What if Simon Cowell Were a Forex Trader?
Many people know of Simon Cowell and they know of his opinionated and often controversial reviews of contestants on shows such as Britain’s Got Talent and American Idol. Many contestants have been reduced to tears by his cutting comments and withering assessment of their entertainment abilities.
But what if this notoriously opinionated talent judge were to do something else? What if he were to take up Forex Trading? What style of Forex trading would he use? Let’s look at the different styles of Forex Trading and see what might be his style if he were to begin Forex trading.
This method of trading is ideally suited to the great one himself (His opinion) This mode of operation is sometimes known as quick trading, as a trader will allow their positions to last a matter of seconds or a minute at most but rarely longer than that, so in many ways it is comparable to a hapless contestant outliving his welcome and being sent packing before even getting to the chorus with such a damning verdict as uttered to a part time swimming pool attendant of “If your lifeguard duties were as good as your singing, a lot of people would be drowning” . Ouch, let’s hope the rapid fire trade you have just completed is more successful.
Scalping requires a fair degree of skill and market knowledge and it is not for the faint hearted or the novice currency trader, not dissimilar to trying to impress Mr Cowell with your unique interpretation of Bohemian Rhapsody, as both will end in tears if you are not careful.
You can almost hear the “Don’t give up your day job “ ringing in your ears as you slump off the stage, or should that have been “Don’t give up your day trading job” especially if you are able to make a profit.
Day trading revolves around positions that are opened and closed within the trading day with a view to making 15 to 100 pips , most likely out of the US and EURO currency markets.
The setups for day trades are usually found using the intraday charts that have timelines for medium lengths like 15, 30, or even 60 or 240 minutes. The majority of Internet currency traders are these kinds of traders. Usually they are using technical analysis for setting up the trades. If Simon Cowell was day trading and he had a bad run on a particular market, rather like the Bohemian Rhapsody audition, which also seemed like a good idea at the time, he would vow to never trade that particular market again with an acerbic quip such as “I never want to hear that song again. I cannot stand it. I'm allergic to it.”
Now I know what you are thinking about those showbiz parties where anything can happen, but what we are actually talking about is another method of trading that differs from day trading as a result of the length of time a trader will look to hold a position before closing out, hopefully for a nice profit.
Usually the swing traders are going to hold the open position 2 to 5 days and hope for a profit potential of 100 to 250 pips. These kinds of trade setups usually are found with the use of daily charts. More often than not, traders are going to use technical analysis so that they are able to set up the trades.
If you applied the swing trading philosophy to a round of X-Factor, Mr Cowell might actually be in a benevolent mood and amazingly rather like your rendition of Please release me, thus allowing you to stay in the competition a little longer to see if you turn into a potential winner, rather than send you packing with an underhand observation such as “Come back and wow us next year,”
The fourth style of Forex trading is position trading. This is different from swing trading because it will typically have a longer time horizon than swing trading will have for holding their position. Usually, position graders are going to hold open positions for anywhere from 5 to 50 days, hoping to get a profit potential of anywhere from 250 to 1000 pips.
These setups typically are found using daily, the weekly, and the monthly charts. Typically the position traders are using fundamental and technical analysis for setting up the trades that they are doing.
It is quite likely that Simon Cowell would simply tire of waiting for something good to happen using this longer term strategy and simply roll his eyes and announce “You’re useless and I’m bored”.
Can you imagine the entrepreneur holding a position for months or even years? Well in the stock market maybe, but the only position he would hold longer than a few minutes on X-Factor or American Idol would be a look of utter desperation and incredulity at what he is being asked to sit through, despite inventing the concept for the show in the first place!
So let’s just hope that your forex trading career lasts a lot longer than the average audition and of course is a great deal more successful. Believe it or not he genuinely complimented one contestant with the words “A natural. A total natural. And I like you.”
If he described your forex trades in such dazzling tones let us all know how you did it please.
To protect the innocent, we have used some real quotes from the man himself, as he put it, in his own unique style of delivery, in a statement that could easily be applied to forex trading “The object of this competition is not to be mean to the losers but to find a winner. The process makes you mean because you get frustrated.”