FX traders seek coaching in battle for dominance - News and Current Events | futures io social day trading
futures io futures trading

FX traders seek coaching in battle for dominance
Updated: Views / Replies:356 / 0
Created: by kbit Attachments:0

Welcome to futures io.

(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 100,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors Ė all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you donít need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

Thread Tools Search this Thread

FX traders seek coaching in battle for dominance

  #1 (permalink)
Elite Member
Aurora, Il USA
Trading Experience: Advanced
Platform: TradeStation
Favorite Futures: futures
kbit's Avatar
Posts: 5,893 since Nov 2010
Thanks: 3,308 given, 3,345 received

FX traders seek coaching in battle for dominance

LONDON (Reuters) - In the take-no-prisoners world of foreign exchange dealing, asking traders to look inside themselves and confront their inner demons may seem a forlorn endeavor.

Yet some banks are turning to performance coaches to give their traders an edge in the battle to make money in the $4.5 trillion dollar a day FX market.

This soft skills approach contrasts with the popular stereotype of FX traders hurling prices -- and abuse -- at each other across the dealing room floor.

But while some dismiss techniques to develop a "clear-headed space" in which to trade as touchy-feely gimmickry, many are keen to embrace any tactic to outwit other market participants, whether human or machine.
"I talk about performance enhancement rather than psychology. It makes it a bit more approachable for guys who have still got a bit too much testosterone and ego," said trader performance coach Steve Ward.

With trading margins squeezed and bank cutting jobs, former physical education teacher and sports performance coach Ward had expected business to dry up.

In fact, the last year has been one of his busiest ever.
Trained in techniques including stress management and performance psychology, Ward also employs strategies underpinned by cutting-edge neuroscience research. Some exercises are focused on meditation to help develop attention and awareness.

Many financial market traders might baulk at such ideas and Ward acknowledged that in the male-dominated environment of some dealing rooms stigma may be attached to talking to a coach.
Steve Goldstein, who worked as a FX rates and fixed income trader for 25 years at institutions including Credit Suisse and Commerzbank before becoming a coach, agreed.

"People still use the term shrink. There are a lot of games in trading rooms that people play amongst themselves and look for signs of weakness," he said.

Both Goldstein and Ward said many of their clients were successful traders with 10 to 15 years experience who had lost their way and needed to regain self-confidence.

Most traders and coaches agreed the most important attribute for making money in financial markets is self-confidence. Along with discipline and a clear process, it can help traders run profitable bets and cut quickly out of losses.
Without it traders may start second-guessing decisions, doubting their instincts and over-reaching for trades, said Graham Davidson, director of FX trading at National Australia Bank. He had a period of coaching around six months ago after slipping into bad habits that led to a 12- to 18-month "rough patch".

"We talked about all kinds of stuff. It was mostly trading-centric but equally you have to be able to look inside yourself and figure out what motivates you," Davidson said.

"If you understand your subconscious and what the drivers of your behavior are you can become a better trader."
A trader's motivation could be to provide for his family, achieve status or protect his position within the hierarchy of a dealing desk. It may just be the satisfaction of being right.

Goldstein uses a questionnaire with new clients, including questions such as 'If you could stand back and watch yourself trading - what advice do you think you would give yourself?'

He described the questionnaire, filled in during a 2-1/2 hour introductory session, as a debrief on all aspects of trading -- the psychology behind it, a trader's personal demons, strengths and weaknesses, and their edge.

Heads of trading at four investment banks told Reuters they were either using coaches themselves or had heard of increasing demand. Steve Ward said he estimated the number of dedicated trading coaches had doubled since 2006.
"These guys are in demand," said Hugh Killen, global head of FX at Westpac in Sydney.

Even banks unwilling to use an external coach increasingly recognize the benefit of supporting new recruits.
"It's very 1980s to drop them in the deep end and tell them to start quoting customers on day one. I have always taken an active role in training grads from the moment they set foot on the desk," said Mark Johnson, global head of FX cash trading at HSBC.

"Psychology is a huge factor in trading. If you address traders' individual needs then those traders will have a higher performance, but I doubt that any external coach could quickly recognize these frailties without an awful lot of background from us."

A new pressure on traders -- and a reason some cite for the increased use of coaches -- comes from the growth of hyper-fast electronic trading.

In its latest survey, the Bank for International Settlements said spot algorithmic trading -- in which a computer determines how orders are placed -- rose to 45 percent of trade on the EBS platform in 2010 from 2 percent in 2004.
More electronic trading means fewer traders, while high-frequency algorithms can identify money-making opportunities and execute trades faster than a human can spot the prices.

"A lot of traders are struggling to compete against the boxes," said John Coates, a Cambridge University neuroscientist and former trader with Goldman Sachs and Deutsche Bank.

But, in the battle between man and machines, there are signs high-frequency trading is facing a backlash as banks and regulators focus on the human touch.

"Our ability to generate gut feelings makes our body the most sophisticated black box on the market. I have heard of pretty big players pulling the plug on their boxes and putting money back into humans," Coates said.

But it may be some time before traders' psychological well-being is put on a par with their technical know-how.
Many traders remain hostile to the idea of discussing their personal demons with a coach. A trader who admits needing help and wants to talk about his mental state risks mockery.

This could be more true in London than New York, given the UK's traditional antipathy towards the idea of therapy.
As one London-based FX trader said when asked if he had ever used a trading coach: "Nah, are you kidding? It just sounds all namby pamby and American."

FX traders seek coaching in battle for dominance - Yahoo! Finance

Reply With Quote


futures io > > > > FX traders seek coaching in battle for dominance

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Upcoming Webinars and Events (4:30PM ET unless noted)

Day Trading Oil Futures: Reducing Risk & Increasing Profits w/DTN IQFeed

Mar 26

Similar Threads
Thread Thread Starter Forum Replies Last Post
Retail FX Traders Going Mobile In Droves kbit News and Current Events 0 January 10th, 2012 02:37 PM
We Are All FX Traders Today... Quick Summary News and Current Events 0 November 10th, 2011 01:50 PM
Battle for Stock Market Profits vs Battle for Investment Survival Trankuility Traders Hideout 1 August 18th, 2011 01:03 PM
BRICs Call for End of European Dominance at IMF Quick Summary News and Current Events 0 May 24th, 2011 10:50 PM
One on one help, coaching - free Big Mike The Elite Circle 0 July 6th, 2009 02:22 AM

algorithmic trading, black box, coaching, cts, financial markets, foreign exchange, goldman, goldman sachs, hsbc, london, new york, news, orders, platform, profitable, psychology, research, strategies, survey, trading, training, university

All times are GMT -4. The time now is 02:47 PM. (this page content is cached, log in for real-time version)

Copyright © 2019 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432 WhatsApp Business, info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts
Page generated 2019-03-23 in 0.19 seconds with 14 queries on phoenix