sets at once by using keyboard shortcuts. I am usually looking for specific setups (breakouts about to occur, corrections and so on), so I scan many pairs at once.

How would you define successful trading?

Not losing money. That’s the first and most important step. It is a tough psychological barrier. After that one comes the making money - becoming profitable - and that’s much easier than the first step.

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

Yes: don’t believe everything you read on the Internet. Trading forums and sites are full of scammers, marketers, snake-oil salesmen and all kinds of "millionaires." Patience is key. Avoid high leverage, learn as much as you can about correlations and have realistic goals. Nobody will ever double his trading account in a month in a way that is sustainable in the long run.

Thank you for the interview. You can read more from Liviu on innerfx.com.


Stay on top of the currency markets with our newsletters by subscribing to ForexDictionary's free newsletters.

About Andrew Beattie
Picture of Andrew Beattie

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 Investopedia.com and is currently venturing forth on ForexDictionary.
 Full Bio