Experience is the cornerstone to any continuous progress that is to be made in any field. This is especially true when it comes to trading, which is commonly thought to be a near-impossible skill to thrive on. As with any task or skill, though, lessons are learned as you experience the markets and different conditions that are created by different events that occur. While you may have the capabilities to trade with ease in certain conditions, there’s a lot that could change and divert from the stasis you may be accustomed to when you go and place your trades and analyze your markets.
Watching any experienced trader, you will see there are certain events and times they prefer to trade. Shawn Lucas, for example, enjoys trading early mornings when the U.S. market opens and also trading the FOMC announcements. With the FOMC being one of the largest market moving events, you have to be able to learn from the previous announcements and also see how the interest rate and other announcements are affected by the news that comes from outside bodies. The Bureau of Labor Statistics, for example, releases employment data monthly, which along with having strong market moving capabilities itself, is something that the FOMC looks at for their announcements since it concerns the overall well-being of the economy. It isn’t just the FOMC that has this connection though. A multitude of announcements have a similar entanglement throughout them that requires a lot of experience to fully learn the fine-tuning of trading during that time.
Asides from just news announcements, certain market times require some knowledge about them to trade well. Market opens are typically the most volatile time. The first two hours of the trading bell in a country are where most of the profits are made. Those first two hours can sometimes be the hardest and the easiest movements of the market to predict as well. The ability to foresee the movement that will come about when the market opens is one that comes with experience. While part of the opening move will have to do with following up on the news that happened after the market close, a lot of the movement will be reliant on how the other markets interacted with the currency you're looking to trade and how the market was at close the day prior. These two ideas can be one of the most useful lessons to learn as you experience the movements of the FOREX market.
No matter if you take a scalping approach like Shawn Lucas or a longer term approach like Warren Buffet, there's a lot to learn about how each trading style will interact in the currency market. These lessons can only come from extensive experience. Depending on the approach you take, some may think the experiences you collected are too few while others will see you as having a surfeit of data points for your strategy. Whichever option you decide to take up, the most valuable lessons that will stand the test of time in your trading should come from your experiences in the markets and not necessarily someone else's head. Listening to the lessons of experienced traders can be a fantastic way to begin trading, but the progression to established and successful trader requires personal experiences and lessons learned.