So you are looking to employ an FX trader and you want to ask them some questions to gauge if they know what they are doing or not. What do you ask?
Do they trade overall market news/data or do they focus on a specified pair or major? What kind of R/R do they work towards, when do they look to take profits.
Why do they choose to trade FX over other instruments?
What are the pros and cons of trading FX?
Does the current market regime affect their strategy?
Of course their style of trading but more importantly have they traded other products ? So many traders rely on volume as an important metric… yet fx doesn’t have a central exchange so how does he adjust if he cares about volume at all.
His thoughts on the leverage ?
Fx as the gateway “drug” to trading since its leverage and no American pdt rule.
How do you prepare ahead of time to trade FX market when something like corona virus happens. What are the best pairs to trade during and after crisis.
How do they define an edge?
Why Forex? How did they get started in Forex? How do they use the information from other securities to trade Forex? What are the unique things to Forex that they think every trader new to Forex should be aware of? What’s a realistic time frame for a newbie trader to get the hang of it? What is their opinion on the ideal capital size for a new trader to begin trading with to prevent the problem of being undercapitalised? What should a newbie trader do daily to enhance their skills? Also what should the newbie expect in their journey of enhancing their trading skills?
What time frames do you trade? how long do you hold an average position?
How do you form your trading plan and what happens if it doesn’t happen the way you anticipate ?
Do they believe their system could be automated?
Are there hard fast rules?
Do they trust their broker (that their money deposited is safe) ?
What pairs do you trade and why?
Talk about odds, statistics and playing the numbers. Ask about brokers, how to be a fox when dealing with wolves. And maybe system development.
To show trackrecord longer than 4-5 years.
Because consistently profitable fx trader is like Unicorn. Everybody is talking about it, but nobody saw it in real life 😀
Every second is selling trainings, robots or books full of BSs 🙂
How many tick is possible to get if daytrading? As whole Fomc news today was a total from top to bottom (from 30 min before and to 2130 was 10 up and 10 down (eur/usd) . I think sp range in same time were 10 points up and 20 down (almost) I think my point is, how many hours do one trade takes for how many pip?
Since fx is so reciprocal, do you believe in averaging down or stick to pyramiding?
How much money have you lost this year?
How do you deal with the 24/5 market and sleep?
Position sizing, risk management, and R:R ratio?
Trend trading or contrarian attitude towards the market?
Swing or intraday trading?
Journaling and backtesting?
Monthly/Annual goals as far as account growth?
In Fx some topics are more important than in the stock market. Other topics are mutually exclusive from the stock market. Here’s what I can think of:
Managing leverage. How much is too much.
Choosing position sizes. When does position size start to cause slippage, partial fills, or institutional interest in your position.
Interest rates (swing traders)
Honest Brokerages (thats a problem in fx)
Direct access trading
Trading costs (commissions, spreads, etc)
Slippage shouldn’t be a problem in fx, but would be good to hear about their experience.
Time of day analysis is huge. Cant trade every minute in fx even though its 24/5.
How do they use volume (volume is not centralized in fx)
Their thoughts on Fx futures and Fx Options.
Correlations between pairs, and other markets (such as stocks, commodities, etc)
Handling intraday and/or swing drawdowns.
Their thoughts on how big banks trade fx.
Thoughts on algorithmic involvment in Fx.
Their thoughts on managing OPM vs own account.
I’d like to hear indicator talk and price action talk – what indicators seem especially well suited to forex, and what indicators may forex traders be overlooking that could be useful.
What is their big picture understanding of how the forex market price moves. Who is the 10% smart money that takes takes from the 90% dump money every day. How can I learn to trade in the same direction as the smart money. How to find the best place to enter a trade when you have decided on the direction.
If their trading approach 100% mechanical, or is discretion required?
Do they bother understanding & using probability, expectancy and law of large numbers?
How do they know their edge has not gone away/ diminished?
Do they keep learning new things to adapt to the changing markets?
Do they keep a trading journal?
Do they use a retail trading platform?
Can they trade just as profitably on MT4?
How do the ‘big banks’ move prices around? Do they move the market around like what Wyckoff said about accumulation and distribution?
Does he or she use volume for signals